E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, FIRST SESSION

Vol. 143 WASHINGTON, THURSDAY, MARCH 20, 1997 No. 37 Senate The Senate met at 9:30 a.m., and was SCHEDULE WHATEVER BECAME OF THE called to order by the President pro Ms. COLLINS. Mr. President, on be- TAXPAYERS’ AGENDA? tempore [Mr. THURMOND]. half of the majority leader, I announce Mr. GRAMS. Mr. President, in No- The PRESIDENT pro tempore. Our that it is hoped that the Senate will vember 1994, the American voters sent prayer this morning will be led by shortly enter into a consent agree- a clear message to Washington that re- Commissioner Robert A. Watson, of the ment, which would allow for consider- sulted in a watershed election and the Salvation Army. ation of the resolution relating to the first Republican Congress in 40 years. decertification of Mexico. If that agree- That message was to enact a tax- PRAYER ment is reached, the Senate would be payers’ agenda of balancing the budget, The guest Chaplain, Commissioner expected to begin consideration of the limiting the size and scope of Govern- Robert A. Watson, the Salvation Army, resolution this morning, possibly as ment, and returning tax dollars and Alexandria, VA, offered the following early as 10 o’clock. Rollcall votes are power to the taxpayers. prayer: expected on the Mexico resolution, and Two years ago today, the House of Sovereign Lord, we thank You for all Members will be notified as to when Representatives was marking day 76 of this day, the day You have made. We those votes can be anticipated once we its unprecedented 100-day effort to will be glad and rejoice in it. We ac- reach this agreement. It is also pos- carry out the taxpayers’ agenda re- knowledge You as omnipotent, omni- sible that the Senate will begin consid- flected in the Contract With America. scient, and omnipresent God, the Cre- eration of the nuclear waste legislation They kept their promise to the Amer- ator, Preserver, and Governor of all prior to the Easter adjournment. And, ican people by bringing all 10 provi- things, and the only proper object of again, all Senators will be notified ac- sions of the contract up for a vote and religious worship. How privileged we cordingly. I thank my colleagues for passing almost all of them. are, Father, to live in America. We their attention. In 1996, despite an unprecedented as- thank You for those of earlier genera- (Mr. HAGEL assumed the chair.) sault by the media, hostile special in- tions who sacrificed so much, making Ms. COLLINS. Mr. President, I yield terest groups, and the big tax and possible the freedoms we enjoy. Help us myself the time allotted to the major- spenders in Washington, the Repub- not to take for granted the benefits of ity leader under the standing order. lican majorities in Congress were pre- The PRESIDING OFFICER. The Sen- our society, and to happily share our served, indeed, even increased here in ator from Maine is recognized. blessings with those around us. We the Senate. The voters once again sent (The remarks of Ms. COLLINS pertain- the message that they wanted the tax- thank You for the gifts of experience, ing to the introduction of S. 482 are lo- intellect, and talent with which the payers’ agenda enacted, but they want- cated in today’s RECORD under ‘‘State- ed Congress and the President to come Members of this legislative body are ments on Introduced Bills and Joint endowed. As they deal with the com- together in completing the work start- Resolutions.’’) ed in the 104th Congress. plex issues which are so important to Ms. COLLINS. Mr. President. I sug- the people of our Nation, please grant Yet somehow this message has been gest the absence of a quorum. misinterpreted by a number of my Re- them wisdom, compassion, sound judg- The PRESIDING OFFICER. The publican colleagues, who seem to have ment, and the satisfaction of having clerk will call the roll. served well. And now, as we enjoy The assistant legislative clerk pro- come away from the 1996 elections with again the beauty of a Washington ceeded to call the roll. the mistaken notion that the effort to springtime, help us to allow each sign Mr. GRAMS. Mr. President, I ask pass the taxpayers’ agenda should be of new life to remind us that You are unanimous consent that the order for stalled or delayed. What concerns me the giver and sustainer of life, and to the quorum call be rescinded. most is that some of the loudest calls use Your gift wisely and well. In Your The PRESIDING OFFICER (Mr. ROB- for retreating from that agenda are majestic name we pray. Amen. ERTS). Without objection, it is so or- coming from within our own party dered. leadership. This is not the same Repub- f Mr. GRAMS. Mr. President, I ask lican majority that arrived in Washing- unanimous consent to be allowed to ton in January 1995, ready to create speak for up to 15 minutes as in morn- fundamental change in a government RECOGNITION OF THE ACTING ing business. that had enslaved so many working MAJORITY LEADER The PRESIDING OFFICER. Without families for so many years. It is like The PRESIDENT pro tempore. The objection, it is so ordered. the ancient Vikings who sometimes able acting majority leader is recog- Mr. GRAMS. Thank you very much, burned their boats after arriving in a nized. Mr. President. new land. We stepped onto the shore

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

S2575 S2576 CONGRESSIONAL RECORD — SENATE March 20, 1997 and claimed there was no turning back grassroots America. Until the Republican counter at the Brainerd hardware to the era of big Government and high- Party remembers it won the election and store. And our constituents are cer- er taxes. We were determined that acts like a winner and not a loser, I find my- tainly not the big spenders who have Washington would never be the same self as an independent. used and abused the people’s tax dol- once we passed the taxpayers’ agenda I wonder how many other Americans lars for decades. into law. are feeling equally abandoned? No, our constituents are the Amer- Today, it appears some of my col- The Washington Post this week car- ican taxpayers who sent us here to leagues are wishing they had their ried the comments of a senior Repub- Washington to fight for them, because boats back. lican aide in the House who suggested if we do not, who else will? If we do not Mr. President, I have tremendous re- we were, quote, ‘‘‘just drifting’ on stand beside them today, what reason spect and admiration for my friend and budget and tax issues because many do the taxpayers have to stand beside colleague from Georgia, the Speaker of Republican leaders were unwilling to us, if all they will get in return are the House. As a freshman Member of stick their necks out.’’ Well, that is empty promises without any action or the House in the 103d Congress, I how it feels here some days. Imagine leadership to back them up? worked with NEWT GINGRICH, TIM how it must feel to the millions of If we retreat from the taxpayers’ HUTCHINSON, and others in making the American taxpayers who are outside agenda now, then who really won the $500-per-child tax credit the center- the insulation of the Washington Belt- 1996 elections, despite our majority in piece of the Republican budget alter- way. Congress? If we do not carry out the native in 1994. I was honored that Mr. Two years ago, we promised them tax taxpayers’ agenda, we may as well GINGRICH included our tax cut in the relief. Congress delivered, but our hard pack up our bags and go home, because Contract With America, creating a work fell victim to a Presidential veto. we will have failed. And the price of platform on which I ran and won elec- So the American people were denied that failure will fall on the backs of tion to the Senate. the tax relief that we promised in those we were elected to represent. That said, you can imagine how dis- 1995—enacted and passed in our legisla- We should make a good-faith effort appointed, and even a little saddened, I tion; vetoed by the President. They to work with the President, present was to read his comments in the news- were again denied tax relief in 1996. him with our plan to balance the budg- papers this week, when he was quoted And now, the leaders of our party—our et and cut taxes this year, and if he as endorsing the suggestion that plans majority party, the party of the tax- cannot accept it, let the voters decide for a major tax cut be temporarily payers, of families, the working class— who is right and who is wrong. Biparti- shelved. are suggesting that the American peo- san action should not translate into in- With all due respect to the Speaker, ple will not get tax cuts this year, ei- action, and trying to cooperate should such a retreat would be a horrible mis- ther. And I say to them, you ought to not involve being coopted. take. be ashamed. If Congress and the President find Mr. President, it was 2 years ago this Believe it or not, Mr. President, when the courage to move forward, the re- week that the Speaker wrote a com- I am back home in Minnesota, people wards can be immense. Let me tell you mentary for the Wall Street Journal he do not stop me on the street to tell me what has happened in my home State titled ‘‘The Contract’s Crown Jewel.’’ how grateful they are we failed to of Minnesota, where the headlines The crown jewel in this case was our enact the $500-per-child tax credit, or focus on a budget surplus, not a deficit, package of tax cuts around which our how grateful they are we cut the cap- and our taxpayers finally have some- balanced budget legislation was craft- ital gains tax, or that we were unable thing to smile about on the State level ed, and the Speaker was its most vocal to enact estate tax relief. No, the Min- in Minnesota. It is an example of what supporter. nesotans who stop me are angry and can be achieved when leaders make a ‘‘The bill proposes fundamental they are disappointed, because when promise and stick to it, even when it is change in the relationship between the they ask, ‘‘Where are the tax cuts you not the politically easy thing to do. American government and the Amer- promised?’’ They are really asking When Minnesota Gov. Arne Carlson ican citizenry,’’ wrote the Speaker, ‘‘when are you going to do what you was elected to office in 1990, he inher- ‘‘and is the plainest assertion we have were elected to do?’’ ited a deficit greater than $1.8 billion yet made of the key principle underly- The folks here in Washington seem to and a government that was spending 15 ing the Contract With America. have forgotten there are two parts to percent faster than the rate of infla- ‘‘Simply put,’’ he went on to say, every promise: the making, and the tion. The Governor and the State legis- ‘‘the bill says this: ‘The American gov- keeping. The politicians have never lature cut spending by making the ernment’s money does not belong to had a problem with the making, but tough choices elected officials are sup- the American government. That money they have a great deal to learn about posed to make, decisions that met the belongs to Americans, and it’s time to the keeping. And Mr. President, this is needs of our residents and left no one give Americans some of their own one issue that all comes down to keep- behind. Thanks to that dedication, money back.’’’ ing promises. Minnesota today finds itself with a Mr. President, I realize those words To go back on our promises now stronger economy, more jobs, an unem- were written before the Government would deprive average American tax- ployment rate of just 3.5 percent, well shutdowns, before the thrashing the payers of the leadership they voted for below the national average, and a $2.3 Republicans took in the press, before in 1994 and 1996, and say we were wrong billion budget surplus. the special interests waged a guerilla in staking our claim on the side of the So now the Governor has now pre- war of lies and distortions against us. taxpayers and against big government. sented a plan of tax relief that will cut Even so, those words were true in More importantly, it will deprive us of income taxes in the State by an amaz- March 1995 and are no less true in our biggest and most important con- ing 22 percent, offer $900 million in March 1997. The only thing that has stituency—and that is the hard- property tax relief, $150 million in edu- changed during these past 2 years is working, middle-class voters who can- cation tax credits, and eliminate the that courage has been supplanted by ti- not pay for the high-priced lobbyists, sales tax on all capital equipment re- midity and lions have turned into who cannot afford to take time off placement. It has been an amazing lambs. from work or take a break from caring turnaround for Minnesotans. It was disheartening to read in the for their kids to fly out to Washington Tax relief and fiscal discipline have Washington Times on Tuesday that to lobby us on a moment’s notice for worked in Minnesota. It is a combina- popular radio host Michael Reagan, son more money from taxpayers. tion that can work for the rest of the of the former President, was denounc- Let us not forget the people we rep- country as well. We need to remember, ing his ties to the Republican Party. resent. Our constituents are not the however, that Rome was not built in 1 The Times quoted him as saying: Washington talking heads who chant day and neither was big government. The Republican Party has forgotten grass- and babble as if they can read the The problem will not be fixed in 1 day, roots America, they are not talking to grass- minds of the family farmers in Winona, one year, or even 2 years. But every roots America, not paying attention to MN, or the senior citizen working the journey begins with one step—it is our March 20, 1997 CONGRESSIONAL RECORD — SENATE S2577 job to ensure it is one step forward, not cision to go forward with certification, vote. We will do it today, or we will do backward. but also to make sure that the Amer- it tonight or tomorrow; it’s OK with In less than a month, Tax Day will ican people understand that the Con- me. We are going to vote on this issue arrive, and in preparation, the Amer- gress is not satisfied with the status before we leave here. ican taxpayers will once again gather quo. More must be done. There is a process where the Demo- around their kitchen tables to take We have a right—in fact, we have an cratic leader cannot stop that—it is a stock of their finances. One can almost obligation—to get more from our Gov- privileged resolution, with 10 hours of hear the collective groan. Unfortu- ernment’s efforts in fighting the drug debate and then a vote. I don’t want to nately, it is too late for Congress to war and dealing with the flood of drugs do it that way. I want us to come to an make any changes to lighten the tax that are killing America’s children. agreement. The resolution that I load this year. It is not too late to They are flooding into this country thought we were going to call up at enact the tax relief that will fun- from Mexico. We have a right to expect 10:30 requires specific reporting on damentally transform the next. hardened drug criminals to be extra- steps taken by Mexico and the United Mr. President, I did not come to the dited into this country. Some of them States to combat illegal narcotics traf- floor today to draw a line in the sand— have, some of them have not. We have ficking. It makes clear the Senate view at least not at this time. I must admit a right to expect that our law enforce- that Mexico has not done enough—and that I will be hard pressed to support ment people dealing with the drug bar- they have not. We have seen that many any budget, any budget, that does not ons, the drug lords, are able to defend times. We have seen it with the dev- call for significant tax relief for the themselves. We have a right to expect astating story recently about the top working families of Minnesota and some thresholds to be met with regard drug enforcer in Mexico who, as a mat- each of the other 50 States. If we, as to what Mexico must do and, frankly, ter of fact, had to be removed from of- the majority, cannot deliver on this what we must do in our Government. fice because he was, in fact, being in- one, fundamental promise we made to This is a very important issue, one volved in what he is supposed to be try- ing to control. That is as gently as I the voters, we will have abandoned the that we cannot leave today or tomor- can possibly put it. I fear there are taxpayers. And in doing so, we, the Re- row without taking action on. going to be more devastating reports publican majority, and this Congress as I want to say how much I appreciate the great effort by the Senators here like that. a whole, will have raised significant The revision allowing for a vote, as I on the floor now—Senator HUTCHISON questions about our desire, and ability, indicated, was dropped last night, after from Texas, Senator COVERDELL from to lead this Nation. It will be hard for direct involvement by the Secretary of Georgia, Senator FEINSTEIN from Cali- us or this generation to explain to our State, head of the NSC, as well as Sen- children and to our grandchildren how fornia, and other Senators that have ators here, and Senator MCCAIN was in- worked to try to do the responsible we failed to provide them with a future volved in that. But it makes clear that thing. I want to point out that these as bright as the future that our parents the administration and the Govern- Senators, along with others, for a total and 200 years of generations left to us. ment of Mexico should provide real de- Thank you, Mr. President. I yield the of 40, wrote a letter to the President of monstrable progress by September. If floor. the United States saying, ‘‘Mr. Presi- they don’t, under this procedure, we Mr. President, I suggest the absence dent, don’t certify Mexico as doing would not have another vote, but we of a quorum. what needs to be done in this drug bat- can have more votes. There will be au- The PRESIDING OFFICER. The tle that we are engaged in.’’ The Presi- thorization bills, and there will be ap- clerk will call the roll. dent did that. propriations bills, like the State, Jus- Now, the House took an action that The legislative clerk proceeded to tice, Commerce bill. If we don’t get a will allow them to put down some call the roll. response or action here, the Senate has Mr. LOTT. Mr. President, I ask unan- markers and, after 90 days, look and a powerful weapon called the power of imous-consent that the order for the see if progress is being made and then, the purse. We can withhold funds. We quorum call be rescinded. perhaps, act further. I believe that is can make our views known. The PRESIDING OFFICER. Without the gist of their action. That resolu- Based on that, the fact that we can objection, it is so ordered. tion is pending here at the desk. act in other ways with other vehicles, f But, again, in a full, good-faith ef- I thought this was a good agreement. I fort, the Senators have worked with MEXICO CERTIFICATION ISSUE thought that the Senators here on the the administration, which included a floor bent over backward to reach an Mr. LOTT. Mr. President, I have a se- whole variety of people. I was stunned agreement. Now, we have—get this pic- ries of unanimous consent requests by all the people that got involved. The ture—the Secretary of State, who is that may be necessary unless we get Secretary of State was involved; the now in Helsinki, and the head of NSC, some agreement very quickly now from head of our drug effort, General McCaf- now in Helsinki, both directly in- the minority leader. frey; the head of NSC, Sandy Berger; volved, saying, yes, we can go with I just came from a committee hear- the Secretary of Treasury was there. It this. General McCaffrey, head of the ing, where I just finished testifying so was a long list of people, and a lot of drug administration, who was there I could come to the floor at 10:30 and work was done. I think these Senators and said, yes, we can go with this. call up the agreement entered into last here gave a great deal. They wanted to Democrat and Republican Senators night after monumental efforts by Sen- say that these are some things that said yes. The majority leader says this ators on both sides of the aisle, work- must be done and be certified by the is not perfect, but this is a responsible ing with the administration, with re- President; when they are, we should thing to do. And then what happens? gard to the Mexico certification issue have the right to have another vote on There is a Democratic Caucus this regarding drugs and how the drug war whether or not there should be decerti- morning. They meet and decide that is being fought with the United States fication with waivers, or certification, because they can’t dictate the schedule Government being involved and, of or whatever. They agreed to not insist on another issue, because they can’t course, with the Mexican Government on that. But what they did do was make the majority leader give them a being involved, but in ways that are reach an agreement that requires a re- date certain on another unrelated very troublesome. port from the President, by September issue, they want the United States I had hoped we could get started at 1, on what is being done by our Govern- Senate not to act on the drug problem 10:30, get a time agreement that was ment and by Mexico to do a better job. in Mexico. reasonable, maybe 4 hours equally di- Now, I finally decided last night that Now, my friends, this is a big-time vided, so we could have a full discus- the administration really didn’t want loser for those that are objecting to sion about what is happening with re- any action by the Senate. They want this procedure. It cannot stand. We gard to law enforcement efforts and us to just leave and not do anything. have to find a way to move this for- dealing with drugs coming from Mexico We can’t do that. The Senate should ward. into the United States, so we could take action on something this impor- So all these administration officials talk about the President’s difficult de- tant. So we will act on this. We will are for it, Senate Republicans and S2578 CONGRESSIONAL RECORD — SENATE March 20, 1997 Democrats are for it, and now they are ileged resolution issue. This is dan- Now, I understand that one of the saying, ‘‘If you don’t give us a guaran- gerous. It is not good for the adminis- Members of this body wants to tie this tee on another issue, that we will do it tration. I don’t think it is good for the hard-fought agreement, of which he by a date certain, we are not going to country because the vote that is taken was not a party, to the Chemical Weap- let you bring this up.’’ Look, I know we would be on decertifying Mexico as ons Convention. I hope that the indi- like to play games just before we get to being seriously involved in this drug- vidual who wants to block moving for- go home. But this is not the way to do fighting effort with us. ward with this resolution understands serious business. We are not dealing It might pass. And if we are going to that we are working on a Chemical with partisanship here. We are not have games played here on other unre- Weapons Convention and an agreement dealing with some traditional author- lated issues, it puts me under extraor- to move forward on it. There are active ization. We are dealing with drugs. dinary pressure. discussions and negotiations that are How can we not express ourselves on I have indicated that I do not want to going on. But to tie that to this, in my this? We must, and we will. vote for decertification. But I might. view—and I say this with careful con- I am going to ask unanimous con- Also, even if it does not pass, what if sideration—is totally irresponsible. sent, when the minority leader arrives, the vote is 60 to 40? What does it say The Senator from California, the to bring up Calendar No. 29, House about the administration’s effort? Senator from Georgia, the Senator Joint Resolution 58, regarding the cer- What does it say about the President’s from Texas, the Senator from Con- tification of the President with respect effort? What does it say to Mexico that necticut, Senator DODD, and the Sen- to Mexico, that there be 4 hours total 40 United States Senators voted to de- ator from Massachusetts, Senator for debate on that resolution, to be certify Mexico? Then that would have KERRY, the President’s National Secu- equally divided in the usual form, and to go—unless the House just accepts rity Adviser, the Secretary of State all that one amendment—and only one that—to conference. And then here is joined together. I again applaud the amendment—be in order to be offered what will be pending in conference: de- Senator from California who had a very by Senators COVERDELL, FEINSTEIN, certification, or 90 days of delay and a tough position on this, and a very prin- HUTCHISON, and others. vote. Neither one of those should look cipled one, I might say. And now we I will ask that no other amendments very tempting to those that want to do are being hung up on a Thursday before or motions be in order, and following the right thing. going into a recess, which a lot of us the conclusion or yielding back of the So I do not want to go on at length. would like to go on, because one Mem- time, the Senate proceed to a vote. I want us to get started. We need to get ber of this body who was not a part of We can take it up, and we can have a started. But I hope we can get an the negotiations, nor, by the way, is a calm, cool, nonpartisan debate on a agreement to move forward on the part of the Chemical Weapons Conven- very, very important issue. agreement that was entered into last tion negotiations, of which I am a part, I have here the resolution that was night. It is the right thing to do. It is is going against the direct agreement the subject of the negotiations and the the right thing for the Senate. It is the of the majority leader, the Democratic one that was agreed to last night at right thing for the administration. leader, and all of us. about 7:30 or 8 o’clock. I was around And, on a close call, I guess it is the Mr. President, I urge my colleagues and in and out of those meetings. This right thing in our efforts to control to get this thing done. And I hope that was interesting, I thought, because I drugs coming out of Mexico. the majority leader will move this actually have the copy here, or a copy But, Mr. President, I am in good spir- unanimous-consent agreement, and let of what was agreed to. See that. These its today. I understand we have to do whoever objects come to the floor and are circled paragraphs the administra- this positioning around here. I under- move forward in a parliamentary fash- tion had problems with, and the com- stand you have to try to drag the ma- ion with a live quorum call. promise language that was worked out. jority leader into doing something he This is an important issue that we I don’t like this compromise. But it might not want to do, or cannot do. have to get done with today. The ma- was a responsible thing to do. The But I think this is the wrong place and jority leader has described this sce- same thing on the next page. The work the wrong time to be playing this nario of what happens if we went to was so intense and so committed right game. conference, and what happens if we go up to the last minute. Here is a para- Mr. President, I yield the floor. ahead on a direct vote for decertifica- graph. It circles this, and it is out. Several Senators addressed the tion. This flies directly in the face of a I am going to ask for that. I hope Chair. completely bipartisan agreement. that Senators on both sides of the aisle The PRESIDING OFFICER. The Sen- Mr. President, there is a lot of con- will agree to that. If that effort fails— ator from Arizona. versation about the rancor and par- and I am going to make this request Mr. MCCAIN. Mr. President, I want tisanship. We just went through a very not later than 11 o’clock—I hope to to, first of all, thank the distinguished bitter situation on the point of the CIA hear from the minority leader quickly majority leader because last night he Director. We proved that we can work so we can get started. played a very key role in assisting us together for the good of the country, If I don’t get that consent, then I am in making what I thought was an ex- and now it is about to be derailed. I going to ask unanimous consent that tremely difficult agreement. strongly object to it. the Foreign Relations Committee be I also want to thank the Democrat I yield to the Senator from Texas for discharged from further consideration leader, Senator DASCHLE, who also was a question. of Senate Joint Resolution 21 regarding in agreement that he would move for- I apologize for taking time from the the decertification—this is the decerti- ward on this issue, get it resolved, and Senator from California. Again, I have fication process, not certification; this have it done. I was prepared to come the utmost praise for her, not only on is decertification—with additional over here shortly before the vote in agreement on the compromise last waiver language, that the Senate pro- praise of really what was an outstand- night, but for her constant attention ceed to its immediate consideration, ing bipartisan effort. The administra- and concern over this vitally impor- and that there be a limited period of tion, the Democrats, and the Repub- tant issue. time—presumably maybe 4 hours—for licans worked together to come up I don’t know of anything right now debate. After that, of course, we go to with something which required signifi- that is more important than our rela- a vote. cant compromise on the part of all tions with Mexico and the war on If that is objected to, then I am going sides in order to come up with an drugs, which is destroying young to go to the privileged resolution, agreement that we could move forward Americans as we speak. which is not amendable, provides for 10 and get this issue behind us, which we I yield to her for a question. hours of debate, and a vote. I do not know has extraordinary dimensions as- Mrs. HUTCHISON. Mr. President, the want to do this. It provides for 10 hours sociated with it, given the emotion as- Senator from Arizona just touched on of debate in the law. This is a privi- sociated with the issue of drugs and the an important point, and that is, all of leged resolution that sets out very explosiveness of our relations with us are trying to avoid a vote directly tightly how we would vote on this priv- Mexico. on decertification. No one wants that March 20, 1997 CONGRESSIONAL RECORD — SENATE S2579 to happen. But, in fact, if the Senator We did not start here. Senator a very helpful role. The administration from Arizona is correct—what all of us D’AMATO and I began this a year ago. has agreed in the areas of consensus. I worked so hard to put together was a Not many people listened. We said we think some things they did not want to positive, productive statement that we do not really believe that Mexico has be forced to put forward in law they could work from to make progress in fulfilled the test of a friend and neigh- have agreed to. We have agreed to take the war on drugs between our coun- bor and an ally who has been fully co- out something that the administration tries—if what he is saying is true, then operative as the law calls for to be cer- did not want, which was a September 1 we are all going to be forced to make tified. At that point he and I put for- expedited procedure giving us the op- the worst of all votes because we just ward certain tests that we felt had to portunity to comment again in law on can’t get our bill on the floor for de- be met prior to certification. progress made between March 1 and bate. A year went by, and we saw very lit- September 1. We removed that. We Is that correct? tle progress, if any. And then the Presi- have consensus. The administration Mr. MCCAIN. That is correct. dent made the decision to certify Mex- has said the President would sign this; I appreciate the efforts of the Sen- ico. In his mind, he had many good rea- we believe the House will pass it; and ator from Texas. All of us understand sons to do so. It was a decision that we have a strong policy document with the importance of the war on drugs. was spiritedly debated within the which to move forward. Those of us from border States per- White House. It was debated within the It would just be tragic if we frag- haps—I emphasize perhaps—appreciate Department of State. And that was the ment, if we have to use the only thing it a little bit more because of the di- ultimate decision of the President. we have, which is a decertification, a rect involvement that we have. There were those of us in this body, straight and outright decertification, I am not going to speak on this again myself included, who had a profound as the means to express ourselves. So I in the Chamber and take time. I think difference of opinion with this decision. am very hopeful we would have an op- we are going to work this out. We have We thought that the Colombian model portunity today, now, to bring this res- to. I want to especially express my ap- was the appropriate model and that olution to the floor. If we cannot preciation to the Senator from Califor- Mexico should be decertified but with a achieve unanimous consent, as the ma- nia, the Senator from Texas, the Sen- national interest waiver as was the jority leader has just said, it leaves ator from Georgia, Mr. COVERDELL, and procedure with Colombia 2 years ago him with no alternative but to call up the Senator from Connecticut, Mr. because we felt certification was not the decertification resolution, and once DODD, Senator KERRY of Massachu- the appropriate vehicle. But it is the that debate begins it would take unani- setts, and others, and members of the vehicle that we have, and therefore mous consent to stop it, and unani- administration who sat down with us Mexico should be treated in the same mous consent to bring this resolution and negotiated, I think, an important way Colombia was if the findings were up during that 10-hour period, which I and positive agreement and a way as we believe them to be. see really fraught with great difficul- around this issue. We have had meeting after meeting ties. Mr. President, I appreciate the cour- after meeting. The senior Senator from Once again, I cannot tell you how tesy of the Senator from California, Georgia and I find ourselves in real many hours the Senator from Georgia, and I yield the floor. agreement. The Senator from Texas the Senator from Texas, I and a num- Mrs. FEINSTEIN addressed the and the two of us have worked to- ber of other people have been involved Chair. gether. Democrats came in; Repub- in this effort. We have consulted the The PRESIDING OFFICER. The Sen- licans came in; the administration Democratic leader as we moved along. ator from California is recognized. came in; and we forged an agreement I believe he is pleased with this out- Mrs. FEINSTEIN. Mr. President, I which I believe, based on a conversa- come. really rise to lament the situation we tion at least on my side with the So I plead with colleagues on my side are in. I believe the people of this Na- Democratic leader of the House of Rep- not to hold this resolution hostage to tion sent us to the Senate to work resentatives last night, can be accept- an agreement on the Chemical Weap- across the aisle, to work in a biparti- able to the House and can be a clear ons Convention. It is too important. san way and particularly on issues of statement which gives the President Please, do not do it. major concern. Whether Mexico is cer- certain—not directives—but I think I thank the Chair. tified or not is an issue of major con- certain clear requests from this body Mr. DASCHLE addressed the Chair. cern. It is of major concern certainly to follow on his trip to Mexico which is The PRESIDING OFFICER (Ms. to Mexico; it is to America; it is to the upcoming and from which I believe our SNOWE). The Chair recognizes the dis- cities of America; it is to every Rep- Nation, our big cities, our streets can tinguished minority leader. resentative in the House and to every derive significant benefit. Mr. DASCHLE. Madam President, let Member of this body as well. I am profoundly disappointed to find me begin by associating myself with I wish to pay tribute to the senior ourselves in this situation and really the remarks of the distinguished Sen- Senator from Georgia, with whom I urge colleagues on my side who are ator from California. She speaks for have worked, with the junior Senator rightly concerned with the Chemical many on our side as well, who want from Texas, with whom I have worked, Weapons Convention treaty, rightly very much to bring this issue to clo- Senator KERRY of Massachusetts, to concerned, to please let this resolution sure today. It is because of her efforts the administration team, and to many go, let us have the debate, because ab- and the efforts, as she has indicated, of others. I believe we have demonstrated sent that debate and given no oppor- the Senator from Texas and the Sen- we can, in fact, work across party tunity in law to express ourselves, you ator from Georgia and others who have lines. leave us with no choice but to move for dedicated an extraordinary amount of We have developed a resolution which decertification because that is the only time in the last couple of weeks to I think is a major achievement; it is direct resolution that can come to the working with the administration and law—it is not a sense-of-the-Senate res- floor on an expedited procedure, as the others to bring us to a point where, on olution; it is a law—in which we state majority leader has just said. one of the most contentious issues we our concerns; we make findings; we ask I cannot tell you how strongly I feel have had to confront in this Congress, the administration to move forward; about the cooperation I and others we have actually come to a point where we ask the President to move forward have had from the Republican side of Republicans and Democrats can reach in his trips to Mexico and other Latin the aisle. I have had an opportunity to agreement. That does not happen very American nations to work in a multi- work very closely with the senior Sen- often in this Congress, and especially lateral way to bring back a new agree- ator from Georgia, with his excellent in this session of this Congress so far. ment; we indicate 10 areas where we staff, certainly with my excellent staff, I hope we can avail ourselves of the op- would like to see progress; and we ask with the Senator from Texas, Senators portunity it presents and come to an the administration to report to this MCCAIN, KERRY, DODD, DOMENICI, all of agreement on procedure and allow this Congress on September 1 on the whom came at a very critical time last resolution to be taken up and voted progress made. night into these discussions and played upon sometime by early afternoon. S2580 CONGRESSIONAL RECORD — SENATE March 20, 1997 I did not hear a lot of what the ma- The assistant legislative clerk pro- certification, or decertification, de- jority leader has indicated is his posi- ceeded to call the roll. pending on your point of view. So I tion with regard to the chemical weap- Mr. LOTT. Madam President, I ask want to clarify what I was asking for ons treaty. He knows of the great con- unanimous consent that the order for there. cern on our side of the aisle about the quorum call be rescinded. With regard to the inquiry of the achieving a process that will allow us The PRESIDING OFFICER. Without Senator from New Mexico, first of all, consideration of that treaty no later objection, it is so ordered. let me assure him I understand there is than the 19th of April so that, by the f concern about the April 29 date and the 29th of April, that treaty can be rati- need for some action before that date fied and that we can be full-fledged UNANIMOUS CONSENT AGREE- by a number of Senators. members of the Chemical Weapons MENT—HOUSE JOINT RESOLU- There is disagreement on how essen- Convention. If we miss that small win- TION 58 tial it is we act before the 29th. As a dow, from April 7 to April 19, we will Mr. LOTT. Madam President, I ask matter of fact, whenever the United have lost the opportunity, that 125 unanimous consent that the Senate States should ratify such a treaty, cer- other countries have already taken, now turn to the consideration of Cal- tainly we would be sort of the big kid that we have sought for decades to endar No. 29, House Joint Resolution on the block and we would be involved have an international agreement on 58, regarding the certification of the in the process. But there are argu- chemical weapons. Our failure to be- President with respect to Mexico, that ments on the other side of it, and I cer- come part of the convention will put us there be no time restraints for debate tainly understand that. in the company of Iraq, Iran, Libya, on the resolution and an amendment. I acknowledged to the Senator from and countries that in every way, shape, Further, I ask unanimous consent that Michigan, I believe it was yesterday or and form and by any definition are there be only one amendment in order the day before, that I also understand that in order to get a treaty completed rogue states today. Do we want to be in to be offered by Senators COVERDELL and the subsequent actions that go that position? and FEINSTEIN. along with it, enacting or enabling leg- I would think there would be an un- The PRESIDING OFFICER. Is there islation—— equivocal, unanimous verdict that, no, objection? we do not want to be in the company of Mr. DASCHLE. Reform. Mr. BINGAMAN. Madam President, Mr. LOTT. Reform legislation—it Libya, Iraq, and Iran. But we are in a without objecting, I would like to ask position which, in a very short period takes some time after the actual vote. a question of the majority leader be- So it is my intent for this issue to of time, will force us into that com- fore proceeding or determining whether come up when we come back after the pany if we do nothing. That is why my to object. Easter recess. Democratic colleagues feel so strongly As the majority leader and the There is a statute or bill that has about this issue and believe that there Democratic leader both know, I have been introduced that we hope to get up are very few other issues out there been very concerned that we get some and get a vote on. Very serious. I think more important, and if we do not turn agreements or understanding about good efforts are underway to deal with up the pressure and find ways in which how the Chemical Weapons Convention the parallel issues of U.N. reform. The to assert our determination to get this is to be handled in April. We have a administration is working with a bi- convention considered, we will have deadline coming at us. I think the con- partisan group of House and Senate lost an opportunity, not only for the vention, as I understand it, goes into Members. I think everybody is begin- Senate, for the country, but perhaps effect on the 29th of April. We have to, ning to understand, themselves, and we for the convention itself. This is why it if the United States is to participate, if may be able to get some reforms and is so critical. the judgment of the Senate is we some process on how we deal with what Having said all of that, and I could should participate in that, we would is the number we may be indebted to say a lot more but in the interests of have to make that judgment several the United Nations for and how that time, let me say I believe the majority days before that. At least that is what ever would be addressed. leader is doing as much as he can at I have been informed. We are also working with the chair- this point to bring us to a set of cir- I am just concerned that time is run- man of the committee, Senator HELMS, cumstances that will allow us consider- ning out. We seem to be taking one leg- and Senator BIDEN, the ranking mem- ation in due time. I believe there is a islative or executive matter up after ber, on this reorganization of the State great deal of difference within the Re- another here without really having an Department issue. The new Secretary publican caucus on this issue. I under- understanding about how we are going of State has indicated some encourag- stand that. There are many issues that to dispose of this Chemical Weapons ing things there, and I believe there is divide the Democratic caucus. So it is going to be good faith by all to try to not out of the ordinary to be divided on Convention. I wondered if the majority leader address this issue. an issue of this importance and con- could assure me about how this is There are some legitimate concerns troversy. But I do believe that the ma- about the treaty—the verification going to be brought to the Senate and jority leader has given me adequate question, search and seizure questions, dealt with in the coming month? reason to be confident that we will how it affects different things in Amer- Mr. LOTT. Madam President, if the take this treaty up in a time that will ica. On some of those, the administra- Senator from New Mexico will yield. accommodate ratification on the Sen- tion this year came back and said, First, I would like to just briefly clar- ate floor prior to the 19th of April. ‘‘You’re right. We have some concerns So, given all of his cooperation and ify what we have in this consent re- about this issue.’’ his willingness to work with us, I think quest. It is to bring up this certifi- So a number of them have been the most important thing for us to do cation issue and to allow an amend- worked out. An equal number are with- today is to pass this compromise to ment that would put in place the in the range of being worked out. allow us to work with Mexico to deal agreement that was entered into last Again, Senator BIDEN has been working with the drug issue in a meaningful night by a bipartisan group of Senators with Senator HELMS to address some of way without slapping them in the face. and the administration. those concerns. So I hope, as the Senator from Califor- So this just basically sets up a proc- There are some we just will not be nia has so articulately pointed out just ess to begin the debate and get a vote able to get worked out. I mean, we will a moment ago, that we recognize how on the agreement with regard to cer- have to have votes on amendments on important this opportunity is for all of tification, with the understanding it the floor or there will probably be a us, that we seize the moment, that we does set out some markers as to what substitute. But my intention is to con- get an agreement, and we move for- we think should be done, and it does re- tinue to work with all involved, includ- ward. quire the President to report by Sep- ing the chairman and ranking member, I yield the floor. I suggest the ab- tember 1 as to the progress that is to get this issue to the floor in April. sence of a quorum. being made there. But it does not have That is why I had our list of items. It The PRESIDING OFFICER. The a subsequent date where a vote could is not my intent to stonewall or delay clerk will call the roll. occur. This is going to be the vote on this. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2581 I understand that every time we go the Democratic leader and other Sen- ness on Thursday, March 20, 1997, Friday, out or every time a bill comes up, the ators. I believe we have a reasonable March 21, 1997, or Saturday, March 22, 1997, Senator from New Mexico will be up agreement here. pursuant to a motion made by the Majority here raising questions and maybe even I ask unanimous consent that the Leader or his designee in accordance with the resolution, it stand recessed or adjourned objections. We have other things we Senate now turn to the consideration until noon on Monday, April 7, 1997, or until need to do that are equally or more im- of Calendar No. 29, House Joint Resolu- such time on that day as may be specified by portant. So it is not my intention at tion 58, regarding the certification of the Majority Leader or his designee in the all to allow this thing to go on indefi- the President with respect to Mexico motion to recess or adjourn, or until noon on nitely. and there be 4 hours 45 minutes total the second day after Members are notified to But you do understand, as the major- for debate on the resolution and an reassemble pursuant to section 2 of this con- ity leader, you work with the chair- amendment, to be divided as follows: current resolution, whichever occurs first; and that when the House adjourns on the leg- man, you help the chairman, and the Senator COVERDELL in control of 1 islative day of Thursday, March 20, 1997, Fri- chairman helps you, and you work with hour, Senator FEINSTEIN in control of 1 day, March 21, 1997, or Saturday, March 22, the ranking member. This is a place of hour, 1 hour under the control of the 1997, it stand adjourned until 12:30 p.m. on great comity, and we want to keep majority leader and 1 hour under the Tuesday, April 8, 1997, or until noon on the that. I am trying to honor that as a control of the Democratic leader, Sen- second day after Members are notified to re- majority leader who is, you know, sort ator GRASSLEY in control of 30 min- assemble pursuant to section 2 of this con- of learning as I go along, making a few utes, and Senator TORRICELLI in con- current resolution, whichever occurs first. mistakes here and there, but getting trol of 15 minutes. SEC. 2. The Majority Leader of the Senate some things done on the way, too. So I I further ask unanimous consent that and the Speaker of the House, acting jointly after consultation with the Minority Leader think you know from what we have there be one amendment in order to be of the Senate and the Minority Leader of the been able to do over the last 8 months, offered by Senators COVERDELL and House, shall notify the Members of the Sen- I work steadily at these things, and at FEINSTEIN. I further ask unanimous ate and House, respectively, to reassemble some point we are going to get to vote consent that no other amendments or whenever, in their opinion, the public inter- on this. I do not mean to say in the motions be in order, and following the est shall warrant it. great wild blue wonder. We are working conclusion or yielding back of time, f very aggressively, and I believe we are the Senate proceed to a vote on the going to get a process to get it dealt amendment, to be followed by third DISAPPROVAL OF THE CERTIFI- with in April. reading and final passage of House CATION OF THE PRESIDENT RE- Mr. BINGAMAN. Madam President, Joint Resolution 58 without further ac- GARDING MEXICO let me just respond by saying I appre- tion or debate. The PRESIDING OFFICER. The ciate the statements by the majority Mr. DASCHLE. Reserving the right clerk will report the resolution. leader. I have observed the majority to object, I ask unanimous consent The assistant legislative clerk read leader here for several months, and I that in addition to this request, which as follows: have great confidence that when he ex- I fully support, that the request be The joint resolution (H.J. Res. 58) dis- pects and intends for a particular mat- amended to accommodate a need by approving the certification of the President ter to come to the Senate floor and be the senior Senator from West Virginia, under section 490(b) of the Foreign Assist- dealt with, that that will actually Senator BYRD, to speak for 30 minutes ance Act of 1961 regarding foreign assistance occur, and I am encouraged by his on another matter. I ask unanimous for Mexico during fiscal year 1997. statements to that affect. On that consent that following the vote, the The Senate proceeded to consider the basis, I will not object to this particu- Senator from West Virginia be recog- joint resolution. lar unanimous-consent request. nized for 30 minutes. The PRESIDING OFFICER. The Sen- I will plan to renew my concern once Mr. LOTT. Madam President, I ator from Georgia. we return from this recess if it is not amend my unanimous-consent request Mr. COVERDELL. Madam President, clear at that time that we have all par- to include that additional 30 minutes first, let me thank the majority leader, ties in agreement as to the timing to for the Senator from West Virginia the minority leader, and all of those bring that convention to the floor. I after the vote. Senators who have been engaged this think timing is essential. The PRESIDING OFFICER. Without morning in our efforts to move House I have no problem with amendments objection, it is so ordered. Joint Resolution 58. Needless to say, I and changes. I am not trying to dictate Mr. LOTT. Again, Madam President, am very pleased that we have been able the end result on what the Senate does, I thank Senator DASCHLE for his co- to come to this unanimous consent to but I think it is very important that operation. consider this resolution of paramount we vote on it in a timely fashion. I f importance as it relates to the drug take the statement by the majority cartels and the impact they are having PROVIDING FOR THE CONDITIONAL leader to be a statement that he in- on our country, on Mexico, and in all ADJOURNMENT OR RECESS OF tends and expects that we will work as- countries within our hemisphere. THE TWO HOUSES siduously to bring that about. I thank Madam President, I will read from a the majority leader. Mr. LOTT. Madam President, I send statement by Thomas A. Constantine, I do not object. an adjournment resolution to the desk Administrator of the Drug Enforce- The PRESIDING OFFICER. Is there calling for adjournment of the Con- ment Administration, which was given an objection to the request? gress for the Easter holiday. before the Senate Foreign Relations Without objection, it is so ordered. The PRESIDING OFFICER. The Committee on March 12, 1997. I am giv- Mr. LOTT. Madam President, I thank clerk will report. ing this statement as a prelude to my the Democratic leader and the Sen- The assistant legislative clerk read remarks to frame the scope of the issue ators on both sides for the work that as follows: to which this resolution confronts. has been done on this. I believe now we A concurrent resolution (S. Con. Res. 14) Many phrases have been used to describe will have a good discussion about what providing for a conditional adjournment or the complex and sophisticated international is or is not going on with regard to the recess of the Senate and the House of Rep- drug trafficking groups operating out of Co- drug battle that we are fighting, with resentatives. lombia and Mexico, and frankly, the some- the American Government and the The PRESIDING OFFICER. The what respectable titles of ‘‘cartel’’ or ‘‘fed- Mexican Government being involved. question is on agreeing to the concur- eration’’ mask the true identity of these vi- Madam President, I believe we are rent resolution. cious, destructive entities. The Cali organi- able now to get a time agreement, The concurrent resolution (S. Con. zation, and the four largest drug trafficking which I think would be very helpful to organizations in Mexico—operating out of Res. 14) was agreed to as follows: Juarez, Tijuana, Sonora and the Gulf re- all Senators to know that we are going S. CON. RES. 14 gion—are simply organized crime groups to proceed and there will be a time Resolved by the Senate (the House of Rep- whose leaders are not in Brooklyn or Queens, specified so we can have a vote by 4 resentatives concurring), That when the Sen- but are safely ensconced on foreign soil. o’clock, hopefully. I discussed this with ate recesses or adjourns at the close of busi- They are not legitimate businessmen as the S2582 CONGRESSIONAL RECORD — SENATE March 20, 1997 word ‘‘cartel’’ implies, nor are they ‘‘fed- the hemisphere the way we come to the have been following this for a long erated’’ into a legitimate conglomerate. battle. And it calls on the President, time are going to keep right on doing These syndicate leaders—the Rodriguez when he goes to Mexico and Latin that, and they eagerly await the re- Orejuela brothers in Colombia to Amado America later this year, and to the Carrillo-Fuentes, Juan Garcia-Abrego, port. You will not be able to remove Miguel Caro-Quintero, and the Arellano- Caribbean, to bring this subject up and Congress from this issue, and every- Felix Brothers—are simply the 1990’s version to begin talking about how we can body should take note of that. Every of the mob leaders U.S. law enforcement has come together as equal partners to friend of the hemisphere should take fought since shortly after the turn of the confront this stealth adversary that note of it. century. cares for no human being nor any sov- Madam President, I hope that this is But these organized crime leaders are far ereign nation. If we fought the battle interpreted throughout the hemisphere more dangerous, far more influential, and in the Persian Gulf, Madam President, have a great deal more impact on our day to as an instrument of assistance, good day lives than their domestic predecessors. like we are fighting this adversary— will, rededication, compassion, and While organized crime in the United States and I might add that it is virtually as concern, because that is what was in during the 1950’s through the 1970’s affected dangerous—we would have lost that the hearts and minds of all the Sen- certain aspects of American life, their influ- struggle, as we are losing this one. We ators, and others, who worked to ence pales in comparison to the violence, need to reinvigorate the struggle, and produce this document. corruption and power that today’s drug syn- this proposal, which is endorsed by I want to particularly say thank you dicates wield. . . . The drugs—and the at- such a wide array of people, does just tendant violence which accompanies the to Senator FEINSTEIN, who has been at drug trade—have reached into every Amer- that. this job a lot longer than I, and I ad- ican community and have robbed many Madam President, I want to say a few mire her work; Senator D’AMATO of Americans of the dreams they once cher- words about this, because every time New York, who joined her last year; ished. somebody stands up and says the sta- Senator GRASSLEY, who is the chair- And I add, even, in thousands of tus quo is unacceptable, you are imme- man of our drug task force, who has cases, their lives. diately pushed into a category of being worked tirelessly to deal with these In the face of this massive drug prob- insensitive to those in Mexico, or other problems; Senator KERRY of Massachu- lem and its effect on two friendly coun- countries who were trying to help us, setts, who is a member of the Foreign tries, the United States and Mexico, and, indeed, we know they are there. Relations Committee and worked in the administration decided to certify And no one who is an author of that these final negotiations; Senator Mexico as being fully cooperative in resolution has it in their mind that MCCAIN of Arizona; Senator DOMENICI our joint battle. The message that they want to make their job more dif- of New Mexico, and, of course, our co- sent, Madam President, to the people ficult. But if the only answer we get is, author, the junior Senator from Texas, of both of our countries was that ‘‘Just keep this quiet, don’t raise the KAY BAILEY HUTCHISON, who was in things are going along pretty well. issue,’’ and every time it is raised you every step of the negotiations from the They are not. In fact, they are in crisis are categorized as somebody who is of- beginning. The prints of her work are proportions. fending another nation, that is inap- fashioned into this resolution as well. I We cannot accept a statement to the propriate and unacceptable. know I will have left somebody out American people, a statement to the The work that we have been doing and, for that, I apologize because it has people of Mexico, and a statement to here is absolutely on target. This coun- been such a wide array of people who the people of this hemisphere that we try and Mexico, and all the other coun- brought this resolution to the floor. are winning the struggle, because we tries in the hemisphere, have to go There are many, many issues that are not. We are losing it in its current public about the scope of the enemy we are very important in the U.S. Con- configuration. are struggling with. That is what this gress, but I believe when you look at That led, Madam President, a num- resolution does. It takes us to a new the hemisphere and all the opportunity ber of the Members of the Senate on place and a new day and a more open in this hemisphere of democracies—40 both sides of the aisle, in every region and honest discussion in the hemi- percent of all United States exports of our country, and of every political sphere about this adversary. occur in this hemisphere, which is Technically, Madam President, this and philosophical persuasion, to say much larger than Europe, and larger resolution will cause the administra- no. That is a ratification of the status than the Pacific rim. We have a lot at tion to come to the Congress and dem- quo, and the status quo is unaccept- stake, big time. But there is one cloud onstrate to us that they have renewed able. It is unacceptable. that hangs over us throughout the Now, some interpret that as an at- this battle not only in the hemisphere, hemisphere, and it’s the drug cartels. tack on Mexico. I do not see it that but in the United States. There is a We have to restructure the battle. I way. I see it as an honest appraisal of mutuality about this resolution. It ac- hope this stands as a beginning to go to a situation that is debilitating to both knowledges that our country is a key a new struggle and, ultimately, a vic- Republics. The President of Mexico element in the problem. Not only are tory. himself has said that the greatest we a consumer and the No. 1 consumer Madam President, parliamentary in- threat to the Mexican Republic are the of these illicit drugs, but we are a pro- quiry. Do you have the resolution? Has drug cartels. We cannot accept the sta- ducer of the drugs themselves, and a it been submitted? tus quo. grower of them. We have to get this on Madam President, House Joint Reso- the table. If you are going to eradicate The PRESIDING OFFICER. The reso- lution 58 is a rejection of the status marijuana in Mexico, let’s get it eradi- lution is pending. The amendment has quo and a victory for the people of both cated here. The technologists tell us we not been offered. countries who want to renew and rein- can find any of these products where AMENDMENT NO. 25 vigorate this battle, to put it on a new they are growing. Well, let’s find them (Purpose: To propose a substitute.) course. Throughout the debate, I have and get rid of them. Mr. COVERDELL. Madam President, argued that we need to find a new place A contention that made this resolu- under the previous consent agreement, to be other than just the debate over tion such a struggle to come to was I send an amendment to the desk and whether any country has met a criteria that the administration did not want ask for its immediate consideration. established by the United States as to us to come back and revisit this ques- The PRESIDING OFFICER. The whether they are adequately fighting tion later in the year. In the last hours, clerk will report. the battle or not. The point is, the bat- as the majority leader described, late The assistant legislative clerk read tle, as it has been fought, is being lost last evening, that provision was re- as follows: and we must find a new way to come to moved. I think the administration the struggle. I am pleased to say that needs to take note of the fact that this The Senator from Georgia [Mr. COVERDELL], for himself, Mrs. FEINSTEIN, Mr. in House Joint Resolution 58 there is report will be due at just the time this HELMS, Mrs. HUTCHISON, Mr. MCCAIN, Mr. DO- language that is adopting my sugges- Senate and this Congress will be deal- MENICI, Mr. KERRY, Mr. DODD, Ms. MOSELEY- tion, along with that of Senator DODD ing with appropriations. And the ap- BRAUN, and Ms. LANDRIEU, proposes an of Connecticut, that we reconstruct in propriators and the authorizers who amendment numbered 25. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2583 Mr. COVERDELL. Madam President, (12) In December 1996, the Government of (D) The denial of safe havens to persons I ask unanimous consent that reading the United States and the Government of and organizations responsible for drug traf- of the amendment be dispensed with. Mexico joined with the governments of other ficking and related crimes and the improve- The PRESIDING OFFICER. Without countries in the Western Hemisphere to seek ment of cooperation on extradition matters objection, it is so ordered. to eliminate all production, trafficking, and between both countries. The amendment is as follows: abuse of drugs and to prevent money laun- (E) The simplification of evidentiary re- dering. quirements for narcotics crimes and related Strike all after the resolving clause and in- (13) Section 101 of division C of the Omni- crimes and for violence against law enforce- sert the following: bus Consolidated Appropriations Act, 1997 ment officers. SECTION 1. REPORT REQUIREMENT. (Public Law 104–208) requires the Attorney (F) The full implementation of effective (a) FINDINGS.—Congress makes the follow- General to increase the number of positions laws and regulations for banks and other fi- ing findings: for full-time, active-duty patrol agents with- nancial institutions to combat money laun- (1) The abuse of illicit drugs in the United in the Immigration and Naturalization Serv- dering, including the enforcement of pen- States results in 14,000 deaths per year, has ice by 1,000 per year through the year 2001. alties for noncompliance by such institu- inordinate social consequences for the Unit- (14) The proposed budget of the President tions, and the prosecution of money ed States, and exacts economic costs in ex- for fiscal year 1998 includes a request for 500 launderers and seizure of their assets. cess of $67,000,000,000 per year to the Amer- such agents. (G) The eradication of crops destined for il- ican people. (15) Drug cartels continue to operate with licit drug use in Mexico and in the United (2) An estimated 12,800,000 Americans, rep- impunity in Mexico, and effective action States in order to minimize and eventually resenting all ethnic and socioeconomic needs to be taken against Mexican drug traf- eliminate the production of such crops. groups, use illegal drugs, including 1,500,000 ficking organizations, particularly the (H) The establishment and implementation users of cocaine. Further, 10.9 percent of Juarez and Tijuana cartels. of a comprehensive screening process to as- Americans between 12 and 17 years of age use (16) While Mexico has begun to extradite sess the suitability and financial and crimi- illegal drugs, and one in four American chil- its citizens for the first time and has cooper- nal background of all law enforcement and dren claim to have been offered illegal drugs ated by expelling or deporting major inter- other officials involved in the fight against in the past year. Americans spend approxi- mately $49,000,000,000 per year on illegal national drug criminals, United States re- organized crime, including narcotics traf- drugs. quests for extradition of Mexican nationals ficking. (3) There is a need to continue and inten- indicted in United States courts on drug-re- (I) The rendering of support to Mexico in sify anti-drug education efforts in the United lated charges have not been granted by the its efforts to identify, remove, and prosecute States, particularly education directed at Government of Mexico. corrupt officials at all levels of government, the young. (17) Cocaine seizures and arrests of drug including law enforcement and military offi- (4) Significant quantities of heroin, traffickers in Mexico have dropped since cials. methamphetamines, and marijuana used in 1992. (J) The augmentation and strengthening of the United States are produced in Mexico, (18) United States law enforcement agents bilateral cooperation. and a major portion of the cocaine used in operating in Mexico along the United States (2) The extent of any significant and de- the United States is imported into the Unit- border with Mexico must be allowed ade- monstrable progress made by the Govern- ed States through Mexico. quate protection. ment of the United States during the period (5) These drugs are moved illegally across (b) SENSE OF CONGRESS ON COOPERATION ON beginning on March 1, 1997, and ending on the border between Mexico and the United DRUGS BY COUNTRIES IN THE WESTERN HEMI- the date of the report in— States by major criminal organizations, SPHERE.—It is the sense of Congress to urge (A) implementing a comprehensive anti- which operate on both sides of that border the President, in his official visits in the drug education effort in the United States Western Hemisphere, to examine with lead- and maintain the illegal flow of drugs into targeted at reversing the rise in drug use by ers of governments of other countries in the Mexico and the United States. America’s youth; Western Hemisphere the effectiveness of ef- (6) There is evidence of significant corrup- (B) implementing a comprehensive inter- forts to improve counterdrug activities in tion affecting institutions of the Govern- national drug interdiction and enforcement order to curtail the production, traffic, and strategy; and ment of Mexico (including the police and abuse of illicit drugs, and to define plans for military), including the arrest in February (C) deploying 1,000 additional active-duty, specific actions to improve cooperation on full-time patrol agents within the Immigra- 1997 of General Jesus Gutierrez Rebollo, the such activities, including consideration of a head of the drug law enforcement agency of tion and Naturalization Service in fiscal coordinated multilateral alliance. year 1997 as required by section 101 of divi- Mexico, for accepting bribes from senior (c) SENSE OF CONGRESS OF PROGRESS IN sion C of the Omnibus Consolidated Appro- leaders of the Mexican drug cartels. In 1996, HALTING PRODUCTION AND TRAFFIC OF DRUGS priations Act, 1997 (Public Law 104–208). the Attorney General of Mexico dismissed IN MEXICO.—It is the sense of Congress that more than 1,200 Mexico federal law enforce- there has been ineffective and insufficient Mr. COVERDELL. Madam President, ment officers in an effort to eliminate cor- progress in halting the production in and I ask unanimous consent to add the ruption, although some were rehired and transit through Mexico of illegal drugs. name of Senator LANDRIEU of Louisi- none has been successfully prosecuted for (d) REPORT TO CONGRESS.—Not later than ana as a cosponsor. corruption. In the United States, some law September 1, 1997, the President shall submit enforcement officials may also be affected by to Congress a report describing the follow- The PRESIDING OFFICER. Without corruption. ing: objection, it is so ordered. (7) The success of efforts to control illicit (1) The extent of any significant and de- Mr. COVERDELL. Madam President, drug trafficking depends on improved coordi- monstrable progress made by the Govern- I yield the floor at this time. nation and cooperation between Mexico and ment of the United States and the Govern- Mr. HELMS. Mr. President, I am United States drug law enforcement agencies ment of Mexico, respectively, during the pe- genuinely grateful to the distinguished and other institutions responsible for activi- riod beginning on March 1, 1997, and ending Senator from Georgia [Mr. COVERDELL] ties against illicit production, traffic and on the date of the report in achieving the fol- abuse of drugs, particularly in the common lowing objectives relating to counterdrug co- and the distinguished Senator from border region. operation: California [Mrs. FEINSTEIN] for their (8) The Government of Mexico recognizes (A) The investigation and dismantlement excellent work on this issue. They de- that it must further develop the institu- of the principal organizations responsible for serve credit for keeping the Senate fo- tional financial regulatory and enforcement drug trafficking and related crimes in both cused on the question of Mexico’s capabilities necessary to prevent money Mexico and the United States, including the counterdrug cooperation with the Unit- laundering in the banking and financial sec- prevention and elimination of their activi- ed States. tors of Mexico and has sought United States ties, the prosecution or extradition and in- Through this resolution, Senators assistance in these areas. carceration of their leaders, and the seizure (9) The Government of Mexico has recently of their assets. COVERDELL and FEINSTEIN, in a very approved, but has yet to implement fully, (B) The development and strengthening of fair and very essential way, have made new and more effective legislation against permanent working relationships between clear the Senate’s dissatisfaction with organized crime and money laundering. the United States and Mexico law enforce- the status quo. (10) The Government of the United States ment agencies, with particular reference to Mr. President, I know of no Senator and the Government of Mexico are engaged law enforcement directed against drug traf- who was pleased with the President’s in bilateral consideration of the problems of ficking and related crimes, including full decision to certify Mexico as cooperat- illicit drug production, trafficking, and funding and deployment of the Binational ing fully with the United States; the abuse through the High Level Contact Group Border Task Forces as agreed upon by both on Drug Control established in 1996. governments. evidence clearly supports a different (11) The President of Mexico has declared (C) The strengthening of bilateral border conclusion. This resolution gives both that drug trafficking is the number one enforcement, including more effective the President of Mexico and President threat to the national security of Mexico. screening for and seizure of contraband. Clinton an opportunity for redemption. S2584 CONGRESSIONAL RECORD — SENATE March 20, 1997 Mexico’s President Zedillo has made exchange for allowing cocaine ship- The resolution now before this body, numerous declarations against drug ments to pass through Tijuana. known as the Coverdell-Feinstein trafficking—which we applaud. More- In Mexico, corruption is not confined amendment, I think is significant. Let over, we recognize that President to the federal government. It is equally me tell you the two ways that I look at Zedillo is no Ernesto Samper. But, as pervasive at the state and local levels. this. for the two countries, Colombia and Just last week, a judge in Guadalajara This resolution is either the first Mexico, the only difference between dropped charges against a major drug step to a new and forceful partnership the two is that, in Colombia, the Presi- trafficker. Also, according to credible to fight drugs all out on both the sup- dency was bought and paid for by drug reports, a number of state governors, ply side and the demand side, and to lords, while, in Mexico, the Presidency who are also prominent within the rul- join with Mexico in so doing, to accept may be the only level of government ing PRI party, have been on the drug President Zedillo’s statement that not bought and paid for by the drug traffickers’ payroll. As long ago as drugs are the No. 1 security problem of lords. 1989, I cited one of these governors, Mexico, and to add to that the United Mr. President, U.S. law requires more Manuel Bartlett, as one senior official States statement that drugs are, in than well-meaning statements for a na- compromised by drug traffickers. fact, the No. 1 security problem for the tion to be certified as cooperating Mr. President, I won’t cite all the United States of America, which I be- fully. Our law requires performance. In statistics that show that, over the past lieve them to be, or this is the first the case of Mexico, performance has 6 years, arrests of drug traffickers and step in a major battle next year, if this fallen far short of the rhetoric. cocaine seizures have decreased signifi- resolution is ignored, to decertify Mex- While the creation of bilateral com- cantly in Mexico, while the volume of ico as being noncooperative in the sup- missions perhaps satisfies the bureau- cocaine, heroin and methamphetamine ply side of the cooperation that goes cratic need for meetings, meetings are going through or coming from Mexico into the retardation of drug flow into meaningless unless they produce tan- increases. Despite this record, the this country. gible results—arrests, convictions, and United States has continuously pre- Mr. President, I want to begin by seizures. tended that the Mexican Government once again paying my respects to the The same can be said of laws: The has been a faithful partner in the fight Senator from Georgia, the chairman of passage of new laws does not stop drug against illegal drugs. The vast major- the Western Hemisphere Subcommit- trafficking; enforcement of laws does. ity of the Mexican people are our al- tee, Senator COVERDELL. He and I share We are still waiting for any implemen- lies; but I have grave reservations a dedication to the idea that the status tation whatsoever of the laws against about most of the Mexican Govern- quo on United States-Mexican organized crime and money laundering. ment. counterdrug cooperation is simply not Indeed, the latter’s effect may have al- The President and Barry McCaffrey, acceptable, and his leadership on this ready been negated when Mexico ex- amongst others, have spoken elo- issue has helped us reach this point. It panded legalized gambling, a time-hon- quently about the horrors of drug use has been an honor and a privilege to be ored way for criminals to launder on our streets, recognizing that this his partner in this effort. And I look money. scourge is destroying lives throughout forward to continuing to work with Corruption with impunity remains this hemisphere. The American and him and his outstanding staff in the the modus operandi for the Federal Ju- Mexican people deserve better. Silence fight against international drug traf- dicial Police, which more often resem- is tacit consent to this corruption ficking. I also want to acknowledge the Sen- bles a criminal enterprise than a law which allows the drug trade to flourish. ator from Texas, Senator HUTCHISON, enforcement agency. At the January Only by exposing the corruption can we whose contribution to this effort was wedding of drug kingpin Amado begin to make a genuine difference in invaluable. Her State, like mine, Carrillo Fuentes’ sister, for example, attacking this evil. In this light, Mr. President, the re- shares a long border with Mexico. So policemen were guarding Carrillo’s fusal to recognize the marriage be- this issue hits home to us in a direct family and friends. This is further evi- tween Mexican Government officials and a meaningful way. Other Senators dence that Mexican police are more and drug traffickers is all the more too numerous to list, with names like likely to protect than arrest drug traf- troubling. Congress must make known DODD, KERRY, MCCAIN, DOMENICI, as fickers and their interests. Impunity is its disagreement with the conclusion well as others, the majority leader, the also the unwritten law for drug traf- that the Mexican Government is co- Democratic leader, have all weighed in fickers and their allies in official posi- operating fully. to bring this effort to fruition. And I tions, such as Gen. Jesus Gutierrez Mrs. FEINSTEIN. Mr. President, I have appreciated working with each Rebollo, Zedillo’s drug czar. ask to be recognized for such time as I and every one of my colleagues to get Here was a case in which the senior might consume within the hour allo- to this outcome. Mexican counternaroctics official was cated to me. Just over a year ago, as has been protecting the biggest Mexican drug The PRESIDING OFFICER (Mr. said, Senator D’AMATO and I started kingpin, Amado Carrillo. The adminis- ASHCROFT). The Senator is recognized. talking about whether Mexico merited tration argues that the arrest of Gen- Mrs. FEINSTEIN. Thank you, very certification as a fully cooperative eral Gutierrez Rebollo is evidence of much. partner in the war against drugs. Our the Mexican Government’s commit- Mr. President, this country has al- view was that Mexico had simply not ment to fight corruption. My questions ways had a great debate about drugs. made enough progress in the war on are: Why was he ever hired in the first Do you fight drugs on the supply side, drug trafficking to justify certifi- place as Mexico’s senior or do you fight drugs on the demand cation. At that time, despite the fact counternarcotics official? Was this an side? There is no question but that we that we laid down 10 specific criteria, intelligence failure? What damage has have a demand problem. But there is no one paid us much attention. Gutierrez Rebollo done to compromise also no question that we have a supply Well, people have paid attention this law enforcement and intelligence oper- problem. My answer to that is that this year. On February 28 of this year, the ations against the drug cartels? And country has never really done both President made the decision to certify are U.S. law enforcement agents now really well. We have never really en- Mexico as fully cooperating with the at greater risk because of this fiasco? gaged in an all-out fight against drugs United States in the fight against drug Mr. President, this is not an isolated on both the supply side and the demand trafficking. But it just didn’t wash in incident. Just this past Monday, on side. the Congress. The evidence simply does March 17, another Mexican Army gen- What is before us today is somewhat not support the claim that Mexico met eral was arrested for drug corruption. limited in scope because it has to do the standard of full cooperation in 1996. It seems that on the day the adminis- with the certification action involving As all of my colleagues are well tration certified the Mexican Govern- Mexico and whether that action aware, Senate procedures made it im- ment’s cooperation with United States should, in fact, take place; whether possible for us to get a vote on what counterdrug efforts, this general was Mexico should be certified, as the many of us believed was the best op- offering a Mexican official $1 million in President said. tion—to decertify Mexico but allow the March 20, 1997 CONGRESSIONAL RECORD — SENATE S2585 President to waive the sanctions based In 1993, per ounce, it was $1,200. Look of these vessels, it may have to put on what is termed a ‘‘national interest at it go straight down. Today, it is $400. into port—and the Mexican traffickers waiver.’’ If decertification with a waiv- Part of that is the fact that it is in have become very sophisticated about er had come up for a vote I believe it competition with the pure white co- moving out, taking the time so that would have passed the Senate by a caine that comes from other places, they know the ship following them large and even possibly veto-proof mar- but still the black tar heroin is heavily needs to refuel. If our vessels have to gin. I do not say that lightly. In the used by addicts, and you can see the put in, they cannot because our ships House, it would have passed over- drop in the street price, which clearly have to give 30-day notice before they whelmingly. Instead, the House passed means more supply. refuel. with over 250 votes a resolution that Then you take the major traffickers. Well, of course, one of the biggest decertifies Mexico in 90 days unless What has happened is that as the Cali tonnages of cocaine transferred specific conditions are met. cartels of Colombia become less potent through maritime channels actually So this resolution, which we will pass in this area, the Mexican cartels have was a ship leaving Peru which our today, expresses Congress’ deep con- become more potent. Specifically, Sen- Navy was able to get to, but the cartels cern over the lack of progress in key ator COVERDELL enumerated four of are very smart. They learn how to pre- areas of Mexico’s counterdrug effort. them—the Juarez, Tijuana, Sonora, vent this from happening. So this is an Let me quote from subsection (c) of and Gulf cartels. And our DEA has important area. the amendment. ‘‘It is the sense of the clearly stated to us in testimony, writ- And then finally a battle that we Congress that there has been ineffec- ten and verbal, that the Mexican major have had back and forth—and I still tive and insufficient progress in halt- drug cartels today are operating with hold fast to this statement—Mexico ing the production in, and transit impunity, and even the State Depart- has never extradited a single Mexican through, Mexico of illegal drugs.’’ ment admits that ‘‘the strongest national to the United States on drug charges despite 52 extradition requests, This statement has never before been groups such as the Juarez and Tijuana for at least 13 of which the paperwork made by this body and the other body cartels have yet to be effectively con- has been completed. Now they have in concert. And I believe it will be, and fronted.’’ no one should underestimate what that Mexican cartels have assassinated 12 made advances, they have begun to ex- means. high-level prosecutors and senior law tradite Mexican nationals on other In short, while we could not decertify enforcement officers in just the last charges, and I think they should be commended for that. But that is not Mexico, the Congress rejects the ad- year. Here is the clincher. None of yet full cooperation. ministration’s claim that Mexico has these murders has been solved. Twelve fully cooperated with the United So I think the record is clear. It is major Federal and statewide prosecu- not credible to make claim that Mex- States. The evidence I believe is over- tors, sometimes the head prosecutor, whelming. Last week, I tried to lay ico has fully cooperated with the Unit- people who want to do a good job, have this case out with some specificity, the ed States in combating drug traffick- been assassinated for doing that good case that Mexico has not earned decer- ing, and that is the standard required job. It has often been said that those tification. I will not repeat here all of by section 490 of the Foreign Assist- they cannot buy, the cartels will kill. the facts to prove that Mexico has not ance Act. Corruption is endemic in Mexico’s Despite these facts, the claim has met the test of full cooperation. But Government, police, and military. The let me just remind my colleagues of a been made by the administration that Mexican drug czar was arrested for cor- few of those facts. progress has been made, and I respect ruption as was another senior army No. 1, cocaine seizures by Mexican that. The administration has said that authorities in 1996, 23.6 metric tons, general just 2 days ago. DEA Adminis- they believe some of the things I have were barely half of what they were in trator Constantine has said ‘‘there is just alluded to are in the process of 1993 when there were 46.2 metric tons. not one single law enforcement institu- being corrected. That is why originally You see how they have dropped and tion in Mexico with whom DEA has an we felt it was so important to have this how they have barely picked up this entirely trusting relationship.’’ body be able to monitor progress, com- Mexico has enacted money launder- past year. ment on progress on September 1 in an Drug related arrests in 1996 were ing legislation last year. So far the leg- expedited way, and make a finding if 11,038, less than half of what they were islation has not been implemented. we found the progress inadequate. in 1992. In 1992, what I am saying is Banking regulations were finally is- That has been removed from this res- that the cooperative effort on arrests sued last week, 2 months late, but they olution, but the administration will was double what it has been this past do not take effect until May, and their still report on progress. You can be year. And these are specific measure- effectiveness has not yet been evalu- sure that I and others in this body will ments that can’t be challenged. They ated. come to the floor and make our com- are there. You have to look at them. Mexico has failed to adequately fund ments on September 2 or 3 or 4 or 5 on Another way of measuring this, for the Binational Border Task Forces whether we regard this progress as those of us that are familiar with how agreed to by the two sides in a much being adequate. drugs reverberate on streets, is wheth- touted bilateral meeting, and as we all So as we engaged in negotiations er street prices are dropping or rising. know, to this day Mexico has forbidden with the administration over the past If the street prices for cocaine and for our DEA agents taking part in these week on this resolution, it was ex- heroin drop on the streets, you know border task forces, if they cross the tremely important to put into place a there is more supply. border from our country to Mexico, to mechanism by which we could hold the If they rise on the streetcorners of carry sidearms to protect themselves administration accountable. We have New York and Los Angeles and Chicago on that side of the border. compromised here. But we also have 10 and Dallas and other cities in this Na- Mexico has refused to allow United specifics. Subsection (d) requires the tion, then you know there is less sup- States Navy ships patrolling for drug President to support on progress in 10 ply. Let us for a moment take a major smugglers to put into Mexican ports to specific areas—and I urge Members to city, a huge city, over 6 million people refuel without 30 days’ notice. begin to look at this. It begins on page in Los Angeles, and let us look at The reason this is so important is 6 of the resolution following this his- street prices. The street prices of co- that if you are trailing a ship, whether toric statement that ‘‘it is the sense of caine today, in Los Angeles, are 22 per- it is a fishing vessel or another mari- Congress that there has been ineffec- cent lower than they were in 1993. This time vessel, you may need to pursue it tive and insufficient progress in halt- is for a kilogram, $21,000 in 1993, drop- into Mexican waters. More drugs are ing the production and transit through ping to $16,000 today. now coming into our country via mari- Mexico of illegal drugs.’’ We say that Let us take a look at the street value time channels. Fishing boats, commer- not later than September 1 the Presi- of black tar heroin, almost entirely cial boats, ships, and other maritime dent shall submit to the Congress a re- transferred to the United States from transportation devices are today carry- port and then we list 10 areas of con- Mexico. Here is the street value of this ing increased tonnage of drugs. If we cern to be addressed in the report. Let black tar heroin in California. have a Coast Guard ship tracking one me outline those 10 areas. S2586 CONGRESSIONAL RECORD — SENATE March 20, 1997 The first is effective action to dis- Eighth, implementation of a com- I very much hope, in summary, that mantle the major drug cartels and ar- prehensive screening program to iden- there will be a very strong vote in this rest and extradite their leaders. This tify, weed out, and prosecute corrupt Chamber for this resolution. If it goes specifically to the two most pow- officials at all levels of the Mexican passes, I have been assured by John erful groups, the Juarez and Tijuana Government, police, and military. This Hilley of the White House Office of cartels, as well as others like the So- means vigorous screening of candidates Legislative Affairs and General McCaf- nora and the Gulf cartels. before they are hired, not rehiring cor- frey, Director of the Office of National Second, better cooperation between rupt policemen after their dismissal, Drug Control Policy, that the adminis- the United States and Mexican law en- and prosecution of those found to be tration will work hard to get this reso- forcement including the funding and corrupt. We commend Mexico for firing lution passed by the House. If they do, deployment of the Binational Border 1,250 law enforcement officers. The I believe it will pass the House. John Task Forces and allowing United problem is, none were prosecuted. That Hilley and General McCaffrey also as- States agents in these forces to arm is the problem. And we are asking for sured me that the President will sign themselves for self-defense. That is the cooperation. this resolution as passed by the Senate. I think it is worth noting that the implication. By September 1 we will We, for the first time in history, will Los Angeles Times reported yesterday know whether it has been achieved or have passed a law, not a sense of the that 3 percent of the Mexican police not. The answer then will be yes or no. Senate resolution, but a law which tested positive for drug use in a recent Third, better enforcement at the bor- states a purpose, which states a new ef- der. This means increased screening for survey. This was 3 percent of Federal personnel screened. I think it added up fort, which states specifics, and which and seizures of contraband. It also asks that on both the supply side and means, and Senator HUTCHISON was to some 424 Federal law enforcement officers who failed drug tests. We have the demand side there be a new effort very effective in incorporating this by both the United States of America into our resolution, that we call for the that same problem in our Nation. So we admit it and we try and screen. We and the sovereign, independent country funding and the assignment of an addi- of Mexico, to address the drug problem tional 1,000 agents on the border this are asking our partner in Mexico to do the same thing. together, both on the demand side here next year. The administration’s budget Ninth, we have a clause in there re- with us and the supply side there with has funding for 500. Let me say to the garding support by the United States Mexico. administration, from this side of the of Mexico’s efforts to combat corrup- It is a very important, significant aisle, that is not adequate. We are ask- tion. I cannot conclude without saying piece of legislation. I believe, I sin- ing for 1,000, by official action, incor- that Mexico has made efforts. I believe cerely believe, it can have major, long- porated in this legislation. Mexico has made efforts. I simply ques- term impact. If it does not, the alter- Improved cooperation on extra- tion the adequacy of those efforts. But, native is very clear next year. It is ditions—that is the fourth. This goes for those efforts that have been made, very clear. And it will not be just Sen- specifically to the need for Mexico to we should provide support, and I be- ator D’AMATO and I next year, or Sen- extradite Mexican nationals who are lieve every Member of this Congress, ator COVERDELL and I, and Senator wanted in the United States on drug and certainly this Senate, wants to do HUTCHISON and others, and hopefully a charges. A good start would be the 13 so. So, this clause reads, ‘‘the render- majority this year. It will be a full- such requests pending. There are sev- ing of support to Mexico in its efforts blown effort to see that this progress is eral dozen more on the way. On Sep- to identify, remove and prosecute cor- carefully evaluated. And whatever ac- tember 1, we will see how many extra- rupt officials’’—they would ask us for tion we must take, we will, in fact, ditions there have been. that support, but we would certainly take. Fifth states easier rules of prosecu- say that support would be forthcoming. Mr. President, let me express my tion of drug traffickers. At the present The 10th and final provision calls for thanks to the distinguished Senator time, the evidentiary rules in Mexico— ‘‘the augmentation and strengthening from New Mexico, Senator BINGAMAN, and Mexico is aware of this—are such of bilateral cooperation.’’ This is not for lifting his objection. I know he has that, in their country it is very dif- specific in the law we are writing. It is very deep and heartfelt feelings about ficult to come by a conviction. nonspecific. At the administration’s re- the Chemical Weapons Convention. I Sixth, full and ongoing implementa- quest, we removed a direct reference to tion of effective money laundering leg- have said to him informally, and I will air and maritime cooperation. But I say here, I will certainly do everything islation and enforced regulations—for think the record should show that Con- banks and other financial institu- I possibly can to provide him with any gress does expect this report to discuss help I can give, to see that it comes to tions—these are the money-changing progress made in areas such as aircraft houses outside of banks—with pen- the floor. But I am very pleased he has overflight and refueling rights, aircraft withdrawn his objection and we will be alties and sanctions for those who do radar coverage, and maritime refueling not comply and immunity for those able to bring this debate to a conclu- rights. sion with a vote on this resolution. who help, so people who turn in money I look forward to receiving this re- launderers will not be assassinated. We Mr. President, I ask how much time port on September 1. The record will remains on my hour? are hopeful—and I commend Mexico for reflect that, and Senator COVERDELL The PRESIDING OFFICER. The Sen- taking action in this regard—we are and I and Senator HUTCHISON and oth- ator from California has 31 minutes of hopeful that last week’s progress in is- ers, come September 1, as sure as the time remaining. suing these regulations will lead, now, sun will come up, we will make an in- to effective enforcement. We all know quiry to see what the progress has Mrs. FEINSTEIN. I thank the Chair. it is one thing to have something on been. And if the Congress finds the Mr. President, I yield the floor and re- the books, it is another thing to see progress cited by the administration to serve the remainder of my time. that something is carried out and en- be inadequate, it will no doubt find Mr. COVERDELL addressed the forced. On September 1, Senator ways to respond. Chair. COVERDELL and I and others will both This report, in essence, in addition to The PRESIDING OFFICER. The Sen- be looking at these. Are they in place? the findings carried up front in this ator from Georgia. Have they been effected? Have they resolution and the two senses of the Mr. COVERDELL. Mr. President, be- been enforced? Senate, urging the President on his fore the Senator from California Seventh, increased eradication of visit to put forward this new, multilat- leaves, I want to express my gratitude drug crops, including marijuana and eral cooperative, hemispheric drive, if for her tireless work. I do want to men- opium—this is the seventh. We hope you will, reflect a new strategy, a new tion, while she is here, a debt I believe and expect that eradication figures will plan, new bilateral cooperation, and we both owe to the chairman of the increase this year. I believe our Nation the specific sense of the Senate, and Foreign Relations Committee. Senator is prepared to play a role in any bina- our conclusions as to why we would HELMS of North Carolina hovered over tional cooperation that the Mexican have to say there has not been full co- these efforts throughout, and as late as Government would wish in that regard. operation up to this point. minutes before an accord was struck, March 20, 1997 CONGRESSIONAL RECORD — SENATE S2587 personally heard out all the sugges- I hold in my hand several newspaper mum security penitentiary on the outskirts tions that had been made, com- accounts, recent newspaper articles of Mexico City. He was described in news re- promises, and I believe was a major which raise serious questions as to the ports here as a commander in a military re- contributor to the conclusion by his at- efficacy of the Mexican Government’s gion with headquarters in the central city of Guadalajara, where General Gutie´rrez tention, concurrence and coauthorship counternarcotics efforts. Let me just Rebollo also served. of this provision. I know the Senator give you some of the headlines: In his first sworn statements taken at the from California would acknowledge ‘‘Another Mexican General is Ar- prison, General Navarro Lara admitted mak- that as well. rested and Charged with Links to Drug ing the bribe offer but said he had not taken Mrs. FEINSTEIN. Will the Senator Cartel.’’ any payments from the Arellano Fe´lix broth- yield for a moment? ‘‘2nd Mexican General Faces Drug ers and only cooperated with them after they Mr. COVERDELL. I yield. Charges.’’ threatened to kill one of his children. Mrs. FEINSTEIN. Thank you very ‘‘424 Fail Drug Exams in Mexican The arrest comes as President Ernesto Zedillo is struggling to rebuild Mexico’s much. I would like to acknowledge Law Enforcement.’’ anti-narcotics program after the devastating that. The chairman of the Foreign Re- The list goes on and on. I ask unani- arrest of General Gutie´rrez Rebollo, under lations Committee is, in fact, a cospon- mous consent that these articles be pressure from the United States Congress, sor of this legislation. Like me, he had printed in the RECORD. which is moving to reverse President Clin- very strong feelings, and I know when There being no objection, the mate- ton’s recent decision to certify Mexico as a you have very strong feelings, com- rial was ordered to be printed in the fully cooperating ally in the drug war. promise is difficult. He did do that. I RECORD, as follows: Mr. Zedillo has said he is determined to de- am very thankful, because I think we tect and arrest officials implicated in the [The New York Times, Mar. 18, 1997] drug trade no matter how high their rank. have a very strong piece of legislation ANOTHER MEXICAN GENERAL IS ARRESTED AND Last week Mr. Zedillo chose a civilian offi- as a result, and his support was cer- CHARGED WITH LINKS TO DRUG CARTEL cial with no narcotics investigating experi- tainly vital and, I think, crucial to get- (New proof that traffickers have corrupted ence, Mariano F. Herra´ n, to replace General ting this resolution on the floor and high levels of Mexico’s military) Gutie´rrez Rebollo as head of the drug agen- getting the vote that, hopefully, we (By Julia Preston) cy. will get. So I thank the Senator from MEXICO CITY, March 17.—A Mexican Army Georgia. [L.A. Times/News/Nation & World, Mar. 18, brigadier general was arrested today on 1997] Mr. COVERDELL. I thank Senator charges that he offered a multimillion-dollar SECOND MEXICAN GENERAL FACES DRUG FEINSTEIN. Mr. President, also thank bribe to a top Mexican law enforcement offi- CHARGES Dan Fisk and Elizabeth DeMoss from cial on behalf of a notorious cocaine cartel. (By Mark Fineman) Senator HELMS’ Foreign Relation Com- Brig. Gen. Alfredo Navarro Lara is the sec- mittee staff, Dan Shapiro with Senator ond high-ranking military officer to be jailed MEXICO CITY.—For the second time in a on drug-related charges in a month. His ar- month, federal authorities here Monday an- FEINSTEIN, Randy Scheunemann on the rest is new proof that traffickers have suc- nounced the arrest of an army general on majority leader’s staff, and especially ceeded in corrupting the highest levels of the drug charges. The senior officer was accused Terri Delgadillo and Steve Schrage of Mexican armed forces. of offering $1 million a month to Mexico’s my staff. Jesu´ s Gutie´rrez Rebollo, a division general top counter-narcotics official in Tijuana to I yield up to 10 minutes of my time who was the head of the federal drug agency, protect one of the country’s largest drug car- to the distinguished Senator from Ar- was arrested on Feb. 18 and accused of pro- tels—and of threatening to kill him and his kansas. tecting and receiving benefits from Mexico’s family if he refused. The PRESIDING OFFICER. The Sen- most powerful drug lord, Amado Carrillo The attorney general’s office announced ator from Arkansas is recognized. Fuentes. late Monday that Brig. Gen. Alfredo Navarro Today’s arrest also indicates that compet- Lara had been charged with drug corruption, Mr. HUTCHINSON. Thank you, Mr. ing drug gangs have divided the officer corps bribery and criminal association and jailed President. I commend Senator in their campaign to buy protection. General earlier in the day outside Mexico City in the COVERDELL, in particular, for his lead- Navarro Lara is accused of trying to buy off Almoloya de Juarez high-security federal ership on this issue, his hard work and, the authorities in the border state of Baja prison. along with him, Senator FEINSTEIN, California in the service of the Arellano On Feb. 18, Gen. Jose de Jesus Gutierrez Senator HELMS, the chairman, Senator Fe´lix brothers, a criminal cartel that has Rebollo, then Mexico’s anti-drug czar, was MCCAIN, Senator DODD, Senator waged a bloody war across northern Mexico sent to Almoloya after he was charged with against the rival band of Mr. Carrillo taking bribes to protect the nation’s most HUTCHISON, and the leaders for the hard Fuentes. powerful drug-trafficking cartel, allegedly work they put in. Certainly they put in The only announcement of General headed by Amado Carrillo Fuentes. many, many hours working to resolve Navarro Lara’s arrest came in a terse press Gutierrez’s arrest last month stunned a na- a very thorny and very difficult issue. release tonight by the office of Attorney tion unaccustomed to drug corruption within Having said that, it is with regret General Jorge Madrazo Cue´llar. Neither Mr. its army and sent shock waves as far as and some reservation that I say I be- Madrazo nor any Defense Ministry official Washington just two weeks before the Clin- lieve the resolution before us today is was available for further comment. ton administration recertified Mexico as a totally insufficient. We have now taken According to the release, General Navarro U.S. ally in the drug war. President Clinton a very substantive and meaningful ac- Lara invited the top federal justice official cited the arrest as evidence that Mexican in Baja California to a private meeting in a President Ernesto Zedillo is committed to tion against a poor decision by the ‘‘luxurious suite’’ in a Tijuana hotel early rooting out drug corruption—even in the na- Clinton administration and turned it this month. The general is said to have of- tion’s powerful army. into a political football and, Mr. Presi- fered the official, Jose´ Luis Cha´ vez Garcia, But U.S. congressional concerns that wide- dent, I believe we have fumbled the who is also an army brigadier general, pay- spread official drug corruption here had com- football on the goal line. ments amounting to $1 million a month in promised U.S. intelligence and drug enforce- While I realize the outcome of this return for cooperation in allowing cocaine ment efforts helped drive the House to pass vote is evident, it is clear I cannot, in and other narcotics to pass through the state a resolution decertifying Mexico last week. good conscience, stay silent and not en route across the border into the United As the Senate begins debate this week on that decertification resolution—which Clin- speak to the deficiencies of the resolu- States. General Navarro Lara is said to have con- ton has vowed to veto—Navarro’s arrest tion on which we will be casting our veyed a threat from the Arellano Fe´lix Monday further demonstrated both the depth votes. brothers that they would kill General Cha´ vez of drug corruption in Mexico and Zedillo’s As best I can tell, while the resolu- Garcia and his family if he refused to agree resolve to punish it. tion says many good things, while it to the plan. * * * * * says some very meaningful things, A justice official who formerly held the top post in Baja California, Ernesto Ibarra when you boil it all down and when you MEXICO LET SUSPECTED DRUG TRAFFICKER Sante´s, was shot dead in Mexico City in Sep- look at it, the essence of what we get MOVE $168 MILLION OUT OF SEVERAL BANKS from this resolution is a report that we tember 1996. Several gunmen arrested in that killing were known to be hired members of (By Wall Street Journal staff reporters Lau- are asking the administration, we are the Arellano Fe´lix gang. rie Hays and Michael Allen in New York telling the administration to give us in General Navarro Lara was formally and Craig Torres in Mexico City) a few months, and that, after all is said charged today with drug trafficking and Mexican officials failed to stop a major and done, is all there is to it. racketeering and was confined to a maxi- suspected drug trafficker from spiriting S2588 CONGRESSIONAL RECORD — SENATE March 20, 1997 away $168 million despite a joint U.S.-Mexi- tions, acted honorably. Suspicion of wrong- So while we are willing to decertify can effort to freeze his bank accounts, U.S. doing centers on the Mexican attorney gen- Colombia, our own DEA Administrator officials allege. eral’s office, which Mexican officials them- says Mexico is now worse, and we are selves acknowledge is rife with corruption. The money transfers, which effectively going to certify them. You explain to crippled an ambitious bilateral investigation The Mexican general running the attorney into Mexican money laundering, came just general’s antiarcotics program at the time of me the logic in that, explain to me the weeks before President Clinton certified that the incident was later arrested on charges consistency in that, explain to me how Mexico was cooperating fully in the inter- that he took bribes from a powerful drug we, in good conscience, can do that. national drug fight, U.S. officials say. The lord. Mexico’s counternarcotics effort is episode is likely to fuel congressional criti- Reports of the money disappearance first plagued by corruption in the govern- cism of the decision. appeared in the Mexican newspaper El Uni- ment and the national police. Among Clinton administration officials them- versal. Members of the Gaxiola Medina family the evidence are the eight prosecutors selves have sharply criticized Mexico’s han- and law enforcement officials who have dling of the affair. Testifying before a Senate couldn’t be reached for comment. Regoberto Gaxiola Medina is listed in corporate records panel earlier this month, Deputy Treasury been murdered in Tijuana in recent as the divisional administrator of the family Secretary Lawrence Summers said he had months. Furthermore, the revelation wood business, known as Grupo Industrial registered ‘‘our strong protest’’ at the failure that General Rebollo, Mexican’s top Gaxiola Hermanos SA, but it wasn’t imme- to freeze the money. narcotics official and a 42-year veteran diately clear whether he was the same per- A spokesman for the Justice Department son indicted in Detroit. of the armed forces, had accepted said agency officials, along with those from Pedro Garcia Palzzuelos, an attorney for bribes from the Carrillo-Fuentes car- the State and Treasury departments, had a the Gaxiola Medinas, said the family busi- tels casts grave doubts on Mexico’s ‘‘face-to-face confrontation’’ with Mexican nesses naturally deal in large sums of money ability to curb corruption at the high- officials over the incident. He declined to and foreign exchange. Mexican law-enforce- elaborate. est level of its government. Corruption ment officials ‘‘didn’t encounter any crime is now, in fact, pervasive in the Mexi- Mexican officials involved in the matter related to drug trafficking and they aren’t disputed the U.S. version of events. going to find one,’’ said Mr. Garcia can Government. The case centers on the Gaxiola Medina Palazuelos, adding that there isn’t ‘‘proof of Mr. President, we in this body must family, a prominent clan that runs a local money laundering.’’ all be well aware that Mexico contin- lumber-distribution business in the northern U.S. officials have long worried about ues to be a major transit point for co- Mexican state of Sonora. Mexico’s role in laundering drug profits. caine illegally entering the United INDICTMENT IN UNITED STATES ‘‘Given the primary methods used to move States from South America, as well as narcotics proceeds in the mid-90s, Mexico’s In May 1994, a federal grand jury in Detroit financial system has become the indispen- a major source country for heroin and indicted Rigoberto Gaxiola Medina on sable money-laundering center for criminal marijuana. charges that he ran a trafficking organiza- organizations throughout the Americas,’’ the The 1997 International Narcotics Con- tion that distributed more than 2,200 pounds State Department wrote in its latest over- trol Strategy Report, issued by the of marijuana in the U.S. beginning in 1992. view of narcotics trends. United States State Department, ex- The indictment lists 25 other defendants. According to the indictment, the operation Mr. HUTCHINSON. Mr. President, plicitly notes that Mexico is the trans- loaded marijuana on trucks in Tucson, Ariz., the importance of Mexico’s full co- shipment point for 50 to 60 percent—50 and delivered it throughout the U.S. Sales operation with the United States to 60 percent—of the United States- proceeds were allegedly collected in Michi- antinarcotics efforts cannot, I believe, bound cocaine shipments and up to 80 gan and wired to Mexican banks. be overstated. Drug use among Amer- percent of the meth precursors. This BANCO MEXICANO AND BANCA SERFIN ican teenagers has nearly doubled in report notes that in 1996, Mexico sup- Mr. Gaxiola Medina didn’t enter a plea in the last 5 years. More importantly, plied 20 to 30 percent of the heroin and the case and couldn’t immediately be located more than 70 percent of illegal narcot- up to 80 percent of the foreign-grown for comment. ics coming into the United States flow marijuana entering the United States The U.S. Customs Service began a money- through Mexico. I know that many of of America. laundering investigation into the money those drugs originate in Colombia, in- The fact is that four Mexican drug transfers in April 1996, according to people cidentally, which we decertified, but 70 trafficking organizations dominate the familiar with the matter. U.S. agents con- percent of those coming into the Unit- narcotics trade between the United tacted Mexican Finance Ministry officials, ed States now flow through the nation who in turn traced almost $184 million in de- States and Mexico. The DEA calls posits to 15 Mexican bank accounts. The Fi- of Mexico. these groups the ‘‘Mexican federation’’ nance Ministry put in an official request to Mr. President, as we all know, on and estimates that they gross $10 bil- the Mexican attorney general’s office on Jan. February 28, the Clinton administra- lion to $30 annually in drug sales. Mr. 8 to freeze the accounts, these people add, tion certified that Mexico cooperated President, those drug sales are to our but when the money was frozen on Jan. 20, fully with United States efforts to children, to our Nation and to our cul- only $16 million remained. combat international narcotics traf- ture, and they threaten the very future Customs officials were notified by the ficking during 1996. However, on Feb- of our Nation. Mexicans on Feb. 27 that the money was ruary 27, the day before, the adminis- gone, these people add—one day before the On February 28, 7 hours after the tration received a bipartisan letter President announced his certification White House’s decision to certify Mexico was from 39 Senators—I signed it, Senator announced. of Mexico, again with the full knowl- ‘‘Let’s just say we gave them the informa- FEINSTEIN signed it, and many of my edge of congressional disapproval, tion and they weren’t as successful as every- colleagues signed it—urging our Gov- Mexico’s Attorney General’s office is- ernment to deny certification to Mex- one would have hoped in seizing it,’’ said sued a statement that its own senior ico. The facts unequivocally show us Allan Doody, director of financial investiga- officials had released Humberto Garcia tions for U.S. Customs. ‘‘I would say the that Mexico has not—I say, has not— Abrego, a reputed money launderer and Mexican government is looking into exactly fully cooperated with us. what happened. Right now nobody knows Not one Mexican national out of the brother of convicted drug kingpin, where the money went.’’ 100 or more that the United States Juan Garcia Abrego. We do not know Three Mexican officials involved in the wants for trial here on serious drug whether he was released earlier— case said it isn’t clear when the money left charges has been extradited to the whether it occurred on the 28th or ear- the accounts. They say roughly $183 million lier—with the announcement being arrived from U.S. and Mexican banks into United States, despite our Govern- ment’s numerous requests. Not one has held until after the President’s certifi- accounts controlled by the Gaxiola Medina cation decision was made public. But, family. But the officials deny that most of been extradited. this money was transferred out of those ac- Our own DEA Administrator, Tom again, we see how this country has counts in 1997. ‘‘The most logical hypothesis Constantine, has recently said: been treated over a decade of this cer- is that the money left over a period of time,’’ There has been little or no effective action tification process. said one official. ‘‘These are high turnover taken against the major Mexico-based car- Mr. President, I ask you, can we not accounts.’’ tels. . . do better? Tom Constantine said, in ROLE OF FINANCE MINISTRY Then he said: short, there is not one single law en- U.S. officials said they believe the Mexican The Mexicans are now the single most pow- forcement institution in Mexico with Finance Ministry, which has authority over erful trafficking group—worse than the Co- whom DEA has an entirely trusting re- certain Mexican money-laundering regula- lombian cartels. lationship. Can we not do better than March 20, 1997 CONGRESSIONAL RECORD — SENATE S2589 that, certifying a country that cannot While we say that, we stand aside ticular, I was praiseworthy of their fully cooperate with our counterdrug and allow certification to take place. then-President Carlos Salinas. efforts? What message does this send to I ask Mr. COVERDELL, who controls I even said on the floor of this Senate our children about the seriousness of this time, for 5 additional minutes. that, man for man, I thought he had the drug war? Our children are the real Mr. COVERDELL. Mr. President, I the best Cabinet in the free world. In victims of this policy. yield 5 additional minutes to the Sen- fact, I chose some of his Cabinet mem- I have heard the repeated argument ator from Arkansas. bers because of their tremendous intel- that if the narcotics market in the Mr. HUTCHINSON. I thank the Sen- lectual capacity and great training and United States was not so bloated, then ator. compared them with our then-Cabinet there would be no reason for a contin- The PRESIDING OFFICER. The Sen- members and said, I am pleased to tell ual supply of drugs coming across our ator from Arkansas. the Senate that for the first time in borders. Supply and demand. Quite Mr. HUTCHINSON. So while we say history they probably have a better frankly, I agree with that assertion. in the resolution it is our sense they Cabinet than the United States of However, let’s tackle that issue in the have been ineffective and there has America. crime bill, not on the certification of a been insufficient progress, we allow For those people in Mexico who won- foreign country not being cooperative certification to go forward, which says der how Senators like Senator DOMEN- with our efforts. in fact they have been making progress ICI have become more and more con- I am committed to winning the war and that they have been fully coopera- cerned about what is going on in Mex- on drugs, and we can only do that by tive. ico, let me suggest that it was a very championing the causes to reduce the To my colleagues I simply say, I serious letdown to this Senator. It was amount of drugs in this country, appro- think that is inconsistent, I think that a serious letdown having made state- priating funds for antinarcotics efforts, is intellectually dishonest, and it is un- ments like that, to find out what they and assisting the DEA in the fight. But fortunate, and it does a disservice to were doing and what that pinnacle of Mexico has not been helpful, and that the citizens and our constituents whom free enterprise and privatization, a is the fact and that is the truth. we serve. graduate of our best schools of econom- It is ironic, I think, that while we We pass a resolution asserting that ics, Carlos Salinas, was all about. stand aside and certify Mexico’s full they have failed, that they have not So it was that just a few weeks ago, cooperation, we pass a resolution that made progress, and then we allow cer- as one Senator, I joined in saying to asserts that in fact that has not been tification to go forward. the President that he should not cer- the case. How can we reconcile our treatment tify Mexico as being in compliance and I have the joint resolution before me. of the nation of Colombia a year ago cooperating fully. But I would remind my good friend, It says this: and decertify and with a straight face the new Senator from Arkansas, that There is evidence of significant corruption now certify Mexico through which 70 we in the Congress do not certify. The affecting institutions of the Government of percent of the illegal drugs flow into President certifies. What happened, Mexico (including the police and military). this country? You do it. I cannot. even with many of us saying he should ... I believe that this certification proc- not, the President certified that Mex- It says this: ess has become a sham. It is intellectu- ico was in cooperation and compliance. In 1996, the Attorney General of Mexico ally dishonest to move forward with dismissed more than 1,200 Mexico federal law So now we are confronted with the that. The entire resolution upon which situation where our own President and enforcement officers . . . although some we will be voting contradicts that cer- were rehired and none [none] has been suc- all of those who work for him, includ- cessfully prosecuted for corruption. tification—two standards—that they ing a very able drug czar, Gen. Barry have been fully cooperative and they We are going to say, through the cer- McCaffrey, have told us that the best have been making progress. We pass a tification of Mexico, that they have thing we can do is keep the pressure on resolution that says they have not been been fully cooperative when that is not Mexico, but not to proceed with decer- fully cooperative and they have not the reality of the resolution that we tification from our end on the legisla- been making adequate progress. You are passing. tive side because in their opinion, in- We say in the resolution: reconcile that. I cannot. I yield the stead of making matters better, it will floor. The Government of Mexico has recently make matters worse. Instead of caus- approved, but has yet to implement fully, Thank you, Mr. President. ing more cooperation, it will cause new and more effective legislation against Mr. COVERDELL addressed the less. Instead of causing Mexico to work organized crime and money laundering. Chair. with us in many areas that they are That is what we say in the resolution The PRESIDING OFFICER. The Sen- working in that we are now all becom- we are going to vote for, which flies ab- ator from Georgia is recognized. ing familiar with, it will force them po- solutely in the face of the certification Mr. COVERDELL. I yield up to 10 litically to sever those kinds of rela- of Mexico. minutes of my time to the distin- tionships and to go their own way. The resolution says: guished Senator from New Mexico. Might I remind fellow Senators, all of Drug cartels continue to operate with im- Mr. DOMENICI addressed the Chair. this is happening in the context of an punity in Mexico, and effective action needs The PRESIDING OFFICER. The Sen- election in Mexico which is going to to be taken. . . . ator from New Mexico is recognized. take place in the not-too-distant fu- And yet we are going to certify Mex- Mr. DOMENICI. I ask the Senator, ture. ico as being fully cooperative and mak- how much time do you have? Fellow Senators, I understand Mex- ing progress. Mr. COVERDELL. Let me ask the ico. My State borders Mexico. For We have a resolution that we are Chair. I assume about 20 minutes. those who wonder whether I know going to vote on that says: The PRESIDING OFFICER. The Sen- about their culture, I would remind Cocaine seizures and arrests of drug traf- ator from Georgia has 29 minutes re- you that 38 to 40 percent of the resi- fickers in Mexico have dropped since 1992. maining. dents of my State speak the Spanish So while we say that arrests and sei- Mr. DOMENICI. Mr. President, under language. While many of them are zures are down, we are going to say those conditions, I ask that you notify truly Hispanics from Spain, there are that we are going to certify them as me when I have used 7 minutes. I do many who are Mexicans. But in all re- making progress and being fully coop- not think I should use 10. spects, I understand the relationship of erative. The PRESIDING OFFICER. The Sen- Mexico and its populace, to the United Then on page 6 of the resolution, the ator from New Mexico is recognized for States. I understand how they feel sense-of-Congress portion of the resolu- 7 minutes. about us in terms of whether we really tion, we say: Mr. DOMENICI. Mr. President, about are their friends or are we the big giant It is the sense of Congress that there has 4 years ago I came to the floor of the to the north who is always trying to been ineffective and insufficient progress in U.S. Senate—I did not check for the tell them what to do? halting the production in and transit exact date, but I came to the floor to So I have come to the conclusion, ab- through Mexico of illegal drugs. congratulate and praise Mexico. In par- solutely and unqualifiedly, that it is S2590 CONGRESSIONAL RECORD — SENATE March 20, 1997 better for us not to override the Presi- to lay before the American people and guished Senator from the State of Cali- dent but to go ahead and state our the Mexican people and their govern- fornia, DIANNE FEINSTEIN, as well as case, state our case in a resolution and ment what we think is going wrong in the Senator from Georgia, Mr. then say godspeed to the President and Mexico and say we want to help with COVERDELL, and those who I believe in General McCaffrey and all the others. it. We want to say that we are willing good faith have come together with Let us see if we can get better coopera- to stand back and do what we can in this agreement. I respect their work. I tion between these two great neighbors our appropriation process with the know their purpose and their intent. in the next few years. things we must do on the border for I do not know whether other Sen- I remind everyone the best experts law enforcement, but we are also say- ators will vote in opposition to this now say we are not going to fix this ing to Mexico, you can count on it. We agreement on this day. I do not know if drug problem with Mexico where all of are doing this because our President there are any, but I will not vote for it. these drugs come flowing into our urges us to. Gen. Barry McCaffrey, the I want, Mr. President, to make clear States. drug czar, urges us to. The State De- my reasons, because I look at the same I might say to my friend, Senator partment urges us to. But we are going facts and I simply come to a different COVERDELL, they are pouring into my to hold all of them accountable, not conclusion. State, you can be assured, and into the just Mexico. I remember, Mr. President, being told principal city, although it is a couple We are expecting our Government to at the end of the cold war we were hundred miles from the border, Albu- say the Senate really is serious and we going to be free of some of the com- querque. We have never had so many should do something about these areas. promises of our own interests which murders and gang slayings and drug I must say to our Government, we real- were necessary when we were defending addictions as we have now because we ly risk future action by the U.S. Sen- ourselves in that great international are at the crossroads of the two inter- ate—I do not speak for the House—if struggle. We would be able to speak the state highways, both of them leading we do not get some real performance truth again and to put our own inter- in some way to the south toward Mex- and some honest evaluation in this re- ests of our own people first. This is a test of that principle. It is ico. port that we are requesting here. argued that to tell the truth about So I am aware of that. But I came to That is why I am here. I feel this will Mexico and to decertify Mexico as an the floor to make sure that Mexico un- do more good in our efforts to work ally in the war against narcotics would derstands that we have once again— binationally with Mexico. We need to involve offending Mexican sensibilities. and I hope it will be rather unanimous work with Mexico on myriad fronts— Given the realities of Mexican history in the Senate—that we have come to those affecting this drug scourge that or the Mexican political situation, it the conclusion that we want to urge is flowing into American cities and our nations to cooperate and we are would cause political complications. thus into our young people and Ameri- Mr. President, the question is not urging, if not begging, Mexico to do cans across the board. whether or not Mexico would be of- what it can to be more cooperative and I thank Senator COVERDELL for his fended by a truthful analysis. The issue do more to alleviate this scourge on leadership, and the distinguished Sen- raised is whether or not Mexico is an our people. ator from California. ally in the war against narcotics. That I want to also say that the current It was a pleasure to help you get the is the only question that was asked. It President of Mexico, Ernesto Zedillo is letter signed. I think I got a few Sen- is the only question that is relevant. a very competent man. Some say he is ators, and I am pleased to have been on The truth is unmistakable. Mexico is not a good enough politician. But in- that. I believe our collective work will not assisting, is not an ally in the war deed he has a good enough brain and a bring forth positive fruit both for us against narcotics, and saying that it is good enough commitment to that and for Mexico. or postponing the judgment, as would country. I believe—and here again I I yield the floor. be done by this resolution, does not es- hope I am right—that he is absolutely The PRESIDING OFFICER (Mr. cape that truth. honest, that he is truly dedicated to ENZI). The Senator from Georgia. The truth, Mr. President, is that clean up what he can clean up in Mex- Mr. COVERDELL. I thank the Sen- 14,000 Americans die every year from il- ico. ator from Mexico for his generous re- legal narcotics. If this judgment is to President Zedillo I hope you will do marks and his long work on this sub- be postponed until September 1, and that. And I hope America is there help- ject. March, April, May, June, July, and Au- ing you rather than hindering you as Mr. President, I ask unanimous con- gust are to pass, then another 7,000 you attempt to do that. sent that at the hour of 4:45 p.m., the Americans will be consumed in the spi- This resolution is a good resolution Senate proceed to a vote on amend- ral of death by illegal narcotics, and because it requires that sometime in ment No. 25, and immediately follow- they will have died while we maintain September a full report will be sent to ing that vote, the joint resolution be a false conclusion. the Congress of the United States by read for a third time and passed to and What is it, Mr. President, we would our President, indicating whether the motion to reconsider be laid upon say to the law enforcement officers there has been progress made in the the table, all without intervening ac- from New York to Los Angeles to Chi- many areas cited in this resolution. We tion or debate. cago, to small towns all across Amer- are clearly laying before the Mexican The PRESIDING OFFICER. Without ica, to DEA agents around the world, leaders what we hope is a constructive objection, rule XII is waived and the who risk their lives every day facing resolution, by saying these are the agreement is entered. the truth, if we will not face the truth? kinds of things where we must see Mrs. FEINSTEIN. Mr. President, I Mexico has had an opportunity in the some progress. suggest the absence of a quorum, and I last year to choose sides in the war We will be around for another day. ask unanimous consent that the against narcotraffickers. They had a The Mexican Government knows that. quorum time be applied proportion- choice when the United States filed 52 The President will be around next year ately to all who have time reserved. extradition requests with the Mexican and have to decide on certification The PRESIDING OFFICER. Without Government and no one was extradited. again. I think the President under- objection, it is so ordered. They had a choice when is 250 Mexican stands that we are not expecting cer- The clerk will call the roll. law endorsement officers were dis- tification to come easy and to be a The legislative clerk proceeded to missed from their positions because of matter of course or ever just be a mat- call the roll. corruption, and none were prosecuted. ter of whatever the State Department Mr. TORRICELLI. Mr. President, I They had a choice when the Mexican recommends. We are moving in the di- ask unanimous consent that the order Congress passed money laundering rection of saying we should be honest for the quorum call be rescinded. statutes which were not enforced. Mr. about it. The PRESIDING OFFICER. Without President, Mexico has had a choice For now, most of us who urged that objection, it is so ordered. every day for the last year. the President not certify, we have all Mr. TORRICELLI. Mr. President, I, Now, it may be the will of this insti- come to the same conclusion. We want too, would like to commend the distin- tution to give them another 6 months March 20, 1997 CONGRESSIONAL RECORD — SENATE S2591 to make that choice again. I believe, the truth about their own government, Mexican cooperation and a lack of con- Mr. President, that given the extensive at a time of political judgment in the sensus on how best to respond. corruption in the Mexican Govern- Mexican electoral system. We need to ask ourselves where we ment, the compromising of Mexican For Mexican interests and for Amer- began on this issue. The whole reason law enforcement officials, and their ican interests, I will vote against this for this debate grows out of a simple pervasive operation of narcotrafficking resolution. fact. Congress did not accept the Presi- criminal organizations in Mexico, Mex- A long time ago, we came to the deci- dent’s decision on Mexico. Many in ico may now not only lack the will, but sion that there would be a war against Congress doubt the willingness or abil- may no longer possess the ability to drugs. In wars, there are casualties. At ity of Mexico to fight drugs. In re- control the flow of narcotics to the the moment, the principal casualties sponse, Congress sought to exercise its United States. We cannot construct a are our own children and the police of- legal obligations under the Foreign As- policy of interdicting narcotics in Mex- ficers of our own country. It would be sistance Act to find a means to over- ico by becoming part of a silent con- unfortunate if some in the Mexican po- turn his decision. The means available spiracy, where Mexico pretends to be litical establishment have to face the were not satisfactory. Thinking in the helping interdict narcotics and we pre- wrath of their own people, or if the Senate does not seem to favor a tend to believe them. good name of Mexico is compromised. straight up-or-down decertification of This judgment gets no less painful Perhaps, Mr. President, they will be Mexico. In addition, any such effort, after 6 more months pass than it will added to the list of victims in the war even if it should pass both Houses, will be today. It was said, Mr. President, against drugs. No war is ever won with- face a veto. Congress does not have the during the cold war that the United out casualties. It’s time to get serious votes to override. Thus, our options on States and the Soviet Union went eye in the war against drugs. I believe de- how to proceed have narrowed. to eye and America never blinked. The certifying Mexico is an important step. Many people have compared the deci- United States and Mexico are now fac- Mr. President, I will vote accord- sion to decertify Colombia with the de- ing a war against narcotics, and we ingly. cision to certify Mexico. They have have made an unfortunate decision to I yield the floor. pronounced the process unfair since turn our face away from the truth. The Mr. COVERDELL. Mr. President, I both countries have corruption prob- proper action of this Senate, in my suggest the absence of a quorum. lems but they were judged differently. judgment, would be to vote to decertify The PRESIDING OFFICER. The While that is true, the basic reason is Mexico and place both Mexico and clerk will call the roll. that the situations are not the same. those who influence her on notice that The assistant legislative clerk pro- The reason for decertifying Colombia a price will be extracted for the deaths ceeded to call the roll. was based on reasonably convincing of 14,000 Americans every year by ille- Mr. COVERDELL. Mr. President, I evidence of corruption at the highest gal narcotics, a price will be extracted ask unanimous consent that the order levels of Government. We do not have for failing to choose sides in the war for the quorum call be rescinded. parallel information on Mexico. On the against narcotics. The PRESIDING OFFICER. Without other hand, when you look at the same Mr. President, I know this is a dif- objection, it is so ordered. categories of achievement or coopera- ficult decision for every Member of the Mr. COVERDELL. Mr. President, I tion, Mexico scores at least as well as Senate. But we do not face the hardest ask unanimous consent that the Colombia on most of them. This is not choices. The real choices are made by quorum call time be equally divided on to say that we should be content with our agents in the Drug Enforcement both sides. what Mexico has done. I do not believe Administration, by those on border The PRESIDING OFFICER. Without that Mexican officials are content. Nor control, by the families who wait up objection, it is so ordered. do I think they take any pride in re- every night to see whether their fa- Mr. COVERDELL. Mr. President, I cent revelations about high-level cor- thers and mothers and brothers and sis- suggest the absence of a quorum. ruption. My point is that we should not ters in law enforcement in our cities The PRESIDING OFFICER. The be hasty in making decisions about a and on our borders will come home clerk will call the roll. country with whom we are so closely alive. Our choice is easy. Look at the The assistant legislative clerk pro- linked. We should not rush to decisions facts, review the evidence, and tell the ceeded to call the roll. involving our third largest trading truth. There is an open season on the Mr. GRASSLEY. Mr. President, I ask partner. American border for narcotics. Calling unanimous consent that the order for Instead, I offered an approach that I Mexico an ally in the war against drugs the quorum call be rescinded. believe was both reasonable and re- will not make them a friend and not The PRESIDING OFFICER. Without sponsible. It would have maintained force them to choose sides. This is a objection, it is so ordered. our concern for accountability but it painful choice that must be made by Mr. GRASSLEY. Mr. President, I did not create yet more certification the citizens of Mexico and her business yield myself such time as I might procedures for us to have to get and political leaders. If some are vot- consume. through. And I doubt that cir- ing for this postponement of judgment In the last few weeks, the Congress cumstances will be any less ambiguous until September 1 because they believe has spent considerable time consider- 90 or 120 days from now. My proposal it would cause political problems for ing Mexico. A great deal has been said did establish clear guidelines whereby the PRI, the current political leader- and a number of proposals are on the we all—Mexico, Congress, and the pub- ship of Mexico, then let it be so. table about how to respond to the lic—could judge the state of coopera- We serve no American or Mexican President’s decision to certify Mexico tion using the same terms of reference. purpose by hiding from judgment the as fully cooperating. This proposal would have kept the current political leadership of Mexico. These proposals include a resolution process that Congress created. We cre- It is a moment of truth by our own peo- to simply decertify Mexico. And a reso- ated that process with clear intent and ple. If elements of the leadership are lution that would put on record the deliberation. I do not think it is time corrupted or compromised against the Congress’ concern about the lack of to change that. It is not time for the interests of not only other nations visible progress on drugs. We also have proposed experiment in Government against fighting narcotics, but against a House proposal that is critical of the currently on the table. Given where we defending Mexico in the interests of administration. This proposal would started, it does not achieve what we our own people, then let the Mexican create another minicertification proc- said we expected at the outset. Never- people understand that truth and vote ess. That means we get to have this theless, it is the only proposal on the accordingly. That is the decision, Mr. discussion on Mexico all over again in table. Thus we come to this vote. President. I believe that we postpone September based on a report to follow I will vote for this joint resolution not only recognizing the truth about the President’s summit in Mexico next with reservations. I will look forward, Mexico’s participation in the war month. however, to working with my against drugs, but we postpone, by our In my view, these various proposals collegaues in the future for a formula silence, the Mexican people realizing reflect a generalized concern about that ensures accountability within a S2592 CONGRESSIONAL RECORD — SENATE March 20, 1997 framework that permits informed deci- First, it is clear that we cannot over- several benchmarks—a set of policies sionmaking. state the role of Mexico as a source for that we expect both the Mexican Gov- Mr. FEINGOLD. Mr. President, I will narcotics. Mexico is the primary tran- ernment and the United States Govern- support the bi-partisan compromise sit route for cocaine entering the Unit- ment to undertake in the coming crafted by Senators FEINSTEIN, ed States, a major source country for months. COVERDELL and the administration be- heroin, methamphetamines, and mari- For example, it makes clear that cause I believe the United States must juana, and a major money laundering Mexico must implement its recently signal the Mexican Government that center for illicit profits from the nar- enacted anti-crime laws, including the the status quo is no longer acceptable cotics trade. new money laundering statute and the in regard to anti-narcotics cooperation. Second, I believe we agree that the organized crime law. In addition, Mex- The massive and growing influx of ille- United States bears a significant re- ico must investigate and prosecute of- gal drugs into this country from Mex- sponsibility for combating the narcot- ficial corruption at all levels of govern- ico is a significant threat to both of ics trade. Undeniably, the demand for ment—and we must do all we can to as- our countries and it must be stopped. narcotics in this country spurs the nar- sist Mexico in that effort. And Mexico Prior to the President’s decision to cotics trade. But we are not solely to must deny safe haven to persons and certify Mexico, I joined 40 of my Sen- blame for Mexico’s ills. organizations responsible for drug traf- ate colleagues in writing to the Presi- As the Mexican Government contin- ficking. dent and urging him to decertify Mex- ually reminds us, Mexico is a sovereign These and many other measures—if ico because of its abysmal record —a nations, and it has the responsibility vigorously implemented—will be criti- record which includes a complete fail- to do all that it can to confront the cal to strengthening the effort against ure to extradite nationals wanted for threat of the powerful drug cartels— the drug trade. drug crimes in this country, as well as cartels which now have considerable Mr. President, we have a major prob- rampant corruption at all levels of the influence in Mexican society. lem in Mexico. It is, in part, the result anti-drug effort. The arrest last month Third, we agree that corruption in of our success in reducing the flow of of Mexico’s top anti-drug official on Mexican law enforcement is endemic. narcotics through the Caribbean and charges that he was on the payroll of That corruption is deeply rooted, as Florida—and our success, in coopera- one of Mexico’s largest drug cartels il- even Mexican President Zedillo ac- tion with the Government of Colombia, lustrates the nature and extent of this knowledged in his State-of-the-Nation in dismantling the major cartels in problem. Further, I am deeply con- address last fall. that country. The emergence of power- cerned about Mexico’s decision to re- Fourth, we all agree that Mexico ful cartels in Mexico is a manifestation place much of its national police force, must do much, much more in the war of the so-called balloon effect—if you which was removed due to widespread on drugs—as the White House acknowl- pressure the drug traffickers in one corruption, with the Mexican military, edged last month when the President area, they will move to another. Unfor- an organization with a very poor made his certification. tunately, the traffickers are nothing if record in regard to human rights of- All this leads to the fundamental not resilient. fenses. question now facing us: What can Con- The result, for both Mexico and the Mexico may well be a significant eco- gress do to help us achieve our objec- United States, is the expansion of orga- nomic partner with the United States, tive of reducing the flow of narcotics nized crime syndicates that have con- but the current level of illegal drugs from Mexico to the United States? siderable power and influence over not entering this Nation unabated from the I was disappointed that the President only the drug trade, but also Mexican south is simply unacceptable. Our eco- certified that Mexico had met the society itself. Combating this develop- nomic partnership with Mexico should standard of fully cooperating, or tak- ment will require a major commit- not include the flourishing drug trade ing adequate steps on its own. The sys- ment—of resources and political will— which currently uses Mexico as a pri- temic corruption in Mexico, combined by both our Government and the Mexi- mary transit point. While I believe the with several failures to follow through can Government. President should not have certified on commitments made, argued against The cooperation we have received Mexico, I support the Feinstein com- granting Mexico a full stamp of ap- from Mexico in the past year is far promise because, in light of the Admin- proval. Instead, I urged the President from perfect. We all acknowledge that. istration’s decision, it represents the to invoke the national waiver, because But we have made important progress only legitimate opportunity to hold I believed that our interests would be in the past few years, and this measure the Mexican Government accountable. better served by not isolating ourselves will be an important contribution to I will watch the actions of our south- from Mexico—which would surely spurring even greater cooperation be- ern neighbor very closely over the com- occur were we to fully decertify Mex- tween our two Governments. ing months in the sincere hope that the ico. For my part, I believe it could Mr. CHAFEE. Mr. President, I am Mexican Government will rededicate have long-lasting, damaging repercus- pleased that the Senators from Geor- itself to join the United States in our sions that we cannot now predict. At a gia, California, and Texas were able to effort to deal with illicit narcotics minimum, it would inhibit the politi- reach agreement with the administra- which infect both of our nations. cal space that President Zedillo has to tion on a resolution addressing certifi- Mr. BIDEN. Mr. President, I am press forward with his agenda of re- cation of Mexico’s cooperation in fight- pleased to join my colleagues on the form. ing illegal drugs. I have been strongly Foreign Relations Committee in bring- And if we destroy President Zedillo’s opposed to a straight or even qualified ing forward this compromise resolution political resolve to combat the drug decertification, which I believe would with regard to Mexico and the narcot- traffickers, we will have achieved noth- have undermined U.S. interests and ics issue. ing—and we may well lose the gains we been counterproductive in our efforts At the outset, I want to compliment have recently made. In other words, de- to address the scourge of illegal drug the Senators who have been deeply in- certification and exercising the full use in America. volved in the negotiations on this mat- penalties possible under decertification I am not here to argue that the situa- ter—the chairman of the committee, offers a cure that appears to be worse tion in Mexico today, with respect to the Senator from Georgia, the Senator than the disease. drug trafficking, is in any way accept- from California, and the Senator from I am pleased that we have come to a able or serves United States interests. Texas. bipartisan agreement—reached last The Senators from California, Georgia, They and many other Senators have night in negotiations with the adminis- and many others deserve commenda- a deep and abiding concern about the tration—on the best way forward. The tion for speaking out strongly about serious threat that drug trafficking in resolution recognizes the aspects of the the deteriorating condition surround- Mexico posts to both that country and issue that I have stated—specifically ing anti-drug efforts in Mexico, and the the United States. that both countries must take strong critical imperative that Mexico take Indeed, we all agree, I suspect, on action to combat the scourge of narcot- stronger action to stem the flow of ille- several issues. ics. In addition, the resolution lays out gal drugs across its border into the March 20, 1997 CONGRESSIONAL RECORD — SENATE S2593 United States. The statistics with cation law has compelled Mexico to do [From the Washington Post, March 3, 1997] which we have become familiar are more than it would have done were the A FINE LINE FOR MEXICO alarming and worsening: 10.9 percent of law not in place. President Zedillo, in President Clinton drew a fine line, but a children in the United States between particular, has taken a number of sensible one, between certifying Mexico and 12 and 17 years of age use illegal drugs; steps, including the arrest and firing of decertifying Columbia as a reliable partner Mexico is the source of 70 percent of of the United States in fighting drug traf- thousands of corrupt and criminal indi- ficking. The record of both Latin countries the marijuana shipped into the United viduals in Mexico. His Government has in stemming the dread trade is sad. But at States, and is a transit point for be- also eradicated an area the equivalent least the Mexican government is demon- tween 50 percent and 70 percent of the of 51⁄2 times the island of Manhattan. strably trying—it had the political courage cocaine shipped into our Nation; drug Finally, President Zedillo has declared to arrest its corrupted drug policy chief on arrests and drug seizures in Mexico are the drug cartels and the corruption as- the eve of the certification proceedings— only half of what they were just 4 to 5 sociated with them to be Mexico’s prin- while the president of Colombia is estab- lished as the creature of a drug cartel. Mr. years ago; there are 52 outstanding cipal national security threat. But United States extradition requests for Clinton decided that President Ernesto more needs to be done, and the Clinton Zedillo’s capacity to do better would be drug dealers in Mexico, although few, if administration has the appropriate strengthened by certification and that Presi- any, Mexican nationals have been ex- tools available at its disposal to make dent Ernesto Samper was beyond redemp- tradited to the United States on drug further progress on achieving some tion. It is an arguable decision, but it fits charges; drug-related corruption has very important goals. The amendment the exigencies of the American certification reached the highest levels of the Mexi- before us today not only maintains the law, and it also fits the facts. can Government, with the recent ar- By now it is accepted in the White House administration’s ability to enhance its and elsewhere in the administration that the rest of Mexico’s highest ranking anti- cooperation with Mexico, but provides American certification law is a blunt instru- drug official. for needed accountability to Congress ment poorly designed for the delicate politi- Mr. President, I could go on, but the and the American people. cal work of drug enforcement. In a hemi- fact is clear: the Mexican Government, sphere where the premise of effective diplo- in partnership with the United States, On February 28, President Clinton macy is to respect the sovereign equality of must do a better job of stopping illegal certified to Congress that the Govern- member states, this law brings American drug production and trafficking. The 10 ment of Mexico was fully cooperating power to bear on supply and transit states billion dollars’ worth of narcotics that with the United States in antidrug ef- without either consulting them or providing is illegally smuggled from Mexico into forts. The question before the Senate them a reciprocal opportunity to pass judg- during the past several weeks is should ment on American policy. A nationalistic re- the United States each year must be action is the inevitable result. Still it is the sharply reduced, or even better, elimi- we overrule the President’s decision and decertify Mexico? I have argued law, and the president is bound to enforce it. nated. Secretary of State Madeline Albright, in an- But let’s be clear about one thing: that, despite the deteriorating situa- nouncing the administration’s decision on Solely addressing the situation in Mex- tion in Mexico, congressional decerti- Friday, acknowledge the obligation of the ico—the ‘‘supply side’’ of the drug fication is the wrong approach, and United States to press ahead with its own problem—is incomplete and insuffi- would actually be counterproductive in strategy to reduce demand—a strategy it had cient. Precious little time in the de- solving these problems. I am gratified introduced, to something less than full pub- bate on decertification has been de- that the authors of the original decer- lic attention, earlier in the week. The de- tification resolution have made signifi- mand equation remains the true front line of voted to addressing the demand side of the war on drugs. this problem, that is, the tragic, insa- cant compromises with the administra- Mexico was unconditionally certified as an tiable appetite for illegal drugs in the tion so that such a vote has been avoid- American drug-fighting partner. So it is not United States. If there were no demand ed. exposed either to the political rebuke or to for illegal drugs here at home, the drug Decertification would have been a the economic penalties that follow from kingpins and cartel chiefs that have slap in the face to our diplomats, who being de-certified. But Mexico is far from caused so much misery, would be un- being in the clear. Mrs. Albright publicly have labored, often painstakingly, to listed the particular policy areas (capture employed. A Washington Post editorial prod the Mexicans to help us crack and extradition of kingpins, money launder- earlier this month makes this point down on illicit drug trafficking. Not ing and so on) in which the United States ex- clear, stating ‘‘the demand equation re- only would it upset these delicate dip- pects to see Mexican progress, and which mains the true frontline of the war on lomatic efforts, a straight decertifica- she, the attorney general and the anti-drug drugs.’’ I am pleased that the language tion would incite the well-known na- chief will monitor. agreed to in these negotiations at least tionalistic political forces in Mexico, A considerable number of legislators have in part addresses this critical aspect of indicated that they will attempt to reverse making it even more difficult for Presi- the administration’s certification of Mexico. our fight against drugs. We would be dent Zedillo to further cooperate with They should ask themselves how such a ges- remiss in not putting today’s debate in us in achieving the goals all of us ture, satisfying as it might be for the mo- its proper perspective. share. If it’s difficult to work with ment, actually would serve their cause, and Nevertheless, Congress is right to Mexico now, I shudder to think what what effect it might have in other areas of speak out in an appropriate manner on would have happened if Congress had policy—trade, immigration, environment— the deterioration of antidrug efforts in overruled the administration by pass- where good relations with Mexico are vital Mexico, and the need to take concrete ing a straight or even qualified decerti- to American interests. measures to stem this tide. I would fication. Mr. CHAFEE. Mr. President, the argue that much—not enough, but amendment before us today represents much—has already been done: the drug I prefer instead to entrust our dip- a far more prudent approach to this certification law passed in 1986, while lomats with the task of negotiating ex- sensitive issue. It outlines in detail the imperfect, has produced a framework panded antidrug efforts with the Mexi- serious problems involved in Mexico that can produce real results. Nations cans, rather than hoping that decerti- today, and makes it clear that further that receive United States and inter- fication, even if sanctions were waived, progress is needed. However, instead of national assistance are each year held would compel action on their part. As simply clubbing Mexico and walking to a very large measure of accountabil- the March 3 Washington Post editorial away, this amendment sets very spe- ity for their cooperation with the Unit- states, decertification is ‘‘a blunt in- cific benchmarks for improved anti- ed States in combating drugs. The strument poorly designed for the deli- drug efforts by Mexico, and requires a specter of losing most United States cate political work of drug enforce- progress report from the administra- foreign aid and having IMF and World ment. . . . A nationalistic reaction is tion by September 1. Among other Bank loans vetoed is certainly a strong the inevitable result.’’ I ask unanimous things, this report must describe the incentive for governments such as Mex- consent that this editorial be printed extent to which our two nations have ECORD at this time. ico to cooperate with us and take need- in the R made significant and demonstrable ed action. There being no objection, the edi- progress on dismantling drug cartels, Despite all of the problems in Mex- torial was ordered to be printed in the improving law enforcement relation- ico, there is evidence that the certifi- RECORD, as follows: ships, and increasing cooperation on S2594 CONGRESSIONAL RECORD — SENATE March 20, 1997 extradition of Mexican drug dealers petrated by their own agents, unless we creases in drug seizures and crop eradi- wanted in the United States. The curb the demand in our own country, cations. That includes a 15-percent in- amendment makes it entirely clear drug abuse will remain a national cri- crease in marijuana seizures, a 6.3-per- both to this administration and to sis. cent increase in cocaine seizures, and Mexico where the failings have been In the last 10 years, the United an almost 80-percent increase in heroin and what our priorities are. However, States has spent $103 billion on pro- seizures. under this compromise, nationalist grams here and abroad against drugs. In 1996, Mexican authorities reported forces will not be incited in Mexico, Yet the DEA reports that the amount an increase of nearly 14 percent in the and our diplomatic efforts can continue of cocaine entering the country, as well number of people arrested on drug traf- smoothly. as the rates of heroin and cocaine ficking and related offenses, including I urge all of my colleagues to support abuse among Americans, have re- 28 high-level members of drug traffick- this amendment. Thank you. mained steady. Again, the evidence is ing organizations. This year, as has Mr. LEAHY. Mr. President, I think clear. We will not solve this problem been widely reported, Mexican authori- the process that has culminated in this until we aggressively deal with the ties arrested General Jesus Gutierrez amendment has shown that however causes of drug use and addiction in our Rebollo—who had been in charge of the well-intentioned, the drug certification own country. National Institute to Combat Drugs— process is poorly conceived. Mexico is Mr. President, I want to thank Sen- for supporting the activities of the clearly not cooperating in the ators DODD, FEINSTEIN, COVERDELL, Juarez cartel. counternarcotics effort as it should. KERRY, MCCAIN, and HUTCHISON who We didn’t catch him, Mr. President. How can it, when practically the high- have worked very hard to reach a com- The Mexicans themselves did. est ranking Mexican officials respon- promise on this difficult issue. Should we expect further improve- sible for dealing with the problem are Mr. DEWINE. Mr. President, I rise ments in law enforcement operations? profiting from the drug trade them- today in support of the Mexico resolu- Absolutely. We need to monitor the selves? tion. full enforcement of the law—in other But decertifying Mexico would cause I think it offers a constructive solu- words, keep close watch on how many more problems than it would solve, by tion to the bilateral problem we are of these arrests lead to prosecution and creating resentment with the very peo- facing. It gives the President of the jail time. In 1996, the Mexican Congress passed ple with whom we are seeking to build United States an opportunity to dis- tough laws to address the problems of stronger relations. cuss with President Zedillo of Mexico money laundering, chemical diversion, I will vote for the amendment, but I the various concerns many of us have and organized crime. Now we should in- want to stress that I am very dis- about the progress our two countries sist on full enforcement of those new appointed that the administration has are making in the drug war. And it laws. not acted more forcefully and visibly does so without provoking unnecessary to encourage the Mexican Government This year, we have seen improved co- and counterproductive tensions be- operation in the areas of money laun- to deal effectively with the corruption tween our countries. dering and extradition. Mexico and the and human rights abuses committed by The problems in Mexico’s drug en- United States established a high level Mexico’s police and armed forces. We forcement are well known. You can contact group on narcotics control to should send a strong signal to Mexico hardly open a newspaper without learn- explore joint solutions to the shared that this will no longer be ignored. I ing about even more instances of cor- drug threat and to coordinate bilateral would have favored a stronger resolu- ruption and incompetence at all levels efforts. We should now expect this in- tion than this, as I know many others of government and law enforcement. creased cooperation to yield clear, would have, including the resolution’s It’s a sad chronicle that makes for positive results. sponsor, but I hope the Mexican Gov- truly depressing reading. It’s under- But one thing is clear: Both Govern- ernment appreciates the seriousness standable why so many concerned ments need to dedicate greater re- with which we regard these concerns. Members of Congress are raising seri- sources to stop trafficking along our The reports of rampant corruption ous questions about the effectiveness of border. Senator HUTCHISON informed among Mexican military and law en- Mexico’s antidrug effort. the Foreign Relations Committee last forcement officials, and the human But it’s important that we in Con- week of the enormous difficulties faced rights abuses they have been involved gress stay focused on doing what’s in by her fellow Texans along the border. in, are alarming, as are reports of our own national interest—not on sym- Specifically, ranchers with property growing paramilitary activity in Mex- bolic gestures that fail to accomplish along the border are being bribed, co- ico. I am concerned that, with United that interest. erced, or having their lives threatened States support, Mexico is blurring the The problems we face are real. by traffickers seeking to use private line between its police and armed There are 12.8 million Americans who property as a back door into our Na- forces. I am also concerned that our use illegal drugs, including 1.5 million tion. These ranchers have been told by ability to monitor the equipment we cocaine users and 600,000 heroin ad- Federal officials that it would be years provide to Mexico is inadequate. I have dicts. before enough new border agents could urged the administration to be very More than 1 out of every 10 children be assigned to better secure their prop- specific in its agreements for the trans- between 12 and 17 years of age use ille- erty. fer of equipment to the Mexican police gal drugs. One out of every four claims Listen to some of the stories these or armed forces, so there is no ambigu- to have been offered illegal drugs in ranchers tell—stories about the gun- ity that it is to be used for the past year. fights they have fought with drug counternarcotics activities and not The American people recognize that gangs, and having to carry guns when- counterinsurgency activities. Those these are important problems—and ever they leave the house. It sounds agreements should also specify that if that we have to take serious action. like a John Ford movie about the Old members of police or military units But let me point out, Mr. President, West. that receive our assistance are impli- that there are many, many people in That has got to change. cated in abuses, they will be imme- Mexico who support our goals. To suc- Mr. President, let me conclude by diately removed and steps taken to ceed, we need that support. making a broader point about Mexico’s bring them to justice. We have done Without their support, it would not future. In my view, with this resolu- this recently in agreements with Co- have been possible for Mexico to make tion, we create the opportunity for a lombian officials, and there is no rea- even today’s limited progress against new round of cooperation between the son why it could not be done in Mexico. the drug traffickers. United States and Mexico. Mexico is The United States and Mexico must That progress is limited, but it is not only a neighbor with whom we work together to combat this problem. nonetheless real. share a 2,000-mile border, it is also this But while I and others expect far more Over the last year, in spite of the country’s third largest trading partner. from the Mexican Government to deal well-known cases of corruption, the If we are to be successful in our anti- with corruption and the violence per- Mexican Government has posted in- drug efforts, Mexico must be our ally. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2595 Yes, the Government of Mexico needs with the specific conditions stipulated caine, heroin, methamphetamines, and to do more within its borders, and with by the President, full certification marijuana flowing into the United us, to combat drug trafficking. The would be granted. However, if these States through Mexico. This is hitting real question before us is how can we conditions are not met, the United every urban and rural community in improve on that partnership. States would act firmly by cutting off the United States. The protection of We all know what the problems are. aid beginning on October 1 of this year. our most vulnerable possession, our We all agree that they are very, very I am pleased that the compromise children is the strongest argument for serious. But we should also recognize the Senate is considering today reflects the passage of this legislation. that this is a crucial moment in Mexi- to some extent the main components of Finally, we should not be saying to co’s history—and they need our support my bill. The pending resolution recog- the American people that this law is if they are going to continue in the nizes that Mexico has taken insuffi- only good if we can also pass the chem- right direction. cient steps to stop drug trafficking and ical weapons convention treaty. This is What the Mexican people are trying it stipulates a 6-month period of time not to suggest my opposition or sup- to do is make the transition from a in which the President will review port for the treaty, but I believe that one-party state, in which corruption Mexico’s progress in this area. The res- each issue should be kept separate so and excessive government mandates olution also requires the President to as to ensure that both are considered stifle the hope for widespread prosper- submit a report to Congress by Sep- on their own merits. ity, to a multiparty state that creates tember 1 on Mexico’s progress. Thus, the most important issue for jobs and rewards job creators. However, the resolution we consider this Congress today—the only issue for President Zedillo appears to be try- today does not nearly go far enough. Congress today—is to move forward on ing to free up Mexican society and re- Its findings regarding Mexico are not this resolution. form the political process—changes specific; it does not provide specific Mr. KYL. Mr. President, today we that will make Mexico a more stable steps Mexico must take to continue re- will vote on one of the most difficult neighbor for the United States. He is ceiving aid; and it does not amend the issues facing our Nation: the illegal opposed by powerful elements in his existing law to improve the certifi- drug trade in Mexico and the United ruling party, and make no mistake, the cation process in the future, as my bill States. The resolution we will vote on outcome is still in doubt. does. requires the President to report by Now more than ever, the people of I am voting in favor of the pending September 1, 1997, on the efforts of Mexico need to know that we want resolution today because it is the only Mexico and the United States to them to be our partners. Our national legislation the Senate will consider achieve results in combating the pro- interest is served by a prosperous and this week to address the certification duction of and trafficking in illicit democratic Mexico—a Mexico that of- of Mexico. Nevertheless, I urge my col- drugs. I support the resolution, and am fers hope and opportunity for its citi- leagues to support S. 457 to improve hopeful that the report will show sig- zens. the certification process for the future. nificant progress by Mexico and the The drug war is one area where we I thank the Chair and I yield the United States in fighting the war on il- must continue to work together. We floor. legal drugs. should redouble our efforts to look for Mr. BURNS. Mr. President, I rise As my colleagues have discussed constructive solutions—to reduce traf- today to express my support for the today, we cannot win the war on drugs ficking, to crack down on money laun- joint resolution that the majority lead- unless Mexico achieves significant dering, and most important of all, to ers, my fellow Republican and Demo- progress in the areas of drug traffick- reduce the demand for drugs. cratic colleagues, and the administra- ing, extradition, corruption among Our countries must be united in a tion has concluded with relation to cer- Mexican law enforcement and other of- very important partnership. In the tification of Mexico. Even though I do ficials, interdiction networks, imple- anti-drug effort, as in so many other not think that this resolution goes far mentation of laws and regulations to areas, we have a major common chal- enough, I realize that this agreement is combat money laundering, eradication lenge, and we can only prevail if we a bipartisan effort that should be en- of crops destined for illegal drug use in face it together. acted for the good of the Nation. the United States, and the strengthen- Mr. President, I yield the floor. Frankly, I am disappointed that we ing of bilateral border control. Mr. CAMPBELL. Mr. President, this consider a nation that supports drug Border control must also be a top pri- month both Houses of Congress have cartels and warlords worthy of pro- ority of the United States; and while been engaged in a difficult debate over grams funded by the hard earned dol- my colleagues, including Senators whether to uphold or overturn the lars of American tapayers. However, COVERDELL, FEINSTEIN, and HUTCHISON, President’s certification of Mexico as this resolution will make certain de- have done an excellent job detailing fully cooperating with the United mands of Mexico and the administra- what must be done to further our and States to fight drug trafficking. tion to ensure that progress is made in Mexico’s efforts to fight illegal drugs, I This debate has had a growing nega- Mexico. This resolution does not en- want to concentrate for a moment on tive impact on U.S. relations with an tirely burden Mexico with this respon- the need for additional United States important country and trading partner sibility; it will also create a partner- Border Patrol agents. along our southern border. The debate ship. This partnership will try to First, I am pleased that one of three also has shown how the certification strengthen bilateral border enforce- things we are asking the President to process under the Foreign Assistance ment, create a permanent working re- do by September 1 is detail the Act of 1961 is not as effective as Con- lationship between law enforcement progress made in the deployment of gress originally intended it to be. agencies of both nations and actually 1,000 additional U.S. Border Patrol Under current law, notice provided to assist Mexico to identify, remove and agents in 1997 as required by my the target country is often too late and prosecute corrupt officials at all levels amendment to the Immigration Act of not specific enough to fix the problems. of Government. By creating this part- 1996. Moreover, access to more timely and nership, Mexico and the United States Without an effectively controlled specific information would assist Con- will closely study this situation and border, the United States cannot even gress in exercising its legislative and actually try to ensure that both of our begin to win the war on drugs. I was oversight responsibilities. efforts are being met. With such lim- disturbed that the President’s fiscal Therefore, on Tuesday of this week, I ited resources, our assistance to Mex- year 1997 budget to Congress requested introduced S. 457, a bill to provide a ico should make a difference. the addition of only 500 Border Patrol new option to the President to place Mr. President, we must work toward agents, instead of the 1,000 required in countries such as Mexico on a proba- ensuring that Mexico halts these de- the 1986 Act. Senators MCCAIN, GRAMM, tionary status of 7 months, during the structive practices for our most pre- HUTCHISON, and DOMENICI recently period of March 1 through September cious national asset, our children. Over joined me in sending a letter to the 30. If by the end of this probationary the past few years, there has been a President, urging him to comply with period, the target country complies marked increase in the levels of co- the law, revise his budget request, and S2596 CONGRESSIONAL RECORD — SENATE March 20, 1997 deploy 1,000 additional agents in 1997. There is ample evidence that Mexico ing the additional personnel needed to Without an adequate contingent of cus- is not doing enough to combat this get the job done. toms and border agents, the problem of problem. Let me cite a few examples. This resolution is not, and must not individuals smuggling drugs and illegal More than half the cocaine coming be, the end of this process. The 1998 immigrants across our border will only into the United States is smuggled drug certification process will give worsen. across the United States-Mexican bor- Congress another chance to express its Border Patrol agents are on the front der. support or disapproval of the progress lines every day, working hard to seal Major quantities of heroin, mari- we have made with Mexico. off our borders from increasing levels juana and methamphetamines used in The resolution is not perfect, but it of illegal immigration and the drug the United States are produced in Mex- takes us in the right direction. trade. The agents that Congress has ico. Let there be no mistake: the United added over the past few years have Drugs are being moved illegally States cannot tolerate anything less made a difference, but the need for ad- across the United States-Mexico border than an all-out effort to control illegal ditional agents keeps growing. Drug by major criminal organizations oper- drugs. Mexico must demonstrate a dra- and illegal alien smuggling continues ating on both sides of the border. matic increase in its cooperation in the to grow—illegal immigrants are ex- And, of great concern to the United effort to stop the flow of drugs across pected to increase by 275,000 per year States, there is evidence of significant the United States-Mexico border. The over the next several years—and the ef- corruption affecting the Mexican Gov- United States obligation is to insist on fects of illegal drugs, particularly ernment and undermining its anti-drug Mexico’s cooperation and to make it methamphetamine, have been dev- commitments. The most dramatic re- clear that we will do everything we can astating for the citizens of Arizona and cent evidence of this fact was Mexico’s to support their effort. We will be the rest of the Nation. February 1997 arrest of its drug czar, closely monitoring progress in this Just a few weeks ago, a study on drug General Gutierrez. area. Without it, we will face an intol- This resolution helps us move beyond use in America showed a large increase erable threat to our children and a se- the annual certification debate in in youth drug use over the last 5 years. vere degradation of our relationship achieving concrete action in a con- Arizona fared poorly, with much higher with Mexico. structive way. Passage of this resolu- drug use than the national average, in- I suggest the absence of a quorum. tion will strengthen the President’s cluding a startling statistic that our The PRESIDING OFFICER. The hand in his upcoming April trip to sixth graders are twice as likely to clerk will call the roll. Mexico. It puts the United States in a have tried methamphetamine than The assistant legislative clerk pro- position to get the greatest possible co- high school seniors nationwide. While ceeded to call. operation from the Mexicans in fight- we continue to talk about the need to Mr. DODD. Mr. President, I ask unan- ing the war on drugs. And, most impor- fight illegal drugs, the precursor imous consent that the order for the tantly, it puts the Mexicans on notice chemicals that make methamphet- quorum call be rescinded. that we will expect such cooperation. amine are being smuggled into Arizona The PRESIDING OFFICER. Without This resolution clearly expresses in increasing volume. It must stop. objection, it is so ordered. Congress’ view that the Mexican Gov- Mr. DODD. How much time remains? As the resolution we are voting on ernment must do more and that the The PRESIDING OFFICER. The lead- today says, the abuse of illicit drugs United States needs a plan to push that er has 50 minutes. results in at least 14,000 deaths per year effort. The resolution lays out the posi- Mr. DODD. Mr. President, I yield my- in the United States, and ‘‘exacts eco- tive steps they must take by requiring self 15 minutes of leader’s time, and I nomic costs in excess of $67 billion per the President to submit a report to will try to use less than that time. year to the American people.’’ Congress by September 1 of this year Let me begin these remarks by Although many of us would like to laying out progress with Mexico in the thanking the sponsors of this resolu- see more specific actions that the following important areas: Investiga- tion that is pending before the Senate. Mexican government should take to tion and dismantling of drug cartels, I want to especially thank our col- show serious improvement in the war development and strengthening of the league from Georgia, Senator against illicit drugs, it is my hope that working relationship between the Unit- COVERDELL, with whom I have the Mexico will be able to show significant ed States and Mexican law enforce- pleasure of serving with as ranking accomplishments in the areas outlined ment officials; strengthening of bilat- member of the Subcommittee on West- in the resolution. Likewise, the admin- eral border enforcement; denial of safe ern Hemisphere, Peace Corps, Narcot- istration must be able to show specific, havens for those responsible for drug ics and Terrorism of the Committee on detailed action in the war against trafficking, including improvement of Foreign Relations. He played a very drugs by, among other things, deploy- cooperation on extradition matters be- major role in shaping the compromise ing 1,000 additional agents in 1997. tween the United States and Mexico; that is now before us. I would mention Mr. President, not rhetoric, but ac- simplification of evidentiary require- as well our colleagues, DIANNE FEIN- tions. That is what we must demand of ments for narcotics and other related STEIN from California, KAY BAILEY Mexico and that is what we must de- crimes; full implementation of effec- HUTCHISON from Texas, JOHN MCCAIN of mand of ourselves. We must work dili- tive laws and regulations to combat Arizona, and others who worked tire- gently to eradicate the scourge of ille- money laundering; eradication of crops lessly in helping put this resolution to- gal drugs that has taken so many of intended for illicit drug use; establish- gether. our citizens, young and old alike, hos- ment of screening process to assess the I commend them for their work in tage. This compromise resolution suitability of all law enforcement per- putting this resolution together. I am should be passed by the U.S. Senate. sonnel involved in the fight against or- happy to have been a part of it. Even Mr. DASCHLE. Mr. President, I join ganized crime; and the support given to though I do not agree with every word with my colleagues today in strongly Mexico in its efforts to identify and re- in it, on balance I believe it is a very endorsing this bipartisan resolution, move corrupt officials throughout the constructive approach to a very dif- which represents an important step in government, including law enforce- ficult problem. I am sure that all of us the fight to curb the flow of drugs from ment and military officials. who worked to forge this compromise Mexico. The resolution also directs that the would have liked to see things added or This resolution strongly registers report include progress on important subtracted depending upon our points Congress’ unhappiness with the current domestic goals, including the imple- of view. But, that is the nature of how situation in Mexico. It includes a mentation of antidrug education ef- a resolution like this is assembled. clause stating that it is the sense of forts in the United States focusing on I think the pending amendment cap- Congress that ‘‘there has been ineffec- reducing drug use among young people; tures the views of this body fairly ac- tive and insufficient progress in halt- the implementation of a comprehen- curately, and I suspect, the views of ing the production in and transit sive international drug interdiction the American people whom we rep- through Mexico of illegal drugs.’’ and enforcement strategy; and provid- resent. Yes, there is a sense of outrage, March 20, 1997 CONGRESSIONAL RECORD — SENATE S2597 fear, worry, and frustration over the up on our streets. But if we are going governments, particularly those in our ongoing threat posed by the Mexican to have an intelligent and thoughtful own hemisphere. drug cartels. We have paid a very discussion about drug abuse and illegal There are good people in Mexico who heavy price for their relentless efforts drug production, and the problems want to see this problem stopped as to ply their trade whereever they can these create, then we need to spend at well. get away with it. The human costs of least as much time in analyzing what In fact, I made note the other day— drug use are real and mounting. This we in the United States are doing or it is worth repeating here today—that scourge that still ravages this country are not doing in our own country that when President Zedillo of Mexico came called drugs has caused great damage creates the market for these products forward and took some significant to millions of people in this country as we do pointing the accusing finger steps in dealing with the people in his and elsewhere. at those who are involved on the sup- own country who had been corrupted The pending amendment is an at- ply side. by this process, his favorability rating tempt to express to our neighbor and Simply put, if we did not have a do- rose more than 10 percent in Mexican ally to the south of us, Mexico, where mestic consumption problem we would public opinion polls. It isn’t just Amer- more than 50 percent of all the drugs not have the magnitude of the problem ican citizens who are deeply troubled that come to this country are produced of the supply side that exists in Mexico by the rising cost of illegal substances or transit through, that we would like today. With enough resources we can and drugs. The people of Mexico, the to see more cooperation in our efforts probably deal with Mexico. Or we can average citizen in the street, is worried to eliminate drugs from both our coun- deal with Peru, and Colombia. But about this. The mother in Mexico City tries. what we have learned historically is is just as worried about her child be- Mr. President, the economic costs to that as we begin to put pressure on coming hooked on these substances as the American people from the illegal narcotraffickers in one country, they a mother in Hartford, or a mother in use of narcotics is in excess $67 billion simply relocate to another. This will Atlanta, or a mother in Los Angeles. annually. Estimates are that nearly 13 continue to be the case so long as our We need to be sensitive to that because million Americans regularly use illegal domestic consumption rates continue they have to help us as well in trying substances. The revenues generated by to go up. The producing countries, the to build a base of public support in the drug kingpins totals more than $49 transit countries, the money launder- Mexico that will encourage Mexican billion annually—a rather remarkable ing countries, are only temporary loca- authorities to get tough on statistic. tions in the transnational inter- narcotraffickers and corrupt govern- The Mexican drug cartels allocate national drug trafficking business. ment officials. more than $6 billion of ill gotten gains So the first line of defense has to be My colleague from Georgia may have for the sale of drugs in order to bribe, a far more aggressive effort here at addressed this already. I will just state or otherwise corrupt Mexican law en- home to try to educate young people it briefly. I think our colleague from forcement and judicial authorities in- against the dangers and the problems Georgia has a very sound idea in terms volved in counternarcotics programs. associated with illegal drug use. We of how we might look at this problem We consume 50 percent of all the ille- also need better treatment programs so a bit differently. He has proposed that gal drugs produced in the world. We that those who are hooked on drugs all countries that are involved in the represent 5 percent of the world’s popu- who want to change will have some- various aspects of the drug trade, lation. So clearly the United States is place to go to for help in breaking whatever their level of involvement, at the heart of the international drug these incredibly debilitating habits. sit down and start figuring out how we problem. More and more, this is not Yet today, there is a long waiting list can work together to solve this prob- solely an American problem. Drug con- at our drug treatment centers—a list of lem. It isn’t going to be solved in one sumption is beginning to ravage coun- addicts wanting treatment that is cur- year or two. It isn’t going to be solved tries which in the past never had a rently unavailable to many of them. at all unless we come up with a com- mon plan—a plan developed by co- problem with illegal substances and The waiting period to get into treat- equals trying to deal with this issue. drugs. But today that is changing, and ment can be as long as 4 years in some That is the only way to get the kind of even in producing countries—transit instances. Having to wait months and cooperation that is absolutely critical countries—nations where money laun- months for treatment certainly doesn’t if we are going to be successful in deal- dering goes on, consumption and the contribute to our efforts to reduce the ing with our allies and others who are ravages of consumption are beginning problem of consumption. I hope as we attempt to seriously producing these products. to wreak havoc in these nations as I see my colleague. I will be glad to come to grips with the international well. yield to him because I raised his name drug threat to the United States —and I cite just of few statistics. There are and mentioned his program. clearly many more. I know my col- it is not going to disappear overnight— Mr. COVERDELL. Mr. President, league from California provided some that we focus a lot of our attention on first, I want to acknowledge the almost other statistics in the course of her re- reducing domestic drug abuse. tireless support of the Senator from marks concerning, for example, the Just as I believe we need to place Connecticut in behalf of the concept. amount of product coming into this more emphasis on the demand side, I Just to take a second, the resolution country. think we need a serious rethinking of before this body does for the first time Let me say that I think it is per- how we approach the supply side of the enumerate the concept and calls on the fectly appropriate and proper that we equation. The current approach as em- administration to air it during the up- raise the issue of the effectiveness of bodied in the annual certification proc- coming meetings in Mexico. I just our allies and neighbors’ counter-nar- ess is not working. In 1986 when Con- wanted to mention that. cotics efforts. But we should admit as gress enacted the drug certification Mr. DODD. I thank my colleague for well that we could do a better job here law there was a great deal of frustra- mentioning that. at home in helping to wage an all out tion that neither the United States nor I strongly urge the administration effort against illegal drug use. We need other countries were doing enough to and others to take a strong, hard look to take a good hard look in the mirror fight the drug war. So Congress, on a at this and come forward with ideas so as well. bipartisan basis, set up a certification we can get off the certification track I would argue very strenuously that process in order to bring attention to that brings us back here year in and were it not for the consumption in this the issue and try to do something year out picking winners and losers country, were it not for our consump- about it. I strongly suggest to my col- and deciding whether or not they are tion problems, that we would have far leagues—and I realize that I may be in going to be on the good list, or the bad less of a problem with nations like the minority on this issue—that we list, or the marginally good list. Mexico and others. I don’t say that is ought to scrap this certification proc- Whether they are going to be certified, an excuse to let those nations off the ess and try to come up with some alter- decertified, or granted a national inter- hook who produce, process, and native idea that would allow us to de- est waiver. Debating that kind of ques- tranship these illegal drugs that wind velop a working partnership with other tion and getting votes of 55 to 45 or 65 S2598 CONGRESSIONAL RECORD — SENATE March 20, 1997 to 30 for the various legislative initia- Mr. BROWNBACK. I thank the Chair. 1991 to 1993. Drug arrests were up for tives surrounding certification doesn’t I thank my good colleague from Geor- 1995. However, they were considerably get us anywhere. gia for yielding time to me. I would less than arrests in 1992 to 1993. Mexico We have significant evidence that de- also like to thank and recognize and refuses to allow the United States certification has not fostered better co- compliment Senator COVERDELL, Sen- Navy ships patrolling for drug smug- operation from other countries. For ator FEINSTEIN, and others who have glers to put into Mexican ports to re- the last 11 years we have decertified a worked tirelessly on this effort to try fuel without 30 days’ notice. Mexico handful of countries year in and year to get more help in stopping all the has enacted money laundering legisla- out. None of these countries counter drug trafficking through Mexico. I tion, but so far the legislation has not narcotics efforts have improved as a re- know they have worked very hard to been implemented, and Mexico is 12 sult of that action. try to craft a vehicle and language to months late in producing necessary The simple question that must be be able to get at this issue, which we banking regulations. asked about the current procedure is if all want to do, which is reduce the drug The record on this issue is clear, and it is not working should it continue? trafficking, reduce the amount of drug sadly so. It is not credible to claim Shouldn’t we consider an alternative flow from and through Mexico to the that Mexico has fully cooperated with that might really be effective in United States. I applaud their efforts the United States in fighting drug traf- achieving the cooperation that is nec- and their tireless work in getting this ficking. On the contrary, the major essary to reduce the ravages of this done. Mexico-based drug cartels have risen to problem? However, in looking at the language being some of the most powerful traf- If we don’t try something new, we of this bill, I must rise in opposition to ficking groups in the world. will be sitting here, I promise you, certifying Mexico as complying with I think we absolutely have to send a with more charts next year and more our drug-trafficking efforts, and this is strong signal to the administration and charts the year after that, and more not, in my estimation, as I consider to our neighbors to the south that the charts the year after that, and we can this vote and weigh it carefully, about certification process is not just a beat our chests, pound the table, and bashing Mexico. This is not about bash- rubberstamp exercise and that we re- scream at neighbors and allies. But my ing the administration. This is about quire action on this issue. I say again fear is that it doesn’t get any better. complying with the law and interpreta- that I arrive at this conclusion sadly So, when your idea is not working tion of that law and a judgment that because I think everybody in this body very well, you ought to think anew. each of us must make. The fact is sec- would much rather be able to easily What the Senator from Georgia has tion 490 of the Foreign Assistance Act certify, and I do applaud the efforts of done in my view is think anew on this. requires that the President certify that Senator COVERDELL, Senator FEIN- I commend him for it. I don’t think he Mexico has cooperated fully with the STEIN, Senator HUTCHISON, and many thinks nor do I think it is a perfect United States or taken adequate steps others in working on this. But we are idea. But I think it has the seeds of on its own to fight drug trafficking. just not there and I cannot support the success written into it. If we give it a That is the law, and that is the inter- certification. chance and try to make it work, then I pretation and that is what each of us I thank the Chair. I thank the Sen- think it can produce the results that have to interpret, whether this is done: ator for yielding. we all are looking for. Has Mexico cooperated fully with the Mrs. FEINSTEIN addressed the Mr. President, again I commend the United States or taken adequate steps Chair. authors of this amendment. I think on its own? Sadly, I come to the con- The PRESIDING OFFICER. The Sen- they have expressed the views of all of clusion the facts are that Mexico has ator from California. us more or less. We are all blessed to not cooperated fully with the United Mrs. FEINSTEIN. Mr. President, the have General McCaffrey heading up States and the steps they have taken junior Senator from Massachusetts has narcotics efforts. He has done an excel- to combat the drug trade are far from requested time. I will yield 71⁄2 minutes lent job and he enjoys universal sup- adequate. I am sad in taking that posi- of my time to him, and I believe the port for his efforts. tion and in looking at it this way, but Senator from Georgia will yield time. I urge the adoption of this amend- I can arrive at no other conclusion. Mr. COVERDELL. If the Senator ment. But, more importantly, Mr. There was a slight increase in 1996 in from California will withhold this al- President, I urge that we find a dif- both drug seizures and arrests of drug lotment of time for one moment while ferent way in the coming weeks and traffickers. But sadly, again, this is be- I deal with a unanimous consent that months to address this issue before we cause the numbers for 1995 were so low. both sides agreed to in trying to facili- find ourselves back again engaged in an Their record over the 1992 to 1993 pe- tate a number of our Members who are exercise that isn’t achieving the kind riod shows that they can do much bet- trying to visit the White House and of results that many of us would like ter; they were much, much higher. So some others who are trying to catch to see accomplished. the Mexican Government, working aircraft. I will do this and then we With that, Mr. President, I urge more in cooperation with us, can do move to Senator KERRY from Massa- adoption of the resolution and yield much better. In fact, Mexico’s current chusetts under the circumstances the the floor. record clearly indicates that they Senator has just outlined. Mr. COVERDELL addressed the should not be certified for antidrug co- I ask unanimous consent, Mr. Presi- Chair. operation. U.S. drug agents report that dent, that the vote scheduled to occur The PRESIDING OFFICER. The the situation on the border has never at 4:45 today now occur at 3 p.m., and Chair recognizes the Senator from been worse. further, the following Senators to Georgia. I applaud Senator COVERDELL and speak for up to the designated time: Mr. COVERDELL. I thank my col- Senator FEINSTEIN for laying out in de- Senator KERRY for 15 minutes, Senator league from Connecticut for his re- tail the facts that are before us. I HUTCHISON for 10, Senator FEINSTEIN marks and again, as I have in the past, would like to reiterate some of them for 5, Senator BOXER for 5 minutes, for his attention to this concept that again if I could. Senator COVERDELL for 5 minutes, and we have been discussing for now 2 Mexico continues to be a major tran- any statements relating to the issue years, and hopefully this resolution sit point for cocaine entering the Unit- provided for in the consent remain in will bring it to a new level of discus- ed States from South America. Fifty to order prior to the close of business sion. I apologize for interrupting, but I 70 percent of the cocaine entering the today. did want to note that we had embraced United States transits Mexico, and The PRESIDING OFFICER. Without some of this concept in the resolution. Mexico is a supplier of 20 to 30 percent objection, it is so ordered. Now, Mr. President, I yield up to 5 of the heroin to the United States mar- The Chair recognizes the Senator minutes of my time to the Senator ket and up to 80 percent of the foreign- from Massachusetts. from Kansas. grown marijuana. Seizures of cocaine Mr. KERRY. Mr. President, I thank The PRESIDING OFFICER. The Sen- were about the same as the last 2 years the Chair and I thank the Senator from ator from Kansas. but about half the level of seizures in Georgia for his intercession and his March 20, 1997 CONGRESSIONAL RECORD — SENATE S2599 help, and I particularly want to pay drugs. Only 55 percent of our children lice officers and technical personnel for tribute to the Senator from California, get education about drugs. The fact is corruption. Yet not one of these has [Mrs. FEINSTEIN], who has been press- that from 1956 until 1994, we enacted 43 been successfully prosecuted. When ing so hard on this absolutely vital so-called comprehensive laws to deal Mexican army officers raided the wed- issue of concern to every single Amer- with international narcotics control. ding party of Amado Carillo Fuentes ican. From 1961 to 1991 we passed over 100 sister, they found members of the I listened carefully to the comments bills to combat drugs. There have been Mexican Federal Judicial Police guard- in the Chamber, particularly those of 10 major multilateral declarations and ing the party. Carillo Fuentes escaped the Senator from Connecticut a mo- agreements signed between 1970 and thanks to a tip from the police about ment ago. We differ on the question of 1992. Between 1966 and 1991 we created the raid. And on the very day that cer- whether certification is effective or roughly 18 new agencies, councils, of- tification for Mexico was announced, not. The fact is, were it not for certifi- fices, and institutes to pretend to deal Humberto Garcia Abrego, brother of cation, we would not be here today with drugs. Since President Bush es- Juan Garcia Abrego, and chief money fighting about what the appropriate ac- tablished the White House Office of Na- launderer of the Gulf cartel was al- tion is with respect to Mexico and tional Drug Control Policy, we have lowed to go free by Mexican officials, there would not be such sensitivities had four drug czars. even though he was still under inves- by Mexico or us to the consequences of I think these efforts tell the story. tigation for drug related crimes. our actions. Were it not for the certifi- Drug use by adults may be down a lit- Until the Mexican Government rec- cation process, there are whole coun- tle bit, but the fact is that drug use by ognizes this reality and throws out all tries that would continue to disregard, kids is on the rise. In 1992, the number the policemen, prosecutors, judges, and as they did prior to the certification of 12th graders using illegal drugs was military officials on the payrolls of the process, any notions of cooperation. It 27 percent; in 1996 it was 40 percent. traffickers, and basically says, ‘‘We are is, frankly, only by virtue of the cer- And our efforts to educate kids about going to start again, and we are com- tification process that we have made the dangers of drugs are just plain in- mitted to this,’’ it is impossible to the extra judgments with respect to adequate. In 1996, only 36 percent of 8th have the kind of cooperation that is Mexico that lead us to understand the graders thought that if they took LSD necessary in this effort. Our own DEA dire circumstances that we find our- once or twice they could risk harming Administrator, Thomas Constantine, selves in today. themselves. Similarly, only 51 percent has told us that ‘‘There is not one sin- Having said that, I want to comment believe that crack can harm them; and gle law enforcement institution in on one other aspect of this, because I only 45 percent think that cocaine Mexico with whom DEA has an en- agree with the Senator from Connecti- could hurt them. All of these numbers tirely trusting relationship.’’ cut. I have been, I think, forceful in are down from 1991. When we went down to meet with the speaking out on this over the last So, as we talk about Mexico, let us President of the United States and var- years. Any efforts to make any judg- not forget the failure of our own ef- ious Cabinet people on this subject, ment about any other country must be forts. I intend to bring us back to this President Clinton properly put the accompanied by efforts to make judg- issue again and again, in the next issue to us. He made a judgment, for ments about ourselves. In fact, efforts months. It is time for us to do the job reasons that I can understand—I do not to judge ourselves ought to come first, here. Every day there are 20 million 10– agree with, but I understand—he made and we ought to be much tougher on 15 year old kids out there who need a judgment that the best way to get ourselves than we are on the others. something to do after school. We can- Mexico to try to engage in this effort The fact is that after all these years not shut schools in the afternoon, we was to certify them. I disagree. In my of so-called declarations of war on cannot be devoid of after-school pro- judgment, to certify them, or anything drugs and all of the talk about its im- grams, we cannot cut sports, music, less than what we are doing here now, portance and all of the hype, we really arts, all of the options for our children, is to ratify the status quo. And it is to do not have a legitimate war on drugs and suggest that they go home to say that the same patterns of behavior in our own country. I hear some people houses where there is no parent, and that have sufficiently gotten you by sometimes say, well, the reason we are not expect to reap the harvest of that any critical judgments over the span of losing the war on drugs is x, y or z. We kind of abandonment. Mr. President, the last 10 years will be able to con- are not losing the war on drugs, Mr. that is our responsibility. tinue into next year and the next year President. We are not fighting the war Now, what about Mexico? They also until whenever it is that the United on drugs. Ask a lot of prosecutors have a responsibility. We are honest, at States decides they are going to start around the country whether they have least, about judging our court system. to judge things the way they really sufficient resources. Ask judges wheth- We are honest about putting our cops are. er they can move people through the in the street, 100,000 more of them, to The way they really are is known by courts fast enough. What happened to try to deal with this. We are honest everybody. Let me quote from our own the initiative to have drug courts? Ask about trying to prosecute people, po- State Department’s International Nar- drug addicts, who are the first people lice officers and others in various de- cotics Control Strategy Report for this we ought to discuss this with, what partments across the country, who year: they say about the system and if it is have shown a proclivity to break the Taking advantage of the 2,000 mile border serious, because we treat less than 50 law. That does not really happen in between Mexico and the United States and the massive flow of legitimate trade and percent of the drug addicts in this Mexico—not really. There is a fake traffic, well entrenched polydrug trafficking country. If you want to take the push- process that goes on there. In fact, organizations based in Mexico have built ers’ clients away, we ought to have what really happens in Mexico is that vast criminal empires that produce illicit treatment on demand in America, one cartel buys out the police and the drugs, smuggle hundreds of tons of South clean the streets up of the addicts, judges and the prosecutors in order to American cocaine, and operate drug distribu- have an outreach effort that identifies bring pressure on its rival cartels. For tion networks reaching well into the con- them in community after community example, the attorney general and 90 tinental United States. Mexico is the prin- and show some tough love in the Unit- percent of police, prosecutors and cipal transit route for South American co- caine, a major source of marijuana, and her- ed States and provide the treatment. judges in Tijuana and the state of Baja oin, as well as a major supplier of You cannot have pushers come along California are judged to be on the pay- methamphetamines to the illicit drug mar- fast enough to make up for that loss of roll of the Arellano-Felix cartel. ket in the United States. business. Do you want to deal with the Do you want to sit around and expect And nowhere but California do they people who are hitting people over the them to do something? They will not understand the methamphetamine as- heads and robbing cars and stealing ra- because drug corruption is endemic pects of this better. dios and entering houses at night? throughout the system. Let me turn to Mexico is the transshipment point for at Then that is the way to do it. But we some other examples. During his 2 least 50 to 60 percent of the United States- do not. We do not even educate all our years in office, former Attorney Gen- bound cocaine shipments and up to 80 per- kids in America about the danger of eral Lozano fired some 1,250 Federal po- cent of the methamphetamine precursors. S2600 CONGRESSIONAL RECORD — SENATE March 20, 1997 According to our U.S. health experts needs of a friend and of relationships. I not walk away from this issue. It is our the consumption of hope, and I pray that President Zedillo joint problem, and that is what we are methamphetamines is on the rise and will be able to move in the direction saying today by passing this resolu- may soon outdistance the use of co- that he has indicated that he wants to tion. caine as the drug of choice in the Unit- move. Unlike Colombia where you have We had $8 billion of trade with Mex- ed States. Mexican-based drug traffick- a top-down kind of corruption, in Mex- ico in 1975. Today, it is over $100 bil- ing organizations are the heart of this ico you have a bottom-up kind of cor- lion. Mexico is the United States’ third trade. The DEA reported in 1996 that: ruption. President Zedillo is going to largest trading partner; it is Texas’ . . . criminal organizations from Mexico, need all the help he can get. largest trading partner, with $22 billion deepening their involvement in methamphet- In my judgment what the United of trade between Texas and Mexico. amine production and distribution in the States Senate is going to do today, by But our relationship is deeper than United States, have radically reshaped the that. It is not just dollars. Every one of trade. With access to wholesale suppliers of going on record as supporting this reso- precursor chemicals on international mar- lution, will, hopefully, send a signal the border States—California, New kets . . . these groups can manufacture un- that all of us need to do more, that all Mexico, Arizona and Texas—were once precedented quantities of high purity meth- of us need to hold each other up to a part of Mexico. So our cultures are in- amphetamine in large labs, both in Mexico tougher standard, and that we need to grained. We together, in the past few and across the border in California. ask Mexico to do more to help us stem years, have drifted into accepting un- Mr. President, the problem is these this flow of drugs. acceptable conditions in the arena of very cartels have reached their tenta- Is that the whole deal? No. As I have drug trafficking. I cannot imagine a cles so far into the Mexican structure made clear, the bulk of the responsibil- worse situation. that you really have to engage in the ity is ours. In my State, we have ranchers who most extraordinary kind of effort in Until we face up more to the demand will not go outside into their front order to change what is happening. I side of the equation, it may seem dif- yards without guns, because they may recognize that there have been some ficult to be as demanding internation- meet someone with an AK–47 walking positive steps here and there, but the ally. But that does not mean we should across their ranch with illegal drugs. fact is, they are truly small develop- not be, and it does not mean that we There is a state of lawlessness in my ments measured against what we know must not ask a country as deeply af- State that we have not seen since the Mexico has to do and what we have fected by this as Mexico has been to frontier days, and we cannot let this asked Mexico to do. That is the true begin to join us to a greater degree in stand. In fact, a number of our ranch- measure of cooperation. this battle. It is my hope and my belief ers are selling their land to the highest The fundamental problem in Mexico that this effort today will enable us to bidders because they feel defenseless. is the corruption that exists at any and continue to cooperate while simulta- And guess who the highest bidders are? all levels, even among those charged neously sending an important signal They are people fronting for those who with fighting the drug effort. You see about the seriousness of our certifi- are trafficking illegal drugs. They are an occasional arrest, yes. But those ar- cation process. paving their way through the United rests by Mexican authorities are not Mrs. HUTCHISON addressed the States through the remote areas of our necessarily reflective of the commit- Chair. ment to root out drug traffickers, but border States. This is a frightening sit- The PRESIDING OFFICER. Under rather of a well-coordinated plan by uation. the previous order, the Senator from In Eagle Pass, the intimidation one cartel to eradicate the other by Texas is recognized for up to 10 min- began when ‘‘coyotes’’ were smuggling having law enforcement officials on utes. their payroll. One of the reasons we did illegal aliens through this remote bor- Mrs. HUTCHISON. Mr. President, I not immediately realize that Mexico’s der area took to cutting fences and thank Senators COVERDELL and FEIN- drug czar, Jesus Gutierrez Rebollo, was using cattle ranches as a back-door en- STEIN. I think they have come a long corrupt was because he arrested major trance to America. When local and way in this process, and I appreciate drug traffickers but only those who State officials complained to the Fed- their willingness to stand with what I worked for the rivals of the cartel that eral Government, the response was he worked for, that of Amado Carillo think will be the strongest vote in the that would be 2 years before we can get Fuentes. So, on February 18 the Mexi- Senate and do something that is con- help to you. So my State sent Texas can Defense Secretary, Enrique Cer- structive, rather than destructive. Rangers down to the border. But even I thank Senator DODD, Senator vantes announced that Gutierrez aided that has not been enough to do the job. the Carillo cartel for 7 years by pro- MCCAIN, and Senator DOMENICI. I thank So we have a problem that we must tecting cocaine shipments in exchange Senator LUGAR for coming in and help- solve together. for vehicles, real estate and cash. ing in this process. It took all of us to- Another new thing that seems to be It was his taste for the good life, not gether to come up with a solution that happening is our customs agents on our Mexican efforts to root out corruption, we thought would be something work- side of the border, many of whom have that caught him up. And you could able with our Senate colleagues, hope- relatives in Mexico, are now being read a number of journalistic accounts fully with our House colleagues, and threatened with harm to their relatives of what happened that show that it was something that would be a help to our in Mexico if they do not cooperate with actually accidental that Gutierrez fi- relationship with Mexico. drug traffickers. So this corruption is nally got caught. I think that was the key to this mat- on both sides of the border. Mexican authorities have also tried ter, because, in fact, Mr. President, we The number of drug seizures in Mex- to tout the arrest and deportation of are losing the war on drugs. Mexico is ico in 1996 was only half the number of Juan Garcia Abrego, and there is no losing the war on drugs. They are see- seizures in 1993. The number of drug-re- doubt that the Gulf cartel has been se- ing their country rifled with corrup- lated arrests in Mexico in 1996 was half verely hurt by that. But what we are tion because of the billions of dollars the number in 1992. Mexico is the seeing, already, are indications that that are coming in illegally, and Amer- source of 20 to 30 percent of the heroin the only long term effect of those ef- ica is losing the war on drugs because coming into our country, 70 percent of forts is going to be to allow Carillo we see 1 in 4 of our children who say the foreign-grown marijuana, and the Fuentes to move in and takeover the they have been offered illegal drugs, transit point for 50 to 70 percent of the Gulf cartel’s operations. Likewise, ef- children as young as 8, 9, 10, 11, 12 years cocaine shipped into our country. This forts to target the Tijuana cartel, run old. Yes, Mr. President, what we are is a sieve, and we must plug the holes. by the Arellano-Felix brothers, are saying today is it is no longer business I will say that having just described likely to wind up being orchestrated by as usual in the drug war. a horrendous situation in Mexico, let’s Carillo Fuentes through his connec- Mexico is not a country that is thou- look at America. In America, accord- tions with corrupt law enforcement of- sands of miles from our border. This is ing to the Office of National Drug Con- ficials. our border. Mexico is our border. We trol Policy, over 12 million people are Mr. President, what we are trying to are tied. We are tied economically; we drug addicts; 10.9 percent of young do here today is be sensitive to the are tied in security interests. We can- Americans between the ages of 12 and March 20, 1997 CONGRESSIONAL RECORD — SENATE S2601 17 are using illegal drugs; drug-related the sake of both of our future genera- ruption in police ranks—even up to the illness, death and crime cost this coun- tions. very top ranks—is still rampant in try nearly $67 billion in 1996. Thank you, Mr. President. Mexico. So I have been troubled about what Mr. COVERDELL addressed the Just a few weeks ago, it was revealed we are doing on our side, and yet, Chair. that the man hired to be Mexico’s drug shortly after taking office, the Clinton The PRESIDING OFFICER. The czar—the head of their anti-narcotics administration cut the Office of Na- Chair recognizes the Senator from agency—was fired abruptly after being tional Drug Control Policy staff by Georgia. accused of taking bribes from one of more than 80 percent, hardly making it Mr. COVERDELL. I would like to Mexico’s most powerful drug lords. a priority. They also have made pro- yield 3 minutes of my 5 minutes to the It would be as if our own drug czar, posals to cut the DEA, the Drug En- Senator from California, Senator Gen. Barry McCaffrey, were found to be forcement Agency, the FBI, the Immi- BOXER. in league with drug gangs in our coun- gration and Naturalization Service and The PRESIDING OFFICER. The try. Why didn’t the Mexican Govern- other Federal agencies, including, Chair recognizes the Senator from ment tell us they were investigating though Congress has authorized 1,000 California. their drug czar? Why did they let our Border Patrol agents, only coming for- Mrs. BOXER. Thank you very much, own drug agency brief him and give ward with a budget for 500. Mr. President. him important intelligence about our I have spoken to the Attorney Gen- I want to thank the Senator from antidrug efforts? I do not call that co- eral, Janet Reno, I have spoken to the Georgia, my colleague from California, operation. new drug czar, Barry McCaffrey, both Senator FEINSTEIN. Both of them Mexico has also failed to take its own of whom I respect very much, and I worked so hard on this. steps to meet the standards of the cer- have said this is unacceptable. I cannot Mrs. BOXER. Mr. President, on Feb- tification law. It has not acted boldly have my State being overrun and have ruary 28, the administration, pursuant to root out corruption in its law en- only half the contingent of new Border to the requirement of the international forcement establishment; it has extra- Patrol agents that Congress has au- narcotics trafficking statute, made a dited to the United States only a few thorized. Congress has made this a pri- decision regarding our Nation’s fight Mexican nationals suspected of in- ority, and we must have the same com- against illegal drug trafficking. The volvement in United States drug ac- mitment from the administration. decision was made to certify that Mex- tivities; it has failed to implement new The ‘‘Just Say No’’ campaign that ico has, in the past year, taken all ap- anticrime laws enacted last year. Nancy Reagan put forward was effec- propriate and necessary actions in the Given these facts, I do not believe tive, and we must have an education ef- fight against international narcotics Mexico qualifies to be certified in full fort much like that one that says to trafficking. compliance with the drug law. I do be- our young people, ‘‘Drugs will hurt I respectfully disagree with this deci- lieve that the President would have you, they will hurt you tomorrow, and sion, and I would like to explain why. been justified in granting a vital na- they will hurt you 20 years from now Under our international narcotics tional interest waiver for Mexico so when you have children.’’ We must let trafficking statutes, in order for a that sanctions would not have to be ap- them know that if we are going to win country which is known to be either a plied, and I wish that he had followed this war on drugs. major source of narcotics or a major that course. So, Mr. President, we are asking for drug transit country to continue to re- Granting a waiver would send a mes- more. We are asking for more from our ceive U.S. aid, the President must cer- sage to Mexico that its actions in the country and more from Mexico, be- tify by March 1 that the country is ei- past year were inadequate, but it would cause the fact of the matter is, we are ther performing adequately in cooper- also allow the United States to con- in this together. Just like any good ating with the United States or is tak- tinue its efforts to work with President marriage, when there is a problem, you ing steps on its own in the fight Zedillo and others in his administra- cannot solve it if only one party is against international narcotics traf- tion who are committed to the drug willing to talk. We must have both par- ficking. fight. Unfortunately, our parliamen- ties willing to talk, both parties will- The law gives the administration tary procedures do not permit a vote ing to give, both parties willing to say, three choices: on such a measure, because that is not yes, if we make a bigger effort to- First, certification that the country what the President supported. gether, we can lick this problem, just is either fully cooperating with the The resolution before the Senate as we have licked the problems for over United States or has taken adequate today makes some good points. It finds 300 years between our two countries. steps on its own to combat the narcot- that, in several areas, Mexico’s actions We don’t really have an alternative and ics trade. against narcotics trafficking have been our children’s lives are in the balance. Second, decertification of the coun- inadequate: So the differences between Senator try, concluding that the country has First, evidence of significant corrup- FEINSTEIN and Senator COVERDELL and failed to meet the requirements of co- tion among Mexican officials, espe- myself and others about how we would operation or action. cially law enforcement; solve this problem were all differences Third, no certification, but a vital Second, Mexico’s failure to fully im- of what would be the most effective. national interest waiver—essentially a plement new anti-money laundering There was never a difference among finding that the country has not met laws; any of us about what the problem is. the standards of the law, but that our Third, drug cartels operating with And that is, we are losing the war on own national interests are best pro- impunity in Mexico; drugs. We are losing a generation of tected by continuing to provide assist- Fourth, Mexico’s failure to grant our our young people. And that is not good ance to the country. extradition requests concerning Mexi- enough. The question of Mexico is com- can nationals who have been indicted We must do better. And we will do plicated. Mexico is the leading transit in United States courts; and better with the resolution that is be- country for cocaine coming into the Fifth, decline in the number of co- fore us today that says the two coun- United States: 50 to 70 percent of all caine seizures and arrests of drug traf- tries will sit down together and we will cocaine shipped into the United States fickers in Mexico in the past few years. address the concerns, we will address comes through Mexico. It is also a sig- These findings put Congress on the concerns of money laundering, of nificant source of heroin, record stating that Mexico is not doing corruption. We will address the con- methamphetamines, and marijuana. enough to fight narcotics trafficking or cerns of demand on our side. And, Mr. President Zedillo seems to be strong- to cooperate with the United States in President, we will do it together. And ly committed to rid the Mexican law doing so. that is why I hope this vote of the Sen- enforcement system of corruption and In addition to the findings, there is a ate is a clear message to our friend and to fight the Mexican drug cartels. How- sense of the Congress section stating neighbor to the south that we want to ever, the reports and events of the past that there has not been enough work together and we want results for few weeks have made it clear that cor- progress in halting the production in S2602 CONGRESSIONAL RECORD — SENATE March 20, 1997 and transit through Mexico of illegal when the ships are stopped, it is hard as it is in the U.S., they have plenty of in- drugs. for law enforcement to find the drugs, centive to try other routes.’’ The meat of the resolution is con- which are hidden in secret compart- Most of the cocaine travels by ship from South America to Mexico’s Pacific Coast, tained in subsection (d), which requires ments. Many fishing vessels have so- where it is unloaded onto trucks and vans the President, by September 1, to sub- phisticated radar equipment that al- and transported across Mexican land borders mit a report to Congress on the extent lows them to keep ahead of law en- into the Southwest United States. of progress made by the United States forcement. Officials estimate that as much as two- and Mexico in ten areas: According to an article in the Janu- thirds of all the cocaine destined for the First, bringing down the drug cartels; ary 30 Washington Post, our own Coast United States, or at least 275 tons a year, now travels by ship via the eastern Pacific in Second, strengthening United States/ Guard admits that the eastern Pacific what law enforcement authorities describe Mexico law enforcement cooperative is ‘‘one of the most difficult places for as the most formidable interdiction battle efforts; us to interdict drug shipments. It’s a they have faced in recent years. Third, strengthening bilateral border vast ocean. There are no choke points, Only 23 tons of cocaine was intercepted by enforcement; no places to hide and lots of places to U.S. maritime operations in the region in 1 Fourth, improvement of extradition search—including 2,000 miles of coast.’’ the past 2 ⁄2 years—most of it in just three seizures, according to the U.S. Coast Guard. matters between the United States and So why, at this time when narcotics ‘‘The eastern Pacific has been one of the Mexico; trafficking in and through Mexico into most difficult places for us to interdict drug Fifth, simplifying evidentiary re- the United States is threatening to un- shipments,’’ said Adm. Robert E. Kramek, quirements for narcotics and related dermine our two countries’ relation- commandant of the U.S. Coast Guard and crimes; ship, would we deliberately make it interdiction coordinator for President Clin- Sixth, full implementation of money harder to bring these cartels under ton’s anti-drug efforts. ‘‘It’s a vast ocean. laundering laws; There are no choke points, no places to hide control? and lots of places to search—including 2,000 Seventh, Crop eradication; Mr. President, I ask unanimous con- miles of coast.’’ Eighth, screening backgrounds of law sent to have printed in the RECORD two The cocaine traffickers of Colombia and enforcement officials; documents relating to this question— Mexico are not the only drug organizations Ninth, increasing support for Mexi- one, the Post article to which I just re- that have discovered the eastern Pacific co’s efforts to prosecute corrupt public ferred, and two, a recent report by the trafficking lanes. Illicit drug shipments are officials; and Humane Society of the United States pouring into Mexico’s Pacific ports by the Tenth, strengthening overall bilat- ton, hidden in secret compartments of com- on the predicted impact on narcotics mercial vessels or mixed with legitimate eral cooperation. trafficking of lifting the tuna embargo cargo in huge metal containers—hashish The resolution does not specify a at this time. from Pakistan; precursor chemicals for process for congressional review of the And I trust that we will not act in methamphetamines, or speed, from Asia; and President’s report. However, as Sen- any way to increase opportunities for huge hauls of marijuana from South Amer- ator FEINSTEIN said earlier, many of us drug smuggling. ica. will be keenly interested in the details The drug cartels believe the risk of getting There being no objection, the mate- caught is so small that they are loading of the report, and of course, Congress rial was ordered to be printed in the shipments of up to 12 tons of cocaine on fish- may respond in any way it deems ap- RECORD, as follows: ing vessels and commercial container ships, propriate. [From the Washington Post, Jan. 30, 1997] which can slip largely undetected from So I conclude that while this resolu- South America and up the western coast of LATIN DRUGS FLOW NORTH VIA PACIFIC— Mexico. Moreover, the cartels use sophisti- tion is not what I had hoped to vote TRAFFICKERS’ SHIPS HARD TO INTERCEPT cated radar equipment and surveillance tech- for, I must support it, as it is the only (By Molly Moore) vehicle we will have on which to make niques as a means of countering search and MEXICO CITY.—The crew of the Ecuadoran seizure efforts of drug enforcement agencies. a statement concerning the Mexico ship Don Celso claimed to be fishermen, but, Even the most primitive-looking fishing drug certification question. hundreds of miles off Ecuador, the 150-foot boat is often equipped with radar and elec- Finally, Mr. President, I would like vessel’s fishing gear looked as if it had not tronic equipment to help smugglers deter- to speak briefly on another subject been used in months. And when a U.S. Coast mine if they are being followed, as well as concerning our relationship with Mex- Guard law enforcement team yanked open scanners that can eavesdrop on military fre- ico. That is the United States embargo the fish hatches, it found 50,000 gallons of quencies, according to U.S. law enforcement diesel fuel instead of tuna on ice. officers involved in maritime interdiction. In against Mexican tuna and the efforts addition, the cartels also frequently send air- by some, including the Mexican Gov- If there was fuel where there should have been fish, Coast Guard Petty Officer 2nd craft to fly over the trafficking routes to be ernment, to lift this embargo. Class Keith Thompson wondered what he used by their ships in an effort to identify The current embargo—which was im- would find in the fuel tanks. It took his team anti-drug operations. posed in 1990 against all countries that six days of hard searching to find out—near- The discovery of 11 tons of cocaine on the Panamanian ship Nataly I off the coast of do not have environmental policies ly seven tons of cocaine crammed into secret Peru in July 1995—the largest maritime co- containers inside the fuel tanks, the second that protect dolphins from unsafe tuna caine haul ever—was the first tip-off that largest maritime cocaine bust in history. fishing practices—prohibits Mexican traffickers were shifting operations to the The massive cocaine discovery last Octo- tuna vessels from selling their products eastern Pacific, according to the Coast ber, along with three other record-breaking in the United States market. Guard’s Kramek. seizures in just the last 18 months, illustrate Lifting the embargo would undoubt- Last August, a Honduran ship intercepted how quickly sophisticated Colombian and 50 miles off the coast of Colombia was found edly lead to an increase in the number Mexican drug cartels are adjusting to law en- of Mexican vessels operating in the to be carrying two tons of cocaine, a seizure forcement efforts and finding new trafficking followed by confiscation of the Don Celso’s eastern tropical Pacific. I believe that, routes to the United States despite the bil- seven tons in October. And last Thursday, given the current power and reach of lions of dollars the U.S. government is U.S. Coast Guard and Mexican authorities the drug cartels in Latin America— spending on its war against drugs. detained a fishing vessel 250 miles off Mexi- particularly Colombia and Mexico—and Even as the United States has increased co’s Pacific coast whose fuel tanks were hid- interdiction efforts in the Caribbean and their frequent reliance on maritime ing almost 31⁄2 tons of cocaine. Mexico has forced curtailment of incoming vessels to make drug shipments, now is Late last year the U.S. Coast Guard, which flights of huge cargo planes stuffed with co- works with the U.S. Navy, the Drug Enforce- not the time to open up a whole new caine, traffickers have made the vast open ment Administration, the Customs Service avenue of maritime trade from Mexico. waters and virtually unpatrolled shipping and other agencies, launched Operation Cartels are using fishing boats and lanes and coasts of the eastern Pacific Ocean Caper Focus off northern South America and cargo ships more and more often to the primary trafficking route for cocaine en- up the Pacific coastline northward to Mexico smuggle cocaine from Colombia to tering the United States, Mexican and U.S. in an effort to identify and intercept drug Mexico where it is then shifted to law enforcement officials say. trafficking shipments closer to their depar- trucks and other vehicles for transport ‘‘When you press the balloon in one area, it ture ports. pops up in another,’’ said Vice Adm. Roger T. ‘‘Once they’ve loaded and are proceeding across the border into the United Rufe Jr., U.S. Coast Guard commander for into the ocean, it’s very easy to hide,’’ said States. the Pacific area. ‘‘We’ve been putting a lot of Capt. Robert Wicklund, chief of the Coast The risk of capture for these vessels stumbling blocks in their way in the Carib- Guard’s law enforcement section for the Pa- is low in an ocean so large. And even bean. It’s a market economy; with demand cific area. ‘‘There are no natural choke March 20, 1997 CONGRESSIONAL RECORD — SENATE S2603 points that a vessel has to pass through ing tuna caught by setting nets on dolphins, General Accounting Office (GAO), Mexican where we can sit and wait for them to come the number of vessels fishing for tuna in the federal and state personnel were caught un- to us.’’ Eastern Tropical Pacific Ocean (ETP) has de- loading a jet carrying 6 to 10 metric tons of And often even large-scale deployments do creased substantially. Lifting the embargo cocaine in November 1995. In June 1995, fed- not result in seizures. In November 1995, and changing the ‘‘dolphin safe’’ label to eral judicial police were arrested for protect- after a two-year intelligence-gathering oper- allow its use on ‘‘dolphin-unsafe’’ tuna will ing a major narcotics trafficker. In March ation by anti-drug agents, a U.S. Coast most likely result in a substantial increase 1995, officers of the National Institute for Guard cutter was dispatched to the eastern in the number of vessels fishing in the ETP. Combatting Drugs were arrested for accept- Pacific to monitor a fishing vessel believed We are concerned that this will—in addition ing cocaine and cash to allow a shipment of to be carrying—or preparing to load—20 tons to causing increased injury and death to dol- over a metric ton of cocaine to pass of cocaine. phins—create conditions that may lead to in- unimpeded. Mexican and American officials The ship left Panama and headed for fish- creased and easier narcotics smuggling into have also acknowledged that, during the Sa- ing grounds west of the Galapagos Islands. the United States. linas administration, at least half a dozen The Coast Guard cutter tailed the vessel for THE FLOW OF NARCOTICS INTO THE UNITED traffickers, including the Juarez Cartel’s 1 2 ⁄2 months but was never able to determine STATES Carillo, were ‘‘quietly’’ arrested and released if it was carrying cocaine and did not stop it. Most of the world’s cocaine—an estimated by corrupt police and/or judges. ‘‘We had the ability to know when he was 80%—originates in Colombia. In recent Drug corruption is found on both sides of fishing, when he was doing his laundry, but years, Colombian traffickers began to funnel the border: U.S. government agents have we didn’t know whether he had drugs on their cocaine through Mexico. Mexican drug been swayed by the promise of easy money board,’’ a Coast Guard official said. as well. In February 1996, a U.S. Customs in- The most difficult drug shipments to de- smugglers became the key transporters of Colombian cocaine, a service for which they spector was convicted of scheming to allow tect are those secreted in the cargo contain- 2,200 pounds of cocaine in from Mexico ers aboard commercial vessels. Without in- were paid in cash. Through the development of successful networks and trans-border rela- through the Texas border in exchange for $1 formants at ports of departure or arrival, it million. is virtually impossible to detect such drug tionships, and the ability to easily bribe local police, they became more and more Corrupt government officials in the right shipments, according to law enforcement of- positions can ease the transporting of nar- ficials. powerful. Eventually, they started taking their pay—50% of each load—in cocaine. This cotics in shipments of tuna and other food- ‘‘At our two main ports of Veracruz and stuffs. According to witnesses in a pending Manzanillo, 200 containers arrive daily,’’ said development, and the weakening of the Co- lombian cartels through arrests and deaths, U.S. civil trial of a key Salinas administra- Francisco Molina Ruiz, until recently the tion political figure, both former president chief of Mexico’s Institute to Combat Drugs, allowed Mexican traffickers to gain greater control over narcotics trafficking in the Carlos Salinas de Gortari and his brother the Mexican equivalent to the U.S. DEA. ‘‘To Raul had ties to the Gulf Cartel during Sali- check one container, we need anywhere from Americas. According to the U.S. Drug Enforcement nas’ presidency. Raul Salinas is alleged to 10 hours to three days. Some containers are have received millions of dollars from drug frozen; others contain toxic substances, and Administration (DEA), over 70% of all co- caine entering the U.S. comes through Mex- lords and to have distributed bribes to other often the dogs can’t sniff for drugs.’’ political figures. During this time period, Mexican law enforcement agencies re- ico. In 1994 and 1995, approximately 200 of the Raul Salinas directed the Mexican govern- cently have discovered several large drug 300 metric tons of cocaine that entered the ment’s food distribution organization, a posi- stashes in container shipments, usually after U.S. each year transited Mexico. At least tion which he could have taken advantage of receiving tips or noticing irregularities in two-thirds of the cocaine that enters Mexico to aid his narcotics-trafficking associates. shipping manifests. is shipped in maritime vessels from other Problems of drug interdiction in the east- Latin American countries. It is then smug- NARCOTICS TRAVEL VIA EASTERN TROPICAL ern Pacific are exacerbated because the gled into the U.S. over various land routes PACIFIC OCEAN United States has few bilateral agreements into California, Arizona, and Texas. In recent years, as counternarcotics forces with Pacific Coast nations on law enforce- GOVERNMENT CORRUPTION EASES SMUGGLING have become more adept at intercepting ment cooperation, such as those it has devel- Narcotics trafficking is, arguably, Mexi- drugs in the air, Latin American drug traf- oped over the years throughout the Carib- co’s biggest business. Drug sales account for fickers have shifted their preferred method bean. as much as $30 billion a year in illegal pro- of transporting cocaine to Mexico to the sea. As a result, until a few recent diplomatic ceeds to Mexico—more than the country’s Department of Defense records show that breakthroughs with some nations, U.S. law top two legitimate exports combined. Traf- since 1992, known drug-trafficking events in- enforcement officials frequently spent days fickers take in tens of billions of dollars volving aircraft decreased 65 percent, while in bureaucratic tangles attempting to get every year from the sale of cocaine, and they those involving maritime vessels increased permission to stop or pursue suspicious ves- spend millions of dollars—at least $500 mil- 40 percent. sels. lion each year by some estimates—to ensure Maritime vessels, such as fishing trawlers And despite the large increase in the num- the protection and cooperation of govern- and cargo ships, are becoming more widely ber of drug shipments off the Mexican Pa- ment officials. Officials with the U.S. State used by drug cartels to smuggle cocaine be- cific coast, the United States and Mexico Department’s Bureau for International Nar- cause the risk of capture is so low: The vast- have not conducted joint operational exer- cotics and Law Enforcement Affairs have ness of the ocean makes intercepting ships cises in a year. Mexico declined to take part stated, ‘‘Drug traffickers used their vast nearly impossible. Even when ships are ap- in the latest scheduled exercises after former wealth to corrupt police and judicial officials prehended, actually finding the drugs is ex- defense secretary William J. Perry embar- as well as project their influence into the po- tremely difficult, because the illicit cargo is rassed Mexican officials by discussing the litical sector. hidden in hard-to-find secret compartments. operations before they had been announced According to testimony obtained during In one recent seizure, it took authorities six to the Mexican public. the trial of drug lord Juan Garcia Abrego, days of searching to discover a seven ton the Gulf Cartel (one of Mexico’s four major load of cocaine on board a vessel of the type LIFTING THE TUNA EMBARGO AND CHANGING cartels) spends millions of dollars every used for tuna fishing. Moreover, many fish- THE DOLPHIN-SAFE LABEL: THE PREDICTED month buying the support of corrupt govern- ing vessels are equipped with radar and scan- IMPACT ON NARCOTICS TRAFFICKING ment officials. Garcia himself has been ners that allow them to determine if they (A Confidential Report of the Humane Soci- charged with paying at least $25 million in are being followed, giving them an edge over ety of the United States, National Inves- bribes to high-ranking Mexican officials. One law enforcement officials. tigations, March 5, 1997) of his aides has testified that some of this Law enforcement officials state that, with- Three U.S. laws are under attack from sev- money went to buy Javier Coello Trejo, the out informants, drug shipments in maritime eral Latin American nations who want to re- Deputy Attorney General in charge of drug vessels are essentially impossible to detect. gain access to our lucrative tuna market: 1) enforcement during the Salinas administra- Drug interdiction in the Eastern Pacific is the embargo provisions contained in the Ma- tion. The use of bribes to ease smuggling is made more difficult because the U.S. has few rine Mammal Protection Act (MMPA; pro- not limited to the Gulf Cartel: Jose´ law enforcement cooperative agreements hibiting the importation of yellowfin tuna Gutie´rrez Rebollo, the head of Mexico’s Na- with Pacific nations. from countries whose tuna fleet kills over tional Institute for Combatting Drugs (Mexi- Officials estimate that at least 275 tons of 25% more dolphins than the U.S. fleet); 2) the co’s DEA), was recently arrested for alleg- cocaine transit the Eastern Tropical Pacific International Dolphins Conservation Act edly accepting bribes from the Juarez Cartel, (ETP) every year. The ETP is the preferred (IDCA; prohibiting the sale of dolphin unsafe considered to be the most powerful of Mexi- tuna fishery of many Latin American tuna tuna in the U.S.); and 3) the Dolphin Protec- co’s cartels. fleets that continue to fish by chasing and tion Consumer Information Act (DPCIA; pro- Corruption in the Mexican government ex- netting dolphins. A class 5 or 6 tuna vessel— hibiting the use of the ‘‘dolphin safe’’ label tends all the way from the highest govern- the type used to set purse-seine nets on dol- on any tuna caught by chasing and setting ment officials, such as Coello and Gutie´rrez, phins—is capable of concealing multi-ton nets on dolphins). to federal and state police, who have report- shipments of cocaine with much less risk of Since the establishment of the ‘‘dolphin edly participated directly in cocaine smug- discovery than other smuggling methods. safe’’ label and the embargo against purchas- gling. According to a recent report from the Class 5 and 6 tuna vessels fish on the high S2604 CONGRESSIONAL RECORD — SENATE March 20, 1997 seas for months at a time. Although they prohibits Mexican tuna vessels from selling the hardest core drug addicts, with may embark for specific fishing areas, these their products in the U.S. market. After the about a 4-year stay, and puts them areas cover hundreds of square miles. Fur- embargo was imposed in 1990, the number of through an intensive program— thermore, unlike a cargo vessel, which gen- Mexican vessels fishing for tuna fell from 85 changes their environment, changes erally travels directly from point ‘‘A’’ to to 40. Lifting the embargo will most likely point ‘‘B,’’ a fishing vessel may traverse an lead to a greater number of vessels operating their lifestyle, and does rehabilitate. area many times—creating unique opportu- in the ETP. More fishing vessels in the ETP As mayor, I helped Delancy get some nities for transporting illegal goods. will lead to conditions that may provide land right on the waterfront. The The following information describes sev- greater opportunities for drug smuggling and Delancy people built their own facili- eral recent incidents in which tuna vessels a reduced risk of being caught. An increase ties, which are stellar. They run their and other fishing-type vessels were appre- in the number of vessels, combined with the own businesses. They pay for their pro- hended carrying shipments of drugs. The sec- likelihood that Latin American tuna vessels tion also discusses the arrests for alleged gram through their labor. would have more reason to approach the U.S. And I would just like to invite— drug-related activity of persons with in- coast, would render our interdiction efforts volvements in fishing businesses. In some in- even more difficult. Delancy does not know I am doing stances, our sources identified the vessel or The long term potential for the well-fi- this—anyone, anywhere in the United business in question as involved specifically nanced narcotics smugglers to establish fa- States that has an interest in replicat- in tuna fishing; in others, the sources did not cilities for ‘‘tuna’’ processing at U.S. ports is ing a program to rehabilitate American specify whether the particular fishing enter- a significant additional incentive. The exist- drug addicts that works, to go to San prise was a tuna operation. In addition, the ence of family connections on both sides of Francisco, to call Mimi Silbert, the di- sources sometimes made it clear that the the border has proven to be a significant aid vessels or business were not actually en- rector, and take a look at a program to narcotics trafficking, and the extension of that works, does not take dime one of gaged in fishing, but were merely false the same methodology to smuggling via the fronts. Our discussion reflects these distinc- tuna industry is possible, should the embar- public money and does it all on their tions where they apply. go be lifted. Direct coastal access to the own. It is one of the most impressive During the last eighteen months, four U.S., either through offloading at sea to programs anywhere in the United ‘‘record-breaking’’ seizures of cocaine on small fast boats which can complete the States. fishing vessels have been made: in July 1995, journey to our shores, or through direct un- If we had more Delancys and more the Nataly 1, a Panamanian tuna vessel, was loading at tuna processing facilities at U.S. caught off the coast of Peru with more than kinds of permeations of Delancy, ports, may expedite smuggling by eliminat- 12 tons of cocaine; in August 1996, the Lim- Delancy Streets for young children, ing the need to cross the land border. erick, a Honduran-registered fishing ship children 14, 15, 16 years old, I think we crewed by Colombians and Ecuadorians, was Mrs. BOXER. Thank you very much, could turn this Nation around. If we seized off the Colombian coast with 2 tons of Mr. President. had more programs like Facts on Crack cocaine; in October 1996, the Ecuadoran I thank my friend from Georgia. from Glide Memorial Church in San tuna-type vessel, Don Celso, was captured off Mr. COVERDELL. Mr. President, I Francisco, we could begin to turn this the country’s coast with almost 7 tons of co- believe, according to the previous caine—cargo which took a U.S. Coast Guard Nation around. But in the meantime, team 6 days to find; in January 1997, the unanimous consent, the next 5 minutes we have to retard the supply of drugs. Viva Sinaloa, a Mexican fishing vessel oper- is allotted to my colleague from Cali- And that is a major first step. ating out of Mazatlan, was intercepted off fornia. So again, I say thank you to every- Mexico’s Pacific coast carrying 3.5 tons of The PRESIDING OFFICER. The one that has participated. I look for- cocaine. Chair recognizes the Senator from ward to the vote. I thank the Chair and In September 1996, Manuel Rodriguez California. I yield back the balance of my few min- Lopez—believed to be tied to the Cali Car- Mrs. FEINSTEIN. Mr. President, I tel—and owner of Grupo Pesquero Rodriguez, utes. which includes tuna companies in Baja Cali- thank you. Mr. COVERDELL addressed the fornia, was placed under house arrest at the I would like to thank again the Sen- Chair. port of La Paz on charges of money launder- ator from Georgia. It has been a great The PRESIDING OFFICER (Mr. ing. Rodriguez’s close ties with PRI officials pleasure to work with him and Senator KEMPTHORNE). The Chair recognizes the (the ruling party in Mexico) were also under HUTCHISON. We began this effort over a Senator from Georgia. investigation. Assets confiscated during his week ago. It has been a very intensive Mr. COVERDELL. Mr. President, we arrest—including six tuna vessels—were val- effort. I believe it has resulted in a res- are about at the hour to bring to a con- ued at $15 million. Rodriguez also owned the olution which will have dominant sup- clusion a very long and arduous effort Nataly I and administered the fishing com- panies Pesquera Carimar S.A. de C.V., port from this body, pass the House, to produce a positive result as we Pesquera Santo Tomas, Pesquera Kino, and and be signed by the President of the struggle with the ravages of drugs in Pesquera Cipes—all fishing companies be- United States. our country and in Mexico and in the lieved to be involved in drug trafficking and More importantly, I think this reso- hemisphere. money laundering. lution will become the law and will I want to acknowledge Senator KYL Colombian Cali Cartel trafficker Jose´ have teeth. And those teeth are: Ad- of Arizona who has made a contribu- Castrillo´ n Henao—allegedly partners with ministration: Report on September 1 tion in terms of border agents. Again, I Mexico’s Rodriguez—was believed to have a the progress that has been made. Here fleet of 100 vessels at his disposal for trans- want to thank the chairman of the porting drugs. He owned the Panamanian- are the specific areas in which we wish Foreign Relations Committee, Senator registered fishing company, Pesquera you to make progress. If there is inad- HELMS of North Carolina, for his great Azteca, to which the Nataly I was registered. equate progress made, it leaves no al- work and, of course, my immediate col- The fleet’s long range fishing boats were ternative really but to fuel up for a leagues in the work, Senator FEINSTEIN used to transport cocaine to islands off the massive decertification battle in a and Senator HUTCHISON and the staffs Mexican coast, where the drugs were then year. that have worked so long and late to loaded onto smaller boats for distribution I want to say one thing about Ameri- produce this resolution. along the Mexican coast. Castrillon helped ca’s demand problem. Because the Sen- This resolution is a renewal state- finance Colombian President Ernesto Perez Balladares’ 1994 campaign; the President’s ator from Massachusetts, Senator ment. It is a new place and it changes party said they had assumed his tuna busi- KERRY, who spoke on this issue, I think the dynamics of the debate with regard ness was legitimate when he made the con- had it right. One of the things that I to the drug cartels in the United tributions. have found is that we have programs in States, in Mexico, and the hemisphere. Victor Julio Patino Fomeque, a leader for this country that work and programs I would simply close by reiterating the Cali Cartel, allegedly in charge of its that do not work. And I would just like my statement earlier. I hope all of our naval smuggling operations, was recently to recommend to everybody that might colleagues in the hemisphere, Mexico captured by Colombian officials. A former police chief, he has been accused of using be watching this a program that does and the other countries, will under- false fishing businesses to smuggle tons of work, a program which has no Govern- stand that this is a new statement, it is cocaine to the United States from the Pa- ment funds, a program with whom my an honest appraisal of a war that is cific port of Buenaventura. colleague from California and I are ravaging the opportunities before us as THE IMPLICATIONS OF LIFTING THE EMBARGO very well familiar. we come on the new century, and see it The current embargo on tuna from coun- That is a program called Delancy as a new statement, a statement of re- tries whose fleets set on dolphins in the ETP Street in San Francisco which takes newal and reinvigorated alliance. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2605 Mr. President, the hour of 3 o’clock Mr. BYRD. Mr. President, I thank communities in which I grew up. The has arrived, and by the previous unani- the Chair. community churches which still thrive mous consent, I believe that moves us f in West Virginia were the focal point of to the vote. I yield the floor. towns and communities of my child- Mrs. FEINSTEIN. Mr. President, I EASTER hood. ask for the yeas and nays. Mr. BYRD. ‘‘The year’s at the spring; And contrary to the beliefs of some The PRESIDING OFFICER. Is there a the day’s at the morn; morning’s at of our sophisticated brethren in Wash- sufficient second? There appears to be seven; the hillside’s dew-pearled; the ington and some of the other great a sufficient second. lark’s on the wing; the snail’s on the metropolitan centers in this country, The yeas and nays were ordered. thorn; God’s in his Heaven—all’s right they do not have rattlesnakes in all of The PRESIDING OFFICER. The hour with the world.’’ those churches. As a matter of fact, I of 3 o’clock having arrived, the ques- Mr. President, the Senate is prepar- have never been in a church where tion now occurs on agreeing to amend- ing to recess at the close of this week. there was a rattlesnake—a few two- ment No. 25. The yeas and nays have Some Senators will use this time to legged ones perhaps, but that is where been ordered. The clerk will call the travel to distant and exotic locations. they ought to go, to church. Social life roll. Others will return home for busy revolved around Sunday services and The assistant legislative clerk called rounds of meetings. Schools around the activities sponsored by, or otherwise the roll. nation are also closing their doors for intimately linked with, the church and Mr. NICKLES. I announce that the spring break. For many college stu- celebrations of faith. But as I witness Senator from Virginia [Mr. WARNER] is dents, spring break has become a beach the slow unraveling of our commu- necessarily absent. vacation ritual, replete with loud par- nities, their weave frayed by casual The result was announced—yeas 94, ties, little self-restraint, and the over- greed and picked apart by drugs and vi- nays 5, as follows: consumption of booze—alcohol. At olence, I worry that the clear-flowing [Rollcall Vote No. 35 Leg.] home, spring sales are in full force, waters of family, church and commu- YEAS—94 with stores luring credit-happy buyers nity that nourished me and millions Abraham Faircloth Lieberman away from the outdoor pleasures that like me are becoming fouled and Akaka Feingold Lott Allard Feinstein Lugar warming days and budding gardens in- turbid. The erosion of Easter into a Ashcroft Ford Mack vite. The celebration of winter’s pass- crass and commercial ‘‘spring break’’ is Baucus Frist McCain ing and the rekindling of life all around but one sad example of the material- Bennett Glenn McConnell us has been lost, for many, in the ma- istic trend in this country and in this Biden Gorton Mikulski Bingaman Graham Moseley-Braun terialistic and hedonistic whirlwind of age. More media coverage is awarded Bond Gramm Moynihan everyday life. Only the pastel colors of to the excesses of Mardi Gras on Fat, Boxer Grams Murkowski paper flowers link the climate-con- or Shrove, Tuesday—also called Pan- Breaux Grassley Murray Bryan Gregg Nickles trolled interior of the shopping malls cake Day—than on the entire forty Bumpers Hagel Reed with the greening of the spring earth. days of Lent. I wonder how many peo- Burns Harkin Reid But today is also the vernal equinox, ple who dress up and masquerade in Byrd Hatch Robb that chiming peal on the celestial that carnival parade recall that the Campbell Helms Roberts Chafee Hollings Rockefeller clock that marks the turning of the original purpose of Mardi Gras was to Cleland Hutchison Roth seasons, the day on which the periods prepare for the Lenten fasts by using Coats Inhofe Santorum of light and dark are again of equal up the available cooking oil and fat in Cochran Inouye Sarbanes length following the long, cold, dreary Collins Jeffords Sessions a pre-fast eating binge? The binge was Conrad Johnson Shelby nights of winter. In 325 A.D., during the fun, but it did not blot out the central Coverdell Kempthorne Smith, Gordon reign of that great convert to Chris- religious purpose of the repentant fast Craig Kennedy H. tianity, the Emperor Constantine, the to follow. D’Amato Kerrey Snowe Daschle Kerry Specter council of Nicaea met. With the help of Mr. President, Easter Sunday ends DeWine Kohl Stevens the Archbishop of Alexandria and the forty days of religious observance be- Dodd Kyl Thompson astronomers of that distant day, the ginning with Ash Wednesday, set as the Domenici Landrieu Thurmond Council decreed that Easter should fall Dorgan Lautenberg Wellstone beginning of Lent by Pope Gregory at Durbin Leahy Wyden on the first Sunday after the first full the beginning of the sixth century. Enzi Levin moon following the vernal equinox. So, This coming Sunday is known as Palm NAYS—5 today we may look ahead with cer- Sunday, in observance of the palm- Brownback Smith, Bob Torricelli tainty toward the Sunday after next strewn entrance of Jesus into Jerusa- Hutchinson Thomas for the enduring celebration of that lem. The following Friday, or Good Fri- NOT VOTING—1 central mystery of the Christian faith, day, marks the day that Jesus suffered the resurrection of Jesus Christ. on the Cross and died. It is a solemn Warner Mr. President, although in recent day indeed, yet I fear that, for too The amendment (No. 25) was agreed years the trend has been to strip every many people, it is just another day off to. religious overtone from our calendar from work, filled with errands, or shop- The PRESIDING OFFICER. The and from our schools—and thank God ping, or travel, with not a passing question is on the engrossment and the Constitution protects my right to thought given to the suffering of God’s third reading of the joint resolution. stand on this Senate floor and talk only Son on the cross. The joint resolution was ordered to about whatever I may please. Let it be I am not a minister. I do not profess be engrossed and read the third time. religion. The Supreme Court cannot do to be worthy of the title. But I grew up The PRESIDING OFFICER. The anything about it. in a Christian home. My foster father question now is on passage of joint res- So the trend has been to strip every was a coal miner and my foster mother olution, as amended. religious overtone from our calendar The joint resolution (H.J. Res. 58), as was the only mother I ever knew. They and from our schools to rename the amended, was passed. were religious people. They were not of The title was amended so as to read: Christmas holiday a ‘‘winter break’’ the religious left or of the religious and the Easter holiday a ‘‘spring Amend the title to read as follows: ‘‘A right. They were not of the Christian joint resolution requiring the President to break.’’ I am not sure that the result— center or the Christian left or the submit to Congress a report on the efforts of a nation more interested in consump- Christian right. Neither am I. They the United States and Mexico to achieve re- tion, department store sales, junk tele- just were plain, down-to-Earth, God- sults in combating the production of and vision, and professional sports perform- fearing, God-loving Christian parents. trafficking in illicit drugs.’’. ances, than in church, community and And, so it is that I come to the Sen- The PRESIDING OFFICER. Under family—is a happy one. I still believe ate Chamber today, as I say, not as a the previous order, the Chair will now that there is a deep wellspring of reli- cleric or as a minister. I probably could recognize the Senator from West Vir- gious belief that sustains our Nation as not be one. But I do believe in the Bible ginia. it does in the close-knit and caring and its teachings, even though I have S2606 CONGRESSIONAL RECORD — SENATE March 20, 1997 not always found it so easy to live up and tragic events in our lives—and I for our community, and for our Nation. to those teachings. know because I have experienced such, I hope that my colleagues and those Easter Sunday is not just a day to as have many others of us in this who hear or read my words will also mark with brightly colored hard-boiled Chamber. take a few moments away from the eggs or chocolate bunnies, or with jelly We believe that there is a better life commerce of everyday life to reflect on beans and plastic grass in wicker bas- still to come. And, if we did not have the true reason why a recess is sched- kets. All of these ancient symbols of that hope, then this life would be uled at this time—to celebrate this spring and rebirth have their place, but empty. The promise of a life after most holy of Christian holidays, it disturbs me to think that children death comes to us through John, ‘‘the Easter. may know Christmas day only for its beloved disciple’’. Reading from the Edwin L. Sabin captures both the so- early morning toy-filled stockings, and King James version of the Bible, the lemnity and the joy of Christ’s res- Easter only for its baskets and Easter Gospel of St. John, Chapter 20, verses urrection in his poem, ‘‘Easter:’’ egg hunts. 24–31: The barrier stone has rolled away, Easter Sunday commemorates the But Thomas, one of the twelve, called And loud the angels sing; resurrection of Jesus Christ. I do not Didymus, was not with them when Jesus The Christ comes forth this blessed day ask everyone to believe as I do. I do not came. To reign, a deathless King. ask everyone to be a missionary Bap- The other disciples therefore said unto For shall we not believe He lives Through such awakening? tist. It does not make any difference to him, We have seen the Lord. But he [Thom- as] said unto them, Except I shall see in his Behold, how God each April gives me whether the Senator from Illinois, hands the print of the nails, and put my fin- The miracle of Spring. the Senator from Idaho, or the Senator ger into the print of the nails, and thrust my Mr. President, I invite my colleagues from Iowa is a Baptist or a Methodist hand into his side, I will not believe. to recall this miracle, and the faith or an Episcopalian or Catholic or Jew- And after eight days again his disciples that gives them and gives communities ish rabbi or Moslem; it doesn’t make were within, and Thomas with them: then throughout our Nation the strength to any difference to me. I can listen to all came Jesus, the doors being shut, and stood in the midst, and said, Peace be unto you. persevere—to fight against the vio- of them and still maintain my own way lence, the greed, and the moral decay of looking at things. Then saith he to Thomas, Reach hither thy finger, and behold my hands; and reach hith- that threaten the fabric of our fami- So, all of these ancient symbols of er thy hand, and thrust it into my side: and lies, our communities, and our Nation. spring and rebirth have their place. be not faithless, but believing. I also invite my colleagues and my But it disturbs me to think that chil- And Thomas answered and said unto him, fellow citizens—and I invite myself—to dren, as I say, may know Easter only My Lord and my God. again see Easter Sunday as the celebra- as a day for baskets and Easter egg Jesus saith unto him, Thomas, because tion of the resurrection and the prom- thou hast seen me, thou hast believed: hunts. ise that there is a life after death. Wil- Easter Sunday commemorates the blessed are they that have not seen, and yet have believed. liam Jennings Bryan and my congenial resurrection of Jesus Christ. And I now And many other signs truly did Jesus in colleague from the State of Illinois, read from the King James version. the presence of his disciples, which are not Mr. DURBIN, will appreciate this espe- That is the only version I will read. written in this book: cially. William Jennings Bryan ex- That is the Bible that was in my fa- But these are written, that ye might be- pressed it well in ‘‘The Prince of ther’s house. It is the only one I know lieve that Jesus is the Christ, the Son of Peace’’: and the only one I will have in my God; and that believing ye might have life through his name. If the Father deigns to touch with divine house. So I read from the King James power the cold and pulseless heart of the version of the Bible the Gospel of St. And so, Mr. President, that is the buried acorn and to make it burst forth from Mark, Chapter 16, verses 1–7. Let us lis- promise—‘‘that believing’’ we might its prison walls, will He leave neglected in ten to Mark. He was the attendant of have life. The next two weeks may be a the earth the soul of man, made in the image Peter. He speaks to us of the resurrec- recess for some, and for some a ‘‘spring of his Creator? If He stoops to give to the tion: break,’’ but for millions of Americans, rosebush, whose withered blossoms float upon the autumn breeze, the sweet assurance And when the sabbath was past, Mary the next two weeks are also a life-af- of another springtime, will He refuse the Magdalene, and Mary the mother of James, firming celebration of the greatest gift words of hope to the sons of men when the and Salome, had bought sweet spices, that any of us has ever received—hope in a frosts of winter come? If matter, mute and they might come and anoint him. future life. For those who have lost inanimate, though changed by the forces of And very early in the morning the first day loved ones, Easter brings the joyous nature into a multitude of forms, can never of the week, they came unto the sepulcher at hope that we can again see, we can be destroyed, will the imperial spirit of man the rising of the sun. again be with that loved one, as I lost suffer annihilation when it has paid a brief And they said among themselves, Who my grandson 15 years ago this coming visit like a royal guest to this tenement of shall roll us away the stone from the door of clay? No, I am sure that He who, notwith- the sepulcher? April the 12th. He died on the Monday morning after Easter Sunday, perhaps standing His apparent prodigality, created And when they looked, they saw that the nothing without a purpose, and wasted not a stone was rolled away: for it was very great. around 3:30, 4 o’clock in the morning, single atom in all of His creation, has made And entering into the sepulcher, they saw the victim of a truck crash into a tree provision for a future life in which man’s a young man sitting on the right side, and a fire that devastated his beautiful universal longing for immortality will find clothed in a long white garment; and they body—17 years old, looking forward to its realization. I am as sure that we live were affrighted. graduation from high school, 6 feet 5, again as I am sure that we live today. And he saith unto them, Be not affrighted: Ye seek Jesus of Nazareth, which was cru- and 300 pounds, all man, with life ahead William Jennings Bryan spoke those cified: he is risen; he is not here: behold the of him. And there are others in this words in ‘‘The Prince of Peace.’’ place where they laid him. Chamber who have suffered the loss of Mr. President, may all of us, as we But go your way, tell his disciples and a child or a grandchild or a parent, a approach the blessed Easter season, Peter that he goeth before you into Galilee: sister or brother or wife or husband. enjoy renewed hope in the message there shall ye see him, as he said unto you. We can see our loved ones again. that we shall live again. So Easter is a vivid and lasting cele- So Easter represents the resurrec- And when you get closer to 79—79 bration of the promise of life after tion, it is the celebration of the res- years and 4 months, as I am today—the death. Like spring itself, Easter is, in urrection, and it gives us hope that more you will believe and begin to see its essence, a celebration of the rebirth there will be a future resurrection. more and more the truth, the universal of living things. That hope, that prom- That is what it means to millions of truth, the eternal truth that God still ise of life after death, guides our behav- people in this country. lives, that He created this great uni- ior in the here-and-now. It reinforces As the sun warms our backs, and the verse and all the universes, and that He the need to act not only in our own spring breezes carry past us the min- created man. I don’t know how He cre- selfish interests, but also for the com- gled scents of pear blossoms and mag- ated man. I am not worried about that, mon good, else we be judged unworthy nolia blossoms and the warm earth, let by what method or through what proc- of Christ’s sacrifice. It sustains us us offer our heartfelt prayers for our ess all that was done. But we are told when we encounter harsh difficulties faith, for our family, for our church, that God created man out of the dust of March 20, 1997 CONGRESSIONAL RECORD — SENATE S2607 the ground in His own image, and I do not know what it will take for merely said it’s not supposed to hap- breathed into his nostrils the breath of Mr. Freeh to admit these things, Mr. pen. His recommendation? If there life. And man became a living soul. President. Perhaps the public needs to were alterations, just correct the writ- That is good enough for me. see more of the FBI‘s documents that ten report. So, Mr. President, as we approach underscore my points. That’s fine by You see, Mr. President, under the this Easter, let us learn again the mes- me. Because documents don’t mislead. long-standing Brady decision, the gov- sage that comes to us from Him who They do not have a motive to. But, ernment is required to provide the ac- said 2,000 years ago: ‘‘I, if I be lifted up people do. And when leaders of the peo- cused with any information that might from the Earth, will draw all men unto ple mislead, there’s a breakdown in point to their innocence. Material al- me.’’ confidence and trust. terations of lab analysis might fit into Mr. President, I yield the floor. And so, I am here today, Mr. Presi- that category. If changes had been dis- Mr. GRASSLEY addressed the Chair. dent, to test the boundaries of Mr. covered in some reports, the proper The PRESIDING OFFICER. The Sen- Freeh’s denials. Today, I am releasing thing to do was to judge the impact of ator from Iowa is recognized. yet more FBI documents, obtained any alterations on each court case. In- Mr. GRASSLEY. Mr. President, be- through the Freedom of Information stead, Mr. Shapiro thought justice fore I speak on the subject that I am Act. These documents contradict Mr. would be served by simply correcting here to speak on, I want to thank the Freeh’s own assertions. The American the paperwork. Cases closed. Senator from West Virginia for his people have a right to know this. By October 1994—about 5 months statement. I know that he believes Today, I will reveal a third scientist after Mr. Shapiro’s review was issued— what he says. And I think that he does in the FBI lab, who substantiated some the IG got hold of the same allegations. a wonderful public service by the ex- of Dr. Whitehurst’s more serious alle- The IG began its own review of the 48 pression of that philosophy. gations. He substantiated them just cases. Mr. BYRD. Mr. President, I thank months after the FBI Director and his Meanwhile, in September 1994, the the distinguished Senator. team of lawyers whitewashed them. FBI lab managers discovered another f This third scientist, in fact, was White- agent making the same allegations of hurst’s unit chief in the lab. altered reports as Dr. Whitehurst was EXPLANATION OF ABSENCE Here are the facts. In December 1992, making. The allegations by then were Mr. WARNER. Mr. President, in ref- Dr. Whitehurst made the serious alle- being investigated thoroughly by lab erence to today’s vote concerning the gations that his lab reports were being personnel. certification of Mexico, I was unavoid- altered by other agents who lacked au- By January 1995, the lab’s investiga- ably absent due to delays in travel re- thority to do so. Altered reports could tion was completed. An FBI unit chief, turning to Washington from a pre- constitute tampering with evidence whose name I will not divulge, wrote a viously scheduled speech in Richmond, and obstruction of justice, and could memo of investigation to his section VA, to the Richmond Bar Association. therefore be criminal. chief. In it, he stated that 13 of White- Had I been present, I would have voted The universe of cases being looked at hurst’s 48 cases had significant alter- ‘‘aye’’ during the recorded vote on the was 48 cases. Not all of them were al- ations. He recommended the following: Coverdell/Feinstein substitute amend- tered. But all had to be checked. Some That [Supervisory Special Agent] (blank) ment to House Joint Resolution 58, the appeared to contain substantial be held accountable for the unauthorized Mexico drug certification. changes. The Whitehurst memo of alle- changes he made in the [Auxilliary Exam- f gations went to the Assistant Director iner] dictation of SSA Whitehurst by admin- of the FBI for the Laboratory Division. istrative action to include both oral rep- UPSIDE-DOWN MANAGEMENT IN In May 1994, a review of the White- rimand and a letter of censure. THE CRIME LAB hurst allegations—much more exten- The unit chief concluded his memo Mr. GRASSLEY. Mr. President, this sive than just the altered reports issue, this way: ‘‘(Blank) committed errors is the fifth time I have taken the floor but including them—was done by Mr. which were clearly intentional. He to make observations about the FBI’s Freeh’s lawyers, rather than by an acted irresponsibly; he should be held upside-down management of its crime independent body with some scientific accountable; he should be disciplined lab. background. Ironically, it was the IG’s accordingly.’’ In my view, the FBI’s Director, Louis investigation that supplied the needed The scientist-unit chief writing the Freeh, continues to mislead the public independence and a scientific approach, memo, and who backed up Dr. White- about the lab. He would have us think and only then did these problems get hurst’s allegations, identified the cul- that the FBI lab has met the highest aired. prit. I won’t reveal who either one is. standards. He has maintained that the But, the FBI’s review was headed by But the memo is significant. It reveals allegations of the lab’s whistleblower, Mr. Freeh’s general counsel, Howard yet another scientist—a unit chief, no Dr. Frederic Whitehurst, are all wrong. Shapiro. He’s the Director’s top law- less—who substantiated Whitehurst’s He has said that no other scientist in yer, himself a controversial figure with allegations. It is another apparent ex- the lab has come forward with similar Congress. Mr. Shapiro felt there was no ample of an FBI lab agent shaving the accusations. His testimony before Con- need to have an independent review be- evidence to get a conviction. gress recently was totally consistent cause, as he said, the FBI has a long, What was covered over by Mr. Sha- with that image. proud history of doing its own reviews. piro’s team of crack lawyers less than But documents belie the Director’s Upon completion, the review was even- 1 year before, was now popping up. The rosy portrayal of the lab., and of his tually read and signed-off-on by Direc- lab’s management was finding the op- dark portrayal of Dr. Whitehurst. tor Freeh. posite of what Shapiro and his lawyers Thus far, I have released documents So, here is what the FBI’s own review found. That meant there were conflict- showing there is credibility to some of found. First, there were no major prob- ing findings. And that is serious. The Dr. Whitehurst’s allegations. I have lems in the lab. Everything was hunky lab unit chief’s report was at odds with pointed to press accounts in which the dory. On the specific issue of altered Director Freeh’s. What was senior public has learned the IG’s still-secret lab reports, here is what Mr. Shapiro management—those above the lab report uncovers problems in three spe- found. managers—to do? cific cases. thus backing up Dr. White- [Laboratory Division] management made The answer was not long in coming. hurst with specifics. I released docu- it clear that this will not be tolerated and During this time frame, FBI manage- ments showing that Director Freeh was has instructed the Unit Chief’s (sic) to reit- ment indeed found a suitable discipline aware of the exact same allegations, erate this policy. for this rogue agent. Mr. President, investigated them, yet covered them How about that for a finding for this they promoted him. They made him a up. I revealed that there was a second crack review team, Mr. President. unit chief. The agent found to have in- scientist who came forward with seri- They’re investigating serious, possibly tentionally altered evidence was pro- ous allegations that paralleled those of criminal activities. Instead of finding moted. That tells us how senior man- Dr. Whitehurst. out whether it happened, Mr. Shapiro agement resolved the dilemma. They S2608 CONGRESSIONAL RECORD — SENATE March 20, 1997 promoted the rogue, and shot the mes- un-American. That’s what they have in from each matter are included in the at- senger. dictatorships. There is no room for tached package. That set the stage for the coverup. that in a democracy. This communication has been submitted to Because just 10 months later, when the Mr. President, I have talked to my bring attention to possible problems during Whitehurst allegations became public, colleagues about the culture at the FBI testimony if AE dictation is arbitrarily Mr. Freeh issued the following state- under the present management. It changed in the manner described. For exam- ple, in Laboratory matter 90823043 the AE ment in response. This was on Novem- seems to reward those who rush to a dictation is as follows: ber 8, 1995. He said: conviction. It seems to punish those ‘‘Chemical and physical analyses of speci- The FBI has vigorously investigated his who, in the FBI’s eyes, ‘‘commit men Q4 have identified the presence of (Whitehurst’s) concerns and is continuing to truth.’’ Pyrodex low explosive. do so. The FBI alone has reviewed more than There is no better image to show this The results of chemical analyses of speci- 250 cases involving work previously done by than how they treated the rogue men Q6 are consistent with the presence of the Laboratory. To date, the FBI has found agent—they promoted him—and how residues of Pyrodex low explosive. no evidence tampering, evidence fabrication, or failure to report exculpatory evidence. they treated Dr. Whitehurst—they It is the opinion of this examiner that the Any finding of such misconduct will result in went after him. residues in Q6 originated from a low explo- tough and swift action by the FBI. Mr. President, I do not have to say sive mixture which contained Pyrodex. Is that what happened to the rogue anything else. That says it all. Pyrodex is a commercial low explosive pro- agent, Mr. President? Yes. The FBI Mr. President, I ask unanimous con- duced by Hodgdon Powder Co.’’ took swift action to get him promoted. sent to have relevant documents to On the other hand the final report dicta- The fact is, the statement by Mr. which I referred, plus others that will tion reads, Freeh on November 8, 1995, was utterly help provide additional context, print- ‘‘Present in specimen Q6 are explosive resi- false. Lab reports are evidence. If al- ed in the RECORD. dues which chemical analysis show to have originated from a low explosive mixture tered substantially—and 13 reports There being no objection, the mate- rial was ordered to be printed in the which contained Pyrodex. Pyrodex is a com- were—that is evidence of possible evi- mercial low explosive produced by Hodgdon RECORD, as follows: dence tampering, and more. Powder Co. . . . From SSA Frederic Whitehurst Ultimately, the IG caught up with Present in specimen Q4 is a quantity of To Asst Director John Hicks the rogue agent. The FBI did not. But black-colored powder which has been identi- the IG did. When the IG report finally Re alteration of laboratory report of SSA fied as Pyrodex low explosive.’’ Whitehurst. reached the Bureau, this rogue agent Though the wording in the first paragraph became one of the three who were Purpose: to document the alterations of is a paraphrase of the contents of the AE dic- transferred from the lab. Yet no other auxiliary examiner * * * laboratory reports tation, the contents of the second paragraph action has been taken against him by of SSA Whitehurst * * * do not say at all what was said in the AE dic- Recommendation: That any alteration of tation. There is a big difference between de- the FBI. I aim to find out why not. AE dictation of SSA Whitehurst be done Mr. President, what is clear about all termining that Pyrodex is present and say- with the full concurrence of SSA Whitehurst ing that the powder is Pyrodex. In this par- this is, the FBI is buried under a moun- and the Unit Chief of the Materials Analysis ticular matter there happened to be other tain of evidence showing it cannot po- Unit. materials present in the powder. If faced on lice itself. It took the inspector gen- Details: On 11/27/92 * * * of the Materials the stand with that argument the examiner eral’s investigation to finally root out Analysis Unit advised SSA Whitehurst, * * * would have to admit that the dictation was what the FBI had covered up. Some that * * * had been told by * * * that he was wrong. Opinions presented in the AE reports changing the auxiliary examiner dictation of from the Materials Analysis Unit have been good people in the FBI tried to do the SSA Whitehurst before publishing reports right thing. But senior management thought out very carefully and reviewed by from the Laboratory. This information was the Unit Chief very carefully. got in the way. Senior management ap- the first that SSA Whitehurst has had con- parently places a higher value on main- cerning the changing of his dictation in the In FBI Laboratory matter 70920045 the AE taining image, rather than rooting out five and one half years that SSA Whitehurst dictation reads: wrong. has been a examiner in the Laboratory. At ‘‘Specimen Q4 has the chemical and phys- Therefore, the time may have come no time has SSA * * * consulted SSA White- ical characteristics of C–4 explosive. Semi- hurst concerning these changes. quantitative analysis determined that Q4 is for independent review of the FBI. composed of 2.5% polyisobutylene, 7.0% Di- Someone needs to police the police. As a result of receiving this information, SSA Whitehurst reviewed his files to deter- (2-ethylhexyl) adipate plasticizer and oil and They cannot police themselves. That is mine the cases that SSA Whitehurst as 91.5% high explosive RDX containing a small for sure. Perhaps the way to go is to worked as an auxiliary examiner since 1987 amount of HMX high explosive. C–4 is a mili- beef up the independent IG, instead of * * * which these alterations have been tak- tary plastic explosive. the FBI’s Office of Professional Re- ing place and the possible effect of the alter- White powder found in specimen Q6 has the sponsibility, as the Director has pro- ations on the reported expert opinion of SSA physical and chemical characteristics of pen- posed. Whitehurst. taerythritol tetranitrate (PETN), a high ex- Growing up on the family farm in During the period from 1987 to present SSA plosive commonly found in detonating cord.’’ Iowa, my father taught us to revere Whitehurst has written forty eight auxiliary The final Laboratory report reads: examiner reports * * *. Of those reports SSA ‘‘ . . . Present in specimen Q4 is a white and respect the FBI. They were the Whitehurst was able to retrieve sixteen files putty-type material which has been identi- champions of right versus wrong in our from records. The other files were listed as fied as United States Military explosive type society. We looked up to them, whether checked out and their location was not pur- M112 commonly referred to as ‘C–4.’ . .. justified or not. sued. Review of the files indicates that * * * I still have that same respect for the has often paraphrased or totally altered the Present in specimen Q6 are two (2) lengths reports. Of the sixteen files reviewed, the of detonating cord which are yellow in color FBI. There are literally thousands of with three black tracer threads that contain good, decent men and women serving Laboratory reports were placed into four groups: 1.) Those where no change was made the high explosive PETN.’’ their country as FBI employees. In this particular matter no mention is But those honest, hardworking to the auxiliary examiner report. 2.) Those where paraphrasing of the report was such made of the analysis conducted on specimens agents need and deserve leadership that the meaning was the same but the Q4 or Q6 nor could the Laboratory notes or that has integrity and credibility. words different. 3.) Those where paraphras- AE report be found in the file. They need leaders who will go after bad ing could cause possible problems in court. In order to determine if the practice of al- guys, and protect good guys. Not the 4.) Those where paraphrasing changed the tering the AE dictation of SSA Whitehurst’s other way around. They need leaders meaning or significantly altered the content explosives analysis results is endemic to the who reward honesty and punish wrong- of the report. In group one there were three Explosives Unit the reports of three other doing—not the other way around, as we reports (70921005, 91121007, and 90615067). In examiners who are now or have been in the see in this case. group two there were five reports (71116047, Explosives Unit were reviewed. That review The issue of bad management in the 71221007, 70921006, 91121008, and 71116048). In included reports from SSA * * *, SSA * * * group three there were three reports and SSA * * *. In not one of their reports crime lab is serious. Bad scientific (80217150, 71125046 and 91207016). In group four were the AE dictation reports of SSA White- analysis used in court means good guys there were five reports (71124001, 90823043, hurst changed even to paraphrase the re- can go to prison, and bad guys can 70920045, 90623042, and 91130017). Copies of the ports. SSA * * * practice of altering AE re- walk. That’s not what we want. That is AE report and the final Laboratory report ports appears to be an isolated situation. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2609

OCTOBER 7, 1994. 17. 81223004 33. 20618039 AE and PE testimony and would prevent any Re allegations regarding changes in FBI lab- 18. 90403032 34. 20624009 further confusion or possible misrepresenta- oratory reports by Frederick Whitehurst. 19. 90509063 35. 20729026 tion of the AE dictation in bombing cases. DAVID R. GLENDINNING, 20. 90615067 36. 20812032 In order to resolve the issue * * * I have Office of Inspector General, Department of Jus- 21. 90623042 37. 21118013 asked * * * to review * * *. Some of the cases tice, Washington, DC. 22. 90626055 38. 21123024 have already been reviewed by * * *. The re- 23. 90808074 39. 21214070 mainder of the cases will be reviewed by * * DEAR MR. GLENDINNING: As you will recall, 24. 90823043 40. 21221093 * and all cases will be placed into two cat- several months ago you contacted me re- 25. 91121007 41. 21221094 egories: garding numerous allegations your office 26. 91121008 42. 30422012 Category One will include all those cases had received against the FBI Laboratory Di- 27. 91130017 43. 30611054 where no alteration occurred or if an alter- vision (LD) from Supervisory Special Agent 28. 91204079 44. 30708031 ation occurred, it did not change the mean- Frederick Whitehurst who is an explosive 29. 91207016 45. 30802045 ing of the dictation. residue examiner in the LD. You explained 30. 20124011 46. 30812043 Category Two will include all those cases that Whitehurst had made numerous allega- 31. 20207023 47. 30816032 where an alteration of the dictation occurred tions regarding problems in the FBI LD, but 32. 20416043 48. 31001027 which caused a change in the meaning of the that only one, involving the changing of aux- dictation and may have resulted in a mis- iliary examination dictation, warranted fur- Please do not hesitate to contact me if you representation of the data. ther investigation by your office. I told you need any further information or additional It is anticipated that the remainder of the that the FBI’s Office of the General Counsel assistance. I can be reached at * * *. review will be completed by October 15, 1994. (OGC) had also received the same allegations Sincerely yours, A summary report of * * * findings will be from Whitehurst and was already conducting ——— ———, prepared. At that time, it will be determined an investigation. As you know, our prelimi- Associate General Counsel. * * *. nary investigation is complete, and the re- I have enclosed * * * copy of this memoran- port dated May 24, 1994, was made available To: Mr. Ahlerich dum * * * so that the review of this matter to your office. From: J. J. Kearney will be comprehensive and efficient. As you will recall, the allegation you were Re alternations and changes in AE reports interested in investigating involved White- by PE examiners without approval of AE JANUARY 13, 1995. hurst’s claim that in some cases, Principal examiner scientific analysis section To: Mr. Kearney Examiners (PE) from the Explosives Unit [SAS] Laboratory Division [LD]. From: * * * had changed his Auxiliary Examiner (AE) Reference Mr. H. M. Shapiro memorandum Re alterations and Changes in auxiliary ex- dictation without his approval or knowledge. to Mr. Hicks, dated 6/8/94 and Messrs * * * and aminer (AE) reports by principal exam- OGC contacted the LD management regard- * * * memorandum to Mr. Shapiro, dated 5/25/ iner (PE) without approval of AE exam- ing this allegation who advised that the LD 94. iner; Scientific Analysis Section (SAS) had a longstanding policy prohibiting any Purpose: To Advise you of the actions Laboratory Division (LD). changes in AE dictation by the PE without being taken to resolve the captioned issue. Reference J.J. Kearney’s directive on 1/4/95, the express permission of the AE. The LD Recommendation: None, for information to document recommendations resulting immediately reaffirmed this policy with all only. from a review of captioned matter. its examiners. The May report made the fol- Details: As described in the * * * and * * * Purpose: To make recommendations re- lowing recommendation regarding White- memorandum to Mr. Shapiro, SSA Frederic garding the documented alterations of auxil- hurst’s allegations on this matter: Whitehurst, Materials Analysis Unit, SAS, iary examiner dictation from the Materials Recommendation: We feel that LD man- has alleged that in some instances Principal Analysis Unit (MAU) by SSA Explosives Unit agement has appropriately addressed this Examiners (PE) from the Explosives Unit (EU). issue. However, we are making the following have changed his Auxiliary Examiner (AE) Recommendations: 1. That SSA * * * be recommendations to correct any past unap- dictation without his approval. Following held accountable for the unauthorized proved AE dictation changes and ensure that some review it appears that the practice is changes he made in the AE dictation of SSA the AE has a chance to review final reports: isolated to one * * * . WHITEHURST by administrative action to 1. Examine all past reports where SSA In addition, prior to issuance of the ref- include both oral reprimand and a letter of Whitehurst and * * * (the other explosive erenced memoranda. I was approached by * * censure. residues examiner) were the AE’s, and com- * a second * * * who rendered a similar com- 2. That the Assistant Director in Charge of pare with the language of the final reports to plaint concerning the work of * * * I met the Laboratory Division mandate that all ensure there were no changes. If changes with * * *. Explosives Unit in an attempt to PEs provide a copy of all outgoing reports were made, appropriate action should be resolve the issue. During the meetings, it that include AE dictation to the respective taken to correct any substantive errors that was apparent there was a deeper unresolved AEs to avoid the possibility of mistakes/er- were contained in the final report(s). issue which existed between the examiners of rors being furnished to a contributor as a re- 2. Require a copy of the final report be dis- the two units. The issue centered around sult of misuse or misinterpretation of the AE tributed to the AE examiners at the same what each unit believed their individual dictation by the PE. time the final report is mailed to the con- roles were when reporting the examinations 3. That the issue as to whether or not re- tributor. of evidence in bombing matters. It was the vised reports should be prepared and fur- position of the Explosives Unit that examin- The FBI adopted the recommendations nished to the contributors in the thirteen ers in the Materials Analysis Unit should from the report which are currently being (13) cases where I have concluded significant limit their reporting to the chemical analy- implemented by the LD. The deadline for the alterations were done SSA * * * be referred sis of the explosive residues and not discuss review conducted pursuant to recommenda- to General Counsel for resolution. the nature of explosive materials. On the tion number one is October 15, 1994, and I 4. That Laboratory policy be re-emphasized Other hand, the Materials Analysis Unit’s will forward a copy of the report to your of- to insure that PEs never be allowed to tes- position was that the Explosives Unit peri- fice as soon as it becomes available. tify to the results/meaning of AE dictation odically went too far in their interpretation furnished to them that clearly falls outside The LD examiner who is reviewing the of the residue data when they formulated their expertise. Whitehurst and * * * PE/AE reports advised their conclusions and summary statements Details: Based upon a memorandum to that he believes there are still one or two re- in their reports. each Laboratory Unit Chief from J.W. HICKS ports that have not yet been retrieved. Once In these meetings, the practice that a PE dated 5/24/91, the approved, current Labora- a final accounting of every report is com- not change an AE’s dictation without first tory policy for errors made by a person in pleted, I will send you a copy of any remain- discussing the matter with, and getting the the Laboratory is clearly documented. This ing reports not enclosed with this letter. The AE’s approval was reemphasized with each of memorandum lists four types of errors. The only redactions in the enclosed reports are the Unit Chiefs and the Examiners. It was alteration of another examiner’s dictation the case names and other personal identify- agreed that the two units would follow the without consultation with that examiner or ing data. practice. In addition, in order to ensure that his/her Unit Chief would fit, in my opinion, The following is a list of the enclosed re- the AE examiner is kept informed as to what the criteria of the most serious type of error ports which are identified by the FBI LD is being reported on regarding his work, it defined by the ‘‘willful or grossly negligent number: was reemphasized that a tickler copy of the error.’’ 1. 00530046 9. 71125046 final report would be provided to the AE ex- It has always been understood practice 2. 70724075 10. 71224001 aminer for his review and records. (perhaps not written policy) that PEs do not 3. 70921005 11. 71228078 Further, I recommended that when bomb- change/alter/reword/revise AE dictation 4. 70921006 12. 80121007 ing cases go to trial, we send both the explo- without consulting with and receiving per- 5. 70928045 13. 80217150 sive expert and explosive residue expert to mission from the AE, or their respective 6. 71019029 14. 80803018 testify to their results. This policy is in Unit chief in combination with the AE. 7. 71116047 15. 80803019 keeping with how testimony is handled in The problems that could arise during testi- 8. 71116048 16. 81108029 other cases in the Laboratory having both mony when AE dictation is arbitrarily S2610 CONGRESSIONAL RECORD — SENATE March 20, 1997 changed cannot be over-emphasized. The Laboratory examinations are constantly ances. I hope that this plan will help wording in all MAU dictation is carefully subject to extraordinarily vigorous challenge guide congressional and White House thought out, discussed, peer reviewed often through cross-examination and the presen- negotiators during their upcoming times, and results from correct interpreta- tation of expert testimony by defense wit- budget talks. tions of the data. Any dictation signed out nesses. With that, Mr. President, I hope all by the MAU Unit Chief or his designee The PRESIDING OFFICER (Mr. should not be changed in any manner with- of our colleagues come back fully BROWNBACK). The Senator from Vir- out the proper notification and consent of reenvigorated and ready to start pro- the AE. ginia. ducing some results. In my opinion, SSA * * * chose to ignore Mr. ROBB. Thank you, Mr. President. I yield the floor. this longstanding practice, a practice that f The PRESIDING OFFICER. Who everyone else adheres to. seeks time? BALANCE THE BUDGET It is clear that SSA * * * does not under- Mr. GRASSLEY addressed the Chair. stand the scientific issues involved with the Mr. ROBB. Mr. President, leadership The PRESIDING OFFICER. The Sen- interpretation and significance of explosives often involves seizing the moment. And ator from Iowa. and explosives residue composition. He therefore should realize this deficiency and right now the moment is a realbut rap- f idly fleeting chance to actually bal- differentiate between his personal opinions COL. JOHN BOYD and scientific fact. An expert’s opinion ance the Federal budget. For those of should be based upon objective, scientific us who have long been dedicated to Mr. GRASSLEY. Mr. President, I am findings and be separated from personal stopping the Federal Government from very sad to report that Air Force Col. predilections and biases. spending more than it takes in, the John Boyd died in West Palm Beach, In order to identify a given material, it is moment is now. While we’re away from FL, on March 9, 1997. necessary for the examiner to acquire suffi- Washington during the recess, I hope He was 70 years old. cient data using acceptable scientific tech- He passed away after a long and dif- niques/protocols and instrumentation to spe- that we will use this time to prepare ourselves for serious work on the budg- ficult fight with cancer. cifically identify it. If that level of data is His remains were laid to rest today not acquired or does not exist, then complete et when we return. We cannot let an- identification is not possible and words such other opportunity to do what’s right in Arlington Memorial Cemetery. John was a native of Erie, PA. But as ‘‘consistent with’’ or ‘‘similar to’’ are pass us by. John came to Iowa to go to college. used. This is nothing new. It is taught in our I recognize the fear on both sides. Iowa is where his Air Force career colleges and universities. It is a standard set The President is understandably reluc- began. by MAU based on experience/background, tant to embrace a necessary change in education, discussions, research and peer re- He won an athletic scholarship to the view of the analytical procedures in place. the Consumer Price Index because of University of Iowa and enrolled in the By rewording AE dictation, SSA * * * places its effect, however minimal, on bene- Air Force ROTC program. an examiner in the position where he/she fits for a large and vocal segment of After graduating in 1951, he went to would be required to advise the court that the population. The Republican Party flight school. He earned his wings and the report overstates the findings and there- is reluctant to scale back its calls for a began flying the F–86 Saber jet. fore is incorrect. massive tax cut because of a similar ef- Then he went to Korea with one goal: A FBI Laboratory report is evidence. Often fect on an equally vocal segment of times the report itself is entered into evi- shoot down a MiG. dence during the trial proceedings. The fact their supporters. Fortunately, for everyone concerned, that SSA * * * did make unauthorized But simple math dictates that both that conflict came to an end before his changes in these reports could have resulted must occur if we are truly interested in wish came true. in serious consequences during legal proceed- balancing the budget and keeping it in But to John that was one of the big- ings and embarrassment to the Laboratory balance over the long term. And the re- gest disappointments of his life. as well as the entire FBI. ality is that entitlements have got to Mr. President, I am proud that John In conclusion, SSA * * * committed errors be curbed, and the resulting savings Boyd was educated in Iowa. which were clearly intentional. He acted ir- He was a great American who dedi- responsibly; he should be held accountable; have got to go to reducing the deficit, he should be disciplined accordingly. The not tax cuts. cated his life to public service. problems regarding AE alterations by SSA The Speaker of the House has taken I would like to honor him by speak- ** * are verified. All of the AE dictation fur- a bold step by expressing a willingness ing briefly about some of his most im- nished to SSA * * * by SSA WHITEHURST to surrender tax cuts until the budget portant accomplishments. has been reviewed. The causes, reasons and is balanced. I hope the President will First and foremost, John Boyd was a events which led to the occurrence of the er- meet this bold step by expressing his legendary Air Force fighter pilot. rors has been discussed. The appropriate ad- willingness to reconsider an adjust- But John was no ordinary jet jockey. ministrative action, in my opinion, should be He applied his vast intellect to under- that SSA * * * be given a letter of censure. ment in the CPI, or some other means to accomplish the same goal. stand the dynamics of air combat ma- As meetings take place over the neuvering at which he excelled. DEPARTMENT OF JUSTICE, To do that, though, he had to teach FEDERAL BUREAU OF INVESTIGATION, course of the congressional recess, I Washington, DC, November 8, 1995. would encourage both sides to use as a himself calculus so he could work the FBI Director Louis J. Freeh today released starting point the Centrist Coalition formulas to quantify the problem. This was the problem he saw. the following statement: budget developed last year by a biparti- The FBI looks forward to working with the Why did the heavier and slower san group of Senators, including my- Blue Ribbon Panel named today. The FBI American F–86 achieve near total will assist the panel in every manner pos- self. domination of the superior MiG–15 en- sible to ensure an objective review of our ex- The Centrist plan, known also as the countered in Korea? aminations and policies. Chafee-Breaux plan, was the only budg- John wanted an answer to the ques- Over the past several years, Special Agent et in the Senate last year that received Frederic J. Whitehurst has raised a variety tion. bipartisan support. In fact, the Cen- After doing some truly original and of concerns about forensic protocols and pro- trist plan received 46 votes. And to me, cedures employed in the FBI Laboratory. pioneering work, he began advancing a The FBI has vigorously investigated his con- that seems like a logical place to start. theory. cerns and is continuing to do so. The FBI Our plan used conservative economic His tactical ‘‘Aerial Attack Study’’ alone has reviewed more than 250 cases in- assumptions, a rational reduction in became the bible for air-to-air combat volving work previously done by the Labora- the Consumer Price Index, and a mod- training. tory. To date, the FBI has found no evidence est tax cut. We did not have, within It was instrumental in the creation tampering, evidence fabrication or failure to our coalition, universal agreement on of the Fighter Weapons School at report exculpatory evidence. Any finding of all aspects of the plan. Personally, I Nellis Air Force Base, NV. such misconduct will result in tough and have always wanted to postpone even That’s the Air Force equivalent of swift action by the FBI. The FBI Laboratory conducts over one modest tax cuts until we actually the Navy’s ‘‘Top Gun’’ program. million examinations per year and our ex- achieve balance. But, I believe it pro- John being John, he never slacked perts testify hundreds of times annually in vides a reasonable roadmap now of how off. He kept right on working and de- state and federal courts of law. At trials, FBI to get from here to a budget that bal- veloping his theory of aerial combat. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2611 He wanted to take it to a higher The Wall Street Journal and Boston It helped our top military leadership plane. Globe had already published major re- understand the advantages of maneu- And he did. ports on Spinney’s briefing. A number ver warfare. Those ideas were used to It culminated in the Energy Maneu- of other newspapers had it and were defeat Iraq. verability Theory. ready to roll. And finally, Col. David Hackworth This was a very important piece of The press knew this was a substan- has devoted his weekly column to John work. tial and credible piece of work. Boyd. It is entitled: ‘‘A Great Airman’s John Boyd’s Energy Maneuverability John’s behind-the-scenes maneuver- Final Flight.’’ Theory was seminal in the develop- ing finally led to a dramatic hearing I ask unanimous consent to have ment of two of our premier fighters: that was held in the Senate Caucus these reports printed in the RECORD. first the F–15 and then the F–16. Room in February 1983. Mr. President, we have lost a great That theory helped to shape the de- It was an unprecedented event. American—a true patriot. I will miss sign of those two very important air- It was the only joint Armed Services/ him. planes. Budget Committee hearing ever held. There being no objection, the mate- So, Mr. President, John Boyd was In a room filled with TV cameras and rial was ordered to be printed in the truly a giant in the field of air warfare. bright lights, Spinney treated the com- RECORD, as follows: When I first met John in early 1983, mittee to a huge stack of his famous [From the New York Times, Mar. 13, 1997] he was applying his genius in an en- spaghetti charts. COL. JOHN BOYD IS DEAD AT 70; ADVANCED AIR tirely different field. This was Spinney’s bottom line: The COMBAT TACTICS He had retired from the Air Force final bill of Weinberger’s 1983–87 de- (By Robert McG. Thomas, Jr.) and had set up shop over in the Penta- fense plan would be $500 billion more Col. John R. Boyd, a legendary Air Force gon. than promised. It was devastating. fighter pilot whose discovery that quicker is He was given a small consulting con- Mr. Spinney’s outstanding perform- better than faster became the basis of a far- tract and a cubbyhole-size office to go ance won him a place on the cover of reaching theory that helped revolutionize with it. Time Magazine on March 7, 1983. American military strategy, died on March 9 His Pentagon cubbyhole was the And it effectively put an end to Wein- at a hospital in West Palm Beach, Fla. He birthplace of some very important berger’s plan to pump up the defense was 70 and had lived in Delray Beach. ideas. budget. The cause was cancer, his family said. That’s when I met John Boyd. He was Two years later, my amendment to To combat pilots of the late 1950’s, it was always high noon in the skies above the Ne- just beginning his reform crusade. freeze the defense budget was adopted vada desert. A pilot, a crack instructor at He was the leader of the Military Re- by the Senate. Nellis Air Force Base, perhaps, or a hotshot form Movement. If John Boyd hadn’t come to my of- Navy flier passing through would get on the At that point in time, I was wrestling fice and told me about Chuck Spinney, radio to call him out and within minutes with the Reagan administration’s plan the hearing in the Senate Caucus Room Colonel Boyd would have another notch in to pump up the defense budget. might not have taken place. his belt. I was searching for an effective strat- And if that hearing hadn’t happened They did not call him 40-second Boyd for egy to freeze the defense budget. like it did, I doubt we would have suc- nothing. From 1954 to 1960 virtually every Cap Weinberger was the Secretary of ceeded in putting the brakes on Wein- combat pilot in the country knew that Colo- Defense, and he kept asking for more nel Boyd, a former Korean War pilot who berger’s spending plans. helped establish the Fighter Weapons School and more money. The Plans/Reality Mismatch hearing at Nellis, had a standing offer: take a posi- The DOD budget was at the $210 bil- was just one episode in the history of tion on his tail, and 40 twisting, turning sec- lion level that year. the military reform movement, but it onds later he would have the challenger in But Cap Weinberger had plans to is the one that brought me and John his own gun-sights or pay $40. Colonel Boyd push it first to $300, then $400, and fi- together. never lost the bet in more than 3,000 hours of nally to $500 billion. There were many others. John was flying time. The money sacks were piled high on always the driving force behind the A high school swimming champion who the steps of the Pentagon. scenes, giving advice, planning the won an athletic scholarship to the Univer- It seemed like there was no way to sity of Iowa, Colonel Boyd, a native of Erie, next move, and always talking with Pa., had superior reflexes and hand-eye co- put a lid on defense spending—that is the press. ordination, but what made him invincible in until John Boyd walked in my office. John Boyd always set an example of mock combat was something else. To this day, I don’t know how he got excellence—both morally and profes- At Nellis he taught himself calculus so he there. Ernie Fitzgerald may have intro- sionally. could work out the formulas that produced duced us. I don’t quite remember. Mr. President, since John died, there his repertory of aerial maneuvers and led to But John had a secret weapon. have been several articles published his 1960 report, ‘‘Aerial Attack Study,’’ the His secret weapon was Chuck Spin- about some of his exploits. bible of air-to-air combat. ney. There was a truly beautiful obitu- His combat experience was limited to a few Chuck was an analyst in the Penta- missions in Korea, but they were enough to ary—if such a thing exists—in the produce a breakthrough insight. Wondering gon’s office of Program Analysis and March 13 issue of the New York Times. why the comparatively slow and ponderous Evaluation, or PA&E. It describes John’s vast contributions American F–86’s achieved near total domina- He had a briefing entitled ‘‘Plans/Re- to air warfare. tion of the superior MIG–15’s, he realized ality Mismatch.’’ Second, there is a more colorful that the F–86 had two crucial advantages: John’s plan was to use Spinney’s ma- piece, which will appear in the March better visibility and a faster roll rate. terial to expose the flaws in Wein- 24 issue of U.S. News and World Report. This, in turn, led Colonel Boyd to develop berger’s plan to ramp up the defense That one is written by Jim Fallows what he called the OODA Loop, to denote the budget. and is entitled ‘‘A Priceless Original.’’ repeated cycle of observation, orientation, So I asked DOD for Mr. Spinney’s Mr. Fallows describes some of John’s decision and action that characterized every encounter. The key to victory, he theorized, briefing but ran smack into a stone important contributions against the was not a plane that could climb faster or wall. backdrop of his unusual character higher but one that could begin climbing or At first, the bureaucrats tried to pre- traits. change course quicker—to get inside an ad- tend it didn’t exist. Then, there is the letter from the versary’s ‘‘time/cycle loop.’’ For example, Dr. Chu, Spinney’s Marine Corps Commandant, General The fast-cycle combat theory, expanded by boss, characterized Spinney’s briefing Krulak. Colonel Boyd into a lecture he later deliv- as nothing more than: ‘‘Scribblings and General Krulak describes John as ered hundreds of times, has since been widely writings gathered up and stapled to- ‘‘an architect’’ of our military victory applied to fields as diverse as weapons pro- over Iraq in 1991. curement, battlefield strategy and business gether.’’ competition. Well, that didn’t wash. It just added That’s an oblique reference to John’s One implication of the theory was that the fat to the fire. ‘‘Patterns of Conflict’’ briefing. This best fighter plane was not necessarily the DOD could no longer suppress the piece of work had a profound impact on one with the most speed, firepower or range. truth. U.S. military thought. Colonel Boyd, who enrolled at Georgia Tech S2612 CONGRESSIONAL RECORD — SENATE March 20, 1997 after his Nellis tour, was helping a fellow many abroad. In this way he touched so the modern military. After Boyd died last student with his homework over hamburgers many lives, many of them destined to ascend week of cancer at age 70, the commandant of and beer one night when he had an insight to the very highest levels of military and ci- the Marine Corps called him ‘‘a towering in- that led to a way to quantify his ideas. The vilian leadership. tellect who made unsurpassed contributions resulting Energy Maneuverability Theory, Those of us who knew John Boyd the man to the American art of war.’’ Yet until late which allows precise comparisons of maneu- knew him as a man of character and integ- in his life, the military establishment re- verability, is now a standard measure of aer- rity. His life and values were shaped by a sisted Boyd and resented him besides. ial performance. selfless dedication to Country and Service, Boyd was called up for military service Assigned to the Pentagon in 1964, Colonel by the crucible of war, and by an unrelenting during the Korean War and quickly dem- Boyd became an important figure in a move- love of study. he was the quintessential sol- onstrated prowess as an Air Force fighter ment that started in response to $400 ham- dier-scholar—a man whose jovial, outgoing pilot. More important, he revealed his fas- mers and other headline excesses of Defense exterior belied the vastness of his knowledge cination with the roots of competitive fail- Department spending and soon expanded to and the power of his intellect. I was in awe ure and success. U.S. Planes and pilots, he question the need for many hugely expensive of him, not just for the potential of his fu- realized, did better in air combat than they weapons systems. ture contributions, but for what he stood for should have. In theory, the Soviet-built MiG Although he had allies in the Pentagon, as an officer, a citizen, and as a man. they fought against was far superior to the Congress and business, Colonel Boyd’s ideas As I write this, my mind wanders back to F–86 that Boyd flew. The MiG had a higher often went against the grain of a military-in- that morning in February, 1991, when the top speed and could hold a tighter turn. The dustrial bureaucracy devoted to the procure- military might of the United States sliced main advantage of the F–86 was that it could ment of the most advanced, most expensive violently into the Iraqi positions in Kuwait. change from one maneuver to another more and (not coincidentally, he felt) most profit- Bludgeoned from the air nearly round the rapidly, dodging or diving out of the MiG’s able planes. clock for six weeks, paralyzed by the speed way. As the planes engaged, Boyd argued, Although his design ideas helped give the and ferocity of the attack, the Iraqi army the F–86 could build a steadily accumulating F–15 a big, high-visibility canopy, his major collapsed morally and intellectually under advantage in moving to a ‘‘kill position’’ on triumph was the F–16, a plane lacking many the onslaught of American and Coalition the MiG’s tail. of the F–15’s high-tech, expensive features, forces. John Boyd was an architect of that Boyd extended his method—isolating the but which is far more agile and costs less victory as surely as if he’d commanded a real elements of success—while maintaining than half as much, allowing for the purchase fighter wing or a maneuver division in the his emphasis on adaptability. In the late of many more of them for a given expendi- desert. His thinking, his theories, his larger 1950s, he developed influential doctrines of ture. than life influence, were there with us in air combat and was a renowned fighter in- Top Air Force officers were so opposed to Desert Storm. He must have been proud at structor. In the 1960s, he applied his logic to the concept of producing a plane that did not what his efforts wrought. the design of planes, showing what a plane expand on the F–15’s cutting edge technology So, how does one pay homage to a man like would lose in maneuverability for each extra that Colonel Boyd and some civilian allies John Boyd? Perhaps best by remembering bit of weight or size—and what the nation developed it in secret. that Colonel Boyd never sought the acclaim lost in usable force as the cost per plane The plane was hailed for its performance in won him by his thinking. He only wanted to went up. Within the Pentagon, he and mem- the Persian Gulf war, a war whose very make a difference in the next war . . . and he bers of a ‘‘Fighter Mafia’’ talked a reluctant strategy of quick, flexible response was did. That ancient book of wisdom—Prov- Air Force into building the F–16 and A–10— based largely on ideas Colonel Boyd had been erbs—sums up John’s contribution to his na- small, relatively cheap, yet highly effective promoting for years. tion: ‘‘A wise man is strong, and a man of aircraft that were temporary departures Colonel Boyd, who maintained that the knowledge adds to his strength; for by wise from the trend toward more expensive and lure of big-money defense contracts invari- guidance you will wage your war, and there complex weapons. ably perverted weapons assessment, was so is victory in a multitude of counsellors.’’ I, Warrior virtues. After leaving the Air personally fastidious that during his years in and his Corps of Marines, will miss our coun- Force as a colonel in 1975, Boyd began the the Pentagon he became known as the Ghet- sellor terribly.—Proverbs 24:5–6 study of long historical trends in military to Colonel because he lived in a basement Sincerely, success through which he made his greatest apartment. C.C. KRULAK, mark. He became a fanatical autodidact, He carried his notion of propriety to such General, U.S. Marine Corps, reading and marking up accounts of battles, an extreme that when he retired in 1975 and Commandant of the Marine Corps. beginning with the Peloponnesian War. On his Air Force pension, he lived modestly, began some of his most productive work, as EDITOR’S NOTE: Col. John Boyd, who re- working from a small, book-crammed apart- a Pentagon consultant, he insisted that his tired from the Air Force in 1975, died March ment. He presented his findings in briefings, family live on his retirement pay. Initially 9 at age 70. A fighter pilot of legendary abil- which came in varying lengths, starting at offering to work full time without pay, he ity, Boyd was the author of several pivotal four hours. Boyd refused to discuss his views was persuaded to accept one day’s pay every explorations of warfighting theory, including with those who would not sit through a two-week pay period, because he had to be on ‘‘Destruction and Creation’’ (1976), ‘‘Patterns whole presentation; to him, they were dilet- the Pentagon payroll to have access to the of Conflict’’ (1981), and ‘‘Conceptual Spiral’’ tantes. To those who listened, he offered a building, before retiring in 1988. (1991). He is survived by his wife, Mary; three While still in the Air Force, Boyd was worldview in which crucial military quali- sons, Stephen, of Springfield, Va., Scott, of largely responsible for the early design of ties—adaptability, innovation—grew from Burke, Va., and Jeff, of Delray Beach, Fla.; the F–15 and F–16 fighters, and contributed moral strengths and other ‘‘warrior’’ virtues. two daughters, Kathryn, of Delray Beach and significantly to the design of the A–10 close Yes-man careerism, by-the-book thought, Mary Ellen Holton of Centerville, Va.; a air support aircraft. His ‘‘energy maneuver- and the military’s budget-oriented ‘‘culture brother, H.G. Boyd of Pompano Beach, Fla.; ability theory’’ is still in use in designing of procurement’’ were his great nemeses. Since he left no written record other than a sister, Marion Boyd of Erie, and two grand- aircraft for maximum performance and ma- the charts that outlined his briefings, Boyd children. neuverability. was virtually unknown except to those who Boyd is probably best known for develop- had listened to him personally—but that [From Inside the Pentagon, Mar. 13, 1997] ing the concept of the ‘‘OODA Loop,’’ short group grew steadily in size and influence. for ‘‘observe, orient, decide, act’’—effectively LETTER TO THE EDITOR Politicians, who parcel out their lives in 10- a guide to anticipating enemy moves in a TO THE EDITOR: I was deeply saddened to minute intervals, began to sit through his fast-paced battle and heading them off at the learn of the passing of Colonel John Boyd, briefings. The Marine Corps, as it recovered pass. The term was widely used during the USAF (Ret.). How does one begin to pay from Vietnam, sought his advice on morale, 1991 Persian Gulf war in reference to the U.S. homage to a warrior like John Boyd? He was character, and strategy. By the time of the force’s ability to get ‘‘inside’’ Iraq’s decision- a towering intellect who made unsurpassed gulf war, his emphasis on blitzkrieglike contributions to the American art of war. In- making cycle. Boyd is considered the father of the Air ‘‘maneuver warfare’’ had become prevailing deed, he was one of the central architects in Force’s original ‘‘fighter mafia’’ and, after doctrine in the U.S. military. As a congress- the reform of military thought which swept his retirement, a key leader of the military man, Dick Cheney spent days at Boyd’s the services, and in particular the Marine reform movement in the 1980s. briefings. As defense secretary, he rejected Corps, in the 1980’s. From John Boyd we an early plan for the land war in Iraq as learned about competitive decision making [From U.S. News & World Report, March 24, being too frontal and unimaginative—what on the battlefield—compressing time, using 1997] Boyd would have mockingly called ‘‘Hey did- time as an ally. Thousands of officers in all dle diddle, straight up the middle’’—and in- A PRICELESS ORIGINAL our services knew John Boyd by his work on sisted on a surprise flanking move. what was to be known as the Boyd Cycle or (By James Fallows) John Boyd laughed often, yet when he OODA Loop. His writings and his lectures True originality can be disturbing, and turned serious, his preferred speaking dis- had a fundamental impact on the curriculum John Boyd was maddeningly original. His tance was 3 inches from your face. He bran- of virtually every professional military edu- ideas about weapons, leadership, and the dished a cigar and once burned right through cation program in the United States—and on very purpose of national security changed the necktie of a general he had buttonholed. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2613 He would telephone at odd hours and resume simply copied Boyd’s playbook, and the Ma- The Bowl Alliance operates outside a harangue from weeks before as if he’d rines were brilliant during their attack on the purview of the National Collegiate never stopped. But as irritating as he was, he Kuwait. Athletics Association [NCAA]. The was more influential. He will be marked by a As USMC Col. Mike Wyly tells it, Boyd Bowl Alliance was created in 1993 when small headstone at Arlington Cemetery and ‘‘applied his keen thinking to Marine tactics, an enormous impact on the profession of and today we are a stronger, sharper Corps.’’ the Atlantic Coast Conference, the Big arms. His example inspired many. He affected ev- East Conference, the Big 12 Conference, eryone with whom he came in contact. He the Southeastern Conference and Notre [From King Features Syndicate, Mar. 18, trained a generation of disciples in all the Dame came together and took it upon 1997] services, and they are carrying on his good themselves to provide and acquire DEFENDING AMERICA, A GREAT AIRMAN’S work, continuing to serve the truth over self. teams to participate in the major bowl For those who know, the name Boyd has FINAL FLIGHT games. These Bowl Alliance con- already become a synonym for ‘‘doing the (By David H. Hackworth) right thing.’’ His legacy will be that integ- ferences have contracts with the tele- Col. John R. Boyd of the United States Air rity—doing the hard right over the easy vision networks and large corporate Force is dead. wrong—is more important than all the stars, sponsors—Federal Express, Tostitos, Future generations will learn that John all the plush executive suites and all the and Noika. Champions from each alli- Boyd, a legendary fighter pilot, was Ameri- bucks. ance conference are automatically ca’s greatest military thinker. He’s remem- God now has the finest pilot ever at his guaranteed a berth in one of the major bered now by all those he touched over the side. And He, in all His wisdom, will surely last 52 years of service to our country as not bowl games. The nonalliance con- give Boyd the recognition he deserves by ferences remaining out in the cold are only the original ‘‘Top Gun,’’ but as one promoting him to air marshal of the uni- smart hombre who always had the guts to verse. the Western Athletic Conference stand tall and to tell it like it is. For sure, we can all expect a few changes [WAC], the Big West Conference, Con- He didn’t just drive Chinese fighter pilots in the design of heaven as Boyd makes it a ference USA, the Mid American Con- nuts while flying his F–86 over the Yalu better place, just as he did planet earth. ference and the 11 Independent teams. River during the Korean War, he spent dec- The PRESIDING OFFICER. The Sen- The Bowl Alliance claims its purpose ades causing the top brass to climb the walls ator from Kentucky. is to create optimal matchups and and the cost-plus, defense-contractor rack- identify and national champion. Con- eteers to run for cover. f sidering the 1996 selections for the bowl He was not only a fearless fighter pilot ANTITRUST IMPLICATIONS OF THE with a laser mind, but a man of rare moral games, I question if quality matchups courage. the mission of providing America COLLEGE BOWL ALLIANCE is the true goal. Last season, TV view- with the best airplane came first, closely fol- Mr. MCCONNELL. Mr. President, ers saw No. 20 Texas lose to No. 7 Penn lowed by his love for the troops and his con- Senator BENNETT of Utah, Senator State 38–15 in the Fiesta Bowl. Texas’ cern for their welfare. Many of the current THOMAS and Senator ENZI of Wyoming, record was 8–4. The Orange Bowl show- crop of Air Force generals could pull out of and I have been working on a matter cased No. 9 Virginia Tech losing to No. their moral nose dive by following his exam- ple. that we wish to discuss with our col- 6 Nebraska 41–21. After the Korean War, he became known as leagues in the Senate for the next few Appearance in a Bowl Alliance game ‘‘40-Second’’ Boyd because he defeated oppo- moments. Senator THOMAS needs to pays well. Each participating team nents in aerial combat in less than 40 sec- leave so he is going to lead off. takes approximately $8,000,000 back to onds. Many of his contemporaries from this I yield the floor. its school. In addition, the teams get period say he was the best fighter pilot in The PRESIDING OFFICER. The Sen- the national visibility and prestige the U.S. Air Force. ator from Wyoming. that leads to strong athletic recruit- Not only was he skilled and brave, but he Mr. THOMAS. I thank the Chair. ment. Conferences outside the alliance was also a brain. The Air Force recognized ∑ Mr. President, I rise today to speak have a remote chance of participating this and sent him to Georgia Tech, not to be a ‘‘rambling wreck,’’ but to become a top about the college football Bowl Alli- in one of the Alliance Bowls. Over time graduate engineer. It was there that he de- ance. I am concerned that under the it will hurt the quality of the nonalli- veloped the fighter tactics which proved so Bowl Alliance structure, athletic excel- ance teams who will have difficulty in effective during the Vietnam War, and the lence is not being recognized in recruitment. The Alliance Bowl struc- concepts that later revolutionized the design postseason I–A college football play. ture will make the alliance teams of fighter aircraft and the U.S.A.’s way of Fresh in the minds of Wyoming foot- stronger and relegate the nonalliance fighting wars, both in the air and on the ball fans is the last game of regular teams to a second-tier status. ground. season play when the nationally The alliance ensures its monopoly He saved the F–15 from being an 80,000- ranked Cowboys played against No. 5- pound, swing-wing air bus, streamlining it through the use of the at-large rule. into a 40,000-pound, lean and mean fixed-wing ranked Brigham Young University for Although the champions of the self-se- fighter, which Desert Storm proved still has the Western Athletic Conference [WAC] lected Alliance Bowl conferences auto- no equal. championship title. Both teams went matically appear in one of the major Boyd was also a key player in the develop- into the game believing the winner bowl games there are two remaining ment of the F–16, probably the most agile would be selected for major postseason at-large spots. It is questionable as to and maneuverable fighter aircraft ever built, bowl action. UW and BYU delivered a whether those two spots are truly at- and costing half the price of the F–15. The terrific conference championship game. large and open to any high-quality top brass didn’t want it. To them, more ex- pensive was better. Boyd outfoxed them by BYU won 28–25 over Wyoming in over- team that can play their way into one developing it in secret. time play. It was the first WAC title of the spots. A team from the WAC was Chuck Spinney, who as a Pentagon staffer game won in overtime. Unfortunately, deserving of one of those at-large spots sweated under Boyd’s cantankerous, de- neither WAC team was invited to a last year, but the invitation never manding tough love says, ‘‘The most impor- major New Year’s bowl. came. tant gift my father gave me was a deep belief The 1996 selections to the New Year’s I am concerned for the future of the in the importance of doing what you think is bowl games shed revealing light on the athletes and schools in the nonalliance right—to act on what your conscience says college football Bowl Alliance. Invita- conferences. That is why I joined with you should act on and to accept the con- sequences. The most important gift Boyd tions to the most lucrative major Senators MITCH MCCONNELL, ROBERT gave me was the ability to do this and sur- bowls games—the Orange Bowl, the BENNETT, and MIKE ENZI in writing to vive and grow at the same time.’’ Sugar Bowl, and the Fiesta Bowl—were the Department of Justice [DOJ] and Boyd never made general—truth-tellers largely sent to high-profile, highly the Federal Trade Commission [FTC] seldom do in today’s slick military because marketable teams instead of worthy to request an investigation of the Bowl the Pentagon brass hate the truth, and try teams. Many sports fans were dis- Alliance. We suspect possible viola- to destroy those who tell it. They did their appointed at the postseason New Year’s tions of the Sherman Antitrust Act. In best to do a number on John. But true to bowl matchups. I am concerned about 1996, the eight Alliance Bowl partici- form, he always out-maneuvered them. Norman Schwarzkopf is widely heralded as the closed selection process that has pants, including the Rose Bowl partici- the hero of Desert Storm, but in fact, Boyd’s developed and the impact the Bowl Al- pants, went home with a total of $68 tactics and strategy were the real force be- liance structure will have on I–A colle- million. The 28 teams that played in hind the 100-Hour War. Stormin’ Norman giate football. the minor bowl games shared a pot of S2614 CONGRESSIONAL RECORD — SENATE March 20, 1997 $31 million. We requested a formal in- nessee at Chattanooga. The oppor- bowls—and here is a whole list of vestigation of the matter. If there is tunity to be in college football’s Elite them—collectively shared $34 million. wrong-doing we want to see the DOJ Eight and Final Four is essentially de- Clearly, most of these teams never had and the FTC use their statutory en- termined before the season begins. an opportunity, no matter how good forcement powers to break this lock on The basic message, Mr. President, is they were, to participate in the New college football. that—if David wants to slay Goliath— Years Day payout bowls. Therein lies We are not asking for special consid- he’d better do it during basketball sea- the antitrust problem, a clear antitrust eration for any one team. We would son. He won’t be allowed to play Goli- problem I might say. like to see genuinely open competition ath when the football postseason rolls These short-term millions lead to restored to college football postseason around. College football has no room for the long-term benefits for the alliance con- bowls. Postseason play should be about ferences. Guaranteed appearances in recognizing achievement. Letting the underdog. In fact, as evidenced by the 1997 New Year’s bowls, college football high-visibility bowls directly translate best teams play is in the best interest to: more loyal fans, more generous of our student athletes and our doesn’t even have room for top-ranked teams—unless those teams are mem- alumni, and much more willing ath- schools.∑ letic recruits. I wish to associate myself with the bers of the exclusive Bowl Alliance. efforts of the Senator from Kentucky, I first raised this issue in 1993 when If you don’t believe it’s easier for al- the Senator from Utah, and my friend my alma mater, the University of Lou- liance teams to recruit, just pick up from Wyoming in doing some things isville, had a 7–1–0 record and a top the phone and call the coach at an that we think have impact in football. ranking, but was automatically ex- independent school like Central Flor- The Bowl Alliance has a great effect on cluded from the most lucrative New ida, or the coach at the University of small schools, particularly the Univer- Year’s bowls. I contacted the Justice Louisville or BYU. These coaches will sity of Wyoming, BYU, Louisville, and Department and explained that the al- tell you time after time that the top others, and so we think this is an issue liance agreements constituted a group high school athletes don’t want to play which needs to be discussed. I am very boycott, and, thus, violated the Sher- for teams that don’t have a shot at the proud to be associated with the com- man Act. top New Year’s bowl games. The Justice Department promised to ments my friends will make. Mr. President, in summary, there is promptly review the matter. I thank the Chair. Shortly thereafter, the College Bowl substantial evidence that the most Mr. MCCONNELL. I thank my friend Alliance entered into a revised agree- powerful conferences and the most from Wyoming for his contribution to ment whereby the 1997 New Year’s powerful bowls have entered into the matter that we will now proceed to bowls would be open to any team in the agreements to allocate the postseason discuss with our colleagues. country with a minimum of eight wins bowl market among themselves and to Mr. President, at a time when the engage in a group boycott of nonalli- country is swept away by March mad- or ranked higher than the lowest ranked—alliance—conference cham- ance teams and bowls. The effect of ness—particularly, I notice the occu- these agreements is to ensure that the pant of the chair has a fine team in pion. Despite this pledge, the alliance con- strong get stronger, while the rest get March madness that will probably, no tinued its apparent boycott of nonalli- weaker. doubt, come in second to Kentucky in ance teams. During the 1996 season, I have joined with my colleagues— the end—and the excitement of com- Brigham Young University and the Senator BENNETT, Senator ENZI, and petitive college basketball, we are nev- University of Wyoming, both members Senator THOMAS—to request that both ertheless reminded of the fundamental of the nonalliance Western Athletic the Justice Department and the Fed- unfairness of college football’s pseudo Conference [WAC], met the alliance eral Trade Commission investigate the playoffs. Specifically, I am talking criteria. Wyoming finished the season intent and effect of the alliance agree- about the College Bowl Alliance. The alliance is a coalition of top col- 10–2 and ranked 22d in the country, ments. I ask unanimous consent that lege football conferences and top while BYU won 13 games and was the Justice Department letter be print- postseason bowls. Over the past few ranked the fifth best team in the coun- ed in the RECORD at the end of my re- try. marks. years, the alliance has entered into a Neither team, however, was afforded The PRESIDING OFFICER. Without series of restrictive agreements to allo- an opportunity to play in the alliance objection, it is so ordered. cate the market of highly lucrative bowls. In fact, BYU’s record and rank- postseason bowls. By engaging in this ing was superior to nearly every alli- (See exhibit 1.) market allocation, the coalition bowls ance team, including four of the six Mr. MCCONNELL. In closing, I’d like and the coalition teams have ensured teams who participated in the high-vis- to point out that this effort is much that they will receive tens of millions ibility, high-payout alliance bowls. more than just a few Senators cheering of dollars, while the remaining teams Mr. President, this issue is about for their home teams. The Supreme and bowls are left to divide a much more than football, apple pie, and alma Court has said it much more clearly smaller amount. The alliance agree- mater. This is about basic fairness and than we ever could. So, I quote the ments have the purpose and effect of open competition. This is about a few Court, which I seem to be doing quite making the already-strong alliance conferences and a few bowls dividing up often these days: teams stronger while relegating the re- a huge multimillion-dollar pie among maining teams to a future of, at best, themselves. [O]ne of the classic examples of a per se mediocre, second-class status. In 1997, the eight participants in the violation of section 1 is an agreement be- Mr. President, in college football, alliance bowls, including the Rose Bowl tween competitors at the same level of the there can be no Cinderella stories. market structure to allocate territories in participants shared an estimated pot of order to minimize competition . . . This There can be no unranked, unknown $68 million while the 28 nonalliance Court has reiterated time and time again Coppin State going to the playoffs and bowl participants were left to divide that ‘‘horizontal territorial limitations . . . beating the SEC regular season cham- approximately $34 million. In short, are naked restraints of trade with no purpose pion, South Carolina, and going down the market has been divided such that except stifling of competition.’’ to the wire with a Big 12 power like eight teams rake in 70 percent of the This fundamental principle of anti- Texas. postseason millions, while 28 teams get A team like Coppin State could never trust law should guide the review of nothing more than the leftover 30 per- the Justice Department and the Fed- make it to the lucrative college foot- cent. ball postseason. You see, a team like This chart may have printing that is eral Trade Commission. In the words of that would be excluded because it’s not too small for the camera to pick up, the D.C. Circuit, ‘‘the hallmark of the in the College Bowl Alliance and its but it illustrates the nature of the [unlawful] ‘group boycott’ is the effort fans don’t travel well. It doesn’t even problem. of competitors to ‘barricade them- have its own band. The Alliance bowls—Fiesta, Sugar, selves from competition at their own College football has no room for a Orange, and Rose—totaled $68.2 mil- level.’ ’’ Sweet 16 that includes teams like St. lion. That is eight teams that benefited Today, we are calling on all inter- Joseph’s and the University of Ten- from the $68.2 million. The nonalliance ested parties to break the barricade. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2615 We are challenging the NCAA, the level to protect themselves from competition pointed out that the Bowl Alliance agree- Bowl Alliance commissioners, and the from non-group members who seeks to com- ments precluded a non-Alliance team from Alliance bowl committees to take ac- pete at that level. Typically, the boycotting going to the significant and lucrative Alli- ance Bowls—even when the non-Alliance tion to bring about genuine competi- group combines to deprive would-be competi- tors of a trade relationship which they need team had a better record and a better rank- tion to college football and the in order to enter (or survive in) the level ing than an Alliance team. In response, the postseason. wherein the group operates. . . . [The hall- Justice Department commenced a review of Postseason playoffs can be a reality mark of the ‘group boycott’ is the effort of the Bowl Alliance. for college football. It works for col- competitors to barricade themselves from C. ‘‘REVISED’’ COLLEGE BOWL ALLIANCE lege basketball, college baseball, and it competition at their own level.’ ’’ Thereafter, the College Bowl Alliance en- works for college football—at the Divi- Id. This fundamental principle should be tered into a revised agreement whereby the sion I–AA, Division II, and Division III kept in mind while reviewing the facts sur- 1997 New Year’s bowls would supposedly have levels. They all have a playoff system, rounding the College Bowl Alliance. two of the six Alliance slots ‘‘open to any all of them except Division I. A. ORIGINAL COLLEGE BOWL ALLIANCE team in the country with a minimum of AGREEMENT eight wins or ranked higher than the lowest- The opportunity to compete in ranked conference champion from among the postseason bowls should be based on In 1991, five college football conferences (ACC, Big East, Big Eight, Southeastern, and champions of the Atlantic Coast, The Big merit, not membership in an exclusive Southwestern conferences) and the independ- East Football, The Big Twelve and South- coalition. ent University of Notre Dame, formed a coa- eastern conferences.’’ At that point, Senator McConnell con- So, Mr. President, I thank my good lition with the prestigious College Bowl friend and colleague from Utah, Sen- cluded that the ‘‘new arrangement seems to Committees of the Federal Express Orange, open competition to the top tier bowl ator BENNETT, for his fine work on this USF&G Sugar, IBM Fiesta, and Mobil Cotton games.’’ (Letter from Honorable Mitch 1 issue. And also Senator ENZI for his Bowls (‘‘Alliance bowls’’). The Pac-10 and McConnell to the College Football Associa- great work on this. We are hoping for Big Ten also participated in the coalition, tion, December 21, 1995.) The Justice Depart- the best. Obviously, the solution to although their champions played in the Rose ment apparently made a similar determina- Bowl under a separate agreement. tion. this problem that we would all prefer is The coalition agreement was expressly de- for the organizations themselves to Notwithstanding the promise of open com- signed to reduce competition in the petition, the Alliance announced that it solve the problem. But, if they do not, postseason match-ups of teams and bowls, would consider non-Alliance teams for the it seems pretty clear to each of us that and to guarantee every coalition team an op- ‘‘at-large’’ openings only if they signed a this is an antitrust case the Justice portunity to vie for a lucrative, high-visi- special restrictive agreement. The Alliance Department should pursue. bility bowl. The contract specifically guar- demanded that the terms of this ‘‘participa- With that, Mr. President, I yield the anteed that each coalition team participat- tion agreement’’ be kept confidential. Never- floor. ing in any of the Alliance bowls would re- theless, a key term of this agreement appar- ceive a minimum payout based on similar ently was that the at-large participants had EXHIBIT 1 terms. Typically, an Alliance bowl team has to promise to accept an offer from an Alli- U.S. SENATE, taken home a purse in excess of eight million ance bowl over any offers from non-Alliance Washington, DC, March 14, 1997. dollars. Moreover, the original Request for bowls. In the words of the Alliance, ‘‘[t]here Hon. Joel I. Klein, Proposal contained a clause requiring that are no ‘pass’ or withdrawal options.’’2 Acting Assistant Attorney General, Antitrust no Alliance bowl or Alliance team could D. CONTINUED BOYCOTT OF NON-ALLIANCE Division, U.S. Department of Justice, Wash- compete in time slots opposite other Alli- TEAMS ington, DC. ance bowls. The potential antitrust fears became a re- DEAR MR. KLEIN: We believe that there is The agreement also stipulated the proce- ality after the 1996 regular season when the substantial evidence of serious violations of dure by which the top-ranked and lesser- Section 1 of the Sherman Act (15 U.S.C. 1) by Alliance continued its apparent boycott of ranked Alliance teams were matched up with non-Alliance teams. During the 1996 season, the College Bowl Alliance (‘‘Alliance’’). participating Alliance bowls. Three con- The Alliance is a coalition of top college Brigham Young University and the Univer- ferences were guaranteed berths at a specific sity of Wyoming, members of the non-Alli- football conferences and representatives of Alliance bowl regardless of the ranking of top postseason college football bowls. Over ance Western Athletic Conference, had ‘‘a their champion team. Any team not in the minimum of eight wins or [were] ranked the past few years, the Alliance has entered Alliance, however, was precluded from com- higher than the lowest-ranked [Alliance] into a series of restrictive agreements to al- peting in any of the Alliance bowls, regard- conference champion. . . .’’ locate the market of highly-lucrative New less of its record or ranking. BYU, in fact, met both of the Alliance cri- Years’ bowls. By engaging in this market al- The Alliance conferences and Notre Dame teria by compiling a remarkable 13–1 record location, the coalition bowls and the coali- received substantial benefits from the coali- and earning a ranking of the fifth best team tion teams have ensured that they will re- tion agreements. They were assured a berth in the country. This record and ranking was ceive tens of millions of dollars, while the re- at a major postseason bowl—regardless of superior to nearly every Alliance team, in- maining teams and bowls are left to divide a their topmost ranking. Further, all of the cluding the University of Texas, 8–5 record much smaller amount. In 1996, for example, participants in the Alliance bowls were guar- and a No. 20 ranking; Pennsylvania State the eight Alliance bowl participants (includ- anteed to receive a substantial minimum University, 11–2 record and a No. 7 ranking; ing the Rose Bowl participants) went home payment and national visibility. Such visi- Virginia Tech, 10–2 record with a No. 13 rank- with a total of $68 million, while the 28 non- bility in turn enhanced fan support, alumni ing; and Nebraska, 11–2 record and a No. 6 Alliance bowl participants shared a pot of $31 fund-raising, and athletic recruiting for the ranking. Nevertheless, BYU did not receive million. Moreover, the Alliance agreements bowl teams. an at-large invitation to play in any of the have the additional purpose and effect of By dividing the lucrative market of major prestigious Alliance bowls; while Texas, making the already-strong Alliance teams postseason bowls among themselves, the Al- Penn State, Virginia Tech, and Nebraska all stronger while relegating the remaining liance Conferences and Notre Dame ex- were invited to play in various Alliance teams to a future of, at best, mediocre, sec- pressly and effectively excluded a substan- bowls, with the attendant financial and re- ond-class status. tial number of the other Division 1A teams cruiting benefits. Similarly, Wyoming fin- As you will recall, the Antitrust Division from any of the prestigious New Year’s ished with an impressive 10–2 record and a commenced a review of this coalition in late Bowls. The excluded teams were those which No. 22 ranking, but was not afforded an offer 1993. Shortly thereafter, the Alliance agreed were either independent or in non-Alliance to play in the Alliance bowls. that the top bowls would be open to all conference such as the Western Athletic Con- E. FORMATION OF THE ‘‘SUPER ALLIANCE’’ teams based on merit. The 1997 New Year’s ference, the Big West, and the Middle Amer- In June 1996, the Alliance lock on college Bowls, however, proved to the contrary. We ica Conference. football power was strengthened as the Rose are writing to advise you of these recent ma- B. INITIAL REQUEST FOR ANTITRUST terial events and to urge that you initiate a INVESTIGATION formal investigation into this matter. 2 In the fall of 1996, the Alliance sent out ‘‘partici- In response to these market allocations, pation offers’’ to presumably all of the non-Alliance I. BACKGROUND Senator Mitch McConnell formally requested teams. Both Brigham Young University and the Uni- Courts have routinely declared that agree- that the Justice Department investigate the versity of Wyoming signed the restrictive participa- ments among competitors to allocate terri- intent and effect of the Bowl Alliance agree- tion agreements, but included a proviso stating they tories and exclude would-be competitors are ments. Specifically, Senator McConnell would not agree to all of the restrictive terms. Spe- a violation of Section 1 of the Sherman Act. cifically, the University of Wyoming explained that See, e.g., Smith v. Pro Football, Inc., 593 ‘‘the University . . . and the Western Athletic Con- 1 The Bowl Alliance was originally called the Bowl ference will not comply with any expressed or im- F.2d 1173, 1178 (D.C. Circuit 1978). As the D.C. Coalition. Additionally, pursuant to the dissolution plied provision that prevents other members of the Circuit has explained: of the Southwest Conference, the Big Eight became WAC from participating in bowls that compete with ‘‘The classic ‘group boycott’ is a concerted the Big 12, and the Cotton Bowl dropped out of the any Alliance Bowl, or with any other provisions that attempt by a group of competitors at one coalition. might violate antitrust laws.’’ S2616 CONGRESSIONAL RECORD — SENATE March 20, 1997 Bowl agreed to join the Alliance, which guar- ance teams from multi-million dollar oppor- down restraints). The Alliance agreements anteed the Big Ten and Pac–10 conferences tunities. clearly restrict such a right for both the automatic berths in an Alliance bowl. The Courts have routinely condemned such non-Alliance bowls and the non-Alliance Alliance has officially renamed itself the market allocations and group boycotts under teams. See also United States v. Paramount ‘‘Super Alliance.’’ the per se rule. See Fashion Originators’ Guild Pictures, Inc., 334 U.S. 131, 154 (1948) (striking II. SHERMAN ACT PROHIBITS MARKET v. Federal Trade Comm’n, 312, U.S. 457 (1941) down block booking because it ‘‘eliminate[s] ALLOCATIONS AND GROUP BOYCOTTS (group boycott); United States v. Addyston the possibility of bidding for films theater by The Sherman Act prohibits the Alliance Pipe & Steel Co., 85 Fed. 271 (6th Cir. 1898), theater. [Such agreements] eliminate the op- agreements. Section 1 of the Sherman Act is mod., 175 U.S. 211 (1,899) (market division). As portunity for the small competitor to obtain violated where: (1) there is an agreement, (2) the Supreme Court has explained: the choice first runs, and put a premium on [o]ne of the classic examples of a per se that unreasonably restrains trade, and (3) af- the size of the circuit.’’) violation of section 1 is an agreement be- fects interstate commerce. 15 U.S.C. 1. It is (B) NO PRO-COMPETITIVE EFFECTS tween competitors at the same level of the beyond dispute that interstate commerce is market structure to allocate territories in The Alliance cannot establish that its re- affected by the millions of dollars that flow order to minimize competition. . . . This strictive agreements produce any pro-com- through the Alliance bowls to the Alliance Court has reiterated time and time again petitive effects. In fact, the Alliance’s own conference teams. Thus, our analysis focuses that ‘‘horizontal territorial limitations . . . language reveals that it did not have even a on the existence of agreements and the un- are naked restraints of trade with no purpose pro-compeititve purpose. The Alliance states reasonable restraint of trade. except stifling of competition.’’ that its ‘‘framework enhances the quality of A. THE ALLIANCE IS LINKED BY AT LEAST THREE United States v. Topco Associates, 405 U.S. postseason college football match-ups, in- AGREEMENTS 596, 608 (1972) (citations omitted). creases the likelihood of pairing the two The Alliance coalition is linked by a mini- For example, in United States v. Brown, 936 highest ranked teams in the nation in a bowl mum of three agreements that limit com- F.2d 1042 (9th Cir. 1991), the Ninth Circuit game, and provides excitement for the petition. First, the Alliance conferences—the held that an agreement between two bill- coaches, players, and fans.’’ According to a ACC, Big East, Big 12, Big Ten, Pacific 10 and board advertising companies providing that recent Sports Illustrated article, the purpose the Southeastern conferences—have hori- each would not compete with the other’s and effect of the Alliance is not to determine zontally agreed not to compete with each former billboard leaseholds for one year was the true national champion, but rather ‘‘is other for the top postseason bowls. Next, the per se illegal. Similarly, the agreement to avoid the creation of NCAA-run national Alliance bowls—the Sugar, Fiesta, and Or- among the Alliance bowls not to compete playoffs. .. . The Alliance exists to keep the ange bowls—have horizontally agreed not to with each other for teams should be per se il- power and the money in the hands of the Al- compete with each other for the top-ranked legal. Id. Likewise, the agreement among the liance bowls and the four conferences that teams. Third, the Alliance conferences and Alliance teams not to compete with each receive guaranteed berths in those bowls. the Alliance bowls have vertically agreed to other for the Alliance bowls should be struck . . . Any national championship games that further their horizontal agreements by limit- down. Id. result are a bonus.’’ Layden, Tim, ‘‘Bowling ing participation with non-Alliance teams (2) RULE OF REASON for Dollars,’’ Sports Illustrated, Dec. 16, 1996 and non-Alliance bowls. These agreements The Alliance agreements also fail under a at 36. individually and in their totality dem- rule of reason analysis. Under the rule of The Alliance goals fall far short of actually onstrate ‘‘a conscious commitment to a com- reason, courts require a plaintiff to show allowing the best teams to compete in the mon scheme designed to achieve an unlawful that there are significant anti-competitive best bowls. The 1996 season is a painful re- objective.’’ Monsanto Co. v. Spray-Rite Serv. effects. See NCAA v. Board of Regents, 468 U.S. minder of this fact. Instead of consumers Corp., 465 U.S. 752, 768 (1984). 85, 100–01 (1984). Once this burden has been getting to watch a highly-competitive Moreover, strong evidence suggests the ex- met, the defendant must show that there are match-up between No. 5 ranked BYU and an- istence of an ‘‘anti-overlap’’ agreement. The pro-competitive effects, which then shifts other top-ranked team, they were forced to coalition’s original Request for Proposal the burden back to the plaintiff to dem- endure two blow-outs in the Alliance: the Fi- contained an explicit ‘‘anti-overlap’’ clause. onstrate that such effects can be achieved in esta Bowl where No. 7 Penn State defeated Under the terms of such an agreement, no a less restrictive manner. Id. at 120 (striking No. 20 Texas 38–15, and the Orange Bowl, Alliance bowls or teams could compete in down restraint on broadcast of college foot- where No. 6 Nebraska trounced No. 9 Vir- time slots opposite other Alliance bowls. Al- ball where there was no sufficient pro-com- ginia Tech 41–21. These match-ups were though this clause was officially removed petitive justification). based on membership in the Alliance, not on following a letter of protest from the Holi- 3 (A) ANTI-COMPETITIVE EFFECTS merit. day Bowl, the Alliance’s exclusive prime tel- In short, the Alliance ‘‘framework’’ fails to evision slots are strong indicators of an anti- As set forth above, the anti-competitive ef- fects of the Alliance on college football gen- enhance competition, as well as failing to overlap agreement. Such circumstantial evi- meet its own stated goals. The rule of reason dence may be used to prove the existence of erally and the New Year’s bowls specifically are undeniable. Instead of having all the inquiry must end here where the anti-com- an agreement. See id. petitive restrictions are ‘‘not offset by any B. THE ALLIANCE AGREEMENTS UNREASONABLY bowls bidding for all the teams, a super-coa- lition of powerful bowls and powerful teams pro-competitive justifications sufficient to RESTRAIN TRADE UNDER EITHER A PER SE save the plan . .. .’’ NCAA, 468 U.S. at 97–98. TEST OR A RULE OF REASON TEST has divvied up the prized opportunities among themselves. As the Supreme Court III. CONCLUSION The effect of these interlocking agree- stated in NCAA v. Board of Regents, ‘‘[t]he ments is to unreasonably restrain trade. Based on the facts available at this time, it anti-competitive consequences . . . are ap- Courts determine the reasonableness of a re- is clear that the Alliance agreements fail parent . . . [when] [i]ndividual competitors straint by applying either a per se test or a under either a per se rule or a rule of reason. lose their freedom to compete.’’ 468 U.S. at rule of reason test. See, e.g., NCAA v. Board of As the Supreme Court has explained, ‘‘the 107–08. Regents, 468 U.S. 85, 100–01 (1984). The Alli- essential inquiry remains the same—whether The facts of the 1996 season indicate that or not the challenged restraint enhances ance agreements fail under either analysis. non-Alliance teams were not allowed to (1) PER SE ANALYSIS competition.’’ NCAA, 468 U.S. at 104. The re- genuinely compete for one of the lucrative strictive Alliance agreements reduce com- The facts underlying the Alliance warrant Alliance bowls. For example, BYU was not petition in the lucrative New Year’s bowls, the stringent per se analysis. Although invited to an Alliance bowl in spite of having and guarantee every Alliance team an oppor- courts have often analyzed regulations of a ‘‘minimum of eight wins’’ and being tunity to reap the short- and long-term prof- sports organizations under a rule of reason, ‘‘ranked higher than’’ four of the Alliance its of a high-visibility bowl. The Alliance not see, e.g., Justice v. NCAA, 577 F. Supp. 356, 380 teams participating in Alliance bowls. More- only perpetuates the current power struc- (D. Ariz. 1983) (citations omitted), such a le- over, non-Alliance bowls were unable to ture, but, in fact, exacerbates it. The strong nient review is inappropriate where the pur- genuinely compete for the Alliance teams in get stronger, while the rest get weaker. pose of the regulations is to eliminate busi- light of the anti-overlap rule and the ‘‘no- As policymakers and football fans, we urge ness competition. See, e.g., id. (citing M & H pass’’ rule—the latter of which mandated the Justice Department to use its statutory Tire Company, Inc. v. Hoosier Racing Tire that all Alliance-eligible teams must accept enforcement powers to break this lock on Corp., 560 F. Supp. 591, 604 (D. Mass. 1983); offers from Alliance bowls—regardless of Blalock v. Ladies Professional Golf Assoc’n, 359 how lucrative a non-Alliance bowl offer F. Supp. 1260, 1264–68 (N.D. Ga. 1973)). The Al- might be. 3 Additionally, there is evidence which indicates liance cannot cloak its purpose and effect These anti-competitive effects are in direct that the decision was not based on consumer pref- under the garb of NCAA self-regulation, cf., contravention of well-established Supreme erence. One poll is reported to have shown that fans Justice, 577 F. Supp. at 379 (rule of reason is Court precedent. In NCAA, the Court ex- would have preferred the following teams in an Alli- appropriate where NCAA enforced rules plained that ‘‘ ‘[i]n a competitive market, ance bowl: BYU—48%, Penn State—22%, and Colo- rado—21%. As the Court has stated, ‘‘[a] restraint against compensating athletes), where the each college fielding a football team would that has the effect of reducing the importance of underlying facts demonstrate that business- be free to sell the right to . . . its games for consumer preference . . . is not consistent with [the] minded entities acted with the clear intent whatever price it could get.’ ’’ NCAA, 468 U.S. fundamental goal of anti-trust law.’’ NCAA, 468 U.S. to exclude non-Alliance bowls and non-Alli- at 106 (quoting district court and striking at 107 (citation omitted). March 20, 1997 CONGRESSIONAL RECORD — SENATE S2617 college football. We have every reason to be- the alliance, that served to trash two widely Mr. BENNETT. Yes, I yield. lieve that your investigation will reveal ad- accepted myths. Mr. MCCONNELL. I am not sure it is ditional evidence of the Alliance’s anti-com- Myth No. 1: The purpose of the alliance is a question, but rather an observation. petitive purpose and effects. Action must be to determine the true national champion. Also, the BYU Cougars, as a result of taken to restore genuinely open competition Sports Illustrated says: to college football and to postseason bowls. the Cotton Bowl appearance probably— Sincerely, Not even close. The purpose of the alliance I don’t have the figure in front of me, is to avoid the creation of NCAA-run na- MITCH MCCONNELL. maybe staff does—probably got about tional playoffs. Such playoffs would put the CRAIG THOMAS. $2.5 million as opposed to the roughly NCAA in charge of the beaucoup dollars the ROBERT F. BENNETT. $8 million that would have been avail- event would generate. The alliance exists to MIKE ENZI. keep the power and the money in the hands able had they been selected, as they ob- The PRESIDING OFFICER. The Sen- viously should have been selected, for ator from the home State of the BYU of the alliance bowls and the four con- ferences that receive guaranteed berths in an alliance bowl. We are talking not Cougars, the Senator from Utah. those bowls. just about bragging rights here, we are Mr. BENNETT. Mr. President, I talking about real money. We are talk- thank you for that commercial. I must, A fairly direct statement to the point raised by my friend from Kentucky. ing about a $6 million differential, Mr. in the spirit of full disclosure, report President. So this is not just putting a that I am not a graduate of Brigham Now, Sports Illustrated goes on: Myth No. 2: The alliance bowls exist to trophy in the school gym. This is a big Young University but of the University business with huge economic implica- of Utah, which happens to be ranked in give fans the best possible games. Bowls are businesses, with major corporate tions. the top three in the current basketball sponsorship and huge television deals. Their Mr. BENNETT. The Senator from season along with the University of purpose is to fill stadiums, generate TV rat- Kentucky is exactly correct. One of the Kansas and the University of Ken- ings, and create precious ‘‘economic impact’’ reasons, I am sure, why the Senators tucky. I wish the Final Four could in- on their communities in the days leading up from Wyoming are joining in this ef- clude Utah, Kentucky, and Kansas, but to the games. fort is that under the rules of the West- I am afraid Utah and Kentucky will Now, Mr. President, comes the para- ern Athletic Conference, Brigham have their showdown prior to the Final graph that makes it clear that Sports Young would not take that money Four and only one of the two will make Illustrated is not necessarily friendly home by itself. It would be shared with it. If it is not Utah—as I am confident, to BYU in every circumstance, but the other schools in the conference, of course, that it will be—I hope, for summarizes why this decision was one of whom posted a sterling record the sake of my friendship with the Sen- made. themselves, the Wyoming Cowboys. ator from Kentucky, that it will be BYU fails, not only on the strength-of- They were frozen out of any bowl ap- Kentucky that goes to the Final Four schedule issue but also on the economic-im- pearance at all on New Year’s Day. with Kansas. pact side. Bowls, particularly the Sugar They cannot even salve that particular Bowl, thrive on bar business. One of the te- But the very fact that we can have wound with the money Brigham Young this conversation about the NCAA un- nets of the Mormon faith is abstinence from alcohol. You do the math. In the French would distribute throughout the West- derscores the importance of what we ern Athletic Conference with participa- are talking about with respect to foot- Quarter, they don’t call the most famous thoroughfare Milk Street. ‘‘We used to go to tion in an alliance bowl. ball. These teams will get to the Final the Holiday Bowl, and our fans would bring As I said before, the money comes Four in basketball on the playing field a $50 bill and the Ten Commandments, and primarily from television revenues, and not in the boardroom. The decision break neither’’ says BYU Coach LaVell Ed- and by creating a restraint-of-trade will be made on the basis of how good wards. Nebraska fans, on the other hand, circumstance to hold those television they are and how entertaining they can travel like Deadheads, and spend like tour- revenues for a certain set of con- be on television by virtue of their skill, ists. Choosing bowl teams based in significant ferences, the leaders of the alliance rather than how sharp the negotiators have damaged every other conference were that put together the stacked part on the rabidity and spending habits of their fans isn’t fair to the audience watching in the country, including schools like deck in advance of the final event. the bowls at home. For all its flaws, BYU Wyoming, which would have received a I have a chart here that reports what would even be a more intriguing opponent significant amount of money had it happened in the last bowl cir- for Florida State than a team the Seminoles been available to the Western Athletic cumstance. Every team in color, have already beaten. Unfortunately, money Conference. whether it is the two in yellow, the two rules all matchups. The message out of the alliance is: in orange, or the two in red, appeared Mr. President, BYU did go to a WAC need not apply, regardless of how in an alliance bowl. postseason game—the Cotton Bowl. their teams are or have ever been. The two teams in white, No. 2 and The Presiding Officer from Kansas and I yield the floor. No. 4, that did not appear in an alli- this Senator from Utah entered into a Mr. ENZI addressed the Chair. ance bowl, appeared in the Rose Bowl, friendly wager, which fortunately this The PRESIDING OFFICER. The Sen- which is now part of the alliance. Only Senator from Utah won when BYU beat ator from Wyoming. one of the top seven teams did not ap- the team from Kansas. Mr. ENZI. Thank you, Mr. President. pear in a lucrative alliance bowl—and Satisfying as that victory was for Today, I am pleased to join my col- that happens to be the team from BYU. Brigham Young University, the point leagues, Senator THOMAS from Wyo- Rather than go on in a parochial made by Sports Illustrated is still im- ming, Senator MCCONNELL from Ken- fashion, as the Senator from the State portant. It is the fans on television tucky, and Senator BENNETT from in which BYU appears, I would like to who support the tremendous amount of Utah, in urging the Justice Depart- summarize this circumstance from a money available to these alliance ment to exercise its enforcement pow- source that is clearly not parochial and bowls, by tuning in and being available ers to break the current anticompeti- not particularly biased to BYU as a as an advertising audience. tive lock on college football, if football school. It is those fans who were deprived of does not do it itself. I am quoting from the article that the opportunity of seeing the best I have a special interest in college appeared in Sports Illustrated on the game available on New Year’s Day. athletics. I followed college athletics 16th of December, 1996, entitled, ‘‘Bowl- So for that reason, I am delighted to for some years, and I enjoy the excite- ing For Dollars.’’ In the article they join in this effort to see to it that we ment and competition of college bas- made it very clear what the real cri- do something to see that the antitrust ketball and football. I especially enjoy teria was here. Quoting from the arti- laws apply here and that a conspiracy the competition in the Western Ath- cle: in a boardroom does not take place to letic Conference. My son, Brad, played Sunday’s selections shed revealing light on siphon off the heavy money to one basketball at the University of Wyo- the alliance. . . , It was the shunning of Brigham Young, however, despite the fact group at the expense of not only the ming, and so I watched numerous WAC that the Cougars have a higher ranking and other group but also of the fans. games, both as a Cowboy fan and as a a better record than either of the at-large Mr. MCCONNELL. Will the Senator father. I am disappointed to see the teams chosen (Nebraska and Penn State) by yield for a question? University of Wyoming and other very S2618 CONGRESSIONAL RECORD — SENATE March 20, 1997 competitive WAC teams kept out of the million. That was eight teams. In con- BYU’s victory over Wyoming that top college bowl games because of the trast, the 28 nonalliance participants pulled BYU to that level. That is why anticompetitive College Bowl Alliance. divided a total of $31 million. This dis- I am happy to join with him in saying These clandestine agreements keep our parity in financial return is not good we both got robbed. players on the bench and in the grand- business. It results in a built-in advan- The PRESIDING OFFICER. The Sen- stand when they should be out there on tage for alliance teams in the areas of ator from Minnesota has the floor. the field. future recruiting and program develop- Mr. GRAMS. Thank you very much, I think it is interesting we are dis- ment. Mr. President. cussing the anticompetitive effects of The alliance agreement provides un- Not to take away from the debate of the college football alliance in the lawful economic protection for its my fellow Senators and friends here, I midst of the NCAA college basketball members to the detriment of college still have to just root on our Minnesota tournament. The NCAA basketball football generally. The alliance’s mar- Gophers tonight as they take on playoff system, while not perfect, aims ket allocation agreements have, in Clemson in the ‘‘Sweet Sixteen’’ and to include the finest 64 college basket- turn, hurt consumers. One poll has hope and wish them the best. ball teams in the Nation. In this tour- shown that college football fans would f nament, any of those 64 teams has the have preferred to have seen several THE 90TH BIRTHDAY OF HAROLD possibility of winning the national nonalliance teams, including Brigham STASSEN championship. This arrangement is de- Young University and the University of Mr. GRAMS. Mr. President, I rise signed to maximize competition for the Colorado, in top bowl games. These today to pay tribute to the accomplish- benefit of all the players, the fans, and agreements amounted to changing the ments and contributions of a great the schools involved. In contrast, the rules with 2 minutes left in the fourth Minnesotan, Harold Edward Stassen, as College Bowl Alliance has decreased quarter. These are precisely the type of he approaches his 90th birthday. the competitiveness of college football market allocation agreements the Harold Stassen began to make his to the detriment of the fans and Sherman Antitrust Act was passed to mark on our Nation’s history when he schools involved. prohibit. was elected Governor of Minnesota in The alliance is a coalition of top I strongly urge the Justice Depart- 1938 at the young age of 31. He was football college conferences and rep- ment and the Federal Trade Commis- known as the Boy Governor, he was resentatives of the top post-season col- sion to use their statutory powers to twice reelected and remained the lege football bowls. Over the past few end the alliance’s anticompetitive youngest chief executive of any State years, the alliance has entered into a stranglehold on college football if they until 1943. number of restrictive agreements de- cannot do it on their own. In 1943, Mr. Stassen resigned from of- signed to divide the market of the most I thank the Chair and yield the floor. fice as Governor to accept a commis- highly lucrative New Year’s football Mr. GRAMS addressed the Chair. sion in the U.S. Navy. There, he served bowls. These agreements effectively The PRESIDING OFFICER. The Sen- honorably on the staff of Adm. William preclude the nonalliance teams from ator from Minnesota. Halsey until 1945 and attained the rank having access to the most prestigious Mr. McCONNELL. Will the Senator of Captain. During World War II, Mr. and lucrative bowl games, even when from Minnesota just allow me a couple Stassen earned the Legion of Merit one of the nonalliance teams has a bet- minutes? award, was awarded six major battle ter record and a higher national rank- The PRESIDING OFFICER. The Sen- stars, and was otherwise decorated ing than any of the alliance teams. ator from Kentucky. three times. These restrictive agreements are bad Mr. McCONNELL. Mr. President, I One little known fact about Harold for football, and they violate Federal thank my good friend from Wyoming Stassen is that he was personally re- antitrust law. for his important contribution to this sponsible for freeing thousands of Just this last January, as you have issue and express to our colleagues American prisoners of war in Japan heard, 2 of the top 25 ranked football that we intend to stay interested in shortly before that country surren- teams in the country fell victim to this this. There is some indication in to- dered in World War II. anticompetitive alliance. Brigham day’s paper that some accommodation According to a 1995 newspaper ac- Young University, a member of the to the WAC and to the Conference USA count, Mr. Stassen spent 2 weeks plan- nonalliance Western Athletic Con- may be forthcoming. But I want to re- ning the evacuation of some 35,000 pris- ference, finished the year with a re- assure all of those who have been left oners from POW camps scattered markable record of 13 and 1 and was out that the antitrust case is clear and throughout Japan. At the time, there ranked 5th in the Nation. Another that the four of us plan to continue our was considerable anxiety that Japanese member of the WAC, the University of interest in this, if the problem is not soldiers would choose to retaliate Wyoming, finished its regular season solved by the organizations them- against the prisoners for their coun- with a formidable 10 and 2 record and a selves. I thank my friend from Wyo- try’s loss in the war. national ranking of 22, but it was not ming for his important contribution. On August 29, 1945, before the official given an offer to play in any of the alli- Mr. BENNETT addressed the Chair. surrender date, Mr. Stassen actually ance bowls. In fact, as has been men- The PRESIDING OFFICER. The Sen- set foot in Japan and began what would tioned, despite its excellent year, the ator from Utah. be the largely successful implementa- University of Wyoming was not given Mr. BENNETT. Mr. President, I tion of his evacuation plan. the opportunity to play in any post- would like to add one more statement After World War II, Harold Stassen season bowl game. This came as a great for the edification and information of was appointed by President Franklin disappointment to the Cowboy fans na- Senators. The Senator from Wyoming Roosevelt as a delegate to the 1945 San tionwide. referred to his team’s record of 10 and Francisco conference on the founding The alliance is bad for football since, 2. One of those two was a loss to of the United Nations. He is now the as a practical matter, it prohibits Brigham Young University literally in only living American who participated teams from outside the alliance play- the last seconds with a field goal that in the drafting, negotiating, and sign- ing the top bowl games. The football no one expected anybody could make ing of the United Nations Charter. games are now taking a back seat to that caused the game to go into over- Mr. Stassen went on to become an in- the money games being played behind time, and then Brigham Young won in fluential advisor throughout the ad- doors closed to both players and the overtime. ministration of President Eisenhower. fans. This has resulted in alliance If that had gone the other way, it This included serving as a member of teams having an institutional advan- would have been Wyoming that would the National Security Council, as the tage in both bowl receipts and future have earned the position that BYU was Director of the Foreign Operations Ad- recruiting. denied. They would have beaten the ministration, and as the Deputy Rep- In 1996, the eight alliance bowl par- fifth ranked team, would have had a 10 resentative of the United States to the ticipants, including the teams playing and 1 record and would have been a United Nations Disarmament Commis- in the Rose Bowl, split a total of $68 clear choice for an alliance bowl. It was sion. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2619 Mr. Stassen also has made many con- in the United States should offer our Mr. AKAKA. Mr. President, I thank tributions outside of public life, includ- farmers consistency, flexibility and my colleague for his appreciation and ing his service as the president of the market access for their goods. Farmers wish him well during this break. University of Pennsylvania from 1948 view the Federal Government, like the (The remarks of Mr. AKAKA pertain- to 1953. weather and seasons, as an outside ing to the introduction of S. 490 are lo- However, he will be best remembered force to be dealt with. I want to ensure cated in today’s RECORD under ‘‘State- for his life-long interest in the United that the Federal Government is a part- ments on Introduced Bills and Joint Nations. Since his involvement in the ner with agriculture, instead of an Resolutions.’’) founding of the United Nations, Harold east-coast overseer. f Stassen has maintained a dedicated This year, the wheat, barley, canola, ASIAN-AMERICANS AND THE PO- and passionate commitment to pea and lentil, potato, hops, sweet LITICAL FUNDRAISING INVES- bettering this international organiza- cherry, and apple associations, as well TIGATION tion. as countless other growers’ organiza- In fact, he has published numerous tions, have visited me in Washington, Mr. AKAKA. Mr. President, as we proposals for reforming the United Na- DC. From our discussions, I have com- prepare for hearings on campaign fund- tions Charter and has made it his per- piled a list of broad agriculture prior- raising irregularities, I would like to sonal mission to educate the American ities on which I will focus in the 105th express concern about the negative im- public about the U.N. Congress. pact that this issue is having on the Just 2 years ago, we celebrated the I have always had, and will retain, image of the Asian-American commu- 50th anniversary of the United Nations. open channels of communication with nity. Mr. President, Asian-Americans are On April 13th of this year, Harold Stas- my State’s agriculture communities. an important part of our body politic. sen will celebrate his 90th birthday. A Firsthand knowledge of the situations They have made significant contribu- wide array of national and State offi- and problems that farmers and growers tions to politics, business, industry, cials will come together on this day in face is, for me, an invaluable tool as I science, sports, education, and the arts. St. Paul, MN, to recognize Mr. Stassen. work on issues that impact their way Men and women like Senator DAN As we continue our bipartisan efforts of life. So, I intend to meet with farm- INOUYE, Kristy Yamaguchi, Tommy to renew and strengthen the relation- ers, ranchers, irrigators, processors, Kono, I.M. Pei, David Henry Hwang, An ship between the United States and the shippers, and other agricultural inter- Wang, and Ellison Onizuka have en- United Nations, I think it is fitting to ests during the April recess to discuss hanced and invigorated the life of the honor one American with a distin- these matters. guished record of public service who Nation. For 3 days I will tour eastern Wash- Indeed, Asian-Americans have played has long supported that effort. ington to discuss private property As the chairman of the International a fundamental part in making this rights, tax reform, salmon recovery is- country what it is today. Asian immi- Operations Subcommittee, the U.S. sues, agriculture research, transpor- Congressional Delegate to the United grants helped build the great trans- tation issues, the Endangered Species continental railroads of the 19th cen- Nations General Assembly, and also a Act, trade policies, regulatory relief, fellow Minnesotan, I want to wish Har- tury. They labored on the sugar planta- the future of the Hanford reach and the tions of Hawaii, on the vegetable and old Stassen a very happy 90th birthday reform of immigration policies impor- and congratulate him for his accom- fruit farms of California, and in the tant to the agricultural communities gold mines of the West. They were at plishments and many positive con- throughout Washington State. tributions to the history of the State the forefront of the agricultural labor During my visits to Yakima, Spo- of Minnesota, the United States, and movement, especially in the sugarcane kane, and the tri-cities, I will discuss the United Nations. and grape fields, and were instrumental my top 10 priorities for agriculture, re- Thank you very much, Mr. President. in developing the fishing and salmon fine them, and solicit feedback from I yield the floor. canning industries of the Pacific the various agriculture interests that Mr. GORTON addressed the Chair. Northwest. They were importers, mer- The PRESIDING OFFICER. The Sen- are affected by a wide range of intru- chants, grocers, clerks, tailors, and ator from Washington. sive Federal policies. My visit to east- gardeners. They manned the assembly ern Washington will give me the oppor- f lines during America’s Industrial Revo- tunity to continue discussions already lution. They operated laundries, res- AGRICULTURE IN WASHINGTON begun with Washington State’s farm- taurants, and vegetable markets. They STATE ers, explain my intentions, and reaf- also served our Nation in war: the Mr. GORTON. Mr. President, agri- firm my commitment to the agri- famed all-nisei 100th/442d combat team culture is a cornerstone of Washington culture community. of World War II remains the most deco- State’s economy. Washington State To reiterate, the agriculture commu- rated unit in U.S. military history. farmers produce over $5.8 billion worth nity’s interests are Washington State’s Despite their historical contribu- of agriculture products, employ more interests—Washington’s economic tions, Asian immigrants and Asian- that 100,000 people, and export nearly a health and job base are greatly affected Americans have suffered social preju- quarter of all their goods to inter- by the success or failure in this sector dice and economic, political, and insti- national markets. Without a doubt, of our economy. I will therefore pursue tutional discrimination. They were ex- Agriculture is Washington’s No. 1 in- my 10 priorities, which I believe will cluded from churches, barber shops, dustry. help build a stronger future for Wash- and restaurants. They were forced to As I travel around the State I have ington State. sit in the balconies of movie theaters listened closely to the comments, sug- Two years ago agriculture commu- and the back seats of buses. They were gestions, and concerns of our State’s nities in eastern Washington gave me required to attend segregated schools. agriculture community. Farmers and the opportunity to work for them, rep- They were even denied burial in white ranchers in Washington have without resent their interests, and fight against cemeteries—in one instance, a deco- exception told me they want a smaller policies that threaten their livelihood. rated Asian-American soldier killed in and less intrusive Government; a Gov- As their Senator, I will be working ag- action was refused burial in his home- ernment that lets farmers, ranchers, gressively to promote their interests in town cemetery. Rather than receive and local communities make decisions the 105th Congress. equal treatment, Asians on the whole for themselves; and most importantly, Mr. President, I take this occasion to were paid lower wages than their white a Government that will step up to the thank my friend and colleague from counterparts, relegated to menial jobs, plate and fight for issues that affect Hawaii who has been here longer than or forced to turn to businesses and in- their lives. As Washington’s senior I have and has waited patiently for rec- dustries in which competition with Senator, I plan to work for just that. ognition, allowing my short remarks to whites was minimized. The web of Federal practices, laws precede his longer ones. He is a kind For more than 160 years, Asians were and regulations governing agriculture and thoughtful gentlemen. also refused citizenship by a law that S2620 CONGRESSIONAL RECORD — SENATE March 20, 1997 denied their right to naturalize, a law and staged strikes and acts of violence of more established, affluent groups that remained in effect until 1952. against Asians. Employers cultivated such as Chinese-Americans and Japa- Without citizenship, Asians could not such ethnic antagonism as a stratagem nese-Americans as the community vote, and thus could not seek remedies to depress wages for all workers, Asian norm. They do not realize that the through the Tammany Halls or other and European. Nativists used Asians as community is extremely diverse in political organizations as did other im- a foil for their racist philosophies. terms of ethnicity and recency of im- migrant groups. The legacy of this in- Politicians cynically exploited anti- migration. The more recent arrivals justice is seen today in the relative Asian sentiment to maintain power. from Southeast Asia—for example, Vi- lack of political influence and rep- And the press used the ‘‘Yellow Peril’’, etnamese, Thais, Cambodians, Lao- resentation of Asian-Americans at the specter of unlimited ‘‘oriental’’ im- tians—have significantly lower levels every level and in every branch of gov- migration, to sell papers. But at heart, of income, education, and occupational ernment. the reasons for anti-Asian practices re- advancement. Additionally, Asians were denied im- main far simpler: Asians looked dif- Perhaps because of their success, per- migration rights. The Chinese Exclu- ferent, they had accents, they wor- ceived and otherwise, Asian-Americans sion Act of 1882 singled out Chinese on shipped different gods. They came from continue to suffer for their minority a racial basis, and the Gentlemen’s cultures and spoke languages that were status. They are periodically targets of Agreement of 1908 and the National beyond the narrow experience of tradi- hate crimes. The 1982 baseball bat kill- Origins Act of 1924 prohibited Japanese tional, white America. ing of Vincent Chin in Detroit, a scape- immigration—while permitting the an- Thus, Asians and Asian-Americans goat for the Detroit auto industry’s in- nual entry of thousands of immigrants were targets. Unlike other contempora- ability to compete with Japan, illus- from Ireland, Italy, and Poland. The neous immigrants—Irish, Italians, trated America’s ignorance about 1924 law also allowed European immi- Poles, Jews—Asians stood out; they Asian-Americans—Chin was of Chinese, grants to bring their wives from their could not blend into the majority not Japanese, heritage—and the in- homelands, but barred the entry of white population. Asians were natu- equality of justice for Asian-Ameri- women from China, Japan, Korea, and rally suspect for their skin color and cans—the killers paid a fine of $3,780 appearance: they looked different so India. Even Asians who were United and never served jail time. In 1987, many Americans believed they must be States citizens were prohibited from teenagers chanting, ‘‘Hindu, Hindu,’’ different; that is to say, somehow less bringing Asian wives into the country. beat a young Indian-American to than true-blooded American. In many Conversely, the 1922 Cable Act provided death. These are not isolated incidents. instances, the reaction of Asians was that any American woman who mar- to turn inward, to establish their own Last year, a report by the National ried an Asian would lose her citizen- communities or ghettoes, like China- Asian Pacific American Legal Consor- ship. It was not until the 1965 Immigra- town or Japantown, or turn to small tium found that hate crimes against tion and Nationality Act eliminated businesses or farms where they did not Asian Pacific-Americans grew from 335 immigration by national origins that have to compete for employment incidents in 1993 to 458 incidents in the vestiges of these legal restrictions against Caucasians—further isolating 1995, a 37 percent increase in just two were lifted. and insulating their communities from years. Asians were also targeted by laws the rest of American society. These violent incidents have been prohibiting them from owning prop- In time, however, Asians became paralleled and surely fed by a growing erty. The alien land laws passed by more integrated in American life. The national xenophobia. The fear of things California and other Western and progeny of immigrants were born citi- foreign has manifested itself in cut- Southern States earlier this century, zens, spoke only English, watched tele- backs in international programs; the fostered by nativists and envious com- vision and went to the movies, danced growth of the English only movement; petitors, placed heavy obstacles in the to the latest music, and felt they and the passage of California’s propo- path of struggling Asian immigrants earned their place in society through sition 187 and Federal legislation to and their children that were not faced workplace contributions and military curtail social services to undocu- by others. service. As they assimilated, Asian- mented aliens and legal residents. Fear Perhaps most egregiously, Asians Americans enjoyed success in many of Asians and other minorities is also were denied civil rights guaranteed areas of endeavor; in fact, they have seen in proposals to rollback minority under the Constitution. The relocation been so successful that Asian-Ameri- language provisions of the Voting of Asian-Americans from the west cans have been cited as the ‘‘model mi- Rights Act and in broadbased attacks coast and Hawaii and their detention nority.’’ Today, Asian-Americans tend on affirmative action in education, em- in internment camps between 1941 and to have high educational achievement, ployment, and contracting. 1946 is one of the worst civil rights vio- some are prominent in business and the I recall that only a few years ago, lation in our history. One hundred professions, and they have been cited during the height of the debate over twenty thousand men, women, and by social scientists for having commu- the budget deficit, much was made of children of Japanese descent, two- nity spirit, a sense of fiscal responsibil- the fact that a significant portion of thirds of them citizens, were incarcer- ity, and a strong work ethic. our debt was held by Japan, but over- ated behind barbed wire fences, with- But the model minority image is looked was the fact that both the Brit- out due process or evidence of wrong- mythical in many respects. On average, ish and Dutch had far greater invest- doing, under the grim view of machine Asian-Americans earn less than Cauca- ments in United States debt and prop- gun towers. German-Americans or Ital- sians. There is a significant income dis- erty than the Japanese. Likewise, Jap- ian-Americans did not suffer a similar parity between Asians and whites with anese purchases of signature properties fate. In the process, Americans of equal education. Asian-Americans also like Pebble Beach and Rockefeller Cen- Asian ancestry were torn from their tend to be located in secondary labor ter received sensationalized coverage, friends, their loved ones, their prop- markets, where wages are low and but few stories traced the decline and erty, and their faith in the American prospects minimal, and occupy lower eventual sale of these high-profile in- dream. It was only in 1988, through leg- or technical positions, where income vestments to other owners. islation sponsored by Senator INOUYE, potential is not as great as in the exec- Today, with the hype and hoopla sur- Senator STEVENS, and others who serve utive ranks. Proportionately fewer rounding Asians and Asian-Americans in this body today, that the U.S. Gov- Asian-Americans are managers than is involved in the fundraising con- ernment officially apologized for this the case with other population groups; troversy, we see hints of the kinds of injustice. they constitute less than half of 1 per- anti-Asian treatment that have been The reasons for historical prejudice cent of the officers and directors of the practiced in the past. and discrimination against Asians are Nation’s thousand largest companies. The first and most obvious of these is complex, often involving economic or In corporate America, Asian-Ameri- the inappropriate and misguided atten- political motives. For example, at one cans have their own ‘‘glass ceiling.’’ tion paid by the media, commentators, time European immigrant labor groups In addition, many Americans mistak- and public figures to the ethnic herit- felt threatened by cheap Asian labor enly view the successful assimilation age of those involved in the fundraising March 20, 1997 CONGRESSIONAL RECORD — SENATE S2621 controversy. For example, an early Thus, all Asians and Asian-Ameri- issue of legal contributions by perma- Washington Post front page headline cans are, by extension, responsible for nent residents. In the wake of the trumpeted an ‘‘Asian Funds Network.’’ John Huang’s or Charlie Trie’s or ‘‘Asian donor’’ story, proposals have However, upon a careful examination Johnny Chung’s alleged misdeeds. Fur- been made to eliminate their eligi- of the article, the reader found the ar- thermore, goes this circular reasoning, bility to make political contributions. ticle was principally concerned with since it is accepted that Asians lack in- Alarmed by the public fallout of the Asian-Americans, not Asians. Clearly, dividualism, John Huang, Charlie Trie, controversy, the Clinton administra- in some quarters, ‘‘Asian’’ and ‘‘Asian- and Johnny Chung must be part of an tion and the Democratic National Com- American’’ are synonymous, unlike the Asian conspiracy. mittee have preemptively decided not case with Europeans and European- A columnist for the New York Times to accept contributions from perma- Americans. In fact, the term ‘‘Euro- played on this stereotype when, in a se- nent residents or U.S. subsidiaries of pean’’ Americans is rarely heard in ries of editorials last year, he wrote of foreign corporations. And a number of public discourse, because the ethnic or- the ‘‘penetration of the White House by Members of Congress have returned igin of European Americans is not pre- Asian interests’’ and characterized contributions made by permanent resi- sumed to have a bearing on their patri- John Huang as ‘‘the well-subsidized dents who are Asian, not because the otism. Lippo operative placed high inside contributions were illegal but because Despite the fact that Asian-Ameri- Clinton Commerce.’’ The columnist they feared the public’s reaction to cans have paid taxes, lived and worked also referred to an ‘‘Asian connection’’ their accepting ‘‘Asian’’ money. here for several generations, and died which provided contributions through Mr. President, I acknowledge that in military service, a different stand- ‘‘front men with green cards.’’ Even there are legitimate concerns regard- ard applies: Asian-Americans are still the respected Wall Street Journal de- ing the wisdom of allowing permanent deemed to have an extraordinary, per- scribed some of John Huang’s dona- residents to make contributions to po- haps sinister, connection to their coun- tions as coming from ‘‘people with ten- litical campaigns, apart from the possi- tries of origin. uous connections to this country,’’ al- bility that proscribing such contribu- Mr. President, I think that I speak though it is unclear whether it was re- tions may violate the free speech for the entire Asian-American commu- ferring to Asian residents or Asian- rights accorded all residents, citizens nity in expressing the hope that we can Americans. and aliens alike, by the Constitution. get to the bottom of this whole con- A more recent manifestation of this As my colleagues know, the Supreme troversy, wherever the cards may fall. stereotype can be found on this week’s Court has held that campaign contribu- Those responsible for violations of laws cover of the National Review, which tions are an activity protected by the or improper conduct should be identi- depicts President Clinton and Mrs. first amendment, and that the first fied and appropriately dealt with by Clinton with slanted eyes, buckteeth, amendment rights of legal residents the relevant authorities. However, I and wearing a coolie hat and Mao cap, are fully protected. know that Asian-Americans also agree respectively, over the headline, ‘‘The In this instance, however, I am more that the gratuitous attention to the Manchurian Candidates.’’ This is a true concerned by the possibility that the heritage and citizenship of John Huang low for reporting standards, more remi- only reason why campaign contribu- and other fundraisers is unjust and de- niscent of William Randolph Hearst’s tions by permanent residents has be- structive. According to the press and Yellow Press than of modern journal- come an issue now is because, for the others, John Huang isn’t simply a DNC ism. Some irresponsible publications, first time, Asians and Asian-Americans happen to be involved in a major way. fundraiser or even an Asian-American in the interests of sensationalism, are Evidence of this perhaps can be seen in fundraiser; rather, he is referred to as a obviously more than willing to conflate the DNC’s private audit of supposedly ‘‘Taiwan-born naturalized citizen with racist stereotypes with modern stand- ties to an Indonesian conglomerate’’ suspect contributions. ards of objective journalism. The Presi- Reportedly, DNC auditors asked or, worse, ‘‘an ethnic Chinese with dent, Mrs. Clinton, and the Asian- Asian-American donors whether they overseas connections.’’ American community are owed an were citizens, how they earn their Last fall, during an appearance at apology for this gross affront to de- money, if they would provide their tax the University of Pennsylvania, Presi- cency and taste. returns, and other intrusive questions, dential candidate Ross Perot erro- Mr. President, a second major fallout while threatening to tell the press if neously referred to John Huang as an of the fundraising affair is the impres- the donors did not cooperate. Some of ‘‘Indonesian businessman.’’ Later, al- sion fostered by the media and com- the Asian-Americans contacted were luding to the fundraising controversy, mentators that legal Asian-American longtime political contributors with Mr. Perot rhetorically asked his audi- participation in the political process is impeccable reputations, who were nat- ence, ‘‘Wouldn’t you like to have some- illegitimate. Charges of undue influ- urally outraged. The DNC audit clearly one out there named O’Reilly? Out ence on the part of the Asian-American smacked of selective harassment of there hard at work. You know, so far community have been raised with re- those who happened to have Asian sur- we haven’t found an American name.’’ gard to immigration policy, specifi- names; it underscores the Asian-Amer- The implication of these and other cally, the ‘‘fourth preference’’ category ican community’s fear that they are characterizations is that being Asian that allows siblings of citizens to im- being asked to pay for the alleged and naturalized, rather than of Euro- migrate. transgressions of a handful of individ- pean stock and native born, somehow The press makes much of the fact uals who happen to be of Asian herit- renders one less American. that Asian-Americans who are con- age. Mr. President, this hyphenation or cerned about this matter also contrib- Mr. President, a fourth major con- qualification of citizenship status is uted money to the campaign. Certainly cern of the fundraising affair is that it one of the subtle ways in which Asian- Asian-Americans, the majority of has undermined Asian-American lead- Americans are cast as different and whom are immigrants, wish to be re- ership opportunities in Government. therefore suspicious. To some, Asians united with their families. However, it According to some analyses, the fund- and Asian-Americans are the Fu is improper to imply that contribu- raising affair impelled the Clinton ad- Manchus of Hollywood legend—evil, tions to political campaigns by Asian- ministration to drop from consider- cunning, and inscrutable Easterners Americans should be held to a higher ation the names of University of Cali- who march in lockstep to some hidden standard or any more suspect than con- fornia-Berkeley Chancellor Chang-Lin agenda. According to this view, being tributions by other Americans. This is Tien and former U.S. Congressman of Filipino or Thai or Pakistani herit- tantamount to suggesting that the Norm Mineta for the positions of Sec- age is all the same—if your skin is yel- practice of giving to political cam- retary of Energy and Secretary of low or brown, you are alleged to share paigns should be limited only to non- Transportation, respectively. Thus far, certain invidious characteristics of Asians. no Asian-American has ever held Cabi- your race; your individualism fades A third troublesome impact of the net rank, and only a handful are rep- into a kind of monolithic group iden- fundraising allegations is the resented in the senior ranks of Govern- tity. overhasty and excessive reaction to the ment. S2622 CONGRESSIONAL RECORD — SENATE March 20, 1997 Furthermore, I would not be sur- rightful participants in our great Huang was an incident of ‘‘yellow peril’’ re- prised to learn that every Asian-Amer- democratic experiment. visited. Writing in the online magazine ican candidate for political appoint- Thank you, Mr. President. I ask Slate, Wright suggested that racism had unanimous consent that the text of ar- been used to transform a minor scandal into ment is currently being scrutinized for a case of alleged major wrongdoing. Kelly re- contacts he or she may have had, no ticles by Robert Wright and Frank Wu sponded in The New Republic that this view matter how innocent, with the Asian addressing Asian-Americans and the was merely a ploy by the Democrats to avoid and Asian-American principals in the fundraising controversy be printed in answering questions about misconduct. fundraising investigation. As a con- the RECORD following my remarks. Despite this focus, Asian-Americans are sequence, I greatly fear that promising There being no objection, the mate- strangely missing from the scene, the silent Asian-American candidates for respon- rial was ordered to be printed in the subjects of the debate. Asian-Americans can- sible Federal office will fall by the RECORD, as follows: not afford simply to stand by and allow the attacks on Huang to proceed, without at [From Legal Times, Feb. 10, 1997] wayside, victims of guilt by associa- least asking people to pause before assuming tion. THE ASIAN-AMERICAN CONNECTION—THE CAM- he represents all of us. By the very nature of A fifth and perhaps most serious im- PAIGN CONTRIBUTIONS FIASCO AND RACIAL the allegations, however, Asian-American (as pact of the fundraising story, however, STEREOTYPING well as Democratic) commentators are as- is its long-term effect on Asian-Amer- (By Frank H. Wu) sumed to be self-interested or covering up. ican participation in the political proc- As Congress prepares for hearings on the Moreover, if we do speak out, we look like ess. Last year, a record 75,000 Asian- campaign fund-raising fiasco arising from we are defending not only the behavior of a Americans registered to vote, a sign of the work of Democratic Party official John monolithic community but also the actions Huang, the racial aspects of the controversy of foreign companies. We’re in a classic the Asian-American community’s new- have become obvious to many Asian-Ameri- Catch-22 situation. found confidence and political matu- cans, if not to the general public. But to There have been a few exceptions to this rity. I am deeply concerned that biased combat the problem of racial stereotyping in silence. As the scandal was developing last scrutiny of Asians and Asian-Ameri- this matter, its presence first must be ac- October, the nonpartisan Congressional cans by the press, politicians, and in- knowledged. Asian Pacific American Caucus Institute vestigators will kill this initial flower- Consider the following evidence: (CAPACI) held coordinated press conferences Before the November election, independent in Washington, Chicago, and Los Angeles to ing of a historically quiescent and apo- presidential candidate Ross Perot com- litical community, a flowering that led denounce the treatment of the Huang mat- mented about the controversy: ‘‘You know, ter. Yet the only coordinated Asian-Amer- to the historic election of an Asian- so far we haven’t found an American name.’’ ican response to the crisis was given mini- American to governorship of a main- And: ‘‘Wouldn’t you like to have someone mal media coverage. land State. out there named O’Reilly? Out there hard at Similarly, the day before CAPACI held its Will this scandal confirm Asian- work.’’ Likewise, during the campaign. Re- event, the Rev. Jesse Jackson called a press Americans’ fears that the system is publican candidate Robert Dole and House conference in New York. The Rainbow Coali- rigged against them, discouraging Speaker Newt Gingrich warned of foreigners tion leader was as supportive of Asian-Amer- them from participating in the devel- buying the White House. After Bill Clinton’s ican political empowerment as he was criti- re-election, auditors from the Democratic opment of public policy in a meaning- cal of Indonesian government labor policies. National Committee began contacting His statements attracted even less attention ful way? If so, this would be tragic for Asian-American donors, asking whether they than did CAPACI’s. a community that is by far the fastest are citizens, how they earn their money, and Despite the intense media interest in growing in the Nation, which is ex- if they will provide their tax returns, all the Asian-American involvement in campaign pected to comprise 7 percent of the while threatening to tell the press if the do- contributions, our positive electoral accom- population by 2020, and which has so nors do not cooperate. plishments are ignored. Until the president many skills and experiences to offer Meanwhile, New York Times columnist praised him in his State of the Union mes- our country. This tragedy would be William Safire, who seems to have written sage last week, how many Americans were about nothing else since introducing this aware that Gary Locke, the son of Chinese compounded for those immigrants re- scandal to the mainstream media, dubs the immigrants, was the first person of Asian de- cently escaped from the yoke of controversy the ‘‘Asian connection’’—the scent to win a governorship on the continen- authoritarianism, who might find the title itself revealing a perceived racial ele- tal United States when he was elected to consequences of political activism ment to the matter. The Wall Street Jour- head the state of Washington last November? reminiscent of the penalties experi- nal, in its initial series of articles, described Nor was it widely reported that in the last enced in their countries of origin. Asian-Americans as ‘‘people with tenuous election, Asian-American civil rights and In conclusion, Mr. President, as we connections to this country.’’ Huang himself community groups organized an unprece- investigate the fundraising affair, let is almost always referred to as an ‘‘ethnic dented nationwide naturalization drive to Chinese’’ with overseas connections, despite us remember the bigotry, prejudice, ensure that eligible individuals became citi- his U.S. citizenship and low-key zens and exercised their rights. Or that a and discrimination faced by Asian im- assimilationist approach. record number of Asian-Americans voted. migrants and Asian-Americans as they Imagine how odious the same stories would These stories and others received a fraction struggled for acceptance in the New be with a different racial or religious group of the coverage that the Huang spectacle has World. Let us recall how they over- standing in for Asian-Americans. If Jewish attracted. came steep social, economic, and insti- politicos were described as having a ‘‘Jewish The nature of the impropriety alleged tutional barriers to become valuable, connection’’ or portrayed as traitors who against Huang also belies a racial bias, or at contributing members of society. represented Israeli interests, many more least a lack of understanding of what con- people might be troubled by the anti-Semitic With this in mind, Mr. President, let stitutes valid national vs. improper special implications. When Pat Buchanan and Gore interests. Initially, the nexus between the us keep our attention on matters of Vidal began to verge on such claims in the contributions and public policy decisions was substance—the laws that were possibly 1980’s, none other than William F. Buckley said to be some vague influence on American broken, the processes and procedures was prompted to publish a book of essays foreign policy by multinational companies that were bent, the individuals who cir- discussing the ‘‘new’’ anti-Semitism. or Asian governments. Later, the alleged cumvented or corrupted the system, Furthermore, nobody has suggested that ‘‘payoff’’ for campaign contributions was al- and most of all what we can do to pre- the ethical lapses of Speaker Gingrich can be leged to be related to immigration matters— vent abuses in the future. These are traced to his ancestry. Nor do people believe an issue that clearly is of particular interest that the disgrace of consultant Dick Morris the real issues at hand. to the Asian-American community, but also reflects on his entire racial group. Yet the one of national concern. By the same token, Mr. President, let leading newspapers and television networks Indeed, last year, immigration was the us avoid focusing on such irrelevancies continue to focus almost exclusively on issue dividing the country. The Clinton ad- as the ethnicity of the participants in Asian-Americans who are alleged to have ministration’s strategy, like that of mod- this affair. Let us cease characterizing given money improperly, attributing their erates in Congress, was to distinguish be- individuals by meretricious stereo- behavior to their racial backgrounds, while tween legal and illegal immigration: Save types; conversely, let us avoid judging giving only passing notice to campaign con- the legal immigrants by sacrificing the ille- an entire community by the actions of tribution transgressions by whites, (In this gal immigrants. As it happens, Asian-Americans—a major- a few individuals. To do otherwise, Mr. past election, after all, it was a Dole adviser who received the heaviest fine ever assessed ity of whom are immigrants—generally sup- President, would be a grave disservice for a proven case of money-laundering.) ported family-based immigration. Like other to the seven million Americans of Recently, journalists Robert Wright and Americans, many Asian-Americans were es- Asian ancestry who are valued and Michael Kelly argued over whether l’affaire pecially concerned with protecting the so-called March 20, 1997 CONGRESSIONAL RECORD — SENATE S2623 fourth preference, which allows citizens to who are visiting or residing in the United litical contributions were the path to sponsor their brothers and sisters as immi- States. This is not nit-picking. It gets at the power.’’ And among them isn’t the fact, re- grants. heart of the subtle, probably subconscious peated (again) in the fourth paragraph, that Huang recognized the obvious. He orga- racial prejudice that has turned a legiti- ‘‘the quid pro quo promised’’ to Asian-Amer- nized a dinner bringing together Asian- mately medium-sized scandal into a journal- ican donors was ‘‘in many cases a face-to- Americans and the Democratic Party at a lu- istic blockbuster. face meeting with the President.’’ And, any- crative fund-raiser, a dinner at the Hay- Would a Times headline call Polish-Ameri- way, none of these nuggets is interesting Adams Hotel in Washington at $25,000 per cans ‘‘East Europeans in U.S.’’? (Or, in the enough to make this the day’s main story. couple. President Clinton himself attended jump headline, just ‘‘East Europeans’’?) And The only way to do that is to first file Asian- the fete. the headline was only half the problem with Americans in the ‘‘alien’’ section of your Huang wrote a briefing memo prior to the Saturday’s story. The story itself was wrong- brain. That’s why the story’s headline is so dinner stating that immigration would be a headed, implying that there’s something in- telling. key issue for Asian-American voters. Presi- herently scandalous about Asian-Americans The funny thing about this scandal is that dent Clinton denies that he ever read the giving money to a political campaign. In its root cause and its mitigating cir- memo. In any event, his administration had fact, the inaccurate headline was necessary cumstance are one and the same. Its root already made the strategically sensible deci- to prevent the story from seeming absurd. cause is economic globalization—the fact sion to oppose abolition of the fourth pref- Can you imagine the Times running—over that more and more foreign companies have erence. its lead story—the headline ‘‘Democrats an interest in U.S. policy. But globalization Critics have suggested that this series of Hoped To Raise Millions From U.S. Jews’’? is also the reason that the scandal’s events demonstrates that the president ‘‘flip- Political parties target ethnic groups for premise—the illegality of contributions from flopped’’ on the fourth preference, sacrificing fund-raising all the time (as Jacob Weisberg ‘‘foreign’’ interests—is increasingly mean- the interests of the American public in con- recently showed in these pages). They target ingless. Both the Times and the Washington trolling the borders for an infusion of foreign Hispanics, they target Jews, they pass the Post (in its blockbuster-lite front-page story, money to his campaign. Such a view, of hat at Polish-American dinners. To be sure, the next day) cited already-reported evi- course, ignores the fact that the people who the Asian-American fund-raising plan was, in dence that a $185,000 donation (since re- seek to bring over their relatives are them- retrospect, no ordinary plan. It went quite turned) may have originated ultimately with selves citizens. And the view is based on an awry. Some of the projected $7 million—at the C.P. Group. The C.P. Group is ‘‘a huge erroneous understanding of what the admin- least $1.2 million, according to the Times— Thai conglomerate with interests in China istration’s position had been. wound up coming in the form of improper or and elsewhere in Asia’’ (the Times) and is In fact, in the past, the Clinton adminis- illegal donations (which, of course, we al- ‘‘among the largest foreign investors in tration had sought only to suspend use of the ready knew about). Foreign citizens or com- China’’ (the Post). But of course, Nike, Boe- fourth preference temporarily, until the panies funneled money through domestic ing, General Motors, Microsoft, IBM, and so waiting list was cleared out. It never pushed front men or front companies. And some- on are also huge companies with interests in for outright elimination of the provision. times foreigners thus got to rub elbows with China and elsewhere in Asia. They, no less Thus, a misunderstanding of the distinction President Clinton. For all we know, they in- than Asian companies, at times have an in- between interrupting use of the fourth pref- fluenced policy. terest in low U.S. tariffs, treating oppressive erence and abolishing it may have produced But the truly scandalous stuff was old Asian dictators with kid gloves, and so on. the appearance of impropriety. news by Dec. 27. What that day’s story added Yet it is perfectly legal for them to lubricate Indeed, the scandal is not that Asian- was news of the existence of this document such lobbying with big campaign donations. Americans were able to voice our views on outlining a plan to raise money from Ameri- Why no journalistic outrage about that? immigration, but that we had to look like we cans of Asian descent. And that alone was Well, for starters, try looking at a grainy were potential donors of large sums of considered worthy of the high-scandal treat- newsweekly-sized photo of Lou Gerstner and money before we would be heard. Assuming ment. see if it makes you remember Pearl Harbor. Leave aside this particular story, and con- that Asian-American contributors helped (By the way, neither the Times nor the Post sider the ‘‘campaign-gate’’ scandal as a save the national tradition of immigration, noted that the ominous C.P. Group is in- whole. What if the same thing had happened there is nothing shocking about people try- volved in joint ventures with Ford and with Europeans and Americans of European ing to bring together their families or ac- Nynex.) tively participating in politics in an effort to descent? It would be just as improper and/or You might think that, in an age of do so. illegal. But would we really be so worked up globalization and with the United States’ Immigration connects our nation to the about it? Would William Safire write a col- fate increasingly tied to the fate of other na- rest of the world. Much as the rules of immi- umn about it every 15 minutes and use the tions, the United States’ best newspaper gration affect citizens along with their im- loaded word ‘‘aliens’’ to describe European would be careful not to run articles that migrant relatives, they also turn on domes- noncitizens? If Indonesian magnate James needlessly feed xenophobia. Guess again. Six tic politics blended with foreign affairs. If Riady looked like John Major, would News- weeks ago a Times op-ed piece by political Asian-Americans and others who care about week have put a huge, ominous, grainy scientist Lucian Pye explored the formidable allowing immigrants to come to this country black-and-white photo of him on its cover? mindset that governs China today. Current are motivated by some sort of racial self-in- (‘‘Clinton’s European connection’’ wouldn’t Chinese leaders have ‘‘distinctive character- terest, then the same might be said of whites pack quite the same punch as ‘‘Clinton’s istics’’ that give them ‘‘significant advan- and others who wish to close the borders. Asian connection’’—the phrase that News- tages’’ over the United States in foreign pol- There is a better way than to allow politi- week put on its cover and Safire has used 16 icy. They ‘‘see politics as exclusively com- cal disagreements to degenerate into such times in 13 weeks.) Would the Times be bill- bative contests, involving haggling, maneu- suspicions. Otherwise, genuine issues of cam- ing minor investigative twists as lead sto- vering, bargaining and manipulating. The paign finance reform will be obscured by ra- ries? winner is the master of the cleverest ploys Indeed, would its reporters even write sto- cial accusations and counter-accusations. and strategems [sic].’’ Moreover, Chinese ries like that Saturday’s? The lead para- leaders are ‘‘quick to find fault in others’’ graph, which is supposed to crystallize the SLANTED—RACIAL PREJUDICE IS PART OF and try ‘‘always to appear bold and fearless.’’ story’s news value, is this: ‘‘A White House WHAT FUELS THE CLINTON CAMPAIGN SCANDAL Finally (‘‘in a holdover from classical Chi- official and a leading fund-raiser for the nese political theory’’), China’s leaders ‘‘in- (By Robert Wright) Democratic National Committee helped de- sist on claiming the moral high ground, be- The New York Times runs a lot of head- vise a strategy to raise an unprecedented $7 cause top leaders are supposed to be morally lines about scandals, but rarely does it run a million from Asian-Americans partly by of- superior men.’’ In short, China’s ‘‘distinc- headline that is a scandal. On Saturday, Dec. fering rewards to the largest donors, includ- tive’’ edge lies in combative, Machiavellian, 28, it came pretty close. The headline over ing special access to the White House, the mud-slinging, blustery, self-righteous politi- its lead Page One story read: ‘‘Democrats committee’s records show.’’ You mean cians. Gosh, why didn’t we think of that? Hoped To Raise $7 Million From Asians in Democrats actually offered White House vis- These peculiar traits, Pye noted, aggravate U.S.’’ On the inside page where the story its to Americans who cough up big campaign another disturbing feature of modern China. continued, the headline was: ‘‘Democrats’ dough? I’m shocked. Wait until the Repub- It seems that the Chinese people vacillate Goal: Millions From Asians.’’ Both headlines licans discover this tactic! The Friday after ‘‘between craving foreign goods and giving were wrong. The story was actually about a Christmas is a slow news day, but it’s not vent to anti-foreign passions.’’ in other re- 1996 Democratic National Committee docu- that slow. And as for the ‘‘unprecedented’’ spects, too, they evince a ‘‘prickly ment outlining a plan to raise (as the lead scale of the fund-raising goal: Virtually xenophobic nationalism.’’ Imagine that. paragraph put it) ‘‘$7 million from Asian- every dimension of Clinton’s 1996 fund-rais- Americans.’’ ing was on an unprecedented scale, as we’ve LINKS Memo to the New York Times: ‘‘Asian- long known. Feel free to read the Times story that got Americans’’ are American citizens of Asian There are some interesting nuggets in the me so exercised (the Times Web site requires ancestry. ‘‘Asians,’’ in contrast, are Asians— Times story. But among them isn’t the fact, that you register before serving you the citizens of some Asian nation. And ‘‘Asians repeated in the third paragraph, that fund- page; registration is free). Or, instead, you in U.S.’’ are citizens of some Asian nation raisers told Asian-American donors that ‘‘po- can subject yourself to my further exegesis S2624 CONGRESSIONAL RECORD — SENATE March 20, 1997 on appropriate ethnic terminology. You can thousands, if not hundreds of thou- and taken into account as part of the also view the grainy Newsweek cover featur- sands of small businesses, this (pro- budget process. ing Asian-American James Riady—the Oct. posal) would be a startling proposition Mr. President, I yield the floor. 28 issue, which is headlined ‘‘Candidates for to the small business community.’’ Mr. DOMENICI. Mr. President, I do Sale: Clinton’s Asia Connection.’’ From I understand that some of these Fed- Slate’s ‘‘The Compost,’’ read Jacob not want to take much time. Am I cor- Weisberg’s column about the history of fund- eral agencies had also planned on sub- rect in assuming that the Senate is raising fraud in the United States and Eric mitting comments to the EPA as part ready to recess shortly? Liu’s piece damning the press for painting of the public comment period. How- The PRESIDING OFFICER (Mr. Asian-Americans a having dual loyalties. ever, the Oil Daily, a trade publication, ABRAHAM). The Senate is still waiting PoliticsNow begins the new year with a fea- has reported that these agencies were for the House with respect to the ad- ture, titled ‘‘1996 Yearbook; Scandals,’’ that prevented from doing so. The Oil Daily journment resolution. covers the fund-raising issue. Visit the DNC reported that ‘‘according to a leaked (The remarks of Mr. DOMENICI and Web site for a more positive portrayal of the memo, the agencies were muzzled [by Mr. GORTON pertaining to the submis- embattled organizations. OMB] * ** ’’ The article further quotes sion of S. Con. Res. 16 and S. Con. Res. f the memo as instructing agencies that 17 are located in today’s RECORD under EPA’S COSTLY REGULATIONS ‘‘based upon reports from a meeting ‘‘Submission of Concurrent and Senate this morning * * * Federal agencies Resolutions.’’) Mr. BYRD. Mr. President, the Envi- will not [I repeat not] be transmitting Mr. LEAHY addressed the Chair. ronmental Protection Agency has pro- comments on the EPA proposals.’’ The PRESIDING OFFICER. The Sen- posed new rules to modify the ambient Although the agencies provided criti- ator from Vermont. air standards for ozone and particulate cal comments during the interagency Mr. LEAHY. Mr. President, with the matter. I recently wrote to the EPA review process, there is no evidence concurrence of my good friend from and urged the agency to reaffirm the that the proposed rules were signifi- North Dakota, I will just proceed for a current standards, conduct additional cantly modified to reflect their con- moment. monitoring of particulate matter and cerns. OMB cannot, therefore, defend f related air quality issues, and allow its ‘‘muzzling’’ of Federal agencies—as HAPPY BIRTHDAY TO SENATOR our States to complete action on the characterized by the Oil Daily—by ar- DANIEL PATRICK MOYNIHAN ambitious clean air standards that are guing that the proposed rules reflect already in place before implementing the collective wisdom and judgment of Mr. LEAHY. Mr. President, on March additional regulations. I was joined in Federal agencies, when the exact oppo- 16, Daniel Patrick MOYNIHAN, the sen- this letter by Senators ROCKEFELLER, site is the case. I would also note that ior Senator from New York State, FORD, GLENN, and ROBB. the interagency review comments from turned 70. Senator MOYNIHAN has been These proposed rules have been ex- last fall are part of the public record, referred to, quite properly, as the intel- tremely controversial, and have been and so there is no reason why the agen- lectual of the Senate and called by sharply criticized by State Governors, cies could not also submit comments many, a renaissance man. I mean no municipal leaders, and business organi- during the public comment period. disrespect when I say that during a zations. I have recently been made EPA and OMB are apparently holding couple of the gatherings of the Irish on aware that these rules have also been conversations with some of the Federal March 17, he was also referred to as the criticized by other Federal agencies. agencies, but the critical comments of ‘‘World’s Largest Leprechaun.’’ During the interagency review of other agencies will not be shared with To me, Senator MOYNIHAN is a good these rules overseen by the Office of Congress and other interested parties. friend and a mentor, a wise voice that Management and Budget, several Fed- On its face, this becomes a private I heard before I was in the Senate, and eral agencies submitted comments comment period, rather than a public since. He is a man who has spoken with which questioned many aspects of the comment period. great prescience on issues involving proposed rules, including their sci- I am disturbed by this apparent lack families and the economy, global power entific basis and cost effectiveness. of candor and public accountability on and welfare reform, on so many things. These comments are part of the public the part of the administration in dis- Senator MOYNIHAN has served in ad- record. Judging by the tone of the com- cussing these rules. These proposed ministrations of both Democrat and ments from the interagency review rules will impose significant costs, not Republican Presidents. He has always process, it appears that many Federal only on our Nation, but also on Federal been ahead of his time, sometimes with agencies are concerned about these agencies themselves. Many agencies a controversial voice that then turns proposed rules. and departments operate facilities that out to be the only accurate voice. In but one example, the EPA has will be directly affected by these rules. Like all other Senators, I wish him stated that the total national cost of As the ranking member of the Senate very well as he heads into the latest implementing the ozone rule would be Appropriations Committee, I believe decade of his life. $2.5 billion. However, the Council of that these impacts and costs must be Mr. President, I ask unanimous con- Economic Advisers has stated that the considered and reviewed as part of the sent that a column by David Broder en- cost of full attainment of just the appropriations process. titled ‘‘The Moynihan Imprint’’ be ozone rule could be $60 billion, or $57.5 I am, therefore, today writing to var- printed in the RECORD. billion more than estimated by the ious Federal agencies requesting that There being no objection, the article EPA. This is a substantial discrepancy. these agencies individually comment was ordered to be printed in the The Department of Transportation, in on the cost of the proposed EPA rules, RECORD, as follows: its initial interagency review submis- both with regard to the operations of [From the Washington Post, Mar. 16, 1997] sion, concluded that ‘‘it is incompre- the individual departments, and upon THE MOYNIHAN IMPRINT hensible that the administration would that aspect of the Nation’s infrastruc- (By David S. Broder) commit to a new set of standards and ture that is regulated by the depart- Today is the 70th birthday of a unique fig- new efforts to meet such standards ments in question. I am also writing to ure in the public life of this nation for the without much greater understanding of the Director of the Office of Manage- past four decades, the senior senator from the problem and its solutions.’’ The ment and Budget, requesting his com- New York, Daniel Patrick Moynihan. Tomor- U.S. Small Business Administration ments on the cost of these proposed row, a day-long symposium and a stated that EPA’s proposed regulation rules to the Federal Government in its celebratory dinner at the Woodrow Wilson ‘‘is certainly one of the most expensive entirety. Center will make it clear just how large regulations, if not the most expensive As our Nation strives to balance the Moynihan’s legacy is. regulation faced by small businesses in budget, while at the same time provid- Previewing the papers to be delivered, as Georgetown professor Robert A. Katzmann, a 10 or more years.’’ The SBA said that ing Federal programs and services de- onetime student of Moynihan’s and organizer ‘‘considering the large economic im- sired by the public, it is important that of the tribute, allowed me to do, was a re- pacts suggested by EPA’s own analysis the significant costs of new regula- minder of just how rich and varied the New that will unquestionably fall on tens of tions, such as these, be made available York Democrat’s contributions have been. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2625 He has been prescient about subjects as di- but no great pizazz, he was inspired to de- the question in a debate in the 1976 primary, verse as the crisis of the American family scribe Jackson with one of the most gracious unsure at first how to answer. His opponents and the breakup of the Soviet Union. As his phrases ever applied to someone who was gave predictable answers—Labor, said one, fellow scholar Seymour Martin Lipset points really boring. ‘‘Our candidate,’’ said Moy- because that is where the great urban aid out, his 1965 report for President Johnson, ti- nihan, ‘‘is blessed with the charisma of com- programs are drawn up; Foreign Relations, tled ‘‘The Negro Family: The Case for Na- petence.’’ said another, the forum for the great debates tional Action,’’ was bitterly controversial at The union guys had no idea what the hell on the Vietnam War; another said Judiciary, the time. But 30 years later, everyone has he meant, but they knew it deserved ap- which handled civil rights. Moynihan’s an- come to understand that the wave of out-of- plause. That’s the way many of us in the swer: ‘‘Finance. Because that’s where the wedlock births and the scarcity of jobs in the press feel about Moynihan. He’s sometimes money is.’’ inner cities are overwhelming the welfare over our heads, and often light years ahead system and threatening the stability of the of us. But we know he’s something special. (By Nicholas N. Eberstadt, Visiting Scholar, whole society. Mr. LEAHY. Mr. Broder speaks far American Enterprise Institute) As Michael Barone of Reader’s Digest more eloquently than I could of what Anyone even vaguely familiar with his notes, it was Moynihan in January of 1980 Senator MOYNIHAN has done and con- long and distinguished career will already who said that ‘‘the defining event of the dec- know that Daniel Patrick Moynihan is a ade might well be the breakup of the Soviet tinues to do as he climbs new heights every year. polymath. For over four decades, this some- empire.’’ time speechwriter, political adviser, domes- Moynihan was unable to persuade his col- Mr. President, I also ask unanimous tic affairs counselor, diplomat and senator leagues in government to move in timely consent that an article from The Hill has also occupied himself, with seeming ef- fashion to head off the family crisis he dis- of Wednesday, March 19, entitled ‘‘The fortlessness, as an established expert—in cerned, or to curb the excessive costs of the Senate’s Renaissance Man Turns 70,’’ fact, a pre-eminent authority—in an 1980s arms race with the Russians. unnerving multiplicity of intellectual dis- But as Stephen Hess, his deputy in the be printed in the RECORD. ciplines and academic fields: among them, Nixon White House, and half a dozen others There being no objection, the article American history, architectural criticism, argue, he was a shrewd and often successful was ordered to be printed in the arms control, educational policy, ethnology, operative in policy jobs and diplomatic posts RECORD, as follows: income policy, international law, public fi- under four presidents (two of each party) and [From the Hill, Mar. 19, 1997] nance, public policy research and evaluation, for the last 20 years as a member of the Sen- DANIEL PATRICK MOYNIHAN—THE SENATE’s the sociology of the family, and urban plan- ate. RENAISSANCE MAN TURNS 70 For all his focus on social problems, Moy- ning. As a habitual and evidently incor- nihan has left a strong physical imprint on In a public career spanning three decades rigible trespasser in the sometimes jealously the nation as well. In his Labor Department in the groves of academe and the halls of guarded fields of specialized learning, it days under President Kennedy, he managed government, Sen. Daniel Patrick Moynihan should come as no surprise that Moynihan’s to rewrite the architectural standards for (D-N.Y.) has helped shape public policy on a intellectual ambit has taken him into many government buildings and to launch the re- wide range of issues that bear on almost other areas not enumerated above. habilitation of Pennsylvania Avenue into every major aspect of American life. Thus, when he turned 70 on St. Patrick’s what is now nearing completion as the grand (By Suzanne Garment, Resident Scholar, Day, a group of Moynihan’s friends, aides, ceremonial thoroughfare of the Republic. American Enterprise Institute) As a senator, Moynihan six years ago fun- colleagues and supporters used the occasion The foreign service will never be composed damentally redirected national transpor- to highlight his accomplishments at a day- of Moynihans—and a good thing, too. The tation policy by converting the traditional long celebration at The Woodrow Wilson international political system would col- highway program into something grandly Center. lapse under the pressure. Still, every so often called the Intermodal Surface Transpor- The four-term senator, former U.S. ambas- the debate resumes about whether the for- tation Efficiency Act—a charter for states sador to India, former Harvard professor and eign service is professionalized enough and and communities to use federal funds for aide to three presidents was the guest of whether too many ambassadorial appoint- mass transit as well as roads. Characteris- honor at a dinner culminating the tribute to ments are going to outsiders who do not tically, as another paper points out, he had ‘‘The Intellectual as Public Servant,’’ ex- have ‘‘ambassadorial temperament.’’ When written a magazine article as far back as 1960 cerpts of which follow. we hear this argument, we should remember on the negative impact the highway-building that making reasonable room for outsiders is (By Michael Barone, Senior Staff Editor, boom of the 1950s was having on older cities necessary if we are to have room for the Reader’s Digest) like New York. Moynihans, and that having one Moynihan Sweeping as they are, the papers to be de- Harry McPherson, writing about the Sen- around at a crucial foreign policymaking livered tomorrow do not embrace all the as- ate of the 1950s, described a Senate domi- juncture makes it worthwhile to put up with pects of the Moynihan persona. Together nated by ‘‘whales’’ and populated otherwise entire troops of lesser professionals in the with his wife, Liz, a warmhearted woman by ‘minnows.’ But the Senate in which Dan- ambassadorial ranks. iel Patrick Moynihan took his place was with the toughness it takes to have run most (By Robert A. Katzmann, Walsh Professor, quite another place. The senators after of his campaigns, Moynihan has a great gift Georgetown University, The Brooking In- whom the three Senate office buildings were for friendship, a talent for keeping score of stitution) slights or rebuffs—and a really wicked sense named had all died—Richard Russell in 1971, of humor. Everett Dirksen in 1969, Philip Hart in 1976. But for the 20th Amendment, March 4, 1997, On the last point, a speech that Moynihan Sam Ervin had retired in 1974 and William would have been the day the nation inaugu- delivered at a Gridiron Club dinner during Fulbright was beaten that year. Hubert rated its president. Instead, it may come to the Reagan administration remains indelible Humphrey was battling the cancer that be remembered as the day when the nation in the memories of all who were there. It was killed him in 1978 and his old adversary began to change its mindset about secrecy in his idea to explain to a bemused President James Eastland would retire that year. Lyn- government. For that is when the Commis- Reagan that David Stockman—Reagan’s pre- don Johnson and Robert Taft were long gone. sion on Protecting and Reducing Govern- cocious but controversial budget director, Mike Mansfield had retired and the new ma- ment Secrecy issued its report. who had been a live-in baby sitter of the jority leader, Robert Byrd, was regarded as a Most commissions receive scant attention. Moynihans during his Harvard graduate stu- technician, in an office that carries none of Rare is the commission report which has a dent years—was in fact a Democratic mole the great powers appertaining to the Speak- life beyond its issuance; most are consigned who had been programmed to subvert the er of the House. Fully 18 of the 100 senators to the microfiche collection in the basement Reagan presidency from within. It may have in January 1977 had been elected for the first of some federal depository library. But this been the funniest Gridiron speech ever. time. CBS News had to rent the large room report on secrecy would be different because I also cherish the memory of a Moynihan in the Sheraton Carlton Hotel and repaint it of its chair, Sen. Daniel Patrick Moynihan. speech in Philadelphia during the Demo- for their ‘‘Meet the Senators’’ program. This If the typical commission is concerned cratic presidential primaries of 1976. Moy- was a heavily Democratic Senate, but a Sen- with moving organizational units from one nihan was supporting his great friend, Sen. ate without driving Democratic leaders, and place to another, this would seek to change Henry M. ‘‘Scoop’’ Jackson of Washington, a Senate which knew little or nothing about the way we think about a problem so as to and had been dispatched by the Jackson its new Democratic president. It was a Sen- better address it. It is vintage Moynihan— campaign to fire up a dinner audience of ate in which political and policy entre- using an instrument of government, in this labor union Jackson backers. They were, of preneurs could articulate their ideas and ad- case a commission, to shape the very defini- course, drunk and boisterous by the time he vance their causes: not a bad place for a Ren- tion of policy and its debate. arose, but Moynihan delivered a scholarly aissance man. ‘‘In this Senate, you do your discourse on the forces shaping the American work in committees, not on the floor,’’ Moy- (By Stephen Hess, Senior Fellow, The economy and the Western alliance, worthy of nihan has said. And so Moynihan’s first and Brookings Institution) a Harvard seminar. And when he got around perhaps most important decisions were what Sen. Moynihan is the political man of to his candidate, a man of sterling qualities committees to serve on. He had confronted ideas. Some are his own, some he borrows, S2626 CONGRESSIONAL RECORD — SENATE March 20, 1997 some are cosmic, others more modest: Our without the trigger mechanism the 5 years and the estimated revenues and generation greatest spotter of ideas that President provided to assure balance where the money goes, it is very hard might make our society somehow better. even if the Congressional Budget Office to understand the nuances of these This is a remarkable talent. But what turns projections are the ones that are used. budget discussions. it into a national treasure is a finely attuned This chart shows over the next 5 antenna for knowing when an idea is ready The President’s budget, of course, for the public arena, the skill to be in posi- reaches unified balance by the esti- years what we are anticipating spend- tions to make his ideas matter, and the flair mates of the Office of Management and ing from the Federal Government: $9.3 to make others notice. It is a harnessing of Budget, but it does not reach balance trillion. The revenue that is forecasted intellectual energy and political smarts that by the estimates of the Congressional for the Federal Government over the is so rare that when such a person is also Budget Office. And I want to empha- next 5 years is here in this block: $8.5 blessed with long life, we must create oppor- size, ‘‘unified balance.’’ All of us need trillion. tunities to celebrate. to understand that is not real balance. So it is readily apparent that we are Nobody should be fooled anywhere faced with a circumstance that, with- (By Seymour Martin Lipset, Hazel Professor out change, we are going to be adding of Public Policy, George Mason University) about any of these budgets that talk about balancing on a so-called unified $800 billion to the national debt. Why was Moynihan so prescient? I would basis, because when they use that big Unfortunately, our friends on the say because he has known from the start other side of the aisle in Senate bill 2, that there is no first cause, not in politics, word, what they are talking about is putting all of the trust funds into the which means clearly that is one of not in social science. their highest priorities, says the first What Pat teaches is that not only are pot to claim balance. So I think it is there no utopias, there are no solutions, not important to understand I do not be- thing to do is to cut the revenue antici- in the state or in the completely uncon- lieve any of these budgets that claim pated by $200 billion. So they take this trolled market. There are only approxima- unified balance are really balanced sliver off to start with. They reduce tions, only the continuing struggle for de- budgets at all. our revenue from $8.5 trillion down to cency, for morality, for equality of oppor- But, with that said, I think it is also $8.3 trillion as the initial step in ad- tunity and respect. important to understand when you dressing this gap between expenditure hear these differences between Office of and revenue. It makes no sense to me (By Robert A. Peck, Commissioner, Public why you would dig the hole deeper be- Buildings Service) Management and Budget projections and Congressional Budget Office pro- fore you start filling it in. That is what What did he know and when did he know our friends on the other side of the it? Ask this about Pat Moynihan in the mat- jections, the fact is both of them over the last 4 years have been overly pessi- aisle have been talking about. ter of public works and, as in so many other Instead of addressing this $9.3 trillion fields of public policy, the answers are: more mistic. They have overestimated what worth of expenditures with $8.5 trillion than everyone else and long before, as well. the deficit would be. And I think that of revenue, they say cut it to $8.3 tril- In public works, as in other arenas, he has is also important to keep in mind. lion of revenue to begin with. So now transformed the debate. Public architecture As I understand it, the Senator from we have $1 trillion that will be added to he single-handedly disinterred from the New Mexico, the chairman of the Budg- grave and resurrected on the political agen- the national debt. et Committee, offered the President’s da. If you would see his monuments in this Mr. President, this chart shows field, look about you literally. budget but without his trigger mecha- where the money is going to be going On public buildings, urban design, high- nism. Why did the President not bal- over the next 5 years. This is where the ways, transit, waterways, water supply and ance according to CBO’s projections? money is scheduled to be spent, and I even sewers, he has brought to bear his Well, very simply, when he did his think this is what our friends across trademark qualities; an eclectic historical budget he did not have available to him memory, a rapier tongue and typewriter, a the way are struggling with as they the CBO baseline. He did not have struggle to come up with a budget reso- nose for demography and geography, an available the CBO projections. Al- inner ear for the data that matter and in im- lution. Where are you going to cut? If munity to ideological blinkering. In this though he asked for them, and asked we can see we are faced with adding $1 field in particular Moynihan the political for them repeatedly, they were not pre- trillion to the national debt based on vote-counter and Moynihan the passionate pared in time. scheduled spending and scheduled reve- New Yorker rival Moynihan the political sci- So in order to fulfill his responsibil- nues, and they start out by first taking entist. Moynihan’s achievements are worthy ity to present a budget, he used his Of- $200 billion of revenue away, so you of the great public builders, from Hadrian to fice of Management and Budget projec- create a $1 trillion hole to fill in, where Hausmann to Robert Moses, only Moynihan’s tions, which, again, I emphasize have are humane. are you going to cut? been overly pessimistic, not a rosy sce- Here is where the money is scheduled Mr. LEAHY. Mr. President, I thank nario, overly pessimistic over the last 4 to go: Social Security, $2.1 trillion of the forbearance of my good friend, the years in order to present a budget. He the $9.3 trillion that we are scheduled senior Senator from North Dakota, and provided a trigger mechanism so that to spend over the next 5 years. Interest I yield the floor. if, in fact, CBO’s projections were dif- on the debt, $1.3 trillion. Clearly you Mr. CONRAD addressed the Chair. ferent, were even more pessimistic cannot cut interest on the debt. Every- The PRESIDING OFFICER. The Sen- than his own Office of Management and body is against cutting Social Secu- ator from North Dakota. Budget’s, that he could still be in uni- rity. Those two alone are 37 percent of Mr. CONRAD. Mr. President, I want fied balance by the year 2002. the scheduled expenditures. Defense, to thank the Senator from Vermont for I also understand the Senator from $1.4 trillion, another 15 percent. We do his observations on the ranking mem- New Mexico has offered a second budg- not hear much of anybody talking ber of the Finance Committee, who is et that has no tax cuts or no net tax about cutting defense. So you start really an American legend. cuts and also has very deep cuts in do- adding it up, defense is 15 percent, So- I also want to just say to my col- mestic discretionary spending. When cial Security is 23 percent, which is 38 league, Senator BUMPERS, who is com- we use the term ‘‘domestic discre- percent, and interest on the debt is 14 ing on the floor, that I will be brief so tionary spending,’’ what we are talking percent. That is 52 percent of the that Senator BUMPERS can have his about is that category of spending that scheduled expenditures which nobody time. And I look forward to hearing his includes education, roads, bridges, air- is talking about cutting. remarks. ports, parks. Those are the categories That takes us to Medicare, $1.3 tril- f of spending that are included in so- lion, or another 14 percent of Federal called domestic discretionary spending. expenditures. Medicaid, $600 billion, THE BUDGET Mr. President, if I could, the reason I about 7 percent of Federal expenditures Mr. CONRAD. Mr. President, let me came to the floor this afternoon was to over the next 5 years. Other entitle- just say that Senator DOMENICI, the try to put this all in some perspective. ments. We use that terminology and it chairman of the Budget Committee, Because I think unless people have an refers to things like retirement, nutri- has come to the floor this afternoon idea of what we are talking about in tion for children, welfare. Those are and presented two possible budgets. terms of the estimated expenditures of things that are in the categories of One is the President’s budget, but the Federal Government over the next ‘‘other entitlements.’’ March 20, 1997 CONGRESSIONAL RECORD — SENATE S2627 Then there is nondefense discre- they will double the number of people sion is about what we can do to tionary spending, which I referred to almost overnight eligible for our major strengthen America for the future and earlier and which Senator DOMENICI, in programs. the difference that we can make in the the second budget that he laid down We are headed for a circumstance in lives of the people of our country by here, would cut very deeply. He would which, if we fail to change course, we being responsible now, because what we cut from an unconstrained baseline are going to either have an 80 percent have been told is, if we balance this $263 billion out of this category. That tax rate—yes, 80 percent; does anybody budget in this window of opportunity is a tremendous amount of money out believe we will do that?—or a one-third we have before the baby boomers start of defense and nondefense. Those two cut in all benefits. Cut Social Security to retire, our economy in the future are called discretionary spending. one-third, cut Medicare one-third, cut will be 30 percent larger than if we fail From the nondefense discretionary all veterans benefits one-third. Those to act. side, the budget he just presented are the kind of draconian options that Some may be listening to this say- would cut $183 billion out of a total will be presented to this Congress and ing, ‘‘Wait a minute. I am lost. What is that we are scheduled to spend over the a future President if we fail to act. the connection between balancing the next 5 years of $1.5 trillion. Again, We have a responsibility to respond. I budget now and having a bigger econ- what we are talking about there is edu- submit that having tax cuts of $200 bil- omy later?’’ It is very simple, but it is cation, roads, bridges, airports, parks, lion over the next 5 years that explode very real. If we are going to grow the law enforcement. to $500 billion over the next 10 years is economy, if we are going to make it Do we really want to be cutting those not rational, is not responsible, is not bigger, if we are going to have more areas in the magnitude of the budget the way to begin to fill in the hole. I jobs, we need investment. To have in- that the chairman of the Budget Com- have never seen anybody that went out vestment you have to have savings. mittee has laid down? I do not think to fill in a hole and the first thing they The biggest threat to savings in this so. I do not think Senator DOMENICI did was dig it deeper. It makes very lit- country is the deficits that the Federal thinks so. In fact, I am quite confident tle sense to me. Government runs, because those defi- he does not think so. He is just making I hope that Senator DOMENICI, by pre- cits take money out of the pool of sav- a point with the second budget he laid senting these budget options this after- ings of our society. down of what it would take even with noon, sobers up people on both sides of That is why this debate matters. It is no tax cuts to achieve unified balance. the aisle here, sobers up those who perhaps the single most important de- Remember, unified balance is not bal- think that we can have massive tax bate we will have in this Congress this ance at all. That is when you take all cuts. That is not in the cards. That is year. If we all do it seriously and hon- the money from all the trust funds and not serious if people are going to be estly and face our responsibilities throw those into the pot to claim that honest with the long-term fiscal imbal- squarely, we can do something great you are balancing the budget. ances this country faces. That is not for our country. I hope this puts in some perspective facing it head on or squarely. Also, I I thank the Chair. I yield the floor. what it is that we face this year. This hope it stands as a message to people Mr. DURBIN addressed the Chair. is not going to be easy. That is, hope- on my side of the aisle, some who are The PRESIDING OFFICER (Mr. BEN- fully, the message that I have commu- opposed, for example, to correcting the NETT). The Senator from Illinois. nicated here. When you look at what Consumer Price Index that we use to Mr. DURBIN. Thank you, Mr. Presi- the scheduled revenue is of the Federal adjust for the cost of living. The evi- dent. Government—maybe we could show dence is overwhelming that we are f that chart again—$9.3 trillion are the making an overcorrection for the cost expenditures, and we are scheduled to of living by as much as perhaps 1 per- THE NOMINATION OF PETE have $8.5 trillion of revenue. If the first cent a year. It sounds like a small PETERSON thing you do is take $200 billion out of amount, but it makes a big difference Mr. DURBIN. Mr. President, I rise the revenue column, now you are at over time. That 1 percent mistake will this evening to address an issue which $8.3 trillion, and you have $9.3 trillion cost the U.S. Government $1 trillion is one that many of us have labored of expenditures, you have $1 trillion over the next 12 years. Some on my over for decades, the legacy of the added to the national debt. Is that side say we cannot touch that. Vietnam war. what we want to do? To have the kind If we can’t touch that, and the other So many people have said and writ- of massive tax cut that some have side says we have to have a big tax ten that the returning veterans did not talked about, you have to borrow it all. break, you begin to wonder what can receive the credit which they deserved Does that make sense? Should we bor- we do around here? Goodness knows, if for putting their lives on the line for row money to have a tax cut? Does we can’t correct a mistake, which I be- our Nation. Regardless of the wisdom that make sense to people? We already lieve the CPI is in terms of adjusting or popularity of that war, so many of have a $5 trillion national debt. How for the cost of living based on the best those veterans came home and, frank- deep in the hole are we going to go evidence that we have, what can we do? ly, found it difficult to start their lives around here before we respond? If our friends on the other side want to again in America. Mr. President, these are the major have dessert before we start eating our In this Congress of the United States categories of Federal spending. I think vegetables in the face of this enormous about 12,000 men and women have one can see that if we are going to be challenge of these long-term fiscal im- served in the House of Representatives, serious about balancing the budget and balances, then how serious are they and it is my understanding that 1,843 doing it in an honest way, we have a really about addressing the challenges men and women have served in this tall order in front of us. Talking about facing America’s future? U.S. Senate. tax cuts of $200 billion over the next 5 We have an opportunity here to do It was my good fortune to serve in years, which our friends on the other something great for America, because the House before I came to the Senate side of the aisle have put up as their this isn’t just some dry discussion and my better fortune to meet an ex- Senate bill No. 2, really makes no sense about making columns of numbers add traordinary individual in the House of to me. It especially makes no sense up. That isn’t what this is about. This Representatives, a Vietnam veteran, when you look at what happens to that is not a counting exercise. This is who had an amazing story to tell. This tax cut proposal in the second 5 years. about the future economic strength of colleague of mine in the House from This is not just a matter of reaching America. This is about what kind of the State of Florida, Pete Peterson, some kind of balance in the year 2002. jobs are going to be available for our was an Air Force pilot in the Vietnam We have to be looking over the horizon kids. This is about what kind of life fu- war. Pete served 27 years in the Air here, because the real challenge is, ture Americans are going to enjoy. Force. He gave most of his adult life in where is this all going? The real chal- This is about the competitive position service to his country. But the most lenge is we have the baby boom genera- of America. That is what is at stake. It amazing part of his service in Vietnam tion coming along, and they are going is not just some dull, lifeless debate was not in an airplane in the clouds to start retiring in the year 2012, and about balancing a budget. This discus- but on the ground. For 61⁄2 years Pete S2628 CONGRESSIONAL RECORD — SENATE March 20, 1997 Peterson was a prisoner of war in Viet- tion. Some problems arose and ques- reports in response to the questions nam. tions about whether or not as a sitting that Senator SMITH has asked. He is a very soft-spoken and friendly Congressman he could be appointed to Those reports may not be sufficient person. He hardly ever brings up the a post that was created during his term or they may not be good, but Senator subject about his military service. But in office. But after all was said and SMITH has indicated he has no desire to one day over lunch, I said, ‘‘Pete, if done, his name was resubmitted this hold this nomination up at length. In you are not uncomfortable to talk year in January, and he received a fa- fact, I think he would agree with me about it, tell us what you remember vorable hearing in the Senate Foreign and the Senator that this is an excel- about those 61⁄2 years.’’ For the next Relations Committee. In fact, his spon- lent choice for any position. hour Pete spoke and answered our sors at his hearing included not only So it is my intent, barring some un- questions from his colleagues in the his home State Senator, Senator GRA- foreseen complication, that this nomi- House. I will tell you that my memory HAM of Florida, but also Senator JOHN nation would be brought up on Tuesday of that conversation will be with me MCCAIN, a man from the opposite side or Wednesday the week we come back. for the rest of my life. To try for a mo- of the aisle who identified with Pete’s I believe that would be the 8th or 9th. ment to envision or imagine what it experience and said that he would be I do not think it would be appropriate must have been like to spend 61⁄2 years an excellent choice as the Ambassador to hold it up beyond that. And again, in a prison camp in North Vietnam is to Vietnam. barring something that I cannot imag- almost beyond any of us. He talked So we come this evening to the ine right now—and, of course, assum- about the deprivations, physical and Chamber in the hopes that we can ing that over the next 21⁄2 weeks we mental, and how he managed to sur- make it clear that his name, Pete Pe- will get these reports—we would call vive. terson’s name, will come before this that nomination up. I think we would Pete is not one to boast about it. He Senate for consideration and, I hope, be able to do that, and I certainly want is not alone in having gone through confirmation in the very near future. to. I do not see any reason why we that experience. Our colleague from The majority leader, Senator LOTT, would not be able to based on my con- Arizona, Senator JOHN MCCAIN, had a and I had a conversation on this sub- versations with Senator SMITH. similar experience as prisoner of war in ject earlier in the day. He was kind We appreciate the interest of the Vietnam. I have not spoken to my col- enough to return to the Chamber for Senator in his former colleague from the House, and look forward to work- league, JOHN MCCAIN about it. But I this moment to speak to this issue. I read about it in a book published re- thank my colleague for doing that. I ing with the Senator on this and other issues. cently entitled ‘‘The Nightingale will at this point yield the floor so the Mr. DURBIN. I thank the majority Song,’’ which told the history and the Senator from Mississippi may make leader. This will be good news in story of others who went through that comments on this confirmation of Pete Marianna, FL, where Pete Peterson is experience. Peterson. waiting for word on his new assign- The interesting thing about Pete Pe- Mr. LOTT addressed the Chair. ment. He has accepted the important terson is that he came out of that expe- The PRESIDING OFFICER. The ma- assignment for this country. He has rience, went to work in Florida, and jority leader. given so much more than any of us decided that there was more to give to Mr. LOTT. If the Senator from Illi- have ever been asked to give. And this this country. So he ran for the U.S. nois will yield, I will be glad to respond new assignment to Vietnam is one that House of Representatives and was to his comments. They have certainly Pete takes very seriously. elected. been very good ones. My colleague and friend from Mis- We all understand and appreciate and Then in April of last year President sissippi, the majority leader, has raised agree with the remarks about the tre- Clinton turned to then Congressman an important critical issue of the unac- mendous service and the quality of Pete Peterson and asked him to under- counted for POWs and MIAs. I cannot man that Pete Peterson is. I am satis- take what was a major responsibility, think of a person who will take that re- to serve as the first U.S. Ambassador fied that he would be a great represent- sponsibility more seriously than Pete to Vietnam. It was a controversial ative for our country in any position, Peterson, who knows men whom he posting. Some in this body and others whether it be an easy one, great lux- served with in the Air Force and other really questioned whether or not we ury, or a tough one, as this one will be branches who are not accounted for. should have diplomatic relations. But when he is confirmed. And I am certain that he will work The Senator is right that there are many, like Pete Peterson and JOHN with diligence to try to establish their those of us in the Chamber and in MCCAIN, believe that we have reached whereabouts to the satisfaction of America who doubt the wisdom of that moment in history where the best their families as quickly as possible. thing for both of our countries is to going forward with this normalization Of course, in terms of our relations have diplomatic relations. I thought with Vietnam for a variety of reasons. with Vietnam, that debate will go on, the President made a wise choice. Particularly, the Senator from New and our relationship with that country Those who watched the program 60 Hampshire, Mr. SMITH, has raised a lot will be decided based on the conduct of Minutes which was on last Sunday of questions and concerns over the Vietnam toward the United States and night may have seen the segment years about POWs and missing in ac- vice versa. A man of Pete Peterson’s about Pete Peterson, once a downed tion, accounting for those POWs. He is stature I think will enhance that rela- pilot in a rice paddy in Vietnam, very concerned about those servicemen tionship, and I am confident that when 1 pushed away into a prison camp for 6 ⁄2 that have not been identified, have not he is called for consideration on Tues- years, now with the opportunity to re- been accounted for. He has made that day or Wednesday after we return, he turn as the Ambassador from the Unit- very clear. He has serious doubts that will receive strong bipartisan support ed States of America to Vietnam and, I Vietnam is actually doing all that it for this assignment. am certain, to return to that same vil- can do or all it has said it would do in I thank the majority leader for com- lage and meet the people who held him moving toward normalization and ac- ing to the floor. I know he has a very at bay and pushed him into that pris- counting for those POW/MIAs, and he busy schedule, but I consider this an oner-of-war camp. has asked me as majority leader in a important matter, as I am sure he So Pete Peterson’s name was put up very good, strong letter, lengthy letter does. I appreciate his cooperation. I and suggested, and the reaction was to give him an opportunity to ask some thank my colleague from Arkansas for positive. People said what a fitting questions and get some answers. giving me this opportunity to speak choice to take someone who has been I try to honor that kind of request first. through this life experience, who has for any Senator on either side of the I yield back my time. endured this time as a prisoner of war, aisle whenever I can within reason. Mr. LOTT addressed the Chair. and to ask him to serve as our Ambas- And I have also joined him through my The PRESIDING OFFICER. The ma- sador in Vietnam. staff that deals with the Intelligence jority leader. Of course, his name was submitted to Committee to work with the intel- Mr. LOTT. Will the Senator from Ar- the Senate at that point for confirma- ligence staff to try to get a report or kansas allow me to put a couple brief March 20, 1997 CONGRESSIONAL RECORD — SENATE S2629 statements in the RECORD and make a moted to the position of legislative di- importance of the press and of the role unanimous consent request. This rector. He has always been a take- played by visual and sound images. should not take very long at all. charge kind of guy, and he ensured Every day that the proceedings of the Mr. BUMPERS. My pleasure, Mr. that my office’s legislative staff was Senate are made available to the press President. prepared and proactive. As effective as here and around the world, it is an af- Mr. LOTT. I thank the Senator. Sam’s leadership was, he was also one firmation and practical example of de- f of the most well-liked members of my mocracy in action. That goal has been staff. an important part of Jim’s motivation. TRIBUTE TO SAM ADCOCK While those who have worked against Mr. President, our Senate family Mr. LOTT. Mr. President, I take this Sam know what a formidable opponent wishes Jim and Linda, his wife of 34 opportunity to recognize and say fare- he is, those who have worked with him years, and their children—Mark, Lena, well to an outstanding staffer and dear know what a pleasant and approach- and Karen—the very best and hope he friend of mine, Sam Adcock. able man he can be. gets some time to spend on that sail- For the past 7 years, Sam has served As Sam Adcock moves on to a new boat with his granddaughter, Megan. not only as my national security advi- and exciting position as vice-president But, knowing Jim as we do, we can ex- sor, but as one of my most-trusted and for government operations at Daimler pect his sleeves will be rolled up and able advisors. Sam is moving on to Benz, I wish him, his wife Carol, and into another challenge in the very near other challenges, but it is my privilege their young son Austin, the best of future. to commend him for the service he has luck. f provided me and the Senate as a whole. Sam exemplifies all that is good in The youngest of four children born to the congressional staffers who work so NUCLEAR WASTE POLICY ACT Pat and Larry Adcock, Sam was born hard here on Capitol Hill. He is honest, AMENDMENTS in Baton Rouge, LA, and although Sam industrious, intelligent, and talented. was not a native Mississippian, he as- My office will be poorer for his depar- sured me he had relatives in the Mag- ture, but the people of this country are MOTION TO PROCEED nolia State. richer from his time as a Senate staff- I am not sure what effect being the Mr. LOTT. Mr. President, I ask unan- er. For his loyal and dedicated service, imous consent that the Senate now youngest in such a large family had on I thank him. Sam, but I think it must have played turn to the consideration of Calendar Mr. President, I yield the floor. No. 27, S. 104, the nuclear waste bill. some part in cultivating his competi- f tive nature. The PRESIDING OFFICER. Is there It is this, combined with a gut in- TRIBUTE TO JIM GRAHNE objection? stinct for effective legislation, which Mr. LOTT. Mr. President, I want to Mr. DURBIN. Mr. President, on be- has made Sam Adcock such an impor- express the gratitude of the Senate to half of colleagues on this side of the tant part of my team. Jim Grahne, the director of our Senate aisle, I do object. Sam joined my staff as a full-time Recording and Photographic Studios. The PRESIDING OFFICER. Objec- employee in 1990, after serving for a Jim is retiring this week after 27 years tion is heard. year as a military liaison. He served as of dedicated service to the Senate. CLOTURE MOTION my legislative assistant while I was a Jim Grahne has been one of our most Mr. LOTT. Mr. President, I move to member of the Armed Services Com- talented technical and management proceed to the nuclear waste bill and mittee, and quickly sank his teeth into professionals in the Office of the Ser- send a cloture motion to the desk. the complicated process of military ap- geant at Arms. The PRESIDING OFFICER. The clo- propriations. He is an engineer by training and Mississippi’s shipyards and military profession and has used his skill, cre- ture motion having presented under bases owe Sam Adcock a debt of grati- ativity and expertise to shepherd the rule XXII, the Chair directs the clerk tude for the countless hours he spent Senate through nearly 30 years of to read the motion. arguing on their behalf. broadcast and photographic tech- The assistant clerk read as follows: During the 1991, 1993, and 1995 Base nology. I am referring to the tele- CLOTURE MOTION Realignment and Closure [BRAC] pro- vision, radio and photographic services We, the undersigned Senators, in accord- cedures, due in large part to Sam’s on which we as members, and as an in- ance with the provisions of rule XXII of the hard work, Mississippi was the only stitution, so readily rely. Standing Rules of the Senate, hereby move to bring to a close debate on the motion to State that had no bases closed. It was Jim’s leadership that made proceed to S. 104, a bill to amend the Nuclear Among the many areas where Sam’s technically possible the broadcast of Waste Policy Act of 1982: expertise was invaluable to me were the proceedings of the Senate floor. Trent Lott, Larry Craig, John Ashcroft, the development of the LHA and LHD While that accomplishment may be Dan Coats, Tim Hutchinson, Sam programs. Perhaps one of our greatest one of his professional highlights, he Brownback, Mitch McConnell, Conrad legislative triumphs was working in always sought ways to improve prod- Burns, Frank Murkowski, Jon Kyl, 1995 to help Ingalls Shipbuilding of ucts and services to members. Connie Mack, Spencer Abraham, Chuck Pascagoula, MS, win the $1.4 billion Some of the recent successes of Jim Hagel, John McCain, Don Nickles, and contract for LHD 7. and his staff include the installation of Gordon Smith. Sam worked around the clock to help a fiber optic network for the broadcast Mr. LOTT. Mr. President, I regret the Ingalls win this contract so important of committee hearings, CD-Rom and objection from our colleagues on the to the men and women of Jackson on-line photo data base services for other side of the aisle. I know the Sen- County, MS, but that was not unusual members’ offices. Jim and his staff ator from Illinois was objecting on be- for him. I know Mississippians would have also pioneered the use of closed half of other Senators that could be di- be proud to know how relentlessly Sam captioning text, audio and visual tech- rectly affected by this issue. I have pursued what was in their State’s best nologies. filed a cloture motion on the motion to interests. This year the studios released full proceed to the nuclear waste bill. So I The country, too, should be proud to text and audio search and retrieval of now ask unanimous consent that the have had such a champion of strong floor proceedings. Offices may now cloture vote be at 2:30 p.m. on Tuesday, military ideals fighting to preserve our search for and download any speech or April 8, and the mandatory quorum Nation’s military prowess. I could al- debate text and audio with 15 minutes under rule XXII be waived. ways count on Sam to go into a meet- of its being given. The PRESIDING OFFICER. Is there ing for me and come away with the Our gratitude for Jim is not limited objection? The Chair hears none, and it best possible deal for Mississippi and to his understanding and appreciation is so ordered. our country as a whole. for technology. Because he came to the Mr. LOTT. In light of this agreement In addition to his service as my Senate from the commercial news and to conduct this cloture vote on Tues- armed services advisor, Sam was pro- broadcast industry, he understands the day, April 8, I now announce that there S2630 CONGRESSIONAL RECORD — SENATE March 20, 1997 will be no votes during the session of the most difficult, knotty problems I had increased that trillion-dollar debt the Senate on Monday, April 7, the day have ever faced. by $3 trillion, and the national debt at that we return, although there will be I am ranking on the Energy Commit- that time then became $4 trillion, and debate on that day. I expect debate to tee and we have wrestled with this at we have been striving to dig ourselves occur on the pending motion to proceed length over the years. This is no time out of that hole ever since. to the nuclear waste bill on that Mon- to debate it, except to say it is one of Mr. President, 3 or 4 weeks ago I was day, and the Senate may be asked to the most awesome, difficult problems I walking out that door to go back to my consider other legislative or executive have ever been confronted with. office and one of the most conservative items on that Monday. I will be dis- f Republican Senators in the U.S. Sen- cussing Monday’s schedule further with ate, who happens to be a good friend, FORGO TAX CUTS UNTIL WE the Democratic leader and will inform came over to me and he said, ‘‘I’ll tell BALANCE THE BUDGET the Senate as to what other items the you, DALE, confidentially, I’ve never Senate may consider when it recon- Mr. BUMPERS. Mr. President, I rise seen things better. The economy is as venes following the Easter recess pe- to pay tribute to my colleague in the good as it ever gets. A lot of things are riod. House, Speaker GINGRICH. For those of going right in this country.’’ I almost I thank all my colleagues for their you who think that I must need a sa- fainted. I said, ‘‘I could not agree with attention. I now withdraw the motion. liva test for saying that, here is why. It you more.’’ The PRESIDING OFFICER. The mo- was earlier this week in a press con- I sometimes wonder why people are tion is withdrawn. ference, that Speaker GINGRICH made a not dancing in the streets. Since 1992 Mr. LOTT. Mr. President, just in con- very responsible statement. He said we have taken the deficit from $290 bil- clusion, I want to recognize the Sen- that this Congress should forgo tax lion to $107 billion in 4 short years. The ator from Arkansas, who is in the cuts until we balance the budget—an unemployment rate in this country is Chamber at this time. I thank him eminently sensible, unassailable propo- the lowest in years. Some economists again for his courtesy in allowing me sition insofar as I am concerned. say you you cannot get it much lower to do this and recognize that he is a I expected him to get the reception than 5.3 or 5.4 percent. Interest rates member of the Committee of Energy he got. Some of his very best friends in are at a manageable level. And this and Natural Resources that reported the House jumped on him and said, morning, everybody who read the this legislation. I think it is very im- ‘‘You have betrayed us.’’ Thirty House Washington Post saw a feature story portant legislation. I understand that Members sent him a hot letter, saying, about how the deficit is continuing to the Senators from Nevada will have to ‘‘What on Earth are you thinking?’’ go down. make their points in opposition to I don’t know what he was thinking, Let me back up. The President sent what it would do, but I do think it is but I assume he was thinking the same his budget over here and he said: In just absolutely essential that this thing I was thinking, and that is that 1997, the deficit will be about $127 bil- country face up to the need to deal the snake oil of cutting taxes and bal- lion. It will be about the same in 1998. with our nuclear waste. There is no ancing the budget makes no sense This morning the newspaper reports easy way to do it. There is no perfect whatever. We have tried it. Ten years that because of this economy, enjoying solution for all 100 Senators. But we from now or 20 years from now, when the longest sustained growth since passed it last time through the Senate memories have faded a little further, I Dwight Eisenhower was President, and it died aborning in the House. I am would rather expect people to say, yes, even CBO, which is very conservative told this time that we will, when we we can cut taxes and balance the budg- in their projections, says the deficit pass it, the House will also pass it, and et. But we are, really, only 4 years this year is going to be down to $115 this time we hope we can get it to the away from the end of George Bush’s billion. But other very reputable President. And we hope we can get it to tenure as President; we are 16 years economists say, no, you are under- the President in a way that he feels he away from 1981 when the U.S. Senate estimating the taxes the people of this can sign it. took leave of its senses and passed a country are going to pay this year be- We must do this because it is an issue massive tax cut on the proposition that cause the economy is doing just that will not go away. Nuclear waste is if we would do that and simultaneously fine.They say, we believe the deficit sitting in cooling pools and barrels all balance the budget, which was at that will be under $100 billion. over this country from South Carolina moment $87 billion out of kilter, that I am the eternal optimist. I like to to Vermont, from the banks of the Mis- we could balance the budget by 1984 if believe that last statement, that the sissippi River to the shores of the Pa- we just bought into this proposition deficit will be below $100 billion, turns cific Ocean. We must deal with this that we needed to cut taxes monu- out to be true, in which case we will problem, and so that is why I take this mentally to stimulate the economy. have done something that is unprece- procedure to make sure that we get it But I am again happy to report to my dented in this country. We will have up for consideration and for debate colleagues I did not buy that snake oil. had 5 sustained years of deficit reduc- when we return from the Easter recess. There were 11 Senators—believe it—11 tion. I thank the Chair. I thank the Sen- U.S. Senators who said, ‘‘This is crazy. Do you want the economy to con- ator from Arkansas. It will never work. It makes no sense tinue as it is now and have this sus- Mr. BUMPERS addressed the Chair. whatever. It violates economic prin- tained growth that we have been enjoy- The PRESIDING OFFICER. The Sen- ciple, violates normal sanity.’’ But we ing? I will tell you a simple way to do ator from Arkansas. went ahead and did it, and I will never it. You send a message to the American Mr. BUMPERS. Mr. President, let me forget that fall day when President people that the U.S. Congress has come say before I begin my remarks on a Reagan, at Rancho Mirage, signed the to its senses, and decided to forgo tax separate subject, that the majority bill in front of about 100 television cuts of any kind until the United leader is absolutely right when he cameras, saying, ‘‘You have given me States budget is in balance. talks about the necessity for develop- the tools. Now I’ll do the job and no- Then tell them, on top of that, this ing a system of disposing of high-level body will be left behind.’’ year’s deficit is not going to be $99 bil- nuclear waste in this country from our Here is what happened. Twelve years lion; we’re going to further reduce it to nuclear powerplants. later, we had accumulated $2.5 trillion $90 billion or $85 billion. I can tell you, I, when I was Governor of Arkansas in additional debt to go with the al- Wall Street will jump with joy. 22 years ago, wondered how on Earth ready $1 trillion debt that we had in- Why would we be considering tax we were going to deal with that. That curred during the first 200 years of this cuts of $193 billion, almost $200 billion? was the reason I was always opposed to country’s history—actually less than Why would the U.S. Senate be consid- building more nuclear plants when we that. But from the date we adopted and ering a $200 billion tax cut over the had not figured out how we were going ratified the Constitution in 1789, until next 5 years and $508 billion over the to decommission the ones that we had the day we passed that tax cut in 1981, next 10 years? Why are we considering and dispose of the nuclear waste that the debt had accumulated to less than that when we know that a tax cut of was coming out of them. So it is one of $1 trillion. Twelve short years later, we that magnitude is going to stimulate March 20, 1997 CONGRESSIONAL RECORD — SENATE S2631 the economy? And why do we want to ment to help out? Why in the name of about my obligation to my fellow man. stimulate an economy that is perking all that is good and holy would we, in You hurt your fellow man, you insult along so well that Alan Greenspan 1996, insist that the Defense Depart- God. keeps Wall Street on edge every day ment take $9 billion more than they So I am not going to do it, whether saying, ‘‘If this economy gets any hot- even asked for? you want to talk about religion or ter, I’m going to raise interest rates’’? I sit on the Defense Appropriations whether you want to talk about com- That is the constant threat every time Committee, and I am telling you, I get mon sense, whether you want to talk the Federal Reserve Board meets, the absolutely nauseated at times. You about what has made this country threat of higher interest rates. take the F–22 fighter plane, which we great. One thing that has made this You cut capital gains taxes, and I do not need, I promise you—and I am country great is our commitment to promise you it will not be long until going to stand at this desk and maybe the elderly. We reduced the poverty you will have an interest rate increase lose another battle on the F–22—but rate among them from 25 percent to 12 from the Fed. You cut these other when you start talking to me about percent since 1950. We ought to keep taxes to the tune of $200 billion over building 438 airplanes at $180 million doing it. We ought to come to our the next 5 years, and I promise you in- each to compete with a Russian air- senses. terest rates will go up. Alan Greenspan plane that is not even on the drawing I intend to sit down and visit with will see to it. And if interest rates go board, let alone being off the drawing the Senator from New Mexico and talk up, the market will drop and economic board, and at a time when we are build- seriously with him about this. I am not activity will drop. So why would we in- ing 1,000 advance F–18’s which will be negotiating on behalf of the President sist on making a crazy economic deci- as good, or better, than any plane that or anybody else. But I want to applaud sion to stimulate an economy which is could possibly challenge us for the next the Senator from New Mexico this moving along sharply? 20 years, and then follow that in 2015 afternoon because he has made a very I see statements in the press every with a joint strike fighter—no, they important statement that a lot of peo- morning of some politician saying, want to fill in what they say is a gap ple on that side will disagree with. But ‘‘Well, people know how to handle their with a plane, Mr. President, that costs I think he is on the right track. I think money a lot better than Washington. $180 million a copy, 438 of them. NEWT GINGRICH made a very important It’s a lot better to leave it in their Would you like to know how much statement earlier this week, and I ap- pocket than send it to Washington.’’ I the estimated cost of the F–22 has gone plaud him for it. understand that, and I understand that up in the past year compared to what Mr. President, I appreciate having if you are looking for applause, that we were told in 1996? $15 billion. $15 bil- the opportunity to make these state- statement is a good way to get it. But lion in 1 year. God knows what it will ments. I have been intending to do this I also understand that we have a gold- be by the year 2006 or 2007 when we all week and had such a schedule I en opportunity that does not present start building these airplanes. We will could not do it. But I am feeling better itself often, and that is to honestly bal- not be able to afford them, I can tell tonight about the direction we are ance the budget and give the people of you that. headed than I have in some time. this Nation a night’s sleep like they I am simply saying that we should I yield the floor. have never had before. look at what we are going to cut. The Mr. LOTT addressed the Chair. The Senator from New Mexico of- Senator from New Mexico has a $100 The PRESIDING OFFICER. The ma- fered two budgets this afternoon. One billion cut in Medicare. And what jority leader. was the President’s. I said many times about Medicaid? I do not know whether f on this floor, I am not enamored with we are cutting Medicaid $9 billion or the President’s budget. I am not enam- $22 billion. You hear conflicting num- EXECUTIVE SESSION ored with any budget which does not bers on that, but bear in mind what reduce the deficit this year and next. these programs are. Medicare is health EXECUTIVE CALENDAR The Senator from New Mexico is get- care for our elderly; Medicaid is health ting very close to singing my song. You care for the poor, the most vulnerable Mr. LOTT. Mr. President, I ask unan- like bipartisanship? You like for Re- of all our children. imous consent that the Senate imme- publicans and Democrats to agree? The Last year, we cut welfare recipients’ diately proceed to executive session to Senator from New Mexico probably is food stamps, everything, for the poor- consider the following nominations on not trying to curry my favor, but he is est people in the country, $55 billion. the executive calendar: Calendar Nos. getting awfully close to doing it with Mr. President, I am not going to go 39, 40, 61, and 62. his resolution which says no tax cuts home and tell my constituents that I The PRESIDING OFFICER. Without until we get to a balanced budget using voted to savage the most vulnerable objection, it is so ordered. CBO’s figures. people in our population, the children Mr. LOTT. Mr. President, for the in- Mr. President, the Budget Committee and the elderly and the poor, and that formation of all Senators, this involves has been deliberating, and I think they I voted to give the money to the two appointments to the Federal Mine have been making some progress, inci- wealthiest 5 percent of the people in Safety and Health Review Commission, dentally. They even think they have America. And I promise you, if I were a nominee to be a U.S. district judge the deficit down to $111 billion now, running against somebody that had for the District Court in DC, Colleen and if they are that close, I think it is done that, I could make that case in Kollar-Kotelly, and Rose Ochi to be Di- absolutely imperative that we improve spades and be absolutely certain of my rector, Community Relations Service, over the 1996 deficit by cutting it below ground. Department of Justice. $107 billion this year and below that I did not vote for the welfare bill last NOMINATION OF JUDGE COLLEEN KOLLAR- next year. year. I was one of the 21 people that did KOTELLY One of the things about the proposal not. You can call me a bleeding heart Mr. LEAHY. Mr. President, last night of the Senator from New Mexico is that liberal. You can call my anything you we finally broke through the stall and when we reach that happy day—when want to. But when this body starts say- the Senate confirmed the nomination we are in balance—then half of any sur- ing the only way we can balance the of Merrick Garland to be a judge on the plus will go to reduce the cuts made in budget is by giving the Pentagon bil- United States Court of appeals for the nondefense discretionary spending. lions they did not even ask for and cut- District of Columbia Circuit. During That is education, law enforcement, ting Medicare by $100 billion, and de- that extended debate on a nomination environment, health care, medical re- priving the poorest children in the that had been delayed too long, I urged search. It is all the things that make country of Medicaid to the tune of $22 the Republican leadership to take up us a great nation. But the Senator billion, and making $55 billion in wel- the nomination of Judge Colleen from New Mexico very carefully has fo- fare cuts—you see, I would have to say Kollar-Kotelly to the U.S. District cused on making cuts in nondefense I never went to Methodist Sunday Court for the District of Columbia. discretionary spending. Well, what is school as a boy, but I did. I believed I am encouraged that those who wrong with asking the Defense Depart- those Methodist Sunday school stories schedule matters in the Senate have S2632 CONGRESSIONAL RECORD — SENATE March 20, 1997 heard our plea and are finally willing unanimously found her well qualified cated in today’s RECORD under ‘‘State- to consider this nomination, as well. for this position, thereby giving her ments on Introduced Bills and Joint When we confirm Judge Kollar-Kotelly, the ABA’s highest rating. She has been Resolutions.’’) we as a Senate will literally double the an associate judge of the Superior Mr. BURNS. Mr. President, I suggest number of judges we have confirmed Court of the District of Columbia since the absence of a quorum. this year—from one to two. Unfortu- 1984 and has served as the deputy pre- The PRESIDING OFFICER. The nately, there will still be 68 vacancies siding judge of the Criminal Division. clerk will call the roll. on the district courts around the coun- Before that she was the chief legal The assistant legislative clerk pro- try and a record 24 vacancies on the counsel at Saint Elizabeths Hospital ceeded to call the roll. Federal courts of appeals. here in the District. She served as an Mr. SANTORUM. Mr. President, I Judge Colleen Kollar-Kotelly’s nomi- attorney in the appellate section of the ask unanimous consent that the order nation was first received from the Criminal Division of the Department of for the quorum call be rescinded. The PRESIDING OFFICER. Without President in March 1996 and was pre- Justice for almost 3 years. viously reported to the Senate in Sep- She is a distinguished graduate of objection, it is so ordered. tember 1996. This nomination was not Catholic University and its Columbus f acted upon before the adjournment of School of Law. She clerked for the PARTIAL-BIRTH ABORTIONS the 104th Congress. She was renomi- Honorable Catherine B. Kelly on the Mr. SANTORUM. Mr. President, I nated on the first day of this Congress. District of Columbia Court of Appeals. her nomination was re-reported again rise to talk about an issue that was She has been active in bar associations talked about at great length today in without a single dissent from the Judi- and on numerous committees of the ciary Committee 2 weeks ago. During the House of Representatives and voted Superior Court. on. That is the issue of partial-birth that time there has been an anony- I thank all Senators for confirming mous Republican with an unspecified abortions, or as the Congressman who this nominee as a judge on the United led the debate on the floor of the concern that has prevented this nomi- States District Court for the District nation from being considered. In other House, Congressman HENRY HYDE, re- of Columbia. fers to it as partial-birth infanticide words, there is an unspecified hold. Mr. FAIRCLOTH. Mr. President, I am where, in fact, you have a baby that is Over the last 5 years, the District not going to object to the unanimous Court for the District of Columbia has at or near viability in the fifth and consent for the confirmation of the sixth month of pregnancy when most of been at full strength with 15 active nomination of Colleen Kollar-Kotelly judges for only about 6 months. The these abortions are performed, deliv- to be U.S. district judge for the Dis- ered completely out of the mother, and court has been operating with three va- trict of Columbia, but I would like it cancies for over a year and another all that is left in the mother is the recorded that if we had conducted a head—what we are talking about here judge is currently absent due to illness. rollcall vote on the nominee, I would I understand that the vacancies have is not an abortion. What we are talking have voted in the negative. about is killing a child. been contributing to a rise in the back- Mr. LOTT. Mr. President, I ask unan- log of civil and criminal cases pending I think, incredibly, frankly, given the imous consent that the nominations be results of the last election where the before the court. confirmed, the motions to reconsider The criminal case backlog increased Republicans lost seats in the House, be laid upon the table, any statements and getting a sufficient number of by 37 percent in 1996. So much for get- relating to the nominations appear at ting tough on criminals. We are fortu- House votes to override a—hopefully the appropriate place in the RECORD, not, but probably—Presidential veto of nate to have senior judges who were the President be immediately notified willing and able to pitch in during this bill—we needed 290 votes. We of the Senate’s action, and the Senate thought going in we would be assured these vacancy periods. Indeed, senior then return to legislative session. judges recorded one-third of the total of that number. In fact, we thought we The PRESIDING OFFICER. Without would be well assured of that number, court time spent by all judges in this objection, it is so ordered. district from July 1995 to June 1996. In given the results of the election and The nominations were confirmed as what we thought was the intention of the words of the court’s chief judge: follows: ‘‘The Court cannot continue to rely on the Members. THE JUDICIARY It turned out that the House passed senior judges to bear this much of the Colleen Kollar-Kotelly, of the District of caseload.’’ I agree. the partial-birth abortion ban by a Columbia, to be U.S. District Judge for the vote of 295 to, I believe, 136. That is five I thank the majority leader for District of Columbia. agreeing to proceed to Senate consider- votes more than the required constitu- DEPARTMENT OF JUSTICE tional majority of 67 percent of the ation of Judge Kollar-Kotelly’s nomi- Rose Ochi, of California, to be Director, nation. And I thank Chairman HATCH House. So they do have enough votes in Community Relations Service, for a term of the House of Representatives to over- of the Judiciary Committee for press- 4 years. ing forward with this important nomi- ride a Presidential veto. FEDERAL MINE SAFETY AND HEALTH REVIEW The action now shifts here to the nation. COMMISSION U.S. Senate. We are going into recess The Senate has not been doing its job Mary Lucille Jordan, of Maryland, to be a when it comes to considering and con- Member of the Federal Mine Safety and and will be for the next couple of firming nominations for judicial vacan- Health Review Commission for a term of 6 weeks, but I have had conversations cies. I asked last night what justified years expiring August 30, 2002. (Reappoint- with the majority leader, and we an- the unconscionable delay in taking up ment) ticipate bringing that bill up sometime Judge Garland’s nomination, what Theodore Francis Verheggen, of the Dis- shortly after we reconvene here in the fatal flaw in his character or fairness trict of Columbia, to be a Member of the Senate in April and hope for a full de- Federal Mine Safety and Health Review the Republicans had uncovered? I ask bate on this issue. Commission for a term expiring August 30, As to what happened in the House, those questions again with respect to 2002. when we saw the number of votes this nominee, a hard-working woman f who has been serving on the superior change, resulting in a sufficient num- court bench here in the District of Co- LEGISLATIVE SESSION ber to override the President’s veto, I lumbia for the last 13 years, having The PRESIDING OFFICER. Under hope that same kind of dynamic occurs been appointed by President Ronald the previous order, the Senate will re- here in the Senate. Those votes Reagan. The answer is the same: There turn to legislative session. changed because of new information is no explanation why she was not con- Mr. LOTT. I yield the floor, Mr. that has been brought to light about firmed before now. She is another of President. what actually is going on out in Amer- the unlucky victims of the majority’s Mr. BURNS addressed the Chair. ica on this issue of partial-birth abor- shutdown of the confirmation process The PRESIDING OFFICER. The Sen- tions. We were originally told by the last year. ate from Montana. advocates of the procedure, the indus- With respect to this nominee, I note (The remarks of Mr. BURNS pertain- try and those who support the proce- that the ABA Standing Committee ing to the introduction of S. 509 are lo- dure, the abortion rights groups, that March 20, 1997 CONGRESSIONAL RECORD — SENATE S2633 this was ‘‘a rare procedure.’’ That far. So there is really no reason for So I hope that when we have this de- phrase was used over and over again, them to give us accurate information. bate, we realize, number one, that it is ‘‘A rare procedure.’’ The President of When I say there is no reason for them not a rare procedure. And, frankly, we the United States used ‘‘a rare proce- to give us accurate information, it is don’t know how rare it is. What we do dure, done only in the third trimester, because there is no way to check know is that the numbers given out in in cases where the mother’s life or whether that information is accurate. the past were lies. Let’s call it what health was in danger or where there The Government keeps no statistics on they were—lies, a deliberate attempt was a severe fetal deformity.’’ the number of partial-birth abortions. by the abortion industry and advocates That was the argument and the rea- So there is no way for anybody to inde- to mislead the Congress. They sent son the President vetoed it, and that is pendently verify this. people up here and they testified to why many Members of the Senate Now, I have asked many reporters that lie. So now we are going to believe stood here and said they could not find who have covered this issue, ‘‘How them and give them a second chance to themselves in a position where if some- about doing a little reporting? How lie to us. one was in this kind of dire con- about verifying your story instead of I am sorry. Fool me twice, shame on sequence that they would limit a per- taking what the Alan Guttmacher In- me. They are not going to fool me son’s option. stitute,’’ which is an arm of the abor- twice. I am not going to accept their We had plenty of medical testimony tion advocacy group and is always number, and I don’t think anybody at the time, and even more has come in cited in literature and in the press as should. They have no credibility be- since, that says that this is never an this ‘‘independent source.’’ That is just cause they have lied once and, number indicated procedure to protect the life ludicrous. They are an advocate, a zeal- two, there is no independent verifica- or health of the mother, never an indi- ous advocate of the absolute right to tion of that number, because they will cated procedure. It is not in any text- choose. So using their information is not open up their books. They won’t book on obstetrics. You will not find it as bad as using the providers them- even let reporters talk to them. So I in any of the medical literature. I am selves who are advocates of the proce- encourage the press covering this de- quoting lots of obstetricians who have dure. bate now, and who covered it in the testified before Congress, including an Now, some reporters have actually past, not to use a phony number. As obstetrician in the House of Represent- gone through the process of calling horrible as that number is, my good- atives, Dr. Tom Coburn, a Member of their clinics. We have gotten a variety ness we are talking of an admission of the House, and C. Everett Koop, the of different feedback. I talked to a re- at least 3,000 to 5,000—3,000 to 5,000 in- former Surgeon General, who worked porter from the Baltimore Sun who nocent children, at least 90 percent of with small premature babies. So we said she called some of the hospitals which—according to their industry— have overwhelming medical authority and clinics in Baltimore that do abor- are healthy babies and healthy moth- that this procedure is never indicated tions, and they hung up the phone on ers. to protect the life and health of the her. They didn’t want to talk to the Frankly, even if it were 300 to 500, or mother. press. It is none of their business. Oth- just 30 to 50, it should outrage every But we also found out new informa- ers have said they have called and had Member of the Senate that we allow tion, that in fact this is not a rare pro- nice conversations and were told, ‘‘We that to happen in such a barbaric way. cedure. This is a procedure that is done don’t do that here.’’ They very well But 3,000 to 5,000—maybe it’s 30,000 to thousands upon thousands of times. may not do it, but we have no way of 50,000; who knows? But it is not a rare The estimate given by the abortion checking. The press has no way of procedure, and it is not done just on providers is 3,000 to 5,000 times a year. checking because they are not going to mothers who have severe health com- The only independent evidence we have make their records available. It is con- plications or life-threatening ailments. been able to gather is by a press re- fidentiality, and I understand that. But We know that. One reason is obvious porter in Bergen County, NJ, who sur- there is no way for us to know how that we know it. We know it by under- veyed a clinic in her community, and many abortions are done, partial-birth standing what the procedure is. The in that one clinic in northern New Jer- or late-term abortions. You will have other reason we know is because we sey there were 1,500 partial-birth abor- advocates get up for this procedure on have all the medical experts testifying tions performed every year. Now, if the Senate floor and talk about this as that this procedure is never indicated there are 1,500 in one clinic, and we being ‘‘very rare,’’ or ‘‘only a few thou- to protect the health or the life of the have another doctor who has testified sand.’’ Just imagine, put yourself in mother. But the other reason we know in Nebraska, Bellevue, NE—no offense the context of children—children are that this procedure would not be used to my colleagues from Nebraska, but used a lot on this floor as a defense for is just by knowing what the procedure hardly a large metropolitan area— a lot of Government programs. is. Take a case. We have a mother where this doctor said in the last 2 Imagine if you were talking about whose life is in danger. Now, I will add years he has done 1,000 partial-birth 3,000 to 5,000 children who we would let that we have a provision in this bill to abortions, if you just take those two starve to death in this country; what protect the life of the mother. If this isolated instances and the fact, as the would we do about it here? Would we procedure is ever needed to protect the reporter from Bergen County said, that say it is only 3,000 or 5,000 who we are life of the mother, it can be used. But this procedure, according to the doc- going to let die because we don’t want let me suggest that that would never tors there, is done in other places in to take any action? I am not too sure happen. We have it in there, frankly, the New York metropolitan area, but if that we would do that. But, in fact, for cosmetic reasons. It would never you just take those two sites alone, it that is what we are doing. We are ac- happen, because if a mother’s life is in is very hard to say we only have 3,000 cepting their numbers, which I don’t imminent danger, would any physician to 5,000 of these being performed na- accept. I don’t think, frankly, the press use a procedure that takes 3 days to tionwide. should accept them. I think throwing perform? If the woman presents herself There is no way to check because the this number out of 3,000 to 5,000, to the hospital in a life-threatening people who provide the statistics are quoting an advocate of the procedure condition, would you say, ‘‘We have the advocates for the procedure. So, of as the authority for the statistical in- this great procedure that takes 3 days course, they are not going to give us formation as a basis for the debate—I to do; we will give you medication, the real numbers. They know that mean, I will throw a number out—let’s come back in 2 days’’? You would if their Achilles heel in this debate, in say 50,000, which is probably as credible you want to kill the mother, or if you the debate not just on partial-birth as the number you are going to get want malpractice, but not if you want abortions but, frankly, on all abor- from the other side. It is probably as to provide competent medical services tions, is late-term abortion. This is not credible, and probably even more credi- to a woman in need. So it would not be something the American public feels ble because I am just pulling it out of used in that situation. comfortable with, but in fact, some- a hat; they are deliberately throwing a Let’s talk about the health condi- thing the American public overwhelm- number out that they know is well tion. Again, if somebody presents her- ingly rejects. They think that goes too below what the actual number is. self with a severe health consequence, S2634 CONGRESSIONAL RECORD — SENATE March 20, 1997 they could use their fertility or—to be good relationships with. We are in our ator to accept pro bono legal services honest with you, I don’t know why comfort zone with people who agree when challenging the constitutionality someone would suggest that we want with us. It is very easy for us to sort of of a Federal statute, and then only to protect ourselves from losing our hang around those people and sort of when the statute in question expressly fertility by killing a healthy baby. I feed off each other. I understand that. authorizes the Senator to file such a don’t understand that. If you want to But sometimes you have to step back suit. protect your fertility to have children, from all of that. You have to step out In addition, Senate Resolution 321 re- why would you kill a healthy baby to in the cold and look at the cold, hard quired the Select Committee on Ethics do that? This is something that strikes facts and make a decision using your to establish regulations providing for me as an argument that I have not mind and using your heart on what is the public disclosure of information re- heard a sufficient answer to on the right—not what is right politically for lating to the acceptance of pro bono other side. Why would you kill one me, not what is right for my friend, but legal services performed as authorized child so you could have more children? what is right for our culture and what by the resolution. Those regulations As far as I know, there is no guarantee is right for our whole existence as a were adopted by the Committee on of being able to get pregnant again. country. February 13, 1997, and were subse- Unfortunately, there are tens of thou- I think when we do that, I think quently printed on page S1485 of the sands, probably hundreds of thousands when Members take time to do that, CONGRESSIONAL RECORD dated February of couples who are trying to have chil- we will see something very special hap- 24, 1997. Specifically, those regulations state, dren and can’t. If you have been blessed pen here, which is what happened in in relevant part: with a healthy baby and a healthy the House today. Members will have pregnancy, I don’t know why you A Member who accepts pro bono legal serv- stepped out of that comfort zone, ices with respect to a civil action challeng- would do this procedure. But the point which I know is very hard to do, will ing the validity of a Federal statute as au- is, you would not go through this 3-day take an honest look at the facts and thorized by S. Res. 321 shall submit a report procedure if there was an imminent make a decision that is right for Amer- to the Office of Public Records of the Sec- health risk to the mother. It is just not ica. That is my hope. retary of the Senate and the Senate Select logical. I am going to be working very dili- Committee on Ethics. . . . This procedure was not designed by a gently, and I know other Members are, The regulations go on to state: physician who was looking out for the in making sure that this information is All reports filed pursuant to these Regula- health and life of the mother. This was disseminated. tions shall include the following informa- designed by a physician, in his own I again encourage the press to do tion: (1) A description of the nature of the words, as a more efficient way to do your job, fact-check your stories before civil action, including the Federal statute to abortions for the abortionist, not for be challenged; (2) the caption of the case and you write them, and ascertain the the cause number, as well as the court in the mother. It is efficient in that the truth. Do not just report what people which the action is pending, if the civil ac- mother can come in and do it on an say. I know some people think that is tion has been filed in court; and (3) the name outpatient basis. Late-term abortions their job. If that is the job of a re- and address of each attorney who performed are much more complicated. It is much porter, then reporting has sunk to a pro bono services for the Member with re- more involved. This basically prepares new low in this country if all we do is spect to the civil action, as well as the name the woman for a shorter visit to the and the address of the firm, if any, with run around and report what people say. which the attorney is affiliated. clinic and a more convenient way for That is not journalism, in my book. At On January 2, 1997, I, along with this abortionist to perform the abor- least make an attempt to find out the former Senator HATFIELD, Senator tion and to be able to do more of them truth. At least check. This is serious LEVIN, Senator MOYNIHAN, and Rep- in one day. That is the reason this pro- stuff. We are not talking about how the resentatives WAXMAN and SKAGGS, filed cedure was developed. Senate buys paper here. It is impor- You will hear testimony of people a civil action in U.S. District Court for tant. It takes taxpayer dollars. We the District of Columbia challenging who have written textbooks on abor- have a system. We are talking about tion, who said they would never use the constitutionality of Public Law very weighty issues. We are talking 104–130, the Line Item Veto Act. That this, and they do late-term abortions. about the issues of life and death, So I just ask my colleagues to listen to suit, titled Byrd v. Raines, was filed about a barbaric procedure that just pursuant to section 3 of the Act, which all of the facts. We had, I think, last goes beyond any vision that I can authorizes precisely this type of suit. year—and it was unfortunate, and I imagine that people in this country In our quest to utilize the best legal will not point blame at anybody. I am have of what our civilization and what talent available, we have, in accord- not too sure there is blame. We had a humanity is. ance with Senate Resolution 321, cho- situation where the vote came up in an So take that responsibility seriously sen to accept the pro bono services of election year, in an election climate. on your side. We take it seriously here. several distinguished attorneys. To Members are people, too. They feel a I think, if you do your job and if Mem- date, they have provided each of us comfort zone on issues. It is very hard bers of the Senate do their job, which with invaluable service through con- for them to sort of break out of this is to honestly face the facts, allow sultation, research, analysis, and legal comfort zone into unknown territories, those facts to rebound off your sense of representation. particularly around a very politically judgment, your sense of right and At this time, I would like to advise charged environment, even though the wrong, then I think what will bounce the Senate that, as required by the facts were there; many of the facts back is a vote to end this barbarism in aforementioned regulations issued by were available for the override vote. this country by an overwhelming vote. the Select Committee on Ethics, Sen- Certainly, a lot of them were not given f ators LEVIN, MOYNIHAN, and I have filed credibility in the mainstream media. the necessary reports fully disclosing MORNING BUSINESS Now they have been. the representation which we have re- So I ask many of my colleagues who (During today’s session of the Sen- ceived. However, in an effort to comply have already cast a vote more than ate, the following morning business with not only the letter of those regu- once on this issue to have an open was transacted.) lations, but also with their spirit, I am mind, to step back and look at the re- f today placing in the CONGRESSIONAL ality of partial-birth infanticide and RECORD copies of those reports so that ACCEPTANCE OF PRO BONO LEGAL recognize your obligation to those chil- all Senators will be thoroughly ap- SERVICES dren, recognize your obligation to your prised of the details of this matter. constituents in trying to ascertain the Mr. BYRD. Mr. President, on October Mr. President, I ask unanimous con- truth, and make a decision that is in 3, 1996, the Senate adopted Senate Res- sent that the two reports to which I the best interest for America and for olution 321, which I introduced, and have referred be printed in the RECORD. your State, not for the interest group which had the bipartisan support of There being no objection, the mate- that supports you in your election, not both the Majority and Minority Lead- rial was ordered to be printed in the for the advocates who you may have ers. The resolution authorizes a Sen- RECORD, as follows: March 20, 1997 CONGRESSIONAL RECORD — SENATE S2635 U.S. SENATE, 3. Pro bono legal services have been pro- the new economy. We must provide COMMITTEE ON APPROPRIATIONS, vided to us by: them with the opportunity to share in Washington, DC, March 12, 1997. Mr. Lloyd N. Cutler, Mr. Louis R. Cohen, the prosperity. Hon. MITCH MCCONNELL, Chairman, Mr. Lawrence A. Kasten, Wilmer, Cutler & I call these articles to your atten- Hon. BYRON L. DORGAN, Pickering, 2445 M Street, N.W., Washington, Vice-Chairman, Select Committee on Ethics, DC., Mr. Charles J. Cooper, Mr. Michael A. tion, and I ask unanimous consent that U.S. Senate, Washington, DC. Carvin, Mr. David Thompson, Cooper and excerpts from them be printed in the GENTLEMEN: In accordance with the regula- Carvin, 2000 K Street, N.W., Suite 401, Wash- RECORD, because their message is a na- tions promulgated by the Select Committee ington, DC; Mr. Alan B. Morrison, Ms. tional one. The problems faced by the on Ethics pursuant to Senate Resolution 321 Colette G. Matzzie, Public Citizen Litigation people of western Massachusetts are of October 3, 1996, we are submitting this re- Group, 1600 20th Street, N.W., Washington, the same problems which confront us port with respect to our acceptance of cer- DC; Mr. Michael Davidson, 3753 McKinley all across America. We must make the tain pro bono legal services. Those services Street, N.W., Washington, DC. American dream a reality for more of have been, and will continue to be, accepted Should you or your staff in the Office of by us in connection with the filing of a civil Public Records wish further information per- our citizens. These stories are an im- action challenging the validity of a federal taining to the matter, please have your staff portant reminder that we have not yet statue. Please find below the details of this contact Peter Kiefhaber (Senator Byrd) at 4– done so. action as required by the regulations, which 7215, Linda Gustitus (Senator Levin) at 4– There being no objection, the mate- were published in the Congressional Record 5538, or Mark Patterson (Senator Moynihan) rial was ordered to be printed in the dated February 24, 1997. at 4–7800. RECORD, as follows: 1. This is a civil action in which we, as Sincerely, plaintiffs, have challenged the constitu- [From the Boston Globe, Mar. 9, 1997] ROBERT C. BYRD, tionality of Public Law 104–130, the Line CARL LEVIN, HIDDEN MASSACHUSETTS Item Veto Act. DANIEL PATRICK MOYNIHAN. BEHIND THE SCENIC LANDSCAPES, ON THE BACK 2. The case, captioned Senator Robert C. ROADS OF A RURAL MASSACHUSETTS, IS A Byrd, et al v. Franklin D. Raines, et al, civil f WORLD OF POVERTY AND ABUSE, VIOLENCE action number 97–0001, was filed on January AND DESPERATION 2, 1997, and is currently pending in the Unit- ADDITIONAL COSPONSOR—S. 6 ed States District Court for the District of Mr. INHOFE. Mr. President, I ask (By David Armstrong and Ellen O’Brien) Columbia before the Honorable Thomas unanimous consent that my name be It’s dim and stale in the basement lockup Penfield Jackson. added as an original cosponsor to S. 6, at district court, the sickly yellow walls 3. Pro bono legal services have been pro- echoing the tales of a thousand petty crimi- vided to us by: the partial-birth abortion bill. nals who have sat here waiting to see the Mr. Lloyd N. Cutler, Mr. Louis R. Cohen, The PRESIDING OFFICER. Without judge upstairs. There are two cells, each Mr. Lawrence A. Kasten, Wilmer, Cutler & objection, it is so ordered. with heavy steel bars painted black. There Pickering, 2445 M Street, N.W., Washington, f are no windows. DC; Mr. Charles J. Cooper, Mr. Michael A. In the far cell, on the edge of a wooden Carvin, Mr. David Thompson, Cooper and BOSTON GLOBE SERIES OF ARTI- bench, sits a stocky, babyfaced 11-year-old Carvin, 2000 K Street, N.W., Suite 401, Wash- CLES ON POVERTY IN WESTERN with straight brown hair that’s cut short. He ington, DC; Mr. Alan B. Morrison, Ms. MASSACHUSETTS stares at a concrete wall where someone has Colette G. Matzzie, Public Citizen Litigation scratched the words ‘‘White Power.’’ In the Group, 1600 20th Street, N.W., Washington, Mr. KENNEDY. Mr. President, last corner is a shiny, metal toilet welded to the DC; Mr. Michael Davidson, 3753 McKinley week, the Boston Globe carried a su- wall. Street, N.W., Washington, DC. perb series of articles on poverty in the He is Chevy Van Pickup—so named be- As always, it is our intent to fully comply rural towns of western Massachusetts. cause his parents thought it sounded cool. with both the letter and the spirit of the reg- The series was entitled ‘‘Hidden Massa- He’s here for allegedly mugging a woman ulations issued by the Select Committee on outside a package store in Athol, a small Ethics. We trust that this report serves to chusetts’’ and it was written by two Globe reporters—David Armstrong and town near the New Hampshire border where fulfill that intention. Should you or your he lives. staff wish further information pertaining to Ellen O’Brien. These two have done an Chevy already is the youngest child in the the matter, please have your staff contact excellent job portraying the impact of custody of the State Department of Youth Peter Kiefhaber (Senator Byrd) at 4–7215, job loss on both individuals and com- Services, the agency that oversees the treat- Linda Gustitus (Senator Levin) at 4–5538, or munities. The towns in this area have ment and punishment of kids in trouble. Mark Patterson (Senator Moynihan) at 4– His rap sheet would be impressive if he 7800. been devastated by plant closings and were an adult, never mind a child a decade Sincerely, layoffs. Factories and mills throughout shy of the legal drinking age. ROBERT C. BYRD, the region have pulled out for warmer Athol police first picked him up when he CARL LEVIN, climates and cheap overseas labor. The was 5 years old (his mother can’t remember DANIEL PATRICK MOYNIHAN. jobs which remain are predominantly what he did). When Chevy was 7 years old, low paying. Salaries in the commu- the youngest age at which someone can be U.S. SENATE, nities west of Worcester are dramati- charged with a crime in Massachusetts, he COMMITTEE ON APPROPRIATIONS, was arrested four times—once for attacking Washington, DC, March 12, 1997. cally lower than those in the remain- another student with a trumpet. Hon. GARY SISCO, der of the state. With this sense of eco- Now confirmed to a facility for young Secretary of the Senate, U.S. Senate, Washing- nomic hopelessness has come increased criminals in Lancaster, Chevy spends his free ton, DC. levels of crime, violence and abuse. time making cards for his grandfather and DEAR MR. SISCO: In accordance with the These articles are a poignant re- regulations promulgated by the Select Com- trying to earn good behavior points so he can minder that the rising economic tide buy presents for his sisters. For the first mittee on Ethics pursuant to Senate Resolu- has not lifted all boats. Similar stories tion 321 of October 3, 1996, we are submitting time, he is learning how to read. this report with respect to our acceptance of could be told about impoverished com- On the rare occasions his mother visits, certain pro bono legal services. Those serv- munities in every one of our states. Chevy repeatedly asks for hugs and tells her ices have been, and will continue to be, ac- For those with limited education and how much he loves her. cepted by us in connection with the filing of outdated employment skills, the eco- Head west from Boston, past the pricey a civil action challenging the validity of a nomic environment is growing increas- suburbs, beyond the bustle of Interstate 495, federal statute. Please find below the details and you’ll find some of the loveliest land- ingly hostile. The macro-economic scapes in New England. of this action as required by the regulations, numbers which describe a growing which were published in the CONGRESSIONAL But it’s a cruelly deceiving portrait. economy conceal a great deal of indi- RECORD dated February 24, 1997. Behind the pastoral facade live some of the 1. This is a civil action in which we, as vidual pain and dislocation. As a na- poorest, most violent, most abused, and des- plaintiffs, have challenged the constitu- tion, we need to pay much more atten- perate young people in the state. This is the tionality of Public Law 104–130, the Line tion to the disturbing growth in in- hidden Massachusetts—the tragic, ugly un- Item Veto Act. come disparity. The working poor are derside of a state renowned for prestigious 2. The case, captioned Senator Robert C. becoming poorer, and the middle class universities, famous hospitals, high incomes, Byrd, et al v. Franklin D. Raines, et al, civil and educated residents. action number 97–0001, was filed on January are finding it tougher to maintain In many towns and small cities along 2, 1997, and is currently pending in the Unit- their living standard. We must provide Route 2, where tourists crowd maple sugar ed States District Court for the District of these hard working men and women stands, assaults are more widespread than in Columbia. with the tools they need to succeed in Boston or Springfield. S2636 CONGRESSIONAL RECORD — SENATE March 20, 1997 South of the Quabbin Reservoir, a stone’s They include two 12-year-olds from Ware; Neil Stetson, 49-year-old pastor of the throw from antique shops and Old Sturbridge two 13-year-olds from Warren and West Colrain Community Church and a native of Village, there are towns with more high Brookfield; and a 13-year-old Brookfield boy Heath, said the scenic hill towns off Route 2 school dropouts, pregnant teenagers, and committed this June for possession of a in Western Massachusetts are filled with families on food stamps per capita than in hypodermic syringe. hard-working people who lose hope with the Brockton or Lynn. Ask anybody—a teacher, a cop or a social departure of every decent-paying job. And in parts of Berkshire County, where worker—what went wrong and what can be ‘‘You can’t eat the view,’’ he says. ‘‘It’s a the well-to-do spend summer nights sipping done to fix it, and the answer is always the beautiful area. I know that’s what tourists wine on the lawn at Tanglewood, the rate of same: The good jobs left and until they are see. But it’s kind of a facade of beauty. Be- child abuse is the highest in Massachusetts. replaced things will probably get worse. hind it, there is much pain. With every plant Police and city officials in Boston, 80 miles ‘‘The lack of an economic future for these closing, the window of opportunity dimin- from Chevy’s house in Athol, brag about a kids is unbelievable,’’ says Lynne Simonds, ishes.’’ drop in juvenile crime and earn praise na- who coordinates youth programs in the Isolated by geography, families like the tionally for their efforts. It’s just part of a Central Massachusetts town of Ware. ‘‘Look Tanners also feel forgotten. They read about steady diet of good news in the Boston area around: They see what you see. People out of the billions of dollars spent on the Big Dig in these days: Home sales are up, unemploy- work, hanging on street corners. They Boston and find it hard to believe more can’t ment down, consumer confidence high. choose crime as a way to make a living.’’ be done to help bring jobs to the western But police chiefs in many small towns part of the state. watch as their crime rates soar. Child pro- [From the Boston Globe, Mar. 11, 1997] ‘‘Governor Weld and all of them never come this way,’’ Bob says. ‘‘They forget the tection officials may tout an overall decline HIDDEN MASSACHUSETTS in reported child abuse, but in some places people here are helping to pay their sala- WITHOUT JOBS THAT PAY A LIVING WAGE, LIT- out here, it’s happening more and more. ries.’’ People in these towns talk not of success TLE WILL CHANGE FOR THE STRUGGLING FAMI- FAMILIAR, DESTRUCTIVE CYCLE stories, but of a lost generation growing up LIES OF RURAL MASSACHUSETTS ATHOL John Guyer walks into his small, without hope on the backroads of Massachu- (By David Armstrong and Ellen O’Brien) basement apartment carrying a pillow and setts. Although many poor families in Central sleeping bag. It’s 7:30 p.m. and he is tired, ‘‘People in Boston think I am dealing with and Western Massachusetts are on welfare, sore, and reeking of chicken. He woke up be- Mayberry RFD,’’ says Southbridge Police most struggle to stay off, working at low- fore dawn, sat or slept in a cramped van with Chief Michael Stevens. ‘‘They don’t know paying jobs, creatively juggling their bills, no heat for two hours, and worked all day at anything. I’ve got big-city problems.’’ accepting private charity when desperate. a farm in Connecticut before making the PASSING TIME, MAKING TROUBLE These are their stories. long return trip home. His hands and arms Before he was sent off to Lancaster, Chevy HEATH.—Bob Tanner’s day begins shortly are a patchwork of red scratch marks left by often roamed the streets of downtown Athol. after 2 a.m. with a 22-mile drive down unfor- angry birds. It wasn’t that long ago that Main Street giving mountain roads to his job sweeping The 22-year-old Guyer spends his day mov- pulsed with the comings and goings of thou- floors and cleaning restrooms at McDonald’s. ing chickens in and out of cages, giving them sands of factory workers. On Thursdays, pay- The trip is hard enough, but some morn- shots to inoculate them from disease and slicing the beaks off chicks. Most of the day at the two biggest mills, stores stayed ings Tanner climbs into his car and finds his work takes place in stifling hot barns where open until 9 p.m. fuel tank empty. The gas thieves, armed Today, clothing shops and theaters have with siphons, have hit three times this win- it is difficult to breathe in the swirl of dust given way to human service agencies. One of ter. and feathers. During busy times, the gruel- the remaining industries is the casket manu- ‘‘It’s just hard times,’’ his wife, Donna, ing work can stretch nonstop over several facturer where Chevy’s father worked before says matter-of-factly, grimly acknowledging days and nights. that those who steal gas from struggling For this, John is paid $6 an hour. he died. The buzz on the street comes not He hates working with the chickens, but from shoppers, but the ‘‘benchies,’’ teenagers families are also hurting. Bob, who recently turned 44, takes home has been unable to find anything better. who hang out on Main Street benches, doing From time to time he quits, only to go back drugs and harassing passersby. about $180 a week, after $60 a week is de- ducted for health insurance. It is the only in- when he needs the money. He is deep in debt Teenagers in towns like Athol complain and behind on the rent and almost every they are trapped. They say there is nothing come for the couple and their two children. The commute alone costs $50 a week in other bill. to keep them busy and no buses or subways When asked about the good jobs in the to take them to malls or theaters. When gas, and their rent is $100 a week. ‘‘Sometimes I’m just worn out,’’ Donna area, John ticks off a few: Installing satellite they quit school or graduate, they quickly dishes for as much as $110 a day or building find out there are few jobs that pay more says of the constant struggle to pay bills and buy the basics, like food. ‘‘ninety percent of above-ground pools during the summer at than $6 an hour. $175 a unit. These jobs are hard to get, how- For some, making trouble is an easy way the people out here die from stress.’’ The Tanners live with Donna’s mother in a ever, and tend to be seasonal. to pass the time. In the not-so-distant past, men like John home that sags under the burden of long win- It was three teenagers from Athol who cap- could find decent paying work at one of the ters and years of neglect. The only heat tured national headlines two years ago when many factories in Athol. They were the comes from a wood stove in the front room. they embarked on a wild spree down the kinds of jobs that could support a family and The homemade stove was crafted from a 50- Eastern Seaboard that ended with the shot- provide a comfortable retirement. But today, gun murder of a elderly Florida man in his gallon oil drum. only one large factory remains—the Starrett Wood is the primary or only source of heat home. Tool Co., which employs 1,100. In Greenfield, a 22-year-old mildly retarded in many homes throughout the hill towns ‘‘For kids right out of school, there are man was slowly tortured to death in 1995 by near the Vermont and New Hampshire bor- low-paying jobs out there,’’ says Tom Kussy, four men he considered his friends, police ders. In Heath, 42 percent of the homes are director of the North Quabbin Chamber of say. heated by wood, according to the US Census. Commerce in Athol. ‘‘We have plenty of And last August, two teenage Sturbridge The state average is 1.5 percent. A third of those jobs. It is a problem. We will never be girls were brutally beaten to death with a the homes in Heath also lack complete the great industrial center we were before.’’ log, allegedly by an older man who regularly plumbing, the largest percentage in the John is typical of a lot of struggling young offered to buy beer for young girls in town. state. men in Athol. He dropped out of high school Many in Athol, a town of 11,588 residents, Bob cuts as much wood as he can in the in the ninth grade and became a father be- dismiss the Florida incident as an aberra- spring, but he usually ends up having to buy fore he was 20. He and his 18-year-old wife, tion, pointing out that murders are still rare three cords each winter. In the never-ending Sherry, were married in October. They have and crimes committed by strangers an ex- battle for survival, it is a major expense. been together since she became pregnant in ception. Residents of other rural towns make Bob has applied for other jobs, at Mayhew middle school with their first son, who is the same point. Steel down in Shelburne Falls and at several now 3. They have another boy 8 months old. But clearly, life has changed. businesses in Greenfield, but he is not opti- The danger for John, say probation officers Once cherished for their simple ethos of mistic about improving his situation any and police in Athol, is slipping into a famil- hard work, many of these former farming time soon. iar cycle of excessive drinking and violence and industrial centers are among the most ‘‘If you don’t have a good job now, forget that often follows the frustration of working violent places in the state. it,’’ he says. ‘‘It’s getting worse. Every com- one lousy job after another or not working at Of the 30 communities with the highest pany is moving.’’ all. rates of assault, eight are located along sce- The Tanners point to neighboring Colrain, John has been arrested several times, nic Route 2, from Interstate 495 to the New where the largest employer in town, Amer- mostly for minor incidents. In July, he was York border. ican Fiber & Finishing, has announced it will charged with assaulting Sherry and placed Some of the youngest children ordered into move to North Carolina next June. The on probation. state custody in the past two years come town’s second largest employer, Veratec Cot- Despite a court order to stop drinking, from similar towns just the other side of the ton Bleachery, is also threatening to leave John hosted his own bachelor party in Octo- Quabbin Reservoir. unless it gets economic incentives to stay. ber. Police found him sitting with friends in March 20, 1997 CONGRESSIONAL RECORD — SENATE S2637 the smoke-filled living room of his apart- special two-hour tutoring session in a room disabled legal immigrants will lose ment. In a chair in the corner, Sherry fed isolated from other students. The arrange- their SSI and AFDC benefits. As a re- their baby a bottle. John admitted drinking ment was made after he allegedly threatened sult, some of these immigrants will be a few beers that night and was ordered into to kill his teacher earlier in the year, a unable to pay their room and board at alcohol counseling sessions, which he reluc- charge he and his mother deny. tantly attends. There is a telephone in the Sheffield home, residential treatment facilities. They John recently quit the chicken job again. but it can’t receive incoming calls and only may be forced to live on the street, He is working 20 hours a week for $6.50 an toll-free and collect calls are possible when without enough money to buy their hour at a Shell station in Gardner, 15 miles dialing out. life-saving medication. away. A shiny satellite dish stands out among Two cases demonstrate this problem. As bad as things are now, some worry it the abandoned cars and furniture in the In the first case, Mr. X, a former officer could get worse in Athol. There are whispers front yard. Cindy bought the dish after a in the South Vietnamese army, came about Starrett’s moving south, like so many cable company employee told her there was to the US as a refugee in 1991. As a re- of the other factories that once made this a a ‘‘better chance of seeing Jesus Christ’’ vibrant industrial center. than having cable installed in her area. sult of 12 years on the front lines of the Douglas R. Starrett, the company’s CEO, ‘‘We got to get something for the kids,’’ Vietnam War, and 10 years of torture has heard the rumors and is the first to she says. The Sheffields couldn’t keep up the in a re-education camp, he suffers from admit Athol would be ‘‘devastated’’ if his payments, however, and the satellite service serious mental illness. At the age of 54, company left. Nonetheless, he offers no guar- was shut off. he is too old to start over, learn a new antees. Satellite dishes sprout like weeds in the ‘‘I can’t say we will never do anything, but language, and hold down a job. yards of many of the poorest homes in this He receives treatment at a mental we want to stay here,’’ says Starrett, who is part of the state. It’s one of the things social 76 and a lifelong resident. ‘‘A lot of people health center in California, and re- workers count on seeing when they visit. ceives SSI. If his benefits are termi- see a gritty mill town, but that is not what Ray Burke, head of the westermost office I see. It is a great place * * * made on the of the state Department of Social Services, nated, he will no longer have enough wood stove. says a former social worker who left to take money to pay for his treatment. He is One of her children jokes about being able a similar job in North Carolina explained studying to pass the naturalization to make ‘‘welfare casserole’’ again: macaroni there was only one difference between poor exam, but his memory impairment lim- and cheese, a can of tuna fish and cream of families in the two states. mushroom soup. its his ability to study. Although the family is not on welfare, In rural Massachusetts, every poor family In the second case, a refugee from they subsist entirely on government benefits has a satellite dish, TV and piles of cut Vietnam receiving SSI has been diag- and the generosity of local charities. wood. In North Carolina, every poor family nosed with schizophrenia, and relies has a satellite dish, TV and air conditioner. There is $212 a month in food stamps, $1,135 heavily on medication. Without it, he a month in disability payments, $106 every SHOULD HAVE STAYED ON WELFARE hears voices, and cannot concentrate, other week in veterans’ benefits, $325 each ORANGE.—Tina Jellison works the first follow instructions, or remember any- winter in fuel assistance, and clothes and shift at Catamount Manufacturing in this thing he learned. He receives $772 a food baskets form the Clothing Collaborative old mill town, stuffing plastic ties into boxes in nearby Orange. All the children receive as they roll down an assembly line. month, of which $692 goes for room and free or reduced-priced lunches at school. At $6.83 an hour, it’s a job that pays her board at a residential facility. If his Only one member of the family has health only about $50 a month more than what she SSI benefits are cut off, he will be insurance and that is provided by the pub- received on welfare three years ago. The pay- forced to leave the facility, and will be licly funded MassHealth plan. check is not nearly enough to pay off her unable to pay for his medication. Cindy worked for a time last year as a debts and keep up with the rent and never- Unless Congress takes action, these store clerk in nearby Winchester, N.H., at $6 ending bills. an hour, but says she quit because her son stories will continue, and immigrants Tina is realistic about the chances of find- who need help for serious mental dis- was having problems at school. ing a higher paying job, so she turns to lady The Sheffields are one of thousands of fam- abilities will be turned away from their luck and the Massachusetts State Lottery ilies barely surviving in the hill towns of for help. She is a self-described scratch tick- treatment centers and residential fa- Central and Western Massachusetts. et addict, looking for a big hit to turn cilities. I ask unanimous consent that ‘‘People have no idea this town exists,’’ two recent newspaper articles on this Cindy says. ‘‘You say Warwick and they say, around her life. ‘Warwick, Rhode Island?’ ’’ ‘‘I started playing lottery tickets because I issue may be printed in the RECORD. Warick sits about five miles north of Route was desperate to get out of the hole,’’ she There being no objection, the mate- 2 between Athol and Greenfield. It is a town says. ‘‘I’ve never hit on scratch tickets and rial was ordered to be printed in the of fewer than 1,000 people with no industry. I’ve cut back lately.’’ RECORD, as follows: Cutting back means spending $25 instead of The only store in town recently went out of [From the Miami Herald] business. $60 on payday for scratch tickets. A CATASTROPHE AWAITS The Sheffields live up a steep, dirt road in Tina, who lives in a second floor apartment a house built by Cindy’s husband, Bob, who in downtown Athol with her two sons, ages In the rhetoric of Congress, welfare reform collects disability payments for mental ill- 10 and 12, is not the only one with lottery was to push the able-bodied off the dole and ness. The interior was never finished, and fever. In a town with one of the state’s low- into the work place. In the reality of South Cindy doubts they will ever have enough est median incomes, residents spent $5.1 mil- Florida’s legal immigrants—those who have money to cover the plywood floors. lion on instant tickets alone in 1995. met every legal test for being here, but who While the long country roads in Warwick Tina is struggling to hold onto her job. Her now are cruelly to the rejected—it bids to recall another era, the scene inside Cindy’s two sons are frequently in trouble with the push the aged, the sick, and the disabled off home is decidedly modern and chaotic. police and forced to skip school to attend their balance and into the street. Or the Her oldest son, Donald, just had a baby hearings at the Orange courthouse. A single grave. with his 15-year-old girlfriend; all three are mother, she never misses a court hearing or What awaits is a human tragedy. It is un- living in the home. There are Cindy’s other school meeting. It also means a lot of missed wise, unfair, and manifestly un-American. It children, a 10-year-old son and 12-year-old workdays. will be felt in South Florida as in few places daughter, adding to the crunch are relatives Then there is her car, an aging Chevy Cita- in this, the nation made great by immi- from South Carolina, a family of six that has tion with so many problems Tina is thankful grants. returned to Massachusetts to look for work for each day it gets her to work. Maria Cristina Rodriguez is 76 and a social and are staying with the Sheffields tempo- ‘‘I should have just stayed on welfare,’’ she worker at the Little Havana Activities and rarily. says. Nutrition Center. She now runs six support Every day begins early, with the children But she plans to keep working, in part be- groups for anxious seniors. She can’t forget getting ready for school. The oldest are cause new welfare rules will make it difficult the 79-year-old woman who—as talk of bene- bused to Northfield, a trip that takes an to begin collecting again. As for those fits cuts rolled radio waves last year— hour each way. scratch tickets? jumped to her death from her subsidized At 10 a.m., Cindy bundles up the baby and ‘‘I could get over the hump if I could just apartment. ‘‘Here I finish,’’ said her suicide walks her son, Ben Morin, to the elementary get over the scratch tickets,’’ she says. note, ‘‘before they finish me.’’ Now the final countdown has started, and school nearly two miles away. Cindy re- f cently bought a car, but has no money to this kind of panic is spreading. One day re- register or insure it. At noon, the three of NEW WELFARE LAW HURTS MEN- cently, 500 distressed seniors waited for the them make the return trip, either on foot or TALLY DISABLED IMMIGRANTS local office of U.S. Rep. Ileana Ros-Lehtinen, in the car of a school employee. R–Miami, to open. There they sought succor. They walk because Ben is not allowed on Mr. KENNEDY. Mr. President, under But little was to be had, Congress had spo- the school bus and only allowed to attend a the new welfare law, many mentally ken. S2638 CONGRESSIONAL RECORD — SENATE March 20, 1997 Social-service agencies already are feeling [From the Salt Lake Tribune, Jan. 27, 1997] abilities. In California alone, about 390,000 of the rising tide of dread and demand. At the AFTER DECADES, UNCLE SAM TELLS ELDERLY the 2.7 million on Aid to Families with De- Little Havana Center, two 80-year-old women NONCITIZENS WE WON’T HELP YOU ANY- pendent Children are legal noncitizens. walked in with a written suicide pact. With MORE: UNCLE SAM ROLLING UP WELCOME Utah officials are optimistic that few resi- no family to turn to, and facing loss of their MAT dents here will be hurt by the new restric- tions because the state can decide whether Supplemental Security Income—their sole (By Patty Henetz) means of living—they thought it best to kill to continue some benefits. Leaders are work- themselves. Heed that, Congress. Federal lawmakers meant to be absolutely ing to avoid harming noncitizens who are in clear when they ordered the end of public as- Would that this panic were overblown. It is the country legally, especially the most vul- sistance to legal immigrants in the Personal not. Thanks to last year’s welfare-reform nerable elders on Medicaid. Responsibility and Work Opportunity Act of law, legal immigrants who are destitute, Last fall, the Utah departments of Health 1996. sick, or aged will lose their federal assist- and Human Services surveyed the rolls of Just look at the bill’s name. If questions ance beginning in August. Florida expects legal noncitizens receiving Medicaid and remain, its backers will spell it out: Come to 115,000 immigrants to lose life-sustaining found that as many as 250 could be in jeop- America. But never forget you are a guest benefits, principally food stamps and SSI. ardy. They examined ways to keep from cut- and must pull your own weight. The numbers in Dade are particularly ting benefits and reduced that list to 10 Rose Boyer assumed that responsibility names. Further culling left only three people frightening. Here, if nothing is done, 80,000 when she emigrated here from Lebanon 76 legal immigrants—nearly twice the number ineligible for Medicaid, says Michael Diely, years ago. But the 92-year-old widow, who director of the state Health Department’s di- of Dade’s U.S.-citizen ‘‘welfare moms’’ who’ll has been in nursing homes for the past 30 lose benefits in the next two years—will lose vision of health-care financing. Two are in years, can’t speak for herself because she has nursing homes, one is at the state training there life-line support. That 80,000 includes no idea what is going on around here. more than 40,000 who get SSI—the cash aid center. Which may be just as well, since the letter Legal noncitizens who receive food stamps for the most poor, aged, and disabled. she received from the state the first week of will lose that benefit April 1, and the state is The new welfare law did make some excep- December would have been incomprehensible not allowed to do anything to continue it. tions. Immigrants who worked in the United even if she did not suffer from dementia. Some 1,900 Utah legal noncitizens receiving States 10 years, were veterans of the nation’s The letter said her medical-assistance case SSI are now under review; because SSI eligi- armed forces, or who were admitted as refu- would be closed as of Dec. 31, 1996. Under new bility requirements have become increas- gees or granted asylum may remain eligible federal regulations, she is not qualified to re- ingly strict under the reforms, hundreds for aid. For most legal immigrants, though ceive Medicaid benefits. The $2,700 her nurs- stand to lose their disability pay. only citizenship offers a safety net. ing home received each month for her care The Utah Legislature this session will con- What the welfare law did not provide was would cease. Incredibly, the government ap- sider a bill, the Family Employment Pro- any assistance for those immigrants too old peared to be telling her it was time she quit gram Bill, sponsored by Rep. Lloyd and infirm to document their work history shirking her responsibilities. Frandsen, R-South Jordan, that could pro- or other eligibility criteria. Not did it pro- At the same time, state Humane Services vide noncitizen legal residents with cash vide for those already in the naturalization Director Robin Arnold-Williams alerted Gov. payments. And Leavitt has been asked to process. Nor did it allow for those who, be- Mike Leavitt that Boyer was likely to lose take part in related negotiations with fed- cause of mental disability, are not legally her aid, as could several others. The gov- eral leaders during the National Governors competent to take the citizenship oath. In ernor vowed to protect her—at least until Association meeting next month. this saddest of categories, at least 5,000 im- August. ‘‘He isn’t going to kick people out ‘‘The whole issue of having a handful of migrants will lose benefits in Dade and on the street because there was a line in the people that we need to take care of and the Broward, says the Alliance for Aging, which regulation that said we had to,’’ says Leavitt possibility of more down the road dem- administers federal funds to 30 local agen- spokeswoman Vicki Varela. onstrates the need for more flexibility from cies. So now, no legal immigrants will lose their the federal government,’’ Varela says. U.S.-citizen Floridians transitioning from Medicaid protections. And if Leavitt, state Many of the people affected by the reforms welfare to work are getting two years and humane services officials, the immigrants’ are noncitizens who have not bothered to be- job training before their aid is cut. In that families and friends have their way, no one come naturalized. They are known as light, the transition time offered legal immi- will—even though on its face the federal law PRUCOLS, or people residing in the country grants—a scant one year—its pathetic. It would have done it otherwise. under color of law. The Immigration and comes at a time when the Miami Immigra- Rose Boyer’s husband was naturalized in Naturalization Service knows and has known tion and Naturalization Service office has 1939 and died in 1946. She reared nine chil- they are here, but has made no move to de- 90,000 cases to process, and becoming a citi- dren, all U.S. citizens. She has outlived one port them. This group includes those who zen can easily take 10 to 13 months. So even of them. Her youngest living child, Sandy came to the country on temporary or stu- if the INS adds 70 new employees to process resident Louis Boyer, is 59. Her oldest son is dent visas and never left. They work here, applications—a plan announced this week— retired and ill; another lives on his Social have families and pay taxes, have stayed be- some legal immigrants could lose months of Security payment of $500 per month. The yond their legal limit but have not been vital benefits before becoming citizens and other three sons have diabetes. One has lost deemed illegal. Many of them are old, and having their eligibility restored. two legs, another has lost one leg, and all now, most of them are scared. three were blinded by their disease. One Picture Dade (and to a lesser extent Lorena Riffo, who heads the state Office of daughter is a retired maid who can’t walk Broward) after August. Elderly legal immi- Hispanic Affairs, says she is working with much anymore; the other daughter, a 61- grants evicted and homeless. Anxiety-pro- the federal Immigration and Naturalization year-old clerical worker who wants to retire, voked deaths and disease. Overwhelmed fam- Service to assist the many older legal non- also has difficulty walking. ilies and social-services agencies. For the citizens who have applied for citizenship Louis Boyer helps out the five siblings who economy, the loss of $200 to $300 million an- since the federal reforms were enacted. It live in Utah. nually. It is a book of tragedy waiting to be may be possible, she says, to allow people ‘‘I try to do what I can,’’ he says. ‘‘I could written not in chapters, but in paragraphs— older than 65 to take the citizenship exam in pay for her keep, but then I would be in trou- each representing a single, undeserved, pre- their native languages and in senior centers ble. Our family has a lot of problems, but so ventable human tragedy. instead of INS offices, which could quell far our mother is the only one on welfare. It anxieties. Many Floridians express concern, but few was a big shock to me when they said they These measures won’t help people who are so far have taken meaningful action. Some were going to kick her out.’’ incapable of becoming citizens, such as Rose legislators have been searching for solutions Kris Mosley, Murray Care Center’s social Boyer and Lia Andrienko. in Tallahassee and Washington. Governor worker, was beyond shock. ‘‘I was furious,’’ Andrienko’s husband was one of the mil- Chiles has been pressing for federal fixes as she says. ‘‘I was screaming mad. Who would lions killed during the Stalinist purges in well. Area agencies are cooperating in trying want to discharge this little lady who can’t the old Soviet Union. After her husband was to think the unthinkable. Catholic Charities walk, can’t talk, who can barely feed her- killed in 1938, she was ordered to leave Kiev of the Archdiocese of Miami, for one, has self?’’ or risk death for having married an enemy of been trying to raise funds for a massive nat- It may be difficult for affected families to the state. Her daughter was 1 year old. For uralization and immigrant-assistance drive. take much comfort in this, but Utah is get- most of her life, Mila Andrienko, now Yet, altogether, inexplicably, with five ting off easy. The federal welfare cuts are Popova, kept her father’s history a fearful months to go, south Florida remains woe- hammering more populous states, particu- secret. fully undermobilized. (By comparison, Los larly those on the coasts. In 1989, when it was possible, Mila and her Angeles County, Calif, organized 200 agencies Nationwide, 250,000 elderly immigrants are husband, Oleg, left Ukraine for the United and started a massive naturalization drive expected to lose their food-stamp allot- States. Mila, who had been a physician, now last October.) ments. About 500,000 legal noncitizens, the works as a medical assistant. Oleg, formerly Unless superhuman efforts begin now, vast majority of them elderly, will lose their a civil engineer, delivers newspapers. In 1991, there won’t be enough time to avert the Supplemental Security Income benefits. SSI they sent for Lia, who was 82 and without human carnage. is paid to qualified people with severe dis- other family. She became ill with dementia March 20, 1997 CONGRESSIONAL RECORD — SENATE S2639 soon afterward. She would not sleep at night; The new law requires immigrants and We expect sponsors to be respon- her daughter and son-in-law, who worked all US citizens seeking to bring immigrant sible—far more responsible than we ex- day, stayed awake while Lia roamed the relatives to the US to meet strict in- pect ordinary Americans to be. We ex- house sobbing and tearing her clothes. ‘‘For come requirements. Anyone sponsoring three years, I did not sleep.’’ says Popova. pect sponsors to do it all—pursue the ‘‘She did awful things at night. I do not an immigrant relative for admission to American dream, hold a good job, and know why I didn’t give her pills.’’ the US must earn at least 125% of the under the new law, hold a better job Finally, the Popova asked the state for poverty level. For a family of four, than almost a third of American citi- help, Andrienko went on Medicaid and 125% of the poverty level is more than zens. The 125% requirement contained moved into the Murray Care Center, where $20,000 per year. in the new immigration law puts fam- Rose Boyer also lives. And like Rose Boyer, The INS study examined sponsorship ily reunification out of reach for many Andrienko got a letter in December telling patterns under the old law, and found her—though she could not understand—that hard-working Americans and the ma- that 29% of family sponsors had in- jority of legal immigrants. her time on American medical assistance comes below 125% of poverty. That had run out. In addition, the study found that the ‘‘When I received this letter, I cried,’’ says means 3 out of every 10 families who 125% requirement disproportionately Popova. ‘‘What will I do? I cannot leave my came here in recent years probably affects minority communities. Half of job to care for her. And Kris (Mosley) said could not have been reunited with fam- the immigrants coming from Mexico ‘We will fight. We will fight.’’’ ily members under the new 125% rule. Social worker Mosley has been fighting and El Salvador had sponsors who In addition, 52% of immigrants who earned less than 125% of the poverty since the letters came. The promise Leavitt sponsored their spouses did not meet level. The same was true for a third of made to protect the three legal noncitizens the 125% income threshold. In other who otherwise would lose their Medicaid is immigrants coming from Korea and the words, over half of all immigrants who good until August. Mosley is on an ad hoc Dominican Republic, and a fourth of brought in husbands or wives—the clos- committee trying to figure out how to ex- immigrants coming from China and Ja- est of all family members—would be tend the protection. ‘‘One answer is to go maica. So, future immigrants from through the deportment process, with an at- disqualified if they tried to bring them these countries will have unfair dif- torney,’’ she says. A judge could find it ab- in today. surd to send Rose Boyer back to Lebanon In addition, according to the study, ficulty reuniting with their families in more than seven decades after she left and 29% of American citizens who spon- the United States. issue a ‘suspension of deportation,’ which sored their spouses earn below the 125% Supporters of the 125% requirement would allow her to stay on Medicaid. Lia level. That’s 3 out of every 10 American often point out that the new law allows Andrienko could apply for political asylum, low income sponsors to overcome the but probably wouldn’t get it, leaving the citizen sponsors who could not be re- united with their spouses under the 125% hurdle by lining up backup spon- Popovas to pay for care they simply cannot sors. What they fail to say, however, is afford. new law. ‘‘Their answer is not a pretty one,’’ Mosley The new requirement hurts both that low-income, working class spon- says. ‘‘Under all the guidelines, no matter working American families and legal sors usually have low-income, working what piece of paperwork I fill out, I cannot immigrants. As a result, large numbers class friends. As a result, it is ex- change their alien status.’’ of them cannot reunite with their tremely difficult to find back up spon- Naturally, Louis Boyer is worried. ‘‘My loved ones. The new threshold means sors with income sufficient to meet the mother needs 24-hour care. I wouldn’t be able 125% requirement. to take care of her,’’ he says. ‘‘I don’t know that the average construction workers why she never became a citizen. She went to with two children could not sponsor In addition, because the new law school here, but never finished her education their immigrant spouse. makes sponsorship agreements legally because she was barefoot and pregnant for so We are talking about hard-working binding contracts, non-family members many years. She must have figured that with Americans and legal immigrants—peo- are unlikely to agree to sponsorship. her husband and her children all citizens, it ple who have played by the rules. I Friends and family know that if they was no big deal. She entered the country le- doubt that anyone in this Congress agree to sponsor an immigrant, they gally, but she never had a green card. She can be sued by the federal, state, or has a Social Security card, given to her in wants to deny American citizens the 1972.’’ opportunity to bring their spouse to local government if the immigrant Popova doesn’t know what is going to hap- America or watch their children grow needs public assistance. If the immi- pen with her mother. She certainly can’t go up here. But, that is what the 125% re- grant they sponsor is injured on the job back to Ukraine. For now, Popova consoles quirement does. It denies hard-working and needs medical care, the back-up herself with her sense of gratitude and good Americans these opportunities because sponsor may have to pay thousands of luck at being in the United States. the full time job they hold doesn’t pay dollars in medical bills. Many families ‘‘Every time I am in the nursing home, I say, ‘Bless America. Bless these people,’’’ enough. are not willing to ask their friends and she says. ‘‘I am happy because my family is Supporters of the new requirement other relatives to shoulder such a happy here. I am an American.’’ claim that the income requirement is heavy burden. f intended to keep immigrants off wel- I hope that all of us in this Congress fare. But in reality, after last year’s who are concerned about families in SPONSORSHIP STUDY SHOWS DEV- sweeping welfare reforms, there is very the immigration laws will work to- ASTATING EFFECTS OF IMMI- little public assistance for which legal gether to revise these harsh provisions. GRATION LAW immigrants qualify. They are banned There is no justification for this bla- Mr. KENNEDY. Mr. President, a from receiving SSI and Food Stamps tant kind of bias in the immigration soon-to-be-released study commis- until they have worked and paid taxes laws, and Congress has an obligation to sioned by the Immigration and Natu- for 10 years—or until they become citi- end it. ralization Service shows that the im- zens. They are banned from Medicaid I ask unanimous consent that a re- migration law Congress passed last and other needs-based programs for cent article from the New York Times year will have a devastating impact on their first five years in the United on this new study be printed at this family reunification—especially for States, after which they receive assist- point in the RECORD. working families. ance only if their sponsors are unable There being no objection, the article Members of Congress may think they to provide for them. So even if their was ordered to be printed in the voted last year to put aside proposals sponsors have only modest incomes, RECORD, as follows: to reduce legal immigration. But in the immigrants they sponsor are ineli- [From the New York Times, Mar. 16, 1997] fact, as this new study shows, last gible for public aid. IMMIGRANT STUDY FINDS MANY BELOW NEW year’s bill may have accomplished I supported measure to make spon- INCOME LIMIT back door cuts that could not have sors more responsible for the care of (By Celia W. Dugger) been achieved through the front door. the immigrants they bring in. But The onerous new sponsorship require- A new Federal analysis has found that an these requirements should not be so immigration law adopted last fall will make ments are likely to cause a one-third burdensome that they prevent Amer- it much more difficult for poor and working- reduction in the number of immigrants ican citizens from having their wives class immigrants to bring family members entering the United States to join close or husbands or children join them in to the United States legally, especially family members here. the United States. Mexicans and Salvadorans, whose incomes S2640 CONGRESSIONAL RECORD — SENATE March 20, 1997 are generally lower than those of other im- Representative Lamar Smith, a Texas Re- ‘‘We don’t need to import a poverty class migrant groups. publican who is chairman of the House Im- into this country,’’ John L. Martin, special But Congressional sponsors of the legisla- migration Subcommittee and a sponsor of projects director at the federation, said. tion say their intent was not to impose un- the law, said in a statement on Friday that But advocates for immigrants say the new fair burdens on immigrant families but sim- he had been advised that the methodology of law runs counter to America’s commitment ply to prevent them from becoming depend- the immigration service’s research was ‘‘fa- to encouraging immigrants to reconstruct ent on public aid. tally flawed.’’ their close families here. The law requires immigrants seeking to New studies of the impact of last year’s ‘‘The new law will mean that literally bring relatives here to meet income require- immigration law are being scrutinized be- thousands of U.S. citizens and lawful perma- ments and to make legally enforceable prom- cause the issue of immigration is so politi- nent residents won’t be able to reunite with ises to support the newcomers. cally charged and because legal changes so their spouses, children and other family Advocates for immigrants say these re- often have unanticipated consequences. members,’’ said Jeanne A. Butterfield, exec- strictions are a backdoor way to slash legal Complicating this debate is the disagree- utive director of the American Immigration immigration in a year when Republicans in ment among experts about just how much Lawyers Association. Congress failed to reduce immigration levels legal immigrants rely on public assistance. f directly. They say it will needlessly divide The Urban Institute says that 94 percent of hard-working husbands and wives from each immigrants do not receive welfare. George J. IN RECOGNITION OF PAUL Borjas, a professor of public policy at the other and their children. HOSHIKO The law, which is to go into effect later John F. Kennedy School of Government at this year after regulations are finalized, re- Harvard University, using a broader defini- Mr. ALLARD. Mr. President, I rise quires immigrants sponsoring family mem- tion of welfare benefits, says that 21 percent today to pay tribute to a fine Amer- bers for admission to the United States to of all immigrant households receive some ican, a great father and a good friend, type of public assistance, compared with 14 make at least 125 percent of the poverty Paul Hoshiko of Eaton, Colorado. Paul level, or $19,500 for a family of four. percent of native households. Under the old law, there was no income Even with the data on the income require- recently passed away, but left behind test for sponsors, just a requirement that in- ments, it is difficult to predict exactly what him a legacy of accomplishment and coming immigrants show they would not impact the new law will have on immigra- achievement that deserves to be recog- need public aid. In deciding whether to issue tion levels. For one thing, people who cannot nized by all Americans. visas, consular officers at United States em- immigrate legally may come anyway. To many, Paul Hoshiko was known ‘‘The perverse effect of the law will be to bassies overseas could consider whether pro- as a leader in the agricultural arena. spective immigrants had jobs waiting, mar- encourage illegal immigration,’’ said Cecilia Munoz, a deputy vice president of the Na- To others he was known for his civic ketable skills, enough savings to support involvement and his donation of time themselves or a sponsor. tional Council of La Raza, a nonprofit His- Preliminary research, sponsored by the panic civil rights organization. ‘‘The ties be- and money for various charities. I United States Immigration and Naturaliza- tween families are probably stronger than knew him not only in those regards, tion Service and based on a random survey of our laws.’’ but also as a moral man who put his All immigrants seeking to join their fami- 2,160 statements signed by sponsors of family family first; who had a deep and abid- lies will need a sponsor when the law takes immigrants in 1994, found that about 3 in 10 effect; the old law did not require a sponsor ing faith in his God; and one who was of those sponsors had incomes below the new for those who convinced officials that they an unabashed patriot. But in all re- standard. could support themselves. About one-quarter gards and to all who knew him, Paul Another study conducted last year by the of the immigrants who joined their families Urban Institute, a nonprofit research group Hoshiko, was admired and respected. in 1994 had no sponsor, according to the new in Washington, reached similar conclusions. He served on numerous boards and research, and it is not possible to determine Its examination of 1993 Census Bureau in- committees throughout his life which how they would have fared under the new come data found that 40 percent of immi- showed his standing in the community. law. grant families in the United States and 26 In addition, under the new law, sponsors One of the most prestigious positions percent of Americans born in the United who do not meet the new income standards he held was his appointment by the States would not make enough to sponsor an will be allowed to recruit a friend or other U.S. Secretary of Agriculture to the immigrant under the new standard. relative who does earn enough to sign a Colorado State Agricultural Stabiliza- Federal immigration officials refused to statement in their stead, promising to sup- discuss their new research, which had not tion and Conservation Committee. port the new immigrant if necessary. Some other organizations he was in- yet been released, or to say whether the pre- That may enable more people to bring in liminary findings had changed. But several relatives, although another provision of the volved with were the Extension Advi- people familiar with the research—three who law is already discouraging some close fam- sory Committee, Colorado Seed Grow- opposed the new law and two who favored ily members, not to mention friends, from ers Association, Central Weld Water it—described the findings on condition that signing such legally binding statements, im- District, member of Kersey & Greeley their names not be used. migration lawyers say. area Chamber of Commerce, member of Based on the survey of statements signed In the past, such promises have generally Weld County Farm Bureau, Director of by sponsors, immigration officials estimated been found unenforceable in the courts, but that roughly half of the Mexicans and Salva- the new law specifically empowers Federal, Lower Latham Reservoir for over 30 dorans, one-third of the Dominicans and Ko- state and local governments to sue sponsors years, and the hospital foundation, reans, one-fourth of the Chinese and Jamai- of immigrants who wind up on public assist- among others. He received countless cans and one-fifth of the Filipinos, Indians ance. It also allows immigrants to sue their awards from these associations which and Vietnamese would not have met the new sponsors for support. The sponsor is respon- illustrate his leadership and influence. income requirements. sible until the immigrant becomes a citizen Paul was perhaps best known around One opponent of the new laws who spoke or has been working and paying taxes for 10 the country as the ‘‘onion king’’. In on condition of anonymity said the study years. showed that half of the legal permanent resi- Ana C. Zigal, an immigration lawyer in fact, his sole appearance on commer- dents and about 3 in 10 of the citizens who Baltimore, said she represents a young col- cial television (at least so far as I sponsored their wives in 1994 would not have lege student married to an illegal Mexican know) was standing in an onion field met the income standard. immigrant who installs air-conditioners for explaining to a future U.S. Senator The cases surveyed included both immi- a living. The student, who works as a sales what it took, ‘‘to be a good onion grants seeking to join their families here and clerk in a department store, does not make man’’. He was elected to the Board of those already in the United States, who may enough to sponsor her husband and her fa- the National Onion Association and have entered on student visas or illegally, ther is ‘‘very scared’’ about signing a state- served as president for five years. Dur- trying to become legal permanent residents. ment promising to support his son-in-law if In 1994, 461,725 immigrants came to the necessary, Mr. Zigal said. ing his tenure the national office was United States to join their families here, ac- ‘‘What if that kid has a car accident that moved to Greeley, Colorado. He served cording to Federal statistics. Demographers leaves him a paraplegic?’’ Ms. Zigal said. on the board of directors of this asso- with the New York City Planning Depart- ‘‘The father is weighing his daughter’s happi- ciation until his death. ment estimate that about 1 in 6 of those im- ness against these future unknowns.’’ However, perhaps most notable and migrants came to the city. The new requirements continue to stir de- dearest to his heart, Paul should be But the new research comes with these bate about the purpose of immigration to the recognized for his lifelong devotion to cautions: the income reported on each state- United States. Groups that favor more re- ment was not verified, and the size of the strictive policies, like the Federation for the 4–H program. He actively partici- families and the incomes they would need to American Immigration Reform, contend the pated in this organization his entire meet the new standard were difficult to de- law will help keep out those who cannot sup- life, both as a member and as a leader. termine in a substantial portion of the cases. port themselves. He was continuously taking strides to March 20, 1997 CONGRESSIONAL RECORD — SENATE S2641 make 4–H an astronomical success, in- vidson College and Harvard University, crop, our agriculture community needs cluding but not limited to his active Mr. Wall was determined to find ways attention. involvement in the International Farm to streamline Canal and make it more Now, what is the future of agri- Youth Exchange program, the National efficient and profitable. From what I culture? I tend to believe that our fu- Western Stock Show, an annual State understand, he was more than success- ture is in trade and technology. We are 4–H golf tournament, and a 4–H lighted ful in his objectives, as Canal is now a strategically positioned to compete softball field. He made a tremendous world leader in the timber industry, as and win on a world market. We are also impact on those lives he touched while well as becoming a prominent company leading the world in our ag research partaking in the 4–H program. His de- in commercial development in the with many exciting advancements on votion is reflected in the faces of those Myrtle Beach area. the horizon. Where we need to con- Perhaps one of the hallmarks of a youth who had the opportunity to work centrate is on the crafting of future good business person is how much they with him in these projects. Agriculture leaders for America. In my give back to the community and state In summary, Mr. President, as you state, the Georgia Farm Bureau, the which allowed them to prosper. In the can see by my remarks, Paul was a Georgia Agribusiness Council and the case of Mr. Wall, he was very generous born leader. He gave to his family, state Department of Agriculture and in what he contributed to South Caro- community, church and region unself- University, in coordination with others lina and he set an excellent example ishly. He was the kind of man who only involved in agriculture, have teamed for other corporate executives to fol- comes along every so often . . . and his up to promote a program for future ag low. His expertise and insight were val- life deserves to be recognized. leaders. Program participants are se- ued by many, and he served on count- f lected for their leadership, integrity less boards, including those of David- and effectiveness and are chosen in THE VERY BAD DEBT BOXSCORE son College and NationsBank. He was a order to better communicate with non- Mr. HELMS. Mr. President, at the strong advocate of education and ag leaders the many challenges facing close of business yesterday, Wednes- worked hard to ensure that the Pal- agriculture today. This program was day, March 19, 1997, the federal debt metto State had a school system that adopted six years ago and is called the stood at $5,367,674,335,377.56. would guarantee that none of our citi- Georgia Agri-Leaders Forum. The Agri- One year ago, March 19, 1996, the fed- zens lack for the skills they would re- Leaders of Georgia are all standouts in eral debt stood at $5,058,839,000,000. quire to succeed in life. Five years ago, March 19, 1992, the Mr. President, Craig Wall was a man various fields related to agriculture. federal debt stood at $3,862,284,000,000. who had a tremendous impact on life in They come from farms, banks, elec- Ten years ago, March 19, 1987, the South Carolina, and though he passed trical membership cooperatives, com- federal debt stood at $2,243,959,000,000. away at far too young an age, his star modity groups and other organizations Fifteen years ago, March 19, 1982, the certainly shone bright. We are all with a common agricultural thread. federal debt stood at $1,050,933,000,000 grateful for the leadership and con- These leaders should be commended for which reflects a debt increase of more tributions he made throughout his life their contributions to agriculture and than $4 trillion ($4,318,164,231,511.65) and career, and his wife and children their service in what should be a mis- during the past 15 years. have my deepest sympathies. sion to better educate America on just what her annual harvests mean to our f f national security and health. They are TRIBUTE TO THE LATE EDWIN NATIONAL AGRICULTURE DAY the best and brightest in Georgia agri- CRAIG WALL, JR. Mr. COVERDELL. Mr. President, I culture each year, and I want to recog- Mr. THURMOND. Mr. President, in would guess that many in the gallery nize them on this important day. The any state, there are certain individuals today, and even some of my colleagues, following are the class of the 1997 Geor- who make their mark in one or more are unaware of today’s significance for gia Agri-Leaders Forum: fields, and in the process, they not only rural America. Today is National Agri- Dr. David K. Bishop, Extension Animal earn personal success, but they also culture Day and should be a time of Scientist (University of Georgia) Tifton, GA; make significant contributions to the great reflection and celebration for all Roger L. Branch, Southeastern Gin Inc., place they call ‘‘home’’. I rise today to Americans. It is unfortunate that Surrency, GA; Louie Canova, Floyd County pay tribute to one such man, Edwin many in today’s society are unaware of Extension Director, Rome, GA; Charles agriculture’s daily role in their lives, Enfinger, Pineland Plantation, Newton, GA; Craig Wall, Jr., who was a successful Clint Hood, President, Allied Bank of GA;, businessman and civic booster, who re- but the fault for this may lie with Louisville, GA; Sam James, Regional Mar- cently passed away after being struck those of us in the agricultural sector keting Manager, Gold Kist, Inc., Atlanta, by a heart attack. who have not properly told our story. GA; Debra M. Cervetti Engineer, Cornerstone During his adult life, Mr. Wall distin- The significance of this day is held in Engineering, Moultrie, GA; James Colson, guished himself as a leader of business the tremendous, yet quiet, success Regional Accounts Manager, Gold Kist Inc., and industry in the Grand Strand area story American farmers have written Valdosta, GA; Frank Dean, Vice President, of South Carolina. This region is one of in building this nation. Although our North GA; Farm Credit, ACA Daniel L. John- the fastest growing parts of the Pal- agricultural community is in a period son, D.L. Johnson Farms, Alma, GA; Robert F. Jones, The Kroger Company, Atlanta, GA; metto State and represents a well de- of great transition, there still can be George Larsen II, Lone Oak Plantation, veloped and diversified economy that no dispute—American farmers produce DeSoto, GA; April Lavender, Georgia For- includes manufacturing, tourism, and the world safest, most abundant and af- estry Association, Norcross, GA; Mary Ellen shipping concerns. Tens of thousands of fordable food and fibers. This did not Lawson, GA; Department of Agriculture, At- South Carolinians are employed in come by accident. American farmers, lanta, GA; Dr. Daniel V. McCracken, Dept. good paying, secure jobs, and the reve- with a few exceptions, have enjoyed a Of Crop and Soil Science (University of GA;), nues that are contributed to our positive partnership with their govern- Griffin, GA; Clete Sanders, S&S Farms, State’s coffers from this area are cer- ment. Congress has long backed vital Forsyth, GA; Shirley Stripling, Chula Pea- nuts and Grain, Chula, GA; Stephen L. Mor- tainly significant. Without question, research, promotion and insurance ac- gan, ISK Bioscience, Thomasville, GA; Mr. Wall helped to create this very im- tivities for farmers. These efforts, for James R. Noble, GA; Power Company, pressive picture of economic health the most part, need to continue in Tifton, GA; Richard L. Oliver, Area Con- that typifies the Grand Strand and Pee order to maintain our excellence. Just servationist (USDA/NRCS), Rome, GA; Lynn Dee. coming out of the 1996 Farm Bill, we D. Thornhill, Abraham Baldwin Agricultural Though Mr. Wall entered the should now carefully evaluate our work College, Tifton, GA; Frank Wade, Jr., A.F. businessworld with a tremendous ad- to determine where our policies have Wade CPA, Cochran, GA; vantage, his father had built a very been successful and where we need Mr. President, I want to again recog- successful company called Canal Indus- work. Let’s not forget that agriculture nize and congratulate this fine class of tries, he chose not to rest on the ac- is our nation’s number one export prod- agri-leaders for their contributions to complishments of his namesake. uct, and in my state, is the largest in- agriculture and to their country on Trained at the business schools of Da- dustry. My point is, just like a good this National Agriculture Day. S2642 CONGRESSIONAL RECORD — SENATE March 20, 1997 NORTHERN IRELAND WOMEN’S collapse under the weight of a renewed ter- being.’’ The greatest good women can bring COALITION rorist onslaught while everyone awaits a new to the political talks, Fearon believes, is the Government in Westminster, will the Wom- ability to ‘‘Untaint the concept of com- Mr. KENNEDY. Mr. President, ear- en’s Coalition survive? It has been a rocky promise, because we have always had to com- lier this week, I met with Monica nine months since the Stormont talks and promise. It’s a dirty word to men.’’ Com- McWilliams of the Northern Ireland the Separate Forum meetings began, in promise may be a long way down the road, Women’s Coalition. She and Pearl many respects a baptism of fire for these but there’s one thing the men in the other Sagar were the only two women par- women with little experience of life at the parties could do straight away to show they ticipating in the Northern Ireland political coalface. Perhaps for that reason, are reformable. ‘‘They’ve only recently been peace talks, so ably chaired by our the Women’s Coalition seems nowhere near able to start calling us the Women’s Coali- as depressed as the other parties by the lack tion, before that it was always the Ladies’ former Senate colleague George Mitch- of progress. Coalition. They couldn’t get their heads ell, when they began last June. A sense of humour helps. Monica around it. The only time they use women The Northern Ireland Women’s Coali- McWilliams, a senior lecturer in social pol- was when they prefixed it with whingeing or tion is composed of Unionist and Na- icy at the University of Ulster, and Pearl whining.’’ Sagar, an east Belfast community worker, tionalist women who have united in f common cause for peace and for an end need thick skins to survive the bearpit that to religious discrimination in Northern is the forum, a body boycotted by Sinn Fein and the SDLP. Ten days ago, for instance, HONORING ARNOLD ARONSON ON Ireland. The Coalition serves as an elo- the DUP MP Rev. William McCrea told the HIS 86TH BIRTHDAY quent voice of civility in an often un- Forum in his best Old Testament delivery: Mr. KENNEDY. Mr. President, I am civil climate. It is especially important ‘‘As long as I live, I’ll have a mission, which here along with a number of my col- that women’s voices continue to be is to teach those two women to stand behind leagues to honor Arnie Aronson on his heard in the search for an end to the the loyal men of Ulster.’’ So Sagar and McWilliams burst out singing Stand By Your 86th birthday, which was March 11. violence and a peaceful future for Arnie eminently deserves his reputa- Northern Ireland. Man. ‘‘He was raging,’’ McWilliams laughs, adding: ‘‘You can be shocked by the abuse tion as one of the greatest founders of Monica McWilliams talks frankly you get. I had to ask the chair to call order the civil rights movement. and effectively about her commitment three times. At one stage, Ian Paisley Junior Throughout his long and brilliant ca- to inclusive peace talks and an end to started mooing.’’ May Blood knows why they reer, he has been a leader in every the violence in Northern Ireland. are treated like this. ‘‘It’s because we’re stage of the struggle for equal justice making inroads, they’re threatened by us. Speaking about the intransigence of for all Americans. Over half a century some in the talks, she has said, ‘‘We’re The strange thing is, I would know the DUP quite well, living and working on the ago, in 1941, he headed the Bureau of naming them, we’re blaming them, and Jewish employment problems, a one- we’re shaming them.’’ She has called Shankill. Now outside they’re one thing, but I can meet them inside the talks and it’s as person agency in Chicago that inves- on the IRA to restore its cease-fire, and if I didn’t even exist. I can understand where tigated discrimination against Jews. called on the British Government to they’re coming from, but you can’t be think- There were no fax machines, no cel- admit Sinn Fein to the peace talks ing like that now. They’ve got to realise that lular phones, no computers then, no when the cease-fire is restored. women have as much part to play here and I television sets—just one person with an Monica McWilliams and her col- think this is what really bugs men.’’ But it’s iron will to eradicate discrimination. leagues in the Coalition have shown a not just the way they are treated by their Arnie recognized that the plague of great deal of courage in their involve- political equals that irks the Women’s Coali- discrimination would not be overcome ment in the political process. Ms. tion. The media, they claim, aren’t prepared unless victims of different races and re- McWilliams recently had her car van- to take them seriously either. Last month, Blood, McWilliams and Sagar were invited to ligions joined together. As Arnie once dalized, but as she bravely stated, Number Ten for talks with the prime min- said, ‘‘the struggle for civil rights can- ‘‘That’s okay, as long as there’s ister. A half-hour meeting ran on for an hour not be won by any one group acting by peace.’’ and a quarter. But neither the BBC nor UTV or for itself alone, but only through a Mr. President, the Women’s Coalition in Northern Ireland covered the event. The coalition of groups that share a com- offers real hope for a better future for Belfast Telegraph gave it 300 words. Northern Ireland. I ask unanimous con- ‘‘If it had been any of the other parties, mon commitment to equal justice and sent that a recent article about the Co- they would have been all over them,’’ says equal opportunity for every Amer- Kate Fearon, a 27-year-old think tank assist- ican.’’ alition which appeared in the Man- ant director. ‘‘The problem is, we tend to get chester Guardian in England be printed At that time, Arnie also formed the into the press only when we are being badly Chicago Council Against Religious and in the RECORD. treated by the other parties and it’s easy to Racial Discrimination, a coalition of There being no objection, the article reel off such stories.’’ They are all frustrated was ordered to be printed in the at the lack of recognition they have received religious, labor, ethnic, civil rights, and social welfare organizations. His RECORD, as follows: for the behind-the-scenes work going on at organization was immensely successful [From the Guardian, Feb. 17, 1997] the talks. The confirmation of former US Senate leader George Mitchell as chairman, in addressing the problems of discrimi- WOMEN ALL TOGETHER NOW—IF THE POLITI- for example, in a marathon session running nation. CAL TALKS IN NORTHERN IRELAND COL- into the early hours of the morning. For over 30 years, from 1945 to 1976, LAPSE, WILL THE WOMEN’S COALITION SUR- The drafting of an ‘‘Order in Council’’ VIVE? Arnie was program director for the Na- which could immediately enact the North re- tional Jewish Community Relations (By David Sharrock) port’s proposals on regulating parades was In its corridors of power, the political bro- another coup. Labour’s Mo Mowlam com- Advisory Council, a coalition of na- kers of Northern Ireland’s future have mented: ‘‘If the Women’s Coalition can tional and local Jewish agencies. Dur- weighty issues on their minds. Here comes produce draft legislation with such speed and ing this period, he worked on every Monica McWilliams of the Women’s Coali- with very little administrative back-up, why major piece of civil rights legislation, tion, being tackled by one of Ian Paisley’s can’t the Government?’’ Blood thinks a and every major civil rights issue. In Democratic Unionists lieutenants. Constitu- major spin-off from their party has been the 1954, after the historic Supreme Court tional reform? Bill of Rights? Cross-border promotion of women into public roles by the decision in Brown versus Board of Edu- bodies? Well no, actually. It’s about the other parties. Brid Rodgers of the SDLP has cation, Arnie organized the Consult- trouser suit she’s wearing. Doesn’t she a much higher profile now than 12 months realise that ladies ought to wear skirts? It’s ago, while women in Sinn Fein have always ative Conference on Desegregation. not easy being a woman politician in Ulster. been active but rarely received the recogni- This organization provided much-need- All the main parties have them, but as the tion they deserved. The loyalist Progressive ed support to clergy members who were DUP’s Iris Robinson opined just three years Unionist Party even has its own women’s ex- under fire for speaking out in favor of ago, their role has been that of the ‘‘ordinary ecutive. the decision. He coordinated the cam- housewife’’, more often in the kitchen brew- ‘‘Iris Robinson’s not saying ‘I’m only a paign that resulted in 1957 in the enact- ing the tea than in the conference hall mak- housewife’ now. She regards and presents ment of the first civil rights laws since ing policy. herself as a credible representative of her Not any more. When John Major called an party. And she’s good in the debates. You’ll reconstruction. He was also a leader in election for May 30 last year, a group of find a lot of women in the parties who may persuading Congress to enact the three women got together and decided to enter the not admit it publicly but they are saying pri- great civil rights laws of the 1960’s—the fray. But if the political talks at Stormont vately, thank God the coalition came into Public Accommodations Act of 1964, March 20, 1997 CONGRESSIONAL RECORD — SENATE S2643 the voting Rights Act of 1965, and the which every individual is accorded I appreciate this opportunity to pay Fair Housing Act of 1968. The list goes equal rights, equal opportunities and tribute to Arnold Aronson, and I yield on and on. equal justice and in which every group the floor. Arnie was also a principal founder of is accorded an equal opportunity to Mr. LIEBERMAN. Mr. President, I the Leadership Conference on Civil enter fully into the general life of the rise to make a few remarks concerning Rights. To this day, the Leadership society with mutual acceptance and re- Arnold Aronson. For some Americans, Conference is a powerful force for gard for difference.’’ civil rights is a cause. For others, civil progress on civil rights precisely be- Arnie went on to help organize cler- rights has been a crusade. For Arnold cause of Arnie’s influence and example gy, churches and synagogues. He was a Aronson, civil rights has been his life. in the 1950’s. When others were seeking founding member of the National In his quiet, effective, persistent to divide the Nation with prejudice and Urban Coalition and a charter member way, Arnold Aronson fought the battles bigotry, Arnie was uniting the Nation of Common Cause. In the last 10 years, that too many Americans simply through hope and opportunity. The while well in his 70’s, he assumed the talked about. It made no difference statement of purpose he prepared for presidency of the Leadership Con- whether the victims were Jewish work- the Leadership Conference has as much ference Education Fund and helped in- ers or Protestant pastors, black adults power today as it did when Arnie draft- vigorate its educational and public or white children, Arnold Aronson ed it in 1967. The statement reads: service activities. knew that there was only one Amer- I am proud to call Arnie my friend ican dream and that it applied to all We are committed to an integrated, demo- cratic, plural society in which every individ- and to take this opportunity to wish Americans. ual is accorded equal rights, equal opportuni- him a happy belated birthday. Arnold Aronson has over the last half ties and equal justice and in which every Mr. JEFFORDS. Mr. President, I rise century worked with all the big names group is accorded an equal opportunity to today to pay tribute to Arnold in civil rights, Americans like A. Phil- enter fully in the general life of the society Aronson, a man that has spent his life ip Randolph and Roy Wilkins. But Ar- with mutual acceptance and regard for dif- working for a goal that is dear to my nold Aronson should not be honored for ference. heart; an integrated, democratic, plu- the big names for whom he worked but In 1985, Arnie became president of the ral society in which every individual is for the countless millions who he Leadership Conference Education accorded equal rights, equal opportuni- worked so hard to help. Fund. Under his guidance, the Fund ties and equal justice. Arnold Aronson once said: ‘‘The has focused on working with young Mr. Aronson began his work toward struggle for civil rights cannot be won children to root out prejudice early and achieving his goal in a time when dis- by any one group acting by or for itself instill an appreciation for the diversity crimination was overt and widespread alone but only through a coalition of that is the Nation’s greatest strength. in our country. Beginning in a one-per- groups that share a common commit- As we all know, the battle is not son agency founded in 1941 to combat ment to equal justice and equal oppor- over. Civil rights is still the unfinished employment discrimination against tunity for every American.’’ business of America. But because of people of the Jewish faith, Mr. Aronson For Arnold Aronson, opportunity Arnie Aronson, we have made substan- eventually became the Secretary of the knew no boundaries of age, race, or re- tial progress. Arnie is powerful proof Leadership Council on Civil Rights, an ligion. Opportunity was simply a prin- that one person can make a difference organization dedicated to insuring ciple to be lived and practiced, consist- in the lives of millions of our fellow equal rights to all segments of society. ently, lovingly, and most of all, to- citizens. It is an honor to join in wish- Under his guidance the Leadership gether. From his work with the Bureau on ing Arnie a very happy belated birth- Council was able to plan, coordinate Jewish employment in Chicago in 1941 day. and facilitate the passage of the 1964 Civil Rights Act, the Voting Rights to his presidency of the Leadership Mr. LEAHY. Mr. President, I come to Act of 1965 and the Fair Housing Act of Conference Education Fund for the the Senate floor to wish Arnie Aronson 1968. His ability to recognize the past decade, Arnold Aronson has a happy belated 86th birthday and to strength of building coalitions in sup- turned that principle of opportunity commend him on his many achieve- port of a common legislative goal was for all into his life’s mission. ments. instrumental in the passage of all of Ms. MOSELEY-BRAUN. Mr. Presi- Arnie has been working for civil these bills, and this belief helped as- dent, I rise today to honor one of the rights for over 50 years. He began at a sure that the tough decisions that had founders of our Nation’s civil rights time when help wanted ads openly to be made did not fracture the coali- movement, Arnie Aronson on the occa- specified ‘‘Gentile Only’’ or ‘‘Irish Need tion. sion of his 86th birthday. Not Apply.’’ In the early 1940’s he orga- Since 1985, Mr. Aronson has served as Mr. Aronson began his fight against nized a coalition of religious, ethnic, the President of the Leadership Con- discrimination in 1941. He headed the civil rights, social welfare and labor or- ference Education Fund. Under his su- Bureau on Jewish Employment Prob- ganizations into the Chicago Council pervision, the Fund has increasingly lems in Chicago, Illinois. At that time Against Religious and Racial Discrimi- focused on programs aimed at develop- discrimination against Jews was overt nation. By 1950 he was working with ing positive intergroup attitudes and widespread. Oftentimes help want- Roy Wilkins and many others to orga- among young children. This focus has ed ads stated ‘‘Gentile Only″ need nize support for President Truman’s included a 10-year partnership with the apply. Realizing that employment dis- proposed civil rights effort and engi- Advertising Council of America aimed crimination was a prevalent problem neered the combination of national or- at developing public service announce- that affected people of all races, he or- ganizations that created the Leader- ments dealing with diversity and preju- ganized the Chicago Council Against ship Conference on Civil Rights. dice. As we all know, the children of Religious and Racial Discrimination, a He and the Leadership Conference today will be growing up into the coalition of religious, labor, ethnic, were instrumental in the enactment of teachers, doctors and Presidents of to- civil rights, and social welfare agen- the first extensive Federal civil rights morrow. Discussing this topic with the cies. As Council Secretary, Mr. laws since Reconstruction, the land- children of today, should help us Aronson directed the campaign that mark 1964 Civil Rights Act, the fun- achieve our goal of equal rights, equal led to the first Municipal Fair Employ- damental Voting Rights Act of 1965 and opportunities and equal justice for all. ment Practices Commission in the Na- the pivotal Fair Housing Act of 1968. Mr. President, while not a household tion. They have been critical to our civil name in the battle for civil rights, Ar- He went on to form a statewide coali- rights efforts at every turn ever since. nold Aronson deserves our recognition tion, the Illinois Fair Employment The Statement of Purpose he drafted and high praise for his years of hard Council which initiated the Illinois for the Leadership Conference says a work fighting for civil rights for all. I campaign for fair employment prac- great deal about this extraordinary remain hopeful that in the foreseeable tices legislation. Due to his experience man and his dedication to the rights of future we will be able to achieve our in the area of employment discrimina- all: ‘‘We are committed to an inte- goal of equal rights, equal opportuni- tion he served as a consultant to other grated, democratic, plural society in ties and equal justice for all. states that sought similar legislation. S2644 CONGRESSIONAL RECORD — SENATE March 20, 1997 From 1945 until 1976, Mr. Aronson played in our society, and the indispen- islation that would guarantee every served as the Program Director for the sable role of grass roots efforts and co- child health insurance. Their message National Jewish Community Relations alition building—two pillars of our po- was simple: it is wrong that America, Advisory Council, a coalition of na- litical structure exemplified by Arnie alone among industrialized nations, tional and Jewish agencies. He helped Aronson. Mr. President, this nation doesn’t assure health protection for its develop policies and programs for Jew- should understand that our landmark children. ish agency involvement on issues of civil rights laws were born in our Na- We in Congress should heed their call civil rights, civil liberties, immigra- tion’s communities, not in the minds of and work together to erase this ignoble tion reform, church/state separation, our Presidents. The truth is that the distinction. Soviet Jewish emigration, and support leadership came from the bottom, so to Bolstering their message was the re- for Israel. speak; not the top. The initiative re- lease last week of the Children’s De- In 1949, Mr. Aronson served as Sec- quired for these fundamental shifts in fense Fund’s 1997 edition of the ‘‘State retary of the National Emergency Civil our society were born in the hearts of of the Children Yearbook.’’ The picture Rights Mobilization. This group was thousands of individual citizens, each that report paints of the state of chil- formed to lobby in support of President of whom reached out to their respec- dren’s health care is bleak. Truman’s proposed civil rights pro- tive communities, and were strung to- Every 48 seconds a child is born with- gram. The Mobilization consisted of gether delicately and persistently by a out insurance. One in every 7 children approximately 5,000 delegates from 32 few motivated and foresighted leaders is uninsured for the entire year. Nearly states representing 58 national organi- like Arnie Aronson. 1 in every 3 is uninsured for at least zations. At the time, it was described The reality is that Arnie has no one one month during any year. Nine out of as the ‘‘greatest mass lobby in point of to blame but himself for his lack of no- every 10 uninsured children is from a numbers and geographical distribu- toriety. Arnie, as his friends and col- family where at least one parent tion’’ that ever came to Washington. leagues all know, shuns publicity with works. In announcing the results of this re- In 1950, Mr. Aronson helped found the the same energy that some employ in port, Marian Wright Edelman, CDF’s Leadership Conference on Civil Rights, its pursuit. But had Arnie been a self- President, succinctly sums up the situ- one of the nation’s leading civil rights promoter, then he never could have ation. ‘‘Lack of health insurance is a organizations. He served as Secretary satisfied the complex interpersonal problem we can solve right now and of the Conference from 1950 to 1980. In agendas necessary to organize so many make a huge difference in many child addition to being responsible for the disparate views, so many different lives. The issue is whether we care overall administration of the Con- goals, so many challenging attitudes. enough to build the political will to do ference, he helped plan and coordinate Arnie weaved together practically it.’’ the campaign that resulted in the en- every major civil rights organization in The effects of children not having in- actment of the first civil rights laws the country into the grandparent of all surance are well known to us all: Chil- since Reconstruction, the 1964 Civil coalitions, and perhaps still one of the dren without health coverage get less Rights Act, the Voting Rights Act of most successful coalitions this cen- cost-effective preventive care, less 1965, and the Fair Housing Act of 1968. tury, the Leadership Conference on basic care and more costly acute care During Mr. Aronson’s tenure with the Civil Rights. Some of the organizations when their illness is too advanced to Conference, he helped contribute to that eventually found a voice under his ignore. Further, uninsured children are some of the Conference’s most produc- umbrella were in their infancy at the more likely to suffer preventable dis- tive years. time and now are household names; ease and have trouble learning. I could go on, Mr. President, for others had such distinct agendas that How can we reverse these trends? there is no shortage of achievements, it is nothing short of miraculous that Proposals to address this problem are but I think that these few examples are they were willing to lend their names well known to all of us and simply sufficient to illustrate what an ex- to any unified cause. But Arnie is a stated through the following prin- traordinary contribution Arnie master consensus builder, and he ac- ciples. First, make health coverage Aronson has made to the civil rights of complished more than most people available to every uninsured child our Nation. It is no exaggeration to say could imagine, by advancing the inter- through age 18 and every uninsured that millions of men and women of all ests of others rather than himself, by pregnant woman. Second, make cov- races—who may never know Arnie the practically unknown arts of self- erage genuinely affordable to all fami- Aronson—have benefited directly from sacrifice and behind-the-scenes hard lies. Third, give children access to cov- his dedication and personal sacrifice on work. erage that provides for the full range of behalf of civil and human rights. He By doing what he does, Arnie sets an health care that children need. Finally, has made a positive and constructive example for us all. He has shown us build on—do not replace—the current difference for our Nation. I am pleased what this Nation is capable of accom- employer-based system, Medicaid and to wish him a belated happy 86th birth- plishing, if it has the right goal in public-private initiatives in the States. day. mind, and the will to reach that goal. Advocates of guaranteeing all chil- Mr. WELLSTONE. Mr. President, it He is an inspiration, because of his tol- dren health insurance are telling us to is time for attention to be given to Ar- erance, his eagerness to hear out views act bipartisanly. And there is ample nold Aronson. Few students in this that others might find offensive, his precedent for bipartisan action on be- country, when studying Civics in their patience to find new, non-threatening half of children’s health. Almost every high schools and elementary schools, ways of expressing strong opinions, and health reform bill, Democratic and Re- learn of the name Aronson. When they his ability to harness and channel tre- publican alike, introduced in the 103d read about the 1964 Civil Rights Act, mendous energy in productive direc- Congress provided assistance to low-in- the Voting Rights Act of 1965, the Fair tions. There are millions of Americans come Americans to purchase private Housing Act of 1968, the Civil Rights enjoying lives and jobs and suffering health coverage—most had special as- Restoration Act of 1988, and the Ameri- far less discrimination than their par- sistance for the cost of children’s cov- cans with Disability Act—each in their ents endured, thanks to Arnie. erage. own right a high water mark for our Mr. President, Arnie Aronson should In other words, we have agreed in the Nation—they hear names like King, be anything but a secret in this nation. past that children who fall through the Kennedy, and Johnson—but not He is a role model for us all. cracks deserve proper health coverage. Aronson. f Children don’t vote; they do not sit This is a lamentable omission for two on corporate boards; and they cannot reasons. First of all, none of these PUBLIC CALL FOR CHILDREN’S argue their case on the Senate floor. landmark pieces of legislation would HEALTH COVERAGE But we have a vote. We can take it ever have happened if it hadn’t been for Mr. DASCHLE. Mr. President, last upon ourselves to improve the lives of him. Second, school children across the week, over one-half dozen groups rep- our children and their families by mak- Nation should be taught about the resenting millions of Americans spread ing our nation’s children our top prior- vital role non-elected individuals have out across Capitol Hill to lobby for leg- ity. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2645 The public has taken note. Now is EC–1474. A communication from the Acting EC–1488. A communication from the Ad- the time to answer their call. Our chil- Commissioner of Social Security, transmit- ministrator of the Energy Information Ad- dren deserve no less. ting, pursuant to law, a report relative to ministration, Department of Energy, trans- the Supplemental Security Income program; mitting, pursuant to law, the report entitled f to the Committee on Finance. ‘‘Performance Profiles of Major Energy Pro- EC–1475. A communication from the Acting MESSAGES FROM THE HOUSE ducers 1995’’; to the Committee on Energy Deputy Assistant Administrator, Office of and Natural Resources. At 11:54 a.m., a message from the Diversion Control, Drug Enforcement Ad- EC–1489. A communication from the Sec- House of Representatives, delivered by ministration, Department of Justice, trans- retary of Transportation, transmitting, a Ms. Goetz, one of its reading clerks, an- mitting, pursuant to law, the rule entitled draft of proposed legislation entitled ‘‘The ‘‘Consolidation, Eliminiation, and Clarifica- National Economic Crossroads Transpor- nounced that the House has passed the tion of Various Regulations,’’ (RIN1117– following bill, in which it requests the tation Efficiency Act of 1997’’; to the Com- AA33) received on March 18, 1997; to the Com- mittee on Finance. concurrence of the Senate: mittee on the Judiciary. f H.R. 1. An act to amend the Fair Labor EC–1476. A communication from the Direc- Standards Act of 1938 to provide compen- tor of the Office of Communications of the REPORTS OF COMMITTEES satory time for employees in the private sec- Department of Agriculture, transmitting, tor. pursuant to law, the 1996 annual report of The following reports of committees the Department under the Freedom of Infor- were submitted: At 7:05 p.m., a message from the mation Act; to the Committee on the Judici- By Mr. HELMS, from the Committee on House of Representatives, delivered by ary. Foreign Affairs: EC–1477. A communication from the Direc- Mr. Hays, one of its reading clerks, an- Special Report entitled ‘‘Legislative Ac- tor (Government Relations) of the Girl tivities Report of the Committee on Foreign nounced that the House has passed the Scouts, transmitting, pursuant to law, the following bill in which it requests the Relations of the United States Senate Dur- report of work and activities for fiscal year ing the One Hundred Fourth Congress’’ 1996; to the Committee on the Judiciary. concurrence of the Senate: (Rept. No. 105–8). EC–1478. A communication from the Ad- H.R. 1122. An act to amend title 18, United By Mr. WARNER, from the Committee on States Code, to ban partial-birth abortions. ministrator of the Panama Canal Commis- sion, transmitting, a draft of proposed legis- Rules and Administration: f lation to authorize expenditures for fiscal Report to accompany the resolution (S. year 1998 for the operation and maintenance Res. 54) authorizing biennial expenditures by MEASURES REFERRED of the Panama Canal and for other purposes; committee of the Senate (Rept. No. 105–9). The following bill was read the first to the Committee on the Armed Services. By Mr. MURKOWSKI, from the Committee EC–1479. A communication from the Presi- on Energy and Natural Resources: and second times by unanimous con- Report to accompany the bill (S. 104) to sent and referred as indicated: dent and Chairman of the Export-Import Bank, transmitting, a draft of proposed leg- amend the Nuclear Waste Public Act of 1982 H.R. 1. An act to amend the Fair Labor islation to amend the Export-Import Bank (Rept. No. 105–10). Standards Act of 1938 to provide compen- Act; to the Committee on Banking, Housing, By Mr. HATCH, from the Committee on satory time for employees in the private sec- and Urban Affairs. the Judiciary, without amendment: tor; to the Committee on Labor and Human EC–1480. A communication from the Direc- S. 270: A bill to grant the consent of Con- Resources. tor of the Peace Corps, transmitting, pursu- gress to the Texas Low-Level Radioactive f ant to law, the report on the internal con- Waste Disposal Compact. trols and financial systems in effect during f MEASURE READ THE FIRST TIME fiscal year 1996; to the Committee on Gov- EXECUTIVE REPORTS OF The following bill was read the first ernmental Affairs. EC–1481. A communication from the Execu- COMMITTEES time: tive Director of the United States Arctic Re- H.R. 1122. An act to amend title 18, United search Commission, transmitting, pursuant The following executive reports of States Code, to ban partial-birth abortions. to law, the report under the Inspector Gen- committees were submitted: f eral and Federal Managers’ Financial Integ- By Mr. CHAFEE, from the Committee on rity Acts for fiscal year 1996; to the Commit- Environment and Public Works: EXECUTIVE AND OTHER tee on Governmental Affairs. Judith M. Espinosa, of New Mexico, to be a COMMUNICATIONS EC–1482. A communication from the Direc- Member of the Board of Trustees of the Mor- tor of the Office of the Institute of Museum ris K. Udall Scholarship and Excellence in The following communications were Services, transmitting, pursuant to law, the National Environmental Policy Foundation laid before the Senate, together with report on internal control and financial sys- for a term of four years. accompanying papers, reports, and doc- tems for fiscal year 1996; to the Committee D. Michael Rappoport, of Arizona, to be a uments, which were referred as indi- on Governmental Affairs. Member of the Board of Trustees of the Mor- cated: EC–1483. A communication from the Chair- ris K. Udall Scholarship and Excellence in man of the U.S. Merit Systems Protection EC–1470. A communication from the Assist- National Environmental Policy Foundation Board, transmitting, pursuant to law, the for a term expiring October 6, 2002. ant Secretary of Defense (Force Management annual report for fiscal year 1996; to the Policy), transmitting, pursuant to law, the Committee on Governmental Affairs. (The above nominations were re- report relative to funding of morale, welfare, EC–1484. A communication from the Public ported with the recommendation that and recreation activities; to the Committee Health Service, Food and Drug Administra- they be confirmed, subject to the nomi- on Armed Services. tion, Department of Health and Human Serv- nees’ commitment to respond to re- EC–1471. A communication from the Na- ices, transmitting, pursuant to law, a rule quests to appear and testify before any tional Marine Fisheries Service, National entitled ‘‘Elimination of Establishment Li- Oceanic and Atmospheric Administration, duly constituted committee of the Sen- cense Application’’ received on March 19, ate.) Department of Commerce, transmitting, pur- 1997; to the Committee on Labor and Human suant to law, a rule entitled ‘‘Fisheries of Resources. f the Northeastern United States’’ (RIN0648– EC–1485. A communication from the Acting XX75) received on March 19, 1997; to the Com- Secretary of Labor, transmitting, pursuant INTRODUCTION OF BILLS AND mittee on Commerce, Science, and Transpor- to law, the evaluation report on the Youth JOINT RESOLUTIONS tation. Fair Chance program; to the Committee on The following bills and joint resolu- EC–1472. A communication from the In- Labor and Human Resources. tions were introduced, read the first spector General of the Department of Health EC–1486. A communication from the Assist- and second time by unanimous con- and Human Services, transmitting, pursuant ant Secretary of the Interior for Land and to law, the report of Superfund financial ac- Minerals Management, transmitting, pursu- sent, and referred as indicated: tivities at the National Institute of Environ- ant to law, a rule entitled ‘‘Oil Spill Re- By Ms. COLLINS (for herself, Ms. mental Health Sciences for fiscal year 1995; sponse Requirements’’ (RIN1010–AB81) re- SNOWE, Mr. HATCH, and Mr. COCH- to the Committee on Environment and Pub- ceived on March 18, 1997; to the Committee RAN): lic Works. on Energy and Natural Resources. S. 482. A bill to amend the Internal Reve- EC–1473. A communication from the Chief EC–1487. A communication from the Chair nue Code of 1986 to partially exclude from of the Regulations Unit, Internal Revenue of the Federal Energy Regulatory Commis- the gross estate of a decedent the value of a Service, Department of the Treasury, trans- sion, transmitting, pursuant to law, a rule family-owned business, and for other pur- mitting, pursuant to law, the report of three entitled ‘‘Standards For Business Practices’’ poses; to the Committee on Finance. rules received on March 18, 1997; to the Com- received on March 19, 1997; to the Committee By Mr. ROBB (for himself and Ms. MI- mittee on Finance. on Energy and Natural Resources. KULSKI): S2646 CONGRESSIONAL RECORD — SENATE March 20, 1997 S. 483. A bill to fully fund the construction S. 495. A bill to provide criminal and civil By Mr. HATCH (for himself, Mr. of the Woodrow Wilson Memorial Bridge; to penalties for the unlawful acquisition, trans- LEAHY, Mr. D’AMATO, Mr. THOMPSON, the Committee on Environment and Public fer, or use of any chemical weapon or bio- Mr. ABRAHAM, and Mrs. FEINSTEIN): Works. logical weapon, and to reduce the threat of S. 505. A bill to amend the provisions of By Mr. DEWINE (for himself, Mr. KEN- acts of terrorism or armed aggression involv- title 17, United States Code, with respect to NEDY, and Mr. BOND): ing the use of any such weapon against the the duration of copyright, and for other pur- S. 484. A bill to amend the Public Health United States, its citizens, or Armed Forces, poses; to the Committee on the Judiciary. Service Act to provide for the establishment or those of any allied country, and for other By Mr. HATCH: of a pediatric research initiative; to the purposes; to the Committee on the Judici- S. 506. A bill to clarify certain copyright Committee on Labor and Human Resources. ary. provisions, and for other purposes; to the By Mr. MCCONNELL (for himself, Mr. By Mr. CHAFEE (for himself, Mr. GRA- Committee on the Judiciary. CRAIG, Mr. KEMPTHORNE, Mr. GRASS- HAM, and Mr. JEFFORDS): S. 507. A bill to establish the United States LEY, Mr. COCHRAN, Mr. ROBERTS, and S. 496. A bill to amend the Internal Reve- Patent and Trademark Organization as a Mr. BOND): nue Code of 1986 to provide a credit against Government corporation, to amend the pro- S. 485. A bill to amend the Competitive, income tax to individuals who rehabilitate visions of title 35, United States Code, relat- Special, and Facilities Research Grant Act historic homes or who are the first pur- ing to procedures for patent applications, to provide increased emphasis on competi- chasers of rehabilitated historic homes for commercial use of patents, reexamination tive grants to promote agricultural research use as a principal residence; to the Commit- reform, and for other purposes; to the Com- projects regarding precision agriculture and tee on Finance. mittee on the Judiciary. to provide for the dissemination of the re- By Mr. COVERDELL (for himself and By Mrs. FEINSTEIN: sults of the research projects, and for other Mr. FAIRCLOTH): S. 508. A bill to provide for the relief of Mai purposes; to the Committee on Agriculture, S. 497. A bill to amend the National Labor Hoa ‘‘Jasmin’’ Salehi; to the Committee on Nutrition, and Forestry. Relations Act and the Railway Labor Act to the Judiciary. By Mr. BROWNBACK (for himself, Mr. repeal the provisions of the Acts that require By Mr. BURNS: GRASSLEY, Mr. HAGEL, and Mr. JOHN- employees to pay union dues or fees as a con- S. 509. A bill to provide for the return of SON): dition of employment; to the Committee on certain program and activity funds rejected S. 486. A bill to amend the Omnibus Trade Labor and Human Resources. by States to the Treasury to reduce the Fed- and Competitiveness Act of 1988 to clarify By Mr. CHAFEE (for himself and Mr. eral deficit, and for other purposes; to the the limitation for accession to the GATT and MOYNIHAN): Committee on the Budget and the Commit- the WTO of foreign countries that have state S. 498. A bill to amend the Internal Reve- tee on Governmental Affairs, jointly, pursu- trading enterprises; to the Committee on Fi- nue Code of 1986 to allow an employee to ant to the order of August 4, 1977, as modi- nance. elect to receive taxable cash compensation fied by the order of April 11, 1986, with in- By Ms. MIKULSKI (for herself, Ms. in lieu of nontaxable parking benefits, and structions that if one Committee reports, MOSELEY-BRAUN, Mr. INOUYE, and for other purposes; to the Committee on Fi- the other Committee has thirty days to re- Mrs. BOXER): nance. port or be discharged. S. 487. A bill to amend the Public Health By Mr. CHAFEE (for himself, Mr. BAU- By Mr. MOYNIHAN: Service Act with respect to employment op- CUS, and Mr. GREGG): S. 510. A bill to authorize the Architect of portunities in the Departement of Health S. 499. A bill to amend the Internal Reve- the Capitol to develop and implement a plan and Human Services for women who are sci- nue Code of 1986 to provide an election to ex- to improve the Capitol grounds through the entists, and for other purposes; to the Com- clude from the gross estate of a decedent the elimination and modification of space allo- mittee on Labor and Human Resources. value of certain land subject to a qualified cated for parking; to the Committee on By Mr. KYL: conservation easement, and to make tech- Rules and Administration. S. 488. A bill to control crime, and for nical changes to alternative valuation rules; By Mr. CHAFEE (for himself, Mr. other purposes; to the Committee on the Ju- to the Committee on Finance. ROCKEFELLER, Mr. JEFFORDS, Mr. diciary. By Mrs. BOXER (for herself and Mrs. DEWINE, Mr. DODD, Ms. MOSELEY- By Mr. KYL (for himself and Mr. REID): BRAUN, Mr. KERRY, Mr. KERREY, and S. 489. A bill to improve the criminal law FEINSTEIN): Mr. KENNEDY): relating to fraud against consumers; to the S. 500. A bill to authorize emergency ap- S. 511. A bill to require that the health and Committee on the Judiciary. propriations for cleanup and repair of dam- safety of a child be considered in any foster By Mr. AKAKA: ages to facilities of Yosemite National Park care or adoption placement, to eliminate S. 490. A bill to amend the Internal Reve- and other California national parks caused barriers to the termination of parental nue Code of 1986 to adjust for inflation the by heavy rains and flooding in Decemeber rights in appropriate cases, to promote the dollar limitations on the dependent care 1996 and January 1997, and for other pur- adoption of children with special needs, and credit; to the Committee on Finance. poses; to the Committee on Energy and Nat- for other purposes; to the Committee on Fi- By Mr. FORD: ural Resources. S. 491. A bill to amend the National Wild- By Mr. MACK (for himself, Mr. SHELBY, nance. life Refuge System Administration Act of Mr. COCHRAN, Mr. D’AMATO, and Mr. By Mr. KENNEDY (for himself, Mr. ODD, Mr. ROBB, Ms. MOSELEY- 1966 to prohibit the United States Fish and HAGEL): D BRAUN, Mr. LAUTENBERG, Mr. KERRY, Wildlife Service from acquiring land to es- S. 501. A bill to amend the Internal Reve- Ms. SNOWE, Mrs. MURRAY, Mr. tablish a refuge of the National Wildlife Ref- nue Code of 1986 to provide all taxpayers FEINGOLD, Mr. HARKIN, Mr. CHAFEE, uge System unless at least 50 percent of the with a 50 percent deduction for capital gains, Mr. JEFFORDS, Mr. AKAKA, Mr. BINGA- owners of the land in the proposed refuge to increase the exclusion for gain on quali- MAN, and Mrs. FEINSTEIN): favor the acquisition; to the Committee on fied small business stock, to index the basis S.J. Res. 24. A joint resolution proposing Environment and Public Works. of certain capital assets, to allow the capital an amendment to the Constitution of the By Mr. SARBANES: loss deduction for losses on the sale or ex- S. 492. A bill to amend certain provisions of change of an individual’s principal residence, United States relative to equal rights for title 5, United States Code, in order to en- and for other purposes; to the Committee on women and men; to the Committee on the sure equality between Federal firefighters Finance. Judiciary. and other employees in the civil service and By Mr. GRASSLEY: f other public sector firefighters, and for other S. 502. A bill to amend title XIX of the So- purposes; to the Committee on Govern- cial Security Act to provide post-eligibility SUBMISSION OF CONCURRENT AND mental Affairs. treatment of certain payments received SENATE RESOLUTIONS under a Department of Veterans Affairs pen- By Mr. KYL (for himself and Mr. GOR- The following concurrent resolutions TON): sion or compensation program; to the Com- S. 493. A bill to amend section 1029 of title mittee on Finance. and Senate resolutions were read, and 18, United States Code, with respect to cel- By Mr. NICKLES: referred (or acted upon), as indicated: lular telephone cloning paraphernalia; to the S. 503. A bill to prevent the transmission of By Mr. MACK (for himself and Mr. Committee on the Judiciary. the human immunodeficiency virus (com- GRAHAM): By Mr. KYL (for himself, Mr. ABRAHAM, monly known as HIV), and for other pur- S. Res. 66. A resolution commending the and Mr. REID): poses; to the Committee on Labor and University of Florida football team for win- S. 494. A bill to combat the overutilization Human Resources. ning the 1996 Division I Collegiate football of prison health care services and control ris- By Mrs. FEINSTEIN (for herself, Mrs. national championship; considered and ing prisoner health care costs; to the Com- BOXER, and Ms. SNOWE): agreed to. mittee on the Judiciary. S. 504. A bill to amend title 18, United By Mr. CRAIG (for himself and Mr. By Mr. KYL (for himself, Mr. LOTT, Mr. States Code, to prohibit the sale of personal REID): NICKLES, Mr. MACK, Mr. COVERDELL, information about children without their S. Res. 67. A resolution to authorize the Mr. HELMS, Mr. SHELBY, and Mrs. parent’s consent, and for other purposes; to printing of the History Manuscript of the Re- HUTCHISON): the Committee on the Judiciary. publican and Democratic Policy Committees March 20, 1997 CONGRESSIONAL RECORD — SENATE S2647 in commemoration of their 50th anniversary; dren has already been subject to in- vey found that 60 percent of business considered and agreed to. come taxation, and the combined effect owners reported that they would add to By Mr. SPECTER (for himself, Mr. of income and estate taxes can be a tax their work forces were it not for the es- AKAKA, and Mr. SMITH): bite as high as 73 percent. tate tax. Two studies mentioned in a S. Res. 68. A resolution designating April 9, It should come as no surprise that 1997, and April 9, 1998, as ‘‘National Former Wall Street Journal editorial last Prisoner of War Recognition Day’’; consid- when a family business or farm is left month quantified the job losses caused ered and agreed to. to the sons and daughters of the owner, by this levy—one put it at 150,000 and By Mr. LOTT: the estate often lacks the cash to pay the other at 228,000. In a word, the S. Con. Res. 14. A concurrent resolution the tax. A 1995 Gallup survey found harm is widespread. providing for a conditional adjournment or that one-third of the owners of family My bill would give relief to small recess of the Senate and the House of Rep- businesses expect that some or all of businesses. It would raise the amount resentatives; considered and agreed to. the company will have to be sold to effectively excluded from the tax from By Mr. TORRICELLI: satisfy estate tax liabilities. That this S. Con. Res. 15. A concurrent resolution ex- $600,000 to $1,000,000, which probably actually comes about is reflected in does little more than compensate for pressing the sense of Congress that the Unit- the experience of the inheritors of such ed States support the accession of Taiwan to inflation during the past decade. While the World Trade Organization; to the Com- businesses, 37 percent of whom re- $600,000 understandably seems like a mittee on Finance. ported that they had to shrink or re- considerable sum, the fact is that By Mr. DOMENICI: structure the enterprises solely to many small businesses require invest- S. Con. Res. 16. A concurrent resolution meet estate tax obligations. ment in complex or heavy equipment Mr. President, behind these statistics setting forth the congressional budget for which easily exceeds that threshold. the United States Government for fiscal are the stories of hard-working Ameri- Referring to a machine essential to his years 1998, 1999, 2000, 2001, and 2002; to the cans whose life’s work is dismantled by business, the owner of a Maine sawmill Committee on the Budget. a confiscatory tax. One of those stories S. Con. Res. 17. A concurrent resolution was recently told to me by Judy Vallee recently asked me, ‘‘What are my sons setting forth the congressional budget for of Cumberland, ME. In 1933, her father supposed to do? Sell the debarker to the United States Government for fiscal opened a restaurant in Portland and pay the tax?’’ There is no justification years 1998, 1999, 2000, 2001, and 2002; to the for this legal Catch 22, under which the Committee on the Budget. worked hard over time to expand the business into a chain of 25 restaurants second- or third-generation business By Mr. LAUTENBERG (for himself and owner can only pay the tax by selling Mr. D’AMATO): along the east coast. When the father S. Con. Res. 18. A concurrent resolution died in 1977, the family was left with a assets essential to running the busi- recognizing March 25, 1997, as the anniver- staggering estate tax bill of about $1 ness. sary of the Proclamation of Belarusan inde- million. Lacking the cash to pay the My legislation would also lower the pendence, and calling on the Government of tax, they had to take on partners out- effective tax rate for the next $1.5 mil- Belarus to respect fundamental freedoms and side the family, totally restructure the lion from 55 to 27.5 percent and would human rights; to the Committee on Foreign increase from 10 to 20 years the time Relations. company, and arrange to pay the tax in installments. Unfortunately, even during which family businesses could f these measures were not enough, and pay the tax on an installment basis. These measures are not designed to STATEMENTS ON INTRODUCED they ultimately had to liquidate the provide relief to large enterprises. BILLS AND JOINT RESOLUTIONS business at fire-sale prices. Rather, the beneficiaries, Mr. Presi- By Ms. COLLINS (for herself, Ms. Ironically, Judy Vallee now finds herself in the very same situation, but dent, will be enterprising Americans, SNOWE, Mr. HATCH, and Mr. many of whom risk their life savings COCHRAN): this time as a business owner and not a potential heir. When the original busi- and work at their factories, mills, of- S. 482. A bill to amend the Internal fices, and farms 7 days a week to build Revenue Code of 1986 to partially ex- ness was liquidated, she managed to purchase one of the restaurants in her a small business, with the reasonable clude from the gross estate of a dece- expectation that their Government will dent the value of a family-owned busi- own name, which she has now devel- oped into a prosperous enterprise. let them pass it along to their children. ness, and for other purposes; to the Prior to becoming a Member of the Committee on Finance. Eager to leave the restaurant to her son and desperate to ensure that his- Senate, I ran Husson College’s Family THE FAMILY BUSINESS AND FAMILY FARM tory does not repeat itself, she has Business Center in Bangor, ME. I would PROTECTION ACT OF 1997 spent a small fortune on life insurance share with you two lessons I learned Ms. COLLINS. Mr. President, today I to enable her son to enjoy the fruits of from that experience. First, those fam- am proud to be introducing the Family her own hard work. ily business owners who understand the Business and Family Farm Preserva- Mr. President, jobs are the primary estate tax cannot comprehend why the tion Act of 1997, which will provide ur- worry of Maine people, and often over- Federal Government imposes a tax gently needed estate tax relief to our looked in this debate is the negative ef- that undermines the very type of activ- Nation’s family-owned businesses and fect of the estate tax on employment. ity it says it wishes to encourage. Sec- farms. It is no accident that this is my Let me give you an example. A potato ond, many small business owners do first bill as a Member of the U.S. Sen- bag manufacturer in northern Maine, not take the extreme measures re- ate, for I fervently believe that small, the area I’m originally from, has told quired to prepare for the estate tax, family enterprises hold the key to our me that he would be able to expand his often with devastating and totally un- economic growth and prosperity and operation and hire more people were it expected consequences for their fami- that Government policies must pro- not for the money he has to spend on lies. mote and not undermine their contin- estate planning and life insurance. In Why do I call these measures ex- ued existence. another instance, the owner of a Maine treme? In the Gallup survey, the re- Simply put, the extremely high es- trucking company made the painful de- spondents estimated spending an aver- tate tax rates make it very difficult for cision to sell the business to a large, age of more than $33,000 over 61⁄2 years many families to pass their businesses out-of-state corporation rather than on lawyers, accountants, and financial on to the next generation—the very op- leaving it to his children and forcing experts to help plan and prepare for the posite of what Government policy them to assume a large debt to pay the estate tax. The cost is not only mone- should be. After allowing for what is estate tax. Not only was he compelled tary, for the average number of hours essentially a $600,000 exemption, an to abandon what he and his father be- spent in the planning process was 167. amount which has not been increased fore him had spent their lives building, As currently designed, the estate tax in a decade, the marginal rates that ef- but making matters worse, the new represents bad public policy. In my fectively apply for estate tax purposes corporate owner moved the administra- State, it is the 30,000 small businesses, range from 37 to 55 percent, higher tive operations out of State, costing many of them family owned, which than any other generally applicable Maine 50 good jobs. provide most of the new employment Federal tax rates. Adding insult to in- Maine’s experience is common opportunities, and it is these busi- jury, some of what we leave to our chil- throughout our Nation. The Gallup sur- nesses which will account for two- S2648 CONGRESSIONAL RECORD — SENATE March 20, 1997 thirds of the new jobs in the future. By Full funding for the bridge is also im- (7) the Bridge is the only part of the Inter- discouraging the development and ex- portant for the environment—this met- state System owned by the Federal Govern- pansion of family enterprises, the es- ropolitan area has been classified by ment; tate tax stands as the enemy of job cre- the EPA as a nonattainment area be- (8)(A) the Bridge was constructed by the Federal Government; ation and economic growth. cause of its poor air quality. Traffic (B) prior to the date of enactment of this Mr. President, it is time for our ac- congestion contributes significantly to Act, the Federal Government has contrib- tions to match our rhetoric. If we be- this pollution. For that reason, I’ve uted 100 percent of the cost of building and lieve in promoting family businesses, supported mass transit initiatives like rehabilitating the Bridge; and as we say we do, and if we believe in commuter rail service and the Metro (C) the Federal Government has a continu- promoting family farms, as we say we system, higher fuel economy standards, ing responsibility to fund future costs associ- do, we must change a tax policy which alternative-fuel vehicles, and transpor- ated with the upgrading of the Interstate takes the family out of the family busi- tation alternatives such as tele- Route 95 crossing, including the rehabilita- tion and reconstruction of the Bridge; and ness and family farm. Mine is not a call commuting. These initiatives, while (9) the Federal Government should provide for Government assistance or for spe- important, are only part of the solu- full funding for construction of the replace- cial treatment. Mine is a call to reform tion. We also need to keep traffic mov- ment Bridge. an unfair, destructive, and confiscatory ing to reduce the amount of time vehi- SEC. 3. FULL FUNDING OF BRIDGE. tax. cles stand idling and adding to the (a) INTERCHANGES.—Section 404(5)(F) of the smog problem in this region. Full fund- Woodrow Wilson Memorial Bridge Authority By Mr. ROBB (for himself and ing for the Woodrow Wilson Bridge re- Act of 1995 (Public Law 104–59; 109 Stat. 629) Ms. MIKULSKI): placement will not solve the conges- is amended by inserting ‘‘interchange,’’ after S. 483. A bill to fully fund the con- ‘‘roadway,’’. tion problems in northern Virginia, but (b) FUNDING.—Section 104(i) of title 23, struction of the Woodrow Wilson Me- it will help. morial Bridge; to the Committee on United States Code, is amended— Finally, my proposal is also reason- (1) in paragraph (1), by striking ‘‘From’’ Environment and Public Works. able. The Woodrow Wilson Bridge is and all that follows through ‘‘final engineer- THE WOODROW WILSON MEMORIAL BRIDGE FULL part of the interstate highway system. ing’’ and inserting ‘‘The Secretary shall obli- FUNDING ACT Comparable interstate projects, includ- gate sums made available under paragraph ∑ Mr. ROBB. Mr. President, I introduce ing the nearby Baltimore’s Fort (3) for final engineering and construction’’; legislation that responds to an urgent McHenry Tunnel have received 90 per- and (2) by adding at the end the following: situation facing the Capital region— cent Federal funding, despite the fact the crumbling Woodrow Wilson Bridge. ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— the projects are owned by the individ- There are authorized to be appropriated out I am pleased to be joined in this effort ual States. The bridge, on the other of the Highway Trust Fund (other than the by my distinguished colleague from the hand, is wholly owned by the Federal Mass Transit Account) for fiscal years 1998 other side of the Potomac, Senator MI- Government. Moreover, as a recent through 2004 such sums as are necessary to KULSKI. The bridge is already a major opinion piece in Car & Travel put it, carry out this subsection.’’.∑ bottleneck for travelers on Interstate the bridge is ‘‘a major gateway to our 95, and in 7 years the current bridge Nation’s Capital.’’ It’s time for the By Mr. DEWINE (for himself, Mr. will probably need to be closed as un- Federal Government to pay its share. KENNEDY, and Mr. BOND): S. 484. A bill to amend the Public safe for travel. Mr. President, I ask unanimous con- Health Service Act to provide for the It is with this knowledge that Con- sent that the text of my legislation be establishment of a pediatric research gress created the Woodrow Wilson Me- printed in the RECORD. initiative; to the Committee on Labor morial Bridge Authority in 1995 to has- There being no objection, the bill was and Human Resources. ten the selection, design, and replace- ordered to be printed in the RECORD, as ment of the old bridge. The replace- follows: THE PEDIATRICS RESEARCH INITIATIVE ACT OF 1997 ment bridge has now been selected, and S. 483 construction will begin in late 1998 or Mr. DEWINE. Mr. President, I intro- Be it enacted by the Senate and House of Rep- 1999. duce legislation that will increase our resentatives of the United States of America in Nation’s investment in pediatric re- Last Thursday, the Washington Post Congress assembled, search. joined the chorus calling for action to SECTION 1. SHORT TITLE. fund the bridge, and I ask unanimous This Act may be cited as the ‘‘Woodrow THE PROBLEM consent that a copy of the Post edi- Wilson Memorial Bridge Full Funding Act’’. Children under the age of 21 rep- torial, ‘‘Fixing a Dangerous Bridge,’’ be SEC. 2. FINDINGS. resent 30 percent of the population— included in the RECORD. The Post Congress finds that— and yet, the NIH devotes only some- points out that the Clinton administra- (1) traffic congestion imposes serious eco- where between 5 and 14 percent of its tion’s $400 million funding proposal is nomic burdens on the metropolitan Washing- budget to their needs. wholly inadequate, that it wouldn’t ton, D.C., area, costing each commuter an Just as there has been a recognition buy three lanes at yesteryear prices. I estimated $1,000 per year; in recent years that women and mi- wholeheartedly agree. (2) the volume of traffic in the metropoli- norities have been neglected in re- So today my distinguished colleague, tan Washington, D.C., area is expected to in- search efforts nationwide, there’s a crease by more than 70 percent between 1990 growing consensus that children de- Senator MIKULSKI and I are introducing and 2020; the Woodrow Wilson Bridge Full Fund- (3) the deterioration of the Woodrow Wil- serve more attention than they are ing Act to ensure the bridge is com- son Memorial Bridge and the growing popu- getting. pleted quickly and funded without lation of the metropolitan Washington, D.C., THE SOLUTION tolls. Our legislation authorizes full area contribute significantly to traffic con- The bill I am introducing today Federal funding for building the new gestion; would help us begin to remedy this bridge. (4) the Bridge serves as a vital link in the lack of research into children’s health. This proposal is forward-looking. Interstate System and in the Northeast cor- This legislation would create a Pedi- ridor; Today, area roads are already terribly (5) identifying alternative methods for atric Research Initiative within the Of- congested. Only Los Angeles has more maintaining this vital link of the Interstate fice of the Director of NIH to encour- traffic. And over the next few decades, System is critical to addressing the traffic age, coordinate, support, develop, and traffic congestion is expected to in- congestion of the area; recognize pediatric research. The bill crease by 70 percent. The Woodrow Wil- (6) the Bridge is— would authorize $75 million over the son Bridge is a bottleneck today be- (A) the only drawbridge in the metropoli- next 3 years for this initiative. Last cause it is old and narrow. Ten years tan Washington, D.C., area on the Interstate year, we received a $5 million downpay- from now we’ll still have a bottleneck System; ment in the appropriations process, (B) the only segment of the Capital Belt- if, because of inadequate Federal fund- way with only 6 lanes; and and we look forward to working with ing, we’re forced to put toll booths on (C) the only segment of the Capital Belt- the appropriators to continue on the the bridge. We need full funding now to way with a remaining expected life of less path toward the necessary level of keep tomorrow’s traffic moving. than 10 years; funding. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2649 This is a crucial investment in our new pediatric research initiative last education competitive grants and pro- country’s future—and one that will year. grams that emphasize precision agri- produce a great return. If we focus on Senator DEWINE’s legislation builds culture technologies and management making our children healthy, we’ll set upon that down payment, and I look practices. the stage for a healthy citizenry 60 to forward to working with other Mem- This legislation represents a com- 70 years into the future. bers of the Senate in ensuring passage promise between various interests. The This initiative will also promote of this effort. bill is supported by The Fertilizer In- greater coordination in children’s Although health care spending for stitute, National Center for Resources health research. Today, there are some children is only a fraction of total Innovations, Experiment Station and 20 Institutes and Centers and Offices health care spending, we must not turn Extension Service Directors, Lockheed within NIH that do something in the our backs on the health care needs of Martin, and a consortium of other high way of pediatrics. In my view, we need our children. Pediatric research offers technology companies. to bring some level of coordination and potential savings in health care costs An identical bill H.R. 725 was intro- focus on these efforts. as well as substantial benefits to the duced by Congressman LEWIS and Con- In developing this initiative, I have well-being of children for a lifetime. gressman CRAPO on February 12, 1997. made sure that it gives the Director of Moreover, pediatric research contrib- Precision agriculture technologies NIH as much discretion as possible. utes to new insights and discoveries in are rapidly advancing, and it is crucial The money has to be spent on outside preventing and treating illnesses and that the agricultural research commu- research, so that the dollars flow out diseases among our country’s adult nity invest in this field of research so to the private sector—but it can go to- population. that all farmers will be able to benefit. ward basic research or clinical re- Let me close by saying that this bill This bill will not only increase the in- search, at the discretion of the Direc- complements legislation I introduced vestment in precision agriculture, but tor. last week which will provide surveil- it will also emphasize an educational This bill does not create a new Office, lance, research, and services aimed at process that will assist all farmers in Center, or Institute. It proposes spend- the prevention of birth defects, the No. adopting precision agriculture tech- ing for research, not infrastructure. 1 killer of babies. We currently know nologies and applications. This initiative has the support of the the causes of about 30 percent of all Emerging technologies in production pediatric research community in chil- birth defects. With the enactment of a agriculture are changing and improv- dren’s hospitals and university pedi- pediatric research initiative and the ing the way farmers produce food and atric departments all over the country. Birth Defects Prevention Act of 1997, fiber in this country. New technologies It has been endorsed by the National we will shed new light on the causes of such as global positioning satellites Association of Children’s Hospitals, the birth defects as well as numerous other field mapping, geo-reference informa- American Academy of Pediatrics, the diseases, illnesses, and other health tion systems, grid soil sampling, vari- Association of Medical School Pedi- factors afflicting our Nation’s children. able rate seeding and input applica- atric Department Chairmen, the Amer- tions, portable electronic pest scout- ican Pediatric Society, Children’s Hos- By Mr. MCCONNELL (for himself, ing, on-the-go yield monitoring, and pitals and University Medical Centers, Mr. CRAIG, Mr. KEMPTHORNE, computerized field history and record the Juvenile Diabetes Association, Ad- Mr. GRASSLEY, Mr. COCHRAN, keeping are just a few of the next gen- vocates for Children With Special Con- Mr. ROBERTS and Mr. BOND): eration technological tools in use ditions, Pediatric Academy Societies, S. 485. A bill to amend the Competi- today. Association of Ohio Children’s Hos- tive, Special, and Facilities Research Today, these technologies can map pitals, Children’s Hospital Affiliates of Grant Act to provide increased empha- these variables and data instanta- the Missouri Hospital Association, sis on competitive grants to promote neously as an applicator or combine Children’s Hospital Association of agricultural research projects regard- drives across the field. In short, each Texas, Federation of Children’s With ing precision agriculture and to pro- farm field using precision technology Special Health Care Needs, and Family vide for the dissemination of the re- becomes a research pilot. And in the Voices. sults of the research projects, and for down months or winter season a farmer Mr. BOND. Mr. President, I rise other purposes; to the Committee on can collect the data from the previous today in strong support of Senator Agriculture, Nutrition, and Forestry. growing season and adjust dozens of DEWINE’s effort to establish a pediatric THE PRECISION AGRICULTURE RESEARCH, EDU- important agronomic variables to research initiative within the Office of CATION, AND INFORMATION DISSEMINATION maximize the efficient use of all the the Director at the National Institutes ACT OF 1997 farmers inputs: time, fuel, commercial of Health [NIH]. ∑ Mr. MCCONNELL. Mr. President, inputs, seed rate, irrigation—the list To achieve real progress in improving today several colleagues and I are in- goes on and on. the health of our Nation’s most vulner- troducing the Precision Agriculture These precision farming tools are al- able and valuable resource—our chil- Research, Education, and Information ready proving to help farmers increase dren—we must strengthen public in- Dissemination Act of 1997. field productivity, improve input effi- vestments in pediatric research; en- Earlier this month the Senate Com- ciency, protect the environment, maxi- hance Federal coordination among the mittee on Agriculture, Nutrition, and mize farm profitability, and create NIH Institutes to ensure quality multi- Forestry began a series of hearings on computerized field histories that may disciplinary research in areas of sci- reforming and reauthorizing agricul- help increase land values. Collectively, entific progress; develop new incen- tural research programs. It is our de- these and other emerging technologies tives for investment in pediatric clini- sire that as we move through this proc- are being used in an integrated, site- cal trials; support new ways to treat ess this legislation will become part of specific systems approach called ‘‘Pre- children with special conditions; and the research reauthorization that is cision Agriculture.’’ Progressive and develop information to promote safer signed into law. production minded farmers are already and more effective use of prescription This legislation emphasizes research using these technologies. In a decade drugs for children. on precision agriculture technologies. they may be as commonplace on the The opportunity for scientific These technologies are very exciting farm as air-conditioned tractor cabs progress in combating and preventing and will enable the United States to and power steering. illnesses and diseases affecting chil- maintain and augment our competitive Precision farming seems to offer dren has never been greater. To assist edge in global agricultural markets. great promise for improving production the NIH in strengthening its pediatric The legislation amends the Competi- performance. Inherently, it sounds research efforts, I, along with other tive, Special and Facilities Research very appealing to be able to evaluate members of the Labor, HHS, and Edu- Grant Act of 1965 by modifying the Na- production conditions on an individual cation Appropriations Subcommittee, tional Research Initiative [NRI] to give square foot, yard, or acre basis rather successfully secured $5 million for the the Secretary of Agriculture authority than that of a whole field. It would NIH Office of the Director to begin this to provide research, extension, and seem that we should be able to treat S2650 CONGRESSIONAL RECORD — SENATE March 20, 1997 any situation more appropriately the dent makes such a determination, the S. 486 smaller the plot we are considering. WTO Agreement cannot apply between Be it enacted by the Senate and House of Rep- There have been great strides in pre- the United States and that nation until resentatives of the United States of America in dicting productivity on the basis of the latter agrees that its STE’s will Congress assembled, smaller and smaller units on the make decisions based exclusively on SECTION 1. SHORT TITLE. ground than we have ever realistically commercial considerations. This Act may be cited as the ‘‘Fairness in State Trading Act’’. envisioned in the past, measuring The Brownback bill is designed to en- yields as we harvest, being able to col- SEC. 2. FINDINGS. sure that the WTO accession protocol Congress makes the following findings: lect soil samples on a very small pilot agreements of such countries as China, (1) State trading enterprises play a signifi- basis and prescribe corrective measures Russia, and the Ukraine include a pro- cant role in the economies of several coun- on the go. All of these things are pos- vision in which these countries specifi- tries that have applied to the World Trade sible. They are being done on an experi- cally agree that their STE’s will make Organization (referred to in this Act as the mental basis in many locations. Some purchasing decisions based solely on ‘‘WTO’’). producers have adopted the new tech- commercial considerations. This provi- (2) The General Agreement on Tariffs and nology and are using it. sion is important because these WTO Trade (referred to in this Act as the Precision farming is, in its simplest ‘‘GATT’’), and especially GATT Article XVII, applicants have indicated that they in- does not adequately prevent countries from form, a management system for crop tend to continue to purchase commod- using state trading enterprises as a disguised production that uses site-specific data ities such as wheat, corn, rice, vegeta- barrier to imports from the United States. to maximize yields and more effi- ble oils, and sugar exclusively or al- (3) The United States economy will be ad- ciently use inputs. The technology is most exclusively through STE’s. versely affected by the accession to the WTO quickly gaining acceptance and use by Without a strong commitment from of foreign countries that have state trading producers, farm suppliers, crop consult- these countries to depoliticize their enterprises that make production or procure- ants, and custom applicators. ment decisions based upon noncommercial import practices, the United States considerations. Precision farming links the data- would only have recourse to GATT ar- management abilities of computers (4) State trading enterprises have a par- ticle XVII for questionable activities ticularly negative impact on United States with sophisticated farm equipment undertaken by China’s STE’s. In 1995, farmers. that can vary applications rates and the GAO determined that article XVII SEC. 3. ACCESSION OF COUNTRIES WITH STATE monitor yields throughout a field. is an ineffective mechanism for polic- TRADING ENTERPRISES TO GEN- Mr. President, the capabilities of pre- ERAL AGREEMENT ON TARIFFS AND ing the activities of STE’s, and that TRADE OR WORLD TRADE ORGANI- cision agriculture technologies are rap- the state trading activities of China, idly increasing. The economic and en- ZATION. Russia, and the Ukraine present prob- Section 1106 of the Omnibus Trade and vironmental benefits of these tech- lems that article XVII is not capable of Competitiveness Act of 1988 (19 U.S.C. 2905) is nologies have not been fully realized. addressing. amended— Increasing the use of these tech- Weak enforcement of STE activities (1) by striking ‘‘major foreign country’’ nologies and development of com- each place it appears and inserting ‘‘foreign would enable the STE’s of new WTO plementary new technologies will bene- country’’; members to continue to employ a po- fit American agriculture, the U.S. (2) in subsection (a), by amending para- liticized procurement process. Why economy and both domestic and global graph (1) to read as follows: should the United States be more con- environmental concerns. In Kentucky ‘‘(1) whether state trading enterprises cerned about the state trading activi- produce or procure a significant share of— this type of research can help produc- ties of new members of the WTO rather ‘‘(A) the goods exported from such foreign ers increase their yield while protect- than the activities of current mem- country; ing environmental concerns such as bers? Because the state trading activi- ‘‘(B) the goods imported into such foreign water quality. I believe these new high- country; or ties of current WTO members pale in technology tools can make agriculture ‘‘(C) the goods produced domestically in comparison to the state trading activi- better by boosting production, environ- such foreign country; and’’; and ties of nations such as China, Russia, mental quality and profits. ∑ (3) in subsection (b)(2)(A)— and the Ukraine. (A) by amending clause (i) to read as fol- By Mr. BROWNBACK (for him- Import decisions must be made on lows: ‘‘(i) will make purchases and sales in inter- self, Mr. GRASSLEY, Mr. HAGEL purely commercial considerations. national trade based solely on commercial and Mr. JOHNSON): GATT article XVII is not capable of ef- fectively policing the state trading ac- considerations (including price, quality, S. 486. A bill to amend the Omnibus availability, marketability, and transpor- Trade and Competitiveness Act of 1988 tivities of countries accustomed to a tation), and’’; and to clarify the limitation for accession command-and-control economic model. (B) in clause (ii), by striking ‘‘, in accord- to the GATT and the WTO of foreign Before we apply the WTO Agreement ance with customary practice,’’. countries that have state trading en- between the United States and these Mr. HAGEL. Mr. President, I rise terprises; to the Committee on Fi- countries, we must ensure that they today as an original cosponsor of the nance. agree to depoliticize their import prac- legislation introduced by my distin- THE FAIRNESS IN STATE TRADING ACT OF 1997 tices. guished colleague from Kansas, Sen- Mr. BROWNBACK. Mr. President, I Kansas, Iowa, Nebraska, South Da- ator BROWNBACK. This bill is an impor- rise today to introduce the Fairness in kota, and States across the Nation tant step toward opening foreign mar- State Trading Act of 1997. This bill, grow the best crops in the world. Ex- kets to American products—especially which is cosponsored by Senators ports of these and other U.S. commod- our agricultural products. GRASSLEY, HAGEL, and JOHNSON, is a bi- ities have skyrocketed as tariff and Several countries have State Trading partisan approach to addressing the nontariff barriers to these goods have Enterprises that control all imports of problem faced by U.S. exporters in been reduced worldwide. We cannot certain products. These trading enter- countries in which state trading enter- allow state trading activities to sup- prises create a bottleneck in trade—a prises [STE’s] dominate the economy. plant tariff and other nontariff meas- bottleneck controlled by the Govern- The Fairness in State Trading Act ures as the new barriers to U.S. ex- ment, not by free enterprise. The result would subject the import activities of ports. Let’s make sure that U.S. goods is that foreign politics end up control- STE’s to the jurisdiction of section 1106 can compete on a level playing field in ling trade decisions, and American ex- of the 1988 Omnibus Trade and Com- the markets of new members of the porters get hurt. petitiveness Act of 1988, (19 U.S.C. WTO before we lock in reductions in This bill would require the United 2905). If this bill passes, the President our barriers to goods from these coun- States to oppose membership in the would have to determine whether the tries. Please print statement and bill World Trade Organization for any import activities of the state trading in the RECORD. country that has a State Trading En- enterprises of an applicant to the WTO There being no objection, the bill was terprise that refuses to buy our prod- impede, or are likely to impede, U.S. ordered to be printed in the RECORD, as ucts for reasons other than market exports to that country. If the Presi- follows: conditions. Its purpose is simple: It March 20, 1997 CONGRESSIONAL RECORD — SENATE S2651 gives America leverage against coun- for both academia and industry on ca- THE CRIME CLOCK IS TICKING tries that shut out our exporters for reer policies for women scientists. The picture painted by crime statis- political reasons. In 1992, it came to my attention that tics is frightening. According to the women scientists at the National Insti- This is important for all of America’s Uniform Crime Reports released by the tutes of Health were not being treated exporters, who benefit from having a Department of Justice, in 1995 there fairly. Women scientists at NIH indi- level playing field. It is especially im- was: A violent crime every 18 seconds; cated that they were not being given portant for American farmers. This bill a murder every 24 minutes; a forcible research and conference assignments will give our negotiators an important rape every 5 minutes; a robbery every that would help advance their careers. new tool to use as they oppose the un- 54 seconds; an aggravated assault every They were not being adequately recog- justified actions of State trading enter- 29 seconds; a property crime every 3 nized for their accomplishments. Publi- prises around the world. It will help us seconds; a burglary every 12 seconds; cation opportunities were limited. get American dairy products into New and a motor vehicle theft every 21 sec- Zealand and American wheat into Can- Questions were raised about tenure and comparability of pay with male col- onds. ada. In short, a crime index offense oc- But its most important effect will be leagues. Legislation was introduced in the curred every 2 seconds. And this is just in regard to China. China is an enor- reported crime. mous and growing market. As China 103d and 104th Congresses to address emerges economically, we must do all these concerns. I am encouraged that f we can to bring China into the world NIH voluntarily adopted some of the STATISTICS trading system as a full partner. If we provisions outlined in these bills. But, this is only a start. We must continue Again, according to the Uniform want our exporters to do business in Crime Reports in 1994, there were China’s emerging market, we need to to address the equity issues and poli- cies impacting career advancement of 1,798,785 violent crimes reported to law ensure that China plays by all the rules enforcement, a rate of 684.6 violent of trade that govern the rest of the our best and brightest women sci- entists. These issues deserve our ut- crimes per 100,000 inhabitants. The 1995 world. total was about 40 percent above that The discussions about China’s acces- most attention. That is why this bill is of 1985. sion to the World Trade Organization so important. It will ensure that the Additionally, in 1995 there were: are ongoing. I strongly believe China policies are in place to promote career 21,957 murders, a rate of 8.2 per 100,000 must accept all obligations that WTO opportunities for women scientists. inhabitants; 580,545 robberies, a rate of membership entails. That includes let- And, it will ensure that policies are re- 220.9 per 100,000 inhabitants; 2,594,995 ting the market, not the politicians, viewed regularly, that progress is mon- burglaries, a rate of 987.6 per 100,000 in- control its trading decisions. China itored and that policies are revised if habitants; 1,099,179 aggravated as- must dismantle its remaining State necessary. What I like about this bill is that it saults, a rate of 418.3 per 100,000 inhab- Trading Enterprises—especially the en- addresses a problem in our own back- itants; and 97,464 rapes, a rate of 37.1 terprise that controls the import of yard. It says we in the Federal Govern- per 100,000 inhabitants. wheat into the country. ment have a problem, and we are going Further, juvenile crime is skyrocket- American farmers—especially our to fix it. It ensures that our women sci- ing. According to statistics compiled wheat producers—need full and free ac- entists working at HHS are treated by the FBI, from 1985 to 1993 the num- cess to China’s market. This bill gives fairly. It serves as a model for the pri- ber of homicides committed by males our trade negotiators a small but im- vate sector by setting the stage for eq- aged 18 to 24 increased 65 percent, and portant tool to help ensure that will uity among our career scientists. It by males aged 14 to 17 increased 165 happen. shows that we are very serious about percent. In addition, according to the I urge my colleagues to support it. equity and fair play in the scientific Department of Justice, during 1993, the By Ms. MIKULSKI (for herself, community. I encourage my colleagues youngest age group surveyed—those 12 Ms. MOSELEY-BRAUN, Mr. to join me in supporting the HHS to 15 years old—had the greatest risk INOUYE and Mrs. BOXER): Women Scientist Employment Oppor- of being the victims of violent crimes. S. 487. A bill to amend the Public tunity Act. ∑ THE HEAVY COST OF CRIME Health Service Act with respect to em- By Mr. KYL: Aside from the vicious personal toll ployment opportunities in the Depart- S. 488. A bill to control crime, and for exacted, crime also has a devastating ment of Health and Human Services for other purposes; to the Committee on effect on the economy of our country. women who are scientists, and for the Judiciary. To fight crime, the United States other purposes; to the Committee on f spends about $90 billion a year on the Labor and Human Resources. entire criminal justice system. Crime THE HHS WOMEN SCIENTIST EMPLOYMENT THE CRIME PREVENTION ACT OF is especially devastating to our cities, OPPORTUNITY ACT 1997 which often have crime rates several ∑ Ms. MIKULSKI. Mr. President, I in- Mr. KYL. Mr. President, I rise to in- times higher than suburbs. troduce the HHS Women Scientist Em- troduce the Crime Prevention Act of A Washington Post article detailed ployment Opportunity Act. What this 1997. One of the most important respon- the work of Professors Mark Levitt and bill does is quite simple. It will require sibilities for the 105th Congress is to Mark Cohen in estimating the real cost all agencies within the Department of pass a tough comprehensive crime of crime to society. According to the Health and Human Services to estab- measure that will restore law and order article, ‘‘[i]nstead of merely toting up lish policies to ensure employment op- to America’s streets. Reported crime the haul in armed robberies or bur- portunities for women scientists within may have decreased slightly over the glaries, Cohen tallied all of the costs the Department. It will ensure a fair past few years, but the streets are still associated with various kinds of crime, break for the many dedicated women too dangerous. Too many Americans from loss of income sustained by a scientists serving at the National Insti- are afraid to go out for fear of being murder victim’s family to the cost of tutes of Health, the Center for Disease robbed, assaulted, or murdered. In fact, counseling a rape victim to the dimin- Control and Prevention, the Food and according to the Bureau of Justice Sta- ished value of houses in high-burglary Drug Administration, and other agen- tistics report ‘‘Highlights from 20 neighborhoods.’’ These ‘‘quality of life’’ cies or offices in the Department. Poli- Years of Surveying Crime Victims,’’ costs raise the cost of crime consider- cies are to be reviewed regularly and approximately 2 million people are in- ably. Cohen and Levitt calculated that revised if necessary. jured a year as a result of violent one murder costs society on average This bill is about the promoting crime. Of those who are injured, more $2.7 million. A robbery nets the robber equality. It is about supporting and ad- than half require some level of medical an average of $2,900 in actual cash, but vancing the careers of women sci- treatment and nearly a quarter receive it produces $14,900 in ‘‘quality of life’’ entists. It is about our Government treatment in a hospital emergency expenses. And while the actual mone- leading the way in setting an example room or require hospitalization. tary loss caused by an assault is $1,800, S2652 CONGRESSIONAL RECORD — SENATE March 20, 1997 it produces $10,200 in ‘‘quality of life’’ tial jury by giving both sides the same vating factors outweigh mitigating fac- expenses. number of peremptory challenges. tors. LEGISLATION The 1994 Crime Act included a provi- HABEAS CORPUS Fighting crime must be a top prior- sion requiring notice to State and local To eliminate the abuse, delay, and ity. Few would dispute this. According authorities concerning the release of repetitive litigation in the lower Fed- to a poll conducted for Reuters by the Federal violent offenders. Under the eral courts title VI of this bill provides New York-based John Zogby Group act, notice can only be used for law-en- that the decisions of State courts will that was released on January 31, 1997, forcement purposes. The Justice De- not be subject to review in the lower voters rank crime as the most impor- partment opposes this limitation be- Federal courts, so long as there are tant issue. Further, according to an ar- cause it disallows other legitimate uses adequate and effective remedies in the ticle in the July 19, 1995 Tucson Citi- of the information, such as warning po- State courts for testing the legality of zen, about 500 business, education, and tential victims of the offender’s return a person’s detention. This provision government leaders in Tucson ranked to the community. My bill would de- limits the needless duplicative review crime as the number one issue in a sur- lete this restriction. in the lower Federal courts, and helps vey commissioned by the Greater Tuc- It is our responsibility to continue to put a stop to the endless appeals of son Economic Council. Also, according work to combat violent crime, wher- convicted criminals. Judge Robert to a November 6, 1996 article in The Ar- ever it occurs. Titles I and II take an Bork has written a letter in support of izona Daily Star, Arizonans rank crime important step toward protecting the this provision. as one of the most important issues. rights of crime victims, curbing domes- Given the magnitude of the problem tic violence, and removing violent of- ADMINISTRATIVE SUBPOENA of crime in our society, I believe that it fenders from our streets and commu- The bill allows high-ranking Secret is important to consider a comprehen- nities. Service agents to issue an administra- sive crime package. My bill has solid FIREARMS tive subpoena for information in cases reforms that should blunt the fore- Almost 30 percent of all violent in which a person’s life is in danger. casted explosion in crime. I would like crimes are committed through the use The Department of Agriculture, the to take this opportunity to outline of of a firearm, either to intimidate the Resolution Trust Corporation, and the the provisions included in the Crime victim into submission or to injure the Food and Drug Administration already Prevention Act of 1997. victim, according to the Bureau of Jus- have administrative subpoena power. VICTIM RIGHTS AND DOMESTIC VIOLENCE tice Statistics. And 70 percent of all The Secret Service should have it to Women are the victims of more than murders committed were accomplished protect the lives of American citizens. 4.5 million violent crimes a year, in- through the use of a firearm. To help cluding half a million rapes or other CONCLUSION stop this violence the bill increases the The Kyl crime bill is an important ef- sexual assaults, according to the De- mandatory minimum sentences for partment of Justice. The National Vic- fort in the fight against crime. We can criminals who use firearms in the com- win this fight, if we have the convic- tim Center calculates that a woman is mission of crimes. It imposes the fol- battered every 15 seconds. A message tion, and keep the pressure on Congress lowing minimum penalties: 10 years for to pass tough crime-control measures. must be sent to abusers that their be- using or carrying a firearm during the havior is not a ‘‘family matter.’’ Soci- It is time to stop kowtowing to pris- commission of a Federal crime of vio- oners, apologists for criminals, and the ety should treat domestic violence as lence or drug trafficking crime; 20 seriously as it does violence between defense lawyers, and pass a strong years if the firearm is discharged; in- crime bill. strangers. My bill will strengthen the carceration for life or punishment by rights of domestic violence victims in death if death a person results. By Mr. KYL (for himself and Mr. Federal court and, hopefully, set a THE EXCLUSIONARY RULE REID): standard for the individual States to To ensure that relevant evidence is S. 489. A bill to improve the criminal emulate. First, my bill authorizes the death not kept from juries, the bill extends law relating to fraud against consum- penalty for cases in which a woman is the ‘‘good faith’’ exception to the ex- ers; to the Committee on the Judici- murdered by her husband or boyfriend. clusionary rule to non-warrant cases, ary. Courts will not, under this bill, be able where the court determines that the THE TELEMARKETING FRAUD PREVENTION ACT to exclude evidence of a defendant’s circumstances justified an objectively Mr. REID. Mr. President, I am proud violent disposition toward the victim reasonable belief by officers that their to be an original cosponsor to the Tele- as impermissible ‘‘character’’ evidence. conduct was lawful. marketing Fraud Prevention Act. Un- My bill also provides that if a defend- THE DEATH PENALTY fortunately, my State of Nevada has ant presents negative character evi- The vast majority of the American the highest rate of bogus telemarket- dence concerning the victim, the gov- public supports the option of the death ing operations in the Nation. I have ernment’s rebuttal can include nega- penalty. A Gallup poll conducted in been involved over the last few years tive character evidence concerning the April 1996 found that 79 percent of with uncovering these scams. We held a defendant. It makes clear that testi- Americans support the death penalty, hearing last year in the Special Aging mony regarding battered women’s syn- and an ABC News/Washington Post poll Committee to call attention to this drome is admissible to explain the be- conducted in January 1995 found that crime, which primarily targets seniors. havior of victims of violence. 74 percent of Americans favor the At the time of the hearing I called We must establish a higher standard death penalty for persons convicted of these scams electric muggings, and of professional conduct for lawyers. My murder. stated that Congress needs to treat legislation prohibits harassing or dila- To deter crime and to make a clear these telephone thugs like criminals on tory tactics, knowingly presenting statement that the most vicious, evil the street who attack and steal. This false evidence or discrediting truthful behavior will not be tolerated in our act aims to do just that. evidence, willful ignorance of matters society, the bill strengthens Federal Nationwide these phone schemes cost that could be learned from the client, death penalty standards and proce- consumers over $60 billion a year. As I and concealment of information nec- dures. It requires defendant to give no- stated earlier, Nevada has the highest essary to prevent sexual abuse or other tice of mitigating factors that will be rate of fraudulent telemarketing oper- violent crimes. relied on in a capital sentencing hear- ations. But Kathryn Landreth, U.S. at- Violence in our society leaves law- ing—just as the Government is now re- torney for Nevada, has been working abiding citizens feeling defenseless. It quired to give notice of aggravating with the Department of Justice to is time to level the playing field. Fed- factors—adds use of a firearm in com- break up these schemes. Last year they eral law currently gives the defense mitting a killing as an aggravating rounded up over 200 fraudulent opera- more chances than the prosecution to factor that permits a jury to consider tors in Las Vegas. Nevada AARP mem- reject a potential juror. My bill pro- the death penalty, and directs the jury bers served as decoys for the sting, and tects the right of victims to an impar- to impose a capital sentence if aggra- I again commend them for doing so. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2653 Sadly, victims of telemarketing cally increased in recent years. More ents, almost invariably single mothers, fraud are most often our senior citi- than 56 percent of all mothers with who must balance the need to work zens. These white-collar thugs who children under 6 years work outside the with their parental responsibilities. cheat victims out of their hard-earned home, and over 70 percent of women Middle-class Americans are working money, are swindlers who choose to with children over age 6 are in the harder than ever to maintain their satisfy their greed by bilking others in- labor market. standard of living. In many families, stead of doing an honest day’s work. The percentage of Hawaii households parents have been forced to work These thugs not only rob their victims in which both parents work outside the longer hours, deplete their savings, and of their financial security, but also of home is even higher than the national go deeper into debt. There is an urgent their dignity. Many older Americans average. According to projections de- need to enact changes in our tax code live alone, may have just lost their veloped by the Bank of Hawaii based on that are pro-family and pro-children. spouse, and are particularly vulnerable the 1990 Census, 61.8 percent of all Ha- The Working Families Child Care Tax to con-artists who act like they are waii families have both parents em- Relief Act meets both of these goals. their friends. One of the telemarketers ployed, and 71.3 percent of all house- Mr. President, I ask unanimous con- prosecuted by the U.S. attorney of Ne- holds have at least two individuals in sent that the text of the bill be printed vada’s office collected obituaries from the workforce. in the RECORD. various newspapers so that he could The increased participation of single There being no objection, the bill was take advantage of recent widows and mothers in the labor market and the ordered to be printed in the RECORD, as widowers. large number of two-parent families in follows: Typical schemes involve the telemar- which both parents work outside the S. 490 keter promising thousands of dollars, home have made the dependent care Be it enacted by the Senate and House of Rep- free vacations, or new cars if the vic- credit one of the most popular and pro- resentatives of the United States of America in Congress assembled, tim buys a fur coat or overpriced vita- ductive tax incentives ever enacted by SECTION 1. SHORT TITLE. mins, for example. If a victim receives Congress. Unfortunately, the value of This Act may be cited as the ‘‘Working anything at all in return for the money the credit has declined significantly Families Child Care Tax Relief Act’’. sent to the telemarketer, the items are over the years as inflation has slowly SEC. 2. INFLATION ADJUSTMENT OF DEPENDENT generally worth far less than rep- eaten away at the value of this benefit. CARE CREDIT. resented; in some cases they are no Measured in constant dollars, the max- (a) IN GENERAL.—Subsection (e) of section more than worthless junk. imum credit of $2,400 has decreased in 21 of the Internal Revenue Code of 1986 (re- Not only do we need vigilant law en- value by more than 45 percent since lating to expenses for household and depend- ent care services necessary for gainful em- forcement and tough punishments, but 1982. ployment) is amended by adding at the end we need to inform people. We have to In 1981, the flat credit for dependent the following new paragraph: get the message out to people, espe- care was replaced with a scale to give ‘‘(11) INFLATION ADJUSTMENT.—In the case cially seniors, to be wary of offerings the greatest benefit of the credit to of any taxable year beginning in a calendar over the phone and hang up when asked lower income working families. Since year after 1996, each dollar amount con- for money. Further, they should report that time, neither the adjusted gross tained in subsections (c) and (d)(2) shall be income figures employed in the scale, increased by an amount equal to— the incident to the U.S. attorney’s of- ‘‘(A) such dollar amount, multiplied by fice. Hopefully, strengthening the pun- nor the limit on the amount of employ- ‘‘(B) the cost-of-living adjustment deter- ishment for these crimes will deter ment-related expenses used to cal- mined under section 1(f)(3) for the calendar others from entering the arena, but it culate the credit, has been adjusted for year in which the taxable year begins, by is extremely important to follow up on inflation. My bill provides a measure of substituting ‘calendar year 1995’ for ‘cal- this act with enforcement and informa- much needed relief to working Amer- endar year 1992’ in subparagraph (B) there- tion. ican families. It would index the child of.’’ and dependent care credit and restore (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable By Mr. AKAKA: the full benefit of the credit. years beginning after December 31, 1996. S. 490. A bill to amend the Internal The maximum amount of employ- Revenue Code of 1986 to adjust for in- ment-related child care expenses al- By Mr. FORD: flation the dollar limitations on the lowed under current law—$2,400 for a S. 491. A bill to amend the National dependent care credit; to the Commit- single child and $4,800 for two or more Wildlife Refuge System Administration tee on Finance. children—has simply failed to keep Act of 1966 to prohibit the United THE WORKING FAMILIES CHILD CARE TAX RELIEF pace with escalating care costs. Unlike States Fish and Wildlife Service from ACT OF 1997 other tax credits and deductions pro- acquiring land to establish a refuge of Mr. AKAKA. Mr. President, today I vided taxpayers in the Internal Reve- the National Wildlife Refuge System am reintroducing legislation that I nue Code, the dependent care credit is unless at least 50 percent of the owners have sponsored in the past two Con- not adjusted for inflation. of the land in the proposed refuge favor gresses to provide a measure of tax re- Without an adjustment for inflation, the acquisition; to the Committee on lief to working families throughout we will continue to diminish the pur- Environment and Public Works. America. My bill would restore value pose of this credit to offset the expense THE NATIONAL WILDLIFE REFUGE SYSTEM to the child and dependent care credit of dependent and child care services in- ADMINISTRATION ACT AMENDMENT ACT OF 1997 by allowing an annual adjustment of curred by parents working outside the Mr. FORD. Mr. President, last month the credit for inflation. home. While the cost of quality child in western Kentucky, about 200 citizens Mr. President, as the Federal Govern- care has increased as demand exceeds of Marshall County packed a junior ment and the states work to move peo- supply, the dependent care credit has high school auditorium, taking time ple from welfare to work, the problems failed to keep up with the spiraling out from their busy schedules, to learn faced by working Americans seeking costs. My legislation addresses this more about the proposed Clarks River affordable, quality child-care services chronic problem by automatically ad- Wildlife Refuge. So many people were for their children will likely worsen. justing the dependent and child care there because it marked the first time The availability and affordability of credit for inflation. Under this legisla- they had an opportunity to voice their adequate child care are the principal tion, both the dollar limit on the opinions on a refuge that would go, lit- concerns expressed by an increasing amount creditable and the limitation erally, through their backyards. Back- number of middle-class working par- on earned income would be adjusted ers of the refuge had crafted a proposal ents. Many parents are forced to patch annually. and sought funding without any input together a network of child care pro- Mr. President, the average cost for from the people who owned the land. viders to secure care for their children. out of home child care exceeds $3,500 I first called the Senate’s attention The evidence in support of improving per child, per year. Child care or de- to this refuge last year, during consid- the child and dependent care credit is pendent care expenses can seriously eration of the omnibus appropriations clear. The number of single mothers strain a family’s budget. This burden bill. I made it clear that I’m not nec- working outside the home has dramati- can become unbearable for single par- essarily opposed to the creation of a S2654 CONGRESSIONAL RECORD — SENATE March 20, 1997 wildlife refuge in western Kentucky. ‘‘(A) hold a public hearing on the proposed exceptionally demanding conditions. What concerned me then and concerns acquisition in the area in which the land pro- The typical workweek consists of a me now is that those who farm about posed to be acquired is located; and one-day-off schedule which results in ‘‘(B) acting through a private, independent 7,000 acres within the proposed bound- entity, conduct a referendum among owners three 24-hours shifts during the re- aries of the refuge haven’t been heard of the land that will be acquired to establish mainder of each week. Despite this un- on whether they support the refuge. As the refuge to determine whether the owners usual schedule, firefighters are paid one farmer said to me in a letter last favor the proposed acquisition. under a modified version of the same year, ‘‘no one seems to listen to what ‘‘(2) APPROVAL OF ACQUISITION.—The Sec- General Schedule pay system used for the majority of the landowners and retary may acquire land to establish a refuge full-time, 40-hour-per-week Federal of the System only if a majority of owners of farmers, who are directly involved, are the land voting in the referendum favor the workers. saying.’’ proposed acquisition.’’. The result of the pay modification is Well, Mr. President, I’m listening. (b) EFFECTIVE DATE.—The amendment that Federal firefighters make less per During last month’s hearing, one farm- made by subsection (a) takes effect on Octo- hour than any other Federal employee er asked for a show of hands, of the ber 1, 1996. at their same grade level. For example: landowners present, who supported the a firefighter who is a GS–5, Step 5 refuge. Three hands went up. When he By Mr. SARBANES: makes $7.21 per hour while other em- S. 492. A bill to amend certain provi- asked how many landowners opposed ployees at the same grade and step sions of title 5, United States Code, in the refuge, about 60 hands went up. earn $10.34 per hour. Some have tried order to ensure equality between Fed- What’s worse, when a farmer asked to justify this by noting that part of a eral firefighters and other employees how many landowners had been con- firefighter’s day is downtime. However, in the civil service and other public tacted to determine support for the ref- I must note that all firefighters have sector firefighters, and for other pur- uge, the Government officials admitted substantial duties beyond those at the poses; to the Committee on Govern- that not a single landowner had been site of a fire. Adding to this discrep- mental Affairs. contacted—despite the fact that the ancy is the fact that the average mu- f creation of the refuge will depend sole- nicipal firefighter makes $12.87 per ly on the number of willing sellers. THE FIREFIGHER PAY FAIRNESS hour. Today I am introducing legislation to ACT Mr. President, this has caused the correct this practice. My bill would re- Mr. SARBANES. Mr. President, Federal fire service to become a train- quire the Fish and Wildlife Service to today I am introducing legislation to ing ground for young men and women contact for an independent, non-biased improve the pay system used for Fed- who then leave for higher pay else- survey of landowners within the bound- eral firefighters. This bill has three where in the public sector. Continually aries of any proposed refuge. If the sur- broad purposes: First, to improve pay training new employees is, as my col- vey shows that a majority of the land- equality with municipal and other pub- leagues know, very expensive for any owners support the refuge, then the lic section firefighters; second, to en- employer. Service would be free to proceed with hance recruitment and retention of The Office of Personnel Management land acquisitions to create it. If not, firefighters in order to maintain the is well aware of these problems. In fact, then the Service would be prohibited highest quality Federal fire service; section 102 of the Federal Employees from taking additional steps. and third, to encourage Federal fire- Pay Comparability Act of 1990 Mr. President, my bill is simply com- fighters to pursue career advancement [FEPCA], title V of Public Law 101–509, mon sense: Creating a wildlife refuge and training opportunities. authorizes the establishment of special depends on the willingness of land- Fire protection is clearly a major pay systems for certain Federal occu- owners to sell their property to the concern at Federal facilities and on pations. The origin of this provision Federal Government. We should first Federal lands throughout the Nation. was a recognition that the current pay determine if there are enough land- From fighting wildland fires in our na- classification system did not account owners willing to sell enough land to tional parks and forests to protecting for the unique and distinctive employ- actually create the refuge before we military families from fires in their ment conditions of Federal protective begin to make purchases. It doesn’t base housing, Federal firefighters play occupations including the Federal fire make sense to draw up plans for a wild- a vital role in preserving lives and service. life refuge if there won’t be enough property. One only needs to recall the In May 1991, I wrote to OPM urging land available to create it. terrible tragedies in Colorado two sum- the establishment of a separate pay Mr. President, the people of western mers ago to understand the vital im- scale for firefighters under the author- Kentucky have asked, repeatedly, for portance of our Federal firefighters. ity provided for in FEPCA. Subse- their voices to be heard. My legislation The Department of Agriculture, the quently, OPM established an Advisory will ensure that they will be, and that Coast Guard, the Department of Com- Committee on Law Enforcement and future refuges respect the wishes of af- merce, the Department of Defense, the Protective Occupations consisting of fected communities. General Services Administration, the agency personnel and representatives Mr. President, I ask unanimous con- Department of the Interior, and the from Federal fire and law enforcement sent that the text of the bill be printed Department of Veterans Affairs are organizations. Beginning in August of in the RECORD. among the Federal agencies which rely 1991, representatives from the Federal There being no objection, the bill was on Federal fire fighters to protect their fire community began working with ordered to be printed in the RECORD, as vast holdings of land and structures. OPM and other administration officials follows: Just like their municipal counterparts, to identify and address the problems of S. 491 these firefighters are the first line of paying Federal firefighters under the Be it enacted by the Senate and House of Rep- defense against threats to life and General Schedule. The committee com- resentatives of the United States of America in property. pleted its work in June of 1992 and in Congress assembled, Mr. President, the current system December of that year issued a staff re- SECTION 1. LANDOWNER REFERENDA ON REF- used to pay our Federal firefighters is port setting forth recommendations to UGES. (a) IN GENERAL.—Section 4 of the National at best confusing and at worst unfair. correct the most serious problems with Wildlife Refuge System Administration Act These men and women work longer the current pay system. of 1966 (16 U.S.C. 668dd) is amended by adding hours than any other public sector fire- Mr. President, I regret that since the at the end the following: fighters—yet are paid substantially release of the OPM recommendations, ‘‘(j) LANDOWNER REFERENDA ON REFUGES.— less. The current pay system, which there has been no effort to implement ‘‘(1) IN GENERAL.—Before acquiring land to consists of three tiers, is overly com- any of the proposals of the advisory establish a refuge of the System or preparing task force. In fact, OPM has commu- a final environmental assessment or environ- plex and, more importantly, is hurting mental impact statement on the proposed Federal efforts to attract and retain nicated quite clearly that it has no acquisition under the National Environ- top-quality employees. plans to pursue any solution to the se- mental Policy Act of 1969 (42 U.S.C. 4321 et Currently, most Federal firefighters rious pay deficiencies that have been so seq.), the Secretary shall— work an average 72-hour week under widely identified and acknowledged. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2655 It would not be necessary to intro- legislation, the bill I am introducing agency responsible for investigating duce this legislation today had OPM today would implement the new pay telecommunications fraud, cloning taken the corrective action that, in my system and other provisions beginning abets organized criminal enterprises view, is so clearly warranted. However, October 1, 1997. However, the new rate that use cellular telephones as their I have determined that legislation ap- of pay would be phased in over a 4-year preferred method of communication. pears to be the only vehicle to achieve period ending October 1, 2002. Cloned phones are extremely popular the necessary changes in the pay sys- Mr. President, I consulted many of among drug traffickers and gang mem- tem for Federal firefighters. the affected groups in developing my bers, who oftentimes employ several Mr. President, the Firefighter Pay legislation. I am very pleased that this cloned phones to evade detection by Fairness Act would improve Federal bill has been endorsed by the American law enforcement. When not selling firefighter pay in several important Federation of Government Employees, cloned phones to drug dealers and ruth- and straightforward ways. Perhaps the International Association of Fire less street gangs, cloners set up corner- most importantly, the bill draws from Chiefs, the International Association of side calling shops where individuals existing provisions in title V to cal- Fire Fighters, the National Association pay a nominal fee to call anywhere in culate a true hourly rate for fire- of Government Employees, and the Na- the world on a replicated phone, or fighters. This would alleviate the cur- tional Federation of Federal Employ- simply purchase the illegal phone for a rent problem of firefighters being paid ees. flat amount. considerably less than other General As I have said before, Mr. President, The cellular telephone protection bill Schedule employees at the same GS fairness is the key word. There is no clarifies that there is no lawful purpose level. It would also account for the reason why Federal firefighters should to posses, produce or sell hardware, varying length in the tour of duty for be paid dramatically less that their known as copycat boxes, or software Federal firefighters stationed at dif- municipal counterparts. As a cochair- used for cloning a cellular phone or its ferent locations. man of the Congressional Fire Services In addition, the bill would use this ESN. Such equipment and software are Caucus, I want to urge all members of easy to obtainn—advertisements hawk- hourly rate to ensure that firefighters the caucus and, indeed, all Members of receive true time and one-half over- ing cloning equipment appear in com- the Senate to join in cosponsoring this puter magazines and on the Internet. time for hours worked over 106 in a bi- important piece of legislation. weekly pay period. This is designed to There is no legitimate purpose for correct the problem, under the current By Mr. KYL (for himself and Mr. cloning software and equipment, save for law enforcement and telecommuni- system, where the overtime rate is cal- GORTON): culated based on an hourly rate consid- S. 493. A bill to amend section 1029 of cation service providers using it to im- erably less than base pay. title 18, United States Code, with re- prove fraud detection. The bill strikes The Firefighter Pay Fairness Act spect to cellular telephone cloning par- at the heart of the cloning parapherna- would also extend these pay provisions aphernalia; to the Committee on the lia market by eliminating the require- to so-called wildland firefighters when Judiciary. ment for prosecutors to prove that the person selling copycat boxes or cloning they are engaged in firefighting duties. THE CELLULAR TELEPHONE PROTECTION ACT software programs intended to defraud. Currently, wildland firefighters are Mr. KYL. Mr. President, I rise to in- The bill retains an exception for law often not compensated for all the time troduce the Cellular Telephone Protec- enforcement to possess otherwise un- spent responding to a fire event. This tion Act, which would improve the lawful cloning software, and adds a legislation would ensure that these ability of law enforcement to inves- similar exception for telecommuni- protectors of our parks and forests tigate and prosecute individuals en- cations service providers. would be paid fairly for ensuring the gaged in the activity of cloning cel- safety of these invaluable national re- lular phones. Law enforcement officials Moreover, the Cellular Phone Protec- sources. and wireless carriers support the bill as tion Act expands the definition of It also ensures that firefighters pro- an important tool to stem this kind of ‘‘scanning receivers,’’ equipment moted to supervisory positions would telecommunications fraud. which, unlike cloning software and de- be paid at a rate of pay at least equal Cell phones are manufactured with vices, does have legitimate uses if not to what they received before the pro- an embedded electronic serial number used to scan frequencies assigned to motion. This would address a situation, [ESN], which is transmitted to gain ac- wireless communications. The bill under the current pay system, which cess to the telecommunications net- clarifies that the definition of scanning discourages employees from accepting work. Those involved in cloning cell receivers encompasses devices that can promotions because of the significant phones sit in parked cars outside of air- be used to intercept ESN’s even if they loss of pay which often accompanies a ports or along busy roadways to har- are not capable of receiving the voice move to a supervisory position. vest ESN’s from legitimate cell phone channel. As mentioned above, crimi- Similarly, the bill would encourage nals harvest ESN’s by employing scan- employees to get the necessary train- users and, in a process known as cloning, use software and equipment to ners near busy thoroughfares. The re- ing in hazardous materials, emergency vised definition of scanning receiver medicine, and other critical areas by insert the stolen numbers into other cell phones, the clones. A single ESN will ensure that these devices are un- ensuring they do not receive a pay cut lawful when used with an intent to de- while engaged in these training activi- can be implanted into several cloned fraud just like scanners that intercept ties. phones. The cloned phones charge to voice. Mr. President, this legislation is the account of the lawful, unsuspecting based upon a bill I authorized in the user. Cellular phone carriers must ab- Finally, the bill increases penalties 103d Congress. A bipartisan group of sorb these losses, which, according to for those engaged in cloning. A new more than 150 Members cosponsored the Cellular Telecommunication Indus- paradigm is needed for penalizing the measure in the Senate and the try Association, amounted to about cloning offenses. Currently, penalties House last year. The legislation I am $650 million in 1995, up from $480 mil- for cloning crimes are based on the introducing today reflects several lion in 1994. The cellular industry is ex- monetary loss a carrier suffers, not the modifications that were suggested to panding by about 40 percent a year; ef- potential loss. First-time offenders of- the bill following substantial discus- forts to combat fraud are imperative to tentimes do not face any jail time, sions with various Members. However, ensure the integrity of our communica- which makes these cases unattractive it is identical to the so-called com- tions network. for prosecution. Carriers and law en- promise measure that has been dis- Cloning is more than an inconven- forcement are forced to choose between cussed with the authorizing as well as ience to the 36 million Americans who keeping the cloner on the tele- the appropriations committees in pre- currently use cellular phone services, communications network to rack up vious years and received widespread and an expense to wireless communica- high losses to ensure jail time, or stem- support. tion companies who pay for the fraudu- ming the losses sooner only to have the To reduce initial costs and allow lent calls. According to the Secret cloner back on the streets in days. The oversight of the effectiveness of the Service, which is the primary Federal penalty scheme should be revised to S2656 CONGRESSIONAL RECORD — SENATE March 20, 1997 track another indicator of cloning twice the value obtained by the offense, Moreover, according to the National fraud—the number of electronic serial whichever is greater, imprisonment for not Sheriffs’ Association, at least 25 numbers stolen. more than 20 years, or both.’’. States—some of which have not adopt- Cloning offenses are serious crimes, (c) DEFINITION OF SCANNING RECEIVER.— ed medical copayment reform on a Section 1029(e)(8) of title 18, United States and the penalties should reflect this. Code, is amended by inserting before the pe- statewide basis—have jail systems that We know that cloned phones are used riod at the end the following: ‘‘or any elec- impose a copayment. to facilitate other crimes—particularly tronic serial number, mobile identification In June, the National Commission on drug trafficking. Additionally, cloning number, personal identification number, or Correctional Health Care held a con- offenses are serious economic crimes in other identifier of any telecommunications ference that examined the statewide themselves that threaten the integrity service, equipment, or instrument’’. fee-for-service programs. At the con- of the public communications network. (d) EXCEPTION FOR CERTAIN TELECOMMUNI- ference, Dr. Ron Waldron of the Fed- CATIONS SERVICES PROVIDERS.—Section 1029 In August, two individuals in New York eral Bureau of Prisons provided a sur- of title 18, United States Code, is amended by vey of some of the States that have were arrested for allegedly possessing adding at the end the following: 80,000 electronic serial numbers. Each ‘‘(g) EXCEPTION FOR CERTAIN TELECOMMUNI- adopted inmate medical copayment of the 80,000 ESN’s could be implanted CATIONS SERVICES PROVIDERS.— programs and concluded that ‘‘Inmate into several cloned phones. I look for- ‘‘(1) DEFINITIONS.—In this subsection, the user fees programs appear to reduce ward to working with the U.S. Sen- term ‘telecommunications carrier’ has the utilization, and do generate modest tencing Commission to achieve a more same meaning as in section 3 of the Commu- revenues.’’ nications Act of 1934 (47 U.S.C. 153). Dr. Waldron reported that prison co- appropriate sentencing structure for ‘‘(2) PERMISSIBLE ACTIVITIES.—This section payment laws resulted in the reduction cloning fraud. does not prohibit any telecommunications of medical utilization of: between 16 The cellular phone protection initia- carrier, or an officer, agent, or employee of, tive will help to reduce telecommuni- and 29 percent in Florida; between 30 or a person under contract with a tele- and 50 percent in Kansas; 40 percent in cations fraud. In the process, other communications carrier, engaged in protect- Maryland; 50 percent in Nevada; and criminal activity will be made more ing any property or legal right of the tele- between 10 and 18 percent in Oklahoma. difficult to conduct—cloned phones, communications carrier, from sending Terry Stewart, director of the Arizona now a staple of criminal syndicates, through the mail, sending or carrying in Department of Corrections, notes that, would not be so readily available. I interstate or foreign commerce, having con- trol or custody of, or possessing, manufac- ‘‘Over the life of the [Arizona copay- urge my colleagues to support this leg- turing, assembling, or producing any other- ment] program, there has been an over- islation. wise unlawful— all reduction of about 31 percent in the Mr. President, I ask unanimous con- ‘‘(A) device-making equipment, scanning number of requests for health care sent that the text of the bill be printed receiver, or access device; or services. This strongly suggests that in the RECORD ‘‘(B) hardware or software used for— There being no objection, the bill was ‘‘(i) modifying or altering an electronic se- inmates are being more discreet about, and giving more considered thought to, ordered to be printed in the RECORD, as rial number; or their need for medical attention.’’ I follows: ‘‘(ii) altering or modifying a telecommuni- cations instrument so that the instrument will have his letter placed in the CON- S. 493 may be used to obtain unauthorized access GRESSIONAL RECORD. Be it enacted by the Senate and House of Rep- to telecommunications services.’’. Reducing frivolous medical visits resentatives of the United States of America in saves taxpayers money. A December 28, Congress assembled, By Mr. KYL (for himself, Mr. 1996, New York Post editorial, ‘‘Toward SECTION 1. SHORT TITLE. ABRAHAM, and Mr. REID): This Act may be cited as the ‘‘Cellular Healthier Prison Budgets,’’ which I will S. 494. A bill to combat the overutili- also include in the RECORD, reported Telephone Protection Act’’. zation of prison health care services SEC. 2. FRAUD AND RELATED ACTIVITY IN CON- that the copayment law in New Jersey NECTION WITH COUNTERFEIT AC- and control rising prisoner health care allowed the State to cut its prison CESS DEVICES. costs; to the Committee on the Judici- health care budget by $17 million. (a) UNLAWFUL ACTS.—Section 1029(a) of ary. As to generating revenue, Dr. title 18, United States Code, is amended— THE FEDERAL PRISON HEALTH CARE COPAYMENT Waldron reported that California col- (1) in paragraph (7), by striking ‘‘use of’’ ACT lects about $60,000 per month in pris- and inserting ‘‘access to’’; Mr. KYL. Mr. President. I introduce oner-copayment fees. In my home (2) by redesignating paragraph (9) as para- the Federal Prisoner Health Care Co- graph (10); and State of Arizona, the State has col- (3) by striking paragraph (8) and inserting payment Act, which would require Fed- lected about $400,000 since the incep- the following: eral prisoners to pay a nominal fee tion of the program in October 1994. ‘‘(8) knowingly and with intent to defraud when they initiate a visit for medical Not only are inmate copayment plans uses, produces, traffics in, has control or cus- attention. The fee would be deposited working well on the statewide level, tody of, or possesses a scanning receiver; in the Federal Crime Victims’ Fund. they are achieving success in jail sys- ‘‘(9) knowingly uses, produces, traffics in, Each time a prisoner pays to heal him- tems across the United States. In the has control or custody of, or possesses hard- self, he will be paying to heal a victim. January-February edition of Sheriff, ware or software that may be used for— Most working, law-abiding Ameri- the National Sheriffs’ Association ‘‘(A) modifying or copying an electronic se- cans are required to pay a copayment rial number; or President reported that copayment ‘‘(B) altering or modifying a telecommuni- fee when they seek medical care. It is plans—which, as mentioned above, are cations instrument so that the instrument time to impose this requirement on operational in jail systems in at least may be used to obtain unauthorized access Federal prisoners. 25 States—have: First, discouraged to telecommunications services; or’’. To date, at least 20 States—including overuse of service; and second, freed (b) PENALTIES.—Section 1029(c) of title 18, my home State of Arizona—have im- health care staff to provide better care United States Code, is amended to read as plemented statewide prisoner health to inmates who truly need medical at- follows: care copayment programs. In addition tention. Yavapai County sheriff, G.C. ‘‘(c) PENALTIES.—The punishment for an to Arizona, the following States have offense under subsection (a) or (b)(1) is— ‘‘Buck’’ Buchanan, in a letter that I ‘‘(1) in the case of an offense that does not enacted this reform: California, Colo- will include in the RECORD, writes: occur after a conviction for another offense rado, Florida, Georgia, Indiana, Kan- ‘‘Prior to the institution of [copayment under subsection (a) or (b)(1), or an attempt sas, Kentucky, Louisiana, Oklahoma, reform], many inmates in custody were to commit an offense punishable under sub- Maryland, Minnesota, Mississippi, Ne- taking advantage of the health care section (a) or (b)(1), a fine under this title or vada, Hew Hampshire, New Jersey, which, or course, must be provided to twice the value obtained by the offense, Utah, Virginia, Tennessee, and Wiscon- them. This could be construed as frivo- whichever is greater, imprisonment for not sin. Several other States are expected lous requests if you will, and took up more than 15 years, or both; and to soon institute a copayment system, ‘‘(2) in the case of an offense that occurs the valuable time of our health care after a conviction for another offense under including, Alaska, Connecticut, Maine, providers * * *. Since this policy has subsection (a) or (b)(1), or an attempt to Montana, Michigan, North Carolina, been in effect, we have realized a re- commit an offense punishable under sub- Oregon, South Carolina, Washington, duction in inmate requests for medical section (a) or (b)(1), a fine under this title or and Wyoming. services between 45 to 50 percent.’’ March 20, 1997 CONGRESSIONAL RECORD — SENATE S2657 The success of the prison and jail fee- SEC. 2. PRISONER COPAYMENTS FOR HEALTH cordance with paragraph (1), in accordance for-service initiatives should come as CARE SERVICES. with an installment payment plan, which no surprise. Common sense says that (a) IN GENERAL.—Chapter 303 of title 18, shall be established by the Director by regu- United States Code, is amended by adding at lation. inmates will be less likely to seek un- the end the following: necessary medical attention if they are ‘‘(e) NO REFUSAL OF TREATMENT FOR FINAN- ‘‘§ 4048. Prisoner copayments for health care CIAL REASONS.—Nothing in this section shall required to pick up part of the tab. services be construed to permit any refusal of treat- I believe that Congress should follow ‘‘(a) DEFINITIONS.—In this section— ment to a prisoner on the basis that— the lead of the States and provide the ‘‘(1) the term ‘account’ means the trust ‘‘(1) account of the prisoner is insolvent; or Federal Bureau of Prisons with the au- fund account (or institutional equivalent) of ‘‘(2) the prisoner is otherwise unable to pay thority to charge Federal inmates a a prisoner; a fee assessed under this section in accord- nominal fee for elective health care ‘‘(2) the term ‘Director’ means the Director ance with subsection (d)(1). visits. The Federal system is particu- of the Bureau of Prisons; ‘‘(f) USE OF AMOUNTS.—Any amounts col- larly ripe for reform. According to the ‘‘(3) the term ‘health care provider’ means lected by the Director under this section 1996 Corrections Yearbook, the system any person and who is licensed or certified shall be deposited in the Crime Victims’ spends more per inmate on health care under State law to provide health care serv- Fund established under section 1402 of the ices who is operating within the scope of Victims of Crime Act of 1984 (42 U.S.C. 10601). than any State except Vermont. Fed- such license; eral inmate health care totaled $327 ‘‘(g) REPORTS TO CONGRESS.—Not later than ‘‘(4) the term ‘health care visit’ means any 1 year after the date of enactment of the million in fiscal year 1996, up from $138 visit by a prisoner to an institutional or non- Federal Prisoner Health Care Copayment million in fiscal year 1990. Average cost institutional health care provider, if the Act and annually thereafter, the Director per inmate has increased over 60 per- visit is made at the request of the prisoner; shall submit to Congress a report, which cent during this period, from $2,204 to ‘‘(5) the term ‘prisoner’ means any person shall include— $3,549. subject to incarceration, detention, or ad- ‘‘(1) a description of the amounts collected The Prisoner Health Care Copayment mission to any facility who is accused of, under this section during the preceding 12- convicted of, sentenced for, or adjudicated month period; and Act provides that the Director of the delinquent for, violations of criminal law or Bureau of Prisons shall assess and col- ‘‘(2) an analysis of the effects of the imple- the terms and conditions of parole, proba- mentation of this section, if any, on the na- lect a fee of not less than $3 and not tion, pretrial release, or diversionary pro- ture and extent of health care visits by pris- more than $5 for each qualified health gram; and oners.’’. ‘‘(6) the term ‘qualified health care visit’ care visit. The term ‘‘qualified health (b) CLERICAL AMENDMENT.—The chapter means any health care visit except a health care visit’’ does not include any health analysis for chapter 303 of title 18, United care visit care visit that is: Conducted during the States Code, is amended by adding at the end ‘‘(A) that— intake process; an annual examination; the following: ‘‘(i) is conducted during the incarceration initiated by the health care staff of the intake process; ‘‘4048. Prisoner copayments for health care Bureau of Prisons; the direct result of ‘‘(ii) is an annual examination; services.’’. a referral made by a prison official; or ‘‘(iii) is determined by the health care pro- an emergency visit. Prisoners who are vider to be an emergency visit; ARIZONA DEPARTMENT OF CORRECTIONS, pregnant or determined to be seriously ‘‘(iv) is an immunization; Phoenix, AZ, March 7, 1997. mentally ill are exempted from the co- ‘‘(v) is initiated by the health care staff of Hon. JON KYL, payment requirement altogether. No the Bureau of Prisons; or U.S. Senate, Senate Hart Office Building, prisoner shall be denied treatment on ‘‘(vi) is the direct result of a referral made Washington, DC. by a prison official; or Re: Inmate Health Care—Fee for Service the basis of insolvency. ‘‘(B) by a prisoner who is— DEAR SENATOR KYL: On October 15, 1994, The act also gives the Director of the ‘‘(i) less than 18 years of age; Bureau of Prisons the authority to set the Arizona Department of Corrections ‘‘(ii) pregnant; or began its fee for service program for inmate by regulation a reasonable fee, not to ‘‘(iii) determined by the appropriate offi- health care. The program was intended to re- exceed $5, for prescriptions, emergency cial of the Bureau of Prisons to be seriously duce inmate abuse of the health care deliv- visits, and juvenile visits. And the leg- mentally ill, or permanently disabled. ery system, to place on the inmate some re- islation permits the Director to charge ‘‘(b) COPAYMENTS FOR HEALTH CARE SERV- sponsibility for his/her own health care, and an inmate’s account for medical treat- ICES.—The Director shall assess and collect a to offset the increasing costs of inmate fee in accordance with this section— health care. This program has proven itself ment for injuries an inmate inflicts on ‘‘(1) in an amount equal to not less than $3 himself or others. effective in accomplishing the purposes in- and not more than $5, for each qualified tended. As I mentioned above, all fees will be health care visit; deposited in the Federal Crime Vic- ‘‘(2) in an amount not to exceed $5, which There has been a noticeable decrease in the tims’ Fund. shall be established by the Director by regu- number of requests for health care services. lation, for— For example, upon implementation of the Before I conclude, I would like to program, and depending upon the facility, we thank the Arizona Department of Cor- ‘‘(A) each prescription medication provided to the prisoner by a health care provider; experienced an initial reduction of between rections for its assistance in helping 40% and 60% in the number health care re- me draft this reform. Additionally, I and ‘‘(B) each health care visit described in quests. Over the life of the program, there appreciate the assistance that Sheriff subparagraph (A)(iii) or (B)(i) of subsection has been an overall reduction of about 31% in Buchanan and his office provided me. (a)(6); and the number of requests for health care serv- I look forward to working with the ‘‘(3) in an amount established by the Direc- ices. This strongly suggests that inmates are Department of Justice, the Bureau of tor by regulation, for each health care visit being more discreet about, and giving more Prisons, and my colleagues on both occurring as a result of an injury inflicted on considered thought to, their need for medical attention. sides of the aisle, to implement a fee- a prisoner by another prisoner. ‘‘(c) RESPONSIBILITY FOR PAYMENT.—Each The program has also proven a great bene- for-medical-services program—a sen- fit to Arizona’s taxpayers. From October 15, sible and overdue reform—for Federal fee assessed under subsection (b) shall be col- lected by the Director from the account of— 1994 through December 31, 1996, the Arizona prisoners. ‘‘(1) the prisoner making the health care Department of Corrections has collected Mr. President, I ask unanimous con- visit or receiving the prescription medica- $392,843.59 for health care services provided sent that additional material be print- tion; or to its inmates. This money is returned to Ar- ed in the RECORD. ‘‘(2) in the case of a health care visit de- izona’s general fund, where it can be utilized There being no objection, the mate- scribed in subsection (b)(3), the prisoner who to fund other State programs. This means rial was ordered to be printed in the is determined by the Director to have in- that fewer taxpayer dollars are required to fund State programs. RECORD, as follows: flicted the injury. ‘‘(d) TIMING.—Each fee assessed under this In light of the results achieved by this pro- S. 494 section shall be collected from the appro- gram in Arizona, I highly recommend that Be it enacted by the Senate and House of Rep- priate account under subsection (c)— similar programs be adopted by prison and resentatives of the United States of America in ‘‘(1) on the date on which the qualified jail systems nationwide, and I support and Congress assembled, health care visit occurs; or greatly appreciate your efforts to this end. SECTION 1. SHORT TITLE. ‘‘(2) in the case of a prisoner whose account Sincerely, This Act may be cited as the ‘‘Federal balance is determined by the Director to be TERRY L. STEWART, Prisoner Health Care Copayment Act’’. insufficient for collection of the fee in ac- Director. S2658 CONGRESSIONAL RECORD — SENATE March 20, 1997

YAVAPAI COUNTY SHERIFF’S OFFICE, lowed such fees since 1995. In fact, the Ber- Sec. 205. International conference to Prescott, AZ, March 4, 1997. gen County jail charges inmates $10 per doc- strengthen the 1925 Geneva Pro- Senator JON KYL, tor visit. tocol. 2240 Rayburn House Office Building, Washing- State prison officials dismiss the ACLU’s Sec. 206. Restriction on use of funds for the ton, DC. concerns as ‘‘highly speculative.’’ Inmates Organization for the Prohibi- DEAR SENATOR KYL: As you have requested, diagnosed with chronic illnesses, the offi- tion of Chemical Weapons. a copy of the current Yavapai County Sher- cials point out, are not charged for all visits. Sec. 207. Enhancements to robust chemical iff’s Office Detention Services Procedure One diabetic inmate, interviewed by The and biological defenses. Manual with respect to Inmate Health Care New York Times, complained that the fee Sec. 208. Negative security assurances. Co-Payment policy, has been attached. This was a ‘‘burden’’ because it meant he could no policy is sanctioned under Arizona Revised longer buy ‘‘toothpaste and stuff.’’ He admit- Sec. 209. Riot control agents. Statute 31–151 and has been in existence ted, however, that he’d had to pay only SEC. 2. FINDINGS. since November 1995. ‘‘three or four times’’ since April 1. The Congress finds that— Prior to the institution of this policy, This isn’t exactly Black Hole of Calcutta (1) the United States eliminated its stock- many inmates in custody were taking advan- stuff. New Jersey appears to be making good pile of biological weapons pursuant to the tage of the health care which, of course, use of a sound prison-management tech- 1972 Biological Weapons Convention and has must be provided to them. This could be con- nique. pledged to destroy its entire inventory of strued as frivolous requests if you will, and chemical weapons by 2004, independent of the took up the valuable time of our health care By Mr. KYL (for himself, Mr. Chemical Weapons Convention entering into providers. Time was not being utilized to full LOTT, Mr. NICKLES, Mr. MACK, force; potential including any request for psycho- Mr. COVERDELL, Mr. HELMS, Mr. (2) the use of chemical or biological weap- logical analysis and treatment. SHELBY, and Mrs. HUTCHISON): ons in contravention of international law is Since this policy has been in effect, we S. 495. A bill to provide criminal and abhorrent and should trigger immediate and have realized a reduction in inmate requests effective sanctions; for medical services between 45% to 50%. civil penalties for the unlawful acquisi- tion, transfer, or use of any chemical (3) United Nations Security Council Reso- Consequently, when an inmate is given the lution 620, adopted on August 26, 1988, states choice of how to best spend his money, the weapon or biological weapon, and to re- the intention of the Security Council to con- preference is not for unnecessary medical duce the threat of acts of terrorism or sider immediately ‘‘appropriate and effec- care. Those in custody have nothing better armed aggression involving the use of tive’’ sanctions against any nation using to do than take advantage of the system for any such weapon against the United chemical and biological weapons in violation just a change in the daily routine. This has States, its citizens, or Armed Forces, of international law; ceased. There is no denial of medical serv- or those of any allied country, and for (4) the General Agreement on Tariffs and ices, it just becomes a matter of priority for other purposes. Trade recognizes that national security con- the inmate. cerns may serve as legitimate grounds for Over the past eleven months, in the special THE CHEMICAL AND BIOLOGICAL WEAPONS limiting trade; title XXI of the General account in which the co-payment fee is re- THREAT REDUCTION ACT OF 1997 Agreement on Tariffs and Trade states that tained, approximately $3500.00 has been Mr. KYL. Mr. President, I ask unani- ‘‘nothing in this Agreement shall be con- placed into deposit. Although this is not a mous consent that the text of the bill strued . . . to prevent any contracting party large amount of revenue, the savings which be printed in the RECORD. from taking any action which it considers have been noticed are that of a reduction in There being no objection, the bill was necessary for the protection of its essential staff time and an increase in the quality of security interests. . .’’; care the physician provides for this service ordered to be printed in the RECORD, as follows: (5) on September 30, 1993, the President de- delivery. One could only imagine the mag- clared by Executive Order No. 12868 a na- nitude of budget savings if a program such as S. 495 tional emergency to deal with ‘‘the unusual this were initiated on the federal inmate Be it enacted by the Senate and House of Rep- and extraordinary threat to the national se- population. resentatives of the United States of America in curity, foreign policy, and economy of the In Yavapai County this policy has proven Congress assembled, United States’’ posed by the proliferation of to be a success and it is through this success SECTION 1. SHORT TITLE; TABLE OF CONTENTS. nuclear, biological and chemical weapons, that you have my full support in this pro- (a) SHORT TITLE.—This Act may be cited as and of the means for delivering such weap- posed legislation. the ‘‘Chemical and Biological Weapons ons; In matters of mutual concern I remain, Threat Reduction Act of 1997’’. (6) Russia has not implemented the 1990 G.C. ‘‘BUCK’’ BUCHANAN, (b) TABLE OF CONTENTS.—The table of con- United States-Russian Bilateral Agreement Yavapai County Sheriff. tents for this Act is as follows: on Destruction and Non-Production of Chem- ical Weapons and on Measures to Facilitate [From the New York Post, Dec. 28, 1996] Sec. 1. Short title; table of contents. Sec. 2. Findings. the Multilateral Convention on Banning TOWARD HEALTHIER PRISON BUDGETS Sec. 3. Policy. Chemical Weapons, known as the ‘‘BDA’’, Since April, New Jersey has experienced a Sec. 4. Definitions. nor has the United States and Russia re- 60 percent drop in the number of prison in- TITLE I—PENALTIES FOR UNLAWFUL solved, to the satisfaction of the United mates seeking medical attention. Have pris- ACTIVITIES WITHIN THE UNITED States, the outstanding compliance issues oners suddenly begun pursuing a healthier STATES OR BY UNITED STATES NA- under the Memorandum of Understanding lifestyle? Perhaps—but we prefer to think it TIONALS ABROAD Between the United States of America and has something to do with the fact that in- the Government of the Union of Soviet So- Subtitle A—Criminal Penalties mates must now ante up $5 every time they cialist Republics Regarding a Bilateral Ver- demand to see a doctor. Sec. 101. Criminal provisions. ification Experiment and Data Exchange Re- New Jersey prison officials are extremely Subtitle B—Civil Penalties lated To Prohibition on Chemical Weapons, pleased with the new system. The fee deters Sec. 111. Designation of lead agency. known as the ‘‘1989 Wyoming MOU’’; prisoners with vague or minor complaints or Sec. 112. Prohibitions on chemical and bio- (7) the Intelligence Community has stated whose primary motivation appears to be sim- logical weapons-related activi- that a number of countries, among them ply, to get out of their cells for a few hours. ties. China, Egypt, Iran, Iraq, Libya, North Korea, Result: The state has been able to cut its Sec. 113. Civil penalties. Syria, and Russia, possess chemical and bio- prison health-care budget by $17 million. Sec. 114. Regulatory authority; application logical weapons and the means to deliver Fewer inmates being escorted to and from of other laws. them; the infirmary also enhances security within Subtitle C—Other Penalties (8) four countries in the Middle East—Iran, prison walls. Iraq, Libya, and Syria—have, as a national Predictably, the American Civil Liberties Sec. 121. Revocations of export privileges. policy, supported international terrorism; Union (ACLU) isn’t pleased. It claims the $5 Sec. 122. Suspension of patent rights. (9) chemical and biological weapons have fee—equal to about two days’ prison wages— TITLE II—FOREIGN RELATIONS AND been used by states in the past for intimida- is preventing some chronically ill inmates DEFENSE-RELATED PROVISIONS tion and military aggression, most recently from seeking proper care. Naturally, a law- Sec. 201. Sanctions for use of chemical or bi- during the Iran-Iraq war and by Iraq against suit has been filed. In May, a judge ruled in ological weapons. its Kurdish minority; favor of the prison system (the decision is Sec. 202. Continuation and enhancement of (10) the grave new threat of chemical and being appealed). multilateral control regimes. biological terrorism has been demonstrated Charging prisoners a fee for medical serv- Sec. 203. Criteria for United States assist- by the 1995 nerve gas attack on the Tokyo ices, however, is nothing new, nor is it ance to Russia. subway by the Japanese cult Aum unique to New Jersey. Prisons and jails in at Sec. 204. Report on the state of chemical and Shinrikyo; least 18 states now charge for health care, up biological weapons prolifera- (11) the urgent need to improve domestic from just nine in 1995. New Jersey has al- tion. preparedness to protect against chemical and March 20, 1997 CONGRESSIONAL RECORD — SENATE S2659 biological threats was underscored by enact- (3) CHEMICAL WEAPON.—The term ‘‘chemi- TITLE I—PENALTIES FOR UNLAWFUL AC- ment of the 1997 Defense Against Weapons of cal weapon’’ means the following, together TIVITIES WITHIN THE UNITED STATES Mass Destruction Act; or separately: OR BY UNITED STATES NATIONALS (12) the Department of Defense, in light of (A) Any of the following chemical agents: ABROAD growing chemical and biological threats in tabun, Sarin, Soman, GF, VX, sulfur mus- Subtitle A—Criminal Penalties regions of key concern, including Northeast tard, nitrogen mustard, phosgene oxime, lew- SEC. 101. CRIMINAL PROVISIONS. Asia, and the Middle East, has stated that isite, phenyldichloroarsine, ethyldi- (a) IN GENERAL.—Part I of title 18, United United States forces must be properly chloroarsine, methyldichloroarsine, phos- States Code, is amended by inserting after trained and equipped for all missions, includ- gene, diphosgene, hydrogen cyanide, cyan- chapter 11A the following new chapter: ing those in which opponents might threaten ogen chloride, and arsine. use of chemical or biological weapons; and (B) Any of the 54 chemicals other than a ‘‘CHAPTER 11B—CHEMICAL AND BIOLOGICAL WEAPONS (13) Australia Group controls on the ex- riot control agent that is controlled by the ports of chemical and biological agents, and Australia Group as of the date of the enact- ‘‘Sec. related equipment, and the Missile Tech- ment of this Act. ‘‘229. Penalties and prohibitions with respect nology Control Regime, together provide an (C) Any munition or device specifically de- to chemical and biological indispensable foundation for international signed to cause death or other harm through weapons. and national efforts to curb the spread of the toxic properties of a chemical weapon ‘‘229A. Seizure, forfeiture, and destruction. ‘‘229B. Other prohibitions. chemical and biological weapons, and their specified in subparagraph (A) or (B), which ‘‘229C. Injunctions. delivery means. would be released as a result of the employ- ‘‘229D. Requests for military assistance to SEC. 3. POLICY. ment of such munition or device. enforce prohibition in certain It should be the policy of the United States (D) Any equipment specifically designed to take all appropriate measures to— emergencies. for use directly in connection with the em- ‘‘229E. Definitions. (1) prevent and deter the threat or use of ployment of munitions or devices specified chemical and biological weapons against the in this section. ‘‘§ 229. Penalties and prohibitions with re- citizens, Armed Forces, and territory of the (4) KNOWINGLY.—The term ‘‘knowingly’’ is spect to chemical and biological weapons United States and its allies, and to protect used within the meaning of ‘‘knows’’ as that ‘‘(a) IN GENERAL.—Except as provided in against, and manage the consequences of, term is defined in section 104 of the Foreign subsection (c), whoever knowingly develops, such use should it occur; Corrupt Practices Act of 1977 (15 U.S.C. 78dd– produces, otherwise acquires, receives from (2) discourage the proliferation of chemical 2) and includes situations in which a person any person located outside the territory of and biological weapons, their means of deliv- has reason to know. the United States, stockpiles, retains, di- ery, and related equipment, material, and (5) NATIONAL OF THE UNITED STATES.—The rectly or indirectly transfers, uses, owns, or technology; term ‘‘national of the United States’’ has the possesses any chemical weapon or any bio- (3) prohibit within the United States the same meaning given such term in section logical weapon, or knowingly assists, encour- development, production, acquisition, stock- 101(a)(22) of the Immigration and Nationality ages or induces, in any way, any person to do piling, and transfer to third parties of chemi- Act (8 U.S.C. 1101(a)(22)). so, or attempt or conspire to do so, shall be cal or biological weapons, their precursors (6) PERSON.—The term ‘‘person’’ means any fined under this title or imprisoned for life and related technology; and individual, corporation, partnership, firm, or any term of years or both, unless— (4) impose unilateral sanctions, and seek association, or other legal entity. ‘‘(1) the chemical weapon or biological immediately international sanctions, (7) PURPOSE NOT PROHIBITED UNDER THIS weapon is intended for a purpose not prohib- against any nation using chemical and bio- ited under this Act; ACT.—The term ‘‘purpose not prohibited logical weapons in violation of international under this Act’’ means— ‘‘(2) the types and quantities of chemical law. (A) any industrial, agricultural, research, weapons or biological weapons are strictly SEC. 4. DEFINITIONS. medical, pharmaceutical, or other peaceful limited to those that can be justified for In this Act: purpose; such purposes; and (1) AUSTRALIA GROUP.—The term ‘‘Aus- (B) any protective purpose, namely any ‘‘(3) the amount of such chemical weapons tralia Group’’ refers to the informal forum of or biological weapons per person at any purpose directly related to protection countries, formed in 1984 and chaired by Aus- given time does not exceed a quantity that against a chemical or biological weapon; tralia, whose goal is to discourage and im- under the circumstances is inconsistent with (C) any military purpose that is not con- pede chemical and biological weapons pro- the purposes not prohibited under this Act. nected with the use of a chemical or biologi- liferation by harmonizing national export ‘‘(b) DEATH PENALTY.—Any person who cal weapon or that is not dependent on the controls on precursor chemicals for chemical knowingly uses chemical or biological weap- use of the toxic properties of the chemical or weapons, biological weapons pathogens, and ons in violation of subsection (a) and by biological weapon to cause death or other dual-use equipment, sharing information on whose action the death of another person is harm; or target countries, and seeking other ways to the result shall be punished by death or im- (D) any law enforcement purpose, includ- curb the use of chemical weapons and bio- prisoned for life. ing any domestic riot control purpose. logical weapons. ‘‘(c) EXCLUSION.— (8) RIOT CONTROL AGENT.—The term ‘‘riot (2) BIOLOGICAL WEAPON.—The term ‘‘bio- ‘‘(1) IN GENERAL.—Subsection (a) does not logical weapon’’ means the following, to- control agent’’ means any substance, includ- apply to the retention, ownership, or posses- gether or separately: ing diphenylchloroarsine, diphenyl- sion of a chemical weapon or a biological (A) Any micro-organism (including bac- cyanoarsine, adamsite, chloroacetophenone, weapon by an agency of the United States or teria, viruses, fungi, rickettsiae or protozoa), chloropicrin, bromobenzyl cyanide, 0- a person described in paragraph (2) pending pathogen, or infectious substance, or any chlorobenzylidene malononitrile, or 3- destruction of the weapon. naturally occurring, bio-engineered or syn- Quinuclidinyl benzilate, that is designed or ‘‘(2) COVERED PERSONS.—A person referred thesized component of any such micro-orga- used to produce rapidly in humans any non- to in paragraph (1) is a member of the Armed nism, pathogen, or infectious substance, lethal sensory irritation or disabling phys- Forces of the United States or any other per- whatever its origin or method of production, ical effect that disappears within a short son if the person is authorized by the head of capable of causing— time following termination of exposure. an agency of the United States to retain, (i) death, disease, or other biological mal- (9) UNITED STATES.—The term ‘‘United own, or possess the chemical or biological function in a human, an animal, a plant, or States’’ means the several States of the weapon. another living organism; United States, the District of Columbia, and ‘‘(d) JURISDICTION.—Conduct prohibited by (ii) deterioration of food, water, equip- the commonwealths, territories, and posses- subsection (a) is within the jurisdiction of ment, supplies, or materials of any kind; or sions of the United States and includes all the United States if the prohibited conduct— (iii) deleterious alteration of the environ- places under the jurisdiction or control of ‘‘(1) takes place in the United States; or ment. the United States, including— ‘‘(2) takes place outside of the United (B) Any munition or device specifically de- (A) any of the places within the provisions States and is committed by a national of the signed to cause death or other harm through of section 101(41) of the Federal Aviation Act United States. the toxic properties of those biological weap- of 1958, as amended (49 U.S.C. App. sec. ‘‘(e) REIMBURSEMENT OF COSTS.—The court ons specified in subparagraph (A), which 1301(41)); shall order any person convicted of an of- would be released as a result of the employ- (B) any public aircraft or civil aircraft of fense under this section to reimburse the ment of such munition or device. the United States, as such terms are defined United States for any expenses incurred by (C) Any equipment specifically designed in sections 101 (36) and (18) of the Federal the United States incident to the seizure, for use directly in connection with the em- Aviation Act of 1958, as amended (49 U.S.C. storage, handling, transportation, and de- ployment of munitions or devices specified App. secs. 1301(36) and 1301(18)); and struction or other disposition of any prop- in this section. (C) any vessel of the United States, as such erty that was seized in connection with an (D) Any living organism specifically de- term is defined in section 3(b) of the Mari- investigation of the commission of the of- signed to carry a biological weapon specified time Drug Enforcement Act, as amended (46 fense by that person. A person ordered to re- in subparagraph (A) to a host. U.S.C., App. sec. 1903(b)). imburse the United States for expenses S2660 CONGRESSIONAL RECORD — SENATE March 20, 1997 under this subsection shall be jointly and ‘‘(1) takes place in the United States; or through the toxic properties of a chemical severally liable for such expenses with each ‘‘(2) takes place outside of the United weapon specified in subparagraph (A) or (B), other person, if any, who is ordered under States and is committed by a national of the which would be released as a result of the this subsection to reimburse the United United States. employment of such munition or device. States for the same expenses. ‘‘§ 229C. Injunctions ‘‘(D) Any equipment specifically designed for use directly in connection with the em- ‘‘§ 229A. Seizure, forfeiture, and destruction ‘‘The United States may obtain in a civil ployment of munitions or devices specified ‘‘(a) SEIZURE.— action an injunction against— in this section. ‘‘(1) SEIZURES ON WARRANTS.—The Attorney ‘‘(1) the conduct prohibited under section ‘‘(4) KNOWINGLY.—The term ‘knowingly’ is General may request the issuance, in the 229 of this title; or used within the meaning of ‘knows’ as that same manner as provided for a search war- ‘‘(2) the preparation or solicitation to en- term is defined in section 104 of the Foreign rant, of a warrant authorizing the seizure of gage in conduct prohibited under section 229 Corrupt Practices Act of 1977 (15 U.S.C. 78dd– any chemical weapon or any biological weap- of this title. 2) and includes situations in which a person on that is of a type or quantity that, under ‘‘§ 229D. Requests for military assistance to has reason to know. the circumstances, is inconsistent with the enforce prohibition in certain emergencies ‘‘(5) NATIONAL OF THE UNITED STATES.—The purposes not prohibited under this Act. ‘‘The Attorney General may request the term ‘national of the United States’ has the ‘‘(2) WARRANTLESS SEIZURES.—In exigent Secretary of Defense to provide assistance same meaning given such term in section circumstances, seizure and destruction of under section 382 of title 10 in support of De- 101(a)(22) of the Immigration and Nationality any such chemical weapon or biological partment of Justice activities relating to the Act (8 U.S.C. 1101(a)(22)). weapon described in paragraph (1) may be enforcement of section 229 of this title in an ‘‘(6) PERSON.—The term ‘person’ means any made by the Attorney General upon probable emergency situation involving a biological individual, corporation, partnership, firm, cause without the necessity for a warrant. weapon or chemical weapon. The authority association, or other legal entity. ‘‘(b) PROCEDURE FOR FORFEITURE AND DE- to make such a request may be exercised by ‘‘(7) PURPOSE NOT PROHIBITED UNDER THE STRUCTION.— another official of the Department of Justice ACT.—The term ‘purpose not prohibited ‘‘(1) IN GENERAL.—Except as provided in under this Act’ means— subsection (a)(2), property seized pursuant to in accordance with section 382(f)(2) of title ‘‘(A) any industrial, agricultural, research, subsection (a) shall be forfeited to the United 10. ‘‘§ 229E. Definitions medical, pharmaceutical, or other peaceful States after notice to potential claimants purpose; and an opportunity for a hearing. ‘‘In this chapter: ‘‘(B) any protective purpose, namely any ‘‘(2) BURDEN OF PERSUASION.—At such a ‘‘(1) AUSTRALIA GROUP.—The term ‘Aus- purpose directly related to protection hearing, the United States shall bear the tralia Group’ refers to the informal forum of against a chemical or biological weapon; burden of persuasion by a preponderance of countries, formed in 1984 and chaired by Aus- ‘‘(C) any military purpose that is not con- the evidence. tralia, whose goal is to discourage and im- nected with the use of a chemical or biologi- ‘‘(3) PROCEDURES.—The provisions of chap- pede chemical and biological weapons pro- cal weapon or that is not dependent on the ter 46 of this title relating to civil forfeitures liferation by harmonizing national export use of the toxic properties of the chemical or shall apply to a seizure or forfeiture under controls on precursor chemicals for chemical biological weapon to cause death or other this section except to the extent (if any) that weapons, biological weapons pathogens, and harm; or such provisions are inconsistent with this dual-use equipment, sharing information on ‘‘(D) any law enforcement purpose, includ- section. target countries, and seeking other ways to ing any domestic riot control purpose. ‘‘(4) DESTRUCTION OR OTHER DISPOSITION.— curb the use of chemical and biological ‘‘(8) RIOT CONTROL AGENT.—The term ‘riot The Attorney General shall provide for the weapons. control agent’ means any substance, includ- destruction or other appropriate disposition ‘‘(2) BIOLOGICAL WEAPON.—The term ‘bio- ing diphenylchloroarsine, of any chemical or biological weapon seized logical weapon’ means the following, to- diphenylcyanoarsine, adamsite, and forfeited pursuant to this section. gether or separately: chloroacetophenone, chloropicrin, ‘‘(c) OTHER SEIZURE, FORFEITURE, AND DE- ‘‘(A) Any micro-organism (including bac- bromobenzyl cyanide, 0-chlorobenzylidene STRUCTION.— teria, viruses, fungi, rickettsiae or protozoa), malononitrile, or 3-Quinuclidinyl benzilate ‘‘(1) SEIZURES ON WARRANT.—The Attorney pathogen, or infectious substance, or any that is designed or used to produce rapidly in General may request the issuance, in the naturally occurring, bio-engineered or syn- humans any nonlethal sensory irritation or same manner as provided for a search war- thesized component of any such micro-orga- disabling physical effect that disappears rant, of a warrant authorizing the seizure of nism, pathogen, or infectious substance, within a short time following termination of any chemical weapon or biological weapon whatever its origin or method of production, exposure. that exists by reason of conduct prohibited capable of causing— ‘‘(9) TERRORISM.—The term ‘terrorism’ under section 229 of this title. ‘‘(i) death, disease, or other biological mal- means activities that— ‘‘(2) WARRANTLESS SEIZURES.—In exigent function in a human, an animal, a plant, or ‘‘(A) involve violent acts or acts dangerous circumstances, seizure and destruction of another living organism; to human life that are a violation of the any such chemical weapon or biological ‘‘(ii) deterioration of food, water, equip- criminal laws of the United States or of any weapon described in paragraph (1) may be ment, supplies, or materials of any kind; or State, or that would be a criminal violation made by the Attorney General upon probable ‘‘(iii) deleterious alteration of the environ- if committed within the jurisdiction of the cause without the necessity for a warrant. ment. United States or of any State; and ‘‘(3) FORFEITURE AND DESTRUCTION.—Prop- ‘‘(B) Any munition or device specifically ‘‘(B) appear to be intended— erty seized pursuant to this subsection shall designed to cause death or other harm ‘‘(i) to intimidate or coerce a civilian popu- be summarily forfeited (within the meaning through the toxic properties of those biologi- lation; of section 609(b) of the Tariff Act of 1930) to cal weapons specified in subparagraph (A), ‘‘(ii) to influence the policy of a govern- the United States and destroyed. which would be released as a result of the ment by intimidation or coercion; or ‘‘(d) ASSISTANCE.—The Attorney General employment of such munition or device. ‘‘(iii) to affect the conduct of a government may request the head of any agency of the ‘‘(C) Any equipment specifically designed by assassination or kidnapping. United States to assist in the handling, stor- for use directly in connection with the em- ‘‘(10) UNITED STATES.—The term ‘United age, transportation, or destruction of prop- ployment of munitions or devices specified States’ means the several States of the Unit- erty seized under this section. in this section. ed States, the District of Columbia, and the ‘‘(e) OWNER OR POSSESSOR LIABILITY.—The ‘‘(D) Any living organism specifically de- commonwealths, territories, and possessions owner or possessor of any property seized signed to carry a biological weapon specified of the United States and includes all places under this section shall be jointly and sever- in subparagraph (A) to a host. under the jurisdiction or control of the Unit- ally liable to the United States in an action ‘‘(3) CHEMICAL WEAPON.—The term ‘chemi- ed States, including— for money damages for any expenses in- cal weapon’ means the following, together or ‘‘(A) any of the places within the provi- curred by the United States incident to the separately: sions of section 40102(41) of title 49, United seizure, including any expenses relating to ‘‘(A) Any of the following chemical agents: States Code; the handling, storage, transportation, de- tabun, Sarin, Soman, GF, VX, sulfur mus- ‘‘(B) any civil aircraft or public aircraft of struction or other disposition of the seized tard, nitrogen mustard, phosgene oxime, lew- the United States, as such terms are defined property. isite, phenyldichloroarsine, in paragraphs (16) and (37), respectively, of ‘‘§ 229B. Other prohibitions ethyldichloroarsine, methyldichloroarsine, section 40102 of title 49, United States Code; ‘‘(a) IN GENERAL.—Whoever knowingly uses phosgene, diphosgene, hydrogen cyanide, cy- and riot control agents as an act of terrorism, or anogen chloride, and arsine. ‘‘(C) any vessel of the United States, as knowingly assists any person to do so, shall ‘‘(B) Any of the 54 chemicals, other than a such term is defined in section 3(b) of the be fined under this title or imprisoned for a riot control agent, controlled by the Aus- Maritime Drug Law Enforcement Act (46 term of not more than 10 years, or both. tralia Group as of the date of the enactment U.S.C. App. 1903(b)).’’. ‘‘(b) JURISDICTION.—Conduct prohibited by of this Act. (b) CONFORMING AMENDMENT.—The table of this section is within the jurisdiction of the ‘‘(C) Any munition or device specifically chapters for part I of title 18, United States United States if the prohibited conduct— designed to cause death or other harm Code, is amended— March 20, 1997 CONGRESSIONAL RECORD — SENATE S2661

(1) by striking the item relating to chapter (2) CONDUCT OF HEARING.—Any hearing so ferred upon them by other laws of the United 10; and requested shall be conducted before an ad- States. (2) by inserting after the item for chapter ministrative law judge. The hearing shall be Subtitle C—Other Penalties 11A the following new item: conducted in accordance with the require- SEC. 121. REVOCATIONS OF EXPORT PRIVILEGES. ments of section 554 of title 5, United States ‘‘11B. Chemical and Biological Weap- (a) IN GENERAL.—If the President deter- ons ...... 229’’. Code. If no hearing is so requested, the At- mines, after notice and an opportunity for a torney General’s imposition of the order (c) REPEALS.—The following provisions of hearing in accordance with section 554 of law are repealed: shall constitute a final and unappealable title 5, United States Code, that any person (1) Chapter 10 of title 18, United States order. within the United States, or any national of SSUANCE OF ORDERS.—If the administra- Code, relating to biological weapons. (3) I the United States located outside the United tive law judge determines, upon the prepon- (2) Section 2332c of title 18, United States States, has committed any violation of sec- derance of the evidence received, that a per- Code, relating to chemical weapons. tion 112, the President may issue an order for son named in the complaint has violated sec- (3) In the table of sections for chapter 113B the suspension or revocation of the author- tion 102, the administrative law judge shall of title 18, United States Code, the item re- ity of the person to export from the United state his findings of fact and issue and cause lating to section 2332c. States any goods or technology (as such to be served on such person an order de- Subtitle B—Civil Penalties terms are defined in section 16 of the Export scribed in subsection (a). SEC. 111. DESIGNATION OF LEAD AGENCY. Administration Act of 1979 (50 U.S.C. app. (4) FACTORS FOR DETERMINATION OF PEN- The President shall designate the Federal 2415)). ALTY AMOUNTS.—In determining the amount Bureau of Investigation as the agency pri- (b) REPEAL.—Section 11C of the Export Ad- of any civil penalty, the administrative law ministration Act of 1979 (50 U.S.C. app. marily responsible for implementing the pro- judge shall take into account the nature, cir- visions of this subtitle (in this subtitle re- 2410c), relating to chemical and biological cumstances, extent, and gravity of the viola- weapons proliferation sanctions, is repealed. ferred to as the ‘‘Lead Agency’’). tion or violations and, with respect to the vi- SEC. 122. SUSPENSION OF PATENT RIGHTS. SEC. 112. PROHIBITIONS ON CHEMICAL AND BIO- olator, the ability to pay, effect on ability to (a) SUSPENSION.—The term of any patent LOGICAL WEAPONS-RELATED AC- continue to do business, any history of prior TIVITIES. granted pursuant to title 35, United States such violations, the degree of culpability, (a) CHEMICAL AND BIOLOGICAL WEAPONS AC- Code, held by any person, including any sub- the existence of an internal compliance pro- TIVITIES.—Except as provided in subsection sidiary of such person, who knowingly vio- gram, and such other matters as justice may (b), it shall be unlawful for any person lo- lates any provision of section 112 of this Act require. cated in the United States, or any national shall be suspended for a period of three (c) ADMINISTRATIVE APPELLATE REVIEW.— of the United States located outside the The decision and order of an administrative years. FFECT ON PATENT RIGHTS.— United States, to develop, produce, otherwise law judge shall become the final agency deci- (b) E acquire, receive from any person located out- sion and order of the head of the Lead Agen- (1) PROHIBITION.—No rights under title 35, side the territory of the United States, cy unless, within 30 days, the head of the United States Code, shall be derived from stockpile, retain, directly or indirectly Lead Agency modifies or vacates the deci- any patent described in subsection (a) during transfer, use, own, or possess any chemical sion and order, with or without conditions, the period of any such suspension. weapon or any biological weapon, or to as- in which case the decision and order of the (2) NO EXTENSION OF PATENT TERM.—Any sist, encourage or induce, in any way, any head of the Lead Agency shall become a final suspension of patent rights imposed pursu- person to do so, or attempt or conspire to do order under this subsection. The head of the ant to the provisions of this section shall not so, unless— Lead Agency may not delegate his authority extend the term of any such patent. (1) the chemical weapon or biological under this paragraph. (c) PROCEDURES.— weapon is intended for a purpose not prohib- (d) OFFSETS.—The amount of the civil pen- (1) DETERMINATION BY THE COMMISSIONER.— ited under this Act; alty under a final order of the Lead Agency Within 30 days after the date of enactment of (2) the types and quantities of the chemical may be deducted from any sums owed by the this Act, the Commissioner of Patents, after weapon or biological weapon are strictly United States to the person. a determination has been made regarding limited to those that can be justified for (e) JUDICIAL REVIEW.—A person adversely which person or persons have violated sec- such purpose; and affected by a final order respecting an assess- tion 112 of this Act, shall recommend the (3) the amount of the chemical weapon or ment may, within 30 days after the date the suspension of the appropriate patents. biological weapon per person at any given final order is issued, file a petition in the (2) NOTICES OF VIOLATIONS.—The Commis- time does not exceed a quantity that under Court of Appeals for the appropriate circuit sioner shall notify the holder of such patent the circumstances is inconsistent with the for review of the order. within 30 days after the date of such deter- purposes not prohibited under this Act. (f) ENFORCEMENT OF ORDERS.—If a person mination and shall publish in the Federal (b) EXCLUSION.— fails to comply with a final order issued Register a notice of such determination, to- (1) IN GENERAL.—Subsection (a) does not under this subsection against the person and gether with the factual and legal basis for apply to the retention, ownership, or posses- if the person does not file a petition for judi- such determination. sion of a chemical weapon or a biological cial review under subsection (e), the Attor- (3) HEARINGS.—Any interested person may weapon by an agency of the United States or ney General shall file a suit to seek compli- request, within the 60-day period beginning a person described in paragraph (2) pending ance with the order in any appropriate dis- on the date of publication of a determina- destruction of the weapon. trict court of the United States, plus inter- tion, that the Commissioner making the de- (2) COVERED PERSONS.—A person referred to est at currently prevailing rates calculated termination hold a hearing on such deter- in paragraph (1) is a member of the Armed from the date of expiration of the 30-day pe- mination. Such a hearing shall be an infor- Forces of the United States or any other per- riod referred to in subsection (e) or the date mal hearing which is not subject to section son if the person is authorized by the head of of such final judgment, as the case may be. 554, 556, or 557 of title 5, United States Code. an agency of the United States to retain, In any such suit, the validity and appro- If such a request is made within such period, own, or possess the chemical weapon. priateness of the final order shall not be sub- the Commissioner shall hold such hearing (c) JURISDICTION.—Conduct prohibited by ject to review. not later than 30 days after the date of the subsection (a) is within the jurisdiction of SEC. 114. REGULATORY AUTHORITY; APPLICA- request, or at the request of the person mak- the United States if the prohibited conduct— TION OF OTHER LAWS. ing the request, not later than 60 days after (1) takes place in the United States; or (a) REGULATIONS.—The Lead Agency may such date. The Commissioner who is holding (2) takes place outside of the United States issue such regulations as are necessary to the hearing shall provide notice of the hear- and is committed by a national of the United implement and enforce this subtitle and to ing to the person involved and to any inter- States. amend or revise such regulations as nec- ested person and provide the owner of record SEC. 113. CIVIL PENALTIES. essary if such Executive orders, directives, of the patent and any interested person an (a) PENALTY AMOUNT.—Any person that is or regulations do not require any person to opportunity to participate in the hearing. determined, in accordance with subsection submit information or data on any plant (4) FINAL DETERMINATIONS.—Within 30 days (b), to have violated section 112(a) of this Act site, plant, chemical weapon, or biological after the completion of the hearing, the shall be required by order to pay a civil pen- weapon that such person produces, processes, Commissioner shall affirm or revise the de- alty in an amount not to exceed $100,000 for or consumes for purposes not prohibited by termination that was the subject of the hear- each such violation. this Act. ing and shall publish such affirmation or re- (b) HEARING.— (b) ENFORCEMENT.—The Lead Agency may vision in the Federal Register. (1) IN GENERAL.—Before imposing an order designate its officers or employees to con- (d) FEES.—The Commissioner may estab- described in subsection (a) against a person duct investigations pursuant to this Act. In lish such fees as are appropriate to cover the under this subsection for a violation of sec- conducting such investigations, those offi- costs of carrying out his duties and functions tion 112(a), the head of the Lead Agency cers or employees may, to the extent nec- under this section. shall provide the person or entity with no- essary or appropriate for the enforcement of (e) CERTIFICATE OF SUSPENSION.—The Com- tice and, upon request made within 15 days this subtitle, or for the imposition of any missioner shall make the determination that of the date of the notice, a hearing respect- penalty or liability arising under this sub- a patent is suspended and that the require- ing the violation. title, exercise such authorities as are con- ments of subsection (c) have been complied S2662 CONGRESSIONAL RECORD — SENATE March 20, 1997

with. If the Commissioner determines that ‘‘(2) ARMS SALES.—The United States Gov- ment of that country to engage in foreign air the patent is suspended, the Commissioner ernment shall not sell any item on the Unit- transportation to or from the United States. shall issue to the owner of record of the pat- ed States Munitions List and shall terminate ‘‘(C) EXCEPTION.—The Secretary of Trans- ent a certificate of suspension, under seal, sales to that country under this Act of any portation may provide for such exceptions stating the length of the suspension, and defense articles, defense services, or design from the sanction contained in subparagraph identifying the product and the statute and construction services. Licenses shall not (A) as the Secretary considers necessary to under which regulatory review occurred. be issued for the export to the sanctioned provide for emergencies in which the safety Such certificate shall be recorded in the offi- country of any item on the United States of an aircraft or its crew or passengers is cial file of the patent and shall be considered Munitions List, or for commercial satellites. threatened. as part of the original patent. The Commis- ‘‘(3) ARMS SALE FINANCING.—The United ‘‘(D) DEFINITIONS.—For purposes of this sioner shall publish in the Official Gazette of States Government shall terminate all for- paragraph, the terms ‘aircraft’, ‘air transpor- the Patent and Trademark Office a notice of eign military financing under this Act. tation’, and ‘foreign air carrier’ have the such suspension. ‘‘(4) DENIAL OF UNITED STATES GOVERNMENT meanings given those terms in section 40102 TITLE II—FOREIGN RELATIONS AND CREDIT OR OTHER FINANCIAL ASSISTANCE.—The of title 49, United States Code. DEFENSE-RELATED PROVISIONS United States Government shall deny any ‘‘(10) DIPLOMATIC RELATIONS.—The Presi- credit, credit guarantees, or other financial SEC. 201. SANCTIONS FOR USE OF CHEMICAL OR dent shall use his constitutional authorities BIOLOGICAL WEAPONS. assistance by any department, agency, or in- to downgrade or suspend diplomatic privi- (a) IN GENERAL.—The Arms Export Control strumentality of the United States Govern- leges between the United States and that Act (22 U.S.C. 2751 et seq.) is amended by ment, including the Export-Import Bank of country. striking chapter 8 and inserting the follow- the United States. ‘‘(b) BLOCKING OF ASSETS.—Upon making a ing: ‘‘(5) EXPORT CONTROLS.—The authorities of determination under section 82, the Presi- section 6 of the Export Administration Act dent shall take all steps necessary to block ‘‘CHAPTER 8—SANCTIONS AGAINST USE of 1979 shall be used to prohibit the export of OF CHEMICAL OR BIOLOGICAL WEAPONS any transactions in any property subject to any goods or technology on that part of the the jurisdiction of the United States in ‘‘SEC. 81. PURPOSE. control list established under section 5(c)(1) which the foreign country or any national ‘‘The purpose of this chapter is— of that Act, and all other goods and tech- ‘‘(1) to provide for the imposition of sanc- thereof has any interest whatsoever, for the nology under this Act (excluding food and purpose of compensating the victims of the tions against any foreign government— other agricultural commodities and prod- ‘‘(A) that uses chemical or biological weap- chemical or biological weapons use and for ucts) as the President may determine to be punitive damages as may be assessed. ons in violation of international law; or appropriate. ‘‘(c) STATUTORY CONSTRUCTION.—Nothing in ‘‘(B) that has used chemical or biological ‘‘(6) IMPORT RESTRICTIONS.—The President weapons against its own nationals; and this section limits the authority of the shall issue an order imposing restrictions on President to impose a sanction that is not ‘‘(2) to ensure that the victims of the use of the importation into the United States of specified in this section. chemical or biological weapons shall be com- any service, good, or commodity that is the pensated and awarded punitive damages, as growth, product, or manufacture of that ‘‘SEC. 84. REMOVAL OF SANCTIONS. may be determined by courts in the United country. ‘‘(a) CERTIFICATION REQUIREMENT.—The States. ‘‘(7) MULTILATERAL BANK ASSISTANCE.—The President shall remove the sanctions im- ‘‘SEC. 82. PRESIDENTIAL DETERMINATION. United States shall oppose, in accordance posed with respect to a foreign government ‘‘(a) BILATERAL SANCTIONS.—Except as pro- with section 701 of the International Finan- pursuant to this section if the President de- vided in subsections (c) and (d), the Presi- cial Institutions Act, the extension of any termines and so certifies to the Congress, dent shall, after the consultation with Con- loan or financial or technical assistance by after the end of the three-year period begin- gress, impose the sanctions described in sub- international financial institutions. ning on the date on which sanctions were sections (a) and (b) of section 83 if the Presi- ‘‘(8) BANK LOANS.—The United States Gov- initially imposed on that country pursuant dent determines that any foreign govern- ernment shall prohibit any United States to section 82, that— ment— bank from making any loan or providing any ‘‘(1) the government of that country has ‘‘(1) has used a chemical weapon or biologi- credit, including to any agency or instru- provided reliable assurances that it will not cal weapon in violation of international law; mentality of the government, except for use any chemical weapon or biological weap- or loans or credits for the purpose of purchasing on in violation of international law and will ‘‘(2) has used a chemical weapon or biologi- food or other agricultural commodities or not use any chemical weapon or biological cal weapon against its own nationals. products. weapon against its own nationals; ‘‘(b) MULTILATERAL SANCTIONS.—The sanc- ‘‘(9) AVIATION RIGHTS.— ‘‘(2) the government of the country is will- tions imposed pursuant to subsection (a) are ‘‘(A) IN GENERAL.— ing to accept onsite inspections or other reli- in addition to any multilateral sanction or ‘‘(i) NOTIFICATION.—The President is au- able measures to verify that the government measure that may be otherwise agreed. thorized to notify the government of a coun- is not making preparations to use any chem- ‘‘(c) PRESIDENTIAL WAIVER.—The President try with respect to which the President has ical weapon or biological weapon in violation may waive the application of any of the made a determination pursuant to section of international law or to use any chemical sanctions imposed pursuant to subsection (a) 82(a) of his intention to suspend the author- weapon or biological weapon against its own if the President determines and certifies in ity of foreign air carriers owned or con- nationals; and writing to the Speaker of the House of Rep- trolled by the government of that country to ‘‘(3) the government of the country is mak- resentatives and the Committee on Foreign engage in foreign air transportation to or ing restitution to those affected by any use Relations of the Senate that implementing from the United States. of any chemical weapon or biological weapon such measures would have a substantial neg- ‘‘(ii) SUSPENSION OF AVIATION RIGHTS.— in violation of international law or against ative impact upon the supreme national in- Within 10 days after the date of notification its own nationals. terests of the United States. of a government under subclause (I), the Sec- ‘‘(b) REASONS FOR DETERMINATION.—The ‘‘(d) SANCTIONS NOT APPLIED TO CERTAIN retary of Transportation shall take all steps certification made under this subsection EXISTING CONTRACTS.—A sanction described necessary to suspend at the earliest possible shall set forth the reasons supporting such in section 83 shall not apply to any activity date the authority of any foreign air carrier determination in each particular case. pursuant to a contract or international owned or controlled, directly or indirectly, ‘‘(c) EFFECTIVE DATE.—The certification agreement entered into before the date of by that government to engage in foreign air made under this subsection shall take effect the Presidential determination under sub- transportation to or from the United States, on the date on which the certification is re- section (a) if the President determines that notwithstanding any agreement relating to ceived by the Congress. performance of the activity would reduce the air services. ‘‘SEC. 85. NOTIFICATIONS AND REPORTS OF potential for the use of a chemical weapon or ‘‘(B) TERMINATION OF AIR SERVICE AGREE- CHEMICAL OR BIOLOGICAL WEAP- biological weapon by the sanctioned country. MENTS.— ONS USE AND APPLICATION OF ‘‘SEC. 83. MANDATORY SANCTIONS. ‘‘(i) IN GENERAL.—The President may direct SANCTIONS. ‘‘(a) MINIMUM NUMBER OF SANCTIONS.— the Secretary of State to terminate any air ‘‘(a) NOTIFICATION.—Not later than 30 days After consultation with Congress and mak- service agreement between the United States after persuasive information becomes avail- ing a determination under section 82 with re- and a country with respect to which the able to the executive branch of Government spect to the actions of a foreign government, President has made a determination pursu- indicating the substantial possibility of the the President shall impose not less than 5 of ant to section 82(a), in accordance with the use of chemical or biological weapons by any the following sanctions against that govern- provisions of that agreement. person or government, the President shall so ment for a period of three years: ‘‘(ii) TERMINATION OF AVIATION RIGHTS.— notify in writing Congress. ‘‘(1) FOREIGN ASSISTANCE.—The United Upon termination of an agreement under ‘‘(b) REPORT.—Not later than 60 days after States Government shall terminate assist- this clause, the Secretary of Transportation making a notification under subsection (a), ance under the Foreign Assistance Act of shall take such steps as may be necessary to the President shall submit a report to Con- 1961, except for urgent humanitarian assist- revoke at the earliest possible date the right gress that contains— ance and food or other agricultural commod- of any foreign air carrier owned, or con- ‘‘(1) an assessment by the President in ities or products. trolled, directly or indirectly, by the govern- both classified and unclassified form of the March 20, 1997 CONGRESSIONAL RECORD — SENATE S2663 circumstances of the suspected use of chemi- ployment of munitions or devices specified House of Representatives, on Australia cal or biological weapons, including any de- in this section. Group export controls and nonproliferation termination by the President made under ‘‘(3) PERSON.—The term ‘person’ means any measures. section 82 with respect to a foreign govern- individual, corporation, partnership, firm, (2) RESULTING FROM PRESIDENTIAL CERTIFI- ment; and association, or other legal entity.’’. CATION.—If the President certifies that either ‘‘(2) a description of the actions the Presi- (b) REPEAL.—Sections 306 through 308 of of the conditions in subsection (c) are not dent intends to take pursuant to the assess- the Act of December 4, 1991 (Public Law 102– met, the President shall consult within 60 ment, including the imposition of any sanc- 182) are repealed. days of such certification with the Commit- tions or other measures pursuant to section SEC. 202. CONTINUATION AND ENHANCEMENT OF tee on Foreign Relations of the Senate and 82. MULTILATERAL CONTROL REGIMES. the Committee on International Relations of ‘‘(c) PROGRESS REPORT.—Not later than 60 (a) SENSE OF CONGRESS.—It is the sense of the House of Representatives on steps the days after submission of a report under sub- Congress that any collapse of the informal United States should take to maintain effec- section (b), the President shall submit a forum of states known as the ‘‘Australia tive international controls on chemical and progress report to Congress describing ac- Group’’, either through changes in member- biological weapons-related materials and tions undertaken by the President under this ship or lack of compliance with common ex- technology. chapter, including the imposition of unilat- port controls, or any substantial weakening SEC. 203. CRITERIA FOR UNITED STATES ASSIST- eral and multilateral sanctions and other pu- of common Australia Group export controls ANCE TO RUSSIA. nitive measures, in response to the use of and nonproliferation measures in force as of (a) IN GENERAL.—Notwithstanding any any chemical weapon or biological weapon the date of enactment of this Act, would se- other provision of law, United States assist- described in the report. riously undermine international and na- ance described in subsection (b) may not be ‘‘(d) RECIPIENTS OF NOTIFICATIONS AND RE- tional efforts to curb the spread of chemical provided to Russia unless the President de- PORTS.—Any notification or report required and biological weapons and related equip- termines and certifies to Congress not later by this section shall be submitted to the fol- ment. than 180 days after the date of the enactment lowing: (b) POLICY.—It shall be the policy of the of this Act, and on an annual basis there- ‘‘(1) The Majority Leader of the Senate and United States— after, that— the Speaker of the House of Representatives. (1) to continue close cooperation with (1) Russia is making reasonable progress in ‘‘(2) The Committee on Foreign Relations other countries in the Australia Group in the implementation of the Bilateral Destruc- and the Select Committee on Intelligence of support of its current efforts and in devising tion Agreement; the Senate. additional means to monitor and control the (2) the United States and Russia have re- ‘‘(3) The Committee on International Rela- supply of chemicals and biological agents ap- solved, to the satisfaction of the United tions and the Permanent Select Committee plicable to weapons production; States, outstanding compliance issues under on Intelligence of the House of Representa- (2) to maintain an equivalent or more com- the Wyoming Memorandum of Understand- tives. prehensive level of control over the export of ing and the Bilateral Destruction Agree- ‘‘SEC. 86. DEFINITIONS. toxic chemicals and their precursors, dual- ment; ‘‘In this chapter: use processing equipment, human, animal (3) Russia has fully and accurately de- ‘‘(1) BIOLOGICAL WEAPON.—The term ‘bio- and plant pathogens and toxins with poten- clared all information regarding its unitary logical weapon’ means the following, to- tial biological weapons application, and and binary chemical weapons, chemical gether or separately: dual-use biological equipment, as that af- weapons production facilities, other facili- ‘‘(A) Any micro-organism (including bac- forded by the Australia Group as of the date ties associated with the development of teria, viruses, fungi, rickettsiae or protozoa), of enactment of this Act; chemical weapons, and riot control agents; pathogen, or infectious substance, or any (3) to block any effort by any Australia and naturally occurring, bio-engineered or syn- Group member to achieve Australia Group (4) Russia is in compliance with its obliga- thesized component of any such micro-orga- consensus on any action that would substan- tions under the Biological Weapons Conven- nism, pathogen, or infectious substance, tially weaken existing common Australia tion. whatever its origin or method of production, Group export controls and nonproliferation (b) UNITED STATES ASSISTANCE COVERED.— capable of causing— measures or otherwise undermine the effec- United States assistance described in this ‘‘(i) death, disease, or other biological mal- tiveness of the Australia Group; and subsection is United States assistance pro- function in a human, an animal, a plant, or (4) to work closely with other countries vided only for the purposes of— another living organism; also capable of supplying equipment, mate- (1) facilitating the transport, storage, safe- ‘‘(ii) deterioration of food, water, equip- rials, and technology with particular appli- guarding, and elimination of any chemical ment, supplies, or materials of any kind; or cability to the production of chemical or bio- weapon or biological weapon or its delivery ‘‘(iii) deleterious alteration of the environ- logical weapons in order to devise and har- vehicle; ment. monize the most effective national controls (2) preventing the proliferation of any ‘‘(B) Any munition or device specifically possible on the transfer of such materials, chemical weapon or biological weapon, any designed to cause death or other harm equipment, and technology. component or technology of such a weapon, through the toxic properties of those biologi- (c) CERTIFICATION.—Not later than 180 days or any technology or expertise related to cal weapons specified in subparagraph (A), after the date of the enactment of this Act, such a weapon; which would be released as a result of the and annually thereafter, the President shall (3) planning, designing, or construction of employment of such munition or device. determine and certify to Congress whether— any destruction facility for a chemical weap- ‘‘(C) Any equipment specifically designed (1) the Australia Group continues to main- on or biological weapon; or for use directly in connection with the em- tain an equivalent or more comprehensive (4) supporting any international science ployment of munitions or devices specified level of control over the export of toxic and technology center. in this section. chemicals and their precursors, dual-use (c) DEFINITIONS.— ‘‘(D) Any living organism specifically de- processing equipment, human, animal, and (1) BILATERAL DESTRUCTION AGREEMENT.— signed to carry a biological weapon specified plant pathogens and toxins with potential bi- The term ‘‘Bilateral Destruction Agree- in subparagraph (A) to a host. ological weapons application, and dual-use ment’’ means Agreement Between the United ‘‘(2) CHEMICAL WEAPON.—The term ‘chemi- biological equipment, as that afforded by the States of America and the Union of Soviet cal weapon’ means the following, together or Australia Group as of the date of the last Socialist Republics on Destruction and Non- separately: certification under this subsection, or, in the production of Chemical Weapons and on ‘‘(A) Any of the following chemical agents: case of the first certification, the level of Measures to Facilitate the Multilateral Con- tabun, Sarin, Soman, GF, VX, sulfur mus- control maintained as of the date of enact- vention on Banning Chemical Weapons, tard, nitrogen mustard, phosgene oxime, lew- ment of this Act; and signed on June 1, 1990. isite, phenyldichloroarsine, (2) the Australia Group remains a viable (2) BIOLOGICAL WEAPONS CONVENTION.—The ethyldichloroarsine, methyldichloroarsine, mechanism for curtailing the spread of term ‘‘Biological Weapons Convention’’ phosgene, diphosgene, hydrogen cyanide, cy- chemical and biological weapons-related ma- means the Convention on the Prohibition of anogen chloride, and arsine. terials and technology, and whether the ef- the Development, Production and Stock- ‘‘(B) Any of the 54 chemicals, other than a fectiveness of the Australia Group has been piling of Bacteriological (Biological) and riot control agent, controlled by the Aus- undermined by changes in membership, lack Toxin Weapons and on Their Destruction, tralia Group as of the date of the enactment of compliance with common export controls, done at Washington, London, and Moscow on of this Act. or any weakening of common controls and April 10, 1972. ‘‘(C) Any munition or device specifically measures that are in effect as of the date of (3) WYOMING MEMORANDUM OF UNDERSTAND- designed to cause death or other harm enactment of this Act. ING.—The term ‘‘Wyoming Memorandum of through the toxic properties of a chemical (d) CONSULTATIONS.— Understanding’’ means the Memorandum of weapon specified in subparagraph (A) or (B), (1) IN GENERAL.—The President shall con- Understanding Between the Government of which would be released as a result of the sult periodically, but not less frequently the United States of America and the Gov- employment of such munition or device. than twice a year, with the Committee on ernment of the Union of Soviet Socialist Re- ‘‘(D) Any equipment specifically designed Foreign Relations of the Senate and the publics Regarding a Bilateral Verification for use directly in connection with the em- Committee on International Relations of the Experiment and Data Exchange Related to S2664 CONGRESSIONAL RECORD — SENATE March 20, 1997 Prohibition on Chemical Weapons, signed at biological weapons, to which the United States defense strategy and for the develop- Jackson Hole, Wyoming, on September 23, States is a state party; and ment of force structure, doctrine, planning, 1989. (2) pursuant to paragraph (1), to work to training, and exercising policies of the Unit- (4) UNITED STATES ASSISTANCE.—The term obtain multilateral agreement regarding the ed States Armed Forces. ‘‘United States assistance’’ has the meaning collective imposition of sanctions and other (b) DEFENSE READINESS TRAINING.—The given the term in section 481(e)(4) of the For- measures described in chapter 8 of the Arms Secretary of Defense shall take those actions eign Assistance Act of 1961 (22 U.S.C. Export Control Act, as amended by this Act. that are necessary to ensure that the United 2291(e)(4)). (c) RESPONSIBILITY.—The Secretary of States Armed Forces are capable of carrying SEC. 204. REPORT ON THE STATE OF CHEMICAL State shall, as a priority matter, take steps out required military missions in United AND BIOLOGICAL WEAPONS PRO- necessary to achieve United States objec- States regional contingency plans despite LIFERATION. tives, as set forth in this section. the threat or use of chemical or biological Not later than 180 days after the date of (d) SENSE OF THE SENATE.—The Senate weapons. In particular, the Secretary of De- enactment of this Act, and every year there- urges and directs the Secretary of State to fense shall ensure that the United States after, the President shall submit to the work to convene an international negotiat- Armed Forces are effectively equipped, orga- Speaker of the House of Representatives and ing forum for the purpose of concluding an nized, trained, and exercised (including at the Committee on Foreign Relations and the international agreement on enforcement of the large unit and theater level) to conduct Select Committee on Intelligence of the Sen- the 1925 Geneva Protocol. operations in chemically and biologically ate a report containing the following: (e) ALLOCATION OF FUNDS.—Of the amount contaminated environments that are critical (1) PROLIFERATION BY FOREIGN COUNTRIES.— authorized to be appropriated to the Depart- to the success of United States military A description of any efforts by China, Egypt, ment of State for fiscal year 1998 under the plans in regional conflicts, including— India, Iran, Iraq, Libya, North Korea, Paki- appropriations account entitled ‘‘Inter- (1) deployment, logistics, and reinforce- stan, Russia, and Syria, and any country national Conferences and Contingencies’’, ment operations at key ports and airfields; that has, during the five years prior to sub- $5,000,000 shall be available only for payment (2) sustained combat aircraft sortie genera- mission of the report, used any chemical of salaries and expenses in connection with tion at critical regional airbases; and weapon or biological weapon or attempted to efforts of the Secretary of State to conclude (3) ground force maneuvers of large units acquire the material and technology to an international agreement described in sub- and divisions. produce and deliver chemical or biological section (d). (c) DISCUSSIONS WITH ALLIED COUNTRIES ON agents, together with an assessment of the SEC. 206. RESTRICTION ON USE OF FUNDS FOR READINESS.— present and future capability of the country THE ORGANIZATION FOR THE PRO- (1) HIGH-PRIORITY JOINT RESPONSIBILITY OF to produce and deliver such agents. HIBITION OF CHEMICAL WEAPONS. SECRETARIES OF DEFENSE AND STATE.—The (2) FOREIGN PERSONS ASSISTING IN PRO- None of the funds appropriated pursuant to Secretary of Defense and the Secretary of LIFERATION.—An identification of— any provision of law, including previously State shall give a high priority to discus- (A) those persons that in the past have as- appropriated funds, may be available to sions with key regional allies and likely re- sisted the government of any country de- make any voluntary or assessed contribution gional coalition partners, including those scribed in paragraph (1) in that effort; and to the Organization for the Prohibition of countries where the United States currently (B) those persons that continue to assist Chemical Weapons, or to reimburse any ac- deploys forces, where United States forces the government of the country described in count for the transfer of in-kind items to the would likely operate during regional con- paragraph (1) in that effort as of the date of Organization, unless or until the Convention flicts, or which would provide civilians nec- the report. on the Prohibition of Development, Produc- essary to support United States military op- (3) THIRD COUNTRY ASSISTANCE IN PRO- tion, Stockpiling and Use of Chemical Weap- erations, to determine what steps are nec- LIFERATION.—An assessment of whether and ons and on Their Destruction, opened for sig- essary to ensure that allied and coalition to what degree other countries have assisted nature at Paris January 13, 1993, enters into forces and other critical civilians are ade- any government or country described in force for the United States. quately equipped and prepared to operate in paragraph (1) in its effort to acquire the ma- SEC. 207. ENHANCEMENTS TO ROBUST CHEMICAL chemically and biologically contaminated terial and technology described in that para- AND BIOLOGICAL DEFENSES. environments. graph. (a) SENSE OF CONGRESS.—It is the sense of Congress that— (2) REPORT.—Not later than one year after (4) INTELLIGENCE INFORMATION ON THIRD (1) the threats posed by chemical and bio- the date of the enactment of this Act, the COUNTRY ASSISTANCE.—A description of any Secretary of Defense and the Secretary of confirmed or credible intelligence or other logical weapons to United States Armed State shall jointly submit to the Committee information that any country has assisted Forces deployed in regions of concern will on Foreign Relations and the Committee on the government of any country described in continue to grow and will undermine United Armed Services of the Senate and to the paragraph (1) in that effort, either directly States strategies for the projection of United Speaker of the House of Representatives a or by facilitating the activities of the per- States military power and the forward de- report describing— sons identified in subparagraph (A) or (B) of ployment of United States Armed Forces; (A) the results of the discussions held paragraph (3) or had knowledge of the activi- (2) the use of chemical or biological weap- under paragraph (1) and plans for future dis- ties of the persons identified in subparagraph ons will be a likely condition of future con- cussions; (A) or (B) of paragraph (3), but took no ac- flicts in regions of concern; (B) the measures agreed to improve the tion to halt or discourage such activities. (3) it is essential for the United States and key regional allies of the United States to preparedness of foreign armed forces and ci- (5) INTELLIGENCE INFORMATION ON SUB- preserve and further develop robust chemical vilians; and NATIONAL GROUPS.—A description of any con- (C) any proposals for increased military as- firmed or credible intelligence or other infor- and biological defenses; sistance, including assistance provided mation of the development, production, (4) the United States Armed Forces, both through— stockpiling, or use, of any chemical weapon active and nonactive duty, are inadequately (i) the sale of defense articles and defense or biological weapon by subnational groups, equipped, organized, trained, and exercised services under the Arms Export Control Act; including any terrorist or paramilitary orga- for operations in chemically and biologically (ii) the Foreign Military Financing pro- nization. contaminated environments; (5) the lack of readiness stems from a de- gram under section 23 of that Act; and (6) FUNDING PRIORITIES FOR DETECTION AND emphasis by the executive branch of Govern- (iii) chapter 5 of part II of the Foreign As- MONITORING CAPABILITIES.—An identification sistance Act of 1961 (relating to inter- of the priorities of the executive branch of ment and the United States Armed Forces on national military education and training). Government for the development of new re- chemical and biological defense; sources relating to detection and monitoring (6) the armed forces of key regional allies (d) UNITED STATES ARMY CHEMICAL capabilities with respect to chemical weap- and likely coalition partners, as well as ci- SCHOOL.— ons and biological weapons. vilians necessary to support United States (1) COMMAND OF SCHOOL.—The Secretary of military operations, are inadequately pre- Defense shall take those actions that are SEC. 205. INTERNATIONAL CONFERENCE TO STRENGTHEN THE 1925 GENEVA pared and equipped to carry out essential necessary to ensure that the United States PROTOCOL. missions in chemically and biologically con- Army Chemical School remains under the (a) DEFINITION.—In this section, the term taminated environments; oversight of a general officer of the United ‘‘1925 Geneva Protocol’’ means the Protocol (7) congressional direction contained in the States Army. for the Prohibition of the Use in War of As- 1997 Defense Against Weapons of Mass De- (2) SENSE OF CONGRESS.—It is the sense of phyxiating, Poisonous or Other Gases, and of struction Act is intended to lead to enhanced Congress that— Bacteriological Methods of Warfare, done at domestic preparedness to protect against the (A) the transfer, consolidation, and reorga- Geneva June 17, 1925 (26 UST 71; TIAS 8061). use of chemical and biological weapons; and nization of the United States Army Chemical (b) POLICY.—It shall be the policy of the (8) the United States Armed Forces should School should not disrupt or diminish the United States— place increased emphasis on potential training and readiness of the United States (1) to work to obtain multilateral agree- threats to deployed United States Armed Armed Forces to fight in a chemical-biologi- ment to effective, international enforcement Forces and, in particular, should make coun- cal warfare environment; and mechanisms to existing international agree- tering the use of chemical and biological (B) the Army should continue to operate ments that prohibit the use of chemical and weapons an organizing principle for United the Chemical Defense Training Facility at March 20, 1997 CONGRESSIONAL RECORD — SENATE S2665 Fort McClellan until such time as the re- through higher altitude intercepts and SEC. 209. RIOT CONTROL AGENTS. placement facility at Fort Leonard Wood is boost-phase intercepts. (a) PROHIBITION.—The President shall not functional. (I) TRAINING AND READINESS.—An assess- issue any order or directive that diminishes, (e) REPORT.— ment of the training and readiness of the abridges, or alters the right of the United (1) IN GENERAL.—Not later than 180 days United States Armed Forces to operate in States to use riot control agents— after the date of enactment of this Act, and chemically and biologically contaminated (1) in any circumstance not involving on January 1 every year thereafter, the environments and actions taken to sustain international armed conflict; or President shall submit a report to the Com- training and readiness, including at national (2) in a defensive military mode to save mittee on Foreign Relations, the Committee combat training centers. lives in an international armed conflict, as on Armed Services, and the Committee on (J) MILITARY EXERCISES.—A description of provided for in Executive Order No. 11850 of Appropriations of the Senate and the Com- the progress made in incorporating consider- April 9, 1975. mittee on International Relations, the Com- ation about the threat or use of chemical (b) CIRCUMSTANCES NOT INVOLVING INTER- mittee on National Security, and the Com- and biological weapons into service and joint NATIONAL ARMED CONFLICT.—The use of riot mittee on Appropriations of the House of exercises as well as simulations, models, and control agents under subsection (a)(1) in- Representatives, and the Speaker of the wargames, together with the conclusions cludes the use of such agents in— House of Representatives on previous, cur- drawn from these efforts about the United (1) peacekeeping or peace support oper- rent, and planned chemical and biological States capability to carry out required mis- ations; weapons defense activities of the United sions, including with coalition partners, in (2) humanitarian or disaster relief oper- States Armed Forces. military contingencies. ations; (2) CONTENT OF REPORT.—Each report re- (K) MILITARY DOCTRINE.—A description of (3) noncombatant evacuation operations; quired by paragraph (1) shall include the fol- the progress made in developing and imple- (4) counterterrorist operations and the res- lowing information for the previous fiscal menting service and joint doctrine for com- cue of hostages; and year and for the next three fiscal years: bat and noncombat operations involving ad- (5) law enforcement operations and other (A) ENHANCEMENT OF DEFENSE AND READI- versaries armed with chemical or biological internal conflicts. NESS.—Proposed solutions to each of the de- weapons, including efforts to update the (c) DEFENSIVE MILITARY MODE.—The use of ficiencies in chemical and biological warfare range of service and joint doctrine to better riot control agents under subsection (a)(2) defenses identified in the March 1996 General address the wide range of military activities, may include the use of such agents— Accounting Office Report, titled ‘‘Chemical including deployment, reinforcement, and lo- (1) in areas under direct and distinct Unit- and Biological Defense: Emphasis Remains gistics operations in support of combat oper- ed States military control, including the use Insufficient to Resolve Continuing Prob- ations, and for the conduct of such oper- of such agents for the purposes of controlling lems’’, and steps being taken pursuant to ations in concert with coalition forces. rioting or escaping enemy prisoners of war; subsection (b) to ensure that the United (L) DEFENSE OF CIVILIAN POPULATION.—A (2) to protect personnel or material from States Armed Forces are capable of conduct- description of the progress made in resolving civil disturbances, terrorists, and para- ing required military operations to ensure issues relating to the protection of United military organizations; the success of United States regional contin- States population centers from chemical and (3) to minimize casualties during rescue gency plans despite the threat or use of biological attack and from the consequences missions of downed air crews and passengers, chemical or biological weapons. of such an attack, including plans for inocu- prisoners of war, or hostages; (B) PRIORITIES.—An identification of prior- (4) in situations where combatants and ities of the executive branch of Government lation of populations, consequence manage- noncombatants are intermingled; and in the development of both active and pas- ment, and progress made in developing and (5) in support of base defense, rear area op- sive defenses against the use of chemical and deploying effective cruise missile defenses erations, noncombatant evacuation oper- biological weapons. and a national ballistic missile defense. ations, and operations to protect or recover (C) RDT&E AND PROCUREMENT OF DE- SEC. 208. NEGATIVE SECURITY ASSURANCES. nuclear weapons. FENSES.—A detailed summary of all budget (a) SENSE OF CONGRESS.—It is the sense of (d) SENSE OF CONGRESS.—It is the sense of activities associated with the research, de- Congress that in order to achieve an effec- Congress that international law permits the velopment, testing, and evaluation, and pro- tive deterrence against attacks of the United United States to use herbicides, under regu- curement of chemical and biological de- States and United States Armed Forces by lations applicable to their domestic use, for fenses, set forth by fiscal year, program, de- chemical weapons, the President should re- control of vegetation within United States partment, and agency. evaluate the extension of negative security bases and installations or around their im- (D) VACCINE PRODUCTION AND STOCKS.—A assurances by the United States to non- detailed assessment of current and projected nuclear-weapon states in the context of the mediate defensive perimeters. (e) AUTHORITY OF THE PRESIDENT.—The vaccine production capabilities and vaccine Treaty on the Non-Proliferation of Nuclear stocks, including progress in researching and Weapons. President shall take all necessary measures, and prescribe such rules and regulations as developing a multivalent vaccine. (b) REPORT.—Not later than 180 days after may be necessary, to ensure that the policy (E) DECONTAMINATION OF INFRASTRUCTURE the date of the enactment of this Act, the contained in this section is observed by the AND INSTALLATIONS.—A detailed assessment President shall submit to the Committee on of procedures and capabilities necessary to Armed Services and the Committee on For- Armed Forces of the United States. protect and decontaminate infrastructure eign Relations of the Senate and to the and installations that support the ability of Speaker of the House of Representatives a By Mr. CHAFEE (for himself, Mr. the United States to project power through report, both in classified and unclassified GRAHAM, and Mr. JEFFORDS): the use of its Armed Forces, including forms, setting forth— S. 496. A bill to amend the Internal progress in developing a nonaqueous chemi- (1) the findings of a detailed review of Revenue Code of 1986 to provide a cred- cal decontamination capability. United States policy on negative security as- it against income tax to individuals (F) PROTECTIVE GEAR.—A description of the surances as a deterrence strategy; and who rehabilitate historic homes or who progress made in procuring lightweight per- (2) a determination by the President of the are the first purchasers of rehabilitated sonal protective gear and steps being taken appropriate range of nuclear and conven- historic homes for use as a principal to ensure that programmed procurement tional responses to the use of chemical or bi- quantities are sufficient to replace expiring ological weapons against the United States residence; to the Committee on Fi- battledress overgarments and chemical pro- Armed Forces, United States citizens, allies, nance. tective overgarments to maintain required and third parties. THE HISTORIC HOMEOWNERSHIP ASSISTANCE ACT wartime inventory levels. (c) DEFINITIONS.—In this section: Mr. CHAFEE. Mr. President, all (G) DETECTION AND IDENTIFICATION CAPA- (1) NEGATIVE SECURITY ASSURANCES.—The across America, in the small towns and BILITIES.—A description of the progress made term ‘‘negative security assurances’’ means great cities of this country, our herit- in developing long-range standoff detection the assurances provided by the United States age as a nation—the physical evidence and identification capabilities and other bat- to nonnuclear-weapon states in the context tlefield surveillance capabilities for biologi- of the Treaty on the Non-Proliferation of of our past—is at risk. In virtually cal and chemical weapons, including Nuclear Weapons (21 UST 483) that the Unit- every corner of this land, homes in progress on developing a multichemical ed States will forswear the use of certain which grandparents and parents grew agent detector, unmanned aerial vehicles, weapons unless the United States is attacked up, communities and neighborhoods and unmanned ground sensors. by that nonnuclear-weapon state in alliance that nurtured vibrant families, schools (H) THEATER MISSILE DEFENSES.—A descrip- with a nuclear-weapon state. that were good places to learn and tion of the progress made in developing and (2) NONNUCLEAR-WEAPON STATES.—The term churches and synagogues that were deploying layered theater missile defenses ‘‘nonnuclear-weapon states’’ means states filled on days of prayer, have suffered for deployed United States Armed Forces that are not nuclear-weapon states (as de- which will provide greater geographic cov- fined in Article IX(3) of the Treaty on the the ravages of abandonment and decay. erage against current and expected ballistic Non-Proliferation of Nuclear Weapons, done In the decade from 1980 to 1990, Chi- missile threats and will assist the mitigation at Washington, London, and Moscow July 1, cago lost 41,000 housing units through of chemical and biological contamination 1968 (21 UST 483). abandonment, Philadelphia 10,000, and S2666 CONGRESSIONAL RECORD — SENATE March 20, 1997 St. Louis 7,000. The story in our older The bill allows lower-income home- SEC. 2. HISTORIC HOMEOWNERSHIP REHABILI- small communities has been the same, buyers, who may not have sufficient TATION CREDIT. (a) IN GENERAL.—Subpart A of part IV of and the trend continues. It is impor- Federal income tax liability to use a subchapter A of chapter 1 of the Internal tant to understand that it is not just tax credit, to convert the credit to Revenue Code of 1986 (relating to nonrefund- buildings that we are losing. It is the mortgage assistance. The legislation able personal credits) is amended by insert- sense of our past, the vitality of our would permit such persons to receive ing after section 23 the following new sec- communities, and the shared values of an Historic Rehabilitation Mortgage tion: those precious places. Credit Certificate which they can use ‘‘SEC. 24. HISTORIC HOMEOWNERSHIP REHABILI- We need not stand hopelessly by as with their bank to obtain a lower in- TATION CREDIT. ‘‘(a) GENERAL RULE.—In the case of an indi- passive witnesses to the loss of these terest rate on their mortgage or to vidual, there shall be allowed as a credit irreplaceable historic resources. We lower the amount of their downpay- against the tax imposed by this chapter for can act, and to that end I am introduc- ment. the taxable year an amount equal to 20 per- ing today the Historic Homeownership The credit would be available to con- cent of the qualified rehabilitation expendi- Assistance Act along with my distin- dominiums and co-ops, as well as sin- tures made by the taxpayer with respect to guished colleagues, Senator GRAHAM of a qualified historic home. gle-family buildings. If a building is re- ‘‘(b) DOLLAR LIMITATION.— Florida and Senator JEFFORDS. habilitated by a developer for resale, ‘‘(1) IN GENERAL.—The credit allowed by This legislation is patterned after the the credit would pass through to the subsection (a) with respect to any residence existing historic rehabilitation invest- homeowner. of a taxpayer shall not exceed $50,000 ($25,000 ment tax credit. That legislation has One goal of the bill is to provide in- in the case of a married individual filing a been enormously successful in stimu- centives for middle- and upper-income separate return). ‘‘(2) CARRYFORWARD OF CREDIT UNUSED BY lating private investment in the reha- families to return to older towns and REASON OF LIMITATION BASED ON TAX LIABIL- bilitation of buildings of historic im- cities. Therefore, the bill does not portance all across the country. ITY.—If the credit allowable under subsection limit the tax benefits on the basis of (a) for any taxable year exceeds the limita- Through its use we have been able to income. However, it does impose a cap tion imposed by section 26(a) for such tax- save and reuse a rich and diverse array of $50,000 on the amount of credit able year reduced by the sum of the credits of historic buildings: landmarks such which may be taken for a principal res- allowable under this subpart (other than this as Union Station right here in Wash- idence. section), such excess shall be carried to the ington, DC, the Fox River Mills, a succeeding taxable year and added to the The Historic Homeownership Assist- credit allowable under subsection (a) for mixed use project that was once a dere- ance Act will make ownership of a re- lict paper mill in Appleton, WI, and the such succeeding taxable year. habilitated older home more affordable ‘‘(c) QUALIFIED REHABILITATION EXPENDI- Rosa True School, an eight-unit low- for homebuyers of modest incomes. It TURE.—For purposes of this section: and moderate-income rental project in will encourage more affluent families ‘‘(1) IN GENERAL.—The term ‘qualified reha- a historic school building in Portland, to claim a stake in older towns and bilitation expenditure’ means any amount ME. neighborhoods. It affords fiscally properly chargeable to capital account— In my own State of Rhode Island, ‘‘(A) in connection with the certified reha- stressed cities and towns a way to put Federal tax incentives stimulated the bilitation of a qualified historic home, and abandoned buildings back on the tax rehabilitation and commercial reuse of ‘‘(B) for property for which depreciation rolls, while strengthening their income would be allowable under section 168 if the more than 300 historic properties. The and sales tax bases. It offers devel- qualified historic home were used in a trade properties saved include the Hotel opers, realtors and homebuilders a new or business. Manisses on Block Island, the former realm of economic opportunity in revi- ‘‘(2) CERTAIN EXPENDITURES NOT IN- Valley Falls Mills complex in Central CLUDED.— talizing decaying buildings. Falls, and the Honan Block in ‘‘(A) EXTERIOR.—Such term shall not in- In addition to preserving our herit- Woonsocket. clude any expenditure in connection with the The legislation that I am introducing age, extending this credit will provide rehabilitation of a building unless at least 5 builds on the familiar structure of the an important supplemental benefit—it percent of the total expenditures made in the will boost the economy. Every dollar of rehabilitation process are allocable to the existing tax credit, but with a different rehabilitation of the exterior of such build- focus and a more modest scope and Federal investment in historic reha- bilitation leverages many more from ing. cost. It is designed to empower the one ‘‘(B) OTHER RULES TO APPLY.—Rules similar major constituency that has been the private sector. Rhode Island, for to the rules of clauses (ii) and (iii) of section barred from using the existing credit— example, has used the credit to lever- 47(c)(2)(B) shall apply. homeowners. Only those persons who age 252 million dollars in private in- ‘‘(3) MIXED USE OR MULTIFAMILY BUILDING.— rehabilitate or purchase a newly reha- vestment. This investment has created If only a portion of a building is used as the more than 10,000 jobs and 187 million principal residence of the taxpayer, only bilitated home and occupy it as their qualified rehabilitation expenditures which principal residence would be entitled to dollars in wages. The American dream of owning one’s are properly allocable to such portion shall this new credit. There would be no pas- be taken into account under this section. sive losses, no tax shelters and no syn- own home is a powerful force. This bill ‘‘(d) CERTIFIED REHABILITATION.—For pur- dications under this bill. can help it come true for those who are poses of this section: Like the existing investment credit, prepared to make a personnel commit- ‘‘(1) IN GENERAL.—Except as otherwise pro- the bill would provide a credit to home- ment to join in the rescue of our price- vided in this subsection, the term ‘certified owners equal to 20 percent of the quali- less heritage. By their actions they can rehabilitation’ has the meaning given such help to revitalize decaying resources of term by section 47(c)(2)(C). fied rehabilitation expenditures made ‘‘(2) FACTORS TO BE CONSIDERED IN THE CASE historic importance, create jobs and on an eligible building which is used as OF TARGETED AREA RESIDENCES, ETC.— a principal residence by the owner. Eli- stimulate economic development, and ‘‘(A) IN GENERAL.—For purposes of applying gible buildings are those individually restore to our older towns and cities a section 47(c)(2)(C) under this section with re- listed on the National Register of His- lost sense of purpose and community. spect to the rehabilitation of a building to toric Places or on a nationally cer- Mr. President, I ask unanimous con- which this paragraph applies, consideration tified State or local historic register, sent that additional material be print- shall be given to— ‘‘(i) the feasibility of preserving existing ed in the RECORD. or are contributing buildings in na- architectural and design elements of the in- tional, State or local historic districts. There being no objection, the mate- terior of such building, As is the case with the existing credit, rial was ordered to be printed in the ‘‘(ii) the risk of further deterioration or the rehabilitation work would have to RECORD, as follows: demolition of such building in the event that be performed in compliance with the S. 496 certification is denied because of the failure to preserve such interior elements, and Secretary of the Interior’s Standards Be it enacted by the Senate and House of Rep- for Rehabilitation, although the bill ‘‘(iii) the effects of such deterioration or resentatives of the United States of America in demolition on neighboring historic prop- clarifies that such Standards should be Congress assembled, erties. interpreted in a manner that takes SECTION 1. SHORT TITLE. ‘‘(B) BUILDINGS TO WHICH THIS PARAGRAPH into consideration economic and tech- This Act may be cited as the ‘‘Historic APPLIES.—This paragraph shall apply with nical feasibility. Homeownership Assistance Act’’. respect to any building— March 20, 1997 CONGRESSIONAL RECORD — SENATE S2667

‘‘(i) any part of which is a targeted area ‘‘(f) WHEN EXPENDITURES TAKEN INTO AC- ‘‘(I) which is a targeted area residence residence within the meaning of section COUNT.—In the case of a building other than within the meaning of section 143(j)(1), or 143(j)(1), or a building to which subsection (g) applies, ‘‘(II) which is located in an enterprise or ‘‘(ii) which is located within an enterprise qualified rehabilitation expenditures shall be empowerment zone, or empowerment zone, treated for purposes of this section as a payment which is substantially equivalent but shall not apply with respect to any made— to such specified amount to be used to re- building which is listed in the National Reg- ‘‘(1) on the date the rehabilitation is com- duce the taxpayer’s cost of purchasing the ister. pleted, or building (and only the remainder of such face ‘‘(3) APPROVED STATE PROGRAM.—The term ‘‘(2) to the extent provided by the Sec- amount shall be taken into account under ‘certified rehabilitation’ includes a certifi- retary by regulation, when such expendi- clause (i)). cation made by— tures are properly chargeable to capital ac- ‘‘(3) USE OF CERTIFICATE BY LENDER.—The ‘‘(A) a State Historic Preservation Officer count. amount of the credit specified in the certifi- who administers a State Historic Preserva- Regulations under paragraph (2) shall in- cate shall be allowed to the lender only to tion Program approved by the Secretary of clude a rule similar to the rule under section offset the regular tax (as defined in section the Interior pursuant to section 101(b)(1) of 50(a)(2) (relating to recapture if property 55(c)) of such lender. The lender may carry the National Historic Preservation Act, or ceases to qualify for progress expenditures). forward all unused amounts under this sub- ‘‘(B) a local government, certified pursuant ‘‘(g) ALLOWANCE OF CREDIT FOR PURCHASE section until exhausted. to section 101(c)(1) of the National Historic OF REHABILITATED HISTORIC HOME.— ‘‘(i) RECAPTURE.— Preservation Act and authorized by a State ‘‘(1) IN GENERAL.—In the case of a qualified ‘‘(1) IN GENERAL.—If, before the end of the Historic Preservation Officer, or the Sec- purchased historic home, the taxpayer shall 5-year period beginning on the date on which retary of the Interior where there is no ap- be treated as having made (on the date of the rehabilitation of the building is com- proved State program), purchase) the qualified rehabilitation ex- pleted (or, if subsection (g) applies, the date subject to such terms and conditions as may penditures made by the seller of such home. of purchase of such building by the tax- be specified by the Secretary of the Interior ‘‘(2) QUALIFIED PURCHASED HISTORIC HOME.— payer)— for the rehabilitation of buildings within the For purposes of this subsection, the term ‘‘(A) the taxpayer disposes of such tax- jurisdiction of such officer (or local govern- ‘qualified purchased historic home’ means payer’s interest in such building, or ment) for purposes of this section. any substantially rehabilitated certified his- ‘‘(B) such building ceases to be used as the ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For toric structure purchased by the taxpayer principal residence of the taxpayer, purposes of this section: if— the taxpayer’s tax imposed by this chapter ‘‘(1) QUALIFIED HISTORIC HOME.—The term ‘‘(A) the taxpayer is the first purchaser of for the taxable year in which such disposi- ‘qualified historic home’ means a certified such structure after the date rehabilitation tion or cessation occurs shall be increased by historic structure— is completed, and the purchase occurs within the recapture percentage of the credit al- ‘‘(A) which has been substantially rehabili- 5 years after such date, lowed under this section for all prior taxable tated, and ‘‘(B) the structure (or a portion thereof) years with respect to such rehabilitation. ‘‘(B) which (or any portion of which)— will, within a reasonable period, be the prin- ‘‘(2) RECAPTURE PERCENTAGE.—For pur- ‘‘(i) is owned by the taxpayer, and cipal residence of the taxpayer, poses of paragraph (1), the recapture percent- ‘‘(ii) is used (or will, within a reasonable ‘‘(C) no credit was allowed to the seller age shall be determined in accordance with period, be used) by such taxpayer as his prin- under this section or section 47 with respect the table under section 50(a)(1)(B), deeming cipal residence. to such rehabilitation, and such table to be amended— ‘‘(2) SUBSTANTIALLY REHABILITATED.—The ‘‘(D) the taxpayer is furnished with such ‘‘(A) by striking ‘If the property ceases to term ‘substantially rehabilitated’ has the information as the Secretary determines is be investment credit property within—’ and meaning given such term by section necessary to determine the credit under this inserting ‘If the disposition or cessation oc- 47(c)(1)(C); except that, in the case of any subsection. curs within—’, and building described in subsection (d)(2), clause ‘‘(h) HISTORIC REHABILITATION MORTGAGE ‘‘(B) in clause (i) by striking ‘One full year (i)(I) thereof shall not apply. CREDIT CERTIFICATE.— after placed in service’ and inserting ‘One ‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin- ‘‘(1) IN GENERAL.—The taxpayer may elect, full year after the taxpayer becomes entitled cipal residence’ has the same meaning as in lieu of the credit otherwise allowable to the credit’. when used in section 1034. under this section, to receive a historic reha- ‘‘(j) BASIS ADJUSTMENTS.—For purposes of ‘‘(4) CERTIFIED HISTORIC STRUCTURE.— bilitation mortgage credit certificate. An this subtitle, if a credit is allowed under this ‘‘(A) IN GENERAL.—The term ‘certified his- election under this paragraph shall be section for any expenditure with respect to toric structure’ has the meaning given such made— any property (including any purchase under term by section 47(c)(3). ‘‘(A) in the case of a building to which sub- subsection (g) and any transfer under sub- ‘‘(B) CERTAIN STRUCTURES INCLUDED.—Such section (g) applies, at the time of purchase, section (h)), the increase in the basis of such term includes any building (and its struc- or property which would (but for this sub- tural components) which is designated as ‘‘(B) in any other case, at the time reha- section) result from such expenditure shall being of historic significance under a statute bilitation is completed. be reduced by the amount of the credit so al- of a State or local government, if such stat- ‘‘(2) HISTORIC REHABILITATION MORTGAGE lowed. ute is certified by the Secretary of the Inte- CREDIT CERTIFICATE.—For purposes of this ‘‘(k) PROCESSING FEES.—Any State may rior to the Secretary as containing criteria subsection, the term ‘historic rehabilitation impose a fee for the processing of applica- which will substantially achieve the purpose mortgage credit certificate’ means a certifi- tions for the certification of any rehabilita- of preserving and rehabilitating buildings of cate— tion under this section provided that the historic significance. ‘‘(A) issued to the taxpayer, in accordance amount of such fee is used only to defray ex- ‘‘(5) ENTERPRISE OR EMPOWERMENT ZONE.— with procedures prescribed by the Secretary, penses associated with the processing of such The term ‘enterprise or empowerment zone’ with respect to a certified rehabilitation, applications. means any area designated under section ‘‘(B) the face amount of which shall be ‘‘(l) DENIAL OF DOUBLE BENEFIT.—No credit 1391 as an enterprise community or an equal to the credit which would (but for this shall be allowed under this section for any empowerment zone. subsection) be allowable under subsection (a) amount for which credit is allowed under ‘‘(6) REHABILITATION NOT COMPLETE BEFORE to the taxpayer with respect to such reha- section 47. CERTIFICATION.—A rehabilitation shall not be bilitation, ‘‘(m) REGULATIONS.—The Secretary shall treated as complete before the date of the ‘‘(C) which may only be transferred by the prescribe such regulations as may be appro- certification referred to in subsection (d). taxpayer to a lending institution in connec- priate to carry out the purposes of this sec- ‘‘(7) LESSEES.—A taxpayer who leases his tion with a loan— tion, including regulations where less than principal residence shall, for purposes of this ‘‘(i) that is secured by the building with re- all of a building is used as a principal resi- section, be treated as the owner thereof if spect to which the credit relates, and dence and where more than 1 taxpayer use the remaining term of the lease (as of the ‘‘(ii) the proceeds of which may not be used the same dwelling unit as their principal res- date determined under regulations pre- for any purpose other than the acquisition or idence.’’ scribed by the Secretary) is not less than rehabilitation of such building, and (b) CONFORMING AMENDMENT.—Subsection such minimum period as the regulations re- ‘‘(D) in exchange for which such lending in- (a) of section 1016 of such Code is amended by quire. stitution provides the taxpayer— striking ‘‘and’’ at the end of paragraph (25), ‘‘(8) TENANT-STOCKHOLDER IN COOPERATIVE ‘‘(i) a reduction in the rate of interest on by striking the period at the end of para- HOUSING CORPORATION.—If the taxpayer holds the loan which results in interest payment graph (26) and inserting ‘‘, and’’, and by add- stock as a tenant-stockholder (as defined in reductions which are substantially equiva- ing at the end the following new item: section 216) in a cooperative housing cor- lent on a present value basis to the face ‘‘(27) to the extent provided in section poration (as defined in such section), such amount of such certificate, or 24(j).’’ stockholder shall be treated as owning the ‘‘(ii) if the taxpayer so elects with respect (c) CLERICAL AMENDMENT.—The table of house or apartment which the taxpayer is to a specified amount of the face amount of sections for subpart A of part IV of sub- entitled to occupy as such stockholder. such a certificate relating to a building— chapter A of chapter 1 of such Code is S2668 CONGRESSIONAL RECORD — SENATE March 20, 1997 amended by inserting after the item relating Standards for Historic Rehabilitation. To The bill that Senator CHAFEE and I to section 23 the following new item: qualify for the credit, the rehabilitation are cosponsoring focuses on the preser- must be performed in accordance with the ‘‘Sec. 24. Historic homeownership rehabilita- vation of historic residences. The bill Secretary of the Interior’s Standards for Re- tion credit.’’ habilitation, which guide eligibility of ex- will assist Americans who want to safe- (d) EFFECTIVE DATE.—The amendments penditures under the existing commercial re- guard, maintain, and reside in these made by this section shall apply with respect habilitation tax credit. The intent of the homes which chronicle America’s past. to rehabilitations the physical work on Standards is to assist the long-term preser- The Historic Homeownership Assist- which begins after the date of enactment of vation of a property’s significance through ance Act will stimulate rehabilitation this Act. the preservation of historic materials and of historic homes while contributing to features. The Standards are to be applied to SUMMARY OF THE HISTORIC HOMEOWNERSHIP the revitalization of urban commu- specific rehabilitation projects in a reason- ASSISTANCE ACT nities. The Federal tax credit provided able manner, taking into consideration eco- Purpose. To provide homeownership incen- nomic and technical feasibility. The pro- in the legislation is modeled after the tives and opportunities through the rehabili- posed legislation clarifies this directive. existing Federal commercial historic tation of older buildings in historic districts. State-Level Certifications. As under the rehabilitation tax credit. Since 1981, To stimulate the revival of decaying neigh- existing commercial rehabilitation tax cred- this commercial tax credit has facili- borhoods and communities, and the preserva- it program, State Historic Preservation Offi- tated the preservation of many historic tion of historic buildings and districts cers and Certified Local Governments are structures across this great land. For through homeownership. given the authority to certify the rehabilita- example in the last two decades, in my Rate of Credit: Eligible Buildings. The ex- tion of buildings within their respective ju- isting Historic Rehabilitation Tax Credit, risdictions. States are given the authority to home State of Florida, $238 million in which provides a credit of 20 percent of quali- levy fees for processing applications for cer- private capital was invested in over 325 fied rehabilitation expenditures to investors tification of the rehabilitation expenditures, historic rehabilitation projects. These in commercial and rental buildings, is ex- provided that the proceeds of such fees are investments helped preserve Ybor City tended to homeowners who rehabilitate or used solely to defray expenses associated in Tampa and the Springfield Historic purchase a newly-rehabilitated eligible home with processing the application. District in Jacksonville. and occupy it as a principal residence. In the Historic Rehabilitation Mortgage Credit The tax credit, however, has never case of buildings rehabilitated by developers Certificates. Lower income taxpayers may and sold to homeowners, the credit is passed not have sufficient income tax liability to applied to personal residences. It is through to the home purchaser. Eligible take full use of the credit. The legislation time to provide an incentive to individ- buildings are those listed individually on the permits anyone eligible for the income tax uals to restore and preserve homes in National Register of Historic Places or on a credit to convert it into a mortgage credit America’s historic communities. nationally certified state or local register, certificate which could be used either to re- The Historic Homeownership Assist- and contributing buildings in national, state duce the interest rate on a home mortgage ance Act targets Americans at all eco- or local historic districts. loan or to lower the down payment required nomic levels. The bill provides lower Both single-family and multifamily resi- to purchase the property. income Americans with the option to dences, through condominiums and coopera- Under this option, the taxpayer transfers tives, qualify for the credit. In the case of the certificate to the mortgage lender in ex- elect a Mortgage Credit Certificate in buildings where one section of the structure change for a reduced interest rate on a home lieu of the tax credit. This certificate is slated for residential use and another for mortgage loan. The mortgage lender then allows Americans who cannot take ad- commercial use, such as in two- or three- uses the credit to reduce its federal income vantage of the tax credit to reduce the story buildings in downtown areas, pur- tax liability, subject to Alternative Mini- interest rate on their mortgage that chasers could utilize the historic homeowner mum Tax limitations. The credit claimed by secures the purchase and rehabilitation the mortgage lender is not subject to recap- tax credit against the rehabilitation expend- of a historic home. itures of the residential portion, and the ex- ture. In many distressed neighborhoods, the cost For example, if a lower-income fam- isting commercial rehabilitation tax credit ily were to purchase a $35,000 home for the remaining portion. of rehabilitating a home and bringing it to Maximum Credit: Minimum Expenditures. market significantly exceeds the value at which included $25,000 worth of quali- The amount of the homeownership credit is which the property is appraised by the mort- fied rehabilitation expenditures, it limited to $50,000 for each principal resi- gage lender. This gap imposes a significant would be entitled to a $5,000 Historic dence. The amount of qualified rehabilita- burden on a potential homeowner because Rehabilitation Mortgage Credit Certifi- tion expenditures must exceed the greater of the required downpayment exceeds his or her cate which could be used to reduce in- $5,000 or the adjusted tax basis of the build- means. The legislation permits the mortgage credit certificate to be used to reduce the terest payments on the mortgage. This ing (excluding the land) within a 24-month provision would enable families to ob- period. For buildings in census tracts tar- buyer’s downpayment, rather than to reduce geted as distressed for Mortgage Revenue the interest rate, in order to close this gap. tain a home and preserve historic Bond purposes and those in Enterprise and This provision is limited to historic districts neighborhoods when they would be un- Empowerment Zones, the minimum expendi- which qualify as targeted under the existing able to do so otherwise. ture is $5,000. At least five percent of the Mortgage Revenue Bond program or are lo- Mr. President, the time has come for qualified rehabilitation expenditures must cated in enterprise or empowerment zones. Congress to get serious about urban re- Although the right to receive an Historic be spent on the exterior of the building. newal. For too long, we have sat on the Pass-Through of Credit: Carry-Forward: Rehabilitation Mortgage Credit Certificate is available to all persons entitled to the tax sidelines watching idly as our citizens Recapture. In the event that the rehabilita- slowly abandoned entire homes and tion is performed by a developer, the credit credit, the certificate may not be used by a accrues to the homeowner. The credit cannot person who would be precluded from using neighborhoods in urban settings, leav- be used to offset the developer’s tax liability, the income tax credit because of the Alter- ing cities like Miami in Florida and but instead must be passed through to the native Minimum Tax limitation. others around the nation in financial home purchaser. The entire amount of the Mr. GRAHAM. Mr. President, today I jeopardy. For example, according to credit is available to reduce federal income join my colleague Senator CHAFEE in U.S. Census data, in the decade from tax liability, subject to Alternative Mini- support of the Historic Homeownership 1980 to 1990, Chicago lost 41,000 housing mum Tax limitations. The credit is available Assistance Act. This bill would spur units, Philadelphia 10,000, and St. in the year in which the expenditures are growth and preservation of historic Louis 7,000. The erosion of a sense of made by the taxpayer or a rehabilitated neighborhoods across the country by property is purchased by the homeowner. community and culture once shared by Any unused credit would be carried forward providing a limited tax credit for quali- our urban neighborhoods and towns until fully exhausted. In the event the tax- fied rehabilitation expenditures to his- further magnifies the loss. payer fails to maintain the home as a prin- toric homes. By addressing years of neglect and a cipal residence for five years, the credit is An understanding of the history of general decline in investment in our subject to recapture. the United States serves as one of the older neighborhoods, this bill will em- No ‘‘Passive Loss’’; No Income Limit. The cornerstones supporting this great na- power families and individuals with the credit is not subject to the ‘‘passive loss’’ tion. We find American history re- financial incentives needed to revital- limitations. Further, since the legislation is flected not only in books, films, and intended to promote economic diversity ize historic housing in our urban com- among residents and increase local property, stories, but also in physical structures, munities. income and sales tax revenues, taxpayers are including schools, churches, county Recognizing that the States can best eligible for the credit without regard to in- courthouses, mills, factories, and per- administer laws affecting unique com- come. sonal residences. munities, the act gives power to the March 20, 1997 CONGRESSIONAL RECORD — SENATE S2669 Secretary of the Interior to work with Work States are taken into consider- ployee to elect to receive taxable cash states to implement a number of the ation. compensation on lieu of nontaxable provisions. According to a poll by the respected parking benefits, and for other pur- The Historic Homeownership Assist- Marketing Research Institute, 77 per- poses; to the Committee on Finance. ance Act does not, however, reflect an cent of Americans support Right to THE COMMUTER CHOICE ACT OF 1997 untried proposal. In addition to the ex- Work, and over 50 percent of union Mr. CHAFEE. Mr. President, one of isting commercial historic rehabilita- households believe workers should have the greatest challenges facing metro- tion credit, the proposed bill incor- the right to choose whether or not to politan areas in our Nation is finding a porates features from several state tax join or pay dues to a labor union. That way to reduce traffic congestion. Com- incentives for the preservation of his- should be no surprise. Because what muters in cities across the country toric homes. Colorado, Maryland, New this is all about is freedom. And right spend countless hours on the road trav- Mexico, Rhode Island, Wisconsin, and to work expands every working Ameri- eling to and from work. This traffic Utah have pioneered their own success- can’s personal freedom. places tremendous pressure on our ful versions of a historic preservation Mr. President, I urge my colleagues highway infrastructure and causes tax incentive for homeownership. to support this legislation that expands monumental environmental problems. At the Federal level, this legislation the freedom of hard working Ameri- More than 100 cities fail to meet to- would promote historic home preserva- cans and gives them the freedom to day’s clean air standards. The best way tion nationwide, allowing future gen- choose whether to accept or reject to clean up our air is to reduce the erations of Americans to visit and re- union representation and union dues number of automobiles which are driv- side in homes that tell the unique his- without facing coercion, violence, and en on a daily basis. tory of our communities. The Historic work-place harassment by union offi- Unfortunately, our current tax laws Homeownership Assistance Act will cials. actually encourage commuters to trav- offer enormous potential for saving his- Mr. FAIRCLOTH. Mr. President, el to work in single occupant auto- toric homes and bringing entire neigh- today I join with my good friend, Sen- mobiles. Today, employers can provide borhoods back to life. ator COVERDELL to introduce the Na- parking to their employees as a tax- I urge my colleagues to support this tional Right to Work Act of 1997. This free fringe benefit. As part of the En- bill for the preservation of history. is the same legislation that I intro- ergy Policy Act of 1992, the value of duced during the 104th Congress, and I parking that qualifies for this benefit By Mr. COVERDELL (for himself am delighted to have Senator is limited to $170 per month. By com- and Mr. FAIRCLOTH): COVERDELL as a partner in this effort parison, tax-free transit or van-pool S. 497. A bill to amend the National during the 105th Congress. benefits are limited to only $65 per As I have said before, and continue to Labor Relations Act and the Railway month. Labor Act to repeal the provisions of believe strongly, compulsory unionism There is another aspect of this bene- the Acts that require employees to pay violates the fundamental principle of fit that makes the tax-free parking an union dues or fees as a condition of em- individual liberty—the very principle even greater incentive for employees to ployment; to the Committee on Labor upon which this Nation was founded. drive to work. The fringe benefit must Compulsory unionism basically says and Human Resources. be offered by employers on a take-it- that workers cannot and should not de- THE NATIONAL RIGHT TO WORK ACT OF 1997 or-leave-it basis. In other words, the cide for themselves what is in their Mr. COVERDELL. Mr. President, I employee has the option of accepting best interest. I can think of nothing am pleased to introduce the Coverdell- the employer-paid parking or nothing more offensive to the core American Faircloth National Right to Work Act at all. The tax-exempt status of the of 1997. As many of you know, my es- principles of liberty and freedom. The National Right to Work Act will employer-provided parking is lost if teemed colleague from North Carolina, address this most fundamental problem employees are offered a choice between Senator LAUCH FAIRCLOTH, introduced of federal labor policy: does America the parking fringe benefit and taxable this language last Congress and I com- believe that working men and women salary. mend Senator FAIRCLOTH for his out- Let me illustrate the problem this should be forced, as a condition of em- standing leadership on this issue. creates. Suppose an employer has two ployment, to pay dues or fees to a labor This bill does not add a single word employees, Sally and Jim. Under cur- union? I believe, as does my colleague, to Federal law. Rather, it would repeal rent law, the employer can pay for a Senator COVERDELL and many others, those sections of the National Labor parking space at a garage next door. that no one should be forced to pay Relations Act and Railway Labor Act This fringe benefit will not be taxable that authorize the imposition of union dues just to get or keep a job. The National Right to Work Act to Sally and Jim so long as the cost forced-dues contracts on working would not change a single word of Fed- does not exceed $170 per month. But, Americans. I believe that every worker eral law. Rather, the measure would re- let’s assume that Sally would prefer to must have the right to join or support peal those sections of the National receive cash instead of a parking space, a labor union. This bill protects that Labor Relations Act and Railway because she can commute to work with right. But no worker should ever be Labor Act that authorize the imposi- her husband or take public transpor- forced to join a union. tion of forced-dues contracts on work- tation. The way the law is currently I am happy to say that my own state, ing Americans. I believe that every written, Sally’s employer cannot offer Georgia, is among one of the 21 states worker must have the right to join or her cash instead of the parking fringe that is a ‘‘Right to Work’’ state and support a labor union. This bill pro- benefit, because it would cause Jim’s has been since 1947. According to U.S. tects that right. However, no worker parking fringe benefit to become tax- News and World Report, 7 of the should be forced to join a union. able. strongest 10 State economies in the na- In 1965, Senator Everett Dirksen said The Commuter Choice Act of 1997, tion have Right to Work laws. Workers of compulsory unionism, ‘‘Is there a which I am introducing today along who have the freedom to choose wheth- more fundamental right than to make with my colleague Senator MOYNIHAN, er or not to join a union have a higher a living for one’s family without being corrects this bias in the Tax Code by standard of living than their counter- compelled to join a labor organiza- allowing employers to offer their em- parts in non-Right to Work States. Ac- tion?’’ I could not agree more. ployees the choice of tax-free parking cording to Dr. James Bennett, an econ- Mr. President, again let me say that or taxable cash compensation. This omist with the highly respected eco- I am pleased to introduce today with proposal is completely voluntary. Em- nomics department at George Mason Senator COVERDELL the National Right ployers are not required to offer cash University, on average, urban families to Work Act of 1977. in lieu of parking. Furthermore, it has in Right to Work States have approxi- absolutely no affect on employees mately $2,852 more annual purchasing By Mr. CHAFEE (for himself and wishing to continue receiving tax-free power than urban families in non-Right Mr. MOYNIHAN): parking. That fringe benefit would re- to Work States when the lower taxes, S. 498. A bill to amend the Internal main exempt from income and payroll housing and food costs of Right to Revenue Code of 1986 to allow an em- taxes. However, my proposal would S2670 CONGRESSIONAL RECORD — SENATE March 20, 1997 allow employees not interested in the efits not in lieu of compensation) is amended help to achieve this goal by providing parking fringe benefit to opt instead by adding at the end the following new sen- an exemption from the estate tax for for taxable cash compensation. tence: ‘‘This paragraph shall not apply to the value of land that is subject to a Intuitively, I believe Voluntary Cash any qualified parking provided in lieu of qualified, permanent conservation compensation which otherwise would have Out will have positive revenue con- been includible in gross income of the em- easement. sequences for the Federal Government. ployee.’’ This bill is similar to legislation that Some individuals who currently re- (b) EFFECTIVE DATE.—The amendment we introduced during the 104th Con- ceive tax-free parking will instead opt made by this section shall apply to qualified gress and was included in the Balanced for taxable cash compensation. For ex- parking provided after December 31, 1997. Budget Act of 1995. It excludes land ample, trading in a parking space in subject to a conservation easement many cities could be worth almost By Mr. CHAFEE (for himself, Mr. from the estate and gift taxes. Develop- $2,000 in pretax salary annually, a pow- BAUCUS, and Mr. GREGG): ment rights retained by the family— erful incentive to consider alternative S. 499. A bill to amend the Internal most frequently the ability to use the ways of getting to work. An over- Revenue Code of 1986 to provide an property for a commercial purpose—re- whelming majority of employees re- election to exclude from the gross es- main subject to the estate tax. ceive tax-free parking from their em- tate of a decedent the value of certain In order to target the incentives ployers—95 percent who drive to work, land subject to a qualified conservation under this bill to those areas that are according to the National Personal easement, and to make technical truly at risk for development, the bill Transportation Survey. So, even if changes to alternative valuation rules; is limited to land that falls within a 50- only a small portion of this population to the Committee on Finance. mile radius of a metropolitan area, a chooses the taxable cash it should lead THE AMERICAN FARM AND RANCH PROTECTION national park or a national wilderness to a substantial revenue windfall. ACT OF 1997 area, or an urban national forest. In 1992, the State of California en- Mr. CHAFEE. Mr. President, a seri- Conservation easements, which are acted legislation that required employ- ous environmental problem facing the entirely voluntary, are agreements ne- ers with 50 or more employees to offer country today is the loss of open space gotiated by landowners in which a re- cash in lieu of parking if the employer to development. All across the country, striction upon the future use of land is subsidized commuter parking. A recent farms, ranches, forests, and wetlands imposed in order to conserve those as- study of eight employers who complied are forced to give way to the pressures pects of the land that are publicly sig- with this law provides some evidence of for new office buildings, shopping nificant. To qualify for the estate tax how businesses and their employees malls, and housing developments. exemption under this bill, such ease- might react to Commuter Choice. For America is losing over 4 square miles ments must be perpetual and must be the nearly 1,700 employees of the eight of land to development every day. In made to preserve open space, to protect firms, the solo driver share fell from 76 Rhode Island, over 11 thousand acres of the natural habitat of fish, wildlife, or to 63 percent; to carpool share in- farmland have been lost to develop- plants, to meet a governmental con- creased from 14 to 23 percent. More im- ment since 1974. In many instances, servation policy, or to preserve a his- portantly, because many employees this is simply the natural outgrowth of torically important land area. voluntarily chose taxable cash over urbanization of our society. Other I urge my colleagues to join me in tax-exempt parking, State and Federal times it is the direct result of improper this effort to save environmentally income tax revenues increased by $56 planning at the State and local levels. sensitive open spaces. per employee per year. But frequently, the pressure comes Mr. President, I ask unanimous con- Finally, employer interest in pro- from the need to raise funds to pay es- sent that additional material be print- grams like Commuter Choice will in- tate taxes. For those families where ed in the RECORD. crease as pressure builds to reduce traf- undeveloped land represents a signifi- There being no objection, the mate- fic congestion and air pollution in our cant portion of the estate’s total value, rial was ordered to be printed in the Nation’s cities. Many urban areas that the need to pay the tax creates power- RECORD, as follows: ful pressure to develop or sell off part are in nonattainment for national air S. 499 or all of the land or to liquidate the quality standards have incorporated Be it enacted by the Senate and House of Rep- employee commute option programs as timber resources of the land. Because resentatives of the United States of America in part of their State implementation land is appraised by the Internal Reve- Congress assembled, plans. These programs are hampered, nue Service according to its highest SECTION 1. SHORT TITLE. however, by the current tax rules, and best use, and such use is often its This Act may be cited as the ‘‘American which prohibit employees from trading development value, the effect of the Farm and Ranch Protection Act of 1997’’. in tax-free parking for cash and utiliz- tax is to make retention of undevel- SEC. 2. TREATMENT OF LAND SUBJECT TO A ing alternative commute options. The oped land impossible. QUALIFIED CONSERVATION EASE- Commuter Choice Act removes that In addition, our current estate tax MENT. prohibition. policy results in complicated valuation (a) ESTATE TAX WITH RESPECT TO LAND SUBJECT TO A QUALIFIED CONSERVATION EASE- I encourage my colleagues to cospon- disputes between the donor’s estate MENT.—Section 2031 of the Internal Revenue sor this legislation, which offers great- and the Internal Revenue Service. In Code of 1986 (relating to the definition of er flexibility to employers and employ- many cases, the additional costs in- gross estate) is amended by redesignating ees, and which will have a substantial curred as a result of these disagree- subsection (c) as subsection (d) and by in- positive effect on our air quality. ments cause a potential donor of a con- serting after subsection (b) the following new Mr. President, I ask unanimous con- servation easement to decide not to subsection: sent that the text of the bill be printed make the contribution. ‘‘(c) ESTATE TAX WITH RESPECT TO LAND in the RECORD. These open spaces improve the qual- SUBJECT TO A QUALIFIED CONSERVATION EASE- There being no objection, the bill was ity of life for Americans throughout MENT.— ‘‘(1) IN GENERAL.—If the executor makes ECORD this great Nation and provide impor- ordered to be printed in the R , as the election described in paragraph (4), then, follows: tant habitat for fish and wildlife. The except as otherwise provided in this sub- S. 498 question is how do we conserve our section, there shall be excluded from the Be it enacted by the Senate and House of Rep- most valuable resource during this gross estate the value of land subject to a resentatives of the United States of America in time of significant budget constraints. qualified conservation easement. Congress assembled, Mr. President, I think we need to re- ‘‘(2) TREATMENT OF CERTAIN INDEBTED- SECTION 1. SHORT TITLE. structure the Nation’s estate tax laws NESS.— This Act may be cited as the ‘‘Commuter to remove the disincentive for private ‘‘(A) IN GENERAL.—The exclusion provided Choice Act of 1997’’. property owners to conserve environ- in paragraph (1) shall not apply to the extent that the land is debt-financed property. SEC. 2. ELECTION TO RECEIVE TAXABLE CASH mentally significant land. The Amer- COMPENSATION IN LIEU OF NON- ‘‘(B) DEFINITIONS.—For purposes of this TAXABLE PARKING BENEFITS. ican Farm and Ranch Protection Act, paragraph— (a) IN GENERAL.—Section 132(f)(4) of the In- which I am introducing today along ‘‘(i) DEBT-FINANCED PROPERTY.—The term ternal Revenue Code of 1986 (relating to ben- with Senators BAUCUS and GREGG, will ‘debt-financed property’ means any property March 20, 1997 CONGRESSIONAL RECORD — SENATE S2671 with respect to which there is an acquisition ‘‘(A) LAND SUBJECT TO A QUALIFIED CON- donor and references to the date of the dece- indebtedness (as defined in clause (ii)) on the SERVATION EASEMENT.—The term ‘land sub- dent’s death shall be treated as references to date of the decedent’s death. ject to a qualified conservation easement’ the date of the transfer by the donor.’’ ‘‘(ii) ACQUISITION INDEBTEDNESS.—The term means land— (b) EFFECTIVE DATE.—The amendment ‘acquisition indebtedness’ means, with re- ‘‘(i) which is located in or within 50 miles made by this section shall apply to gifts spect to debt-financed property, the unpaid of an area which, on the date of the dece- made after December 31, 1996. amount of— dent’s death— SEC. 4. QUALIFIED CONSERVATION CONTRIBU- ‘‘(I) the indebtedness incurred by the donor ‘‘(I) is a metropolitan area (as defined by TION IS NOT A DISPOSITION. in acquiring such property, the Office of Management and Budget), (a) QUALIFIED CONSERVATION CONTRIBUTION ‘‘(II) the indebtedness incurred before the ‘‘(II) is a National Park or wilderness area IS NOT A DISPOSITION.—Subsection (c) of sec- acquisition of such property if such indebted- designated as part of the National Wilder- tion 2032A of the Internal Revenue Code of ness would not have been incurred but for ness Preservation System (unless it is deter- 1986 (relating to alternative valuation meth- such acquisition. mined by the Secretary that land in or with- od) is amended by adding at the end the fol- ‘‘(III) the indebtedness incurred after the in 50 miles of such a park or wilderness area lowing new paragraphs: acquisition of such property if such indebted- is not under significant development pres- ‘‘(8) QUALIFIED CONSERVATION CONTRIBUTION ness would not have been incurred but for sure), or IS NOT A DISPOSITION.—A qualified conserva- such acquisition and the incurrence of such ‘‘(III) is an Urban National Forest (as des- tion contribution (as defined in section indebtedness was reasonably foreseeable at ignated by the Forest Service), 170(h)) by gift or otherwise shall not be the time of such acquisition, except that in- ‘‘(ii) which was owned by the decedent or a deemed a disposition under subsection debtedness incurred after the acquisition of member of the decedent’s family at all times (c)(1)(A). such property is not acquisition indebtedness during the 3-year period ending on the date ‘‘(9) EXCEPTION FOR REAL PROPERTY IS LAND if incurred to carry on activities directly re- of the decedent’s death, and SUBJECT TO A QUALIFIED CONSERVATION EASE- lated to farming, ranching, forestry, horti- ‘‘(iii) with respect to which a qualified con- MENT.—If qualified real property is land sub- culture, or viticulture, and servation easement is or has been made by ject to a qualified conservation easement (as ‘‘(IV) the extension, renewal, or refinanc- the decedent or a member of the decedent’s defined in section 2031(c)), the preceding ing of an acquisition indebtedness. family. paragraphs of this subsection shall not ‘‘(3) TREATMENT OF RETAINED DEVELOPMENT ‘‘(B) QUALIFIED CONSERVATION EASEMENT.— apply.’’ RIGHT.— The term ‘qualified conservation easement’ (b) LAND SUBJECT TO A QUALIFIED CON- ‘‘(A) IN GENERAL.—Paragraph (1) shall not means a qualified conservation contribution SERVATION EASEMENT IS NOT DISQUALIFIED.— apply to the value of any development right (as defined in section 170(h)(1)) of a qualified Subsection (b) of section 2032A of such Code retained by the donor in the conveyance of a real property interest (as defined in section (relating to alternative valuation method) is qualified conservation easement. 170(h)(2)(C)), except that for this purpose the amended by adding at the end the following ‘‘(B) TERMINATION OF RETAINED DEVELOP- term ‘qualified real property interest’ shall paragraph: MENT RIGHT.—If every person in being who not include any structure or building con- ‘‘(E) If property is otherwise qualified real has an interest (whether or not in posses- stituting ‘a certified historic structure’ as property, the fact that it is land subject to a sion) in such land shall execute an agree- defined in section 170(h)(4)(B), and the re- qualified conservation easement (as defined ment to extinguish permanently some or all striction on the use of such interest de- in section 2031(c)) shall not disqualify it of any development rights (as defined in sub- scribed in section 170(h)(2)(C) shall include a under this section.’’ paragraph (D)) retained by the donor on or prohibition on commercial recreational ac- (c) EFFECTIVE DATE.—The amendments before the date for filing the return of the tivity, except that the leasing of fishing and made by this section shall apply with respect tax imposed by section 2001, then any tax im- hunting rights shall not be considered com- to contributions made, and easements grant- posed by section 2001 shall be reduced accord- mercial recreational activity when such ingly. Such agreement shall be filed with the ed, after December 31, 1996. leasing is subordinate to the activities of return of the tax imposed by section 2001. SEC. 5. QUALIFIED CONSERVATION CONTRIBU- farming, ranching, forestry, horticulture or The agreement shall be in such form as the TION WHERE SURFACE AND MIN- ERAL RIGHTS ARE SEPARATED. Secretary shall prescribe. viticulture. ‘‘(C) MEMBER OF FAMILY.—The term ‘mem- (a) IN GENERAL.—Section 170(h)(5)(B)(ii) of ‘‘(C) ADDITIONAL TAX.—Failure to imple- ment the agreement described in subpara- ber of the decedent’s family’ means any the Internal Revenue Code of 1986 (relating graph (B) within 2 years of the decedent’s member of the family (as defined in section to special rule) is amended to read as fol- death shall result in the imposition of an ad- 2032A(e)(2)) of the decedent.’’ lows: ditional tax in the amount of tax which ‘‘(7) APPLICATION OF THIS SECTION TO INTER- ‘‘(ii) SPECIAL RULE.—With respect to any would have been due on the retained develop- ESTS IN PARTNERSHIPS, CORPORATIONS, AND contribution of property in which the owner- ment rights subject to such agreement. Such TRUSTS.—The Secretary shall prescribe regu- ship of the surface estate and mineral inter- additional tax shall be due and payable on lations applying this section to an interest ests has been and remains separated, sub- the last day of the 6th month following the in a partnership, corporation, or trust which, paragraph (A) shall be treated as met if the end of the 2-year period. with respect to the decedent, is an interest probability of surface mining occurring on ‘‘(D) DEVELOPMENT RIGHT DEFINED.—For in a closely held business (within the mean- such property is so remote as to be neg- purposes of this paragraph, the term ‘devel- ing of paragraph (1) of section 6166(b)).’’ ligible.’’ opment right’ means the right to establish (b) CARRYOVER BASIS.—Section 1014(a) of (b) EFFECTIVE DATE.—The amendment or use any structure and the land imme- such Code (relating to basis of property ac- made by this section shall apply with respect diately surrounding it for sale (other than quired from a decedent) is amended by strik- to contributions made after December 31, the sale of the structure as part of a sale of ing the period at the end of paragraph (3) and 1992, in taxable years ending after such date. inserting ‘‘, or’’ and by adding after para- the entire tract of land subject to the quali- graph (3) the following new paragraph: fied conservation easement), or other com- SUMMARY OF THE AMERICAN FARM AND RANCH ‘‘(4) to the extent of the applicability of mercial purpose which is not subordinate to PROTECTION ACT OF 1997 the exclusion described in section 2031(c), the and directly supportive of the activity of The American Farm and Ranch Protection basis in the hands of the decedent.’’ farming, forestry, ranching, horticulture, or Act protects family lands and encourages the (c) EFFECTIVE DATE.—The amendments viticulture conducted on land subject to the made by this section shall apply to estates of voluntary conservation of farmland, ranches, qualified conservation easement in which decedents dying after December 31, 1996. forest land, wetlands, wildlife habitat, open such right is retained. space and other environmentally sensitive SEC. 3. GIFT TAX ON LAND SUBJECT TO A QUALI- ‘‘(4) ELECTION.—The election under this FIED CONSERVATION EASEMENT. property. It enables farmers and ranchers to subsection shall be made on the return of the (a) GIFT TAX WITH RESPECT TO LAND SUB- continue to own and work their land by tax imposed by section 2001. Such an elec- JECT TO A QUALIFIED CONSERVATION EASE- eliminating the estate and gift tax burden tion, once made, shall be irrevocable. MENT.—Section 2503 of the Internal Revenue that threatens the current generation of ‘‘(5) CALCULATION OF ESTATE TAX DUE.—An Code of 1986 (relating to taxable gifts) is owners. The bill does this in the following executor making the election described in amended by adding at the end the following ways: paragraph (4) shall, for purposes of calculat- new subsection: By excluding from estate and gift taxes the ing the amount of tax imposed by section ‘‘(h) GIFT TAX WITH RESPECT TO LAND SUB- value of land on which a qualified conserva- 2001, include the value of any development JECT TO A QUALIFIED CONSERVATION EASE- tion easement has been granted if the land is right (as defined in paragraph (3)) retained MENT.—The transfer by gift of land subject located in or within a 50-mile radius of a by the donor in the conveyance of such to a qualified conservation easement shall metropolitan area, a National Park, or a wil- qualified conservation easement. The com- not be treated as a transfer of property by derness area that is part of the National Wil- putation of tax on any retained development gift for purposes of this chapter. For pur- derness Area System, or an Urban National right prescribed in this paragraph shall be poses of this subsection, the term ‘land sub- Forest; and, done in such manner and on such forms as ject to a qualified conservation easement’ By clarifying that land subject to a quali- the Secretary shall prescribe. has the meaning given to such term by sec- fied conservation easement can also qualify ‘‘(6) DEFINITIONS.—For purposes of this sub- tion 2031(c); except that references to the de- for special use valuation under Code section section— cedent shall be treated as references to the 2032A. S2672 CONGRESSIONAL RECORD — SENATE March 20, 1997 The bill also contains a number of safe- vide an incentive for the permanent lands. I urge my colleagues to join on guards to ensure that the benefits of the ex- preservation of environmentally sig- the bill as cosponsors, and encourage clusion are not abused. These safeguards in- nificant land, so that our legacy to our the administration to support the leg- clude the following: The easement must be perpetual and meet children will include Montana’s open islation. the requirements of Code Section 170(h), gov- lands. The American Farm and Ranch erning deductions for charitable contribu- Protection Act, which Senator CHAFEE By Mrs. BOXER (for herself and tions of easements; and I are introducing today, will help Mrs. FEINSTEIN): Easements retaining the right to develop to achieve this goal by providing an ex- S. 500. A bill to authorize emergency the property for commercial recreational use emption from the estate tax for the appropriations for cleanup and repair would not be eligible, while other retained value of land that is subject to a quali- of damages to facilities of Yosemite development rights would be taxed; fied, permanent conservation ease- National Park and other California na- Land excluded from the estate tax would tional parks caused by heavy rains and receive a carryover, rather than stepped-up, ment. basis for purposes of calculating gain on a Conservation easements, which are flooding in December 1996 and January subsequent sale; entirely voluntary, are agreements ne- 1997, and for other purposes; to the The land must have been owned by the de- gotiated by landowners in which a re- Committee on Energy and Natural Re- cedent or a member of the decedent’s family striction upon the future use of land is sources. for at least three years immediately prior to imposed in order to conserve those as- THE YOSEMITE EMERGENCY RESTORATION AND the decedent’s death; and, pects of the land that are publicly sig- CONSTRUCTION ACT The easement must have been donated by Mrs. BOXER. Mr. President, I am the decedent or a member of the decedent’s nificant. To qualify for the estate tax family. exemption under this bill, the ease- today introducing a bill that will au- Under Section 170(h) easements will qual- ments must be perpetual and must be thorize emergency appropriations for ify only if they are made to a federal, state made to preserve open space, to protect cleanup and repair of damages to facili- or local governmental unit or certain non- the natural habitat of fish, wildlife or ties of Yosemite National Park and profit groups. In addition, they must be plants, to meet a government conserva- other National Park Service areas in made: To preserve land areas for outdoor tion policy, or to preserve a important California caused by heavy rains and recreation by the general public; to protect flooding in December 1996 and January the natural habitat of fish, wildlife, or historical heritage area. plants; or, to preserve open space (including Title 5 of this bill represents an ef- 1997. farmland and forest land). fort to clarify an area of the law that I expect most of the issues regarding The bill is effective for decedents dying, or is of particular importance in Mon- emergency cleanup and repair due to gifts made, after December 31, 1996. tana. Under current law, when mineral floods in California to be addressed Mr. BAUCUS. Mr. President, I am rights have been severed from the sur- through the appropriations process. I very pleased to join my colleague Sen- face rights in a piece of property, and a do not therefore expect this bill to be ator CHAFEE in introducing the Amer- qualified conservation easement is cre- taken up by the appropriate Senate ican Farm and Ranch Protection Act ated by the owner of the surface rights committee and passed by the Senate. today. This bill represents a bipartisan for the benefit of a nonprofit entity, The primary purpose of introducing effort to help protect the open lands of that owner is unable to take a chari- this bill is to set a benchmark for re- our great country. table deduction unless two conditions covery and cleanup efforts at Yosemite Montana is know as Big Sky country are met: the probability of surface National Park. for a reason, our expansive open areas mining occurring on the property must My bill takes several steps beyond dedicated to farming, ranching, and be so remote as to be negligible, and the bill that was introduced last month forestry rather than building and de- the severance of the mineral rights by Congressman DOOLITTLE and velopment. Our open lands represent a must have occurred before June 13, RADANOVICH: way of life in Montana, they are part of 1976. In Montana, severance of mineral First, it authorizes emergency fund- our environmental and cultural herit- rights for many properties occurred ing. Second, it authorizes a specific age. And they are rapidly disappearing many generations earlier, and they amount—$200 million in emergency as ranches and farms make way for have often been disbursed to farflung funds in fiscal year 1997. Third, it speci- houses and building complexes. relatives in very small portions. So the fies that funds shall only be spent in a America is losing over 4 square miles probability that mining will occur is, manner that is consistent with the Yo- of land to development every day. In indeed, very remote. The Internal Rev- semite general management plan, the Montana alone, since 1987 over 560,000 enue Service, however, has asserted concession services plan, and when acres of farmland have been taken out that some uncertainty exists about the adopted, the Yosemite Valley housing of farm use. Since 1974 the number of congressional intent behind the term plan, and the valley implementation acres of land taken our of farm use ex- ‘‘ownership of the surface estate and plan. Fourth, it specifies that funds ceeds 2.5 million. mineral interest first separated after spent on repair and rebuilding of con- Frequently, the pressure to abandon June 12, 1976.’’ cessions facilities shall be recovered by the farm use of land comes from the I was the original authority of the the Secretary of the Interior to the need to raise funds to pay estate taxes. language in question, and I have com- greatest extent practicable according For those families where undeveloped municated with the IRS regarding my to the Department of the Interior’s land represents a significant portion of intention when the language was draft- contract with the concessioner. Fifth, the estate’s total value, often the heirs ed. However, IRS has been unwilling to it authorizes emergency grants to sat- must develop or sell off part or all of issue a favorable letter ruling which ellite communities around Yosemite to the land merely in order to pay the would clarify this issue, and as a con- provide mass transit visitor transpor- tax. Because land is typically appraised sequence, it is impossible for many tation into the park during repair and by the Internal Revenue Service ac- Western landowners to make voluntary restoration activities on access roads. cording to its highest and best use, charitable contributions of conserva- Sixth, it authorizes emergency appro- which usually assumes development on tion easements in order to protect im- priations for other California parks the property, retention of undeveloped portant Western land. In light of the that suffered flood damage including land is very difficult. confusion that this date has caused, Redwood National Park, Sequoia-Kings I have attempted to resolve this and because it has no policy justifica- Canyon National Park, and others. problem through changes in the estate tion, our legislation would eliminate Seventh, it authorizes $7 million to be tax itself by my sponsorship of the bi- the 1976 date from the statute. appropriated in fiscal year 1998 and partisan Estate Tax Relief for the I believe this bill can be an impor- such sums as may be necessary for American Family Act of 1997. That bill tant tool for America’s farm and ranch each fiscal year thereafter for a mass will make it easier for all family- families to utilize in preserving their transit system for Yosemite. owned businesses, including farms and homesteads. At the same time, it Mr. President, the primary goal of ranches, to be passed on to succeeding makes a significant contribution to the the emergency restoration and con- generations. At the same time, how- larger public good of conserving Ameri- struction activities authorized in this ever, I believe it is important to pro- ca’s increasingly threatened rural bill is to reopen Yosemite National March 20, 1997 CONGRESSIONAL RECORD — SENATE S2673 Park and restore services to Park visi- ural resources, cultural resources, and National Park and other national parks in tors as quickly and safely as possible. lost and damaged property, both within the State of California caused by heavy rains The importance of emergency fund- the park boundaries and at the El Por- and flooding in December 1996 and January ing for Yosemite cannot be overstated. tal administrative site servicing the 1997. It is a unique national treasure, recog- (2) INCLUDED ACTIVITIES.—Activities by the park. Secretary under paragraph (1) shall include— nized all over the world for its spec- Also, funds are authorized to repair (A) repair, restoration, and, if appropriate, tacular natural beauty. Over 1.4 mil- and relocation of park employee hous- relocation of infrastructure vital to oper- lion people visit the park every year ing and the Resource Management Of- ations at Yosemite National Park, including including tens of thousands of inter- fice; repair, maintenance, and opening roads, trails, utilities, buildings, grounds (in- national visitors who travel to Califor- of Tioga Pass Road within the bound- cluding campgrounds), natural resources, nia for the sole purpose of staying in aries of the park; and repair and expe- cultural resources, and lost and damaged the park to experience nature. John ditious opening of highways 120, 140, property in the park and at the El Portal ad- Muir—one of our nation’s founding ministrative site servicing the park; and 41 within the boundaries of the (B) repair and, if appropriate, relocation of leaders of environmental conserva- park. Yosemite National Park employee housing tion—first encountered the majestic The bill requires that funds spent on and the Resource Management Office; Yosemite Valley in 1864 and imme- repair and relocation of concession-op- (C) repair and, if appropriate, relocation of diately realized the importance of pre- erated rental cabins, motel rooms, concession-operated rental cabins, motel serving its natural wonders. Muir’s rental structures, and concession em- rooms, rental structures, and concession em- foresight and passion resulted in the ployee housing and facilities be recov- ployee housing and facilities; establishment of Yosemite National ered by the Department of the Interior (D) repair, maintenance, and opening of Park in October 1890. At its onset, the to the greatest extent practicable, Tioga Pass Road in Yosemite National Park; (E) repair and expeditious opening of High- park included 60,000 acres miles of sce- within the provisions of the concession ways 120, 140, and 41 in Yosemite National nic wild lands. Today, some 106 years contract between the Department of Park; later, the park embraces over 761,236 the Interior and the Yosemite Conces- (F) any other repair and restoration that is acres of granite peaks, broad meadows, sion Services. necessary for the expeditious and complete glacially carved domes, giant sequoias, Mr. President, a key aspect to the opening of Yosemite National Park; secluded tarns, and breathtaking wa- bill is the authorization of $2.5 million (G) making emergency grants to satellite terfalls. in emergency grants to satellite com- communities around Yosemite National This winter, tropical storms with munities around Yosemite National Park to provide mass transit visitor trans- portation into the park during repair and heavy rain caused serious flooding in Park for the purpose of providing mass restoration activities on access roads to the the park. Yosemite’s major rivers and transit visitor transportation into the park; and tributaries flooded many park areas park during repair and restoration ac- (H) repair and restoration of damage and caused severe damage to infra- tivities on access roads to the park. caused by heavy rains and flooding in De- structure. Over 350 damage assess- Other California parks suffered flood cember 1996 and January 1997 at Redwood ments have been completed by engi- damage. My bill would authorize emer- National Park, Sequoia-Kings Canyon Na- neers, architects, resource specialists, gency funds for Redwood National tional Park, Lassen Volcanic National Park, and other technical experts. Their first Park, Sequoia-Kings Canyon National Whiskeytown National Recreation Area, Park, Lassen Volcanic National Park, Devils Postpile National Monument, and damage assessment report shows seri- Lava Beds National Monument. Whiskeytown National Recreation ous damage to the four main routes SEC. 3. EMERGENCY FUNDING FOR YOSEMITE leading into the park, major electrical Area, Devils Postpile National Monu- SATELLITE COMMUNITIES. and sewer systems, 224 units of em- ment, and Lava Beds National Monu- Of any amounts made available under sec- ployee housing, over 500 guest lodging ment. tion 2(a), the Secretary shall make available units, over 350 campsites, 17 restora- Last, Mr. President, my bill author- not less than $2,500,000 to make grants de- tion projects, and over 10 archeological izes $7 million to be appropriated in fis- scribed in section 2(b)(2)(G). sites. cal year 1998 and such sums as may be SEC. 4. CAPITAL RECOVERY FROM CONCES- According to the National Park Serv- necessary for each fiscal year there- SIONAIRES. To the extent practicable under the con- ice, full recovery will take years. We after to the Secretary of Interior for cession contract between the Secretary and now begin the recovery period during the purpose of helping establish a mass Yosemite Concession Services, the Secretary which, interim solutions will be put in transit system for Yosemite National shall recover from Yosemite Concession place such as temporary housing and Park—specifically for the purchase of Services any amount used under section lodging while permanent construction electric buses and alternative-fueled 2(b)(2)(C). is being completed. buses. SEC. 5. AUTHORIZATION OF APPROPRIATIONS The Yosemite Emergency Restora- Mr. President, I ask unanimous con- FOR MASS TRANSIT SYSTEM FOR YO- tion and Reconstruction Act would au- sent that the text of the bill be printed SEMITE NATIONAL PARK. (a) AUTHORIZATION.—There are authorized thorize $200 million in emergency funds in the RECORD. to be appropriated to carry out this section to be appropriated to the Secretary of There being no objection, the bill was $7,000,000 for fiscal year 1998 and such sums Interior for cleanup and repair of flood ordered to be printed in the RECORD, as as are necessary for each fiscal year there- damages to the facilities of Yosemite follows: after. National Park caused by heavy rains S. 500 (b) USE OF FUNDS.— and flooding in December 1996 and Jan- Be it enacted by the Senate and House of Rep- (1) IN GENERAL.—The Secretary shall use uary 1997, and other national parks in resentatives of the United States of America in amounts made available under subsection (a) Congress assembled, to establish a mass transit system at Yosem- the State of California. The funds are ite National Park. SECTION 1. SHORT TITLE. authorized to remain available until (2) INCLUDED ACTIVITIES.—Activities by the This Act may be cited as the ‘‘Yosemite expended. Secretary under paragraph (1) shall include— Emergency Restoration and Construction The authorization requires that any (A) using not more than $1,500,000 for the Act of 1997’’. emergency funds spent at Yosemite be purchase of electric buses; and consistent with the Yosemite General SEC. 2. AUTHORIZATION OF EMERGENCY APPRO- (B) using not more than $5,500,000 for the PRIATIONS FOR CLEANUP AND RE- purchase of alternative-fueled buses. Management Plan, the Concession PAIR OF YOSEMITE NATIONAL PARK. Services Plan, and when adopted, the (a) AUTHORIZATION OF APPROPRIATIONS.— SEC. 6. CONSISTENCY WITH PLANS. Yosemite Valley Housing Plan, and the There is authorized to be appropriated to Activities at Yosemite National Park by Valley Implementation Plan. carry out this section $200,000,000 for fiscal the Secretary under this Act shall be con- Funds are authorized to be spent on year 1997, to remain available until ex- sistent with the Yosemite General Manage- pended. ment Plan, the Concession Services Plan, the repair, restoration, and relocation, Yosemite Valley Housing Plan, and the Val- where appropriate, of infrastructure (b) USE OF FUNDS.— (1) IN GENERAL.—The Secretary of the Inte- ley Implementation Plan. vital to Yosemite National Park oper- rior (referred to in this Act as the ‘‘Sec- ations, including but not limited to retary’’) shall use amounts made available By Mr. MACK (for himself, Mr. roads, trails, utilities, buildings, under subsection (a) for cleanup and repair of SHELBY, Mr. COCHRAN, Mr. grounds—including campgrounds—nat- flood damage to the facilities of Yosemite D’AMATO, and Mr. HAGEL): S2674 CONGRESSIONAL RECORD — SENATE March 20, 1997 S. 501. A bill to amend the Internal for life’s goals, like a downpayment on a it’s too difficult to index debts for tax pur- Revenue Code of 1986 to provide all tax- home, a college education or retirement. poses, shouldn’t we leave the system the way payers with a 50-percent deduction for More than 40% percent of families own it is? capital gains, to increase the exclusion stocks, either directly or indirectly, includ- A: No. This argument confuses key dif- ing more than 25% of the families making ferences between equity and debt. Theoreti- for gain on qualified small business between $10,000 and $25,000 per year.1 And cally, the tax code could let lenders index stock, to index the basis of certain cap- contrary to conventional wisdom, cutting their interest income, so they only have to ital assets, to allow the capital loss de- the capital gains tax will increase govern- pay taxes on the interest they earn over and duction for losses on the sale or ex- ment revenue, making it easier to balance above inflation. But for every $1 that lenders change of an individual’s principal resi- the budget. reduce their taxable income, borrowers dence, and for other purposes; to the One way to cut the capital gains tax is to would have to reduce the amount of interest Committee on Finance. limit the tax to real increases in the prices they deduct. Overall, debt transactions of assets, over and above inflation. This is would still feel the same tax bite. Only the THE RETURN CAPITAL TO THE AMERICAN PEOPLE called indexing. Without indexing, effective distribution of the taxes would change: ACT tax rates can be much higher than the gov- Lenders would pay less; borrowers would pay Mr. MACK. Mr. President, today I am ernment’s official rate. Consider a couple more. But lenders and borrowers already ap- introducing legislation, along with that buys $10,000 worth of stocks in 1966, to portion the tax burden between themselves. Senator SHELBY, which provides real help pay for their retirement. In 1996, they It’s factored into the interest rate. This in- cuts in the capital gains rate and in- would have about $79,000 worth of stocks.2 terest rate also reflects the inflation the two dexes capital gains to account for in- Cashing-in these stocks could require a tax parties expect, as well as the risk that infla- of about $19,000.3 But much of their gain—the flation. As we work to achieve a bal- tion will differ in either party’s favor. difference between their initial investment By contrast, bargaining over tax costs anced budget, it is our belief that a and the $79,000 they end up with—was due to doesn’t happen with equity. Unlike with real reduction in the capital gains rate inflation, not real increases in purchasing debts, nobody deducts capital gains as a cost. is essential to ensure greater growth, power. In fact, the couple only had about Indexing gains would not simply shift the innovation, and prosperity. Accord- $30,000 in real gains, over and above infla- tax burden from one party to another. It ingly, the legislation we have proposed tion.4 And a tax of $19,000 or $30,000 in gains would reduce the total tax burden placed on offers the best elements of existing is an effective tax rate of 63%. investments in equity, to reflect the erosion Chart 1 shows a history of the difference of capital gains by inflation. capital gains proposals. between the top official tax rate on capital ENDNOTES Perhaps most importantly, this pro- gains and the top effective tax rate, taking posal ensures that homeowners, family inflation into account.5 As Chart 1 shows, 1 Family Finances in the U.S.: Recent Evidence farms, and small businesses are not pe- the effective tax rate on capital gains can from the Survey of Consumer Finances, Federal Re- serve Bulletin, January 1997. Indirect stock owner- nalized for inflationary—phantom— greatly exceed the official rate, even going ship includes owned through mutual funds or retire- gains by providing for the indexation of well above 100%. In fact, if an investor sells ment accounts. capital gains. The importance of index- an asset that increased in price, but which 2 Between 1966 and 1996 the Standard and Poor’s 500 ation is made clear in the accompany- didn’t keep pace with inflation, she would stock index rose from 85.26 to 670.81. have to pay taxes without enjoying any real 3 Twenty-eight percent of the capital gain. ing report recently prepared by the gain at all! It doesn’t take much of an imagi- 4 The consumer price index for urban worker rose Joint Economic Committee. nation to see how the fear of such taxes from 32.5 in 1966 to 157 in 1996. This makes the real basis about $48,000 in 1996. Additionally, our bill will offer a 50- could deter investment. 5 To calculate the effective capital gains tax rate I percent rate reduction for individuals (Chart not reproductible in RECORD.) assumed people hold their assets for five years and and corporations, and allow the deduc- Would cutting taxes on capital gains re- use the consumer price index for urban workers as tion for a loss on the sale of a principal duce government revenue, making it tougher my price index. To avoid a result where people get residence. to balance the budget? Certainly not. In fact, taxed on zero or negative real gains (which implies cutting the effective tax rate on capital a tax rate of infinity!) I assume people earned a 5% Finally, this legislation encourages gains should boost revenue. As the following real return per year. This method has the added ben- investment in small businesses by in- table shows, government revenue from the efit of giving us a view of the expected capital gain creasing the exclusion from gains for capital gains tax has grown much more tax rate, as almost all people invest with the expec- tation that they will get a positive return. The ex- small business stock from 50 to 75 per- quickly when the effective tax rate has been pected tax rate should drive investment decisions cent; reducing the requirement for low or falling than when it’s been high or ris- more than any other tax rate. holding stock from 5 to 3 years; in- ing. 6 Changes in real revenue, with nominal revenue creasing the eligibility size to $100 mil- figures adjusted by the consumer price index for FIVE PHASES OF THE CAPITAL GAINS TAX urban workers. lion, and providing a 60-day grace pe- 7 This annual rate of changes does not include the riod for the rollover of stock between Capital huge increase in government revenue in 1986, as peo- small businesses. gains reve- ple cashed in their gains to avoid an oncoming tax Years Effective tax rates (in percent) nue 6 (per- hike in 1987. In other words, as favorable as the data Again, I want to restate the impor- cent per in the table looks for keeping capital gains taxes tance of a reduced capital gains rate, year) low, it could have made the table even more favor- able, if 1986 were used as the end point. Instead, the which benefits all Americans by stimu- 1954–1967 .. Low (30 to 40) ...... +10 lating economic growth and prosperity 1968–1980 .. Rising/Very High (37 to 126) ...... +2 increase in gains during this era of lower taxes is 1981–1986 .. Falling (97 to 39) ...... 7+10 cut off in 1985, at a much lower point than the 1986 and leading to innovation in bio- 1987–1991 .. Rising (39 to 61) ...... 8¥5 point. medical research and other life-enhanc- 1992–1994 .. Falling (61 to 50) ...... +10 8 This calculation does not use the 1986 peak as the ing technologies. I look forward to my starting point. It uses 1985. Had it used 1986 as the colleagues joining me in this effort to Put simply, reducing the effective tax rate starting point the data would have been even more on capital gains would kill two birds with favorable for keeping capital gains tax low. ensure that a real capital gains rate re- one stone: It would both ease the tax burden 9 From 1980, the year before the tax cut, to 1985, duction is included in any balanced and make it easier to balance the budget. the year before the huge surge in revenue that an- budget package the Congress puts to- ticipated the hike in rates in 1986. Money figures are Case in point: The last time the government in constant 1994 dollars. gether in the coming months. cut the official tax rate on capital gains, rev- Mr. President, I ask unanimous con- enue from the capital gains tax rose from $22 By Mr. GRASSLEY: billion to $36 billion in only five years.9 sent that additional material be print- S. 502. A bill to amend title XIX of ed in the RECORD. QUESTIONS AND ANSWERS the Social Security Act to provide There being no objection, the mate- Q: Wouldn’t indexation complicate the tax post-eligibility treatment of certain rial was ordered to be printed in the code, as taxpayers would have to keep track of not only the cost of their assets but also payments received under a Department RECORD, as follows: the inflation adjustment for each? of Veterans Affairs pension or com- INDEXING CAPITAL GAINS A: No. People would have the option of in- pensation program; to the Committee (Prepared by Robert Stein) dexing, but could still use the non-indexed on Finance. cost of their assets when figuring out the The case for cutting the capital gains tax STATE VETERANS’ HOME LEGISLATION is simple and straightforward: It is a win-win amount of their gains. This would mostly happen when inflation was low and the asset Mr. GRASSLEY. Mr. President, situation for all involved—for taxpayers, today I am introducing legislation workers and government revenue. wasn’t held very long. Everyone who invests would get more bang Q: If we index capital gains for inflation, which, when enacted, will modify the for their buck. This includes people who don’t we have to index debts too? And since treatment of certain veterans benefits start small businesses, workers who have received by veterans who reside in pension money in stocks and those who save 1 Footnotes at end of article. State veterans homes and whose care March 20, 1997 CONGRESSIONAL RECORD — SENATE S2675 and treatment is paid for by the Medic- home environment in which a veteran This bill will balance the needs of aid program. I am joined in introducing receiving Medicaid benefits might find HIV-infected patients with the preven- this bill by Senator GRAHAM. himself or herself. In other words, the tion needs of those who are uninfected. Veterans residing in State veterans UME and AA payment received by a The HIV Prevention Act of 1997 estab- homes, who are eligible for aid and at- veteran on Medicaid are provided to a lishes a confidential, national HIV re- tendance [AA] and unusual medical ex- veteran for services for which the State porting effort as already exists for end pense [UME] benefits, veterans benefits is already paying through the Medicaid stage HIV and AIDS; requires partner provided under title 38 of the United program. The veteran is not paying for notification; mandates testing for in- States Code, who are also eligible for these services with their own income. dicted sexual offenders; protects health Medicaid, are the only veterans in So, as a consequence of the court deci- care patients and professionals from in- nursing homes who receive, and who sions, these payments to the veteran in advertent exposure to HIV; provides ac- are able to keep, the entire AA and State veterans homes represent a net cess to insurance-required HIV test re- UME benefit amounts. This can be as gain in income to the veteran; they are sults; and allows adoptive parents to much as $1,000 per month. not paid out by the veteran to defray learn the HIV status of a child. In addi- Other veterans, who reside in other the cost of services the veteran is re- tion, this legislation includes Sense of types of nursing homes are receiving ceiving. the Senate language which expresses Medicaid, and who are also eligible for VA does not pay AA or UME to veter- that the States should criminalize the AA/UME can receive only 90 per month ans who are also on title XIX and resid- intentional transmission of HIV; and from the VA. ing in non-State veterans home nurs- also expresses the Sense of the Senate Yet, other veterans who reside in ing homes. Those veterans get only a that strict confidentiality must be ob- State veterans homes but who are not $90 per month personal allowance. served at all times in carrying out all eligible for the AA/UME benefits must And non-Medicaid eligible veterans of the provisions of the act. contribute all but $90 of their income who reside in State veterans homes The Senate is on record supporting to the cost of their care. must pay for services with their own the provisions of this bill in a 1990 So, even though veterans residing in funds. If they get UME and AA pay- amendment which was adopted by State veterans homes who are eligible ments, the State veterans homes will voice vote. The primary sponsors of the for AA and UME benefits and who qual- take all but $90 of those sums to help amendment were Senators KENNEDY ify for Medicaid have all of their treat- defray the cost of the nursing home and MIKULSKI. During debate on the ment and living expense paid by the care. amendment, Senator KENNEDY argued, State Medicaid program, they never- Although the written record does not ‘‘In a case in which there is a clear and theless may keep as much as $1,000 per document this, I believe that the pur- present danger, there is a duty to month of the AA and UME benefits. pose of exempting the State veterans warn.’’ That is the purpose of the HIV It might be useful for me to review homes was to allow the Homes to con- Prevention Act of 1997. The best ways how this state of affairs came to be. tinue to collect all but $90 of the UME to warn for the prevention of further In 1990, legislation was enacted, Pub- and AA paid to the eligible veteran so spread of HIV and AIDS are reporting lic Law 101–508, November 5, 1990, which as to enable State veterans homes to and partner notification, methods modified title 38, the veterans benefits provide service to more veterans than which are currently in use and proven title of the United States Code, to stip- they otherwise would be able to pro- ulate that veterans with no depend- vide. to be effective. ents, on title XIX, residing in nursing In any case, it seems highly unlikely This bill has received overwhelming homes, and eligible for AA and UME, that the purpose of exempting State support from groups including the could receive only a $90 per month per- veterans homes would have been to Independent Women’s Forum, Ameri- sonal expense allowance from the VA, allow these veterans, and only these cans for a Sound AIDS/HIV Policy, the rather than the full UME and AA among similarly situated veterans, to Family Research Council, Women amounts. retain the entire UME and A&A Against Violence, the Christian Coali- State veterans homes were subse- amounts. tion, and the American Medical Asso- quently exempted from the definition The legislation I am introducing ciation. I quote from a letter written of nursing homes which had been con- today modifies section 1902(r)(1) of the by the AMA in support of this legisla- tained in those earlier provisions of Social Security Act to stipulate that, tion: Public Law 101–508 by legislation en- for purposes of the post-eligibility ‘‘These public health initiatives acted in 1991, Public Law 102–40, May 7, treatment of income of individuals who which result in early detection of HIV 1991. are institutionalized, and on title 19, infection are now more important be- The result was that veterans on title the payments received under a Depart- cause of the tremendous advances that XIX and residing in State nursing ment of Veterans Affairs pension or medical science has made. Early inter- homes continued to receive UME and compensation program, including aid vention combined with effective treat- AA. Until recently, the State veterans and attendance and unusual medical ments will enable those with HIV and homes followed a policy of requiring expense payments, may be taken into AIDS to live longer, healthier lives.’’ that all but $90 per month of these al- account. The HIV Prevention Act adds HIV to lowances be used to defray the cost of 52 other notifiable contagious diseases care in the Home. By Mr. NICKLES: such as gonorrhea, hepatitis A, B, and Then, a series of Federal court deci- S. 503. A bill to prevent the trans- C, syphilis, tuberculosis, and AIDS sions held that neither UME nor AA mission of the human that must be reported to the Centers could be considered income. The court immunodeficiency virus (commonly for Disease Control. In terms of partner decisions appeared to focus on the defi- known as HIV), and for other purposes; notification, 26 states, including, I nition of income used in pre- and post- to the Committee on Labor and Human might add, Oklahoma, already require eligibility income determinations for Resources. notification. It is time that these poli- Medicaid. The court decisions essen- THE HIV PREVENTION ACT OF 1997 cies that are already in practice in tially held that UME and AA payments Mr. NICKLES. Mr. President, I rise some states are applied around the to veterans did not constitute income today to introduce the HIV Prevention country in order to track and prevent for the purpose of post-eligibility in- Act of 1997. This legislation appro- further spread of HIV. come determination. The reasoning priately refocuses public health efforts Mr. President, this legislation will was that, since these monies typically on HIV prevention by using proven greatly increase public health HIV pre- were used by veterans to defray the public health techniques designed for vention efforts that until now have fo- cost of certain series they were receiv- communicable diseases. The public cused only on AIDS. The HIV Preven- ing, the payments constituted a health initiatives in this bill, which re- tion Act of 1997 is a sensible, common ‘‘wash’’ for purposes of income gain by sult in early detection of HIV infec- sense approach toward containing the the veterans. tion, are now more important than spread of AIDS. By using proven, pub- However, the frame of reference for ever in light of the tremendous ad- lic health techniques and sound medi- the courts’ decisions was not a nursing vances that medical science has made. cal practices, this bill will curtail the S2676 CONGRESSIONAL RECORD — SENATE March 20, 1997 spread of HIV. I thank the chair and (A) The performance of statistical and epi- (ii) the defendant (or if the defendant is a encourage my colleagues to support demiological analyses of the incidence in the minor, to the legal guardian of the defend- this commonsense legislation. State of cases of such disease. ant); (iii) the attorneys of the victim; Mr. President, I ask unanimous con- (B) The performance of statistical and epi- demiological analyses of the demographic (iv) the attorneys of the defendant; sent that the text of the bill be printed characteristics of the population of individ- (v) the prosecuting attorneys; in the RECORD. uals in the State who have the disease. (vi) the judge presiding at the trial, if any; There being no objection, the bill was (C) The assessment of the adequacy of pre- and ordered to be printed in the RECORD, as ventive services in the State with respect to (vii) the principal public health official for follows: the disease. the local governmental jurisdiction in which the crime is alleged to have occurred. S. 503 (D) The performance of the functions re- quired in paragraph (2). (C) FOLLOW-UP TESTING.—That if the de- fendant has been tested pursuant to subpara- Be it enacted by the Senate and House of Rep- (2) FUNCTIONS.—The functions described in graph (B), the defendant, upon request of the resentatives of the United States of America in this paragraph are the following: Congress assembled, victim, undergo such follow-up tests for HIV (A) PARTNER NOTIFICATION.— as may be medically appropriate, and that as SECTION 1. SHORT TITLE. (i) IN GENERAL.—The State requires that soon as is practicable after each such test This Act may be cited as the ‘‘HIV Preven- the public health officer of the State carry the results of the test be made available in tion Act of 1997’’. out a program of partner notification to in- accordance with subparagraph (B) (except SEC. 2. FINDINGS. form individuals that the individuals may that this subparagraph applies only to the The Congress finds as follows: have been exposed to HIV. extent that the individual involved contin- (1) The States should recognize that the (ii) DEFINITION.—For purposes of this para- ues to be a defendant in the judicial proceed- terms ‘‘acquired immune deficiency syn- graph, the term ‘‘partner’’ includes— ings involved, or is convicted in the proceed- drome’’ and ‘‘AIDS’’ are obsolete. In the case (I) the sexual partners of individuals with ings). of individuals who are infected with the HIV disease; (D) CONSIDERATION OF RESULTS.—That, if human immunodeficiency virus (commonly (II) the partners of such individuals in the the results of a test conducted pursuant to known as HIV), the more important medical sharing of hypodermic needles for the intra- subparagraph (B) or (C) indicate that the de- fact for the individuals and for the protec- venous injection of drugs; and fendant has HIV disease, such fact may, as tion of the public health is the fact of infec- (III) the partners of such individuals in the relevant, be considered in the judicial pro- tion, and not just the later development of sharing of any drug-related paraphernalia ceedings conducted with respect to the al- AIDS (the stage at which the infection determined by the Secretary to place such leged crime. causes symptoms). The term ‘‘HIV disease’’, partners at risk of HIV infection. (4) TESTING OF CERTAIN INDIVIDUALS.— meaning infection with HIV regardless of (B) COLLECTION OF INFORMATION.—The (A) PATIENTS.—With respect to a patient whether the infection has progressed to State requires that any information col- who is to undergo a medical procedure that AIDS, more correctly defines the medical lected for purposes of partner notification be would place the health professionals in- condition. sufficient for the following purposes: volved at risk of becoming infected with (2) The medical, public health, political, (i) To provide the partners of the individ- HIV, the State— and community leadership must focus on the ual with HIV disease with an appropriate op- (i) authorizes such health professionals in full course of HIV disease rather than con- portunity to learn that the partners have their discretion to provide that the proce- centrating on later stages of the disease. been exposed to HIV. dure will not be performed unless the patient Continual focus on AIDS rather than the en- (ii) To provide the partners with counsel- undergoes a test for HIV disease and the tire spectrum of HIV disease has left our Na- ing and testing for HIV disease. health professionals are notified of the re- tion unable to deal adequately with the epi- (iii) To provide the individual who has the sults of the test; and demic. Federal and State data collection ef- disease with information regarding thera- (ii) requires that, if such test is performed forts should focus on obtaining data as early peutic measures for preventing and treating and the patient has positive test results, the as possible after infection occurs, while con- the deterioration of the immune system and patient be informed of the results. tinuing to collect data on the symptomatic conditions arising from the disease, and to (B) FUNERAL-RELATED SERVICES.—The stage of the disease. provide the individual with other preventive State authorizes funeral-services practition- (3) Recent medical breakthroughs may en- information. ers in their discretion to provide that funeral procedures will not be performed unless the able doctors to treat HIV disease as a chron- (iv) With respect to an individual who un- body involved undergoes a test for HIV dis- ic disease rather than as a terminal disease. dergoes testing for HIV disease but does not ease and the practitioners are notified of the Early intervention in the progression of the seek the results of the testing, and who has results of the test. infection is imperative to prolonging and im- positive test results for the disease, to recall (5) INFORMING OF FUNERAL-SERVICE PRACTI- proving the lives of individuals with the dis- and provide the individual with counseling, TIONERS.—The State requires that, if a ease. therapeutic information, and other informa- health care entity (including a hospital) (4) The Centers for Disease Control and tion regarding preventative health services transfers a body to a funeral-services practi- Prevention has recommended partner notifi- appropriate for the individual. tioner and such entity knows that the body cation as a primary prevention service. The (C) COOPERATION IN NATIONAL PROGRAM.— is infected with HIV, the entity notify the health needs of the general public, and the The State cooperates with the Director of funeral-services practitioner of such fact. care and protection of those who do not have the Centers for Disease Control and Preven- (6) HEALTH INSURANCE ISSUERS.— the disease, should be balanced with the tion in carrying out a national program of (A) IN GENERAL.—The State requires that, needs of individuals with the disease in a partner notification, including the sharing of if a health insurance issuer requires an appli- manner that allows for the infected individ- information between the public health offi- cant for such insurance to be tested for HIV uals to receive optimal medical care and for cers of the States. disease as a condition of issuing such insur- public health services to protect the (3) TESTING OF CERTAIN INDICTED INDIVID- ance, the applicant be afforded an oppor- uninfected. UAL.—With respect to a defendant against tunity by the health insurance issuer to be (5) Individuals with HIV disease have an whom an information or indictment is pre- informed, upon request, of the HIV status of obligation to protect others from being ex- sented for a crime in which by force or the applicant. posed to HIV by avoiding behaviors that threat of force the perpetrator compels the (B) DEFINITION.—For purposes of this para- place others at risk of becoming infected. victim to engage in sexual activity, the graph, the term ‘‘health insurance issuer’’ The States should have in effect laws provid- State requires the following: means an insurance company, insurance ing that intentionally infecting others with (A) IN GENERAL.—That the defendant be service, or insurance organization (including HIV is a felony. tested for HIV disease if— a health maintenance organization) which is SEC. 3. PREVENTION OF TRANSMISSION OF HIV. (i) the nature of the alleged crime is such licensed to engage in the business of insur- (a) REQUIREMENTS FOR STATES.—A State that the sexual activity would have placed ance in the State and which is subject to shall demonstrate to the satisfaction of the the victim at risk of becoming infected with State law which regulates insurance. Secretary that the law or regulations of the HIV; or (C) RULE OF CONSTRUCTION.—This para- State are in accordance with the following: (ii) the victim requests that the defendant graph may not be construed as affecting the (1) REPORTING OF CASES.—The State re- be so tested. provisions of section 514 of the Employee Re- quires that, in the case of a health profes- (B) TIMING.—That if the conditions speci- tirement Income Security Act of 1974 (29 sional or other entity that provides for the fied in subparagraph (A) are met, the defend- U.S.C. 1154) with respect to group health performance of a test for HIV on an individ- ant undergo the test not later than 48 hours plans. ual, the entity confidentially report positive after the date on which the information or (7) ADOPTION.—The State requires that, if test results to the State public health offi- indictment is presented, and that as soon an adoption agency is giving significant con- cer, together with any additional necessary thereafter as is practicable the results of the sideration to approving an individual as an information, in order to carry out the follow- test be made available to— adoptive parent of a child and the agency ing purposes: (i) the victim; knows whether the child has HIV disease, March 20, 1997 CONGRESSIONAL RECORD — SENATE S2677 such prospective adoptive parent be afforded THE CHILDREN’S PRIVACY PROTECITON AND by her in the questionnaire. This bill an opportunity by the agency to be in- PARENTAL EMPOWERMENT ACT OF 1997 would have prevented the situation formed, upon request, of the HIV status of Mrs. FEINSTEIN. Mr. President, I from ever occurring. the child. rise to urge my colleagues to support Finally, Mr. President, this year I (b) SENSE OF CONGRESS REGARDING HEALTH this simple but strong legislation to PROFESSIONALS WITH HIV DISEASE.—It is the have included in the bill exemptions sense of Congress that, with respect to protect our children. for sales to law enforcement organiza- health professionals who have HIV disease— This bill, sponsored by myself, Sen- tions, the Center for Missing and Ex- (1) the health professionals should notify ator BOXER, and Senator SNOWE, would ploited Children, and to accredited col- their patients that the health professionals provide three simple protections: leges and universities. We received a have the disease in medical circumstances First, the bill would prohibit list bro- great deal of input since we introduced that place the patients at risk of being in- kers from selling personal information the bill last June, and I believe we have fected with HIV by the health professionals; about children under 16 to anyone, addressed most of the concerns about and without first getting the parent’s con- (2) the States should encourage the medi- our bill with these exemptions. cal profession to develop guidelines to assist sent. Schools will be able to get informa- the health professionals in so notifying pa- All kinds of information about our tion about prospective students, law tients. children—more facts than most of us enforcement will be able to get the (c) APPLICABILITY OF REQUIREMENTS.— might think or hope for—is rapidly be- lists to help them find missing kids, (1) IN GENERAL.—Except as provided in coming available through these list and the Center for Missing and Ex- paragraph (2), this section shall apply to brokers. It is only a matter of time be- ploited Children will be able to do like- States upon the expiration of the 120-day pe- fore this information begins to fall into riod beginning on the date of the enactment wise. of this Act. the wrong hands. This bill is really very simple. Some (2) DELAYED APPLICABILITY FOR CERTAIN Last year, a reporter in Los Angeles marketing companies may be unhappy STATES.—In the case of the State involved, if was easily able to purchase parents’ that the government is trying to legis- the Secretary determines that a requirement names, birth months and addresses for late how they do business, but we have established by subsection (a) cannot be im- 5,500 children aged 1–12 in a particular to weigh the safety and well-being of plemented in the State without the enact- neighborhood. The reporter used the our children against the small incon- ment of State legislation, then such require- name of a fictitious company, gave a ment applies to the State on and after the venience of requiring parental consent non-working telephone number, had no in these cases. Given the rapidly first day of the first calendar quarter that credit card or check, and identified begins after the close of the first regular ses- changing nature of the marketing busi- sion of the State legislature that begins herself as Richard Allen Davis, the no- ness and the ways in which child mo- after the date of the enactment of this Act. torious murderer of Polly Klaas. When lesters and other criminals operate, For purposes of the preceding sentence, in ordering the list, the company rep- this bill is an important step in pro- the case of a State that has a 2-year legisla- resentative simply told her ‘‘Oh, you tecting our kids from those who would tive session, each year of such session is have a famous name,’’ and sent her the do them harm. deemed to be a separate regular session of information C.O.D. This is simply un- Mr. President, I ask unanimous con- the State legislature. acceptable. (d) DEFINITIONS.—In this section: sent that the text of this bill be printed (1) HIV.—The term ‘‘HIV’’ means the Second, the bill would give parents in the RECORD. human immunodeficiency virus. the authority to demand information There being no objection, the bill was (2) HIV DISEASE.—The term ‘‘HIV disease’’ from the list brokers who traffic in the ordered to be printed in the RECORD, as means infection with HIV and includes any personal data of their children—bro- follows: condition arising from such infection. kers will be required to provide parents S. 504 (3) SECRETARY.—The term ‘‘Secretary’’ with a list of all those to whom they means the Secretary of Health and Human sold information about the child, and Be it enacted by the Senate and House of Rep- resentatives of the United States of America in Services. must also tell the parent precisely (e) RULE OF CONSTRUCTION.—Part D of title Congress assembled, XXVI of the Public Health Service Act (42 what kind of information was sold. SECTION 1. SHORT TITLE. U.S.C. 300ff–71 et seq.) is amended by insert- If this personal information is out This Act may be cited as the ‘‘Children’s ing after section 2675 the following section: there, and brokers are buying and sell- Privacy Protection and Parental ‘‘SEC. 2675A. RULE OF CONSTRUCTION. ing it back and forth, it is only reason- Empowerment Act of 1997’’. ‘‘With respect to an entity that is an appli- able that we allow parents to find out SEC. 2. PROHIBITION OF CERTAIN ACTIVITIES cant for or a recipient of financial assistance what information has been sold and to RELATING TO PERSONAL INFORMA- under this title, compliance by the entity whom that information has been given. TION ABOUT CHILDREN. with any State law or regulation that is con- Finally, this bill would prohibit list (a) IN GENERAL.—Chapter 89 of title 18, sistent with section 3 of the HIV Prevention brokers from using prison labor to United States Code, is amended by adding at Act of 1997 may not be considered to con- the end the following: stitute a violation of any condition under input personal information. This seems like common sense to most of us, but ‘‘§ 1822. Sale of personal information about this title for the receipt of such assistance.’’. children SEC. 4. SENSE OF CONGRESS REGARDING INTEN- unfortunately the use of prison labor is ‘‘(a) PROHIBITION.—Whoever, in or affecting TIONAL TRANSMISSION OF HIV. not currently prohibited. It is the sense of Congress that the States Last year when I introduced this bill, interstate or foreign commerce— should have in effect laws providing that, in ‘‘(1) being a list broker, knowingly— I spoke of the plight of Beverly Dennis, ‘‘(A) sells, purchases, or receives remunera- the case of an individual who knows that he an Ohio grandmother who filled out a or she has HIV disease, it is a felony for the tion for providing personal information individual to infect another with HIV if the detailed marketing questionnaire about a child knowing that such information individual engages in the behaviors involved about her buying habits for a mail in pertains to a child without the consent of a with the intent of so infecting the other indi- survey. She filled out the questionnaire parent of that child; vidual. when she was told that she might re- ‘‘(B) conditions any sale or service to a child or to that child’s parent on the grant- SEC. 5. SENSE OF CONGRESS REGARDING CON- ceive free product samples and helpful FIDENTIALITY. information. Rather than receiving ing of such a consent; or It is the sense of the Congress that strict ‘‘(C) fails to comply with the request of a product information, however, she soon parent— confidentiality should be maintained in car- began to receive sexually explicit, fact- rying out the provisions of section 3 of the ‘‘(i) to disclose the source of personal infor- this Act. specific letters from a convicted rapist mation about that parent’s child; serving time. ‘‘(ii) to disclose all information that has By Mrs. FEINSTEIN (for herself, The rapist, writing from his prison been sold or otherwise disclosed by that list Mrs. BOXER and Ms. SNOWE): cell, had learned the very private, inti- broker about that child; or S. 504. A bill to amend title 18, Unit- mate details about her life because he ‘‘(iii) to disclose the identity of all persons ed States Code, to prohibit the sale of was keypunching her personal ques- to whom the list broker has sold or other- wise disclosed personal information about personal information about children tionnaire data into a computer for a that child; without their parent’s consent, and for subcontractor. Ms. Dennis received let- ‘‘(2) being a person who, using any personal other purposes; to the Committee on ters with elaborate sexual fantasies, information about a child in the course of the Judiciary. weaved around personal facts provided commerce that was obtained for commercial S2678 CONGRESSIONAL RECORD — SENATE March 20, 1997 purposes, has directly contacted that child poses; to the Committee on the Judici- FEINSTEIN, to give U.S. copyright own- or a parent of that child to offer a commer- ary. ers parity of term in the European cial product or service to that child, know- THE COPYRIGHT CLARIFICATIONS ACT OF 1997 Union. The EU has issued a directive to ingly fails to comply with the request of a increase the minimum basic copyright parent— term from life-plus-50 years to life- ‘‘(A) to disclose to the parent the source of By Mr. HATCH: plus-70. If we do not follow suit, U.S. personal information about that parent’s S. 507. A bill to establish the United works in potentially all EU countries child; States Patent and Trademark Organi- will receive 20 years less protection ‘‘(B) to disclose all information that has zation as a Government corporation, to than the works of the nationals of the been sold or otherwise disclosed by that per- amend the provisions of title 35, United son about that child; or host country. ‘‘(C) to disclose the identity of all persons States Code, relating to procedures for The Copyright Term Extension Act to whom such a person has sold or otherwise patent applications, commercial use of was approved by the Judiciary Com- disclosed personal information about that patents, reexamination reform, and for mittee. I am confident that the bill child; other purposes; to the Committee on would have been approved by the Sen- ‘‘(3) knowingly uses prison inmate labor, or the Judiciary. ate as well with little or no opposition, any worker who is registered pursuant to THE OMNIBUS PATENT ACT OF 1997 title XVII of the Violent Crime Control and but unfortunately this important legis- Law Enforcement Act of 1994, for data proc- Mr. HATCH. Mr. President, intellec- lation was held hostage by advocates of essing of personal information about chil- tual property is vitally important to music licensing reform—a totally unre- dren; or sustaining the high level of creativity lated issue. ‘‘(4) knowingly distributes or receives any that America enjoys, which not only In patents, too, we were very active. personal information about a child, knowing adds to the fund of human knowledge The Biotechnology Process Patents or having reason to believe that the informa- and the progress of science and tech- Act was passed. Also, I introduced the tion will be used to abuse the child or phys- nology, but also results in the more Omnibus Patent Act of 1996, which re- ically to harm the child; made the Patent and Trademark Office shall be fined under this title, imprisoned tangible benefits of a strong economy not more than 1 year, or both. and a favorable balance of trade. into a government corporation. The ‘‘(b) CIVIL ACTIONS.—A child or the parent For example, in 1994, copyright-relat- corporate form would allow the Patent of that child with respect to whom a viola- ed industries contributed more than and Trademark Office to escape the tion of this section occurs may in a civil ac- $385 billion to the American economy, micromanagement that it currently tion obtain appropriate relief, including or more than 5 percent of the total endures from the Commerce Depart- monetary damages of not less than $1,000. gross domestic product. This rep- ment, although my bill preserved a pol- The court shall award a prevailing plaintiff icy link with the Department. The bill in a civil action under this subsection a rea- resents more than $50 billion in foreign sonable attorney’s fee as a part of the costs. sales, which exceeds every other lead- also made several very important sub- ‘‘(c) LIMITATION.—Nothing in this section ing industry sector except automotive stantive changes to the Patent Act. shall be construed to affect the sale of lists and agriculture in contributions to a After some tough negotiations, the to— favorable trade balance. From 1977 to Clinton administration ended up sup- ‘‘(1) any Federal, State, or local govern- 1994, these same industries grew at a porting the final version of the bill. ment agency or law enforcement organiza- rate that was twice the rate of growth The Judiciary Committee had a hear- tion; ing on the bill, but Committee action ‘‘(2) the National Center for Missing and of the national economy, and the rate of job growth in these industries since was held hostage to yet another, to- Exploited Children; or tally unrelated issue—judicial nomina- ‘‘(3) any institution of higher education (as 1987 has outpaced that of the overall that term is defined in section 1201(a) of the economy by more than 100 percent. tions. In addition to improving the effi- Higher Education Act of 1965 (20 U.S.C. Mr. President, this is impressive to ciency of the patent and trademark 1141(a)). say the least. And these figures don’t ‘‘(d) DEFINITIONS.—In this section— systems, I have worked tirelessly for a begin to take into account the con- ‘‘(1) the term ‘child’ means a person who number of years to rectify the injustice tributions of other intellectual prop- has not attained the age of 16 years; of making American inventors bear a erty sectors, including trade in pat- ‘‘(2) the term ‘parent’ includes a legal heavier burden in deficit reduction ented technologies and the economic guardian; than the ordinary citizen through the ‘‘(3) the term ‘personal information’ means value of famous marks. Clearly intel- withholding of patent surcharge funds. information (including name, address, tele- lectual property has become one of our Again last year I led an ultimately un- phone number, social security number, and Nation’s most valuable resources. successful effort to ease this tax on physical description) about an individual As you know, the Judiciary Commit- identified as a child, that would suffice to American ingenuity. physically locate and contact that individ- tee, is charged with monitoring the ef- Now no one has demonstrated more ual; and fectiveness of our intellectual property zeal for a balanced budget than I have. ‘‘(4) the term ‘list broker’ means a person laws and with proposing to the Senate As you know, Mr. President, I was on who, in the course of business, provides mail- changes that are called for to meet new the Senate floor for 3 weeks trying to ing lists, computerized or telephone ref- challenges. Because of the digital age get this body to discipline itself erence services, or the like containing per- and the global economy, we’ve had our through the Balanced Budget Amend- sonal information of children.’’. hands full. Let me just go through a ment. But I do not believe that inven- (b) CLERICAL AMENDMENT.—The analysis few highlights. for chapter 89 of title 18, United States Code, tors ought to pay a surcharge on their is amended by adding at the end the follow- In the 104th Congress, we passed the patent applications only to see that ing: Digital Performance Right in Sound surcharge used for the general revenue ‘‘1822. Sale of personal information about Recordings Act, which, as its name sig- rather than to improve the service children.’’. nifies, adjusts the existing performance they receive from the PTO. The PTO, right in the Copyright Act to the de- after all, is a self-sustaining agency, By Mr. HATCH (for himself, Mr. mands of the new digital media. I also not receiving a penny from taxpayer LEAHY, Mr. D’AMATO, Mr. introduced, with Senator LEAHY, the dollars. What they charge, they ought THOMPSON, Mr. ABRAHAM, and National Information Infrastructure to keep. I am currently looking at a Mrs. FEINSTEIN): (NII) Copyright Protection Act of 1995 legislative solution to this problem. S. 505. A bill to amend the provisions to begin to lay down the rules of the I have also been looking into the spe- of title 17, United States Code, with re- road for the information highway. The cial patent restoration rules that apply spect to the duration of copyright, and Committee held two hearings on this to pharmaceutical products. In 1984, for other purposes; to the Committee bill, but not enough time was left in Congress enacted the Drug Price Com- on the Judiciary. the 104th to complete our delibera- petition and Patent Term Restoration THE COPYRIGHT TERM EXTENSION ACT OF 1997 tions. Act. Essentially, this law—commonly In response to the challenges of the known as, I am proud to say, the By Mr. HATCH: global economy, I introduced the Copy- Hatch–Waxman Act—allowed generic S. 506. A bill to clarify certain copy- right Term Extension Act of 1995, along drug manufacturers to rely on the cost- right provisions, and for other pur- with Senator THOMPSON and Senator ly safety and efficacy data of pioneer March 20, 1997 CONGRESSIONAL RECORD — SENATE S2679 drug manufacturers and provided for distinguished ranking member of the goals of the Omnibus Patent Act of partial patent restoration for pioneer Judiciary Committee, Senator 1997. products to offset a portion of the pat- D’AMATO, the distinguished junior Sen- The purposes of this bill are: (1) to ent term lost due to FDA regulatory ator from New York, Senator ABRA- provide for more efficient administra- review. HAM, the distinguished junior Senator tion of the patent and trademark sys- I know that many are interested in from Michigan, and Senator FEINSTEIN, tems; (2) to discourage ‘‘gaming’’ the revisiting particular provisions of the the distinguished senior Senator from patent system while ensuring against Hatch–Waxman Act now that we have California, are joining me as cospon- loss of patent term and theft of Amer- had a decade-plus experience under the sors of the Copyright Term Extension ican inventiveness; (3) to protect the new system. In my view, to be success- Act of 1997. rights of prior users of inventions ful, any Hatch–Waxman reform must Of course, Mr. President, these three which are later patented by another; be balanced in a manner that the bills do not comprise my entire intel- (4) to increase the reliability of patents American public, generic drug firms, lectual property agenda. For example, by allowing third parties more mean- and the R&D manufacturers are all at my request, the Copyright Office is ingful participation in the reexamina- able to realize benefits. Toward this taking a look at sui generis protection tion process; (5) to make certain that end, my staff and I have been meeting of databases and at amendments to the American provisional applications are with representatives of both segments Satellite Home Viewer Act. The Copy- given the same weight as other coun- of the pharmaceutical industry to iden- right Office may very well have rec- tries’ provisional applications in other tify areas of concern. ommendations for legislation in this countries’ courts; (6) to close a loop- It is my hope that these discussions area, and I may introduce such legisla- hole in the plant patent provisions of will result in proposals to create new tion before the end of this session. the Patent Act; and (7) to allow for the incentives in our intellectual property However, because the three bills I am filing of patent and trademark docu- protection system and efficiency in our introducing today have widespread sup- ments by electronic medium. regulatory processes that will increase port and have been thoroughly dis- THE UNITED STATES PATENT AND TRADEMARK the long-term strength of both seg- cussed in the last Congress, it is appro- OFFICE ments of the industry. Our bottom line priate that they be the first to be con- The United States leads the world in goal is clear: We want a climate that sidered—old business before new busi- innovation. That leadership is a direct produces both innovative new medi- ness. result of our long-standing commit- cines and lower-cost generic copies of THE OMNIBUS PATENT ACT OF 1997 ment to strong patent protection. The off-patent products. Mr. President, the Omnibus Patent strong protection of patents and trade- I do not guarantee success in this en- Act of 1997 is identical to the latest marks are of vital importance not only deavor, I can only commit that I will version of a bill I introduced last Con- to continued progress in science, but listen to all parties involved and see if gress, S. 1961, except for a few technical also to the economy. A vast array of we can work together to forge a com- changes. Last Congress, S. 1961 gained industries depend on patents. From the promise on Hatch–Waxman reform. I bipartisan support in the Senate, its chemical, electrical, biotechnological, would like to do it if we can, but I will counterpart, H.R. 3460 gained biparti- and manufacturing industries to com- not support any approach that is not san support in the House, and the Clin- puter software and hardware. And balanced. ton administration also supported this trademark is important to all busi- Let me just add that my willingness bill. Further, a large, broad coalition of nesses, period. to work with all parties should not be representatives of the patent industry I believe that we must not only keep construed as giving a veto to any par- were strongly supportive of the bill. our intellectual property laws current ticular party. Ultimately, the test I Additionally, the National Treasury and strong, but we must do everything use will be: Will the American public Employees Union and the AFL–CIO we can to make sure that the offices be better off if a particular legislative both supported the provisions that af- responsible for the administration of proposal is adopted? If, and only if, this fect their membership. I am fully con- those laws are properly equipped and test can be met, will I ask others in fident that this far-reaching, biparti- able to do their job as efficiently as this body to join me in moving legisla- san support will continue this Con- possible. tion. gress. Thus, the first provision of this bill Mr. President, let me now turn to I have no doubt that had a vote been makes the Patent and Trademark Of- trademark legislation, an area in taken on S. 1961, it would have passed fice a government corporation, called which we have had a lot of success. the Senate by an overwhelming vote. the U.S. Patent and Trademark Orga- Both the Federal Trademark Dilution Unfortunately, we did not take up S. nization. Basically, the effect of this Act and the Anticounterfeiting 1961 until later in the 104th Congress, provision is to separate the administra- Consumer Protection Act became law and time ran out before we were able to tion of the patent and trademark sys- in the 104th Congress. The Federal reach a vote on this important meas- tems from micromanagement by the Trademark Dilution Act was signifi- ure. Department of Commerce, while main- cant in that it established the first- In order to be certain that such a taining a policy link to that Depart- ever Federal anti-dilution statute to problem is not repeated, I am begin- ment. The current PTO has been ham- provide nationwide protection against ning this process early in the 105th pered by burdensome red tape regard- the whittling away of famous marks. Congress. The House is already acting ing personnel matters, and the office The Anticounterfeiting Consumer Pro- to move through this important and has also been held back from reaching tection Act brought our Nation’s needed measure without delay. The its full potential by the repeated si- anticounterfeiting laws up to speed House counterpart to my bill, H.R. 400, phoning off of its user fees for other, with the quickly evolving counterfeit- was introduced by Congressman COBLE, unrelated expenditures. ing trade by providing stiffer civil and the chairman of the House Judiciary The government corporation proposal criminal penalties and increasing the Subcommittee on Courts and Intellec- was the subject of much discussion last tools available to law enforcement to tual Property. Chairman COBLE has Congress. The Administration, various give them the upper hand in this fight. held a hearing on H.R. 400, and the bill union representatives, representatives As you can see though, Mr. Presi- was subsequently favorably reported by of the users of the Patent and Trade- dent, we have a lot of unfinished busi- the subcommittee and the full House mark Office, and, of course, the officers ness, so today I’m introducing two bills Judiciary Committee. I look forward to of the PTO itself were all involved in from the last Congress, the Omnibus the consideration of H.R. 400 by the full helping me to craft this consensus leg- Patent Act, and the Copyright Term House of Representatives. islation. I am confident that the prod- Extension Act. In addition, I’m intro- During the last Congress this bill was uct of these negotiations will enhance ducing the Copyright Clarification Act, the subject of multiple hearings in the efficiency of the USPTO while pro- which is a series of truly technical both Houses of Congress. But, this is a tecting the interests of the Commerce amendments to the Copyright Act. I new Congress, so I would like to re- Department and the employees of the am pleased that Senator LEAHY, the view, once again, the purposes and USPTO. S2680 CONGRESSIONAL RECORD — SENATE March 20, 1997 The structure of the USPTO under marine applicant sprang his trap. He tors. Additionally, once an application my bill vests primary responsibility for would cease delaying his application is published, Title II grants the appli- patent and trademark policy in the and it would finally be approved. Then, cant ‘‘provisional rights,’’ that is, legal head of the USPTO, the Director, and he sued his competitor for infringing protection for his invention. Thus, primary responsibility for administra- on his patent. Thus, he maximized his while it is true that someone could tion of the patent and trademark sys- own patent term while tricking his break the law and steal the invention, tems in the respective Commissioners competitors into wasting their money. that is true under current law and will of Patents and Trademarks. The cor- Mr. President, submarine patents are always be true, and it will subject porate form of the USPTO inoculates terribly inefficient. Because of them, them to liability for their illegal ac- the Patent and Trademark Offices as the availability of new technology is tions. much as possible from the bureaucratic delayed and instead of moving to new PATENT TERM RESTORATION sclerosis that infects many federal and better research, companies are Title III deals directly with the ad- agencies. Further, by subdividing the fooled into throwing away time and ministrative delay problem by restor- organization into separate patent and money on technology that already ex- ing to the patent holder any part of the trademark offices, the bill will help ists. term that is lost due to undue adminis- raise the prominence of trademarks, an By adopting GATT, and changing the trative delay. To prevent any possible important part of intellectual property manner in which we calculate the pat- confusion over what undue delay but long seen as the poor step-child of ent term to twenty years from filing, means, the bill sets specific deadlines the more prominent patent field. we eliminated the submarine problem. for the Patent Office to act. The office The parties interested in patents and Under the current rule, if an applicant has fourteen months to issue a first of- trademarks support having close access delays his own application, it simply fice action and four months to respond to the President by having the chief in- shortens the time he will have after to subsequent applicant filings. Any tellectual policy advisor directly the actual granting of the patent. delay beyond those deadlines is consid- linked to a cabinet officer. The Sec- Thus, we have eliminated this unscru- ered undue delay and will be restored retary of Commerce is a logical choice. pulous, inefficient practice by remov- to the patent term. Thus, Title III As a result, while this bill would make ing its benefits. solves the administrative delay prob- the day-to-day functioning of the Unfortunately, the change in term lem in a clear, predictable, and objec- USPTO independent of the Commerce calculation potentially creates a new tive manner. Department, the policy portion of the problem. Under the current law, if the PRIOR DOMESTIC COMMERCIAL USE new organization will still be under the Patent Office takes a long time to ap- Title IV deals with people who inde- policy direction of the Secretary of prove a patent, the delay comes out of pendently invent new art, and use it in Commerce. Further, as a government the patent term, thus punishing the commercial sale, but who never patent corporation, as opposed to a private patent holder for the PTO’s delay. This their invention. Specifically, this title corporation, the USPTO will remain is not right. provides rights to a person who has subject to congressional oversight. The question we face now, Mr. Presi- commercially sold an invention more Mr. President, although the creation dent, is how to fix this new problem. than 1 year before another person files of the USPTO may be the most dra- Some have suggested combining the an application for a patent on the same matic part of this bill, it also contains old seventeen years from granting sys- subject matter. Anyone in this situa- several important changes to sub- tem with the new twenty years from tion will be permitted to continue to stantive patent law that will, taken as filing and giving the patent holder sell his product without being required a whole, dramatically improve our pat- whichever is longer. But that approach to pay a royalty to the patent holder. ent system. leads to uncertainty in the length of a This basic fairness measure is aimed at With the adoption of the GATT pro- patent term and even worse, resurrects protecting the innocent inventor who visions in 1994, the United States the submarine patent problem by giv- chooses to use trade secret protection changed the manner in which it cal- ing benefits to an applicant who pur- instead of pursuing a patent and who culated the duration of patent terms. posefully delays his own application. I has expended enough time and money Under the old rule, patents lasted for believe that Titles II and III of the Om- to begin commercial sale of the inven- seventeen years after the grant of the nibus Patent Act of 1997 solve the ad- tion. It also serves as an incentive for patent. The new rule under the legisla- ministrative delay dilemma without those who wish to seek a patent to tion implementing GATT is that these recreating old problems. seek it quickly, thus reducing the time patents last for twenty years from the EARLY PUBLICATION during which others may acquire prior time the patent application is filed. Title II of the bill provides for the user rights. The incentives of this title In addition to harmonizing American early publication of patent applica- will improve the efficiency of our pat- patent terms with those of our major tions. It would require the Patent Of- ent system by protecting ongoing busi- trading partners, this change solved fice to publish pending applications ness concerns and encouraging swift the problem of ‘‘submarine patents’’. A eighteen months after the application prosecution of patent applications. submarine patent is not a military se- was filed. An exception to this rule is PATENT REEXAMINATION REFORM cret. Rather, it is a colloquial way to made for applications filed only in the Title V provides for a greater role for describe a legal but unscrupulous strat- United States. Those applications will third parties in patent re-examination egy to game the system and unfairly be published 18 months after filing or 3 proceedings. Nothing is more basic to extend a patent term. months after the office issues its first an effective system of patent protec- Submarine patenting is when an ap- response on the application, whichever tion than a reliable examination proc- plicant purposefully delays the final is later. By publishing early, competi- ess. Without the high level of faith granting of his patent by filing a series tors are put on notice that someone that the PTO has earned, respect for of amendments and delaying motions. has already beaten them to the inven- existing patents would fall away and Since, under the old system, the term tion, thus allowing them to stop spend- innovation would be discouraged for did not start until the patent was ing money researching that same art. fear of a lack of protection for new in- granted, no patent term was lost. And The claims that early publication ventions. since patent applications are secret in will allow foreign competitors to steal In the information age, however, it is the United States until a patent is ac- American technology are simply not increasingly difficult for the PTO to tually granted, no one knows that the true. To start with, between 75 and 80 keep track of all the prior art that ex- patent application is pending. Thus, percent of patent applications filed in ists. The examiners do the best job competitors continued to spend pre- the United States are also filed abroad they can, but inevitably someone cious research and development dollars where 18 month publication is already misses something and grants a patent on technology that has already been the rule. Further, I have provided in that should not be granted. This is the developed. my bill for delayed publication of ap- problem that title V addresses. When a competitor finally did de- plications only submitted in the United Title V amends the existing reexam- velop the same technology, the sub- States to protect them from competi- ination process to allow third-parties March 20, 1997 CONGRESSIONAL RECORD — SENATE S2681 to raise a challenge to an existing pat- Mr. President, this bill is an impor- ing consensus of the inadequacy of the ent and to participate in the reexam- tant, and necessary measure that en- life-plus-50 term to protect creators in ination process in a meaningful way. joys overwhelming support. I am con- an increasingly competitive global Thus, the expertise of the patent exam- fident that it will be enacted into law marketplace has led to actions by sev- iner is supplemented by the knowledge this Congress. eral nations to increase the duration of and resources of third-parties who may THE COPYRIGHT TERM EXTENSION ACT OF 1997 copyright. Of particular importance is have information not known to the Mr. President, the purpose of the the 1993 directive issued by the Euro- patent examiner. Through this joint ef- Copyright Term Extension Act of 1997 pean Union, which requires its member fort, we maximize the flow of informa- is to ensure adequate copyright protec- countries to implement a term of pro- tion, increase the reliability of patents, tion for American works abroad by ex- tection equal to the life of the author and thereby increase the strength of tending the U.S. term of copyright pro- plus 70 years by July 1, 1995. the American patent system. tection for an additional 20 years. It According to the Copyright Office, There are also safeguards to prevent also includes a provision reversing the Belgium, Denmark, Finland, Germany, this process from being abused by those Ninth Circuit decision in La Cienega Greece, Ireland, Spain, and Sweden who merely seek to harass a patent- Music Co. v. ZZ Top that calls into have all notified their laws to the Eu- holder. First, if a third-party requestor question the copyrights of thousands of ropean Commission and the Commis- loses an appeal of his reexamination re- musical works first distributed on sion has found them to be in compli- quest, he may not subsequently raise sound recordings. ance with the EU Directive. Luxem- any issue he could have raised during Except for the La Cienega provision, bourg, The Netherlands, Portugal, the United Kingdom, and Austria have the examination proceeding in any the substance of this bill is identical to each notified their implementing laws forum. Second, a party that loses a S. 483, the Copyright Term Extension to the Commission and are awaiting civil action where that party failed to Act, which was passed by the Judiciary certification. Other countries are cur- show the invalidity of the patent, the Committee on May 23, 1996, with over- whelming bipartisan support. This leg- rently in the process of bringing their party may not subsequently seek a re- laws into compliance. And, as the Reg- examination of such patent on any islation also has the strong support of the Administration, as expressed by ister of Copyrights has stated, those grounds that could have been raised in countries that are seeking to join the both the Commissioner of Patents and the civil action. Third, the burden of European Union, including Poland, Trademarks, Bruce Lehman, and the reexamination on the patent-holder is Hungary, Turkey, the Czech Republic, Register of Copyrights, Marybeth Pe- minimized by the fact that a reexam- and Bulgaria, are likely to amend their ters, in their testimony before the Ju- ination is not like a court review, and copyright laws to conform with the diciary Committee in the last Con- that the patent holder need not submit life-plus-70 standard. any documentation in order to prevail. gress. The reason this is of such importance Twenty years ago, Mr. President, PROVISIONAL APPLICATIONS FOR PATENTS to the United States is that the EU Di- Congress fundamentally altered the Title VI is comprised of miscellane- rective also mandates the application way in which the U.S. calculates its ous provisions. First, it fixes a matter of what is referred to as the rule of the term of copyright protection by aban- of a rather technical nature. Some for- shorter term. This rule may also be ap- eign courts have interpreted American doning a fixed-year term of protection plied by adherents to the Berne Con- provisional applications in a way that and adopting a basic term of protection vention and the Universal Copyright would not preserve their filing priority. based on the life of the author. In Convention. In short, this rule permits This title amends section 115 of Title 35 adopting the life-plus-50 term, Congress those countries with longer copyright of the U.S. Code to clarify that if a pro- cited three primary justifications for terms to limit protection of foreign visional application is converted into a the change. 1) the need to conform the works to the shorter term of protection non-provisional application within 12 U.S. copyright term with the prevail- granted in the country of origin. Thus, months of filing, that it stands as a full ing worldwide standard; 2) the insuffi- in those countries that adopt the patent application, with the date of fil- ciency of the U.S. copyright term to longer term of life-plus-70, American ing of the provisional application as provide a fair economic return for au- works will forfeit 20 years of available the date of priority. If no request is thors and their dependents; and, 3) the protection and be protected instead for made within 12 months, the provisional failure of the U.S. copyright term to only the duration of the life-plus-50 application is considered abandoned. keep pace with the substantially in- term afforded under U.S. law. This clarification will make certain creased commercial life of copyrighted Mr. President, I’ve already cited that American provisional applications works resulting from the rapid growth some statistics about the importance are given the same weight as other in communications media. of copyright to our national economy. Developments over the past 20 years countries’ provisional applications in The fact is that America exports more have led to a widespread reconsider- other countries’ courts. copyrighted intellectual property than ation of the adequacy of the life-plus- any country in the world, a huge per- PLANT PATENTS 50-year term based on these same rea- centage of it to nations of the Euro- Title VI also makes two corrections sons. Among the main developments is pean Union. In fact, intellectual prop- to the plant patent statute. First, the the effect of demographic trends, such erty is our third largest export. And, ban on tuber propagated plants is re- as increasing longevity and the trend according to 1994 estimates, copyright moved. This depression-era ban was in- toward rearing children later in life, on industries account for some 5.7 percent cluded for fear of limiting the food sup- the effectiveness of the life-plus-50 of the total gross domestic product. ply. Obviously, this is no longer a con- term to provide adequate protection Furthermore, copyright industries are cern. Second, the plant patent statute for American creators and their heirs. creating American jobs at twice the is amended to provide protection to In addition, unprecedented growth in rate of other industries, with the num- parts of plants, as well as the whole technology over the last 20 years, in- ber of U.S. workers employed by core plant. This closes a loophole that for- cluding the advent of digital media and copyright industries more than dou- eign growers have used to import the the development of the National Infor- bling between 1977 and 1994. Today, fruit or flowers of patented plants mation Infrastructure and the these industries contribute more to the without paying a royalty because the Internet, have dramatically enhanced economy and employ more workers entire plant was not being sold. the marketable lives of creative works. than any single manufacturing sector, ELECTRONIC FILING Most importantly, though, is the grow- accounting for nearly 5 percent of the Lastly, this title also allows for the ing international movement toward total U.S. workforce. In fact, in 1994, filing of patent and trademark docu- the adoption the longer term of life- the core copyright industries employed ments by electronic medium. It is high plus-70. more workers than the four leading time that the government office that Thirty-five years ago, the Permanent noncopyright manufacturing sectors is, by definition, always on the cutting Committee of the Berne Union began combined. edge of technology, be permitting to to reexamine the sufficiency of the life- Clearly, Mr. President, America enter the age of computers. plus-50-year term. Since then, a grow- stands to lose a significant part of its S2682 CONGRESSIONAL RECORD — SENATE March 20, 1997 international trading advantage if our lishers believed that it was not tech- S. 505 copyright laws do not keep pace with nically a publication. The Copyright Be it enacted by the Senate and House of Rep- emerging international standards. Office also considered these musical resentatives of the United States of America in Given the mandated application of the compositions to be unpublished. The ef- Congress assembled, rule of the shorter term under the EU fect of La Cienega, however, is that vir- SECTION 1. SHORT TITLE. Directive, American works will fall tually all music before 1978 that was This Act may be cited as the ‘‘Copyright into the public domain 20 years before first distributed to the public on re- Term Extension Act of 1997’’. those of our European trading part- cordings has no copyright protection— SEC. 2. DURATION OF COPYRIGHT PROVISIONS. ners, undercutting our international (a) PREEMPTION WITH RESPECT TO OTHER at least in the 9th Circuit. LAWS.—Section 301(c) of title 17, United trading position and depriving copy- By contrast, the Second Circuit in States Code, is amended by striking ‘‘Feb- right owners of two decades of income Rosette v. Rainbo Record Manufacturing ruary 15, 2047’’ each place it appears and in- they might otherwise have. Similar Corp., 546 F.2d 461 (2d Cir. 1975), aff’d per serting ‘‘February 15, 2067’’. consequences will follow in those na- curiam, 546 F.2d 461 (2d Cir. 1976) has (b) DURATION OF COPYRIGHT: WORKS CRE- tions outside the EU that choose to ex- held the opposite—that public distribu- ATED ON OR AFTER JANUARY 1, 1978.—Section 302 of title 17, United States Code, is amend- ercise the rule of the shorter term tion of recordings was not a publica- under the Berne Convention and the ed— tion of the music contained on them. (1) in subsection (a) by striking ‘‘fifty’’ and Universal Copyright Convention. As I have noted, Rosette comports with Mr. President, adoption of the Copy- inserting ‘‘70’’; the nearly universal understanding of (2) in subsection (b) by striking ‘‘fifty’’ and right Term Extension Act will ensure the music and sound recording indus- inserting ‘‘70’’; fair compensation for the American tries and of the Copyright Office. (3) in subsection (c) in the first sentence— creators whose efforts fuel the intellec- (A) by striking ‘‘seventy-five’’ and insert- tual property sector of our economy by Since the Supreme Court has denied ing ‘‘95’’; and allowing American copyright owners to cert in La Cienega, whether one has (B) by striking ‘‘one hundred’’ and insert- benefit to the fullest extent from for- copyright in thousands of musical com- ing ‘‘120’’; and eign uses and will, at the same time, positions depends on whether the case (4) in subsection (e) in the first sentence— ensure that our trading partners do not is brought in the Second or Ninth Cir- (A) by striking ‘‘seventy-five’’ and insert- get a free ride from their use of our in- cuits. This situation is intolerable. ing ‘‘95’’; (B) by striking ‘‘one hundred’’ and insert- tellectual property. And, as stated very Overturning the La Cienega decision will restore national uniformity on ing ‘‘120’’; and simply by the Register of Copyrights in (C) by striking ‘‘fifty’’ each place it ap- her testimony before the Judiciary this important issue by confirming the pears and inserting ‘‘70’’. Committee in the last Congress: ‘‘[i]t wisdom of the custom and usage of the (c) DURATION OF COPYRIGHT: WORKS CRE- does appear that at some point in the affected industries and of the Copy- ATED BUT NOT PUBLISHED OR COPYRIGHTED future the standard will be life plus 70. right Office for nearly 100 years. My BEFORE JANUARY 1, 1978.—Section 303 of title The question is at what point does the bill, however, also contains a provision 17, United States Code, is amended in the to ensure that Congress’ affirmation of second sentence by striking ‘‘December 31, United States move to this term * * *. 2027’’ and inserting ‘‘December 31, 2047’’. As a leading creator and exporter of this view will not retroactively upset the disposition of previously adju- (d) DURATION OF COPYRIGHT: SUBSISTING copyrighted works, the United States COPYRIGHTS.— should not wait until it is forced to in- dicated or pending cases. (1) IN GENERAL.—Section 304 of title 17, crease the term, rather it should set an THE COPYRIGHT CLARIFICATION ACT OF 1997 United States Code, is amended— example for other countries.’’ Finally, Mr. President, I am intro- (A) in subsection (a)— Mr. President, this bill is of crucial (i) in paragraph (1)— ducing the Copyright Clarification Act (I) in subparagraph (B) by striking ‘‘47’’ importance to our Nation’s copyright of 1997 to make a series of truly tech- owners and to our economy. It is also a and inserting ‘‘67’’; and nical amendments to the Copyright (II) in subparagraph (C) by striking ‘‘47’’ balanced approach. It contains a provi- Act. The need for these technical cor- and inserting ‘‘67’’; sion, allowing the actual creators of rections was brought to my attention (ii) in paragraph (2)— copyrighted works in certain cir- in the last Congress by the Register of (I) in subparagraph (A) by striking ‘‘47’’ cumstances to bargain for the extra 20 Copyrights, Ms. Marybeth Peters. This and inserting ‘‘67’’; and years, except in the case of works made bill was passed by the House of Rep- (II) in subparagraph (B) by striking ‘‘47’’ for hire. The libraries and archives, and inserting ‘‘67’’; and resentatives in similar form in the (iii) in paragraph (3)— too, will be pleased to see that the bill 104th Congress. Unfortunately time ran provides them with additional latitude (I) in subparagraph (A)(i) by striking ‘‘47’’ short on our efforts to enact the same and inserting ‘‘67’’; and to reproduce and distribute material bill in the Senate. The version I am in- (II) in subparagraph (B) by striking ‘‘47’’ during the extension term, and it does troducing today is identical to H.R. and inserting ‘‘67’’; not extend the copyright term for cer- 672, which passed the House under sus- (B) by amending subsection (b) to read as tain works that were unpublished at pension of the rules just yesterday. I follows: ‘‘(b) COPYRIGHTS IN THEIR RENEWAL TERM the time of the effective date of the hope the Senate will follow suit and 1976 act. This latter provision means AT THE TIME OF THE EFFECTIVE DATE OF THE act expeditiously to make these impor- COPYRIGHT TERM EXTENSION ACT OF 1997.— that libraries and archives will be able tant technical amendments. to go forward with their plans to pub- Any copyright still in its renewal term at CONCLUSION the time that the Copyright Term Extension lish those unpublished works in 2003, Act of 1997 becomes effective shall have a the year after the current guaranteed Mr. President, each of the three bills copyright term of 95 years from the date term for unpublished works expires. I am introducing today is tremen- copyright was originally secured.’’; LA CIENEGA V. ZZ TOP dously important. For the information (C) in subsection (c)(4)(A) in the first sen- Mr. President, the Copyright Term of my colleagues I am submitting a tence by inserting ‘‘or, in the case of a ter- Extension Act of 1997 also includes a brief summary of the Omnibus Patent mination under subsection (d), within the provision to overturn the decision in Act of 1997, a section-by-section analy- five-year period specified by subsection (d)(2),’’ after ‘‘specified by clause (3) of this La Cienega Music Co. v. ZZ Top, 53 F.3d sis of the Copyright Term Extension Act of 1997, and a summary of provi- subsection,’’; and 950 (9th Cir. 1995), cert denied, 116 S. Ct. (D) by adding at the end the following new 331 (1995). In general, La Cienega held sions of the Copyright Clarification subsection: that distributing a sound recording to Act of 1997. I ask unanimous consent ‘‘(d) TERMINATION RIGHTS PROVIDED IN SUB- the public—for example by sale—is a that they be printed in the RECORD, SECTION (c) WHICH HAVE EXPIRED ON OR BE- ‘‘publication’’ of the music recorded on along with the text of the Copyright FORE THE EFFECTIVE DATE OF THE COPYRIGHT it under the 1909 Copyright Act. Under Term Extension Act of 1997 and the TERM EXTENSION ACT OF 1997.—In the case of the 1909 act, publication without copy- text of the Copyright Clarification Act any copyright other than a work made for of 1997. hire, subsisting in its renewal term on the ef- right notice caused loss of copyright fective date of the Copyright Term Exten- protection. Almost all music that was There being no objection, the mate- sion Act of 1997 for which the termination first published on recordings did not rial was ordered to be printed in the right provided in subsection (c) has expired contain copyright notice, because pub- RECORD, as follows: by such date, where the author or owner of March 20, 1997 CONGRESSIONAL RECORD — SENATE S2683 the termination right has not previously ex- made by this Act shall take effect on the copyright infringement when the work is ercised such termination right, the exclusive date of the enactment of this Act. used more than 75 years after publication or or nonexclusive grant of a transfer or license (b) DISTRIBUTION OF PHONORECORDS.—The 100 years after creation, whichever is less, of the renewal copyright or any right under amendment made by section 4 shall not be a provided the user obtains a certificate from it, executed before January 1, 1978, by any of basis to reopen an action nor to commence a the Copyright Office indicating that it has the persons designated in subsection (a)(1)(C) subsequent action for copyright infringe- no record to indicate whether that person is of this section, other than by will, is subject ment if an action in which such claim was living or died less than 50 years before. This to termination under the following condi- raised was dismissed by final judgment be- subsection would extend protection of such tions: fore the date of enactment of this Act. The works for an additional 20 years—95 years ‘‘(1) The conditions specified in subsection amendment made by section 4 shall not from publication and 120 years from cre- (c) (1), (2), (4), (5), and (6) of this section apply to any action pending on the date of ation—as well as base the presumptive death apply to terminations of the last 20 years of enactment in any court in which a party, of the author on certification by the Copy- copyright term as provided by the amend- prior to the date of enactment, sought dis- right Office that is has no record to indicate ments made by the Copyright Term Exten- missal of, judgment on, or declaratory relief whether the person is living or died less than sion Act of 1997. regarding a claim of infringement by arguing 70 years before, which is 20 years longer than ‘‘(2) Termination of the grant may be ef- that the adverse party had no valid copy- the 50 years currently provided for in § 302(e). fected at any time during a period of 5 years right in a musical work by virtue of the dis- Section 2(c)—Duration of Copyright: Works Cre- beginning at the end of 75 years from the tribution of phonorecords embodying it. ated But Not Published or Copyrighted Before date copyright was originally secured.’’. January 1, 1978 (2) COPYRIGHT RENEWAL ACT OF 1992.—Sec- THE COPYRIGHT TERM EXTENSION ACT OF 1997 This subsection amends § 303 of the Copy- tion 102 of the Copyright Renewal Act of 1992 (S. 505)—SECTION-BY-SECTION ANALYSIS right Act to extend the minimum term of (Public Law 102–307; 106 Stat. 266; 17 U.S.C. SECTION 1. SHORT TITLE copyright protection by 20 years for works 304 note) is amended— The proposed legislation is entitled the created but not copyrighted before January (A) in subsection (c)— Copyright Term Extension Act of 1997. 1, 1978, provided they are published prior to (i) by striking ‘‘47’’ and inserting ‘‘67’’; December 31, 2002. Prior to 1978, unpublished (ii) by striking ‘‘(as amended by subsection SECTION 2. DURATION OF COPYRIGHT PROVISIONS works enjoyed perpetual copyright protec- (a) of this section)’’; and Section 2(a)—Preemption with Respect to Other tion. Beginning in 1978, however, copyright (iii) by striking ‘‘effective date of this sec- Laws protection for unpublished works was lim- tion’’ each place it appears and inserting ‘‘ef- This subsection amends § 301(c) of the ited to the life of the author plus 50 years, or fective date of the Copyright Term Exten- Copyright Act to extend for an additional 20 100 years from creation for anonymous sion Act of 1997’’; and years the application of common law and works, pseudonymous works, and works (B) in subsection (g)(2) in the second sen- state statutory protection for sound record- made for hire. Under § 303, however, works tence by inserting before the period the fol- ings fixed before February 15, 1972. Under created but not published before January 1, lowing: ‘‘, except each reference to forty- § 301, the federal law generally preempts all 1978, are guaranteed protection until at least seven years in such provisions shall be state and common law protection of copy- December 31, 2002. Works subsequently pub- deemed to be 67 years’’. right with several exceptions, including one lished before that date are guaranteed fur- SEC. 3. REPRODUCTION BY LIBRARIES AND AR- for sound recordings fixed before February ther protection until December 31, 2027. This CHIVES. 15, 1972 (the effective date of the statute ex- subsection provides an additional 20 years of Section 108 of title 17, United States Code, tending federal copyright protection to protection for these subsequently published is amended— sound recordings). Because federal copyright works by ensuring that copyright protection (1) by redesignating subsection (h) as sub- protection applies only to sound recordings will not expire before December 31, 1047. section (i); and fixed on or after that date, federal preemp- Section 2(d)(1)(A)—Duration of Copyright: (2) by inserting after subsection (g) the fol- tion of state statutory and common law pro- Copyrights in Their First Term on January 1, lowing: tection of sound recordings fixed before Feb- 1978 ‘‘(h)(1) For purposes of this section, during ruary 15, 1972, would result in all of these This subsection amends § 304(a) of the the last 20 years of any term of copyright of works falling into the public domain. The Copyright Act to extend the term of protec- a published work, a library or archives, in- § 301 exception was enacted to ensure a 75- tion for works in their first term on January cluding a nonprofit educational institution year minimum term of copyright protection 1, 1978, by extending the renewal term from that functions as such, may reproduce, dis- for these works. By delaying the date of fed- 47 years to 67 years. The effect of this tribute, display, or perform in facsimile or eral Copyright Act preemption of state stat- amendment is to provide a composite term digital form a copy or phonorecord of such utory and common law protection of pre- of protection of 95 years from the date of work, or portions thereof, for purposes of February 15, 1972, sound recordings until publication. preservation, scholarship, or research, if February 15, 2067, this subsection extends the Section 2(d)(1)(B)—Duration of Copyright: such library or archives has first determined, minimum term of protection for these works Copyright in Their Renewal Term or Reg- on the basis of a reasonable investigation, by 20 years. istered for Renewal Before January 1, 1978 that none of the conditions set forth in sub- Section 2(b)—Duration of Copyright: Works paragraphs (A), (B), and (C) of paragraph (2) This subsection amends § 304(b) of the Created on or After January 1, 1978 apply. Copyright Act to extend the copyright term ‘‘(2) No reproduction, distribution, display, This subsection amends § 302 of the Copy- of pre-1978 works currently in their renewal or performance is authorized under this sub- right Act to extend the U.S. term of copy- term from 75 years to 95 years. As amended, section if— right protection by 20 years for all works this section clarifies that the extension ap- ‘‘(A) the work is subject to normal com- created on or after January 1, 1978. For plies only to works that are currently under mercial exploitation; works in general, which currently enjoy pro- copyright protection and is not intended to ‘‘(B) a copy or phonorecord of the work can tection for the life of the author plus 50 addi- restore copyright protection to works al- be obtained at a reasonable price; or tional years under § 301(a), this section cre- ready in the public domain. ‘‘(C) the copyright owner or its agent pro- ates a term equal to the life of the author Section 2(d)(1)(C) & (D)—Termination of vides notice pursuant to regulations promul- plus 70 years. Likewise, for joint works Transfers and Licenses gated by the Register of Copyrights that ei- under § 302(b), this section extends the cur- These subsections amend § 340(c) of the ther of the conditions set forth in subpara- rent term of protection to the life of the last Copyright Act and create a new subsection graphs (A) and (B) applies. surviving author plus 70 years. For anony- (d) to provide a revived power of termination ‘‘(3) The exemption provided in this sub- mous works, pseudonymous works, and for individual authors whose right to termi- section does not apply to any subsequent works made for hire, which are protected the nate prior transfers and licenses of copyright uses by users other than such library or ar- shorter of 75 years from publication or 100 under § 304(c) has expired, provided the au- chives.’’. years from creation under § 302(c), this sub- thor has not previously exercised that right. SEC. 4. DISTRIBUTION OF PHONORECORDS. section extends the term to the shorter of 95 Under § 304(c), an author may terminate a Section 303 of title 17, United States Code, years from publication or 120 years from the prior transfer or license of copyright for any is amended— date the work is created. work, other than a work made for hire, by (1) in the first sentence by striking ‘‘Copy- This subsection also amends § 302(e) of the serving advance written notice upon the right’’ and inserting ‘‘(a) Copyright’’; and Copyright Act to extend by 20 years the var- grantee or the grantee’s successor at least 2, (2) by adding at the end the following: ious dates relating to the presumptive death but not more than 10, years prior to the ef- ‘‘(b) The distribution before January 1, of the author as a complete defense against fective date of the termination. Such termi- 1978, of phonorecords shall not constitute copyright infringement. Whereas current nation may be effected at any time within 5 publication of the musical work embodied copyright protection is generally tied to the years beginning at the end of 56 years from therein for purposes of the Copyright Act of life of the author, it is sometimes not pos- the date of publication. The purpose of this 1909.’’. sible to ascertain whether the author of a termination provision was to afford the indi- SEC. 5. EFFECTIVE DATES. work is still living, or even to identify the vidual creator the opportunity to bargain for (a) IN GENERAL.—Except as provided in year of death if the author is deceased. the benefit of the 19-year extension provided subsection (b), this Act and the amendments § 302(e) provides a complete defense against by the 1976 Copyright Act. S2684 CONGRESSIONAL RECORD — SENATE March 20, 1997 For most individual creators, the existing tive on the date of enactment. Subsection (b) Spain, Italy and the United Kingdom power of termination under § 304(c) will allow provides, however, that the overturning of had complied with the EU Directive on them to terminate prior transfers and to bar- the LaCienega decision will not retroactively Copyright Term. Sweden, Portugal, gain for the benefit of both the extension upset the disposition of previously adju- Finland and the Netherlands were re- under the 1976 Copyright Act and the exten- dicated or pending cases. ported to have legislation to do so sion under the Copyright Term Extension Mr. LEAHY. Mr. President, I am glad Act of 1997. For a much smaller group of in- pending, as well. With so many of our to be working with Senator HATCH as dividuals, the five-year window in which to trading partners moving to the longer terminate prior transfers under § 304(c) has original cosponsors of this, the Copy- term but preparing to recognize Amer- already expired. Thus, these creators are de- right Term Extension Act of 1997. We ican works for only the shorter term, I nied the opportunity to reap the benefits of worked together on this matter last believe it is time for us to act. the extended term, while the current copy- Congress to craft a bill that was re- This bill also now includes a revised right owners are given a 20-year windfall. ported by the Judiciary Committee to This subsection amends the existing termi- version of legislation that passed the the Senate by a vote of 15 to 3. House last Congress but was stalled in nation provisions under § 304(c) of Copyright I raised a number of questions and the Senate to clarify the Copyright Act Act to create a revived window, beginning at concerns during our Judiciary Commit- the end of the current 75-year copyright of 1909 with regard to whether the dis- tee hearing on this issue back in Sep- term, in which individual creators or their tribution of phonorecords may be held tember 1995. I spoke of a letter I had re- heirs who did not terminate previous trans- to be a divesting publication of the ceived from Prof. Karen Burke Lefevre fers or grants prior to the expiration of their copyright in the musical composition of Vermont and the Rensselaer Poly- right of termination under § 304(c) may bar- embodied therein. The revision is in- gain for the benefit of the extended term. technic Institute. She expressed res- tended to clarify the law while not af- Section 2(d)(2)—Copyright Renewal Act ervations, as a researcher and author, fecting cases in which parties have liti- revisions that Congress not extend the term for gated or are litigating this issue. This subsection makes corresponding unpublished works beyond the term set Finally, I feel strongly that the ex- amendments to § 102 of the Copyright Re- by the 1976 Act. This category of mate- tension of the copyright term should newal Act of 1992 (P.L. 102–307, 106 Stat. 266) rials is set to have its copyrights ex- to reflect the changes made by the Copyright include public benefit, such as the cre- pire in 2002. They include anonymous Term Extension Act. ation of new works or benefit to public works and unpublished works of inter- Section 3—Clarification of Library Exemption of arts. Senator DODD, Senator KENNEDY, est to scholars. In section 2(c) of the Exclusive Rights and I have been concerned about find- bill we introduce today, we accommo- This subsection amends § 108 of the Copy- ing an appropriate way to benefit the date these interests and preserve the right Act, governing limited exemptions public from this extension and con- public availability of these materials from copyright infringement for libraries tinue to do so. Along these lines, the and archives, including nonprofit edu- in 2003, if they remain unpublished on Copyright Office is examining how the cational institutions that function as such, December 31, 2002. by redesignating subsection (h) as subsection I want to thank Marybeth Peters, our extension in this bill will benefit copy- (i) and inserting a new subsection (h). The Register of Copyrights, for supporting right industries, authors and the pub- new subsection (h)(1) will allow libraries, ar- this improvement in the bill, and Sen- lic. chives, and nonprofit educational institu- Given the changes made to meet the tions to reproduce and distribute copies of ator HATCH for working with me on it. I am concerned about libraries, edu- concerns that I raised with an earlier works for preservation, scholarship, or re- bill and in light of the international search during the last 20 years of copyright, cational institutions and nonprofits if the works are not being commercially ex- being able to access materials and pro- developments that are disadvantaging ploited and cannot be obtained at a reason- vide access in turn for research, archi- American copyrighted works, I cospon- able price. The new subsection (h)(2) provides val, preservation and other purposes. sored the Committee substitute at our that the limited exemption does not apply We have also made progress in this Judiciary Committee executive busi- where the copyright owner provides notice to area as reflected in section 3 of the bill. ness session last Congress and pressed the Copyright Office that the conditions re- for its consideration by the Senate. Un- garding commercial exploitation and reason- Copyright industry and library rep- resentatives have narrowed their dif- fortunately, this bill was not consid- able availability have not been met. The new ered by the Senate during the 104th subsection (h)(3) provides that the exemption ferences. I ask for their continued help does not apply to subsequent users other in crafting the best balance possible to Congress. than the libraries or archives. create public access for noncommercial Accordingly, I join with Senator SECTION 4. DISTRIBUTION OF PHONORECORDS purposes during the extension period HATCH to reintroduce this copyright Section 4 affirms the longstanding view without undercutting the value of term extension legislation this Con- that the public distribution of phonorecords copyrights. gress and look forward to working with prior to 1978, did not constitute publication At our hearing I also raised the no- him to see to its enactment, without of the musical composition embodied therein tion of a new right of termination for further delay. under the 1909 Copyright Act. This section works where the period of termination Mrs. FEINSTEIN. Mr. President, I overturns the decision in LaCienega Music in current law has already passed and want to express my support for the Co. v. Z.Z. Top., 53 F.3d 950 (9th Cir. 1995), Copyright Term Extension Act of 1997. cert. denied, 116 S.Ct. 331 (1995), which held the 20-year extension inures to the ben- that the sale of records constituted ‘‘publica- efit of a copyright transferee. This bill I believe that extending the basic term tion’’ of the musical composition under the creates such a right of termination in of copyright protection by 20 years is a 1909 Act, and implicitly ruled that unless section 2(d) of the bill. step in the right direction. such a copy contained a copyright notice, At our hearing, I was still consider- Perhaps the most compelling reason the composition entered the public domain ing whether there was sufficient jus- for this legislation is the need for immediately upon the first sale. The result tification for extending the copyright greater international reciprocity in of such a view is that potentially thousands honoring copyright terms. The Euro- of musical compositions will be stripped of term for an additional 20 years. At that their presumed copyright protection as time we were considering the European pean Union has formally adopted a life unpublished works under the 1909 Act. Sec- Union Directive to its member coun- plus 70 copyright term, and countries tion 13 adopts the view of the Second Circuit tries to provide copyright protection currently awaiting admission to the that the pre-1978 sale or distribution of re- for a term of life plus 70 years by July Union will adopt this standard in the cordings to the public did not constitute a 1, 1995. While many of our trading part- future. Several countries outside of the publication for copyright purposes. Rosette v. ners had not extended their terms by European Union also have turned to Rainbo Record Mfg. Corp., 354 F.Supp. 1183 July 1995, they have acted to do so in the life plus 70 term, and many expect (S.D.N.Y.), aff’d per curiam, 546 F.2d 461 (2d. it to become the international stand- Cir. 1976). This same view is adopted by the the past 2 years. Copyright Office, which for years has refused I received a letter from Bruce A. Leh- ard. to accept registrations for such phonorecords man, the Assistant Secretary of Com- By extending to life plus 70 years, as published works. merce and Commissioner of Patents Congress will help ensure that Amer- SECTION 5. EFFECTIVE DATE and Trademarks, in which he reported ican creators receive comparable pro- Subsection (a) provides that this Act and that Austria, Germany, Greece, tection in other countries. If we do not the amendments made thereby shall be effec- France, Denmark, Belgium, Ireland, act, other nations will not be required March 20, 1997 CONGRESSIONAL RECORD — SENATE S2685 to provide American authors and art- I urge my colleagues to support this ‘‘(i) before the date of the enactment of the ists with any more protection than we bill. Uruguay Round Agreements Act, if the offer them at home. S. 506 source country of the restored work is an eli- gible country on such date, or And, before the United States is the Be it enacted by the Senate and House of Rep- ‘‘(ii) before the date on which the source resentatives of the United States of America in world’s leader in the production of in- country of the restored work becomes an eli- Congress assembled, tellectual property, and because the gible country, if that country is not an eligi- State of California is home to many of SECTION 1. SHORT TITLE. ble country on such date of enactment, the leading copyright industries, this This Act may be cited as the ‘‘Copyright Clarifications Act of 1997’’. a reliance party may continue to exploit issue is of great importance to me. We SEC. 2. SATELLITE HOME VIEWER ACT OF 1994. that derivative work for the duration of the could be the net losers if we do not The Satellite Home Viewer Act of 1994 restored copyright if the reliance party pays move toward greater harmonization. (Public Law 103–369) is amended as follows: to the owner of the restored copyright rea- Intellectual property—the collective (1) Section 2(3)(A) is amended to read as sonable compensation for conduct which creative output of America’s makers of follows: would be subject to a remedy for infringe- movies, music, art, and other works—is ‘‘(A) in clause (i) by striking ‘12 cents’ and ment but for the provisions of this para- an enormous asset to the Nation’s inserting ‘17.5 cents per subscriber in the graph.’’. case of superstations that as retransmitted (2) Subsection (e)(1)(B)(ii) is amended by economy and balance of trade. striking the last sentence. The International Intellectual Prop- by the satellite carrier include any program which, if delivered by any cable system in (3) Subsection (h)(2) is amended to read as erty Alliance estimates that copyright- the United States, would be subject to the follows: related industries contributed more syndicated exclusivity rules of the Federal ‘‘(2) The ‘date of restoration’ of a restored than $385 billion to the U.S. economy Communications Commission, and 14 cents copyright is— in 1994, with more than $50 billion in per subscriber in the case of superstations ‘‘(A) January 1, 1996, if the source country foreign sales. that are syndex-proof as defined in section of the restored work is a nation adhering to Many other countries have preferred 258.2 of title 37, Code of Federal Regulations’; the Berne Convention or a WTO member country on such date; or to appropriate and re-sell American and’’. (2) Section 2(4) is amended to read as fol- ‘‘(B) the date of adherence or proclama- films, music, and computer programs— lows: tion, in the case of any other source country some of the great exports of my State ‘‘(4) Subsection (c) is amended— of the restored work.’’. of California—rather than license ‘‘(A) in paragraph (1)— (4) Subsection (h)(3) is amended to read as American works. ‘‘(i) by striking ‘until December 31, 1992,’; follows: The United States suffers greatly ‘‘(ii) by striking ‘(2), (3) or (4)’ and insert- ‘‘(3) The term ‘eligible country’ means a from illegal duplication of our work. ing ‘(2) or (3)’; and nation, other than the United States, that— Why, then, should we sit back and ‘‘(iii) by striking the second sentence; ‘‘(A) becomes a WTO member country after allow European companies to legally ‘‘(B) in paragraph (2)— the date of the enactment of the Uruguay ‘‘(i) in subparagraph (A) by striking ‘July Round Agreements Act; profit from the use of our works, with- 1, 1991’ and inserting ‘July 1, 1996’; and ‘‘(B) on such date of enactment is, or after out paying us in return? ‘‘(ii) in subparagraph (D) by striking ‘De- such date of enactment becomes, a member As Prof. Arthur Miller of Harvard cember 31, 1994’ and inserting ‘December 31, of the Berne Convention; or Law School aptly, albeit bluntly, put 1999, or in accordance with the terms of the ‘‘(C) after such date of enactment becomes it: ‘‘Unless Congress matches the copy- agreement, whichever is later’; and subject to a proclamation under subsection right extension adopted by the Euro- ‘‘(C) in paragraph (3)— (g). pean Union, we will lost 20 years of val- ‘‘(i) in subparagraph (A) by striking ‘De- For purposes of this paragraph, a nation that uable protection against rip-off art- cember 31, 1991’ and inserting ‘January 1, is a member of the Berne Convention on the 1997’; date of the enactment of the Uruguay Round ists.’’ Since America is the world’s ‘‘(ii) by amending subparagraph (B) to read principal exporter of popular culture, Agreements Act shall be construed to be- as follows: come an eligible country on such date of en- extension of the basic copyright term ‘(B) ESTABLISHMENT OF ROYALTY FEES.—In actment.’’. is an important step in the right direc- determining royalty fees under this para- SEC. 4. LICENSES FOR NONEXEMPT SUBSCRIP- tion. graph, the copyright arbitration royalty TION TRANSMISSIONS. Reciprocity in copyright protection panel appointed under chapter 8 shall estab- Section 114(f) of title 17, United States becomes even more necessary in to- lish fees for the retransmission of network Code, is amended— day’s global information society, where stations and superstations that most clearly (1) in paragraph (1), by inserting ‘‘, or, if a represent the fair market value of secondary copyright arbitration royalty panel is con- computer networks span the con- transmissions. In determining the fair mar- tinents, and intellectual property is vened, ending 30 days after the Librarian is- ket value, the panel shall base its decision sues and publishes in the Federal Register an shuttled around the world in seconds. on economic, competitive, and programming order adopting the determination of the The world has changed dramatically information presented by the parties, includ- copyright arbitration royalty panel or an since 1976, when Congress established ing— order setting the terms and rates (if the Li- the present copyright terms. Many ‘(i) the competitive environment in which brarian rejects the panel’s determination)’’ copyrighted works have a much longer such programming is distributed, the cost of after ‘‘December 31, 2000’’; and commercial life than they used to similar signals in similar private and com- (2) in paragraph (2), by striking ‘‘and pub- have. pulsory license marketplaces, and any spe- lish in the Federal Register’’. cial features and conditions of the retrans- Videocassettes, cable television, and SEC. 5. ROYALTY PAYABLE UNDER COMPULSORY mission marketplace; LICENSE. new satellite delivery systems have ex- ‘(ii) the economic impact of such fees on Section 115(c)(3)(D) of title 17, United tended the commercial life of movies copyright owners and satellite carriers; and States Code, is amended by striking ‘‘and and television series. New technologies ‘(iii) the impact on the continued avail- publish in the Federal Register’’. not only have extended but also have ability of secondary transmissions to the SEC. 6. NEGOTIATED LICENSE FOR JUKEBOXES. expanded the market for creative con- public.’; and Section 116 of title 17, United States Code, tent. Cable television, which promises ‘‘(iii) in subparagraph (C), by inserting ‘or is amended— hundreds of different channels, has July 1, 1997, whichever is later’ after ‘section (1) by amending subsection (b)(2) to read as 802(g)’.’’. vastly expanded this market. follows: (3) Section 2(5)(A) is amended to read as ‘‘(2) ARBITRATION.—Parties not subject to Networked computers add to the de- follows: such a negotiation may determine, by arbi- mand for content. Interactive tele- ‘‘(A) in paragraph (5)(C) by striking ‘the tration in accordance with the provisions of vision promises to do the same. date of the enactment of the Satellite Home chapter 8, the terms and rates and the divi- The Copyright Term Extension Act Viewer Act of 1988’ and inserting ‘November sion of fees described in paragraph (1).’’; and will go far to address the global devel- 16, 1988’; and’’. (2) by adding at the end the following new opments I have mentioned. SEC. 3. COPYRIGHT IN RESTORED WORKS. subsection: After introduction, I recommend that Section 104A of title 17, United States ‘‘(d) DEFINITIONS.—As used in this section, my colleagues and I further develop the Code, is amended as follows: the following terms mean the following: (1) Subsection (d)(3)(A) is amended to read ‘‘(1) A ‘coin-operated phonorecord player’ language of the act to ensure that all as follows: is a machine or device that— contributors to the creative process re- ‘‘(3) EXISTING DERIVATIVE WORKS.—(A) In ‘‘(A) is employed solely for the perform- ceive benefits from the extended copy- the case of a derivative work that is based ance of nondramatic musical works by right term. upon a restored work and is created— means of phonorecords upon being activated S2686 CONGRESSIONAL RECORD — SENATE March 20, 1997 by the insertion of coins, currency, tokens, be credited to the appropriations for nec- incurred by the Library of Congress and the or other monetary units or their equivalent; essary expenses of the Copyright Office. Such Copyright Office under this chapter. Such de- ‘‘(B) is located in an establishment making fees that are collected shall remain available duction may be made before the fees are dis- no direct or indirect charge for admission; until expended. The Register may, in accord- tributed to any copyright claimants. In addi- ‘‘(C) is accompanied by a list which is com- ance with regulations that he or she shall tion, all funds made available by an appro- prised of the titles of all the musical works prescribe, refund any sum paid by mistake or priations Act as offsetting collections and available for performance on it, and is af- in excess of the fee required by this section. available for deductions under this sub- fixed to the phonorecord player or posted in ‘‘(2) In the case of fees deposited against section shall remain available until ex- the establishment in a prominent position future services, the Register of Copyrights pended. In ratemaking proceedings, the Li- where it can be readily examined by the pub- shall request the Secretary of the Treasury brarian of Congress and the Copyright Office lic; and to invest in interest-bearing securities in the may assess their reasonable costs directly to ‘‘(D) affords a choice of works available for United States Treasury any portion of the the parties to the most recent relevant arbi- performance and permits the choice to be fees that, as determined by the Register, is tration proceeding, 50 percent of the costs to made by the patrons of the establishment in not required to meet current deposit account the parties who would receive royalties from which it is located. demands. Funds from such portion of fees the royalty rate adopted in the proceeding ‘‘(2) An ‘operator’ is any person who, alone shall be invested in securities that permit and 50 percent of the costs to the parties who or jointly with others— funds to be available to the Copyright Office would pay the royalty rate so adopted.’’. ‘‘(A) owns a coin-operated phonorecord at all times if they are determined to be nec- SEC. 10. DIGITAL AUDIO RECORDING DEVICES player; essary to meet current deposit account de- AND MEDIA. ‘‘(B) has the power to make a coin-oper- mands. Such investments shall be in public Section 1007(b) of title 17, United States ated phonorecord player available for place- debt securities with maturities suitable to Code, is amended by striking ‘‘Within 30 days ment in an establishment for purposes of the needs of the Copyright Office, as deter- after’’ in the first sentence and inserting public performance; or mined by the Register of Copyrights, and ‘‘After’’. ‘‘(C) has the power to exercise primary bearing interest at rates determined by the SEC. 11. CONFORMING AMENDMENT. control over the selection of the musical Secretary of the Treasury, taking into con- Section 4 of the Digital Performance Right works made available for public performance sideration current market yields on out- in Sound Recordings Act of 1995 (Public Law on a coin-operated phonorecord player.’’. standing marketable obligations of the Unit- 104–39) is amended by redesignating para- SEC. 7. REGISTRATION AND INFRINGEMENT AC- ed States of comparable maturities. graph (5) as paragraph (4). TIONS. ‘‘(3) The income on such investments shall SEC. 12. MISCELLANEOUS TECHNICAL AMEND- Section 411(b)(1) of title 17, United States be deposited in the Treasury of the United MENTS. Code, is amended to read as follows: States and shall be credited to the appropria- (a) AMENDMENTS TO TITLE 17, UNITED ‘‘(1) serves notice upon the infringer, not tions for necessary expenses of the Copyright STATES CODE.—Title 17, United States Code, less than 48 hours before such fixation, iden- Office.’’. is amended as follows: tifying the work and the specific time and SEC. 9. COPYRIGHT ARBITRATION ROYALTY PAN- (1) The table of chapters at the beginning source of its first transmission, and declar- ELS. of title 17, United States Code, is amended— ing an intention to secure copyright in the (a) ESTABLISHMENT AND PURPOSE.—Section (A) in the item relating to chapter 6, by work; and’’. 801 of title 17, United States Code, is amend- striking ‘‘Requirement’’ and inserting ‘‘Re- quirements’’; SEC. 8. COPYRIGHT OFFICE FEES. ed— (B) in the item relating to chapter 8, by (a) FEE INCREASES.—Section 708(b) of title (1) in subsection (b)(1) by striking ‘‘and striking ‘‘Royalty Tribunal’’ and inserting 17, United States Code, is amended to read as 116’’ in the first sentence and inserting ‘‘116, and 119’’; ‘‘Arbitration Royalty Panels’’; follows: (C) in the item relating to chapter 9, by ‘‘(b) In calendar year 1997 and in any subse- (2) in subsection (c) by inserting after striking ‘‘semiconductor chip products’’ and quent calendar year, the Register of Copy- ‘‘panel’’ at the end of the sentence the fol- lowing: inserting ‘‘Semiconductor Chip Products’’; rights, by regulation, may increase the fees and specified in subsection (a) in the following ‘‘, including— (D) by inserting after the item relating to manner: ‘‘(1) authorizing the distribution of those chapter 9 the following: ‘‘(1) The Register shall conduct a study of royalty fees collected under sections 111, 119, the costs incurred by the Copyright Office and 1005 that the Librarian has found are not ‘‘10. Digital Audio Recording Devices for the registration of claims, the recorda- subject to controversy; and and Media ...... 1001’’. tion of documents, and the provision of serv- ‘‘(2) accepting or rejecting royalty claims (2) The item relating to section 117 in the ices. The study shall also consider the tim- filed under sections 111, 119, and 1007 on the table of sections at the beginning of chapter ing of any increase in fees and the authority basis of timeliness or the failure to establish 1 is amended to read as follows: to use such fees consistent with the the basis for a claim’’; and ‘‘117. Limitations on exclusive rights: Com- budget. (3) by amending subsection (d) to read as puter programs.’’. ‘‘(2) The Register may, on the basis of the follows: (3) Section 101 is amended in the definition study under paragraph (1), and subject to ‘‘(d) SUPPORT AND REIMBURSEMENT OF ARBI- of to perform or display a work ‘‘publicly’’ paragraph (5), increase fees to not more than TRATION PANELS.—The Librarian of Congress, by striking ‘‘processs’’ and inserting ‘‘proc- that necessary to cover the reasonable costs upon the recommendation of the Register of ess’’. incurred by the Copyright Office for the serv- Copyrights, shall provide the copyright arbi- (4) Section 108(e) is amended by striking ices described in paragraph (1), plus a reason- tration royalty panels with the necessary ad- ‘‘pair’’ and inserting ‘‘fair’’. able inflation adjustment to account for any ministrative services related to proceedings (5) Section 109(a)(2)(B) is amended by strik- estimated increase in costs. under this chapter, and shall reimburse the ing ‘‘Copyright’’ and inserting ‘‘Copyrights’’. ‘‘(3) Any newly established fee under para- arbitrators presiding in distribution proceed- (6) Section 110 is amended— graph (2) shall be rounded off to the nearest ings at such intervals and in such manner as (A) in paragraph (8) by striking the period dollar, or for a fee less than $12, rounded off the Librarian shall provide by regulation. at the end and inserting a semicolon; to the nearest 50 cents. Each such arbitrator is an independent con- (B) in paragraph (9) by striking the period ‘‘(4) The fees established under this sub- tractor acting on behalf of the United at the end and inserting ‘‘; and’’; and section shall be fair and equitable and give States, and shall be hired pursuant to a (C) in paragraph (10) by striking ‘‘4 above’’ due consideration to the objectives of the signed agreement between the Library of and inserting ‘‘(4)’’. copyright system. Congress and the arbitrator. Payments to (7) Section 115(c)(3)(E) is amended— ‘‘(5) If the Register determines under para- the arbitrators shall be considered costs in- (A) in clause (i) by striking ‘‘section 106(1) graph (2) that fees should be increased, the curred by the Library of Congress and the and (3)’’ each place it appears and inserting Register shall prepare a proposed fee sched- Copyright Office for purposes of section ‘‘paragraphs (1) and (3) of section 106’’; and ule and submit the schedule with the accom- 802(h)(1).’’. (B) in clause (ii)(II) by striking ‘‘sections panying economic analysis to the Congress. (b) PROCEEDINGS.—Section 802 of title 17, 106(1) and 106(3)’’ and inserting ‘‘paragraphs The fees proposed by the Register may be in- United States Code, is amended— (1) and (3) of section 106’’. stituted after the end of 120 days after the (1) in subsection (c) by striking the last (8) Section 119(c)(1) is amended by striking schedule is submitted to the Congress unless, sentence; and ‘‘unless until’’ and inserting ‘‘unless’’. within that 120-day period, a law is enacted (2) in subsection (h) by amending para- (9) Section 304(c) is amended in the matter stating in substance that the Congress does graph (1) to read as follows: preceding paragraph (1) by striking ‘‘the sub- not approve the schedule.’’. ‘‘(1) DEDUCTION OF COSTS OF LIBRARY OF section (a)(1)(C)’’ and inserting ‘‘subsection (b) DEPOSIT OF FEES.—Section 708(d) of CONGRESS AND COPYRIGHT OFFICE FROM ROY- (a)(1)(C)’’. such title is amended to read as follows: ALTY FEES.—The Librarian of Congress and (10) Section 405(b) is amended by striking ‘‘(d)(1) Except as provided in paragraph (2), the Register of Copyrights may, to the ex- ‘‘condition or’’ and inserting ‘‘condition all fees received under this section shall be tent not otherwise provided under this title, for’’. deposited by the Register of Copyrights in deduct from royalty fees deposited or col- (11) Section 407(d)(2) is amended by strik- the Treasury of the United States and shall lected under this title the reasonable costs ing ‘‘cost of’’ and inserting ‘‘cost to’’. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2687

(12) The item relating to section 504 in the SUMMARY OF PROVISIONS—COPYRIGHT the current § 116A negotiated jukebox license table of sections at the beginning of chapter CLARIFICATION ACT OF 1997 (S. 506) in the 1988 Berne Convention implementing 5 is amended by striking ‘‘Damage’’ and in- The Copyright Clarification Act is in- legislation. This section also clarifies that serting ‘‘Damages’’. tended to make several technical, yet impor- all jukebox negotiated licenses that require (13) Section 504(c)(2) is amended by strik- tant, changes to Copyright law, as suggested arbitration are CARP proceedings. ing ‘‘court it’’ and inserting ‘‘court in’’. by the U.S. Copyright Office. The following Advance Notice of Intent to Copyright (14) Section 509(b) is amended by striking is a brief summary of its provisions. Live Performances. Section 7 changes the ‘‘merchandise; and baggage’’ and inserting Satellite Home Viewer Act Technical current 10-days advanced notice requirement ‘‘merchandise, and baggage’’. Amendments. Section 2 makes technical cor- for a copyright owner who intends to copy- right the fixation of a live performance to a (15) Section 601(a) is amended by striking rections to the Satellite Home Viewer Act of 48-hours advanced notice requirement. The ‘‘nondramtic’’ and inserting ‘‘nondramatic’’. 1994 (SHVA), as recommended by the Copy- current provision has proven unworkable for (16) Section 601(b)(1) is amended by strik- right Office. First, the bill corrects the dol- sporting events, in particular, where the ing ‘‘subsustantial’’ and inserting ‘‘substan- lar figures specified in the Act for royalties teams and times of the event may not be tial’’. to be paid by satellite carriers—the 1994 known 10 days in advance. (17) The item relating to section 710 in the SHVA amendments mistakenly reversed the table of sections at the beginning of chapter Copyright Office Fees. Section 8 responds rates set by arbitration in 1992 for signals to ambiguities in the Copyright Fees and 7 is amended by striking ‘‘Reproductions’’ subject to FCC syndicated exclusivity black- and inserting ‘‘Reproduction’’. Technical Amendments Act of 1989. That bill out rules vs. those that are not subject to allows the Copyright Office to increase fees (18) The item relating to section 801 in the such rules. Second, the bill corrects errors in table of sections at the beginning of chapter in 1995, and every fifth year thereafter to re- section numbers and references resulting flect changes in the Consumer Price Index 8 is amended by striking ‘‘establishment’’ from the failure of the 1994 SHVA amend- and inserting ‘‘Establishment’’. (CPI). The Copyright Office did not raise its ments to account for changes made to Title fees in 1995, because it determined that the (19) Section 801(b) is amended— 17 by the Copyright Royalty Tribunal Act of costs associated with the increase would be (A) by striking ‘‘shal be—’’ and inserting 1993. Third, the bill replaces references to greater than the resulting revenue. Uncer- ‘‘shall be as follows:’’; ‘‘the effective date of the Satellite Home tainty has arisen as to whether the failure to (B) in paragraph (1) by striking ‘‘to make’’ Viewer Act of 1988’’ with the actual calendar increase fees in 1995 precludes the Copyright and inserting ‘‘To make’’; date so as to avoid confusion caused by the Office from increasing its fees again until (C) in paragraph (2)— two Acts bearing the same name. 2000 and whether the increase in the CPI to (i) by striking ‘‘to make’’ and inserting Copyright Restoration. Section 3 clarifies be used in calculating the fee increase is the ‘‘To make’’; and ambiguities and corrects drafting errors in increase since the last fee settlement (1990) (ii) in subparagraph (D) by striking ‘‘ad- the Copyright Restoration Act, which was or only that since 1995. The bill clarifies that justment; and’’ and inserting ‘‘adjustment.’’; enacted as part of the 1994 Uruguay Round the Copyright Office may increase its fees in and Agreements Act to restore copyright protec- any given year, provided it has not done so (D) in paragraph (3) by striking ‘‘to distrib- tion in the U.S. for certain works from WTO within the last five years, and that the fees ute’’ and inserting ‘‘To distribute’’. member countries that had fallen into the may be increased up to the amount required (20) Section 803(b) is amended in the second public domain. First, the bill corrects a to cover the reasonable costs incurred by the sentence by striking ‘‘subsection subsection’’ drafting error that precludes U.S. creators of Copyright Office plus a reasonable inflation and inserting ‘‘subsection’’. derivative works from continuing to exploit adjustment to account for future increases (21) The item relating to section 903 in the those works if copyright protection in the in costs. The bill also allows the Register of table of sections at the beginning of chapter underlying foreign work is restored under Copyrights to invest funds from the prepaid 9 is amended to read as follows: GATT. Second, the bill eliminates a duplica- fees in interest bearing securities in the U.S. ‘‘903. Ownership, transfer, licensure, and rec- tive reporting requirement. Third, the bill Treasury and to use the income from those ordation.’’. clarifies Congress’ intent that the effective investments for Copyright Office expenses. It date of restoration is January 1, 1996 (not (22) Section 909(b)(1) is amended— is expected that the proceeds will be used for 1995 as interpreted by some commentators). (A) by striking ‘‘force’’ and inserting the development of the Copyright Office’s Fourth, the bill clarifies the definition of ‘‘work’’; and new electronic registration, recordation, and ‘‘eligible country’’ as it pertains to limited (B) by striking ‘‘sumbol’’ and inserting deposit system. rights of continued exploitation for those ‘‘symbol’’. Copyright Arbitration Royalty Panels who rely on public domain works that were (23) Section 910(a) is amended in the second (CARPs). Section 9 clarifies administrative restored under GATT. An ambiguous ref- sentence by striking ‘‘as used’’ and inserting issues regarding the operation of the CARPs. erence in the original bill left open the pos- ‘‘As used’’. First, it gives the Librarian of Congress ex- sible interpretation that a party would not (24) Section 1006(b)(1) is amended by strik- press authority to pay panel members di- qualify as a ‘‘reliance party’’ where reliance ing ‘‘Federation Television’’ and inserting rectly in ratemaking and distribution pro- had not predated adherence to the Berne ‘‘Federation of Television’’. ceedings and clarifies that these arbitrators Convention for the country of origin—a date (25) Section 1007 is amended— are independent contractors acting on behalf that goes as far back as 1886 for many coun- (A) in subsection (a)(1) by striking ‘‘The of the U.S. (thus subject to laws governing tries. calendar year in which this chapter takes ef- the conduct of government employees). Sec- Digital Performance Right in Sound Re- fect’’ and inserting ‘‘calendar year 1992’’; and ond, it clarifies that copyright owners and cordings. Section 4 ensures that the effective (B) in subsection (b) by striking ‘‘the year users are responsible for equal shares of the rates under the 1995 digital performance in which this section takes effect’’ and in- costs of ratemaking proceedings. Third, it rights bill will not lapse. That bill requires serting ‘‘1992’’. clarifies by way of example the procedural new rates to be established during 2000, and and evidentiary rulings the Librarian of Con- (b) RELATED PROVISIONS.— the 1996 rates are to expire at the end of 2000. gress can issue with respect to CARP pro- (1) Section 1(a)(1) of the Act entitled ‘‘An In the case where the copyright arbitration ceedings. Fourth, it clarifies that the 1997 Act to amend chapter 9 of title 17, United royalty panel (CARP) does not complete its ratemaking proceeding for the satellite car- States Code, regarding protection extended work by the end of the year, or where the Li- rier compulsory license is a CARP proceed- to semiconductor chip products of foreign brarian of Congress does not complete its re- ing. entities’’, approved November 9, 1987 (17 view of the CARP’s report by the end of the Digital Audio Recording Devices. Section U.S.C. 914 note), is amended by striking year, this section provides that the 1996 rates 10 provides added flexibility for the Librar- ‘‘orginating’’ and inserting ‘‘originating’’. will continue beyond the December 31, 2000, ian of Congress in setting the negotiation pe- (2) Section 2319(b)(1) of title 18, United expiration date until 30 days after the Li- riod for the distribution of digital audio re- States Code, is amended by striking ‘‘last brarian publishes a decision to adopt or re- cording technology (DART) royalties, with 10’’ and inserting ‘‘least 10’’. ject the CARP’s rate adjustment. This sec- the intention of promoting settlements and SEC. 13. EFFECTIVE DATES. tion (as well as provisions in Section 5) also timely distribution of royalties. The current eliminates authorization for a CARP to pub- March 30 annual deadline for determining (a) IN GENERAL.—Except as provided in lish its report in the Federal Register since subsections (b) and (c), the amendments whether there exist controversies among only federal agencies are permitted to do so. made by this title shall take effect on the claimants has proven unworkable and is Instead, CARP decisions will be published by date of the enactment of this Act. eliminated by this section. the Librarian. Section 11 corrects a number- Miscellaneous Technical Amendments. (b) SATELLITE HOME VIEWER ACT OF 1994.— ing mistake in the 1995 Digital Performance Section 12 makes various technical correc- The amendments made by section 2 shall be Right bill. tions, such as spelling, grammatical, capital- effective as if enacted as part of the Satellite Negotiated Jukebox License. Section 6 re- ization, and other corrections, to title 17. Home Viewer Act of 1994 (Public Law 103– stores the definitions of a ‘‘jukebox’’ and a 369). ‘‘jukebox operator’’ to § 116A of Title 17. S. 507 (c) TECHNICAL AMENDMENT.—The amend- These definitions were mistakenly elimi- Be it enacted by the Senate and House of Rep- ment made by section 12(b)(1) shall be effec- nated from the old § 116 jukebox compulsory resentatives of the United States of America in tive as if enacted on November 9, 1987. license when that section was replaced by Congress assembled, S2688 CONGRESSIONAL RECORD — SENATE March 20, 1997 SECTION 1. SHORT TITLE. Subtitle A—Establishment of the United ceedings, subject to the provisions of section This Act may be cited as the ‘‘Omnibus States Patent and Trademark Organization 116; Patent Act of 1997’’. SEC. 111. ESTABLISHMENT OF THE UNITED (4) may indemnify the Director of the Unit- SEC. 2. TABLE OF CONTENTS. STATES PATENT AND TRADEMARK ed States Patent and Trademark Organiza- Sec. 1. Short title. ORGANIZATION AS A GOVERNMENT tion, the Commissioner of Patents, the Com- Sec. 2. Table of contents. CORPORATION. missioner of Trademarks, and other officers, TITLE I—UNITED STATES PATENT AND (a) ESTABLISHMENT.—The United States attorneys, agents, and employees (including TRADEMARK ORGANIZATION Patent and Trademark Organization is es- members of the Management Advisory Sec. 101. Short title. tablished as a wholly owned Government Boards of the Patent Office and the Trade- corporation subject to chapter 91 of title 31, mark Office) of the Organization for liabil- Subtitle A—Establishment of the United separate from any department, and shall be States Patent and Trademark Organization ities and expenses incurred within the scope an agency of the United States under the of their employment; Sec. 111. Establishment of the United States policy direction of the Secretary of Com- (5) may adopt, amend, and repeal bylaws, Patent and Trademark Organi- merce. rules, regulations, and determinations, zation as a Government cor- (b) OFFICES.—The United States Patent which— poration. and Trademark Organization shall maintain (A) shall govern the manner in which its Sec. 112. Powers and duties. its principal office in the District of Colum- business will be conducted and the powers Sec. 113. Organization and management. bia, or the metropolitan area thereof, for the Sec. 114. United States Patent Office. granted to it by law will be exercised; and service of process and papers and for the pur- Sec. 115. United States Trademark Office. (B) shall be made after notice and oppor- Sec. 116. Suits by and against the Organiza- pose of carrying out its powers, duties, and tunity for full participation by interested tion. obligations under this title. The United public and private parties; Sec. 117. Funding. States Patent and Trademark Organization (6) may acquire, construct, purchase, lease, Sec. 118. Transfers. shall be deemed, for purposes of venue in hold, manage, operate, improve, alter, and civil actions, to be a resident of the district Subtitle B—Effective Date; Technical renovate any real, personal, or mixed prop- in which its principal office is located except Amendments erty, or any interest therein, as it considers where jurisdiction is otherwise provided by necessary to carry out its functions; Sec. 131. Effective date. law. The United States Patent and Trade- (7)(A) may make such purchases, contracts Sec. 132. Technical and conforming amend- mark Organization may establish satellite ments. for the construction, maintenance, or man- offices in such places as it considers nec- agement and operation of facilities, and con- Subtitle C—Miscellaneous Provisions essary and appropriate in the conduct of its tracts for supplies or services, without re- Sec. 141. References. business. gard to the provisions of the Federal Prop- Sec. 142. Exercise of authorities. (c) REFERENCE.—For purposes of this title, erty and Administrative Services Act of 1949 Sec. 143. Savings provisions. a reference to the ‘‘Organization’’ shall be a (40 U.S.C. 471 et seq.), the Public Buildings Sec. 144. Transfer of assets. reference to the United States Patent and Act (40 U.S.C. 601 et seq.), and the Stewart B. Sec. 145. Delegation and assignment. Trademark Organization, unless the context McKinney Homeless Assistance Act (42 Sec. 146. Authority of Director of the Office provides otherwise. U.S.C. 11301 et seq.); and of Management and Budget SEC. 112. POWERS AND DUTIES. (B) may enter into and perform such pur- with respect to functions trans- (a) IN GENERAL.—The United States Patent chases and contracts for printing services, ferred. and Trademark Organization, under the pol- including the process of composition, Sec. 147. Certain vesting of functions consid- icy direction of the Secretary of Commerce, platemaking, presswork, silk screen proc- ered transfers. shall be responsible for— esses, binding, microform, and the products Sec. 148. Availability of existing funds. Sec. 149. Definitions. (1) the granting and issuing of patents and of such processes, as it considers necessary the registration of trademarks; to carry out the functions of the Organiza- TITLE II—EARLY PUBLICATION OF (2) conducting studies, programs, or ex- tion, without regard to sections 501 through PATENT APPLICATIONS changes of items or services regarding do- 517 and 1101 through 1123 of title 44, United Sec. 201. Short title. mestic and international patent and trade- States Code; Sec. 202. Early publication. mark law, the administration of the Organi- (8) may use, with their consent, services, Sec. 203. Time for claiming benefit of earlier zation, or any other function vested in the equipment, personnel, and facilities of other filing date. Organization by law, including programs to departments, agencies, and instrumental- Sec. 204. Provisional rights. recognize, identify, assess, and forecast the ities of the Federal Government, on a reim- Sec. 205. Prior art effect of published appli- technology of patented inventions and their bursable basis, and cooperate with such cations. utility to industry; other departments, agencies, and instrumen- Sec. 206. Cost recovery for publication. (3)(A) authorizing or conducting studies talities in the establishment and use of serv- Sec. 207. Conforming changes. and programs cooperatively with foreign pat- ices, equipment, and facilities of the Organi- Sec. 208. Last day of pendency of provisional ent and trademark offices and international zation; application. Sec. 209. Effective date. organizations, in connection with the grant- (9) may obtain from the Administrator of ing and issuing of patents and the registra- General Services such services as the Admin- TITLE III—PATENT TERM RESTORATION tion of trademarks; and istrator is authorized to provide to other Sec. 301. Patent term extension authority. (B) with the concurrence of the Secretary agencies of the United States, on the same Sec. 302. Effective date. of State, authorizing the transfer of not to basis as those services are provided to other TITLE IV—PRIOR DOMESTIC exceed $100,000 in any year to the Depart- agencies of the United States; COMMERCIAL USE ment of State for the purpose of making spe- (10) may use, with the consent of the Unit- Sec. 401. Short title. cial payments to international intergovern- ed States and the agency, government, or Sec. 402. Defense to patent infringement mental organizations for studies and pro- international organization concerned, the based on prior domestic com- grams for advancing international coopera- services, records, facilities, or personnel of mercial use. tion concerning patents, trademarks, and re- any State or local government agency or in- Sec. 403. Effective date and applicability. lated matters; and strumentality or foreign government or TITLE V—PATENT REEXAMINATION (4) disseminating to the public information international organization to perform func- REFORM with respect to patents and trademarks. tions on its behalf; (b) SPECIAL PAYMENTS.—The special pay- (11) may determine the character of, and Sec. 501. Short title. Sec. 502. Definitions. ments under subsection (a)(3)(B) may be in the necessity for, its obligations and expend- Sec. 503. Reexamination procedures. addition to any other payments or contribu- itures and the manner in which they shall be Sec. 504. Conforming amendments. tions to international organizations and incurred, allowed, and paid, subject to the Sec. 505. Effective date. shall not be subject to any limitations im- provisions of title 35, United States Code and posed by law on the amounts of such other the Act of July 5, 1946 (commonly referred to TITLE VI—MISCELLANEOUS PATENT payments or contributions by the United as the Trademark Act of 1946); PROVISIONS States Government. (12) may retain and use all of its revenues Sec. 601. Provisional applications. (c) SPECIFIC POWERS.—The Organization— and receipts, including revenues from the Sec. 602. International applications. (1) shall have perpetual succession; sale, lease, or disposal of any real, personal, Sec. 603. Plant patents. (2) shall adopt and use a corporate seal, or mixed property, or any interest therein, of Sec. 604. Electronic filing. which shall be judicially noticed and with the Organization, including for research and TITLE I—UNITED STATES PATENT AND which letters patent, certificates of trade- development and capital investment, subject TRADEMARK ORGANIZATION mark registrations, and papers issued by the to the provisions of section 10101 of the Om- SEC. 101. SHORT TITLE. Organization shall be authenticated; nibus Budget Reconciliation Act of 1990 (35 This title may be cited as the ‘‘United (3) may sue and be sued in its corporate U.S.C. 41 note); States Patent and Trademark Organization name and be represented by its own attor- (13) shall have the priority of the United Act of 1997’’. neys in all judicial and administrative pro- States with respect to the payment of debts March 20, 1997 CONGRESSIONAL RECORD — SENATE S2689 from bankrupt, insolvent, and decedents’ es- where a centralized administration of such such regulations as may be necessary to tates; functions would improve the efficiency of carry out this subsection. (14) may accept monetary gifts or dona- the Offices, as determined by agreement of (e) INAPPLICABILITY OF TITLE 5, UNITED tions of services, or of real, personal, or the Director, the Commissioner of Patents, STATES CODE, GENERALLY.—Except as other- mixed property, in order to carry out the and the Commissioner of Trademarks. wise provided in this section, officers and functions of the Organization; (F) Except as otherwise provided in this employees of the Organization shall not be (15) may execute, in accordance with its title, the Director shall ensure that— subject to the provisions of title 5, United bylaws, rules, and regulations, all instru- (i) the United States Patent Office and the States Code, relating to Federal employees. ments necessary and appropriate in the exer- United States Trademark Office, respec- (f) CONTINUED APPLICABILITY OF CERTAIN cise of any of its powers; and tively, shall— PROVISION OF TITLE 5, UNITED STATES CODE.— (16) may provide for liability insurance and (I) prepare all appropriation requests under (1) IN GENERAL.—The following provisions insurance against any loss in connection section 1108 of title 31, United States Code, of title 5, United States Code, shall apply to with its property, other assets, or operations for each office for submission by the Direc- the Organization and its officers and employ- either by contract or by self-insurance. tor; ees: (d) CONSTRUCTION.—Nothing in this section (II) adjust fees to provide sufficient reve- (A) Section 3110 (relating to employment of shall be construed to nullify, void, cancel, or nues to cover the expenses of such office; and relatives; restrictions). interrupt any pending request-for-proposal (III) expend funds derived from such fees (B) Subchapter II of chapter 55 (relating to let or contract issued by the General Serv- for only the functions of such office; and withholding pay). ices Administration for the specific purpose (ii) each such office is not involved in the (C) Subchapters II and III of chapter 73 (re- of relocating or leasing space to the United management of any other office. lating to employment limitations and politi- States Patent and Trademark Organization. (3) OATH.—The Director shall, before tak- cal activities, respectively). ing office, take an oath to discharge faith- SEC. 113. ORGANIZATION AND MANAGEMENT. (D) Chapter 71 (relating to labor-manage- fully the duties of the Organization. (a) OFFICES.—The United States Patent ment relations), subject to paragraph (2) and (4) COMPENSATION.—The Director shall re- and Trademark Organization shall consist subsection (g). ceive compensation at the rate of pay in ef- of— (E) Section 3303 (relating to political rec- fect for level III of the Executive Schedule (1) the Office of the Director; ommendations). under section 5314 of title 5, United States (2) the United States Patent Office; and (F) Subchapter II of chapter 61 (relating to Code and, in addition, may receive as a (3) the United States Trademark Office. flexible and compressed work schedules). bonus, an amount which would raise total (b) DIRECTOR.— (G) Section 21302(b)(8) (relating to whistle- compensation to the equivalent of the level (1) IN GENERAL.—The management of the blower protection) and whistleblower related of the rate of pay in effect for level II of the United States Patent and Trademark Orga- provisions of chapter 12 (covering the role of Executive Schedule under section 5313 of nization shall be vested in a Director of the the Office of Special Counsel). title 5, based upon an evaluation by the Sec- United States Patent and Trademark Orga- (2) COMPENSATION SUBJECT TO COLLECTIVE retary of Commerce of the Director’s per- nization (hereafter in this title referred to as BARGAINING.— formance as defined in an annual perform- the ‘‘Director’’, unless the context provides (A) IN GENERAL.—Notwithstanding any ance agreement between the Director and otherwise), who shall be a citizen of the other provision of law, for purposes of apply- the Secretary. The annual performance United States and who shall be appointed by ing chapter 71 of title 5, United States Code, agreement shall incorporate measurable the President, by and with the advice and pursuant to paragraph (1)(D), basic pay and goals as delineated in an annual performance consent of the Senate. The Director shall be other forms of compensation shall be consid- plan agreed to by the Director and the Sec- a person who, by reason of professional back- ered to be among the matters as to which retary. ground and experience in patent or trade- the duty to bargain in good faith extends (5) REMOVAL.—The Director shall serve at mark law, is especially qualified to manage under such chapter. the pleasure of the President. the Organization. (B) EXCEPTIONS.—The duty to bargain in (6) DESIGNEE OF DIRECTOR.—The Director (2) DUTIES.—(A) The Director shall— good faith shall not, by reason of subpara- shall designate an officer of the Organization (i) be responsible for the Management and graph (A), be considered to extend to any who shall be vested with the authority to act direction of the Organization and shall per- benefit under title 5, United States Code, in the capacity of the Director in the event form this duty in a fair, impartial, and equi- which is afforded by paragraph (1), (2), (3), or of the absence or incapacity of the Director. (4) of subsection (g). table manner; and (c) OFFICERS AND EMPLOYEES OF THE ORGA- (C) LIMITATIONS APPLY.—Nothing in this (ii) strive to meet the goals set forth in the NIZATION.— subsection shall be considered to allow any performance agreement described under (1) COMMISSIONERS OF PATENTS AND TRADE- limitation under subsection (d) to be ex- paragraph (4). MARKS.—The Director shall appoint a Com- (B) The Director shall advise the Presi- missioner of Patents and a Commissioner of ceeded. dent, through and under the policy direction Trademarks under section 3 of title 35, Unit- (g) PROVISIONS OF TITLE 5, UNITED STATES of the Secretary of Commerce, of all activi- ed States Code and section 53 of the Act of CODE, THAT CONTINUE TO APPLY, SUBJECT TO ties of the Organization undertaken in re- July 5, 1946 (commonly referred to as the CERTAIN REQUIREMENTS.— sponse to obligations of the United States Trademark Act of 1946), respectively, as (1) RETIREMENT.—(A) The provisions of sub- under treaties and executive agreements, or amended by this Act. chapter III of chapter 83 and chapter 84 of which relate to cooperative programs with (2) OTHER OFFICERS AND EMPLOYEES.—The title 5, United States Code, shall apply to the those authorities of foreign governments Director shall— Organization and its officers and employees, that are responsible for granting patents or (A) appoint officers, employees (including subject to subparagraph (B). registering trademarks. The Director shall attorneys), and agents of the Organization as (B)(i) The amount required of the Organi- also recommend to the President, through the Director considers necessary to carry out zation under the second sentence of section and under the policy direction of the Sec- its functions; 8334(a)(1) of title 5, United States Code, with retary of Commerce, changes in law or policy (B) fix the compensation of such officers respect to any particular individual shall, in- which may improve the ability of United and employees, except as provided in sub- stead of the amount which would otherwise States citizens to secure and enforce patent section (e); and apply, be equal to the normal-cost percent- and trademark rights in the United States or (C) define the authority and duties of such age (determined with respect to officers and in foreign countries. officers and employees and delegate to them employees of the Organization using dy- (C)(i) At the direction of the President, the such of the powers vested in the Organiza- namic assumptions, as defined by section Director may represent the United States in tion as the Director may determine. 8401(9) of such title) of the individual’s basic international negotiations on matters of pat- (3) PERSONNEL LIMITATIONS.—The Organiza- pay, minus the amount required to be with- ents or trademarks, or may designate an of- tion shall not be subject to any administra- held from such pay under such section ficer or officers of the Organization to par- tively or statutorily imposed limitation on 8334(a)(1). ticipate in such negotiations. positions or personnel, and no positions or (ii) The amount required of the Organiza- (ii) Nothing in this subparagraph shall be personnel of the Organization shall be taken tion under section 8334(k)(1)(B) of title 5, construed to alter any statutory responsibil- into account for purposes of applying any United States Code, with respect to any par- ity of the Secretary of State or the United such limitation. ticular individual shall be equal to an States Trade Representative. (d) LIMITS ON COMPENSATION.—Except as amount computed in a manner similar to (D) The Director, in consultation with the otherwise provided by law, the annual rate of that specified in clause (i), as determined in Director of the Office of Personnel Manage- basic pay of an officer or employee of the Or- accordance with clause (iii). ment, shall maintain a program for identify- ganization may not be fixed at a rate that (iii) Any regulations necessary to carry ing national security positions and providing exceeds, and total compensation payable to out this subparagraph shall be prescribed by for appropriate security clearances. any such officer or employee for any year the Office of Personnel Management. (E) The Director may perform such person- may not exceed, the annual rate of basic pay (C) The United States Patent and Trade- nel, procurement, and other functions, with in effect for level II of the Executive Sched- mark Organization may supplement the ben- respect to the United States Patent Office ule under section 5313 of title 5, United efits provided under the preceding provisions and the United States Trademark Office, States Code. The Director shall prescribe of this paragraph. S2690 CONGRESSIONAL RECORD — SENATE March 20, 1997

(2) HEALTH BENEFITS.—(A) The provisions (A) Such programs shall be consistent with States Code, before the effective date de- of chapter 89 of title 5, United States Code, the merit principles in section 2301(b) of title scribed in paragraph (1), by any individual shall apply to the Organization and its offi- 5, United States Code. who becomes an officer or employee of the cers and employees, subject to subparagraph (B) Such programs shall provide veterans Organization under this subsection, are obli- (B). preference protections equivalent to those gations of the Organization. (B)(i) With respect to any individual who established by sections 2108, 3308 through (4) TERMINATION RIGHTS.—Any employee re- becomes an officer or employee of the Orga- 3318, 3320, 3502, and 3504 of title 5, United ferred to in paragraph (1) or (2) of this sub- nization pursuant to subsection (i), the eligi- States Code. section whose employment with the Organi- bility of such individual to participate in (C)(i) The right to work shall not be sub- zation is terminated during the 1-year period such program as an annuitant (or of any ject to undue restraint or coercion. The right beginning on the effective date of this title other person to participate in such program to work shall not be infringed or restricted shall be entitled to rights and benefits, to be as an annuitant based on the death of such in any way based on membership in, affili- afforded by the Organization, similar to individual) shall be determined disregarding ation with, or financial support of a labor or- those such employee would have had under the requirements of section 8905(b) of title 5, ganization. Federal law if termination had occurred im- United States Code. The preceding sentence (ii) No person shall be required, as a condi- mediately before such date. An employee shall not apply if the individual ceases to be tion of employment or continuation of em- who would have been entitled to appeal any an officer or employee of the Organization ployment— such termination to the Merit Systems Pro- for any period of time after becoming an offi- (I) to resign or refrain from voluntary tection Board, if such termination had oc- membership in, voluntary affiliation with, or cer or employee of the Organization pursu- curred immediately before such effective voluntary financial support of a labor orga- ant to subsection (i) and before separation. date, may appeal any such termination oc- nization; (ii) The Government contributions author- curring within such 1-year period to the (II) to become or remain a member of a ized by section 8906 of title 5, United States Board under such procedures as it may pre- labor organization; Code, for health benefits for anyone partici- scribe. (III) to pay any dues, fees, assessments, or pating in the health benefits program pursu- (5) TRANSITION PROVISIONS.—(A)(i) On or other charges of any kind or amount to a after the effective date of this title, the ant to this subparagraph shall be made by labor organization; the Organization in the same manner as pro- President shall appoint a Director of the (IV) to pay to any charity or other third United States Patent and Trademark Orga- vided under section 8906(g)(2) of such title party, in lieu of such payments, any amount with respect to the United States Postal nization who shall serve until the earlier of— equivalent to or a pro rata portion of dues, (I) the date on which a Director qualifies Service for individuals associated therewith. fees, assessments, or other charges regularly (iii) For purposes of this subparagraph, the under subsection (a); or required of members of a labor organization; (II) the date occurring 1 year after the ef- term ‘‘annuitant’’ has the meaning given or such term by section 8901(3) of title 5, United fective date of this title. (V) to be recommended, approved, referred, (ii) The President shall not make more States Code. or cleared by or through a labor organiza- (C) The Organization may supplement the than 1 appointment under this subparagraph. tion. (B) The individual serving as the Assistant benefits provided under the preceding provi- (iii) This subparagraph shall not apply to a Commissioner of Patents on the day before sions of this paragraph. person described in section 7103(a)(2)(v) of the effective date of this title shall serve as (3) LIFE INSURANCE.—(A) The provisions of title 5, United States Code, or a ‘‘super- the Commissioner of Patents until the date chapter 87 of title 5, United States Code, visor’’, ‘‘management official’’, or ‘‘confiden- on which a Commissioner of Patents is ap- shall apply to the Organization and its offi- tial employee’’ as those terms are defined in pointed under section 3 of title 35, United cers and employees, subject to subparagraph 7103(a) (10), (11), and (13) of such title. States Code, as amended by this Act. (B). (iv) Any labor organization recognized by (C) The individual serving as the Assistant (B)(i) Eligibility for life insurance coverage the Organization as the exclusive representa- Commissioner of Trademarks on the day be- after retirement or while in receipt of com- tive of a unit of employees of the Organiza- fore the effective date of this title shall pensation under subchapter I of chapter 81 of tion shall represent the interests of all em- serve as the Commissioner of Trademarks ployees in that unit without discrimination title 5, United States Code, shall be deter- until the date on which a Commissioner of and without regard to labor organization mined, in the case of any individual who be- Trademarks is appointed under section 53 of membership. comes an officer or employee of the Organi- the Act of July 5, 1946 (commonly referred to (2) ADOPTION OF EXISTING LABOR AGREE- zation pursuant to subsection (i), without re- as the Trademark Act of 1946), as amended gard to the requirements of section 8706(b) MENTS.—The Organization shall adopt all labor agreements which are in effect, as of by this Act. (1) or (2) of such title, but subject to the con- (j) COMPETITIVE STATUS.—For purposes of the day before the effective date of this title, dition specified in the last sentence of para- appointment to a position in the competitive with respect to such Organization (as then in graph (2)(B)(i) of this subsection. service for which an officer or employee of effect). (ii) Government contributions under sec- the Organization is qualified, such officer or (i) CARRYOVER OF PERSONNEL.— tion 8708(d) of such title on behalf of any employee shall not forfeit any competitive (1) FROM PTO.—Effective as of the effective such individual shall be made by the Organi- status, acquired by such officer or employee date of this title, all officers and employees zation in the same manner as provided under before the effective date of this title, by rea- of the Patent and Trademark Office on the paragraph (3) thereof with respect to the son of becoming an officer or employee of day before such effective date shall become United States Postal Service for individuals the Organization under subsection (i). officers and employees of the Organization, associated therewith. (k) SAVINGS PROVISIONS.—Compensation, without a break in service. (C) The Organization may supplement the benefits, and other terms and conditions of (2) OTHER PERSONNEL.—(A) Any individual benefits provided under the preceding provi- employment in effect immediately before the who, on the day before the effective date of sions of this paragraph. effective date of this title, whether provided this title, is an officer or employee of the De- (4) EMPLOYEES’ COMPENSATION FUND.—(A) by statute or by rules and regulations of the partment of Commerce (other than an officer Officers and employees of the Organization former Patent and Trademark Office or the or employee under paragraph (1)) shall be shall not become ineligible to participate in executive branch of the Government of the transferred to the Organization if— the program under chapter 81 of title 5, Unit- United States, shall continue to apply to of- (i) such individual serves in a position for ficers and employees of the Organization, ed States Code, relating to compensation for which a major function is the performance of until changed in accordance with this sec- work injuries, by reason of subsection (e). work reimbursed by the Patent and Trade- tion (whether by action of the Director or (B) The Organization shall remain respon- mark Office, as determined by the Secretary otherwise). sible for reimbursing the Employees’ Com- of Commerce; (l) REMOVAL OF QUASI-JUDICIAL EXAMIN- pensation Fund, pursuant to section 8147 of (ii) such individual serves in a position ERS.—The Organization may remove a patent title 5, United States Code, for compensation that performed work in support of the Pat- examiner or examiner-in-chief, or a trade- paid or payable after the effective date of ent and Trademark Office during at least mark examiner or member of a Trademark this title in accordance with chapter 81 of half of the incumbent’s work time, as deter- Trial and Appeal Board only for such cause title 5, United States Code, with regard to mined by the Secretary of Commerce; or as will promote the efficiency of the Organi- any injury, disability, or death due to events (iii) such transfer would be in the interest zation. arising before such date, whether or not a of the Organization, as determined by the SEC. 114. UNITED STATES PATENT OFFICE. claim has been filed or is final on such date. Secretary of Commerce in consultation with (a) ESTABLISHMENT OF THE PATENT OFFICE (h) LABOR-MANAGEMENT RELATIONS.— the Director. AS A SEPARATE ADMINISTRATIVE UNIT.—Sec- (1) LABOR RELATIONS AND EMPLOYEE RELA- (B) Any transfer under this paragraph shall tion 1 of title 35, United States Code, is TIONS PROGRAMS.—The Organization shall de- be effective as of the same effective date as amended to read as follows: velop hiring practices, labor relations and referred to in paragraph (1), and shall be ‘‘§ 1. Establishment employee relations programs with the objec- made without a break in service. ‘‘(a) ESTABLISHMENT.—The United States tive of improving productivity and effi- (3) ACCUMULATED LEAVE.—The amount of Patent Office is established as a separate ad- ciency, incorporating the following prin- sick and annual leave and compensatory ministrative unit of the United States Pat- ciples: time accumulated under title 5, United ent and Trademark Organization, where March 20, 1997 CONGRESSIONAL RECORD — SENATE S2691

records, books, drawings, specifications, and ‘‘(D) CONSULTATION WITH THE MANAGEMENT ‘‘(1) review the policies, goals, perform- other papers and things pertaining to pat- ADVISORY BOARD.—(i) The Commissioner ance, budget, and user fees of the United ents shall be kept and preserved, except as shall consult with the Management Advisory States Patent Office, and advise the Com- otherwise provided by law. Board established in section 5— missioner on these matters; ‘‘(b) REFERENCE.—For purposes of this ‘‘(I) on a regular basis on matters relating ‘‘(2) within 60 days after the end of each title, the United States Patent Office shall to the operation of the Office; and fiscal year— also be referred to as the ‘Office’ and the ‘‘(II) before submitting budgetary propos- ‘‘(A) prepare an annual report on the mat- ‘Patent Office’.’’. als to the Director of the United States Pat- ters referred to in paragraph (1); (b) POWERS AND DUTIES.—Section 2 of title ent and Trademark Organization for submis- ‘‘(B) transmit the report to the Director of 35, United States Code, is amended to read as sion to the Office of Management and Budget the United States Patent and Trademark Or- follows: or changing or proposing to change patent ganization, the President, and the Commit- ‘‘§ 2. Powers and duties user fees or patent regulations. tees on the Judiciary of the Senate and the ‘‘The United States Patent Office, under ‘‘(ii) The Director of the United States House of Representatives; and the policy direction of the Secretary of Com- Patent and Trademark Organization shall ‘‘(C) publish the report in the Patent Office merce through the Director of the United determine whether such fees or regulations Official Gazette. States Patent and Trademark Organization, are consistent with the policy direction of ‘‘(f) COMPENSATION.—Each member of the shall be responsible for— the Secretary of Commerce. Advisory Board shall be compensated for ‘‘(1) granting and issuing patents; ‘‘(3) OATH.—The Commissioner shall, be- each day (including travel time) during ‘‘(2) conducting studies, programs, or ex- fore taking office, take an oath to discharge which such member is attending meetings or changes of items or services regarding do- faithfully the duties of the Office. conferences of the Advisory Board or other- mestic and international patent law, the ad- ‘‘(4) COMPENSATION.— wise engaged in the business of the Advisory ministration of the Organization, or any ‘‘(A) IN GENERAL.—The Commissioner shall Board, at the rate which is the daily equiva- other function vested in the Organization by receive compensation at the rate of pay in lent of the annual rate of basic pay in effect law, including programs to recognize, iden- effect for level IV of the Executive Schedule for level III of the Executive Schedule under tify, assess, and forecast the technology of under section 5315 of title 5. section 5314 of title 5, and while away from patented inventions and their utility to in- ‘‘(B) BONUS.—In addition to compensation such member’s home or regular place of busi- dustry; under subparagraph (A), the Commissioner ness such member may be allowed travel ex- ‘‘(3) authorizing or conducting studies and may, at the discretion of the Director of the penses, including per diem in lieu of subsist- programs cooperatively with foreign patent United States Patent and Trademark Orga- ence, as authorized by section 5703 of title 5. offices and international organizations, in nization, receive as a bonus, an amount ‘‘(g) ACCESS TO INFORMATION.—Members of connection with the granting and issuing of which would raise total compensation to the the Advisory Board shall be provided access patents; and equivalent of the rate of pay in effect for to records and information in the United ‘‘(4) disseminating to the public informa- level III of the Executive Schedule under sec- States Patent Office, except for personnel or tion with respect to patents. tion 5314 of title 5. other privileged information and informa- (c) ORGANIZATION AND MANAGEMENT.—Sec- ‘‘(b) OFFICERS AND EMPLOYEES.—The Com- tion concerning patent applications required tion 3 of title 35, United States Code, is missioner shall appoint a Deputy Commis- to be kept in confidence by section 122.’’. amended to read as follows: sioner of Patents who shall be vested with (e) CONFORMING AMENDMENTS.—Section 6 of ‘‘§ 3. Officers and employees the authority to act in the capacity of the title 35, United States Code, and the item re- lating to such section in the table of con- ‘‘(a) COMMISSIONER.— Commissioner in the event of the absence or tents for chapter 1 of title 35, United States ‘‘(1) IN GENERAL.—The management of the incapacity of the Commissioner. In the event Code, are repealed. United States Patent Office shall be vested of a vacancy in the office of Commissioner, (f) BOARD OF PATENT APPEALS AND INTER- in a Commissioner of Patents, who shall be a the Deputy Commissioner shall fill the office FERENCES.—Section 7 of title 35, United citizen of the United States and who shall be of Commissioner until a new Commissioner States Code, is amended to read as follows: appointed by the Director of the United is appointed and takes office. Other officers, States Patent and Trademark Organization attorneys, employees, and agents shall be se- ‘‘§ 7. Board of Patent Appeals and Inter- and shall serve at the pleasure of the Direc- lected and appointed by the Commissioner, ferences tor of the United States Patent and Trade- and shall be vested with such powers and du- ‘‘(a) ESTABLISHMENT AND COMPOSITION.— mark Organization. The Commissioner of ties as the Commissioner may determine.’’. There shall be in the United States Patent Patents shall be a person who, by reason of (d) MANAGEMENT ADVISORY BOARD.—Chap- Office a Board of Patent Appeals and Inter- professional background and experience in ter 1 of part I of title 35, United States Code, ferences. The Commissioner, the Deputy patent law, is especially qualified to manage is amended by inserting after section 4 the Commissioner, and the examiners-in-chief the Office. following: shall constitute the Board. The examiners- ‘‘(2) DUTIES.— ‘‘§ 5. Patent Office Management Advisory in-chief shall be persons of competent legal ‘‘(A) IN GENERAL.—The Commissioner shall Board knowledge and scientific ability. ‘‘(b) DUTIES.— be responsible for all aspects of the manage- ‘‘(a) ESTABLISHMENT OF MANAGEMENT ADVI- ‘‘(1) IN GENERAL.—The Board of Patent Ap- ment, administration, and operation of the SORY BOARD.— peals and Interferences shall, on written ap- Office, including the granting and issuing of ‘‘(1) APPOINTMENT.—The United States Pat- patents, and shall perform these duties in a ent Office shall have a Management Advi- peal of an applicant, a patent owner, or a fair, impartial, and equitable manner. sory Board (hereafter in this title referred to third-party requester in a reexamination ‘‘(B) ADVISING THE DIRECTOR OF THE UNITED as the ‘Advisory Board’) of 5 members, who proceeding— STATES PATENT AND TRADEMARK ORGANIZA- shall be appointed by the President and shall ‘‘(A) review adverse decisions of examin- TION.—The Commissioner of Patents shall serve at the pleasure of the President. Not ers— advise the Director of the United States Pat- more than 3 of the 5 members shall be mem- ‘‘(i) upon applications for patents; and ent and Trademark Organization of all ac- bers of the same political party. ‘‘(ii) in reexamination proceedings; and ‘‘(B) determine priority and patentability tivities of the Office undertaken in response ‘‘(2) CHAIR.—The President shall designate to obligations of the United States under a Chair of the Advisory Board, whose term as of invention in interferences declared under treaties and executive agreements, or which chair shall be for 3 years. section 135(a). ‘‘(2) HEARINGS.—Each appeal and inter- relate to cooperative programs with those ‘‘(3) TIMING OF APPOINTMENTS.—Initial ap- authorities of foreign governments that are pointments to the Advisory Board shall be ference shall be heard by at least 3 members responsible for granting patents. The Com- made within 3 months after the effective of the Board, who shall be designated by the missioner of Patents shall advise the Direc- date of the United States Patent and Trade- Deputy Commissioner. Only the Board of tor of the United States Patent and Trade- mark Organization Act of 1997. Vacancies Patent Appeals and Interferences may grant mark Organization on matters of patent law shall be filled in the manner in which the rehearings.’’. (g) ANNUAL REPORT OF COMMISSIONER.— and shall recommend to the Director of the original appointment was made under this Section 14 of title 35, United States Code, is United States Patent and Trademark Orga- subsection within 3 months after they occur. amended to read as follows: nization changes in law or policy which may ‘‘(b) BASIS FOR APPOINTMENTS.—Members improve the ability of United States citizens of the Advisory Board shall be citizens of the ‘‘§ 14. Annual report to Congress to secure and enforce patent rights in the United States who shall be chosen so as to ‘‘The Commissioner shall report to the Di- United States or in foreign countries. represent the interests of diverse users of the rector of the United States Patent and ‘‘(C) REGULATIONS.—The Commissioner United States Patent Office, and shall in- Trademark Organization such information as may establish regulations, not inconsistent clude individuals with substantial back- the Director is required to submit to Con- with law, for the conduct of proceedings in ground and achievement in corporate finance gress annually under chapter 91 of title 31, the Patent Office. The Director of the United and management. including— States Patent and Trademark Organization ‘‘(c) MEETINGS.—The Advisory Board shall ‘‘(1) the total of the moneys received and shall determine whether such regulations are meet at the call of the Chair to consider an expended by the Office; consistent with the policy direction of the agenda set by the Chair. ‘‘(2) the purposes for which the moneys Secretary of Commerce. ‘‘(d) DUTIES.—The Advisory Board shall— were spent; S2692 CONGRESSIONAL RECORD — SENATE March 20, 1997

‘‘(3) the quality and quantity of the work (1) by redesignating titles X and XI as ti- ‘‘(D) CONSULTATION WITH THE MANAGEMENT of the Office; and tles XI and XII, respectively; ADVISORY BOARD.—(i) The Commissioner ‘‘(4) other information relating to the Of- (2) by redesignating sections 45, 46, 47, 48, shall consult with the Trademark Office fice.’’. 49, 50, and 51 as sections 61, 71, 72, 73, 74, 75, Management Advisory Board established (h) PRACTICE BEFORE PATENT OFFICE.— and 76, respectively; and under section 54— (1) IN GENERAL.—Section 31 of title 35, (3) by inserting after title IX the following ‘‘(I) on a regular basis on matters relating United States Code, is amended to read as new title: to the operation of the Office; and follows: ‘‘TITLE X—UNITED STATES TRADEMARK ‘‘(II) before submitting budgetary propos- ‘‘§ 31. Regulations for agents and attorneys OFFICE als to the Director of the United States Pat- ent and Trademark Organization for submis- ‘‘The Commissioner may prescribe regula- ‘‘SEC. 51. ESTABLISHMENT. sion to the Office of Management and Budget tions governing the recognition and conduct ‘‘(a) ESTABLISHMENT.—The United States or changing or proposing to change trade- of agents, attorneys, or other persons rep- Trademark Office is established as a sepa- mark user fees or trademark regulations. resenting applicants or other parties before rate administrative unit of the United States ‘‘(ii) The Director of the United States the Office. The regulations may require such Patent and Trademark Organization. Patent and Trademark Organization shall persons, before being recognized as rep- ‘‘(b) REFERENCE.—For purposes of this resentatives of applicants or other persons, chapter, the United States Trademark Office determine whether such fees or regulations to show that they are of good moral char- shall also be referred to as the ‘Office’ and are consistent with the policy direction of acter and reputation and are possessed of the the ‘Trademark Office’. the Secretary of Commerce. ‘‘(E) PUBLICATIONS.—(i) The Commissioner necessary qualifications to render to appli- ‘‘SEC. 52. POWERS AND DUTIES. cants or other persons valuable service, ad- ‘‘The United States Trademark Office, may print, or cause to be printed, the follow- vice, and assistance in the presentation or under the policy direction of the Secretary ing: prosecution of their applications or other of Commerce through the Director of the ‘‘(I) Certificates of trademark registra- business before the Office.’’. United States Patent and Trademark Orga- tions, including statements and drawings, together with copies of the same. (2) DESIGNATION OF ATTORNEY TO CONDUCT nization, shall be responsible for— ‘‘(II) The Official Gazette of the United HEARING.—Section 32 of title 35, United ‘‘(1) the registration of trademarks; States Code, is amended in the first sentence ‘‘(2) conducting studies, programs, or ex- States Trademark Office. by striking ‘‘Patent and Trademark Office’’ changes of items or services regarding do- ‘‘(III) Annual indexes of trademarks and and inserting ‘‘Patent Office’’ and by insert- mestic and international trademark law or registrants. ing before the last sentence the following: the administration of the Office; ‘‘(IV) Annual volumes of decisions in trade- ‘‘The Commissioner shall have the discretion ‘‘(3) authorizing or conducting studies and mark cases. to designate any attorney who is an officer programs cooperatively with foreign trade- ‘‘(V) Pamphlet copies of laws and rules re- or employee of the United States Patent Of- mark offices and international organiza- lating to trademarks and circulars or other fice to conduct the hearing required by this tions, in connection with the registration of publications relating to the business of the section.’’. trademarks; and Office. (i) FUNDING.— ‘‘(4) disseminating to the public informa- ‘‘(ii) The Commissioner may exchange any (1) ADJUSTMENT OF FEES.—Section 41(f) of tion with respect to trademarks. of the publications specified under clause (i) for publications desirable for the use of the title 35, United States Code, is amended to ‘‘SEC. 53. OFFICERS AND EMPLOYEES. Trademark Office. read as follows: ‘‘(a) COMMISSIONER.— ‘‘(3) OATH.—The Commissioner shall, be- ‘‘(f) The Commissioner, after consulting ‘‘(1) IN GENERAL.—The management of the fore taking office, take an oath to discharge with the Patent Office Management Advi- United States Trademark Office shall be faithfully the duties of the Office. sory Board pursuant to section 3(a)(2)(C) of vested in a Commissioner of Trademarks, ‘‘(4) COMPENSATION.— this title and after notice and opportunity who shall be a citizen of the United States ‘‘(A) IN GENERAL.—The Commissioner shall for full participation by interested public and who shall be appointed by the Director receive compensation at the rate of pay in and private parties, may, by regulation, ad- of the United States Patent and Trademark effect for level IV of the Executive Schedule just the fees established in this section. The Organization and shall serve at the pleasure under section 5315 of title 5, United States Director of the United States Patent and of the Director of the United States Patent Code. Trademark Organization shall determine and Trademark Organization. The Commis- ‘‘(B) BONUS.—In addition to compensation whether such fees are consistent with the sioner of Trademarks shall be a person who, under subparagraph (A), the Commissioner policy direction of the Secretary of Com- by reason of professional background and ex- may, at the discretion of the Director of the merce.’’. perience in trademark law, is especially United States Patent and Trademark Orga- (2) PATENT OFFICE FUNDING.—Section 42 of qualified to manage the Office. nization, receive as a bonus, an amount title 35, United States Code, is amended to ‘‘(2) DUTIES.— which would raise total compensation to the read as follows: ‘‘(A) IN GENERAL.—The Commissioner shall equivalent of the rate of pay in effect for ‘‘§ 42. Patent Office funding be responsible for all aspects of the manage- level III of the Executive Schedule under sec- ‘‘(a) FEES PAYABLE TO THE OFFICE.—All ment, administration, and operation of the tion 5314 of title 5. Office, including the registration of trade- fees for services performed by or materials ‘‘(b) OFFICERS AND EMPLOYEES.—The Com- furnished by the United States Patent Office marks, and shall perform these duties in a missioner shall appoint a Deputy Commis- shall be payable to the Office. fair, impartial, and equitable manner. sioner of Trademarks who shall be vested ‘‘(b) USE OF MONEYS.—Moneys from fees ‘‘(B) ADVISING THE DIRECTOR OF THE UNITED with the authority to act in the capacity of shall be available to the United States Pat- STATES PATENT AND TRADEMARK ORGANIZA- the Commissioner in the event of the ab- ent Office to carry out, to the extent pro- TION.—The Commissioner of Trademarks sence or incapacity of the Commissioner. In vided in appropriations Acts, the functions shall advise the Director of the United the event of a vacancy in the office of Com- of the Office. Moneys of the Office not other- States Patent and Trademark Organization missioner, the Deputy Commissioner shall wise used to carry out the functions of the of all activities of the Office undertaken in fill the office of Commissioner until a new Office shall be kept in cash on hand or on de- response to obligations of the United States Commissioner is appointed and takes office. posit, or invested in obligations of the Unit- under treaties and executive agreements, or Other officers, attorneys, employees, and ed States or guaranteed by the United which relate to cooperative programs with agents shall be selected and appointed by the States, or in obligations or other instru- those authorities of foreign governments Commissioner, and shall be vested with such ments which are lawful investments for fidu- that are responsible for registering trade- powers and duties as the Commissioner may ciary, trust, or public funds. Fees available marks. The Commissioner of Trademarks determine. to the Commissioner under this title shall be shall advise the Director of the United ‘‘SEC. 54. TRADEMARK OFFICE MANAGEMENT AD- used only for the processing of patent appli- States Patent and Trademark Organization VISORY BOARD. cations and for other services and materials on matters of trademark law and shall rec- ‘‘(a) ESTABLISHMENT OF MANAGEMENT ADVI- relating to patents. ommend to the Director of the United States SORY BOARD.— ‘‘(c) CONTRIBUTION TO THE OFFICE OF THE Patent and Trademark Organization changes ‘‘(1) APPOINTMENT.—The United States DIRECTOR OF THE UNITED STATES PATENT AND in law or policy which may improve the abil- Trademark Office shall have a Management TRADEMARK ORGANIZATION.—The Patent Of- ity of United States citizens to secure and Advisory Board (hereafter in this title re- fice shall contribute 50 percent of the annual enforce trademark rights in the United ferred to as the ‘Advisory Board’) of 5 mem- budget of the Office of the Director of the States or in foreign countries. bers, who shall be appointed by the President United States Patent and Trademark Orga- ‘‘(C) REGULATIONS.—The Commissioner and shall serve at the pleasure of the Presi- nization.’’. may establish regulations, not inconsistent dent. Not more than 3 of the 5 members shall SEC. 115. UNITED STATES TRADEMARK OFFICE. with law, for the conduct of proceedings in be members of the same political party. (a) ESTABLISHMENT OF THE UNITED STATES the Trademark Office. The Director of the ‘‘(2) CHAIR.—The President shall designate TRADEMARK OFFICE AS A SEPARATE ADMINIS- United States Patent and Trademark Orga- a Chair of the Advisory Board, whose term as TRATIVE UNIT.—The Act of July 5, 1946 (com- nization shall determine whether such regu- chair shall be for 3 years. monly referred to as the Trademark Act of lations are consistent with the policy direc- ‘‘(3) TIMING OF APPOINTMENTS.—Initial ap- 1946) is amended— tion of the Secretary of Commerce. pointments to the Advisory Board shall be March 20, 1997 CONGRESSIONAL RECORD — SENATE S2693 made within 3 months after the effective marks and for other services and materials the activities of the United States Patent Of- date of the United States Patent and Trade- relating to trademarks. fice and the United States Trademark Office. mark Organization Act of 1997. Vacancies ‘‘(c) CONTRIBUTION TO THE OFFICE OF THE Borrowing under this section shall be subject shall be filled in the manner in which the DIRECTOR OF THE UNITED STATES PATENT AND to prior approval in appropriations Acts. original appointment was made under this TRADEMARK ORGANIZATION.—The Trademark Such borrowing shall not exceed amounts ap- section within 3 months after they occur. Office shall contribute 50 percent of the an- proved in appropriations Acts. ‘‘(b) BASIS FOR APPOINTMENTS.—Members nual budget of the Office of the Director of (2) BORROWING AUTHORITY.—Any borrowing of the Advisory Board shall be citizens of the the United States Patent and Trademark Or- under this subsection shall be repaid only United States who shall be chosen so as to ganization.’’. from fees paid to the Office for which such represent the interests of diverse users of the (b) TRADEMARK TRIAL AND APPEAL obligations were issued and surcharges ap- United States Trademark Office, and shall BOARD.—Section 17 of the Act of July 5, 1946 propriated by Congress. Such obligations include individuals with substantial back- (commonly referred to as the Trademark Act shall be redeemable at the option of the ground and achievement in corporate finance of 1946) (15 U.S.C. 1067) is amended to read as United States Patent and Trademark Orga- and management. follows: nization before maturity in the manner stip- ‘‘(c) MEETINGS.—The Advisory Board shall ‘‘SEC. 17. (a) In every case of interference, ulated in such obligations and shall have meet at the call of the Chair to consider an opposition to registration, application to such maturity as is determined by the Unit- agenda set by the Chair. register as a lawful concurrent user, or appli- ed States Patent and Trademark Organiza- ‘‘(d) DUTIES.—The Advisory Board shall— cation to cancel the registration of a mark, tion with the approval of the Secretary of ‘‘(1) review the policies, goals, perform- the Commissioner shall give notice to all the Treasury. Each such obligation issued to ance, budget, and user fees of the United parties and shall direct a Trademark Trial the Treasury shall bear interest at a rate not States Trademark Office, and advise the and Appeal Board to determine and decide less than the current yield on outstanding Commissioner on these matters; and the respective rights of registration. marketable obligations of the United States ‘‘(2) within 60 days after the end of each ‘‘(b) The Trademark Trial and Appeal of comparable maturity during the month fiscal year— Board shall include the Commissioner of preceding the issuance of the obligation as ‘‘(A) prepare an annual report on the mat- Trademarks, the Deputy Commissioner of determined by the Secretary of the Treas- ters referred to under paragraph (1); Trademarks, and members competent in ury. ‘‘(B) transmit the report to the Director of trademark law who are appointed by the (3) PURCHASE OF OBLIGATIONS.—The Sec- the United States Patent and Trademark Or- Commissioner.’’. retary of the Treasury shall purchase any ganization, the President, and the Commit- (c) DETERMINATION OF FEES.—Section 31(a) obligations of the United States Patent and tees on the Judiciary of the Senate and the of the Act of July 5, 1946 (commonly referred Trademark Organization issued under this House of Representatives; and to as the Trademark Act of 1946) (15 U.S.C. subsection and for such purpose the Sec- ‘‘(C) publish the report in the Trademark 1067(a)) is amended by striking the second retary of the Treasury is authorized to use as Office Official Gazette. and third sentences and inserting the follow- a public-debt transaction the proceeds of any ‘‘(f) COMPENSATION.—Each member of the ing: ‘‘Fees established under this subsection securities issued under chapter 31 of title 31, Advisory Board shall be compensated for may be adjusted by the Commissioner, after United States Code, and the purposes for each day (including travel time) during consulting with the Trademark Office Man- which securities may be issued under that which such member is attending meetings or agement Advisory Board in accordance with chapter are extended to include such pur- conferences of the Advisory Board or other- section 53(a)(2)(C) of this Act and after no- pose. wise engaged in the business of the Advisory tice and opportunity for full participation by (4) TREATMENT.—Payment under this sub- Board, at the rate which is the daily equiva- interested public and private parties. The Di- section of the purchase price of such obliga- lent of the annual rate of basic pay in effect rector of the United States Patent and tions of the United States Patent and Trade- for level III of the Executive Schedule under Trademark Organization shall determine mark Organization shall be treated as public section 5314 of title 5, United States Code, whether such fees are consistent with the debt transactions of the United States. and while away from such member’s home or policy direction of the Secretary of Com- SEC. 118. TRANSFERS. regular place of business such member may merce.’’. (a) TRANSFER OF FUNCTIONS.—Except as re- be allowed travel expenses, including per SEC. 116. SUITS BY AND AGAINST THE ORGANIZA- lates to the direction of patent and trade- diem in lieu of subsistence, as authorized by TION. mark policy, there are transferred to, and section 5703 of title 5, United States Code. (a) ACTIONS UNDER UNITED STATES LAW.— vested in, the United States Patent and ‘‘(g) ACCESS TO INFORMATION.—Members of Any civil action or proceeding to which the Trademark Organization all functions, pow- the Advisory Board shall be provided access United States Patent and Trademark Orga- ers, and duties vested by law in the Sec- to records and information in the United nization is a party is deemed to arise under retary of Commerce or the Department of States Trademark Office, except for person- the laws of the United States. The Federal Commerce or in the officers or components nel or other privileged information. courts shall have exclusive jurisdiction over in the Department of Commerce with respect ‘‘SEC. 55. ANNUAL REPORT TO CONGRESS. all civil actions by or against the Organiza- to the authority to grant patents and reg- ‘‘The Commissioner shall report to the Di- tion. ister trademarks, and in the Patent and rector of the United States Patent and (b) REPRESENTATION BY THE DEPARTMENT Trademark Office, as in effect on the day be- Trademark Organization such information as OF JUSTICE.—The United States Patent and fore the effective date of this title, and in the Director is required to report to Con- Trademark Organization shall be deemed an the officers and components of such office. gress annually under chapter 91 of title 5, in- agency of the United States for purposes of (b) TRANSFER OF FUNDS AND PROPERTY.— cluding— section 516 of title 28, United States Code. The Secretary of Commerce shall transfer to ‘‘(1) the moneys received and expended by (c) PROHIBITION ON ATTACHMENT, LIENS, OR the United States Patent and Trademark Or- the Office; SIMILAR PROCESS.—No attachment, garnish- ganization, on the effective date of this title, ‘‘(2) the purposes for which the moneys ment, lien, or similar process, intermediate so much of the assets, liabilities, contracts, were spent; or final, in law or equity, may be issued property, records, and unexpended and unob- ‘‘(3) the quality and quantity of the work against property of the Organization. ligated balances of appropriations, author- of the Office; and SEC. 117. FUNDING. izations, allocations, and other funds em- ‘‘(4) other information relating to the Of- (a) IN GENERAL.—The activities of the ployed, held, used, arising from, available to, fice. United States Patent and Trademark Orga- or to be made available to the Department of ‘‘SEC. 56. TRADEMARK OFFICE FUNDING. nization and each office of the Organization Commerce, including funds set aside for ac- ‘‘(a) FEES PAYABLE TO THE OFFICE.—All shall be funded entirely through fees payable counts receivable which are related to func- fees for services performed by or materials to the United States Patent Office (under tions, powers, and duties which are vested in furnished by the United States Trademark section 42 of title 35, United States Code) and the United States Patent and Trademark Of- Office shall be payable to the Office. the United States Trademark Office (under fice by this title. ‘‘(b) USE OF MONEYS.—Moneys from fees section 56 of the Act of July 5, 1946 (com- Subtitle B—Effective Date; Technical shall be available to the United States monly known as the Trademark Act of 1946)), Amendments Trademark Office to carry out, to the extent and surcharges appropriated by Congress, to provided in appropriations Acts, the func- the extent provided in appropriations Acts SEC. 131. EFFECTIVE DATE. tions of the Office. Moneys of the Office not and subject to the provisions of subsection This title and the amendments made by otherwise used to carry out the functions of (b). this title shall take effect 4 months after the the Office shall be kept in cash on hand or on (b) BORROWING AUTHORITY.— date of the enactment of this Act. deposit, or invested in obligations of the (1) IN GENERAL.—The United States Patent SEC. 132. TECHNICAL AND CONFORMING AMEND- United States or guaranteed by the United and Trademark Organization is authorized to MENTS. States, or in obligations or other instru- issue from time to time for purchase by the (a) AMENDMENTS TO TITLE 35.— ments which are lawful investments for fidu- Secretary of the Treasury its debentures, (1) TABLE OF PARTS.—The item relating to ciary, trust, or public funds. Fees available bonds, notes, and other evidences of indebt- part I in the table of parts for title 35, United to the Commissioner under this chapter shall edness (hereafter in this subsection referred States Code, is amended to read as follows: be used only for the registration of trade- to as ‘‘obligations’’) to assist in financing ‘‘I. United States Patent Office ...... 1.’’. S2694 CONGRESSIONAL RECORD — SENATE March 20, 1997

(2) HEADING.—The heading for part I of (G) Section 2(d) is amended by striking (GG) Section 36 is amended by striking title 35, United States Code, is amended to ‘‘Patent and Trademark Office’’ and insert- ‘‘Patent and Trademark Office’’ and insert- read as follows: ing ‘‘Trademark Office’’. ing ‘‘Trademark Office’’. ‘‘PART I—UNITED STATES PATENT (H) Section 7(a) is amended by striking (HH) Section 37 is amended by striking OFFICE’’. ‘‘Patent and Trademark Office’’ each place ‘‘Patent and Trademark Office’’ and insert- such term appears and inserting ‘‘Trademark ing ‘‘Trademark Office’’. (3) TABLE OF CHAPTERS.—The table of chap- Office’’. ters for part I of title 35, United States Code, (II) Section 38 is amended by striking (I) Section 7(d) is amended by striking is amended by amending the item relating to ‘‘Patent and Trademark Office’’ and insert- ‘‘Patent and Trademark Office’’ and insert- chapter 1 to read as follows: ing ‘‘Trademark Office’’. ing ‘‘Trademark Office’’. ‘‘1. Establishment, Officers and Em- (JJ) Section 39(b) is amended by striking (J) Section 7(e) is amended by striking ployees, Functions ...... 1’’. ‘‘Patent and Trademark Office’’ and insert- ‘‘Patent and Trademark Office’’ each place ing ‘‘Trademark Office’’. (4) TABLE OF SECTIONS.—The table of sec- such term appears and inserting ‘‘Trademark (KK) Section 41 is amended by striking tions for chapter 1 of title 35, United States Office’’. ‘‘Patent and Trademark Office’’ and insert- Code, is amended to read as follows: (K) Section 7(f) is amended by striking ing ‘‘Trademark Office’’. ‘‘CHAPTER 1—ESTABLISHMENT, OFFICERS ‘‘Patent and Trademark Office’’ each place (LL) Section 61 (as redesignated under sec- AND EMPLOYEES, FUNCTIONS such term appears and inserting ‘‘Trademark tion 115(a)(2) of this Act) is amended in the ‘‘Sec. Office’’. undesignated paragraph relating to the defi- ‘‘1. Establishment. (L) Section 7(g) is amended by striking nition of ‘‘registered mark’’— ‘‘2. Powers and duties. ‘‘Patent and Trademark Office’’ each place (i) by striking ‘‘Patent and Trade Mark Of- ‘‘3. Officers and employees. such term appears and inserting ‘‘Trademark fice’’ and inserting ‘‘Trademark Office; and ‘‘4. Restrictions on officers and employees as Office’’. (ii) by striking ‘‘Patent and Trade Office’’ to interest in patents. (M) Section 8(a) is amended by striking and inserting ‘‘Trademark Office’’. ‘‘5. Patent Office Management Advisory ‘‘Patent and Trademark Office’’ and insert- (MM) Section 72(a) (as redesignated under Board. ing ‘‘Trademark Office’’. section 115(a)(2) of this Act) is amended by ‘‘6. Duties of Commissioner. (N) Section 8(b) is amended by striking striking ‘‘Patent and Trademark Office’’ and ‘‘7. Board of Patent Appeals and Inter- ‘‘Patent and Trademark Office’’ and insert- inserting ‘‘Trademark Office’’. ferences. ing ‘‘Trademark Office’’. (NN) Section 75 (as redesignated under sec- ‘‘8. Library. (O) Section 10 is amended by striking ‘‘Pat- ‘‘9. Classification of patents. tion 115(a)(2) of this Act) is amended by ent and Trademark Office’’ each place such striking ‘‘Patent and Trademark Office’’ and ‘‘10. Certified copies of records. term appears and inserting ‘‘Trademark Of- ‘‘11. Publications. inserting ‘‘Trademark Office’’. fice’’. (c) AMENDMENTS TO TITLE 5.—Section 5316 ‘‘12. Exchange of copies of patents with for- (P) Section 12(a) is amended by striking eign countries. of title 5, United States Code, is amended— ‘‘Patent and Trademark Office’’ and insert- (1) by striking ‘‘Commissioner of Patents, ‘‘13. Copies of patents for public libraries. ing ‘‘Trademark Office’’. ‘‘14. Annual report to Congress.’’. Department of Commerce.’’; and (Q) Section 13(a) is amended by striking (2) by striking: (5) COMMISSIONER OF PATENTS AND TRADE- ‘‘Patent and Trademark Office’’ and insert- ‘‘Deputy Commissioner of Patents and MARKS.—(A) Section 41(h)(1) of title 35, Unit- ing ‘‘Trademark Office’’. Trademarks. ed States Code, is amended by striking (R) Section 13(b)(1) is amended by striking ‘‘Assistant Commissioner for Patents. ‘‘Commissioner of Patents and Trademarks’’ ‘‘Patent and Trademark Office’’ each place ‘‘Assistant Commissioner for Trade- and inserting ‘‘Commissioner’’. such term appears and inserting ‘‘Trademark marks.’’. (B) Section 155 of title 35, United States Office’’. (d) AMENDMENT TO TITLE 31.—Section Code, is amended by striking ‘‘Commissioner (S) Section 15(2) is amended by striking 9101(3) of title 31, United States Code, is of Patents and Trademarks’’ and inserting ‘‘Patent and Trademark Office’’ and insert- amended by adding at the end the following: ‘‘Commissioner’’. ing ‘‘Trademark Office’’. ‘‘(O) the United States Patent and Trade- (C) Section 155A(c) of title 35, United (T) Section 17 is amended by striking ‘‘Pat- mark Organization.’’. States Code, is amended by striking ‘‘Com- ent and Trademark Office’’ and inserting (e) AMENDMENTS TO INSPECTOR GENERAL missioner of Patents’’ and inserting ‘‘Com- ‘‘Trademark Office’’. ACT OF 1978.—Section 11 of the Inspector missioner’’. (U) Section 21(a)(2) is amended by striking General Act of 1978 (5 U.S.C. App.) is amend- (6) PATENT AND TRADEMARK OFFICE.—The ‘‘Patent and Trademark Office’’ and insert- ed— provisions of title 35, United States Code, are ing ‘‘Trademark Office’’. (1) in paragraph (1) by striking ‘‘or the amended by striking ‘‘Patent and Trademark (V) Section 21(a)(3) is amended by striking Commissioner of Social Security, Social Se- Office’’ each place it appears and inserting ‘‘Patent and Trademark Office’’ each place curity Administration;’’ and inserting ‘‘the ‘‘Patent Office’’. such term appears and inserting ‘‘Trademark Commissioner of Social Security, Social Se- (b) AMENDMENTS TO THE TRADEMARK ACT OF Office’’. curity Administration; or the Director of the 1946.— (W) Section 21(a)(4) is amended by striking United States Patent and Trademark Orga- (1) REFERENCES.—All amendments in this ‘‘Patent and Trademark Office’’ each place nization, United States Patent and Trade- subsection refer to the Act of July 5, 1946 such term appears and inserting ‘‘Trademark mark Organization;’’; and (commonly referred to as the Trademark Act Office’’. (2) in paragraph (2) by striking ‘‘or the of 1946). (X) Section 21(b)(3) is amended by striking Veterans’ Administration, or the Social Se- (2) AMENDMENTS RELATING TO COMMIS- ‘‘Patent and Trademark Office’’ each place curity Administration;’’ and inserting ‘‘the SIONER.—Section 61 (as redesignated by sec- such term appears and inserting ‘‘Trademark Veterans’ Administration, the Social Secu- tion 115(a)(2) of this Act) is amended by Office’’. rity Administration, or the United States striking the undesignated paragraph relating (Y) Section 21(b)(4) is amended by striking Patent and Trademark Organization;’’. to the definition of the term ‘‘Commis- ‘‘Patent and Trademark Office’’ and insert- sioner’’ and inserting the following: ing ‘‘Trademark Office’’. Subtitle C—Miscellaneous Provisions ‘‘The term ‘Commissioner’ means the Com- (Z) Section 24 is amended by striking ‘‘Pat- SEC. 141. REFERENCES. missioner of Trademarks.’’. ent and Trademark Office’’ and inserting Any reference in any other Federal law, (3) AMENDMENTS RELATING TO PATENT AND ‘‘Trademark Office’’. Executive order, rule, regulation, or delega- TRADEMARK OFFICE.—(A) Section 1(a)(1) is (AA) Section 29 is amended by striking tion of authority, or any document of or per- amended by striking ‘‘Patent and Trademark ‘‘Patent and Trademark Office’’ each place taining to a department, agency, or office Office’’ and inserting ‘‘Trademark Office’’. such term appears and inserting ‘‘Trademark from which a function is transferred by this (B) Section 1(a)(2) is amended by striking Office’’. title— ‘‘Patent and Trademark Office’’ and insert- (BB) Section 30 is amended by striking (1) to the head of such department, agency, ing ‘‘Trademark Office’’. ‘‘Patent and Trademark Office’’ and insert- or office is deemed to refer to the head of the (C) Section 1(b)(1) is amended by striking ing ‘‘Trademark Office’’. department, agency, or office to which such ‘‘Patent and Trademark Office’’ and insert- (CC) Section 31(a) is amended by striking function is transferred; or ing ‘‘Trademark Office’’. ‘‘Patent and Trademark Office’’ and insert- (2) to such department, agency, or office is (D) Section 1(b)(2) is amended by striking ing ‘‘Trademark Office’’. deemed to refer to the department, agency, ‘‘Patent and Trademark Office’’ and insert- (DD) Section 34(a) is amended by striking or office to which such function is trans- ing ‘‘Trademark Office’’. ‘‘Patent and Trademark Office’’ and insert- ferred. (E) Section 1(d)(1) is amended by striking ing ‘‘Trademark Office’’. SEC. 142. EXERCISE OF AUTHORITIES. ‘‘Patent and Trademark Office’’ each place (EE) Section 34(d)(1)(B)(i) is amended by Except as otherwise provided by law, a such term appears and inserting ‘‘Trademark striking ‘‘Patent and Trademark Office’’ and Federal official to whom a function is trans- Office’’. inserting ‘‘Trademark Office’’. ferred by this title may, for purposes of per- (F) Section 1(e) is amended by striking (FF) Section 35(a) is amended by striking forming the function, exercise all authorities ‘‘Patent and Trademark Office’’ and insert- ‘‘Patent and Trademark Office’’ and insert- under any other provision of law that were ing ‘‘Trademark Office’’. ing ‘‘Trademark Office’’. available with respect to the performance of March 20, 1997 CONGRESSIONAL RECORD — SENATE S2695 that function to the official responsible for connection with a function transferred to an SEC. 202. EARLY PUBLICATION. the performance of the function immediately official or agency by this title shall be avail- Section 122 of title 35, United States Code, before the effective date of the transfer of able to the official or the head of that agen- is amended to read as follows: the function under this title. cy, respectively, at such time or times as the ‘‘§ 122. Confidential status of applications; SEC. 143. SAVINGS PROVISIONS. Director of the Office of Management and publication of patent applications (a) LEGAL DOCUMENTS.—All orders, deter- Budget directs for use in connection with the ‘‘(a) CONFIDENTIALITY.—Except as provided minations, rules, regulations, permits, functions transferred. in subsection (b), applications for patents grants, loans, contracts, agreements, certifi- SEC. 145. DELEGATION AND ASSIGNMENT. shall be kept in confidence by the Patent Of- cates, licenses, and privileges that— (a) IN GENERAL.—Except as otherwise ex- fice and no information concerning the same (1) have been issued, made, granted, or al- pressly prohibited by law or otherwise pro- given without authority of the applicant or lowed to become effective by the President, vided in this title, an official to whom func- owner unless necessary to carry out the pro- the Secretary of Commerce, any officer or tions are transferred under this title (includ- visions of an Act of Congress or in such spe- employee of any office transferred by this ing the head of any office to which functions cial circumstances as may be determined by title, or any other Government official, or by are transferred under this title) may— the Commissioner. a court of competent jurisdiction, in the per- (1) delegate any of the functions so trans- ‘‘(b) PUBLICATION.— formance of any function that is transferred ferred to such officers and employees of the ‘‘(1) IN GENERAL.—(A) Subject to paragraph by this title, and office of the official as the official may des- (2), each application for patent, except appli- (2) are in effect on the effective date of ignate; and cations for design patents filed under chap- such transfer (or become effective after such (2) authorize successive redelegations of ter 16 of this title and provisional applica- date pursuant to their terms as in effect on such functions as may be necessary or appro- tions filed under section 111(b) of this title, such effective date), shall continue in effect priate. shall be published, in accordance with proce- according to their terms until modified, ter- (b) RESPONSIBILITY FOR ADMINISTRATION.— dures determined by the Commissioner, as minated, superseded, set aside, or revoked in No delegation of functions under this section soon as possible after the expiration of a pe- accordance with law by the President, any or under any other provision of this title riod of 18 months from the earliest filing other authorized official, a court of com- shall relieve the official to whom a function date for which a benefit is sought under this petent jurisdiction, or operation of law. is transferred under this title of responsibil- title. At the request of the applicant, an ap- (b) PROCEEDINGS.—This title shall not af- ity for the administration of the function. plication may be published earlier than the fect any proceedings or any application for SEC. 146. AUTHORITY OF DIRECTOR OF THE OF- end of such 18-month period. any benefits, service, license, permit, certifi- FICE OF MANAGEMENT AND BUDGET ‘‘(B) No information concerning published cate, or financial assistance pending on the WITH RESPECT TO FUNCTIONS patent applications shall be made available TRANSFERRED. effective date of this title before an office to the public except as the Commissioner de- transferred by this title, but such proceed- (a) DETERMINATIONS.—If necessary, the Di- rector of the Office of Management and termines. ings and applications shall be continued. Or- ‘‘(C) Notwithstanding any other provision ders shall be issued in such proceedings, ap- Budget shall make any determination of the functions that are transferred under this of law, a determination by the Commissioner peals shall be taken therefrom, and pay- to release or not to release information con- ments shall be made pursuant to such orders, title. (b) INCIDENTAL TRANSFERS.—The Director cerning a published patent application shall as if this title had not been enacted, and or- of the Office of Management and Budget, at be final and nonreviewable. ders issued in any such proceeding shall con- such time or times as the Director shall pro- ‘‘(2) EXCEPTIONS.—(A) An application that tinue in effect until modified, terminated, vide, may make such determinations as may is no longer pending shall not be published. superseded, or revoked by a duly authorized be necessary with regard to the functions ‘‘(B) An application that is subject to a se- official, by a court of competent jurisdiction, transferred by this title, and to make such crecy order pursuant to section 181 of this or by operation of law. Nothing in this sub- additional incidental dispositions of person- title shall not be published. section shall be considered to prohibit the nel, assets, liabilities, grants, contracts, ‘‘(C)(i) Upon the request of the applicant at discontinuance or modification of any such property, records, and unexpended balances the time of filing, the application shall not proceeding under the same terms and condi- of appropriations, authorizations, alloca- be published in accordance with paragraph tions and to the same extent that such pro- tions, and other funds held, used, arising (1) until 3 months after the Commissioner ceeding could have been discontinued or from, available to, or to be made available in makes a notification to the applicant under modified if this title had not been enacted. connection with such functions, as may be section 132 of this title. (c) SUITS.—This title shall not affect suits necessary to carry out the provisions of this ‘‘(ii) Applications filed pursuant to section commenced before the effective date of this title. 363 of this title, applications asserting prior- title, and in all such suits, proceedings shall (c) TERMINATION OF AFFAIRS.—The Director ity under section 119 or 365(a) of this title, be had, appeals taken, and judgments ren- shall provide for the termination of the af- and applications asserting the benefit of an dered in the same manner and with the same fairs of all entities terminated by this title earlier application under section 120, 121, or effect as if this title had not been enacted. and for such further measures and disposi- 365(c) of this title shall not be eligible for a (d) NONABATEMENT OF ACTIONS.—No suit, tions as may be necessary to effectuate the request pursuant to this subparagraph. action, or other proceeding commenced by or purposes of this title. ‘‘(iii) In a request under this subparagraph, against the Department of Commerce or the the applicant shall certify that the invention Secretary of Commerce, or by or against any SEC. 147. CERTAIN VESTING OF FUNCTIONS CON- SIDERED TRANSFERS. disclosed in the application was not and will individual in the official capacity of such in- For purposes of this title, the vesting of a not be the subject of an application filed in dividual as an officer or employee of an of- function in a department, agency, or office a foreign country. fice transferred by this title, shall abate by pursuant to reestablishment of an office ‘‘(iv) The Commissioner may establish ap- reason of the enactment of this title. shall be considered to be the transfer of the propriate procedures and fees for making a (e) CONTINUANCE OF SUITS.—If any Govern- function. request under this subparagraph. ment officer in the official capacity of such RE SSUANCE PPOSITION SEC. 148. AVAILABILITY OF EXISTING FUNDS. ‘‘(c) P -I O .—The provi- officer is party to a suit with respect to a sions of this section shall not operate to cre- function of the officer, and under this title Existing appropriations and funds avail- able for the performance of functions, pro- ate any new opportunity for pre-issuance op- such function is transferred to any other of- position. The Commissioner may establish ficer or office, then such suit shall be contin- grams, and activities terminated pursuant to this title shall remain available, for the du- appropriate procedures to ensure that this ued with the other officer or the head of such section does not create any new opportunity other office, as applicable, substituted or ration of their period of availability, for nec- essary expenses in connection with the ter- for pre-issuance opposition that did not exist added as a party. prior to the adoption of this section.’’. (f) ADMINISTRATIVE PROCEDURE AND JUDI- mination and resolution of such functions, programs, and activities. SEC. 203. TIME FOR CLAIMING BENEFIT OF EAR- CIAL REVIEW.—Except as otherwise provided LIER FILING DATE. SEC. 149. DEFINITIONS. by this title, any statutory requirements re- (a) INA FOREIGN COUNTRY.—Section 119(b) For purposes of this title— lating to notice, hearings, action upon the of title 35, United States Code, is amended to (1) the term ‘‘function’’ includes any duty, record, or administrative or judicial review read as follows: obligation, power, authority, responsibility, that apply to any function transferred by ‘‘(b)(1) No application for patent shall be right, privilege, activity, or program; and this title shall apply to the exercise of such entitled to this right of priority unless a (2) the term ‘‘office’’ includes any office, function by the head of the Federal agency, claim, identifying the foreign application by administration, agency, bureau, institute, and other officers of the agency, to which specifying its application number, country, council, unit, organizational entity, or com- such function is transferred by this title. and the day, month, and year of its filing, is ponent thereof. SEC. 144. TRANSFER OF ASSETS. filed in the Patent Office at such time during Except as otherwise provided in this title, TITLE II—EARLY PUBLICATION OF the pendency of the application as required so much of the personnel, property, records, PATENT APPLICATIONS by the Commissioner. and unexpended balances of appropriations, SEC. 201. SHORT TITLE. ‘‘(2) The Commissioner may consider the allocations, and other funds employed, used, This title may be cited as the ‘‘Patent Ap- failure of the applicant to file a timely claim held, available, or to be made available in plication Publication Act of 1997’’. for priority as a waiver of any such claim, S2696 CONGRESSIONAL RECORD — SENATE March 20, 1997

and may require the payment of a surcharge ‘‘(A) EFFECTIVE DATE.—The right under (i) by inserting ‘‘by the publication of the as a condition of accepting an untimely paragraph (1) to obtain a reasonable royalty application or’’ after ‘‘disclosure of the in- claim during the pendency of the applica- based upon the publication under the treaty vention’’; and tion. of an international application designating (ii) ‘‘the publication of the application or’’ ‘‘(3) The Commissioner may require a cer- the United States shall commence from the after ‘‘withhold’’; and tified copy of the original foreign applica- date that the Patent Office receives a copy of (D) in the fourth undesignated paragraph tion, specification, and drawings upon which the publication under the treaty defined in by inserting ‘‘the publication of an applica- it is based, a translation if not in the English section 351(a) of this title of the inter- tion or’’ after ‘‘and’’ in the first sentence. language, and such other information as the national application, or, if the publication (8) Section 252 is amended in the first un- Commissioner considers necessary. Any such under the treaty of the international appli- designated paragraph by inserting ‘‘substan- certification shall be made by the foreign in- cation is in a language other than English, tially’’ before ‘‘identical’’ each place it ap- tellectual property authority in which the from the date that the Patent Office receives pears. foreign application was filed and show the a translation of the international applica- (9) Section 284 is amended by adding at the date of the application and of the filing of tion in the English language. end of the second undesignated paragraph the specification and other papers.’’. ‘‘(B) COPIES.—The Commissioner may re- the following: ‘‘Increased damages under this (b) IN THE UNITED STATES.—Section 120 of quire the applicant to provide a copy of the paragraph shall not apply to provisional title 35, United States Code, is amended by international application and a translation rights under section 154(d) of this title.’’. adding at the end the following: ‘‘The Com- thereof.’’. (10) Section 374 is amended to read as fol- missioner may determine the time period lows: during the pendency of the application with- SEC. 205. PRIOR ART EFFECT OF PUBLISHED AP- in which an amendment containing the spe- PLICATIONS. ‘‘§ 374. Publication of international applica- cific reference to the earlier filed application Section 102(e) of title 35, United States tion: Effect is submitted. The Commissioner may con- Code, is amended to read as follows: ‘‘The publication under the treaty, defined ‘‘(e) the invention was described in— sider the failure to submit such an amend- in section 351(a) of this title, of an inter- ment within that time period as a waiver of ‘‘(1)(A) an application for patent, published national application designating the United any benefit under this section. The Commis- pursuant to section 122(b) of this title, by an- States shall confer the same rights and shall sioner may establish procedures, including other filed in the United States before the have the same effect under this title as an the payment of a surcharge, to accept un- invention by the applicant for patent, except application for patent published under sec- avoidably late submissions of amendments that an international application filed under tion 122(b), except as provided in sections under this section.’’. the treaty defined in section 351(a) of this 102(e) and 154(d) of this title.’’. title shall have the effect under this sub- SEC. 208. LAST DAY OF PENDENCY OF PROVI- SEC. 204. PROVISIONAL RIGHTS. SIONAL APPLICATION. Section 154 of title 35, United States Code, section of a national application published Section 119(e) of title 35, United States is amended— under section 122(b) of this title only if the international application designating the Code, is amended by adding at the end the (1) in the section caption by inserting ‘‘; United States was published under Article following: provisional rights’’ after ‘‘patent’’; and ‘‘(3) If the day that is 12 months after the (2) by adding at the end the following new 21(2)(a) of such treaty in the English lan- guage, or filing date of a provisional application falls subsection: on a Saturday, Sunday, or legal holiday as ‘‘(d) PROVISIONAL RIGHTS.— ‘‘(B) a patent granted on an application for patent by another filed in the United States defined in rule 6(a) of the Federal Rules of ‘‘(1) IN GENERAL.—In addition to other Civil Procedure, the period of pendency of rights provided by this section, a patent before the invention by the applicant for pat- ent, or’’. the provisional application shall be extended shall include the right to obtain a reasonable to the next succeeding business day.’’. SEC. 206. COST RECOVERY FOR PUBLICATION. royalty from any person who, during the pe- SEC. 209. EFFECTIVE DATE. The Commissioner shall recover the cost of riod beginning on the date of publication of (a) SECTIONS 202 THROUGH 207.—Sections 202 early publication required by the amend- the application for such patent pursuant to through 207, and the amendments made by ment made by section 202 by adjusting the section 122(b) of this title, or in the case of such sections, shall take effect on April 1, an international application filed under the filing, issue, and maintenance fees under 1998, and shall apply to all applications filed treaty defined in section 351(a) of this title title 35, United States Code, by charging a under section 111 of title 35, United States designating the United States under Article separate publication fee, or by any combina- Code, on or after that date, and all applica- 21(2)(a) of such treaty, the date of publica- tion of these methods. tions complying with section 371 of title 35, tion of the application, and ending on the SEC. 207. CONFORMING CHANGES. United States Code, that resulted from inter- date the patent is issued— The following provisions of title 35, United national applications filed on or after that ‘‘(A)(i) makes, uses, offers for sale, or sells States Code, are amended: date. The amendment made by section 204 in the United States the invention as (1) Section 11 is amended in paragraph 1 of shall also apply to international applications claimed in the published patent application subsection (a) by inserting ‘‘and published designating the United States that are filed or imports such an invention into the United applications for patents’’ after ‘‘Patents’’. on or after April 1, 1998. States; or (2) Section 12 is amended— (b) SECTION 208.—The amendments made by ‘‘(ii) if the invention as claimed in the pub- (A) in the section caption by inserting section 208 shall take effect on the date of lished patent application is a process, uses, ‘‘and applications’’ after ‘‘patents’’; and the enactment of this Act and, except for a offers for sale, or sells in the United States (B) by inserting ‘‘and published applica- design patent application filed under chapter or imports into the United States products tions for patents’’ after ‘‘patents’’. 16 of title 35, United States Code, shall apply made by that process as claimed in the pub- (3) Section 13 is amended— to any application filed on or after June 8, lished patent application; and (A) in the section caption by inserting 1995. ‘‘(B) had actual notice of the published pat- ‘‘and applications’’ after ‘‘patents’’; and TITLE III—PATENT TERM RESTORATION ent application, and where the right arising (B) by inserting ‘‘and published applica- SEC. 301. PATENT TERM EXTENSION AUTHORITY. under this paragraph is based upon an inter- tions for patents’’ after ‘‘patents’’. Section 154(b) of title 35, United States national application designating the United (4) The items relating to sections 12 and 13 Code, is amended to read as follows: States that is published in a language other in the table of sections for chapter 1 are each ‘‘(b) TERM EXTENSION.— than English, a translation of the inter- amended by inserting ‘‘and applications’’ ‘‘(1) BASIS FOR PATENT TERM EXTENSION.— national application into the English lan- after ‘‘patents’’. ‘‘(A) DELAY.—Subject to the limitations guage. (5) The item relating to section 122 in the under paragraph (2), if the issue of an origi- ‘‘(2) RIGHT BASED ON SUBSTANTIALLY IDEN- table of sections for chapter 11 is amended by nal patent is delayed due to— TICAL INVENTIONS.—The right under para- inserting ‘‘; publication of patent applica- ‘‘(i) a proceeding under section 135(a) of graph (1) to obtain a reasonable royalty shall tions’’ after ‘‘applications’’. this title; not be available under this subsection unless (6) The item relating to section 154 in the ‘‘(ii) the imposition of an order pursuant to the invention as claimed in the patent is table of sections for chapter 14 is amended by section 181 of this title; substantially identical to the invention as inserting ‘‘; provisional rights’’ after ‘‘pat- ‘‘(iii) appellate review by the Board of Pat- claimed in the published patent application. ent’’. ent Appeals and Interferences or by a Fed- ‘‘(3) TIME LIMITATION ON OBTAINING A REA- (7) Section 181 is amended— eral court where the patent was issued pur- SONABLE ROYALTY.—The right under para- (A) in the first undesignated paragraph— suant to a decision in the review reversing graph (1) to obtain a reasonable royalty shall (i) by inserting ‘‘by the publication of an an adverse determination of patentability; or be available only in an action brought not application or’’ after ‘‘disclosure’’; and ‘‘(iv) an unusual administrative delay by later than 6 years after the patent is issued. (ii) ‘‘the publication of the application or’’ the Patent Office in issuing the patent, The right under paragraph (1) to obtain a after ‘‘withhold’’; the term of the patent shall be extended for reasonable royalty shall not be affected by (B) in the second undesignated paragraph the period of delay. the duration of the period described in para- by inserting ‘‘by the publication of an appli- ‘‘(B) ADMINISTRATIVE DELAY.—For purposes graph (1). cation or’’ after ‘‘disclosure of an inven- of subparagraph (A)(iv), an unusual adminis- ‘‘(4) REQUIREMENTS FOR INTERNATIONAL AP- tion’’; trative delay by the Patent Office is the fail- PLICATIONS.— (C) in the third undesignated paragraph— ure to— March 20, 1997 CONGRESSIONAL RECORD — SENATE S2697

‘‘(i) make a notification of the rejection of ‘‘(2) the terms ‘used in commerce’, and ‘use ‘‘(6) PERSONAL DEFENSE.—The defense any claim for a patent or any objection or in commerce’ mean that there has been an under this section may only be asserted by argument under section 132 of this title or actual sale or other commercial transfer of the person who performed the acts necessary give or mail a written notice of allowance the subject matter at issue or that there has to establish the defense and, except for any under section 151 of this title not later than been an actual sale or other commercial transfer to the patent owner, the right to as- 14 months after the date on which the appli- transfer of a product or service resulting sert the defense shall not be licensed or as- cation was filed; from the use of the subject matter at issue; signed or transferred to another person ex- ‘‘(ii) respond to a reply under section 132 of and cept in connection with the good faith as- this title or to an appeal taken under section ‘‘(3) the ‘effective filing date’ of a patent is signment or transfer of the entire enterprise 134 of this title not later than 4 months after the earlier of the actual filing date of the ap- or line of business to which the defense re- the date on which the reply was filed or the plication for the patent or the filing date of lates. appeal was taken; any earlier United States, foreign, or inter- ‘‘(7) ONE-YEAR LIMITATION.—A person may ‘‘(iii) act on an application not later than national application to which the subject not assert a defense under this section unless 4 months after the date of a decision by the matter at issue is entitled under section 119, the subject matter on which the defense is Board of Patent Appeals and Interferences 120, or 365 of this title. based had been commercially used or re- under section 134 or 135 of this title or a deci- ‘‘(b) DEFENSE TO INFRINGEMENT.— duced to practice more than one year prior sion by a Federal court under section 141, ‘‘(1) IN GENERAL.—A person shall not be lia- to the effective filing date of the patent by 145, or 146 of this title where allowable ble as an infringer under section 271 of this the person asserting the defense or someone claims remain in an application; or title with respect to any subject matter that in privity with that person. ‘‘(iv) issue a patent not later than 4 would otherwise infringe one or more claims ‘‘(d) UNSUCCESSFUL ASSERTION OF DE- months after the date on which the issue fee in the patent being asserted against such FENSE.—If the defense under this section is was paid under section 151 of this title and person, if such person had, acting in good pleaded by a person who is found to infringe all outstanding requirements were satisfied. faith, commercially used the subject matter the patent and who subsequently fails to ‘‘(2) LIMITATIONS.— before the effective filing date of such pat- demonstrate a reasonable basis for asserting ‘‘(A) IN GENERAL.—The total duration of ent. the defense, the court shall find the case ex- any extensions granted pursuant to either ‘‘(2) EXHAUSTION OF RIGHT.—The sale or ceptional for the purpose of awarding attor- subclause (iii) or (iv) of paragraph (1)(A) or other disposition of the subject matter of a ney’s fees under section 285 of this title. both such subclauses shall not exceed 10 patent by a person entitled to assert a de- ‘‘(e) INVALIDITY.—A patent shall not be years. To the extent that periods of delay at- fense under this section with respect to that deemed to be invalid under section 102 or 103 tributable to grounds specified in paragraph subject matter shall exhaust the patent own- of this title solely because a defense is estab- (1) overlap, the period of any extension er’s rights under the patent to the extent lished under this section.’’. granted under this subsection shall not ex- such rights would have been exhausted had (b) CONFORMING AMENDMENT.—The table of ceed the actual number of days the issuance such sale or other disposition been made by sections at the beginning of chapter 28 of of the patent was delayed. the patent owner. title 35, United States Code, is amended by adding at the end the following new item: ‘‘(B) REDUCTION OF EXTENSION.—The period ‘‘(c) LIMITATIONS AND QUALIFICATIONS OF of extension of the term of a patent under DEFENSE.—The defense to infringement ‘‘Sec. 273. Prior domestic commercial use; this subsection shall be reduced by a period under this section is subject to the following: defense to infringement.’’. equal to the time in which the applicant ‘‘(1) DERIVATION.—A person may not assert SEC. 403. EFFECTIVE DATE AND APPLICABILITY. failed to engage in reasonable efforts to con- the defense under this section if the subject This title and the amendments made by clude prosecution of the application. The matter on which the defense is based was de- this title shall take effect on the date of the Commissioner shall prescribe regulations es- rived from the patentee or persons in privity enactment of this Act, but shall not apply to tablishing the circumstances that constitute with the patentee. any action for infringement that is pending a failure of an applicant to engage in reason- ‘‘(2) NOT A GENERAL LICENSE.—The defense on such date of enactment or with respect to able efforts to conclude processing or exam- asserted by a person under this section is not any subject matter for which an adjudication ination of an application. a general license under all claims of the pat- of infringement, including a consent judg- ‘‘(C) DISCLAIMED TERM.—No patent the ent at issue, but extends only to the subject ment, has been made before such date of en- term of which has been disclaimed beyond a matter claimed in the patent with respect to actment. specified date may be extended under this which the person can assert a defense under TITLE V—PATENT REEXAMINATION section beyond the expiration date specified this chapter, except that the defense shall REFORM in the disclaimer. also extend to variations in the quantity or SEC. 501. SHORT TITLE. ‘‘(3) PROCEDURES.—The Commissioner shall volume of use of the claimed subject matter, prescribe regulations establishing procedures This title may be cited as the ‘‘Patent Re- and to improvements in the claimed subject examination Reform Act of 1997’’. for the notification of patent term exten- matter that do not infringe additional spe- SEC. 502. DEFINITIONS. sions under this subsection and procedures cifically claimed subject matter of the pat- Section 100 of title 35, United States Code, for contesting patent term extensions under ent. is amended by adding at the end the follow- this subsection.’’. ‘‘(3) EFFECTIVE AND SERIOUS PREPARA- ing new subsection: SEC. 302. EFFECTIVE DATE. TION.—With respect to subject matter that ‘‘(e) The term ‘third-party requester’ The amendments made by section 301 shall cannot be commercialized without a signifi- means a person requesting reexamination take effect on the date of the enactment of cant investment of time, money, and effort, under section 302 of this title who is not the this Act and, except for a design patent ap- a person shall be deemed to have commer- patent owner.’’. plication filed under chapter 16 of title 35, cially used the subject matter if— United States Code, shall apply to any appli- ‘‘(A) before the effective filing date of the SEC. 503. REEXAMINATION PROCEDURES. cation filed on or after June 8, 1995. patent, the person reduced the subject mat- (a) REQUEST FOR REEXAMINATION.—Section ter to practice in the United States, com- 302 of title 35, United States Code, is amend- TITLE IV—PRIOR DOMESTIC ed to read as follows: COMMERCIAL USE pleted a significant portion of the total in- vestment necessary to commercially use the ‘‘§ 302. Request for reexamination SEC. 401. SHORT TITLE. subject matter, and made a commercial ‘‘(a) IN GENERAL.—Any person at any time This title may be cited as the ‘‘Prior Do- transaction in the United States in connec- may file a request for reexamination by the mestic Commercial Use Act of 1997’’. tion with the preparation to use the subject Office of a patent on the basis of any prior SEC. 402. DEFENSE TO PATENT INFRINGEMENT matter; and art cited under the provisions of section 301 BASED ON PRIOR DOMESTIC COM- ‘‘(B) thereafter the person diligently com- of this title or on the basis of the require- MERCIAL USE. pleted the remainder of the activities and in- ments of section 112 of this title except for (a) DEFENSE.—Chapter 28 of title 35, United vestments necessary to commercially use the requirement to set forth the best mode of States Code, is amended by adding at the end the subject matter, and promptly began com- carrying out the invention. the following new section: mercial use of the subject matter, even if ‘‘(b) REQUIREMENTS.—The request shall— ‘‘§ 273. Prior domestic commercial use; de- such activities were conducted after the ef- ‘‘(1) be in writing, include the identity of fense to infringement fective filing date of the patent. the real party in interest, and be accom- ‘‘(a) DEFINITIONS.—For purposes of this sec- ‘‘(4) BURDEN OF PROOF.—A person asserting panied by payment of a reexamination fee tion— the defense under this section shall have the established by the Commissioner of Patents ‘‘(1) the terms ‘commercially used’, ‘com- burden of establishing the defense. pursuant to the provisions of section 41 of mercially use’, and ‘commercial use’ mean ‘‘(5) ABANDONMENT OF USE.—A person who this title; and the use in the United States in commerce or has abandoned commercial use of subject ‘‘(2) set forth the pertinency and manner of the use in the design, testing, or production matter may not rely on activities performed applying cited prior art to every claim for in the United States of a product or service before the date of such abandonment in es- which reexamination is requested or the which is used in commerce, whether or not tablishing a defense under subsection (b) manner in which the patent specification or the subject matter at issue is accessible to or with respect to actions taken after the date claims fail to comply with the requirements otherwise known to the public; of such abandonment. of section 112 of this title. S2698 CONGRESSIONAL RECORD — SENATE March 20, 1997

‘‘(c) COPY.—Unless the requesting person is ered by the Patent Office action or the pat- title 35, United States Code, is amended by the owner of the patent, the Commissioner ent owner’s response. adding at the end the following: promptly shall send a copy of the request to ‘‘(c) SPECIAL DISPATCH.—Unless otherwise ‘‘308. Reexamination prohibited.’’. the owner of record of the patent.’’. provided by the Commissioner for good SEC. 504. CONFORMING AMENDMENTS. (b) DETERMINATION OF ISSUE BY COMMIS- cause, all reexamination proceedings under (a) PATENT FEES; PATENT SEARCH SYS- this section, including any appeal to the SIONER.—Section 303 of title 35, United TEMS.—Section 41(a)(7) of title 35, United States Code, is amended to read as follows: Board of Patent Appeals and Interferences, States Code, is amended to read as follows: shall be conducted with special dispatch ‘‘§ 303. Determination of issue by Commis- ‘‘(7) On filing each petition for the revival within the Office.’’. sioner of an unintentionally abandoned application (e) APPEAL.—Section 306 of title 35, United ‘‘(a) REEXAMINATION.—Not later than 3 States Code, is amended to read as follows: for a patent, for the unintentionally delayed payment of the fee for issuing each patent, months after the filing of a request for reex- ‘‘§ 306. Appeal amination under the provisions of section 302 or for an unintentionally delayed response ‘‘(a) PATENT OWNER.—The patent owner in- of this title, the Commissioner shall deter- by the patent owner in a reexamination pro- volved in a reexamination proceeding under ceeding, $1,250, unless the petition is filed mine whether a substantial new question of this chapter— patentability affecting any claim of the pat- under sections 133 or 151 of this title, in ‘‘(1) may appeal under the provisions of which case the fee shall be $110.’’. ent concerned is raised by the request, with section 134 of this title, and may appeal or without consideration of other patents or (b) APPEAL TO THE BOARD OF PATENT AP- under the provisions of sections 141 through PEALS AND INTERFERENCES.—Section 134 of printed publications. On the Commissioner’s 144 of this title, with respect to any decision initiative, and any time, the Commissioner title 35, United States Code, is amended to adverse to the patentability of any original read as follows: may determine whether a substantial new or proposed amended or new claim of the question of patentability is raised by patents patent, and ‘‘§ 134. Appeal to the Board of Patent Appeals and publications or by the failure of the pat- ‘‘(2) may be a party to any appeal taken by and Interferences ent specification or claims to comply with a third-party requester pursuant to sub- ‘‘(a) PATENT APPLICANT.—An applicant for the requirements of section 112 of this title section (b) of this section. a patent, any of whose claims has been twice except for the best mode requirement de- ‘‘(b) THIRD-PARTY REQUESTER.—A third- rejected, may appeal from the decision of the scribed in section 302. party requester may— primary examiner to the Board of Patent Ap- ‘‘(b) RECORD.—A record of the Commis- ‘‘(1) appeal under the provisions of section peals and Interferences, having once paid the sioner’s determination under subsection (a) 134 of this title, and may appeal under the fee for such appeal. shall be placed in the official file of the pat- provisions of sections 141 through 144 of this ‘‘(b) PATENT OWNER.—A patent owner in a ent, and a copy shall be promptly given or title, with respect to any final decision fa- reexamination proceeding may appeal from mailed to the owner of record of the patent vorable to the patentability of any original the final rejection of any claim by the pri- and to the third-party requester, if any. or proposed amended or new claim of the mary examiner to the Board of Patent Ap- ‘‘(c) FINAL DECISION.—A determination by patent; or peals and Interferences, having once paid the the Commissioner pursuant to subsection (a) ‘‘(2) be a party to any appeal taken by the fee for such appeal. shall be final and nonappealable. Upon a de- patent owner, subject to subsection (c) of ‘‘(c) THIRD-PARTY.—A third-party re- termination that no substantial new ques- this section. quester may appeal to the Board of Patent tion of patentability has been raised, the ‘‘(c) PARTICIPATION AS PARTY.— Appeals and Interferences from the final de- Commissioner may refund a portion of the ‘‘(1) IN GENERAL.—A third-party requester cision of the primary examiner favorable to reexamination fee required under section 302 who, under the provisions of sections 141 the patentability of any original or proposed of this title.’’. through 144 of this title, files a notice of ap- amended or new claim of a patent, having (c) REEXAMINATION ORDER BY COMMIS- peal or who participates as a party to an ap- once paid the fee for such appeal.’’. SIONER.—Section 304 of title 35, United peal by the patent owner is estopped from as- (d) APPEAL TO COURT OF APPEALS FOR THE States Code, is amended to read as follows: serting at a later time, in any forum, the in- FEDERAL CIRCUIT.—Section 141 of title 35, ‘‘§ 304. Reexamination order by Commissioner validity of any claim determined to be pat- United States Code, is amended by amending ‘‘If, in a determination made under the entable on appeal on any ground which the the first sentence to read as follows: ‘‘An ap- provisions of section 303(a) of this title, the third-party requester raised or could have plicant, a patent owner, or a third-party re- Commissioner finds that a substantial new raised during the reexamination proceedings. quester, dissatisfied with the final decision question of patentability affecting a claim of ‘‘(2) ELECTION TO PARTICIPATE.—A third- in an appeal to the Board of Patent Appeals a patent is raised, the determination shall party requester is deemed not to have par- and Interferences under section 134 of this include an order for reexamination of the ticipated as a party to an appeal by the pat- title, may appeal the decision to the United patent for resolution of the question. The ent owner unless, not later than 20 days after States Court of Appeals for the Federal Cir- order may be accompanied by the initial ac- the patent owner has filed notice of appeal, cuit.’’. tion of the Patent Office on the merits of the the third-party requester files notice with (e) PROCEEDINGS ON APPEAL.—Section 143 of reexamination conducted in accordance with the Commissioner electing to participate.’’. title 35, United States Code, is amended by section 305 of this title.’’. (f) REEXAMINATION PROHIBITED.— amending the third sentence to read as fol- (d) CONDUCT OF REEXAMINATION PROCEED- (1) IN GENERAL.—Chapter 30 of title 35, lows: ‘‘In ex parte and reexamination cases, INGS.—Section 305 of title 35, United States United States Code, is amended by adding at the Commissioner shall submit to the court Code, is amended to read as follows: the end the following new section: in writing the grounds for the decision of the Patent Office, addressing all the issues in- ‘‘§ 305. Conduct of reexamination proceedings ‘‘§ 308. Reexamination prohibited ‘‘(a) ORDER FOR REEXAMINATION.—Notwith- volved in the appeal.’’. ‘‘(a) IN GENERAL.—Subject to subsection standing any provision of this chapter, once (f) CIVIL ACTION TO OBTAIN PATENT.—Sec- (b), reexamination shall be conducted ac- an order for reexamination of a patent has tion 145 of title 35, United States Code, is cording to the procedures established for ini- been issued under section 304 of this title, amended in the first sentence by inserting tial examination under the provisions of sec- neither the patent owner nor the third-party ‘‘(a)’’ after ‘‘section 134’’. tions 132 and 133 of this title. In any reexam- requester, if any, nor privies of either, may SEC. 505. EFFECTIVE DATE. ination proceeding under this chapter, the file a subsequent request for reexamination This title and the amendments made by patent owner shall be permitted to propose of the patent until a reexamination certifi- this title shall take effect on the date that is any amendment to the patent and a new cate is issued and published under section 307 6 months after the date of the enactment of claim or claims, except that no proposed of this title, unless authorized by the Com- this Act and shall apply to all reexamination amended or new claim enlarging the scope of missioner. requests filed on or after such date. the claims of the patent shall be permitted. ‘‘(b) FINAL DECISION.—Once a final decision TITLE VI—MISCELLANEOUS PATENT ‘‘(b) RESPONSE.—(1) This subsection shall has been entered against a party in a civil PROVISIONS apply to any reexamination proceeding in action arising in whole or in part under sec- which the order for reexamination is based tion 1338 of title 28 that the party has not SEC. 601. PROVISIONAL APPLICATIONS. upon a request by a third-party requester. sustained its burden of proving the invalid- (a) ABANDONMENT.—Section 111(b)(5) of ‘‘(2) With the exception of the reexamina- ity of any patent claim in suit, then neither title 35, United States Code, is amended to tion request, any document filed by either that party nor its privies may thereafter re- read as follows: the patent owner or the third-party re- quest reexamination of any such patent ‘‘(5) ABANDONMENT.—Notwithstanding the quester shall be served on the other party. claim on the basis of issues which that party absence of a claim, upon timely request and ‘‘(3) If the patent owner files a response to or its privies raised or could have raised in as prescribed by the Commissioner, a provi- any Patent Office action on the merits, the such civil action, and a reexamination re- sional application may be treated as an ap- third-party requester shall have 1 oppor- quested by that party or its privies on the plication filed under subsection (a). If no tunity to file written comments within a basis of such issues may not thereafter be such request is made, the provisional appli- reasonable period not less than 1 month after maintained by the Office, notwithstanding cation shall be regarded as abandoned 12 the date of service of the patent owner’s re- any other provision of this chapter.’’. months after the filing date of such applica- sponse. Written comments provided under (2) TECHNICAL AND CONFORMING AMEND- tion and shall not be subject to revival this paragraph shall be limited to issues cov- MENT.—The table of sections for chapter 30 of thereafter.’’. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2699

(b) EFFECTIVE DATE.—The amendments Office. Each office is responsible for the ad- Electronic Filing made by subsection (a) apply to a provisional ministration of its own system. Each office Lastly, this title also allows for the filing application filed on or after June 8, 1995. controls its own budget and its management of patent and trademark documents by elec- structure and procedures. Each office must SEC. 602. INTERNATIONAL APPLICATIONS. tronic medium. Section 119 of title 35, United States Code, generate its own revenue in order to be self- is amended as follows: sustaining and to provide for the Office of (1) In subsection (a), insert ‘‘or in a WTO the Director. The Patent Office and the By Mrs. FEINSTEIN: member country’’ after ‘‘or to citizens of the Trademark Office are headed by the Commis- S. 508. A bill to provide Mai Hoa United States,’’. sioner of Patents and the Commissioner of ‘‘Jasmin’’ Salehi permanent residency; (2) At the end of section 119 add the follow- Trademarks, respectively. The two Commis- to the Committee on the Judiciary. ing new subsections: sioners are appointed by the Director and ‘‘(f) Applications for plant breeder’s rights serve at his or her pleasure. PRIVATE RELIEF LEGISLATION filed in a WTO member country (or in a for- TITLE II—EARLY PUBLICATION Mrs. FEINSTEIN. Mr. President, this eign UPOV Contracting Party) shall have Title II of the bill provides for the early bill grants permanent residency status the same effect for the purpose of the right publication of patent applications. It would to Jasmin Salehi, a California con- of priority under subsections (a) through (c) require the Patent Office to publish pending of this section as applications for patents, stituent who is currently assisting the applications eighteen months after the appli- subject to the same conditions and require- LA district attorney with the prosecu- cation was filed. An exception of this rule is ments of this section as apply to applica- tion of her husband’s murderer. made for applications filed only in the Unit- tions for patents. ed States. Those applications will be pub- Mai Hoa Jasmin Salehi is a Korean ‘‘(g) As used in this section— lished eighteen months after filing or three immigrant who was denied permanent ‘‘(1) the term ‘WTO member country’ has months after the office issues its first re- residency after her husband was vio- the same meaning as the term is defined in sponse on the application, whichever is later. section 104(b)(2) of this title; and lently murdered at a Denny’s in Additionally, once an application is pub- ‘‘(2) the term ‘UPOV Contracting Party’ Reseda, CA, where he worked as man- lished, Title II grants the applicant ‘‘provi- means a member of the International Con- ager. Local INS officials in Los Angeles sional rights,’’ that is, legal protection for vention for the Protection of New Varieties denied Jasmin’s application because his or her invention. of Plants.’’. the law requires legal immigrants be SEC. 603. PLANT PATENTS. TITLE III—PATENT TERM RESTORATION married for 2 years before they become (a) TUBER PROPAGATED PLANTS.—Section Title III deals with the problem of adminis- eligible for permanent resident status. 161 of title 35, United States Code, is amend- trative delay in the patent examination Jasmin and Cyrus Salehi were newly- process by restoring to the patent holder any ed by striking ‘‘a tuber propagated plant or’’. weds who had been married only 11 (b) RIGHTS IN PLANT PATENTS.—The text of part of the term that is lost due to undue ad- section 163 of title 35, United States Code, is ministrative delay. Title III gives clear dead- months before the murder. amended to read as follows: ‘‘In the case of a lines in which the Patent Office must act. I have previously sought administra- plant patent, the grant to the patentee, such The office has fourteen months to issue a tive relief for Jasmin by asking the patentee’s heirs or assigns, shall have the first office action and four months to re- INS if any humanitarian exemptions right to exclude others from asexually repro- spond to subsequent applicant filings. Any could be made in Jasmin’s case, but the ducing the plant, and from using, offering for delay beyond those deadlines is considered local INS officials in Los Angeles has sale, or selling the plant so reproduced, or undue delay and will be restored to the pat- any of its parts, throughout the United ent term. told my staff that there is nothing they can do. States, or from importing the plant so repro- TITLE IV—PRIOR DOMESTIC COMMERCIAL USE duced, or any parts thereof, into the United This title provides rights to a person who Jasmin met and married Cyrus States.’’. has commercially sold an invention more Salehi, an American citizen, in March (c) EFFECTIVE DATE.—The amendments by than one year before the effective filing date 1995 and has completed all the paper- subsection (a) shall apply on the date of en- of a patent application by another person. work necessary to obtain her green actment of this Act. The amendments made Anyone in this situation will be permitted to by subsection (b) shall apply to any plant card. But now, Jasmin has been told continue to sell his or her product without patent issued on or after the date of enact- that she can stay in the United States being forced to pay a royalty to the patent ment of this Act. as long as the district attorney needs holder. SEC. 604. ELECTRONIC FILING. her to prosecute her husband’s mur- Section 22 of title 35, United States Code, TITLE V—PATENT RE-EXAMINATION REFORM derer. Despite here assistance in the is amended by striking ‘‘printed or type- Title V provides for a greater role for third prosecution, Jasmin would be deported written’’ and inserting ‘‘printed, type- parties in patent re-examination proceedings once the investigation and subsequent written, or on an electronic medium’’ . by allowing third-parties to raise a challenge trial are completed. to an existing patent and to participate in OMNIBUS PATENT ACT OF 1997—SUMMARY the reexamination process in a meaningful Jasmin has done everything right in TITLE I—THE UNITED STATES PATENT AND way. order to become a permanent resident TRADEMARK ORGANIZATION TITLE VI—MISCELLANEOUS of this country—except for the tragedy This title establishes the United States Provisional Applications for Patents of her husband’s murder 13 months be- Patent and Trademark Organization This title amends section 115 of Title 35 of fore she could become a permanent (USPTO) as a wholly owned government cor- the U.S. Code to clarify that if a provisional resident. I hope you support this bill so poration connected for policy-making pur- application is converted into a non-provi- that we can help Jasmin begin to re- poses to the Department of Commerce. Like sional application within twelve months of build her life in the United States. the existing U.S. Patent and Trademark Of- filing, that it stands as a full patent applica- Mr. President, I ask for unanimous fice, the USPTO is charged with patent and tion, with the date of filing of the provi- trademark policy formulation and the ad- consent that the attached news article sional application as the date of priority. If and the bill be entered into the ministration of the patent and trademark no request is made within twelve months, systems. But unlike the present structure, the provisional application is considered RECORD. the USPTO will be freed from a heavy-hand- abandoned. This clarification will make cer- There being no objection, the mate- ed federal bureaucracy, which inhibits the tain that American provisional applications rial was ordered to be printed in the ability of the Patent and Trademark Office are given the same weight as other coun- RECORD, as follows: to meet the demands of those who fully sus- tries’ provisional applications in other coun- tain its operation through user fees. Height- tries’ courts. S. 508 ened efficiency is also achieved by separat- Be it enacted by the Senate and House of Rep- ing the policymaking functions from the Plant Patents resentatives of the United States of America in day-to-day operating functions. Title VI also makes two corrections to the Congress assembled, The USPTO is headed by a Director of the plant patent statute. First, the ban on tuber U.S. Patent and Trademark Office, who is propagated plants is removed. This depres- I. Permanent Residence: charged with advising the President through sion-era ban was included for fear of limiting Notwithstanding any other provision of the Secretary of Commerce regarding patent the food supply. This is no longer a concern. law, for purposes of the Immigration and Na- and trademark policy. He or she is appointed Second, the plant patent statute is amended tionality Act (8 U.S.C. 1101 et seq.), Mai Hoa by the President with Senate confirmation, to include parts of plants. This closes a loop- ‘‘Jasmin’’ Salehi, shall be held and consid- and he or she serves at the pleasure of the hole that foreign growers have used to im- ered to have been lawfully admitted to the President. port the fruit or flowers of patented plants United States for permanent residence as of The USPTO has two autonomous subdivi- without paying a royalty because the entire the date of the enactment of this Act upon sions: the Patent Office and the Trademark plant was not being sold. payment of the required visa fees. S2700 CONGRESSIONAL RECORD — SENATE March 20, 1997 [From the Los Angeles Daily News] country, a place where stigmas are attached State has the courage and willingness WIDOW’S TROUBLES MULTIPLY to orphans and widows, of which she is both. to do without a quick Federal buck, (By Jeannette DeSantis) Born Mai Hoa Joo in Seoul, Korea, in 1964, then it’s only right that the American Salehi’s parents died within months of each Things have gotten worse instead of better other when she was 14. A college graduate, people, as a whole, should benefit from for Jasmin Salehi. Salehi visited the United States several that action. Alone in a new apartment, half of her be- times before she immigrated. Whatever the States send back may longings still packed in moving boxes, During a 1993 visit, Salehi met her husband seem like small potatoes to some peo- Salehi, 32, surveys her new residence and at a Denny’s restaurant in Los Angeles. They ple, but as the late Senator Everett wonders how it came to this. continued their relationship even as Salehi When the Korean widow first came to the Dirksen once said, ‘‘A billion here, and returned to Korea. United States more than a year ago, her life a billion there, and pretty soon you’re Once married, Salehi received a work per- was filled with promise. A loving husband talking about real money.’’ mit after she applied for a green card and with a steady income, friends and a com- began working at a clothing manufacturer in We face the very real danger of being fortable home in Sherman Oaks were more downtown Los Angeles, where she still puts crushed by our national deficit. Some that she could ask for. in 10-hour days on a regular basis. of our mindless spending in the past Then life handed her more. But her salary as a production manager years has left us with a debt of 5.34 tril- Her husband of 11 months, Cyrus Salehi, was not enough to cover the mortgage pay- was slain earlier this year. Soon after, the lion dollars— ‘‘trillion’’ with a capital ment on the small house the couple owned, Immigration and Naturalization Service no- ‘‘T.’’ And it’s only going to get worse if even though she has inherited part owner- tified Salehi she would be deported because we don’t do something to help out. ship of the Denny’s restaurant where her she had not been married to a U.S. citizen This bill makes good common sense. husband was killed. long enough to get her green card. ‘‘She has run into a lot of roadblocks, but We all must work together in order to And recently, she was evicted from the she is a survivor,’’ said Francine Myers. pay off the huge national deficit and only home she has known since arriving in ‘‘She will do all right as long as she feels like this is one step in the right direction. the United States. ‘‘All these things happened at one time,’’ she has the support behind her.’’ I urge my colleagues to support this Salehi said. ‘‘It is really hard for me, and I legislation. get depresses . . . especially during the holi- By Mr. BURNS: days.’’ S. 509 A bill to provide for the return By Mr. MOYNIHAN: In the midst of her first holiday season as of certain program and activity fund S. 510. A bill to authorize the Archi- a widow, Salehi can only dream of her hus- rejected by States to the Treasury to tect of the Capitol to develop and im- band, Cyrus Salehi, killed in February after reduce the Federal deficit, and for plement a plan to improve the Capitol two robbers shot him during a holdup at the other purposes; to the Committee on grounds through the elimination and Reseda Denny’s restaurant he owned. the Budget and the Committee on Gov- modification of space allocated for ‘‘There are lots of memories of my husband ernmental Affairs, jointly, pursuant to .. . and our Christmases together,’’ she said. parking; to the Committee on Rules ‘‘Now, every Christmas will be a Christmas the order of August 4, 1977, as modified and Administration. without him.’’ by the order of April 11, 1986, with in- THE ARC OF PARK CAPITOL GROUNDS But it won’t be a holiday season without structions that if one Committee re- IMPROVEMENT ACT OF 1997 friends. ports, the other Committee have thirty Mr. MOYNIHAN. Mr. President, near- Francine and Ralph Myers, who informally days to report or be discharged. ly 100 years ago, in March of 1901, the adopted Salehi since Cyrus’s death, met her THE FAIR AND RESPONSIBLE FUND USE ACT Senate Committee on the District of through a victim support group. The Myers, whose son was slain, know well how those Mr. BURNS. Mr. President, I rise to Columbia was directed by Senate Reso- first holiday seasons can affect a victim of introduce the Fair and Responsible lution to ‘‘report to the Senate plans crime. Fund Use Act. It is a bill that will pro- for the development and improvement ‘‘It can be a real tough time,’’ Francine vide for the return of funds, rejected by of the entire park system of the Dis- Myers said. ‘‘It is different for everyone. a State, to the Treasury. These funds trict of Columbia * * * (F)or the pur- Jasmin doesn’t want to decorate. I remember will then be used specifically to reduce pose of preparing such plans the com- (after my son died) I would try to change the Federal deficit. mittee * * * may secure the services of every tradition we had and make new ones.’’ Myers said Salehi is a survivor, who stood Sometimes the Federal Government such experts as may be necessary for a up to the INS and was allowed to stay in the makes available to Montana, and other proper consideration of the subject.’’ country until her husband’s accused killer States, funds which are inconsistent And secure ‘‘such experts’’ the com- stands trial. Meanwhile, she has not let her with State priorities. Usually this mittee assuredly did. The Committee own grief stop her from helping others. money comes with strings attached. In formed what came to be known as the ‘‘Although she needs help, she unselfishly other words, the Federal Government McMillan Commission, named for com- helps others,’’ Myers said, adding that Salehi wants us to take X action to get Y dol- mittee chairman Senator James Mc- has accompanied her to the trial of the per- lars. Sometimes, out of fiscal conserv- Millan of Michigan. The Commission’s son accused of murdering her own son. ‘‘That says something about her.’’ atism, or philosophical differences, membership was a ‘‘who’s who’’ of late Salehi contends that she is only returning States will return that money to the 19th and 20th-century architecture, the support the Myers have given her. ‘‘She Treasury. But what has been the re- landscape design, and art: Daniel is a victim too, and all that time she is there ward for an individual State’s refusal Burnham, Frederick Law Olmsted Jr., for me,’’ Salehi said. to grab the Federal carrot that has Charles F. McKim, and Augustus St. Shellie Samuels, the deputy district attor- been dangled in front of it? That Gaudens. The Commission traveled ney handling the Cyrus Salehi murder case, money is returned to the program for that summer to Rome, Venice, Vienna, said that although all victims of crime are traumatized by a loved one’s death, Salehi’s use by other States. Budapest, Paris, and London, studying ordeal has been especially nightmarish. That’s just not right. California or the landscapes, architecture, and pub- ‘‘Besides the emotional trauma she has New York should not be the bene- lic spaces of the grandest cities in the gone through, the U.S. has not done right by ficiaries of Montana’s restraint and world. The McMillan Commission re- her,’’ Samuels said. ‘‘Her American citizen good judgment. The good people of turned and fashioned the city of Wash- husband gets killed and they treat her like Montana have asked me to take action ington as we now know it. an illegal immigrant.’’ to stop this from happening and that’s We are particularly indebted today Cyrus and Jasmin Salehi filed the paper- work for Salehi to receive a green card in why I am introducing this bill today. for the Commission’s preservation of early 1995, soon after their March nuptials. The Fair and Responsible Fund Use Act the Mall. When the members left for But Salehi was deemed ineligible for resi- will require that we take those funds Europe, the Congress had just given dence status because her husband was killed returned by the States and use them to the Pennsylvania Railroad a 400-foot before they had been married two years—an pay down our national deficit. wide swath of the Mall for a new sta- INS time requirement for a spouse sponsor- Montana and 48 other States are re- tion and trackage. It is hard to imag- ship. quired by law to balance their budgets. ine our city without the uninterrupted The INS has only offered Salehi a tem- porary reprieve, allowing her to stay in the While we came one vote short of mak- stretch of greenery from the Capitol to country for her husband’s murder trial. ing that the standard for this Nation, the Washington Monument, but such As for Salehi, she fears if she is sent back most of us here in Washington are still would have been the result. Fortu- to Korea, she will be a stranger in her own determine to balance our books. If a nately, when in London, Daniel March 20, 1997 CONGRESSIONAL RECORD — SENATE S2701 Burnham was able to convince Penn- There is, of course, the matter of as a former prosecutor, brings a good sylvania Railroad president Alexander parking. This legislation authorizes deal of legal expertise and personal ex- Cassatt that a site on Massachusetts the Architect of the Capitol to con- perience to this issue. We are also Avenue would provide a much grander struct underground parking facilities, grateful for all Senator JEFFORDS has entrance to the city. President Cassatt as needed. These facilities, which will done in the past to lay the groundwork assented and Daniel Burnham gave us undoubtedly be expensive, will be fi- for this important legislation. Union Station. nanced simply by charging for the My sincere thanks also goes out to But the focus of the Commission’s parking. A legitimate user fee. In the the many child advocacy organizations work was the District’s park system. matter of parking, this legislation is which were so helpful in the develop- The Commission noted in its report: an appropriate companion to a bill that ment of this legislation. Aside from the pleasure and the positive my colleague from Rhode Island, Sen- Finally, it is encouraging that simi- benefits to health that the people derive ator CHAFEE, and I introduced earlier lar legislation has been introduced in from public parks, in a capital city like today, which will enable employers to the House by Representatives CAMP Washington there is a distinct use of public provide their employees with cash and KENNELLY. While there are minor spaces as the indispensable means of giving compensation in lieu of a parking differences between our bills, the over- dignity to Government buildings and of mak- ing suitable connections between the great space. This bill, which was also in- all goals of both bills are the same. In departments * * * [V]istas and axes; sites for cluded in the Administration’s ISTEA that regard, I look forward to working monuments and museums; parks and pleas- reauthorization proposal, will expand with our House counterparts toward ure gardens; fountains and canals; in a word employee options for commuting and the enactment this year of child wel- all that goes to make a city a magnificent reduce auto use. fare reform legislation this year. and consistent work of art were regarded as Mr. President, I ask unanimous con- essential in the plans made by L’Enfant By Mr. CHAFEE (for himself, Mr. sent that the text of the bill be printed under the direction of the first President and ROCKEFELLER, Mr. JEFFORDS, in the RECORD. his Secretary of State. Mr. DEWINE, Mr. DODD, Ms. There being no objection, the bill was Washington and Jefferson might be MOSELEY-BRAUN, Mr. KERRY, ordered to be printed in the RECORD, as disappointed at the affliction now im- Mr. KERREY, and Mr. KENNEDY): follows: posed on much of the Capitol Grounds S. 511. A bill to require that the S. 511 by the automobile. health and safety of a child be consid- Be it enacted by the Senate and House of Rep- Despite the ready and convenient ered in any foster care or adoption resentatives of the United States of America in availability of the city’s Metrorail sys- placement, to eliminate barriers to the Congress assembled, tem, an extraordinary number of Cap- termination of parental rights in ap- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. itol Hill employees drive to work. No propriate cases, to promote the adop- (a) SHORT TITLE.—This Act may be cited as doubt many must. But must we provide tion of children with special needs, and the ‘‘Safe Adoptions and Family Environ- free parking? If there is one lesson for other purposes; to the Committee ments Act’’. learned from the Intermodal Surface on Finance. (b) TABLE OF CONTENTS.—The table of con- tents of this Act is as follows: Transportation Efficiency Act of 1991, THE SAFE ADOPTIONS AND FAMILY Sec. 1. Short title; table of contents. it is that free goods are always wasted. ENVIRONMENTS ACT Free parking is a powerful incentive to Mr. CHAFEE. Mr. President, today I TITLE I—REQUIRING CONSIDERATION OF drive to work when the alternative is am pleased to introduce legislation to THE HEALTH AND SAFETY OF A CHILD to pay for public transportation. As we IN FOSTER CARE AND ADOPTION make some critical reforms to the PLACEMENTS have created parking spaces around the child welfare system. The goals of the Sec. 101. Improving foster care protection Capitol, such as the scar of angle- legislation are twofold: to ensure that parked cars at the foot of Pennsylvania requirements. abused and neglected children are in Sec. 102. Clarifying State plan requirements. Avenue made available ‘‘temporarily’’ safe settings, and to move children Sec. 103. Including safety in case plan and during construction of the Thurgood more rapidly out of the foster care sys- case review system require- Marshall Federal Judiciary Building, tem and into permanent placements. ments. demand has simply risen to meet the While the goal of reunifying children Sec. 104. Multidisciplinary/multiagency available supply. The result—the Penn- with their biological families is laud- child death review teams. sylvania Avenue spaces have become able, we should not be encouraging TITLE II—ENHANCING PUBLIC AGENCY permanent and a portion of the Na- States to return abused or neglected AND COMMUNITY ACCOUNTABILITY tion’s main street remains an aesthetic children to homes that are clearly un- FOR THE HEALTH AND SAFETY OF CHILDREN disaster. safe; regrettably, this is occurring Today, I am reintroducing legislation under current law. Sec. 201. Knowledge development and col- to complete the beautification of the Our legislation would clarify the pri- laboration to prevent and treat Capitol Grounds, as envisioned by the substance abuse problems macy of safety and health in decisions among families known to child illustrious McMillan Commission in made about children who have been protective service agencies. 1901, through the elimination of most abused and neglected. The legislation Sec. 202. Priority in providing substance surface parking and restoration of the would also push States to identify and abuse treatment. sites as public parks. The Arc of Park enact State laws to address those cir- Sec. 203. Foster care payments for children Capitol Grounds Improvement Act of cumstances in which the rights of the with parents in residential fa- 1997 would require the Architect of the biological parent should be terminated cilities. Sec. 204. Reimbursement for staff training. Capitol to develop and implement a expeditiously (for example, when the comprehensive plan to improve the Sec. 205. Criminal records checks for pro- parent has been found guilty of felony spective foster and adoptive Capitol Grounds through the creation assault, chronic sexual abuse, or the parents and group care staff. of an ‘‘arc of park,’’ sweeping from Sec- murder of a sibling). Sec. 206. Development of State guidelines to ond Street, NE to the Capitol Reflect- The legislation also would provide in- ensure safe, quality care to ing Pool and back to First Street, SE, centives to move children into perma- children in out-of-home place- with the Capitol Building as its approx- nent placements, either by returning ments. imate center. Delaware Avenue be- them home when reunification is the TITLE III—INCENTIVES FOR PROVIDING tween Columbus Circle and Constitu- goal or by removing barriers to adop- PERMANENT FAMILIES FOR CHILDREN tion Avenue would be closed to traffic tion. Sec. 301. Reasonable efforts for adoption or and rebuilt as a grand pedestrian walk- I would like to thank those who have location of a permanent home. way from Union Station to the Capitol. worked so hard to develop this legisla- Sec. 302. Permanency planning hearings. Sec. 303. Promotion of adoption of children The angled parking would be elimi- tion. In particular, Senator ROCKE- with special needs. nated on Pennsylvania Avenue between FELLER, the lead Democratic cospon- Sec. 304. One-year reimbursement for reuni- First and Third Streets, NW, and the sor, with whom I have worked for fication services. Pennsylvania Avenue tree line would many years on childrens’ issues. I also Sec. 305. Adoptions across State and county be continued onto the Capitol Grounds. want to thank Senator DEWINE, who, jurisdictions. S2702 CONGRESSIONAL RECORD — SENATE March 20, 1997 TITLE IV—PROMOTION OF INNOVATION title 18, United States Code) of another child ‘‘(B) the child who died was a ward of the IN ENSURING SAFE AND PERMANENT of such parent; State or was otherwise known to the State FAMILIES ‘‘(C) to have aided or abetted, attempted, or local child welfare agency; Sec. 401. Innovation grants to reduce back- conspired, or solicited to commit murder or ‘‘(C) the child death was a suicide; or logs of children awaiting adop- voluntary manslaughter of another child of ‘‘(D) the cause of the child death was oth- tion and for other purposes. such parent; erwise unexplained or unexpected. Sec. 402. Expansion of child welfare dem- ‘‘(D) to have committed a felony assault ‘‘(2) A child death review team established onstration projects. that results in serious bodily injury to the in accordance with this subsection should child or to another child of such parent; or TITLE V—MISCELLANEOUS have a membership that, as defined by the ‘‘(E) to have abandoned, tortured, chron- Secretary, will present a range of viewpoints Sec. 501. Effective date. ically abused, or sexually abused the child.’’. that are independent from any specific agen- TITLE I—REQUIRING CONSIDERATION OF (b) STATE LEGISLATION REQUIRED.—Section cy, and shall include representatives from, at THE HEALTH AND SAFETY OF A CHILD 471 of the Social Security Act (42 U.S.C. 671), a minimum, specific fields of expertise, such IN FOSTER CARE AND ADOPTION as amended by subsection (a), is amended by as law enforcement, health, mental health, PLACEMENTS adding at the end the following: and substance abuse, and from the commu- ‘‘(d) Not later than October 3, 1999, a State, nity. SEC. 101. IMPROVING FOSTER CARE PROTECTION in order to be eligible for payments under REQUIREMENTS. ‘‘(3) A State child death review team this part, shall have and enforce State laws (a) IN GENERAL.—Paragraph (9)(B) of sec- that specify— shall— tion 422(b) of the Social Security Act (42 ‘‘(1) the cases, such as those described in ‘‘(A) provide support to a regional or local U.S.C. 622(b)), as added by section 202(a)(3) of subsection (c), in which the State is not re- child death review team; the Social Security Act Amendments of 1994 quired to make efforts at reunification of the ‘‘(B) make public an annual summary of (Public Law 103–432; 108 Stat. 4453), is amend- child with the child’s parent; and case findings; ed— ‘‘(2) the cases, such as those described in ‘‘(C) provide recommendations for system- (1) in clause (iii)(I), by inserting ‘‘safe and’’ subsection (c), in which there are grounds for wide improvements in services to prevent after ‘‘where’’; and expedited termination of parental rights fatal abuse and neglect; and (2) in clause (iv), by inserting ‘‘safely’’ without efforts first being required to re- ‘‘(D) if the State child death review team after ‘‘remain’’. unify the child with the child’s parent be- covers all counties in the State on its own, (b) CONFORMING AND TECHNICAL AMEND- cause of the circumstances that endanger carry out the duties of a regional or local MENTS.—Title IV of the Social Security Act the child’s health or safety.’’. child death review team described in para- (42 U.S.C. 620–635) is amended— (c) REDESIGNATION OF PARAGRAPH.—Section graph (4). (1) in section 422(b)— 471(a) of the Social Security Act (42 U.S.C. ‘‘(4) A regional or local child death review (A) by striking the period at the end of 671(a)) is amended— team shall— paragraph (9) (as added by section 554(3) of (1) by striking ‘‘and’’ at the end of para- ‘‘(A) conduct individual case reviews; the Improving America’s Schools Act of 1994 graph (17); ‘‘(B) assist with regional or local manage- (Public Law 103–382; 108 Stat. 4057)) and in- (2) by striking the period at the end of ment of child death cases; and serting a semicolon; paragraph (18) (as added by section 1808(a) of ‘‘(C) suggest followup procedures and sys- (B) by redesignating paragraph (10) as the Small Business Job Protection Act of tems improvements.’’. paragraph (11); and 1996 (Public Law 104–188; 110 Stat. 1903)) and (b) FEDERAL CHILD DEATH REVIEW TEAM.— (C) by redesignating paragraph (9), as inserting ‘‘; and’’; and Section 471(a) of the Social Security Act (42 added by section 202(a)(3) of the Social Secu- (3) by redesignating paragraph (18) (as U.S.C. 671(a)), as amended by subsection (a), rity Act Amendments of 1994 (Public Law added by section 505(3) of the Personal Re- is amended by adding at the end the follow- 103–432, 108 Stat. 4453), as paragraph (10); and sponsibility and Work Opportunity Rec- ing: (2) in sections 424(b), 425(a), and 472(d), by onciliation Act of 1996 (Public Law 104–193; ‘‘(f)(1) The Secretary shall establish a Fed- striking ‘‘422(b)(9)’’ each place it appears and 110 Stat. 2278)) as paragraph (19). eral child death review team that shall con- inserting ‘‘422(b)(10)’’. SEC. 103. INCLUDING SAFETY IN CASE PLAN AND sist of at least the following: SEC. 102. CLARIFYING STATE PLAN REQUIRE- CASE REVIEW SYSTEM REQUIRE- ‘‘(A) Representatives of the following Fed- MENTS. MENTS. eral agencies who have expertise in the pre- Section 475 of the Social Security Act is (a) IN GENERAL.—Section 471 of the Social vention or treatment of child abuse and ne- Security Act (42 U.S.C. 671) is amended— amended— glect: (1) in subsection (a), by striking paragraph (1) in paragraph (1)— ‘‘(i) Department of Health and Human (A) in subparagraph (A), by inserting ‘‘safe- (15) and inserting the following: Services. ty and’’ after ‘‘discussion of the’’; and ‘‘(15) provides that, in each case— ‘‘(ii) Department of Justice. (B) in subparagraph (B)— ‘‘(A) in determining reasonable efforts, as ‘‘(iii) Bureau of Indian Affairs. (i) by inserting ‘‘safe and’’ after ‘‘child re- described in this section, the child’s health ‘‘(iv) Department of Defense. ceives’’; and and safety shall be the paramount concern; ‘‘(v) Bureau of the Census. (ii) by inserting ‘‘safe’’ after ‘‘return of the and ‘‘(B) Representatives of national child- child to his own’’; and ‘‘(B) reasonable efforts will be made— serving organizations who have expertise in (2) in paragraph (5)— ‘‘(i) prior to the placement of a child in fos- the prevention or treatment of child abuse (A) in subparagraph (A), in the matter pre- ter care, to prevent or eliminate the need for and neglect and that, at a minimum, rep- ceding clause (i), by inserting ‘‘a safe setting removing the child from the child’s home resent the health, child welfare, social serv- that is’’ after ‘‘placement in’’; and when the child can be cared for at home ices, and law enforcement fields. (B) in subparagraph (B)— without endangering the child’s health or ‘‘(2) The Federal child death review team (i) by inserting ‘‘the safety of the child,’’ safety; and established under this subsection shall— after ‘‘determine’’; and ‘‘(ii) to make it possible for the child to re- ‘‘(A) review reports of child deaths on mili- (ii) by inserting ‘‘and safely maintained turn to the child’s home, except— tary installations and other Federal lands, in’’ after ‘‘returned to’’. ‘‘(I) if the State through legislation has and coordinate with Indian tribal organiza- specified the cases in which the State is not SEC. 104. MULTIDISCIPLINARY/MULTIAGENCY tions in the review of child deaths on Indian CHILD DEATH REVIEW TEAMS. required to make efforts at reunification be- reservations; (a) STATE CHILD DEATH REVIEW TEAMS.— cause of circumstances that endanger the Section 471(a) of the Social Security Act (42 ‘‘(B) conduct ongoing reviews of the status child’s health or safety, which shall include U.S.C. 671(a)), as amended by section 102(b), of State child death review teams and re- cases such as those described in subsection is amended by adding at the end the follow- gional or local child death review teams, and (c); or ing: of the management of interstate child death ‘‘(II) if a court determines that returning ‘‘(e)(1) Not later than 5 years after the date cases; the child to the child’s home, would endan- of enactment of the Safe Adoptions and ‘‘(C) provide guidance and technical assist- ger the child’s health or safety;’’; and Family Environments Act, a State, in order ance to States and localities seeking to initi- (2) by adding at the end the following: to be eligible for payments under this part, ate or improve child death review teams and ‘‘(c) For purposes of subsection shall submit to the Secretary a certification to prevent child fatalities; (a)(15)(B)(ii)(I), the cases described in this that the State has established and is main- ‘‘(D) review and analyze relevant aggregate subsection are as follows: taining, a State child death review team, and data from State child death review teams ‘‘(1) A case involving a child with a parent if necessary in order to cover all counties in and from regional or local child death review who has been found by a court of competent the State, child death review teams on the teams, in order to identify and track na- jurisdiction— regional or local level, that shall review tional trends in child fatalities; and ‘‘(A) to have committed murder (as defined child deaths, including deaths in which— ‘‘(E) develop recommendations on related in section 1111(a) of title 18, United States ‘‘(A) there has been a prior report of child policy and procedural issues for Congress, Code) of another child of such parent; abuse or neglect or there is reason to suspect relevant Federal agencies, and States and lo- ‘‘(B) to have committed voluntary man- that the child death was caused by, or relat- calities for the purpose of preventing child slaughter (as defined in section 1112(a) of ed to, child abuse or neglect; fatalities.’’. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2703 TITLE II—ENHANCING PUBLIC AGENCY responsible for administering the State plans needs, and the extent to which those needs AND COMMUNITY ACCOUNTABILITY under subparts 1 and 2 of part B of title IV are being met; FOR THE HEALTH AND SAFETY OF CHIL- of the Social Security Act (42 U.S.C. 620 et (2) a description of the barriers that pre- DREN seq.) shall, not later than 12 months after the vent the substance abuse treatment needs of SEC. 201. KNOWLEDGE DEVELOPMENT AND COL- date of enactment of this Act, jointly pre- clients of child welfare agencies from being LABORATION TO PREVENT AND pare a report containing the information de- treated appropriately; TREAT SUBSTANCE ABUSE PROB- scribed in subparagraph (B) on the joint pre- (3) a description of the collaborative ac- LEMS AMONG FAMILIES KNOWN TO vention and treatment activities conducted tivities of State child welfare and substance CHILD PROTECTIVE SERVICE AGEN- by such agencies, and shall submit the report abuse prevention and treatment agencies to CIES. to the Secretary of Health and Human Serv- jointly assess clients’ needs, fund substance (a) SOURCES OF FEDERAL SUPPORT FOR SUB- ices who shall forward such report to the Ad- abuse prevention and treatment, train and STANCE ABUSE PREVENTION AND TREATMENT ministrator of the Administration for Chil- consult with staff, and evaluate the effec- FOR PARENTS AND CHILDREN.—Not later than dren, Youth and Families, the Director of tiveness of programs serving clients in both 12 months after the date of enactment of this the Center for Substance Abuse Prevention, agencies’ caseloads; Act, the Secretary of Health and Human and the Director of the Center for Substance (4) a summary of the available data on the Services, acting through the Administrator Abuse Treatment. treatment and cost-effectiveness of sub- of the Administration for Children, Youth (B) REQUIRED INFORMATION.—The informa- stance abuse treatment services for clients and Families, and the Director of the Center tion described in this subparagraph shall, to of child welfare agencies; and for Substance Abuse Prevention and the Di- the maximum extent practicable, include— rector of the Center for Substance Abuse (5) recommendations, including rec- (i) a description of the characteristics of ommendations for Federal legislation, for Treatment, shall prepare and provide to the parents of children, including the aggre- State child welfare agencies and substance addressing the needs and barriers, as de- gate numbers, who are reported to State or scribed in paragraphs (1) and (2), and for pro- abuse prevention and treatment agencies an local child welfare agencies because of alle- inventory of all Federal programs that may moting further collaboration of the State gations of child abuse or neglect and have child welfare and substance abuse prevention provide funds for substance abuse prevention substance abuse treatment needs, and the and treatment services for families receiving and treatment agencies in meeting the sub- nature of those needs; stance abuse treatment needs of families. services directly or through grants or con- (ii) a description of the characteristics of tracts from public child welfare agencies. An SEC. 202. PRIORITY IN PROVIDING SUBSTANCE the children of parents who are receiving ABUSE TREATMENT. inventory prepared under this subsection substance abuse treatment from services ad- Section 1927 of the Public Health Service shall include with respect to each Federal ministered by the State substance abuse pre- Act (42 U.S.C. 300x–27) is amended— program listed, the amount of Federal funds vention and treatment and medicaid agen- (1) in the heading, by inserting ‘‘and care- that are available for that program and the cies, including the aggregate number and taker parents’’ after ‘‘women’’; and relevant eligibility requirements. The Sec- whether they are in their parents’ custody; (2) in subsection (a)— retary shall biennially update the inventory (iii) a description of the barriers that pre- (A) in paragraph (1)— required under this subsection. vent the substance abuse treatment needs of (i) by inserting ‘‘and all caretaker parents (b) COLLABORATION BETWEEN FEDERALLY clients of child welfare agencies from being who are referred for treatment by the State SUPPORTED SUBSTANCE ABUSE AND CHILD treated appropriately; or local child welfare agency’’ after ‘‘referred PROTECTION AGENCIES.— (iv) a description of the manner in which for’’; and (1) SUBSTANCE ABUSE PREVENTION AND the State child welfare and substance abuse (ii) by striking ‘‘is given’’ and inserting TREATMENT BLOCK GRANT.—Section 1932(a) of prevention and treatment agencies are col- ‘‘are given’’; and the Public Health Service Act (42 U.S.C. laborating— (B) in paragraph (2)— 300x–32(a)) is amended— (I) to assess the substance abuse treatment (i) by striking ‘‘such women’’ and inserting (A) in paragraph (6)(B), by striking ‘‘and’’ needs of families who are known to child ‘‘such pregnant women and caretaker par- at the end; welfare agencies; ents’’; and (B) by redesignating paragraph (7) as para- (II) to remove barriers that prevent the (ii) by striking ‘‘the women’’ and inserting graph (8); and State from meeting the needs of families ‘‘the pregnant women and caretaker par- (C) by inserting after paragraph (6) the fol- with substance abuse problems; ents’’. lowing: (III) to expand substance abuse prevention, ‘‘(7) the application contains an assurance including early intervention, and treatment SEC. 203. FOSTER CARE PAYMENTS FOR CHIL- that the State will collect information and DREN WITH PARENTS IN RESIDEN- for children and parents who are known to TIAL FACILITIES. prepare the report required under section child welfare agencies; and Section 472(b) of the Social Security Act 201(b)(3) of the Safe Adoptions and Family (IV) to provide for the joint funding of sub- (42 U.S.C. 672(b)) is amended— Environments Act; and’’. stance abuse treatment and prevention ac- (1) in paragraph (1), by striking ‘‘or’’ at the (2) SOCIAL SECURITY ACT.—Title IV of the tivities, the joint training of staff, and the end; Social Security Act is amended— joint consultations between staff of the 2 (2) in paragraph (2), by striking the period (A) in section 422(b), as amended by section State agencies; and inserting ‘‘, or’’; and 101(b) of this Act— (v) a description of the information avail- (3) by adding at the end the following: (i) in paragraph (10), by striking ‘‘and’’ at able on the treatment and cost-effectiveness ‘‘(3) placed with the child’s parent in a res- the end; of, and the annual expenditures for, sub- idential program that provides treatment (ii) in paragraph (11), by striking the pe- stance abuse treatment services provided to and other necessary services for parents and riod and inserting ‘‘; and’’; and families who are known to child welfare children, including parenting services, (iii) by adding at the end the following: agencies; when— ‘‘(12) provide that the State shall collect (vi) available data on the number of par- ‘‘(A) the parent is attempting to over- information and prepare the report required ents and children served by both the State come— under section 201(b)(3) of the Safe Adoptions child welfare and the substance abuse pre- ‘‘(i) a substance abuse problem and is com- and Family Environments Act.’’; and vention and treatment agencies and the plying with an approved treatment plan; (B) in section 432(a)— number of the parents ordered by a court to ‘‘(ii) being a victim of domestic violence; (i) in paragraph (7)(B), by striking ‘‘and’’ seek such services; and ‘‘(iii) homelessness; or at the end; (vii) any other information determined ap- ‘‘(iv) special needs resulting from being a (ii) in paragraph (8), by striking the period propriate by the Secretary of Health and teenage parent; and inserting ‘‘; and’’; and Human Services. ‘‘(B) the safety of the child can be assured; (iii) by adding at the end the following: (c) REPORT TO CONGRESS.—Not later than ‘‘(9) provides that the State shall collect 18 months after the date of enactment of this ‘‘(C) the range of services provided by the information and prepare the report required Act, the Secretary of Health and Human program is designed to appropriately address under section 201(b)(3) of the Safe Adoptions Services, acting through the Administrator the needs of the parent and child; and Family Environments Act.’’. of the Administration for Children, Youth ‘‘(D) the goal of the case plan for the child (3) REPORT ON JOINT ACTIVITIES.— and Families, the Director of the Center for is to try to reunify the child with the family (A) IN GENERAL.—In order to be eligible to Substance Abuse Prevention, and the Direc- within a specified period of time; and receive a grant under subpart 2 of part B of tor of the Center for Substance Abuse Treat- ‘‘(E) the parent described in subparagraph title XIX of the Public Health Service Act ment, shall, using the information reported (A)(i) has not previously been treated in a (42 U.S.C. 300x–21 et seq.) and under subparts to the Secretary jointly by State child wel- residential program serving parents and 1 and 2 of part B of title IV of the Social Se- fare and substance abuse prevention and their children together.’’. curity Act (42 U.S.C. 620 et seq.), the State treatment agencies, prepare and submit to SEC. 204. REIMBURSEMENT FOR STAFF TRAIN- substance abuse prevention and treatment the appropriate committees of Congress a re- ING. agency responsible for administering a grant port containing— (a) TRAINING OF PERSONNEL.—Section 474(a) under subpart 2 of part B of title XIX of the (1) a description of the extent to which cli- of the Social Security Act (42 U.S.C. 674(a)) Public Health Service Act (42 U.S.C. 300x–21 ents of child welfare agencies have substance is amended— et seq.), and the State child welfare agency abuse treatment needs, the nature of those (1) in paragraph (3)(A)— S2704 CONGRESSIONAL RECORD — SENATE March 20, 1997 (A) by striking ‘‘75’’ and inserting ‘‘subject ent or adoptive parent, and any employee of ‘‘(22) provides that, in any case in which to subsection (e), 75’’; a child-care institution before the foster par- the State’s goal for the child is adoption or (B) by inserting ‘‘, and training directed at ent or adoptive parent, or the child-care in- placement in another permanent home, rea- staff maintenance and retention’’ after ‘‘en- stitution may be finally approved for place- sonable efforts will be made to place the rolled in such institutions’’; and ment of a child on whose behalf foster care child in a timely manner with an adoptive (C) by striking ‘‘of personnel’’ and all that maintenance payments or adoption assist- family, legal guardian, or in another planned follows and inserting the following: ‘‘of— ance payments are to be made under the permanent living arrangement and to com- ‘‘(i) personnel employed or preparing for State plan under this part, including proce- plete whatever steps are necessary to finalize employment by the State agency or by the dures requiring that— the adoption or legal guardianship.’’. local agency administering the State plan in ‘‘(A) in any case in which a criminal record (b) CASE PLAN AND CASE REVIEW SYSTEM.— the political subdivision; and check reveals a criminal conviction for child Section 475 of the Social Security Act (42 ‘‘(ii) personnel employed by courts and abuse or neglect, or spousal abuse, a crimi- U.S.C. 675) is amended— State or local law enforcement agencies, and nal conviction for crimes against children, (1) in paragraph (1)— by State, local, or private nonprofit sub- or a criminal conviction for a crime involv- (A) in the last sentence— stance abuse prevention and treatment agen- ing violence, including rape, sexual or other (i) by striking ‘‘the case plan must also in- cies, mental health providers, domestic vio- assault, or homicide, approval shall not be clude’’; and lence prevention and treatment agencies, granted; and (ii) by redesignating such sentence as sub- health agencies, child care agencies, schools, ‘‘(B) in any case in which a criminal record paragraph (D) and indenting appropriately; and child welfare, family service, and com- check reveals a criminal conviction for a fel- and munity service agencies that are collaborat- ony or misdemeanor not involving violence, (B) by adding at the end, the following: ing with the State or local agency admin- or a check of any State child abuse registry ‘‘(E) In the case of a child with respect to istering the State plan in the political sub- indicates that a substantiated report of whom the State’s goal is adoption or place- division to keep children safe, support fami- abuse or neglect exists, final approval may ment in another permanent home, docu- lies, and provide permanent families for chil- be granted only after consideration of the mentation of the steps taken by the agency dren, including adoptive families;’’; nature of the offense or incident, the length to find an adoptive family or other perma- (2) in paragraph (3)(B), by striking ‘‘75’’ of time that has elapsed since the commis- nent living arrangement for the child, to and inserting ‘‘subject to subsection (e), 75’’; sion of the offense or the occurrence of the place the child with an adoptive family, and incident, the individual’s life experiences legal guardian, or in another planned perma- (3) by adding at the end, the following during the period since the commission of nent living arrangement, and to finalize the flush sentence: the offense or the occurrence of the incident, adoption or legal guardianship. At a mini- ‘‘Amounts under subparagraphs (A) and (B) and any risk to the child.’’. mum, such documentation shall include of paragraph (3) shall be paid without regard SEC. 206. DEVELOPMENT OF STATE GUIDELINES child specific recruitment efforts such as the to the primary provider of the training, and TO ENSURE SAFE, QUALITY CARE TO use of State, regional, and national adoption shall be determined without regard to the CHILDREN IN OUT-OF-HOME PLACE- exchanges including electronic exchange sys- proportion of children on whose behalf foster MENTS. tems.’’; and care maintenance payments or adoption as- Section 471(a) of the Social Security Act (2) in paragraph (5)(B), by inserting ‘‘(in- sistance payments are being made under the (42 U.S.C. 671(a)), as amended by section 205, cluding the requirement specified in para- State plan under this part.’’. is amended— graph (1)(E))’’ after ‘‘case plan’’. (1) in paragraph (19), by striking ‘‘and’’ at (b) REQUIREMENTS FOR RECEIPT OF TRAIN- SEC. 302. PERMANENCY PLANNING HEARINGS. the end; ING FUNDS.—Section 474 of the Social Secu- Section 475(5)(C) of the Social Security Act rity Act (42 U.S.C. 674) is amended by adding (2) in paragraph (20), by striking the period (42 U.S.C. 675(5)(C)) is amended— at the end the following: and inserting ‘‘; and’’; and (1) by striking ‘‘dispositional’’ and insert- (3) by adding at the end the following: ‘‘(e) REQUIREMENTS FOR REIMBURSEMENT OF ing ‘‘permanency planning’’; ‘‘(21) provides that the State shall— TRAINING EXPENDITURES.— (2) by striking ‘‘no later than’’ and all that ‘‘(A) develop and implement State guide- ‘‘(1) CROSS-AGENCY TRAINING EXPENDI- follows through ‘‘12 months’’ and inserting lines to ensure safe, quality care for children TURES.— ‘‘not later than 12 months after the original residing in out-of-home care settings, such ‘‘(A) GUIDELINES FOR QUALIFIED EXPENDI- placement (and not less frequently than as guidelines issued by a nationally recog- TURES.—The Secretary shall issue guidelines every 6 months’’; and describing the types of training expenditures nized accrediting body, including the Council (3) by striking ‘‘future status of’’ and all that shall qualify for reimbursement under on Accreditation for Services for Families that follows through ‘‘long term basis)’’ and subsection (a)(3)(A)(ii). The guidelines issued and Children and the Joint Commission on inserting ‘‘permanency plans for the child under the authority of this subparagraph the Accreditation of Health Care Organiza- (including whether and, if applicable, when, shall emphasize reimbursement of training tions; the child will be returned to the parent, re- expenditures to treat and prevent child ‘‘(B) assist public provider agencies and ferred for termination of parental rights, abuse and neglect, keep children safe, sup- private provider agencies that contract and placed for adoption, or referred for legal port families, and provide permanent fami- subcontract with the State to meet over a guardianship, or other planned permanent lies for children, including adoptive families. time period determined by the State the living arrangement)’’. quality guidelines established under sub- ‘‘(B) DOCUMENTATION.—A State may not re- SEC. 303. PROMOTION OF ADOPTION OF CHIL- ceive reimbursement for training expendi- paragraph (A); DREN WITH SPECIAL NEEDS. ‘‘(C) clearly articulate the guidelines tures incurred under subsection (a)(3)(A)(ii) (a) IN GENERAL.—Section 473(a) of the So- unless the State submits to the Secretary, in against which an agency’s performance will cial Security Act (42 U.S.C. 673(a)) is amend- such form and manner as the Secretary may be judged and the conditions under which the ed by striking paragraph (2) and inserting specify, documentation evidencing that the guidelines established under subparagraph the following: expenditures conform with the guidelines is- (A) will be applied; ‘‘(2)(A) For purposes of paragraph (1)(B)(ii), sued under subparagraph (A). ‘‘(D) regularly monitor progress made by a child meets the requirements of this para- the public and private agencies located in ‘‘(2) MAINTENANCE OF EFFORT.—With re- graph if such child— spect to a fiscal year, a State may not re- the State in meeting the guidelines estab- ‘‘(i) prior to termination of parental rights ceive funds under subparagraph (A) or (B) of lished under subparagraph (A); and and the initiation of adoption proceedings subsection (a)(3) if the total State expendi- ‘‘(E) judge agency compliance with the was in the care of a public or licensed non- tures for the previous fiscal year for training guidelines established under subparagraph profit private child care agency or Indian under such subparagraphs are less than the (A) through measuring improvement in child tribal organization either pursuant to a vol- total State expenditures under such subpara- and family outcomes, and through such untary placement agreement (provided the graphs for fiscal year 1996.’’. other measures as the State may determine child was in care for not more than 180 days) appropriate to judge such compliance.’’. SEC. 205. CRIMINAL RECORDS CHECKS FOR PRO- or as a result of a judicial determination to SPECTIVE FOSTER AND ADOPTIVE TITLE III—INCENTIVES FOR PROVIDING the effect that continuation in the home PARENTS AND GROUP CARE STAFF. PERMANENT FAMILIES FOR CHILDREN would be contrary to the welfare of such Section 471(a) of the Social Security Act SEC. 301. REASONABLE EFFORTS FOR ADOPTION child, or was residing in a foster family home (42 U.S.C. 671(a)), as amended by section OR LOCATION OF A PERMANENT or child care institution with the child’s 102(c), is amended— HOME. minor parent (either pursuant to such a vol- (1) in paragraph (18), by striking ‘‘and’’ at (a) STATE PLAN.—Section 471(a) of the So- untary placement agreement or as a result of the end; cial Security Act (42 U.S.C. 671(a)), as such a judicial determination); and (2) in paragraph (19), by striking the period amended by section 206, is amended— ‘‘(ii) has been determined by the State pur- and inserting ‘‘; and’’; and (1) in paragraph (20), by striking ‘‘and’’ at suant to subsection (c) to be a child with spe- (3) by adding at the end the following: the end; cial needs. ‘‘(20) provides procedures for criminal (2) in paragraph (21), by striking the period ‘‘(B) Notwithstanding any other provision records checks and checks of a State’s child and inserting ‘‘; and’’; and of law, and except as provided in paragraph abuse registry for any prospective foster par- (3) by adding at the end the following: (7), a child who is not a citizen or resident of March 20, 1997 CONGRESSIONAL RECORD — SENATE S2705 the United States and who meets the re- (D) concerning the procedures related to ‘‘(D) Implementing or expanding commu- quirements of subparagraph (A) and is other- the administration and implementation of nity-based permanency initiatives, particu- wise determined to be eligible for the receipt the Interstate Compact on the Placement of larly in communities where families reflect of adoption assistance payments, shall be el- Children; and the ethnic and racial diversity of children in igible for adoption assistance payments (3) not later than 12 months after the final the State for whom foster and adoptive under this part. appointment to the advisory panel, submit homes are needed. ‘‘(C) A child who meets the requirements of to the Secretary the report described in sub- ‘‘(E) Developing and implementing commu- subparagraph (A) and who is otherwise deter- section (c). nity-based child protection activities that mined to be eligible for the receipt of adop- (b) COMPOSITION OF ADVISORY PANEL.—The involve partnerships among State and local tion assistance payments shall continue to advisory panel required under subsection (a) governments, multiple child-serving agen- be eligible for such payments in the event shall, at a minimum, be comprised of rep- cies, the schools, and community leaders in that the child’s adoptive parent dies or the resentatives of the following: an attempt to keep children free from abuse child’s adoption is dissolved, and the child is (1) Adoptive parent organizations. and neglect. placed with another family for adoption.’’. (2) Public and private child welfare agen- ‘‘(F) Establishing new partnerships with (b) EXCEPTION.—Section 473(a) of the Social cies that place children for adoption. businesses and religious organizations to Security Act (42 U.S.C. 673(a)) is amended by (3) Family court judges’ organizations. promote safety and permanence for children. adding at the end the following: (4) Adoption attorneys. ‘‘(G) Assisting in the development and im- ‘‘(7)(A) Notwithstanding any other provi- (5) The Association of the Administrators plementation of the State guidelines de- sion of this subsection, no payment may be of the Interstate Compact on the Placement scribed in section 471(a)(21). made to parents with respect to any child of Children and the Association of the Ad- ‘‘(H) Developing new staffing approaches to that— ministrators of the Interstate Compact on allow the resources of several States to be ‘‘(i) would be considered a child with spe- Adoption and Medical Assistance. used to conduct recruitment, placement, cial needs under subsection (c); (6) Any other organizations that advocate adoption, and post-adoption services on a re- ‘‘(ii) is not a citizen or resident of the for adopted children or children awaiting gional basis. United States; and adoption. ‘‘(I) Any other goal that the Secretary ‘‘(iii) the parents adopted outside of the (c) CONTENTS OF REPORT.—The report re- specifies by regulation. United States or the parents brought into quired under subsection (a)(3) shall include ‘‘(3) APPLICATION.— the United States for the purpose of adopting the results of the study conducted under ‘‘(A) IN GENERAL.—An application for a such child. paragraphs (1) and (2) of subsection (a) and grant under this section may be submitted ‘‘(B) Subparagraph (A) shall not be con- recommendations on how to improve proce- for fiscal year 1998 or 1999 and shall contain— strued as prohibiting payments under this dures to facilitate the interjurisdictional ‘‘(i) a plan, in such form and manner as the part for a child described in subparagraph adoption of children, including interstate Secretary may prescribe, for an innovation (A) that is placed in foster care subsequent and intercounty adoptions, so that children project described in paragraph (2) that will will be assured timely and permanent place- to the failure, as determined by the State, of be implemented by the State for a period of ments. the initial adoption of such child by the par- not more than 5 consecutive fiscal years, be- (d) CONGRESS.—The Secretary shall submit ginning with fiscal year 1998 or 1999, as appli- ents described in such subparagraph.’’. a copy of the report required under sub- cable; SEC. 304. ONE-YEAR REIMBURSEMENT FOR RE- section (a)(3) to the appropriate committees ‘‘(ii) an assurance that no waivers from UNIFICATION SERVICES. of Congress, and, if relevant, make rec- provisions in law, as in effect at the time of Section 475(4) of the Social Security Act ommendations for proposed legislation. the submission of the application, are re- (42 U.S.C. 675(4)) is amended by adding at the TITLE IV—PROMOTION OF INNOVATION quired to implement the innovation project; end the following: IN ENSURING SAFE AND PERMANENT and ‘‘(C)(i) In the case of a child that is re- FAMILIES ‘‘(iii) such other information as the Sec- moved from the child’s home and placed in a retary may require by regulation. foster family home or a child care institu- SEC. 401. INNOVATION GRANTS TO REDUCE BACKLOGS OF CHILDREN AWAITING ‘‘(4) DURATION.—An innovation project ap- tion, the foster care maintenance payments ADOPTION AND FOR OTHER PUR- proved under this section shall be conducted made with respect to such child may include POSES. for not more than 5 consecutive fiscal years, payments to the State for reimbursement of (a) IN GENERAL.—Section 474(a) of the So- except that the Secretary may terminate a expenditures for reunification services, but cial Security Act (42 U.S.C. 674) is amended— project before the end of the period origi- only during the 1-year period that begins on (1) in paragraph (4), by striking the period nally approved if the Secretary determines the date that the child is removed from the and inserting ‘‘; plus’’; and that the State conducting the project is not child’s home. (2) by inserting after paragraph (4), the fol- in compliance with the terms of the plan and ‘‘(ii) For purposes of clause (i), the term lowing: application approved by the Secretary under ‘reunification services’ includes services and ‘‘(5) an amount equal to the State’s inno- this section. activities provided to a child described in vation grant award, if an award for the State ‘‘(5) AMOUNTS.—With respect to a fiscal clause (i) and the parents or primary has been approved by the Secretary pursuant year, the Secretary shall award State grants caregiver of such a child, in order to facili- to section 478.’’. under this section, in an aggregate amount tate the reunification of the child safely and (b) INNOVATION GRANTS.—Part E of title IV not to exceed $50,000,000 for that fiscal year. appropriately within a timely fashion, and of the Social Security Act (42 U.S.C. 670 et A State shall not receive a grant under this may only include individual, group, and fam- seq.) is amended by inserting after section section unless, for each year for which a ily counseling, inpatient, residential, or out- 477, the following: grant is awarded, the State agrees to match patient substance abuse treatment services, ‘‘SEC. 478. INNOVATION GRANTS. the grant with $1 for every $3 received. mental health services, assistance to address ‘‘(a) PAYMENTS.— ‘‘(6) NONSUPPLANTING.—Any amounts pay- domestic violence, and transportation to or ‘‘(1) IN GENERAL.—A State that has an ap- able to a State under paragraph (5) of section from such services.’’. plication described in paragraph (3) approved 474(a) shall be in addition to the amounts SEC. 305. ADOPTIONS ACROSS STATE AND COUN- by the Secretary, shall be entitled to receive payable under paragraphs (1), (2), (3), and (4) TY JURISDICTIONS. payments, in an amount determined by the of that section, and shall supplement but not (a) STUDY OF INTERJURISDICTIONAL ADOP- Secretary, under section 474(a)(5) for not replace any other funds that may be avail- TION ISSUES.—The Secretary of Health and more than 5 years for the purpose of carrying able for the same purpose in the localities Human Services (in this section referred to out the innovation projects described in involved. as the ‘‘Secretary’’) shall appoint an advi- paragraph (2). ‘‘(7) EVALUATIONS AND REPORTS.— sory panel that shall— ‘‘(2) INNOVATION PROJECTS DESCRIBED.—The ‘‘(A) STATE EVALUATIONS.—Each State ad- (1) study and consider how to improve pro- innovation projects described in this para- ministering an innovation project under this cedures and policies to facilitate the timely graph are projects that are designed to section shall— and permanent adoptions of children across achieve 1 or more of the following goals: ‘‘(i) provide for ongoing and retrospective State and county jurisdictions; ‘‘(A) Reducing a backlog of children in evaluation of the project, meeting such con- (2) examine, at a minimum, interjurisdic- long-term foster care or awaiting adoption ditions and standards as the Secretary may tional adoption issues— placement. require; and (A) concerning the recruitment of prospec- ‘‘(B) Ensuring, not later than 1 year after ‘‘(ii) submit to the Secretary such reports, tive adoptive families from other States and a child enters foster care, a permanent place- at such times, in such format, and contain- counties; ment for the child. ing such information as the Secretary may (B) concerning the procedures to grant rec- ‘‘(C) Identifying and addressing barriers require. iprocity to prospective adoptive family home that result in delays to permanent place- ‘‘(B) REPORTS TO CONGRESS.—The Secretary studies from other States and counties; ments for children in foster care, including shall, on the basis of reports received from (C) arising from a review of the comity and inadequate representation of child welfare States administering projects under this sec- full faith and credit provided to adoption de- agencies in termination of parental rights tion, submit interim reports, and, not later crees and termination of parental rights or- and adoption proceedings, and other barriers than 6 months after the conclusion of all ders from other States; and to termination of parental rights. projects administered under this section, a S2706 CONGRESSIONAL RECORD — SENATE March 20, 1997 final report to Congress. A report submitted the current 18 months which will cut other Senators. Two days before the under this subparagraph shall contain an as- by one-third the amount of time a 25th anniversary of the first congres- sessment of the effectiveness of the State child is without a plan for a stable sional approval of the equal rights projects administered under this section and home. Our bill also offers states incen- amendment, we reaffirm our strong any recommendations for legislative action that the Secretary considers appropriate. tives to reduce the backlog of children commitment to making the ERA part ‘‘(8) REGULATIONS.—Not later than 60 days waiting for adoption. of the Constitution of the United after the date of enactment of this section, I have fought for children and family States. We intend to do all we can to the Secretary shall promulgate final regula- programs throughout my career, and see that it becomes part of the Con- tions for implementing this section.’’. will continue to do so. Last Congress, I stitution, which is where it belongs. SEC. 402. EXPANSION OF CHILD WELFARE DEM- argued strongly that there is a fun- In a sense, action now is more impor- ONSTRATION PROJECTS. damental difference between welfare tant than ever. Women have achieved a Section 1130(a) of the Social Security Act reform and child welfare and foster great deal during the last two decades. (42 U.S.C. 1320a–9(a)) is amended by striking care. I opposed a block grant approach ‘‘10’’ and inserting ‘‘15’’. But the statutory route has not been as to foster care because abused children successful as we had hoped. Too many TITLE V—MISCELLANEOUS should not be placed at further risk or women and girls still face unfair and SEC. 501. EFFECTIVE DATE. face time-limits. Ultimately, I voted discriminatory barriers in their edu- This Act and the amendments made be this for the block grant of welfare reform. cation, careers, sports, and other goals. Act take effect on October 1, 1997. While I opposed attempts to convert The glass ceiling, the locked door, the Mr. ROCKEFELLER. Mr. President, child welfare and foster care into a sticky floor, the wage gap, and the oc- children who are at risk of abuse and block grant last year, I acknowledged cupation gap are very real problems. neglect are among the most vulnerable the problems in the system and pledged Women still earn only 76 cents for group in our society, and we have a to work on ways to strengthen and im- each dollar earned by men. After a full compelling obligation to do a better prove programs for abused and ne- day’s work, no woman should be forced job in protecting such children. I am glected children outside the context of to take home only three-quarters of a proud to join Senator CHAFEE and oth- welfare reform. Today, we are deliver- pay-check. ers in a bipartisan effort to improve ing on that commitment and working The vast majority of women are still our federal child welfare programs. in a bipartisan manner to encourage clustered in a narrow range of tradi- Almost a decade ago, I had the oppor- reform. tionally low-paying occupations. Too tunity and privilege to serve as the Reform is desperately needed. Re- many women continue to be victims of Chairman of the bipartisan National ports indicate that more than 1 million sexual harassment. Commission on Children. Our diverse American children suffered some type We must do more, much more, to group spent several years traveling the of abuse and neglect. Over 450,000 chil- guarantee fair treatment in the work- country to meet with families, officials dren are in foster care in our country. place and in all aspects of society. Ex- and advocates to delve into the needs In my home state of West Virginia, re- isting laws against sex discrimination of children and families. We issued a ferrals to Child Protective Services are in all its ugly forms can’t get the job unanimous report in 1991 with a com- expected to increase from 12,500 reports done. The need for a constitutional prehensive strategy to help children in 1991 to 17,000 this year. Foster care guarantee of equal rights for women is and strengthen families. One of the placements in West Virginia has compelling. chapters of our report was directed to- jumped to 3,113 children in January Susan B. Anthony said it best over a ward helping children at risk of abuse 1997, up from 2,900 children in January century ago. When the Constitution and neglect. Since the Children’s Com- 1996. says, ‘‘We the People,’’ it should mean mission, I have been working to con- Clearly, we must work together with all the people. Those words speak to us vert our bipartisan recommendations the states to address the complicated across the years. And in 1997, we intend into policy and programs. needs of abused and neglected children. to see that ‘‘all’’ means ‘‘all’’—and The Children’s Commission basic rec- While our legislation may seem tech- making ERA part of the Constitution ommendations called for a more com- nical in nature, its goals are focused on is the right way to do it. prehensive strategy for child protec- protecting children and ensuring that Mr. President, I ask unanimous con- tive services. The panel noted the need every child moves swiftly into a safe, sent that the text of the joint resolu- for a range of services so that children permanent placement where they can tion be printed in the RECORD. and families could get what was needed grow up healthy and secure. To achieve There being no objection, the joint on a case-by-case basis. Our report call such basic goals, we need to invest in a resolution was ordered to be printed in for intensive family preservation serv- range of services—from prevention of the RECORD, as follows: ices when appropriate. If children must abuse, family reunification, and adop- S.J. Res. 24 be removed from their homes, reunifi- tions. cation services need to be available to Protecting children and helping fam- Resolved by the Senate and House of Rep- prepare children and parents for a safe resentatives of the United States of America in ilies should be a bipartisan, community Congress assembled (two-thirds of each House return. There should be better training based effort. We must forge partner- concurring therein), That the following article for foster parents and child welfare ships with states and advocates. This is proposed as an amendment to the Con- staff. Adoption can be the best option legislation reflects this spirit and com- stitution of the United States, which shall be for some children so adoption proce- mitment. valid to all intents and purposes as part of dures should be streamlined. the Constitution when ratified by the legis- The SAFE Act—Safe Adoptions and By Mr. KENNEDY (for himself, latures of three-fourths of the several States: Family Environments—follows through Mr. DODD, Mr. ROBB, Ms. ‘‘ARTICLE — on the Children’s Commission rec- MOSLEY-BRAUN, Mr. LAUTEN- ‘‘SECTION 1. Equality of rights under the ommendations. Our bill stresses that a BERG, Mr. KERRY, Ms. SNOWE, law shall not be denied or abridged by the child’s safety and a child’s health must Mrs. MURRAY, Mr. FEINGOLD, United States or by any State on account of be a primary concern by clarifying cur- Mr. HARKIN, Mr. CHAFEE, Mr. sex. ‘‘SECTION 2. The Congress shall have the rent law known as ‘‘reasonable ef- JEFFORDS, Mr. AKAKA, Mr. power to enforce, by appropriate legislation, BINGAMAN, and Mrs. FEINSTEIN): forts.’’ It is designed to encourage the provisions of this article. S.J. Res. 24. A joint resolution pro- states to move children into stable, ‘‘SECTION 3. This amendment shall take ef- permanent placements quickly. For posing an amendment to the Constitu- fect two years after the date of ratifica- some children, this will be adoption. tion of the United States relative to tion.’’. For others, appropriate intervention equal rights for women and men; to the f and support services can enable chil- Committee on the Judiciary. ADDITIONAL COSPONSORS dren to return home safely. This bill THE EQUAL RIGHTS AMENDMENT will direct states to establish a perma- Mr. KENNEDY. Mr. President, it is S. 6 nency planning hearing for a child in an honor to introduce the equal rights At the request of Mr. INHOFE, his foster care within 12 months, instead of amendment on behalf of myself and 14 name was added as a cosponsor of S. 6, March 20, 1997 CONGRESSIONAL RECORD — SENATE S2707 a bill to amend title 18, United States standards applicable to automobiles in Suffolk County, New York, and New Code, to ban partial-birth abortions. effect at current levels until changed York City, New York, as a result of the S. 75 by law, and for other purposes. crash of flight 800 of Trans World Air- At the request of Mr. KYL, the name S. 317 lines. of the Senator from Florida [Mr. MACK] At the request of Mr. CRAIG, the S. 389 was added as a cosponsor of S. 75, a bill name of the Senator from Utah [Mr. At the request of Mr. ABRAHAM, the to repeal the Federal estate and gift HATCH] was added as a cosponsor of S. names of the Senator from Idaho [Mr. taxes and the tax on generation-skip- 317, a bill to reauthorize and amend the CRAIG] and the Senator from Nebraska ping transfers. National Geologic Mapping Act of 1992. [Mr. HAGEL] were added as cosponsors S. 127 S. 356 of S. 389, a bill to improve congres- At the request of Mr. MOYNIHAN, the At the request of Mr. GRAHAM, the sional deliberation on proposed Federal names of the Senator from Wyoming names of the Senator from North Da- private sector mandates, and for other [Mr. ENZI], the Senator from Maryland kota [Mr. DORGAN] and the Senator purposes. [Ms. MIKULSKI], and the Senator from from North Dakota [Mr. CONRAD] were S. 413 Alaska [Mr. MURKOWSKI] were added as added as cosponsors of S. 356, a bill to At the request of Mrs. HUTCHISON, the cosponsors of S. 127, a bill to amend the amend the Internal Revenue Code of name of the Senator from Alabama Internal Revenue Code of 1986 to make 1986, the Public Health Service Act, the [Mr. SESSIONS] was added as a cospon- permanent the exclusion for employer- Employee Retirement Income Security sor of S. 413, a bill to amend the Food provided educational assistance pro- Act of 1974, the title XVIII and XIX of Stamp Act of 1977 to require States to grams, and for other purposes. the Social Security Act to assure ac- verify that prisoners are not receiving S. 146 cess to emergency medical services food stamps. At the request of Mr. ROCKEFELLER, under group health plans, health insur- S. 415 the name of the Senator from Mis- ance coverage, and the medicare and At the request of Mr. BAUCUS, the sissippi [Mr. COCHRAN] was added as a medicaid programs. names of the Senator from North Da- cosponsor of S. 146, a bill to permit S. 358 kota [Mr. CONRAD] and the Senator medicare beneficiaries to enroll with At the request of Mr. DEWINE, the from Michigan [Mr. ABRAHAM] were qualified provider- sponsored organiza- names of the Senator from South Da- added as cosponsors of S. 415, a bill to tions under title XVIII of the Social kota [Mr. DASCHLE], the Senator from amend the medicare program under Security Act, and for other purposes. Mississippi [Mr. COCHRAN], and the title XVIII of the Social Security Act S. 169 Senator from Kentucky [Mr. FORD] to improve rural health services, and At the request of Mr. CRAIG, the were added as cosponsors of S. 358, a for other purposes. names of the Senator from Mississippi bill to provide for compassionate pay- S. 425 [Mr. COCHRAN], and the Senator from ments with regard to individuals with At the request of Mr. ROTH, the Washington [Mr. GORTON] were added blood-clotting disorders, such as hemo- names of the Senator from Indiana as cosponsors of S. 169, a bill to amend philia, who contracted human [Mr. LUGAR] and the Senator from Ne- the Immigration and Nationality Act immunodeficiency virus due to con- braska [Mr. KERREY] were added as co- with respect to the admission of tem- taminated blood products, and for sponsors of S. 425, a bill to provide for porary H–2A workers. other purposes. an accurate determination of the cost S. 185 S. 365 of living. At the request of Mr. HELMS, the At the request of Mr. COVERDELL, the S. 460 name of the Senator from Georgia [Mr. names of the Senator from Nebraska At the request of Mr. BOND, the COVERDELL] was added as a cosponsor [Mr. HAGEL] and the Senator from Ala- names of the Senator from New Hamp- of S. 185, a bill to prohibit the provi- bama [Mr. SHELBY] were added as co- shire [Mr. GREGG], the Senator from sion of Federal funds to any State or sponsors of S. 365, a bill to amend the Nebraska [Mr. HAGEL], and the Senator local educational agency that denies or Internal Revenue Code of 1986 to pro- from Mississippi [Mr. COCHRAN] were prevents participation in constitu- vide for increased accountability by In- added as cosponsors of S. 460, a bill to tional prayer in schools. ternal Revenue Service agents and amend the Internal Revenue Code of S. 197 other Federal Government officials in 1986 to increase the deduction for At the request of Mr. ROTH, the name tax collection practices and proce- health insurance costs of self-employed of the Senator from Indiana [Mr. dures, and for other purposes. individuals, to provide clarification for COATS] was added as a cosponsor of S. S. 368 the deductibility of expenses incurred 197, a bill to amend the Internal Reve- At the request of Mr. BOND, the name by a taxpayer in connection with the nue Code of 1986 to encourage savings of the Senator from Arkansas [Mr. business use of the home, to clarify the and investment through individual re- HUTCHINSON] was added as a cosponsor standards used for determining that tirement accounts, and for other pur- of S. 368, a bill to prohibit the use of certain individuals are not employees, poses. Federal funds for human cloning re- and for other purposes. S. 220 search. S. 479 At the request of Mr. GRASSLEY, the S. 381 At the request of Mr. GRASSLEY, the names of the Senator from Texas [Mrs. At the request of Mr. ROCKEFELLER, names of the Senator from Washington HUTCHISON] and the Senator from Mis- the name of the Senator from Florida [Mrs. MURRAY] and the Senator from sissippi [Mr. COCHRAN] were added as [Mr. GRAHAM] was added as a cosponsor Utah [Mr. HATCH] were added as co- cosponsors of S. 220, a bill to require of S. 381, a bill to establish a dem- sponsors of S. 479, a bill to amend the the United States Trade Representa- onstration project to study and provide Internal Revenue Code of 1986 to pro- tive to determine whether the Euro- coverage of routine patient care costs vide estate tax relief, and for other pean Union has failed to implement for medicare beneficiaries with cancer purposes. satisfactorily its obligations under cer- who are enrolled in an approved clini- SENATE CONCURRENT RESOLUTION 7 tain trade agreements relating to Unit- cal trail program. At the request of Mr. SARBANES, the ed States meat and pork exporting fa- S. 383 names of the Senator from Iowa [Mr. cilities, and for other purposes. At the request of Mr. D’AMATO, the HARKIN], the Senator from Nevada [Mr. S. 286 name of the Senator from New York REID], the Senator from Oregon [Mr. At the request of Mr. ABRAHAM, the [Mr. MOYNIHAN] was added as a cospon- WYDEN], the Senator from Arkansas name of the Senator from North Caro- sor of S. 383, a bill to require the Direc- [Mr. HUTCHINSON], and the Senator lina [Mr. HELMS] was added as a co- tor of the Federal Emergency Manage- from Louisiana [Mr. BREAUX] were sponsor of S. 286, a bill to provide for a ment Agency to provide funds for com- added as cosponsors of Senate Concur- reduction in regulatory costs by main- pensation for expenses incurred by the rent Resolution 7, a concurrent resolu- taining Federal average fuel economy State of New York, Nassau County and tion expressing the sense of Congress S2708 CONGRESSIONAL RECORD — SENATE March 20, 1997 that Federal retirement cost-of-living SENATE CONCURRENT RESOLU- Taiwan is currently the U.S.’s fifth adjustments should not be delayed. TION 15—RELATIVE TO TAIWAN largest trading partner and U.S. ex-

SENATE CONCURRENT RESOLUTION 11 Mr. TORRICELLI submitted the fol- ports to Taiwan total more than $17 lowing concurrent resolution; which billion annually. This sum is almost At the request of Mr. GREGG, the twice as much as U.S. exports to the names of the Senator from Kentucky was referred to the Committee on Fi- nance: P.R.C. Our trade with the People’s Re- [Mr. FORD], the Senator from Washing- S. Con. Res. 15 public has produced a crushing $39 bil- ton [Mrs. MURRAY], the Senator from lion deficit last year. Montana [Mr. BURNS], the Senator Whereas the people of the United States and the people of Taiwan have long enjoyed The Clinton Administration is pub- from Mississippi [Mr. COCHRAN], the extensive ties; licly committed to supporting Tai- Senator from Georgia [Mr. CLELAND], Whereas Taiwan, a democracy of 21,000,000 wan’s bid to join the World Trade Orga- the Senator from Arkansas [Mr. people, is currently the eighth largest trad- nization. It has already declared that HUTCHINSON], the Senator from Ohio ing partner of the United States, and United the U.S. will not oppose the bid solely [Mr. DEWINE], the Senator from Ten- States exports to Taiwan total more than on the grounds that the P.R.C., which $18,000,000,000 annually, far exceeding the nessee [Mr. FRIST], and the Senator is also seeking WTO membership, is from Oregon [Mr. SMITH] were added as $12,000,000,000 the United States exports to the People’s Republic of China; not yet eligible because of its unac- cosponsors of Senate Concurrent Reso- Whereas the current administration has ceptable trade practices. lution 11, a concurrent resolution rec- committed publicly to support Taiwan’s bid The U.S. and Taiwan have concluded ognizing the 25th anniversary of the es- to join the world Trade Organization (re- discussions on virtually all outstand- tablishment of the first nutrition pro- ferred to in this resolution as the ‘‘WTO’’) ing trade issues necessary for Taiwan’s gram for the elderly under the Older and has declared that the United States will W.T.O. eligibility. All that is left is for Americans Act of 1965. not oppose that bid solely on the grounds that the People’s Republic of China, which the U.S. to make clear that it is pre- SENATE RESOLUTION 63 also seeks WTO membership, is not yet eligi- pared to support Taiwan’s membership At the request of Mr. DOMENICI, the ble because of the People’s Republic of Chi- and for Taiwan and the U.S. to work names of the Senator from North Da- na’s unacceptable trade practices; out the few remaining details govern- Whereas the United States and Taiwan kota [Mr. CONRAD], the Senator from ing trade in a few specific sectors. have concluded discussions on virtually all Nebraska [Mr. HAGEL], the Senator In the weeks ahead, we will be called outstanding trade issues necessary for Tai- upon to vote to renew Most Favored from New York [Mr. D’AMATO], the wan to be eligible to join the WTO; Senator from New Hampshire [Mr. Whereas reversion of control over Hong Nation Status for China and analyzing GREGG], and the Senator from Alaska Kong to Beijing, scheduled to occur on July China’s actions as they take control of [Mr. MURKOWSKI] were added as cospon- 1, 1997, will, in most respects afford the Peo- Hong Kong. As we do all of this, we sors of Senate Resolution 63, a resolu- ple’s Republic of China WTO treatment for cannot forget about our commitments tion proclaiming the week of October the bulk of its trade goods, despite the fact to the people of Taiwan. that the people’s Republic of China’s trade 19 through October 25, 1997, as ‘‘Na- Congress should reaffirm our support practices currently fall far short of qualify- for Taiwan’s bid to join the W.T.O. and tional Character Counts Week.’’ ing for WTO membership; Whereas the American people’s fundamen- make clear that our decision regarding f tal sense of fairness warrants support by the Taiwan’s bid will not be held hostage United States Government for Taiwan’s bid to U.S. negotiations with Beijing. for WTO membership, and Today, I am submitting a Sense of SENATE CONCURRENT RESOLU- Whereas it is in the economic interests of the Congress concurrent resolution TION 14—PROVIDING FOR A CON- United States consumers and exporters for which affirms our support for Taiwan’s DITIONAL ADJOURNMENT OR RE- Taiwan to accede to the WTO at the earliest membership in the W.T.O.. I am possible moment: Now, therefore, be it CESS OF THE SENATE AND THE pleased that a similar concurrent reso- HOUSE OF REPRESENTATIVES Resolved by the Senate (the House of Rep- resentatives concurring), That it is the sense lution is being submitted with bi-par- Mr. LOTT submitted the following of Congress that negotiations between the tisan support in the other body. concurrent resolution; which was con- United States and Taiwan be concluded f sidered and agreed to: promptly and that the United States Govern- ment publicly support the prompt accession SENATE CONCURRENT RESOLU- S. CON. RES. 14 of Taiwan to the WTO. TION 16—SETTING FORTH THE Resolved by the Senate (the House of Rep- Mr. TORRICELLI. Mr. President, the CONGRESSIONAL BUDGET FOR resentatives concurring), That when the Sen- months ahead will require a number of THE UNITED STATES ate recesses or adjourns at the close of busi- important decisions regarding the con- ness on Thursday, March 20, 1997, Friday, Mr. DOMENICI submitted the follow- tinuing evolution of U.S. policy in the ing concurrent resolution; which was March 21, 1997, or Saturday, March 22, 1997, region of the Taiwan Straits. pursuant to a motion made by the Majority referred to the Committee on the Budg- Today, I am submitting a concurrent Leader or his designee in accordance with et: resolution to help clarify long-standing this resolution, it stand recessed or ad- S. CON. RES. 16 journed until noon on Monday, April 7, 1997, U.S. commitments in this regard. or until such time on that day as may be While the Clinton Administration Resolved by the Senate (the House of Rep- specified by the Majority Leader or his des- and Congress attempt to improve rela- resentatives concurring), ignee in the motion to recess or adjourn, or tions with the communist authorities SECTION 1. CONCURRENT RESOLUTION ON THE until noon on the second day after Members in Beijing, it is important for Congress BUDGET FOR FISCAL YEAR 1998. are notified to reassemble pursuant to sec- (a) DECLARATION.—The Congress deter- to make clear the depth of the biparti- mines and declares that this resolution is tion 2 of this concurrent resolution, which- san commitment to the burgeoning ever occurs first; and that when the House the concurrent resolution on the budget for adjourns on the legislative day of Thursday, democratic forces on Taiwan. Any im- fiscal year 1998 including the appropriate March 20, 1997, Friday, March 21, 1997, or Sat- provement in U.S. relations with Tai- budgetary levels for fiscal years 1999, 2000, urday, March 22, 1997, it stand adjourned wan, does not and should not come at 2001, and 2002 as required by section 301 of until 12:30 p.m. on Tuesday, April 8, 1997, or the expense of our ties with the people the Congressional Budget Act of 1974. until noon on the second day after Members of Taiwan. (b) TABLE OF CONTENTS.—The table of con- are notified to reassemble pursuant to sec- The U.S. must renew our past com- tents for this concurrent resolution is as fol- tion 2 of this concurrent resolution, which- mitments to the people of Taiwan. For lows: ever occurs first. example, as a result of the Taiwan Pol- Sec. 1. Concurrent Resolution on the Budget SEC. 2. The Majority Leader of the Senate icy Review throughout 1993 and 1994 for Fiscal Year 1998. and the Speaker of the House, acting jointly Sec. 2. Recommended levels and amounts. and the balance of 1994, the Clinton Ad- Sec. 3. Social Security. after consultation with the Minority Leader ministration publicly pledged to sup- of the Senate and the Minority Leader of the Sec. 4. Major functional categories. House, shall notify the Members of the Sen- port Taiwan’s membership in appro- SEC. 2. RECOMMENDED LEVELS AND AMOUNTS. ate and House, respectively, to reassemble priate international organizations. In The following budgetary levels are appro- whenever, in this opinion, the public interest this regard, few are as important as the priate for the fiscal years 1998, 1999, 2000, shall warrant it. World Trade Organization. 2001, and 2002: March 20, 1997 CONGRESSIONAL RECORD — SENATE S2709

(1) FEDERAL REVENUES.—For purposes of Fiscal year 2001: $461,400,000,000. (3) General Science, Space, and Technology the enforcement of this resolution— Fiscal year 2002: $482,825,000,000. (250): (A) The recommended levels of Federal (b) SOCIAL SECURITY OUTLAYS.—For pur- Fiscal year 1998: revenues are as follows: poses of Senate enforcement under sections (A) New budget authority, $16,477,000,000. Fiscal year 1998: $1,154,586,000,000. 302, 602, and 311 of the Congressional Budget (B) Outlays, $16,997,000,000. Fiscal year 1999: $1,207,938,000,000. Act of 1974, the amounts of outlays of the (C) New direct loan obligations, $0. Fiscal year 2000: $1,261,752,000,000. Federal Old-Age and Survivors Insurance (D) New primary loan guarantee commit- Fiscal year 2001: $1,317,344,000,000. Trust Fund and the Federal Disability Insur- ments, $0. Fiscal year 2002: $1,378,690,000,000. ance Trust Fund are as follows: Fiscal year 1999: (B) The amounts by which the aggregate Fiscal year 1998: $314,452,000,000. (A) New budget authority, $16,458,000,000. levels of Federal revenues should be changed Fiscal year 1999: $327,149,000,000. (B) Outlays, $16,700,000,000. are as follows: Fiscal year 2000: $340,599,000,000. (C) New direct loan obligations, $0. Fiscal year 1998: $¥10,063,000,000. Fiscal year 2001: $355,004,000,000. (D) New primary loan guarantee commit- Fiscal year 1999: $¥4,994,000,000. Fiscal year 2002: $370,379,000,000. ments, $0. Fiscal year 2000: $¥5,026,000,000. SEC. 4. MAJOR FUNCTIONAL CATEGORIES. Fiscal year 2000: Fiscal year 2001: $¥9,576,000,000. The Congress determines and declares that (A) New budget authority, $16,277,000,000. Fiscal year 2002: $¥9,431,000,000. the appropriate levels of new budget author- (B) Outlays, $16,269,000,000. (C) The amounts for Federal Insurance ity, budget outlays, new direct loan obliga- (C) New direct loan obligations, $0. Contributions Act revenues for hospital in- tions, and new primary loan guarantee com- (D) New primary loan guarantee commit- surance within the recommended levels of mitments for fiscal years 1998 through 2002 ments, $0. Federal revenues are as follows: for each major functional category are: Fiscal year 2001: (1) National Defense (050): Fiscal year 1998: $113,467,000,000. (A) New budget authority, $16,266,000,000. Fiscal year 1998: Fiscal year 1999: $119,065,000,000. (B) Outlays, $16,226,000,000. (A) New budget authority, $265,579,000,000. Fiscal year 2000: $125,043,000,000. (C) New direct loan obligations, $0. (B) Outlays, $264,978,000,000. Fiscal year 2001: $130,653,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. Fiscal year 2002: $136,824,000,000. ments, $0. (D) New primary loan guarantee commit- Fiscal year 2002: (2) NEW BUDGET AUTHORITY.—For purposes ments, $588,000,000. of the enforcement of this resolution, the ap- (A) New budget authority, $16,257,000,000. Fiscal year 1999: (B) Outlays, $16,246,000,000. propriate levels of total new budget author- (A) New budget authority, $268,974,000,000. ity are as follows: (C) New direct loan obligations, $0. (B) Outlays, $263,014,000,000. (D) New primary loan guarantee commit- Fiscal year 1998: $1,409,884,000,000. (C) New direct loan obligations, $0. Fiscal year 1999: $1,457,185,000,000. ments, $0. (D) New primary loan guarantee commit- (4) Energy (270): Fiscal year 2000: $1,503,741,000,000. ments, $757,000,000. Fiscal year 1998: Fiscal year 2001: $1,541,157,000,000. Fiscal year 2000: (A) New budget authority, $3,100,000,000. Fiscal year 2002: $1,585,080,000,000. (A) New budget authority, $274,802,000,000. (B) Outlays, $2,281,000,000. (3) BUDGET OUTLAYS.—For purposes of the (B) Outlays, $268,417,000,000. (C) New direct loan obligations, enforcement of this resolution, the appro- (C) New direct loan obligations, $0. $1,050,000,000. priate levels of total budget outlays are as (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- follows: ments, $1,050,000,000. ments, $0. Fiscal year 1998: $1,382,422,000,000. Fiscal year 2001: Fiscal year 1999: Fiscal year 1999: $1,442,854,000,000. (A) New budget authority, $281,305,000,000. (A) New budget authority, $3,483,000,000. Fiscal year 2000: $1,496,592,000,000. (B) Outlays, $269,275,000,000. (B) Outlays, $2,489,000,000. Fiscal year 2001: $1,515,497,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, Fiscal year 2002: $1,556,974,000,000. (D) New primary loan guarantee commit- $1,078,000,000. (4) DEFICITS.—For purposes of the enforce- ments, $1,050,000,000. (D) New primary loan guarantee commit- ment of this resolution, the amounts of the Fiscal year 2002: ments, $0. deficits are as follows: (A) New budget authority, $289,092,000,000. Fiscal year 2000: Fiscal year 1998: $¥227,971,000,000. (B) Outlays, $277,358,000,000. (A) New budget authority, $3,275,000,000. Fiscal year 1999: $¥235,126,000,000. (C) New direct loan obligations, $0. (B) Outlays, $2,372,000,000. Fiscal year 2000: $¥235,064,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, Fiscal year 2001: $¥198,305,000,000. ments, $1,050,000,000. $1,109,000,000. Fiscal year 2002: $¥178,284,000,000. (2) International Affairs (150): (D) New primary loan guarantee commit- (5) PUBLIC DEBT.—The appropriate levels of Fiscal year 1998: ments, $0. the public debt are as follows: (A) New budget authority, $19,882,000,000. Fiscal year 2001: Fiscal year 1998: $5,693,100,000,000. (B) Outlays, $14,713,000,000. (A) New budget authority, $3,073,000,000. Fiscal year 1999: $5,990,700,000,000. (C) New direct loan obligations, (B) Outlays, $2,132,000,000. Fiscal year 2000: $6,283,200,000,000. $1,966,000,000. (C) New direct loan obligations, Fiscal year 2001: $6,518,600,000,000. (D) New primary loan guarantee commit- $1,141,000,000. Fiscal year 2002: $6,678,300,000,000. ments, $12,751,000,000. (D) New primary loan guarantee commit- (6) DIRECT LOAN OBLIGATIONS.—The appro- Fiscal year 1999: ments, $0. priate levels of total new direct loan obliga- (A) New budget authority, $16,415,000,000. Fiscal year 2002: tions are as follows: (B) Outlays, $15,667,000,000. (A) New budget authority, $2,268,000,000. Fiscal year 1998: $33,829,000,000. (C) New direct loan obligations, (B) Outlays, $1,250,000,000. Fiscal year 1999: $33,378,000,000. $2,021,000,000. (C) New direct loan obligations, Fiscal year 2000: $34,775,000,000. (D) New primary loan guarantee commit- $1,174,000,000. Fiscal year 2001: $36,039,000,000. ments, $13,093,000,000. (D) New primary loan guarantee commit- Fiscal year 2002: $37,099,000,000. Fiscal year 2000: ments, $0. (7) PRIMARY LOAN GUARANTEE COMMIT- (A) New budget authority, $16,360,000,000. (5) Natural Resources and Environment MENTS.—The appropriate levels of new pri- (B) Outlays, $15,255,000,000. (300): mary loan guarantee commitments are as (C) New direct loan obligations, Fiscal year 1998: follows: $2,077,000,000. (A) New budget authority, $23,514,000,000. Fiscal year 1998: $315,472,000,000. (D) New primary loan guarantee commit- (B) Outlays, $22,035,000,000. Fiscal year 1999: $324,749,000,000. ments, $13,434,000,000. (C) New direct loan obligations, $30,000,000. Fiscal year 2000: $328,124,000,000. Fiscal year 2001: (D) New primary loan guarantee commit- Fiscal year 2001: $332,063,000,000. (A) New budget authority, $16,603,000,000. ments, $0. Fiscal year 2002: $335,141,000,000. (B) Outlays, $15,128,000,000. Fiscal year 1999: SEC. 3. SOCIAL SECURITY. (C) New direct loan obligations, (A) New budget authority, $23,415,000,000. (a) SOCIAL SECURITY REVENUES.—For pur- $2,122,000,000. (B) Outlays, $22,730,000,000. poses of Senate enforcement under sections (D) New primary loan guarantee commit- (C) New direct loan obligations, $32,000,000. 302, 602, and 311 of the Congressional Budget ments, $13,826,000,000. (D) New primary loan guarantee commit- Act of 1974, the amounts of revenues of the Fiscal year 2002: ments, $0. Federal Old-Age and Survivors Insurance (A) New budget authority, $16,920,000,000. Fiscal year 2000: Trust Fund and the Federal Disability Insur- (B) Outlays, $15,316,000,000. (A) New budget authority, $22,860,000,000. ance Trust Fund are as follows: (C) New direct loan obligations, (B) Outlays, $23,111,000,000. Fiscal year 1998: $402,670,000,000. $2,178,000,000. (C) New direct loan obligations, $32,000,000. Fiscal year 1999: $422,112,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- Fiscal year 2000: $442,345,000,000. ments, $14,217,000,000. ments, $0. S2710 CONGRESSIONAL RECORD — SENATE March 20, 1997 Fiscal year 2001: (A) New budget authority, $42,742,000,000. (C) New direct loan obligations, (A) New budget authority, $22,733,000,000. (B) Outlays, $38,988,000,000. $14,701,000,000. (B) Outlays, $23,113,000,000. (C) New direct loan obligations, (D) New primary loan guarantee commit- (C) New direct loan obligations, $34,000,000. $135,000,000. ments, $24,517,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- Fiscal year 2002: ments, $0. ments, $0. (A) New budget authority, $65,022,000,000. Fiscal year 2002: Fiscal year 2000: (B) Outlays, $63,670,000,000. (A) New budget authority, $22,790,000,000. (A) New budget authority, $43,023,000,000. (C) New direct loan obligations, (B) Outlays, $22,942,000,000. (B) Outlays, $39,308,000,000. $15,426,000,000. (C) New direct loan obligations, $34,000,000. (C) New direct loan obligations, $15,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- ments, $25,676,000,000. ments, $0. ments, $0. (11) Health (550): (6) Agriculture (350): Fiscal year 2001: Fiscal year 1998: Fiscal year 1998: (A) New budget authority, $43,293,000,000. (A) New budget authority, $139,785,000,000. (A) New budget authority, $13,235,000,000. (B) Outlays, $39,361,000,000. (B) Outlays, $139,465,000,000. (B) Outlays, $11,899,000,000. (C) New direct loan obligations, $15,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- $9,620,000,000. ments, $0. ments, $85,000,000. (D) New primary loan guarantee commit- Fiscal year 2002: Fiscal year 1999: ments, $6,365,000,000. (A) New budget authority, $43,537,000,000. (A) New budget authority, $148,562,000,000. Fiscal year 1999: (B) Outlays, $39,522,000,000. (B) Outlays, $148,369,000,000. (A) New budget authority, $12,847,000,000. (C) New direct loan obligations, $15,000,000. (C) New direct loan obligations, $0. (B) Outlays, $11,347,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (C) New direct loan obligations, ments, $0. $11,047,000,000. ments, $0. (9) Community and Regional Development (D) New primary loan guarantee commit- Fiscal year 2000: (450): ments, $6,436,000,000. (A) New budget authority, $155,428,000,000. Fiscal year 1998: Fiscal year 2000: (B) Outlays, $155,184,000,000. (A) New budget authority, $12,231,000,000. (A) New budget authority, $17,243,000,000. (C) New direct loan obligations, $0. (B) Outlays, $10,722,000,000. (B) Outlays, $11,417,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, (C) New direct loan obligations, ments, $0. $11,071,000,000. $2,867,000,000. Fiscal year 2001: (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (A) New budget authority, $163,926,000,000. ments, $6,509,000,000. ments, $2,385,000,000. (B) Outlays, $163,481,000,000. Fiscal year 2001: Fiscal year 1999: (C) New direct loan obligations, $0. (A) New budget authority, $11,069,000,000. (A) New budget authority, $8,618,000,000. (D) New primary loan guarantee commit- (B) Outlays, $9,555,000,000. (B) Outlays, $11,996,000,000. ments, $0. (C) New direct loan obligations, (C) New direct loan obligations, Fiscal year 2002: $10,960,000,000. $2,943,000,000. (A) New budget authority, $170,144,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (B) Outlays, $169,582,000,000. ments, $6,583,000,000. ments, $2,406,000,000. (C) New direct loan obligations, $0. Fiscal year 2002: Fiscal year 2000: (D) New primary loan guarantee commit- (A) New budget authority, $10,805,000,000. (A) New budget authority, $7,916,000,000. ments, $0. (B) Outlays, $9,213,000,000. (B) Outlays, $11,656,000,000. (12) Medicare (570): (C) New direct loan obligations, (C) New direct loan obligations, Fiscal year 1998: $10,965,000,000. $3,020,000,000. (A) New budget authority, $205,396,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (B) Outlays, $205,519,000,000. ments, $6,660,000,000. ments, $2,429,000,000. (7) Commerce and Housing Credit (370): Fiscal year 2001: (C) New direct loan obligations, $0. Fiscal year 1998: (A) New budget authority, $7,987,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $6,720,000,000. (B) Outlays, $11,600,000,000. ments, $0. Fiscal year 1999: (B) Outlays, $¥1,181,000,000. (C) New direct loan obligations, (C) New direct loan obligations, $3,098,000,000. (A) New budget authority, $218,952,000,000. $4,739,000,000. (D) New primary loan guarantee commit- (B) Outlays, $218,411,000,000. (D) New primary loan guarantee commit- ments, $2,452,000,000. (C) New direct loan obligations, $0. ments, $245,500,000,000. Fiscal year 1999: Fiscal year 2002: (D) New primary loan guarantee commit- (A) New budget authority, $11,095,000,000. (A) New budget authority, $8,107,000,000. ments, $0. (B) Outlays, $3,946,000,000. (B) Outlays, $8,725,000,000. Fiscal year 2000: (C) New direct loan obligations, (C) New direct loan obligations, (A) New budget authority, $230,613,000,000. $1,887,000,000. $3,180,000,000. (B) Outlays, $234,575,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. ments, $253,450,000,000. Fiscal year 2000: ments, $2,475,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $15,245,000,000. (10) Education, Training, Employment, and ments, $0. (B) Outlays, $9,475,000,000. Social Services (500): Fiscal year 2001: (C) New direct loan obligations, Fiscal year 1998: (A) New budget authority, $246,404,000,000. $2,238,000,000. (A) New budget authority, $64,792,000,000. (B) Outlays, $241,555,000,000. (D) New primary loan guarantee commit- (B) Outlays, $57,160,000,000. (C) New direct loan obligations, $0. ments, $255,200,000,000. Fiscal year 2001: (C) New direct loan obligations, (D) New primary loan guarantee commit- (A) New budget authority, $16,106,000,000. $12,328,000,000. ments, $0. (B) Outlays, $11,788,000,000. (D) New primary loan guarantee commit- Fiscal year 2002: (C) New direct loan obligations, ments, $20,665,000,000. (A) New budget authority, $262,822,000,000. $2,574,000,000. Fiscal year 1999: (B) Outlays, $262,029,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $62,262,000,000. (C) New direct loan obligations, $0. ments, $257,989,000,000. Fiscal year 2002: (B) Outlays, $61,972,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $16,723,000,000. (C) New direct loan obligations, ments, $0. (B) Outlays, $12,218,000,000. $13,092,000,000. (13) Income Security (600): (C) New direct loan obligations, (D) New primary loan guarantee commit- Fiscal year 1998: $2,680,000,000. ments, $21,899,000,000. (A) New budget authority, $238,843,000,000. (D) New primary loan guarantee commit- Fiscal year 2000: (B) Outlays, $248,200,000,000. ments, $259,897,000,000. (8) Transportation (A) New budget authority, $63,953,000,000. (C) New direct loan obligations, $45,000,000. (400): Fiscal year 1998: (B) Outlays, $63,650,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $44,180,000,000. (C) New direct loan obligations, ments, $37,000,000. (B) Outlays, $40,178,000,000. $13,926,000,000. Fiscal year 1999: (C) New direct loan obligations, (D) New primary loan guarantee commit- (A) New budget authority, $254,368,000,000. $155,000,000. ments, $23,263,000,000. (B) Outlays, $254,867,000,000. (D) New primary loan guarantee commit- Fiscal year 2001: (C) New direct loan obligations, $75,000,000. ments, $0. (A) New budget authority, $64,420,000,000. (D) New primary loan guarantee commit- Fiscal year 1999: (B) Outlays, $64,614,000,000. ments, $37,000,000. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2711 Fiscal year 2000: (16) Administration of Justice (750): (A) New budget authority, $320,135,000,000. (A) New budget authority, $270,654,000,000. Fiscal year 1998: (B) Outlays, $320,135,000,000. (B) Outlays, $271,973,000,000. (A) New budget authority, $24,765,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, (B) Outlays, $22,609,000,000. (D) New primary loan guarantee commit- $110,000,000. (C) New direct loan obligations, $0. ments, $0. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (19) Allowances (920): ments, $37,000,000. ments, $0. Fiscal year 1998: Fiscal year 2001: Fiscal year 1999: (A) New budget authority, $0. (A) New budget authority, $277,036,000,000. (A) New budget authority, $25,511,000,000. (B) Outlays, $0. (B) Outlays, $276,619,000,000. (B) Outlays, $24,728,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- $145,000,000. (D) New primary loan guarantee commit- ments, $0. (D) New primary loan guarantee commit- ments, $0. Fiscal year 1999: ments, $37,000,000. Fiscal year 2000: (A) New budget authority, $0. Fiscal year 2002: (A) New budget authority, $24,673,000,000. (B) Outlays, $0. (A) New budget authority, $290,634,000,000. (B) Outlays, $25,641,000,000. (C) New direct loan obligations, $0. (B) Outlays, $289,068,000,000. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (C) New direct loan obligations, (D) New primary loan guarantee commit- ments, $0. $170,000,000. ments, $0. Fiscal year 2000: (D) New primary loan guarantee commit- Fiscal year 2001: (A) New budget authority, $0. ments, $37,000,000. (A) New budget authority, $25,066,000,000. (B) Outlays, $0. (14) Social Security (650): (B) Outlays, $26,492,000,000. (C) New direct loan obligations, $0. Fiscal year 1998: (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (A) New budget authority, $11,482,000,000. (D) New primary loan guarantee commit- ments, $0. (B) Outlays, $11,557,000,000. ments, $0. Fiscal year 2001: (C) New direct loan obligations, $0. Fiscal year 2002: (A) New budget authority, $0. (D) New primary loan guarantee commit- (A) New budget authority, $25,726,000,000. (B) Outlays, $0. ments, $0. (B) Outlays, $25,601,000,000. (C) New direct loan obligations, $0. Fiscal year 1999: (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (A) New budget authority, $12,121,000,000. (D) New primary loan guarantee commit- ments, $0. (B) Outlays, $12,241,000,000. ments, $0. Fiscal year 2002: (C) New direct loan obligations, $0. (17) General Government (800): (A) New budget authority, $0. (D) New primary loan guarantee commit- Fiscal year 1998: (B) Outlays, $0. ments, $0. (A) New budget authority, $14,881,000,000. (C) New direct loan obligations, $0. Fiscal year 2000: (B) Outlays, $14,023,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $12,868,000,000. (C) New direct loan obligations, $0. ments, $0. (B) Outlays, $12,928,000,000. (D) New primary loan guarantee commit- (20) Undistributed Offsetting Receipts (950): (C) New direct loan obligations, $0. ments, $0. (D) New primary loan guarantee commit- Fiscal year 1999: Fiscal year 1998: ments, $0. (A) New budget authority, $14,698,000,000. (A) New budget authority, ¥$41,806,000,000. Fiscal year 2001: (B) Outlays, $14,549,000,000. (B) Outlays, ¥$41,806,000,000. (A) New budget authority, $13,125,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (B) Outlays, $13,126,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. ments, $0. ments, $0. (D) New primary loan guarantee commit- Fiscal year 2000: Fiscal year 1999: ments, $0. (A) New budget authority, $14,388,000,000. (A) New budget authority, ¥$36,689,000,000. Fiscal year 2002: (B) Outlays, $15,088,000,000. (B) Outlays, ¥$36,689,000,000. (A) New budget authority, $14,523,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (B) Outlays, $14,523,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. ments, $0. ments, $0. (D) New primary loan guarantee commit- Fiscal year 2001: Fiscal year 2000: ments, $0. (A) New budget authority, $14,301,000,000. (A) New budget authority, ¥$37,692,000,000. (15) Veterans Benefits and Services (700): (B) Outlays, $14,692,000,000. (B) Outlays, ¥$37,692,000,000. Fiscal year 1998: (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (A) New budget authority, $40,907,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (B) Outlays, $41,469,000,000. ments, $0. ments, $0. (C) New direct loan obligations, Fiscal year 2002: Fiscal year 2001: $1,029,000,000. (A) New budget authority, $14,547,000,000. (A) New budget authority, ¥$40,311,000,000. (D) New primary loan guarantee commit- (B) Outlays, $14,485,000,000. (B) Outlays, ¥$40,311,000,000. ments, $27,096,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. Fiscal year 1999: (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (A) New budget authority, $41,422,000,000. ments, $0. ments, $0. (B) Outlays, $41,598,000,000. (18) Net Interest (900): Fiscal year 2002: (C) New direct loan obligations, Fiscal year 1998: (A) New budget authority, ¥$47,696,000,000. $1,068,000,000. (A) New budget authority, $300,909,000,000. (B) Outlays, ¥$48,696,000,000. (D) New primary loan guarantee commit- (B) Outlays, $300,909,000,000. (C) New direct loan obligations, $0. ments, $26,671,000,000. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- Fiscal year 2000: (D) New primary loan guarantee commit- ments, $0. (A) New budget authority, $41,868,000,000. ments, $0. (B) Outlays, $43,661,000,000. Fiscal year 1999: f (C) New direct loan obligations, (A) New budget authority, $311,931,000,000. $1,177,000,000. (B) Outlays, $311,931,000,000. SENATE CONCURRENT RESOLU- (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. TION 17—SETTING FORTH THE ments, $26,202,000,000. (D) New primary loan guarantee commit- CONGRESSIONAL BUDGET FOR Fiscal year 2001: ments, $0. THE UNITED STATES (A) New budget authority, $42,286,000,000. Fiscal year 2000: (B) Outlays, $40,582,000,000. (A) New budget authority, $314,999,000,000. Mr. DOMENICI submitted the follow- (C) New direct loan obligations, (B) Outlays, $314,999,000,000. ing concurrent resolution; which was $1,249,000,000. (C) New direct loan obligations, $0. referred to the Committee on the Budg- (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- et: ments, $25,609,000,000. ments, $0. Fiscal year 2002: Fiscal year 2001: S. CON. RES. 17 (A) New budget authority, $42,724,000,000. (A) New budget authority, $316,469,000,000. Resolved by the Senate (the House of Rep- (B) Outlays, $42,787,000,000. (B) Outlays, $316,469,000,000. resentatives concurring), (C) New direct loan obligations, (C) New direct loan obligations, $0. SECTION 1. CONCURRENT RESOLUTION ON THE $1,277,000,000. (D) New primary loan guarantee commit- BUDGET FOR FISCAL YEAR 1998. (D) New primary loan guarantee commit- ments, $0. (a) DECLARATION.—The Congress deter- ments, $25,129,000,000. Fiscal year 2002: mines and declares that this resolution is S2712 CONGRESSIONAL RECORD — SENATE March 20, 1997 the concurrent resolution on the budget for Fiscal year 2002: $6,404,100,000,000. (D) New primary loan guarantee commit- fiscal year 1998 including the appropriate (6) DIRECT LOAN OBLIGATIONS.—The appro- ments, $12,751,000,000. budgetary levels for fiscal years 1999, 2000, priate levels of total new direct loan obliga- Fiscal year 1999: 2001, and 2002 as required by section 301 of tions are as follows: (A) New budget authority, $12,100,000,000. the Congressional Budget Act of 1974. Fiscal year 1998: $33,829,000,000. (B) Outlays, $13,300,000,000. (b) TABLE OF CONTENTS.—The table of con- Fiscal year 1999: $33,378,000,000. (C) New direct loan obligations, tents for this concurrent resolution is as fol- Fiscal year 2000: $34,775,000,000. $2,021,000,000. lows: Fiscal year 2001: $36,039,000,000. (D) New primary loan guarantee commit- Sec. 1. Concurrent Resolution on the Budget Fiscal year 2002: $37,099,000,000. ments, $13,093,000,000. for Fiscal Year 1998. (7) PRIMARY LOAN GUARANTEE COMMIT- Fiscal year 2000: MENTS.—The appropriate levels of new pri- TITLE I—LEVELS AND AMOUNTS (A) New budget authority, $12,600,000,000. mary loan guarantee commitments are as (B) Outlays, $13,000,000,000. Sec. 101. Recommended levels and amounts. follows: (C) New direct loan obligations, Sec. 102. Social Security. Fiscal year 1998: $315,472,000,000. $2,077,000,000. Sec. 103. Major functional categories. Fiscal year 1999: $324,749,000,000. (D) New primary loan guarantee commit- Sec. 104. Reconciliation. Fiscal year 2000: $328,124,000,000. ments, $13,434,000,000. TITLE II—BUDGETARY RESTRAINTS AND Fiscal year 2001: $332,063,000,000. Fiscal year 2001: RULEMAKING Fiscal year 2002: $335,141,000,000. (A) New budget authority, $12,800,000,000. Sec. 201. Deficit and discretionary spending SEC. 102. SOCIAL SECURITY. (B) Outlays, $12,300,000,000. limits. (a) SOCIAL SECURITY REVENUES.—For pur- (C) New direct loan obligations, Sec. 202. Adjustments to limits. poses of Senate enforcement under sections $2,122,000,000. Sec. 203. Tax reserve fund in the Senate. 302, 602, and 311 of the Congressional Budget (D) New primary loan guarantee commit- Sec. 204. Exercise of rulemaking powers. Act of 1974, the amounts of revenues of the ments, $13,826,000,000. TITLE I—LEVELS AND AMOUNTS Federal Old-Age and Survivors Insurance Fiscal year 2002: (A) New budget authority, $13,100,000,000. SEC. 101. RECOMMENDED LEVELS AND Trust Fund and the Federal Disability Insur- AMOUNTS. ance Trust Fund are as follows: (B) Outlays, $12,000,000,000. The following budgetary levels are appro- Fiscal year 1998: $402,805,000,000. (C) New direct loan obligations, priate for the fiscal years 1998, 1999, 2000, Fiscal year 1999: $422,322,000,000. $2,178,000,000. 2001, and 2002: Fiscal year 2000: $442,569,000,000. (D) New primary loan guarantee commit- (1) FEDERAL REVENUES.—For purposes of Fiscal year 2001: $461,552,000,000. ments, $14,217,000,000. the enforcement of this resolution— Fiscal year 2002: $482,825,000,000. (3) General Science, Space, and Technology (A) The recommended levels of Federal (b) SOCIAL SECURITY OUTLAYS.—For pur- (250): revenues are as follows: poses of Senate enforcement under sections Fiscal year 1998: Fiscal year 1998: $1,164,800,000,000. 302, 602, and 311 of the Congressional Budget (A) New budget authority, $16,300,000,000. Fiscal year 1999: $1,213,400,000,000. Act of 1974, the amounts of outlays of the (B) Outlays, $16,800,000,000. Fiscal year 2000: $1,267,500,000,000. Federal Old-Age and Survivors Insurance (C) New direct loan obligations, $0. Fiscal year 2001: $1,327,900,000,000. Trust Fund and the Federal Disability Insur- (D) New primary loan guarantee commit- Fiscal year 2002: $1,389,300,000,000. ance Trust Fund are as follows: ments, $0. (B) The amounts by which the aggregate Fiscal year 1998: $317,700,000,000. Fiscal year 1999: levels of Federal revenues should be changed Fiscal year 1999: $330,400,000,000. (A) New budget authority, $16,400,000,000. are as follows: Fiscal year 2000: $343,900,000,000. (B) Outlays, $16,900,000,000. Fiscal year 1998: $300,000,000. Fiscal year 2001: $358,700,000,000. (C) New direct loan obligations, $0. Fiscal year 1999: $700,000,000. Fiscal year 2002: $373,700,000,000. (D) New primary loan guarantee commit- Fiscal year 2000: $900,000,000. SEC. 103. MAJOR FUNCTIONAL CATEGORIES. ments, $0. Fiscal year 2001: $1,100,000,000. The Congress determines and declares that Fiscal year 2000: Fiscal year 2002: $1,200,000,000. the appropriate levels of new budget author- (A) New budget authority, $16,200,000,000. (C) The amounts for Federal Insurance ity, budget outlays, new direct loan obliga- (B) Outlays, $16,100,000,000. Contributions Act revenues for hospital in- tions, and new primary loan guarantee com- (C) New direct loan obligations, $0. surance within the recommended levels of mitments for fiscal years 1998 through 2002 (D) New primary loan guarantee commit- Federal revenues are as follows: for each major functional category are: ments, $0. Fiscal year 1998: $113,498,000,000. (1) National Defense (050): Fiscal year 2001: Fiscal year 1999: $119,114,000,000. Fiscal year 1998: (A) New budget authority, $16,200,000,000. Fiscal year 2000: $125,095,000,000. (A) New budget authority, $268,000,000,000. (B) Outlays, $16,100,000,000. Fiscal year 2001: $130,688,000,000. (B) Outlays, $262,500,000,000. (C) New direct loan obligations, $0. Fiscal year 2002: $136,824,000,000. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (2) NEW BUDGET AUTHORITY.—For purposes (D) New primary loan guarantee commit- ments, $0. of the enforcement of this resolution, the ap- ments, $588,000,000. Fiscal year 2002: propriate levels of total new budget author- Fiscal year 1999: (A) New budget authority, $16,200,000,000. ity are as follows: (A) New budget authority, $270,600,000,000. (B) Outlays, $16,100,000,000. Fiscal year 1998: $1,360,500,000,000. (B) Outlays, $265,400,000,000. (C) New direct loan obligations, $0. Fiscal year 1999: $1,415,600,000,000. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- Fiscal year 2000: $1,449,800,000,000. (D) New primary loan guarantee commit- ments, $0. Fiscal year 2001: $1,480,600,000,000. ments, $757,000,000. (4) Energy (270): Fiscal year 2002: $1,522,700,000,000. Fiscal year 2000: Fiscal year 1998: (3) BUDGET OUTLAYS.—For purposes of the (A) New budget authority, $273,300,000,000. (A) New budget authority, $2,200,000,000. enforcement of this resolution, the appro- (B) Outlays, $269,300,000,000. (B) Outlays, $1,700,000,000. priate levels of total budget outlays are as (C) New direct loan obligations, $0. (C) New direct loan obligations, follows: (D) New primary loan guarantee commit- $1,050,000,000. Fiscal year 1998: $1,358,300,000,000. ments, $1,050,000,000. (D) New primary loan guarantee commit- Fiscal year 1999: $1,405,100,000,000. Fiscal year 2001: ments, $0. Fiscal year 2000: $1,445,800,000,000. (A) New budget authority, $275,900,000,000. Fiscal year 1999: Fiscal year 2001: $1,456,400,000,000. (B) Outlays, $268,700,000,000. (A) New budget authority, $2,600,000,000. Fiscal year 2002: $1,497,700,000,000. (C) New direct loan obligations, $0. (B) Outlays, $2,000,000,000. (4) DEFICITS.—For purposes of the enforce- (D) New primary loan guarantee commit- (C) New direct loan obligations, ment of this resolution, the amounts of the ments, $1,050,000,000. $1,078,000,000. deficits are as follows: Fiscal year 2002: (D) New primary loan guarantee commit- Fiscal year 1998: $¥193,500,000,000. (A) New budget authority, $278,700,000,000. ments, $0. Fiscal year 1999: $¥191,700,000,000. (B) Outlays, $269,100,000,000. Fiscal year 2000: Fiscal year 2000: $¥178,300,000,000. (C) New direct loan obligations, $0. (A) New budget authority, $2,200,000,000. Fiscal year 2001: $¥128,500,000,000. (D) New primary loan guarantee commit- (B) Outlays, $1,600,000,000. Fiscal year 2002: $¥108,400,000,000. ments, $1,050,000,000. (C) New direct loan obligations, (5) PUBLIC DEBT.—The appropriate levels of (2) International Affairs (150): $1,109,000,000. the public debt are as follows: Fiscal year 1998: (D) New primary loan guarantee commit- Fiscal year 1998: $5,637,000,000,000. (A) New budget authority, $13,400,000,000. ments, $0. Fiscal year 1999: $5,870,700,000,000. (B) Outlays, $13,800,000,000. Fiscal year 2001: Fiscal year 2000: $6,089,400,000,000. (C) New direct loan obligations, (A) New budget authority, $2,000,000,000. Fiscal year 2001: $6,258,300,000,000. $1,966,000,000. (B) Outlays, $1,200,000,000. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2713 (C) New direct loan obligations, (A) New budget authority, $10,200,000,000. (D) New primary loan guarantee commit- $1,141,000,000. (B) Outlays, $3,700,000,000. ments, $2,452,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, Fiscal year 2002: ments, $0. $1,887,000,000. (A) New budget authority, $6,900,000,000. Fiscal year 2002: (D) New primary loan guarantee commit- (B) Outlays, $7,100,000,000. (A) New budget authority, $900,000,000. ments, $253,450,000,000. (C) New direct loan obligations, (B) Outlays, $100,000,000. Fiscal year 2000: $3,180,000,000. (C) New direct loan obligations, (A) New budget authority, $14,300,000,000. (D) New primary loan guarantee commit- $1,174,000,000. (B) Outlays, $9,400,000,000. ments, $2,475,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, (10) Education, Training, Employment, and ments, $0. $2,238,000,000. Social Services (500): (5) Natural Resources and Environment (D) New primary loan guarantee commit- Fiscal year 1998: (300): ments, $255,200,000,000. (A) New budget authority, $52,100,000,000. Fiscal year 1998: Fiscal year 2001: (B) Outlays, $53,600,000,000. (A) New budget authority, $22,500,000,000. (A) New budget authority, $15,100,000,000. (C) New direct loan obligations, (B) Outlays, $21,400,000,000. (B) Outlays, $10,900,000,000. $12,328,000,000. (C) New direct loan obligations, $30,000,000. (C) New direct loan obligations, (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- $2,574,000,000. ments, $20,665,000,000. ments, $0. (D) New primary loan guarantee commit- Fiscal year 1999: Fiscal year 1999: ments, $257,989,000,000. (A) New budget authority, $53,300,000,000. (A) New budget authority, $22,500,000,000. Fiscal year 2002: (B) Outlays, $53,800,000,000. (B) Outlays, $21,600,000,000. (A) New budget authority, $15,700,000,000. (C) New direct loan obligations, (C) New direct loan obligations, $32,000,000. (B) Outlays, $11,700,000,000. $13,092,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, (D) New primary loan guarantee commit- ments, $0. $2,680,000,000. ments, $21,899,000,000. Fiscal year 2000: (D) New primary loan guarantee commit- Fiscal year 2000: (A) New budget authority, $22,600,000,000. ments, $259,897,000,000. (A) New budget authority, $54,100,000,000. (B) Outlays, $22,100,000,000. (8) Transportation (400): (B) Outlays, $54,300,000,000. (C) New direct loan obligations, $32,000,000. Fiscal year 1998: (C) New direct loan obligations, (D) New primary loan guarantee commit- (A) New budget authority, $43,400,000,000. $13,926,000,000. ments, $0. (B) Outlays, $39,100,000,000. (D) New primary loan guarantee commit- Fiscal year 2001: (C) New direct loan obligations, ments, $23,263,000,000. (A) New budget authority, $22,800,000,000. $155,000,000. Fiscal year 2001: (B) Outlays, $22,400,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $55,000,000,000. (C) New direct loan obligations, $34,000,000. ments, $0. (B) Outlays, $55,000,000,000. (D) New primary loan guarantee commit- Fiscal year 1999: (C) New direct loan obligations, ments, $0. (A) New budget authority, $43,400,000,000. $14,701,000,000. Fiscal year 2002: (B) Outlays, $37,900,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $23,100,000,000. (C) New direct loan obligations, ments, $24,517,000,000. (B) Outlays, $22,700,000,000. $135,000,000. Fiscal year 2002: (C) New direct loan obligations, $34,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $55,000,000,000. (D) New primary loan guarantee commit- ments, $0. (B) Outlays, $54,700,000,000. ments, $0. Fiscal year 2000: (C) New direct loan obligations, (6) Agriculture (350): (A) New budget authority, $44,500,000,000. $15,426,000,000. Fiscal year 1998: (B) Outlays, $38,100,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $13,100,000,000. (C) New direct loan obligations, $15,000,000. ments, $25,676,000,000. (B) Outlays, $11,800,000,000. (D) New primary loan guarantee commit- (11) Health (550): (C) New direct loan obligations, ments, $0. Fiscal year 1998: $9,620,000,000. Fiscal year 2001: (A) New budget authority, $135,300,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $45,300,000,000. (B) Outlays, $135,300,000,000. ments, $6,365,000,000. (B) Outlays, $38,000,000,000. (C) New direct loan obligations, $0. Fiscal year 1999: (C) New direct loan obligations, $15,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $12,800,000,000. (D) New primary loan guarantee commit- ments, $85,000,000. (B) Outlays, $11,300,000,000. ments, $0. Fiscal year 1999: (C) New direct loan obligations, Fiscal year 2002: (A) New budget authority, $142,700,000,000. $11,047,000,000. (A) New budget authority, $46,300,000,000. (B) Outlays, $142,500,000,000. (D) New primary loan guarantee commit- (B) Outlays, $38,100,000,000. (C) New direct loan obligations, $0. ments, $6,436,000,000. (C) New direct loan obligations, $15,000,000. (D) New primary loan guarantee commit- Fiscal year 2000: (D) New primary loan guarantee commit- ments, $0. (A) New budget authority, $12,300,000,000. ments, $0. Fiscal year 2000: (B) Outlays, $10,700,000,000. (9) Community and Regional Development (A) New budget authority, $150,400,000,000. (C) New direct loan obligations, (450): (B) Outlays, $150,000,000,000. $11,071,000,000. Fiscal year 1998: (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (A) New budget authority, $10,700,000,000. (D) New primary loan guarantee commit- ments, $6,509,000,000. (B) Outlays, $11,600,000,000. ments, $0. Fiscal year 2001: (C) New direct loan obligations, Fiscal year 2001: (A) New budget authority, $11,100,000,000. $2,867,000,000. (A) New budget authority, $158,000,000,000. (B) Outlays, $9,600,000,000. (D) New primary loan guarantee commit- (B) Outlays, $157,500,000,000. (C) New direct loan obligations, ments, $2,385,000,000. (C) New direct loan obligations, $0. $10,960,000,000. Fiscal year 1999: (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (A) New budget authority, $7,500,000,000. ments, $0. ments, $6,583,000,000. (B) Outlays, $10,000,000,000. Fiscal year 2002: Fiscal year 2002: (C) New direct loan obligations, (A) New budget authority, $167,300,000,000. (A) New budget authority, $10,900,000,000. $2,943,000,000. (B) Outlays, $166,700,000,000. (B) Outlays, $9,300,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. (C) New direct loan obligations, ments, $2,406,000,000. (D) New primary loan guarantee commit- $10,965,000,000. Fiscal year 2000: ments, $0. (D) New primary loan guarantee commit- (A) New budget authority, $7,300,000,000. (12) Medicare (570): ments, $6,660,000,000. (B) Outlays, $8,100,000,000. Fiscal year 1998: (7) Commerce and Housing Credit (370): (C) New direct loan obligations, (A) New budget authority, $203,800,000,000. Fiscal year 1998: $3,020,000,000. (B) Outlays, $204,000,000,000. (A) New budget authority, $5,900,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. (B) Outlays, $¥1,300,000,000. ments, $2,429,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, Fiscal year 2001: ments, $0. $4,739,000,000. (A) New budget authority, $6,800,000,000. Fiscal year 1999: (D) New primary loan guarantee commit- (B) Outlays, $7,400,000,000. (A) New budget authority, $217,500,000,000. ments, $245,500,000,000. (C) New direct loan obligations, (B) Outlays, $217,100,000,000. Fiscal year 1999: $3,098,000,000. (C) New direct loan obligations, $0. S2714 CONGRESSIONAL RECORD — SENATE March 20, 1997 (D) New primary loan guarantee commit- (B) Outlays, $41,200,000,000. (D) New primary loan guarantee commit- ments, $0. (C) New direct loan obligations, ments, $0. Fiscal year 2000: $1,029,000,000. Fiscal year 2002: (A) New budget authority, $226,100,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $13,900,000,000. (B) Outlays, $230,100,000,000. ments, $27,096,000,000. (B) Outlays, $13,500,000,000. (C) New direct loan obligations, $0. Fiscal year 1999: (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (A) New budget authority, $41,700,000,000. (D) New primary loan guarantee commit- ments, $0. (B) Outlays, $41,800,000,000. ments, $0. Fiscal year 2001: (C) New direct loan obligations, (18) Net Interest (900): (A) New budget authority, $240,900,000,000. $1,068,000,000. Fiscal year 1998: (B) Outlays, $236,100,000,000. (D) New primary loan guarantee commit- (A) New budget authority, $299,900,000,000. (C) New direct loan obligations, $0. ments, $26,671,000,000. (B) Outlays, $299,900,000,000. (D) New primary loan guarantee commit- Fiscal year 2000: (C) New direct loan obligations, $0. ments, $0. (A) New budget authority, $42,000,000,000. (D) New primary loan guarantee commit- Fiscal year 2002: (B) Outlays, $44,000,000,000. ments, $0. (A) New budget authority, $257,100,000,000. (C) New direct loan obligations, Fiscal year 1999: (B) Outlays, $256,400,000,000. $1,177,000,000. (A) New budget authority, $308,900,000,000. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (B) Outlays, $308,900,000,000. (D) New primary loan guarantee commit- ments, $26,202,000,000. (C) New direct loan obligations, $0. ments, $0. Fiscal year 2001: (D) New primary loan guarantee commit- (13) Income Security (600): (A) New budget authority, $42,500,000,000. ments, $0. Fiscal year 1998: (B) Outlays, $40,800,000,000. Fiscal year 2000: (A) New budget authority, $229,500,000,000. (C) New direct loan obligations, (A) New budget authority, $309,600,000,000. (B) Outlays, $243,100,000,000. $1,249,000,000. (B) Outlays, $309,600,000,000. (C) New direct loan obligations, $45,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- ments, $25,609,000,000. (D) New primary loan guarantee commit- ments, $37,000,000. Fiscal year 2002: ments, $0. Fiscal year 1999: (A) New budget authority, $42,800,000,000. Fiscal year 2001: (A) New budget authority, $243,600,000,000. (B) Outlays, $42,800,000,000. (A) New budget authority, $308,200,000,000. (B) Outlays, $248,900,000,000. (C) New direct loan obligations, (B) Outlays, $308,200,000,000. (C) New direct loan obligations, $75,000,000. $1,277,000,000. (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- ments, $37,000,000. (D) New primary loan guarantee commit- ments, $25,129,000,000. Fiscal year 2000: ments, $0. (A) New budget authority, $253,500,000,000. (16) Administration of Justice (750): Fiscal year 2002: (B) Outlays, $259,700,000,000. Fiscal year 1998: (A) New budget authority, $308,600,000,000. (C) New direct loan obligations, (A) New budget authority, $21,900,000,000. (B) Outlays, $308,600,000,000. $110,000,000. (B) Outlays, $21,500,000,000. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- ments, $37,000,000. (D) New primary loan guarantee commit- ments, $0. Fiscal year 2001: ments, $0. (19) Allowances (920): (A) New budget authority, $259,000,000,000. Fiscal year 1999: Fiscal year 1998: (B) Outlays, $263,100,000,000. (A) New budget authority, $22,400,000,000. (A) New budget authority, ¥$1,500,000,000. (C) New direct loan obligations, (B) Outlays, $22,400,000,000. (B) Outlays, ¥$900,000,000. $145,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- ments, $37,000,000. ments, $0. ments, $0. Fiscal year 2002: Fiscal year 2000: Fiscal year 1999: (A) New budget authority, $270,800,000,000. (A) New budget authority, $21,500,000,000. (A) New budget authority, ¥$1,700,000,000. (B) Outlays, $273,400,000,000. (B) Outlays, $22,300,000,000. (B) Outlays, ¥$1,400,000,000. (C) New direct loan obligations, (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. $170,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- ments, $0. ments, $0. ments, $37,000,000. Fiscal year 2001: Fiscal year 2000: (14) Social Security (650): (A) New budget authority, $22,100,000,000. (A) New budget authority, ¥$1,700,000,000. Fiscal year 1998: (B) Outlays, $22,500,000,000. (B) Outlays, ¥$1,500,000,000. (A) New budget authority, $11,700,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (B) Outlays, $11,700,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. ments, $0. ments, $0. (D) New primary loan guarantee commit- Fiscal year 2002: Fiscal year 2001: ments, $0. (A) New budget authority, $22,700,000,000. (A) New budget authority, ¥$1,700,000,000. Fiscal year 1999: (B) Outlays, $22,900,000,000. (B) Outlays, ¥$1,600,000,000. (A) New budget authority, $12,600,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (B) Outlays, $12,500,000,000. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. ments, $0. ments, $0. (D) New primary loan guarantee commit- (17) General Government (800): Fiscal year 2002: ments, $0. Fiscal year 1998: (A) New budget authority, ¥$1,700,000,000. Fiscal year 2000: (A) New budget authority, $13,600,000,000. (B) Outlays, ¥$1,700,000,000. (A) New budget authority, $13,400,000,000. (B) Outlays, $13,600,000,000. (C) New direct loan obligations, $0. (B) Outlays, $13,400,000,000. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- ments, $0. (D) New primary loan guarantee commit- ments, $0. (20) Undistributed Offsetting Receipts (950): ments, $0. Fiscal year 1999: Fiscal year 1998: Fiscal year 2001: (A) New budget authority, $13,600,000,000. (A) New budget authority, ¥$42,100,000,000. (A) New budget authority, $13,800,000,000. (B) Outlays, $13,600,000,000. (B) Outlays, ¥$42,100,000,000. (B) Outlays, $13,800,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- ments, $0. ments, $0. ments, $0. Fiscal year 2000: Fiscal year 1999: Fiscal year 2002: (A) New budget authority, $13,700,000,000. (A) New budget authority, ¥$37,100,000,000. (A) New budget authority, $15,300,000,000. (B) Outlays, $13,600,000,000. (B) Outlays, ¥$37,100,000,000. (B) Outlays, $15,300,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- (D) New primary loan guarantee commit- ments, $0. ments, $0. ments, $0. Fiscal year 2001: Fiscal year 2000: (15) Veterans Benefits and Services (700): (A) New budget authority, $13,800,000,000. (A) New budget authority, ¥$38,100,000,000. Fiscal year 1998: (B) Outlays, $13,500,000,000. (B) Outlays, ¥$38,100,000,000. (A) New budget authority, $40,800,000,000. (C) New direct loan obligations, $0. (C) New direct loan obligations, $0. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2715 (D) New primary loan guarantee commit- report changes in laws within its jurisdiction (ii) subparagraph (B) of paragraph (1) ments, $0. that provide direct spending (as defined in shall apply only with respect to fiscal year Fiscal year 2001: section 250(c)(8) of the Balanced Budget and 1995. (A) New budget authority, ¥$39,100,000,000. Emergency Deficit Control Act of 1985) to re- (c) WAIVER.—This section may be waived (B) Outlays, ¥$39,100,000,000. duce outlays $247,000,000 in fiscal year 1998 or suspended in the Senate only by the af- (C) New direct loan obligations, $0. and $3,929,000,000 for the period of fiscal years firmative vote of three-fifths of the Mem- (D) New primary loan guarantee commit- 1998 through 2002. bers, duly chosen and sworn. ments, $0. (d) APPEALS.—Appeals in the Senate TITLE II—BUDGETARY RESTRAINTS AND Fiscal year 2002: from the decisions of the Chair relating to RULEMAKING (A) New budget authority, ¥$40,900,000,000. any provision of this section shall be limited (B) Outlays, ¥$40,900,000,000. SEC. 201. DEFICIT AND DISCRETIONARY SPEND- to 1 hour, to be equally divided between, and (C) New direct loan obligations, $0. ING LIMITS. controlled by, the appellant and the manager (D) New primary loan guarantee commit- (a) DEFINITIONS.— of the concurrent resolution, bill, or joint ments, $0. (1) UNIFIED DEFICIT LIMITS.—In this sec- resolution, as the case may be. An affirma- SEC. 104. RECONCILIATION. tion, the term ‘‘deficit limit’’ means— tive vote of three-fifths of the Members of (a) SENATE COMMITTEES.—Not later than (A) with respect to fiscal year 1997, the Senate, duly chosen and sworn, shall be June 13, 1997, the committees named in this ¥$118,800,000,000. required in the Senate to sustain an appeal subsection shall submit their recommenda- (B) with respect to fiscal year 1998, of the ruling of the Chair on a point of order tions to the Committee on the Budget of the ¥$111,100,000,000. raised under this section. Senate. After receiving those recommenda- (C) with respect to fiscal year 1999, (e) DETERMINATION OF BUDGET LEVELS.— tions, the Committee on the Budget shall re- ¥$98,800,000,000. For purposes of this section, the levels of port to the Senate a reconciliation bill car- (D) with respect to fiscal year 2000, new budget authority, outlays, new entitle- rying out all such recommendations without ¥$78,300,000,000. ment authority, revenues, and deficits for a any substantive revision. (E) with respect to fiscal year 2001, fiscal year shall be determined on the basis (1) COMMITTEE ON AGRICULTURE, NUTRITION, ¥$25,100,000,000; and of estimates made by the Committee on the AND FORESTRY.—The Senate Committee on (F) with respect to fiscal year 2002, $0. Budget of the Senate. Agriculture, Nutrition, and Forestry shall (2) DISCRETIONARY LIMITS.—In this sec- SEC. 202. ADJUSTMENTS TO LIMITS. report changes in laws within its jurisdiction tion and for the purposes of allocations made (a) DEFICIT CALCULATIONS.—As part of that reduce the deficit $41,000,000 in fiscal for the discretionary category pursuant to the information included in the annual re- year 1998 and $283,000,000 for the period of fis- section 302(a) or 602(a) of the Congressional port of CBO to the Committees on the Budg- cal years 1998 through 2002. Budget Act of 1974, the term ‘‘discretionary et of the House of Representatives and the (2) COMMITTEE ON BANKING, HOUSING, AND spending limit’’ means— Senate, CBO shall include— URBAN AFFAIRS.—The Senate Committee on (A) with respect to fiscal year 1998, for (1) the amount, if any, the deficit for the Banking, Housing, and Urban Affairs shall the discretionary category: $503,901,000,000 in prior year was above the deficit limit in sec- report changes in laws within its jurisdiction new budget authority and $541,376,000,000 in tion 201 for such year; that reduce the deficit $544,000,000 in fiscal outlays; (2) the amount, if any, the deficit for the year 1998 and $2,892,000,000 for the period of (B) with respect to fiscal year 1999, for prior year was below the deficit limit in sec- fiscal years 1998 through 2002. the discretionary category: $505,998,000,000 in tion 201 for such year; and (3) COMMITTEE ON COMMERCE, SCIENCE, AND new budget authority and $537,631,000,000 in (3) the amount (if any) the projected defi- TRANSPORTATION.—The Senate Committee on outlays; cit for the budget year is below the deficit Commerce, Science, and Transportation (C) with respect to fiscal year 2000, for limit in section 201 for such year. shall report changes in laws within its juris- the discretionary category: $504,791,000,000 in (b) ADJUSTMENT CALCULATIONS.— diction that reduce the deficit $376,000,000 in new budget authority and $536,888,000,000 in (1) DIVIDEND.— fiscal year 1998 and $18,004,000,000 for the pe- outlays; (A) IN GENERAL.—The Chairman of the riod of fiscal years 1998 through 2002. (D) with respect to fiscal year 2001, for Committee on the Budget of the Senate (in (4) COMMITTEE ON ENERGY AND NATURAL RE- the discretionary category $506,049,000,000 in this section referred to as the ‘‘Chairman’’) SOURCES.—The Senate Committee on Energy new budget authority and $531,311,000,000 in shall make an adjustment in accordance and Natural Resources shall report changes outlays; and with subparagraph (B) by an amount equal in laws within its jurisdiction that provide (E) with respect to fiscal year 2002, for to the smaller of the estimate calculated direct spending (as defined in section the discretionary category: $510,397,000,000 in pursuant to paragraph (2) or (3) of subsection 250(c)(8) of the Balanced Budget and Emer- new budget authority and $530,536,000,000 in (a). gency Deficit Control Act of 1985) to reduce outlays. (B) ADJUSTMENTS.—The Chairman shall— outlays $55,000,000 in fiscal year 1998 and (b) POINT OF ORDER IN THE SENATE.— (i) increase the budget authority and $1,693,000,000 for the period of fiscal years (1) IN GENERAL.—Except as provided in outlay discretionary spending limits in this 1998 through 2002. paragraph (2), it shall not be in order in the resolution for the budget year by an amount (5) COMMITTEE ON FINANCE.—The Commit- Senate to consider— equal to 50 percent of the amount deter- tee on Finance shall report to the Senate a (A) a revision of this resolution or any mined pursuant to subparagraph (A); and reconciliation bill proposing changes in laws concurrent resolution on the budget for fis- (ii) after the adoption of the concurrent within its jurisdiction that reduce the deficit cal years 1999, 2000, 2001, and 2002 (or amend- resolution on the budget for the budget year, $2,903,000,000 in fiscal year 2002 and ment, motion, or conference report on such a credit the prior surplus determined for the $110,122,000,000 for the period of fiscal years resolution) that provides— pay-as-you-go point of order by an amount 1998 through 2002. (i) discretionary spending in excess of the equal to 50 percent of the amount deter- (6) COMMITTEE ON GOVERNMENTAL AF- discretionary spending limit for such fiscal mined pursuant to subparagraph (A). FAIRS.—The Senate Committee on Govern- year; or (2) DEFICIT EXCESS.—If the deficit for the mental Affairs shall report changes in laws (ii) a deficit in excess of the deficit limit prior year was above the deficit limit in sec- within its jurisdiction that reduce the deficit for such fiscal year; or tion 201, the Chairman shall reduce the defi- $914,000,000 in fiscal year 1998 and (B) any bill or resolution (or amendment, cit limit in this resolution for the budget $7,235,000,000 for the period of fiscal years motion, or conference report on such bill or year by the amount determined pursuant to 1998 through 2002. resolution) for fiscal year 1998, 1999, 2000, subsection (a)(1). (7) COMMITTEE ON THE JUDICIARY.—The Sen- 2001, or 2002 that would cause any of the lim- SEC. 203. TAX RESERVE FUND IN THE SENATE. ate Committee on the Judiciary shall report its in this section (or suballocations of the (a) IN GENERAL.—In the Senate, revenue changes in laws within its jurisdiction that discretionary limits made pursuant to sec- and spending aggregates may be reduced and provide direct spending (as defined in section tion 602(b) of the Congressional Budget Act allocations may be revised for legislation 250(c)(8) of the Balanced Budget and Emer- of 1974) to be exceeded. that reduces revenues by providing family gency Deficit Control Act of 1985) to reduce (2) EXCEPTION.— tax relief, fuel tax relief, and incentives to outlays $0 in fiscal year 1998 and $476,000,000 (A) IN GENERAL.—This section shall not stimulate savings, investment, job creation, for the period of fiscal years 1998 through apply if a declaration of war by the Congress and economic growth if such legislation will 2002. is in effect or if a joint resolution pursuant not increase the deficit for— (8) COMMITTEE ON LABOR AND HUMAN RE- to section 258 of the Balanced Budget and (1) fiscal year 1998; SOURCES.—The Senate Committee on Labor Emergency Deficit Control Act of 1985 has (2) the period of fiscal years 1998 through and Human Resources shall report changes been enacted. 2002; or in laws within its jurisdiction that reduce (B) ENFORCEMENT OF DISCRETIONARY LIM- (3) the period of fiscal years 2003 through the deficit $1,118,000,000 in fiscal year 1998 ITS IN FY 1998.—Until the enactment of rec- 2007. and $4,551,000,000 for the period of fiscal years onciliation legislation pursuant to sub- (b) REVISED ALLOCATIONS.—Upon the con- 1998 through 2002. section (a) of section 104 of this resolution— sideration of legislation pursuant to sub- (9) COMMITTEE ON VETERANS’ AFFAIRS.—The (i) subparagraph (A) of paragraph (1) section (a), the Chairman of the Committee Senate Committee on Veterans’ Affairs shall shall not apply; and on the Budget of the Senate may file with S2716 CONGRESSIONAL RECORD — SENATE March 20, 1997 the Senate appropriately revised allocations fore he left for Helsinki. We agreed balance in the year 2002 but resulted in under sections 302(a) and 602(a) of the Con- that over the upcoming recess and a deficit of nearly $70 billion in that gressional Budget Act of 1974 and revised early when we return we would work to year. Obviously, I do not support this functional levels and aggregates to carry out identify and clarify our differences and resolution. I am doubtful whether it this section. These revised allocations, func- tional levels, and aggregates shall be consid- attempt to seek some settlement of is- would have much support of the Sen- ered for the purposes of the Congressional sues so that we might return together ate. And if it were called up by the Budget Act of 1974 as allocations, functional a bipartisan budget blueprint that will Budget Committee in the Chamber, I levels, and aggregates contained in this reso- get us to balance in 2002 and keep us on would work to modify it significantly lution. a path to balance well into the next so that it did achieve balance and (c) REPORTING REVISED ALLOCATIONS.— century. make these fundamental changes re- The appropriate committee shall report ap- Our hope is that these meetings quired to truly address the fiscal con- propriately revised allocations pursuant to which will take place in the next 2 sections 302(b) and 602(b) of the Congres- cerns that lie beyond 2002. sional Budget Act of 1974 to carry out this weeks at the staff level to be followed The second resolution I am introduc- section. by an intensive week of work on our re- ing, I must say that I do not support it SEC. 204. EXERCISE OF RULEMAKING POWERS. turn will yield a bipartisan budget either and I do not think there would The Congress adopts the provisions of blueprint with the President working be a lot of Senators who would like the this title— with the Congress. I am not saying to medicine provided in that budget reso- (1) as an exercise of the rulemaking the Senate that I am certain that will lution but, reluctantly, would be forced power of the Senate and the House of Rep- work, but I truly believe there is a to vote for this if progress is not made resentatives, respectively, and as such they probability that this could work. There in the next few weeks to modify the shall be considered as part of the rules of has been a lot of behind-the-scenes President’s proposal, and that might be each House, or of that House to which they work, and I think the issues are pretty the case. specifically apply, and such rules shall su- persede other rules only to the extent that well defined. Everybody wants to be This is my own resolution. It is not they are inconsistent therewith; and rather specific in the solutions and necessarily a Republican resolution. It (2) with full recognition of the constitu- that will take a little bit of time. is simply my effort to point out to all tional right of either House to change those As I expressed with the President what would be required to reach bal- rules (so far as they relate to that House) at yesterday, it is my fervent hope and I ance in 2002 without any changes to the any time, in the same manner, and to the am committed to finding that common President’s limited entitlement sav- same extent as in the case of any other rule ground that will achieve the goal not ings. This second resolution, based on of that House. for anybody’s political gain but for the the Congressional Budget Office bench- Mr. DOMENICI. Mr. President, as my country’s economic future. mark used to analyze the President’s friends on the other side of the aisle For today, however, it is obvious that budget, assumes the President’s rel- like to point out, the Congressional the statutory deadline in the Senate atively low stated savings over the Budget Act includes a timetable for will come while we are out on Easter next 5 years in Medicare of $100 billion Congress to adopt a budget resolution recess and while staff is working on and Medicaid of $9 billion. that includes having the Senate Budget this budget process during the recess. This resolution assumes essentially Committee report a budget resolution So today, in order to ensure that the the same defense spending pattern as by April 1—it used to be May but it was work of the Senate will go on, regard- the President had. The budget makes moved back to April 1—and the con- less of the outcome of these discus- no assumptions about any changes to ference with the House is supposed to sions, I am introducing two fully draft- the Consumer Price Index and no be completed by April 15. What, of ed budget resolutions that will be re- changes to the Congressional Budget course, is not being said is the simple ferred to the Budget Committee but Office assumptions. This alternative fact that since 1987, when we moved the will be automatically discharged from budget resolution assumes no net tax completion date from May 15 to April the committee on April 1 and placed reductions over the next 5 years. 15—only once in those 11 years has the back on the Senate Calendar. All of This resolution includes what might Congress ever met the April 15 dead- this occurs by statute which dictates be thought of as a reverse trigger. It is line. Only three times has the Senate that procedure. This is not unprece- based on the Congressional Budget Of- Budget Committee itself met the April dented and certainly not unreasonable. fice economic forecast which is more 1 deadline. My former Democratic chairmen, Sen- conservative than the administra- Obviously, we have not been in ators Chiles and Sasser, routinely fol- tion’s, but the resolution would allow charge of that committee most of those lowed this process to provide that in- for an adjustment to domestic spending years that the Democrat majority on surance the Senate needs that we and permit tax cuts, if the administra- the other side was in charge. Nonethe- would, indeed, be able to work our will tion’s more optimistic economic as- less, this year the Senate Budget Com- even if the committee failed to report sumptions turn out to be right, more mittee received the President’s budget a resolution. right than the Congressional Budget on February 6. Incidentally, the Presi- So I want to make it clear that I do Office, and the targets toward a bal- dent’s budget was delayed a few days not intend that the Budget Committee anced budget are being met on a speci- this year also. Nevertheless, the com- not report a budget resolution. That is fied timetable. Then there would be a mittee has engaged in many hearings clearly not my intention. I would not trigger in instead of a trigger out as and meetings on the President’s budg- want to be vested with that result be- the President proposed to make up for et. And only 17 days ago, on March 3, cause we have always been able to re- an unbalanced budget. did the Congress receive the Congres- port a budget resolution out of the Finally, to achieve balance in 2002 sional Budget Office’s preliminary Budget Committee for better or for with these assumptions, that portion of analysis of the President’s budget. The worse. It has always met its respon- the Federal Government that rep- final analysis is yet to be completed. sibilities, and I am certain we are resents annually appropriated accounts And we all know that the Congres- going to do that again this year. But in for most domestic agencies will be re- sional Budget Office analysis of the the event we could not, either of these duced by $183 billion over the next 5 President’s budget set us back in our resolutions which I introduced today years—nearly three times the level efforts to get this job done quickly. could be called off the calendar by the that the President assumes in his budg- The President’s plan did not achieve leader and the full Senate would then et. I estimate that these domestic balance according to this preliminary work its will on either of those as they spending programs would see nearly a report in the year 2002 without relying are called up and made part of the Sen- 20 percent reduction in the level of on some awkward triggering mecha- ate’s ordinary business. spending over the next 5 years. And, of nisms. The first resolution I am submitting course, that is estimating that they all Yesterday, I, along with my fellow today is simply the President’s budget take the same cut. To the extent that House Budget Committee Chairman submitted back in February and reesti- you cause some to increase others and two ranking members, met with mated by the Congressional Budget Of- would have to be reduced even more. the President to discuss the budget be- fice which we now know did not reach There would be absolutely no room for March 20, 1997 CONGRESSIONAL RECORD — SENATE S2717 any new initiatives and many existing plained to the Senate two alternative The chairman of the Budget Commit- programs would obviously have to be budget resolutions. tee did not present this proposal as his terminated. He has, as a matter of courtesy, in- preferred budget, nor is it mine, nor is The message from this second resolu- troduced the President’s budget with- it, I am sure, that of the distinguished tion, if the goal is still to reach bal- out change, but with the analysis and Presiding Officer at this point. It is ance by 2002 using the conservative economic impacts that it will cost simply what we are likely to be forced Congressional Budget Office forecasts made by the Congressional Budget Of- to do if we cannot agree on significant and unless the President is willing to fice. reform in the entitlement programs do more than his budget now envisions The Senator from New Mexico has which are growing both so rapidly as to in mandatory programs or entitlement also introduced a budget, a sparse and crowd out all other spending and all programs, not only would we not be bare-bones budget, that he feels will be tax relief, but also so rapidly as to able to fund any new initiatives, there required as almost the only responsible threaten their own very existence. would be significant reductions in pro- answer to the refusal of the President What the Senator from New Mexico grams such as education, environment, of the United States seriously to con- would prefer, what this Senator would crime fighting, transportation, housing sider entitlement reform in his budget. prefer, would be an engagement, a In order to bring the budget of the and others and neither would tax cuts budget resolution reflecting a strong United States in balance by the year in the President’s budget or the con- bipartisan consensus in this body and 2002, in order to get the huge fiscal div- gressional budget be possible. the strong enthusiastic support and Again, this is not a preferred option idend of more than $75 billion that recommendations of the President of on my part. I certainly am not rec- economists tell us will result from a the United States himself that will re- ommending this to anyone. I think we balanced budget, in order to provide quire us to deal with entitlements. It the economic opportunities and the in- can do much better, and I think we will require us to look into the accu- creased income to Americans across will. I think we can achieve balance racy, or lack of accuracy, in the the country that a balanced budget and provide some relief, tax relief, to Consumer Price Index, because it is will provide, in order to end the prac- hard-working American families. I be- only if we have a more equitably dis- tice of spending money today and send- lieve we do not need to devastate Gov- tributed budget that we can provide for ing the bills to our children and grand- ernment programs in the manner that tax relief and for necessary discre- children, the Senator from New Mexico I have just described. tionary spending programs. Only then has introduced a budget that does no But it will require courage in dealing we can have a conversation with the more and no less in the way of entitle- with entitlement spending, and I am President and between the two parties ment reform than the inadequate pro- asking that the President join with us on exactly what tax relief should be posals of the President of the United in a bipartisan way to exhibit that granted to the American people and States, accepts the conservative pro- courage. I am dedicated to making sure where additional discretionary funds jections of our economy made by our neither of these resolutions I have in- may be spent. own Congressional Budget Office and, troduced today will ever need to be As I began these remarks, there was therefore, includes no room—and I em- considered when we return from this on the floor the distinguished Senator phasize no room, Mr. President—for from Rhode Island, Mr. CHAFEE, and recess, for they will not be considered overdue and deserved tax relief for the if we produce a balanced budget in the there is now my friend from North Da- American people. kota, Senator CONRAD. Each of them committee and report it to the Senate, Even without any tax relief for the was a leader, one a Republican and one for that will be the subject matter be- American people, this set of decisions a Democrat, in a bipartisan budget pro- fore the Senate at that time. requires reductions in domestic discre- posal which was presented to this body I believe that is entirely possible. If tionary spending that are extremely almost a year ago on this floor. It cou- we cannot work something out with drastic, more than twice those that ei- rageously dealt with each one of these the President, which I am still hoping ther the President or most of us, as Re- issues, dealt with them in a balanced and indicating today there is a prob- publicans on the Budget Committee, fashion and dealt with them in a way ability that we could, then we will feel to be appropriate. In addition to that decisively would have brought the work it out in the committee. One way leaving no room for any tax relief, this budget into balance by the year 2002. or another it will come out of there, in budget has no room for any of the new One of the curious elements of that my opinion perhaps bipartisan. Work is initiatives proposed by the President budget, I may say, Mr. President, and I underway and I remain hopeful that a himself. am sure my friend from North Dakota solid budget will be prepared that will The Senator from New Mexico has in- agrees with me, was that we hear today enjoy the support of the President and troduced this budget in this form to in- numerous favorable comments about it the vast majority here in the Congress. dicate precisely what the real world from those who did not vote for it. In I think we all understand the signifi- consequences of a failure to reform en- fact, if we could try it again and put cance of these events this year, and I titlement spending will be. ourselves back into April of last year, must say that I believe the President In addition, in order to end or to it looks like it might have gotten 70 understands the significance. mute the debate with the President votes rather than 46. I mean, it seems to me that if, in over whether the President’s far more In any event, that time is past, that fact, we do not reach some accord with rosy projections of our economy are time is lost and because we lost it, the the President, he can look forward to a correct as against those of the Congres- challenges we face are even more dif- very frustrating couple of years, sional Budget Office, the proposal of ficult today. But I know that my friend achieving little or nothing, not moving the Senator from New Mexico says if, from New Mexico, who has now re- toward a balanced budget with any dis- in fact, the economy operates in a bet- turned to the floor, means the intro- patch and any earnestness. And I am ter fashion than is projected by the duction of these two alternatives to be not sure that is good for him. Congressional Budget Office, half of a trigger toward an agreement with the For Republicans, I am quite positive those additional revenues will be de- President and with many members of that we do not want 2 or 4 years of just voted to tax relief and half to reducing the Democratic Party on a budget that constant turmoil, working by our- the cuts in domestic discretionary will realistically reach balance by the selves, among ourselves as Repub- spending. In other words, instead of the year 2002 which will give needed tax re- licans, but rather should look forward policies proposed by the President, lief to the American people, tax relief to working this very important set of which is ‘‘spend now and then cut ev- that they deserve, that will allow us circumstances out in a bipartisan man- erything to ribbons if my projections sufficient money for the important dis- ner for the benefit of everyone. don’t work out,’’ this proposal says, cretionary programs of this Govern- Mr. GORTON. Mr. President, my ‘‘take the more conservative projec- ment, whether they are the building of good friend, the distinguished chair- tions now and spend and provide tax re- an infrastructure or for education or man of the Budget Committee and the lief in the future if the President’s pro- for environmental purposes, and that Senator from New Mexico, Senator DO- jections show themselves to be correct will not only reform entitlement pro- MENICI, has just introduced and ex- in whole or in part.’’ grams so that these other goals can be S2718 CONGRESSIONAL RECORD — SENATE March 20, 1997 reached, but will reform them so that SENATE CONCURRENT RESOLU- Lukashenka to expand his already con- they are themselves secure and finan- TION 18—RELATIVE TO BELARUS siderable powers at the expense of basic cially sound for the future, and so that Mr. LAUTENBERG (for himself and democratic principles. I am deeply con- what we do reflects the real world and Mr. D’AMATO) submitted the following cerned by his proposal to unify Russia not an artificial set of statistics. concurrent resolution; which was re- and Belarus. And, as the cochairman of So I came to the floor this evening, ferred to the Committee on Foreign the Helsinki Commission, I am dis- Mr. President, to thank the Senator Relations: mayed by President Lukashenka’s fail- ure to abide by the provisions of the from New Mexico for his thoughtful- S. CON. RES. 18 ness and his tremendous amount of Helsinki Final Act and other OSCE Whereas the seedlings of an independent agreements which guarantee respect work for the two resolutions that he and democratic Belarus, for which genera- has submitted, and to simply try to tions of Belarusan patriots have fought and for human rights and fundamental free- emphasize that with him I hope not died, are in danger of being swept away as a doms. that either of these proposals passes result of the policies of Belarusan President The resolution recognizes March 25, and becomes a guideline for the U.S. Alaksandr Lukashenka and the efforts of 1997, as the anniversary of the procla- Senate and for the Congress, but that Russian nationalist leaders to recreate the mation of Belarusan independence. It they help us reach a goal that is not a Soviet empire; calls on President Lukashenka and the Whereas March 25th is the date that Republican goal, not a Democratic Government to abide by the provisions Belarusans throughout the world salute the of the Helsinki Final Act and other goal, but a goal for all Americans. sacrifices and bravery of the members of the Mr. DOMENICI. Would the Senator Council of the Belarusan Democratic Repub- agreements of the Organization for the yield? lic, who in 1918 liberated their country from Security and Cooperation of Europe; to czarist rule; guarantee human rights and fundamen- Mr. GORTON. The Senator would. Whereas the Russian Duma in March 1996 tal freedoms, including freedom of the Mr. DOMENICI. First, let me note voted to declare void the 1991 agreement dis- press, assembly, and expression; and to the presence of Senator CONRAD on the solving the Soviet Union; guarantee separation of powers. The floor. Whereas the referendum adopted in No- resolution states that it is the policy of vember of 1996 expanded President Might I just say, I do not think you Lukashenka’s already considerable powers in the United States to support the people heard any of my remarks since I re- violation of the Constitution of Belarus and of Belarus in achieving independent turned from a couple of hours at the basic democratic principles; statehood, promoting the rule of law, White House yesterday. And I have not Whereas on January 16, 1996, the Chair- human rights, and fundamental free- had a chance to speak with the distin- man-in-Office of the Organization for the Se- doms, and assuring that Belarus has guished Senator. But we are busy, as of curity and Cooperation of Europe urged the the opportunity to survive as an equal today, working on trying to reach our Government of Belarus ‘‘to enter into dia- and full-fledged member-state among differences. There will be a lot of work logue with the opposition and to ensure free- sovereign nations of the world. dom of media and not restrict access to the the next 2 weeks. We are very hopeful media for members of the opposition’’; As we approach the anniversary of 1 week after we return, with that week Whereas on March 14, 1997, the United Belarus’ 1918 declaration of independ- being spent by some of us getting down States Department of State issued a state- ence, we are reminded that Belarus is a to the final stages of negotiations, that ment that calls on President Lukashenka’s nation with a proud history and tradi- we will have something very construc- Government to exercise restraint and to ob- tions. It is appropriate that we remem- tive. serve the international human rights agree- ber the brave struggle of Belarusan pa- ments to which it is a party; and It is hard to say where it will all end triots in 1918. At the same time, we Whereas the Government of President must recognize that the struggle for up, but I can say the President ap- Lukashenka has monopolized the mass proached it with a degree of not only media, undermined the constitutional foun- national sovereignty and democratic earnestness, but a sense that we ought dation for the separation of powers, sup- freedoms continues today and is great- to go ahead and move and we ought to pressed the freedom of the press, undermined ly threatened by the actions of the resolve some differences and get going. efforts to restore the Belarusan language, Lukashenka regime. And I have expressed that here today, and undercut the ground for all-Belarusan I urge my colleagues to approve this indicating that as these two budgets unity: Now, therefore, be it resolution. Resolved by the Senate (the House of Rep- f are only there in the event we cannot resentatives concurring), That it is the sense get a budget out of the Budget Com- of Congress that the President should urge SENATE RESOLUTION 66—COM- mittee, then we have to get something President Lukashenka and the Government MENDING THE UNIVERSITY OF to work off of, and this is a rather nor- of Belarus to— FLORIDA FOOTBALL TEAM mal way to do it: Put a budget resolu- (1) abide by the provisions of— tion in. Then the leader can call it up (A) the Helsinki Final Act; and Mr. MACK (for himself and Mr. GRA- if we were to fail, and we have some- (B) other agreements of the Organization HAM) submitted the following resolu- thing to work on. for the Security and Cooperation of Europe; tion; which was considered and agreed (2) guarantee human rights and fundamen- to: I simply think everybody knows tal freedoms, including freedom of the press, S. Res. 66 there are a lot of possibilities of work- assembly, and expression; and ing a budget together this year because (3) guarantee separation of powers. Whereas the University of Florida can trace its beginnings to 1853 but was formally there are many Republicans and Demo- SEC. 2. SUPPORT OF INDEPENDENCE. established by the State of Florida when It is the policy of the United States to sup- crats who are looking seriously at Florida Agricultural College merged with port the people of Belarus in— ways to put something together that East Florida Seminary, South Florida Mili- (1) maintaining independent statehood; does do some difficult things, that is tary College, and St. Petersburg Normal & (2) promoting the rule of law, human not just a skirting over the difficulties, Industrial School in 1905; rights, and fundamental freedoms; and Whereas the University of Florida adopted and is saying, let us do some things (3) assuring that Belarus has the oppor- the colors of orange and blue for its athletic that have real long-term impact and as tunity to survive as an equal and full-fledged team in 1905 and the alligator as the school’s you, I say to the Senator, have so elo- member-state among the sovereign nations mascot in 1908; quently said, something we can all be of the world. Whereas the origins of intercollegiate foot- proud of that really does the job. Mr. LAUTENBERG. Mr. President, ball at the University of Florida can be That is my goal. I will try as best I today I am submitting a concurrent traced back to 1901, when Dr. T.H. can in the next few weeks. And, again, resolution regarding Belarus. I am Taliaferro, president of the Florida State Ag- subject to the frailties of partisanship pleased that Senator D’AMATO is an ricultural College, enthusiastically endorsed and things that can happen that you original cosponsor of this concurrent the new sport of football and by that deed ensured that the University of Florida know nothing about, I said I thought resolution. Representative PALLONE Fightin’ Gator football team exists today; there was a probability we could reach has submitted a similar measure in the Whereas the University of Florida is a an agreement with the President, bi- House of Representatives. founding member of the Southeastern Con- partisan, that many Senators would I am deeply concerned about events ference, considered by many to be the tough- like. in Belarus and the effort by President est conference in college football; March 20, 1997 CONGRESSIONAL RECORD — SENATE S2719

Whereas the students, alumni, and friends the 1996 University of Florida Fightin’ Gator S. RES. 68 of the University of Florida are to be com- football team and invite the team to Wash- Whereas the United States has fought in mended for the dedication, enthusiasm, and ington, D.C. for the traditional White House many wars; admiration they share for the Fightin’ Gator ceremony held for national championship football team; teams; and Whereas thousands of members of the Whereas in 1990, Stephen Orr Spurrier, the (4) directs the Secretary of the Senate to Armed Forces of the United States who most fabled football player in the history of make available enrolled copies of this resolu- served in such wars were captured by the the University of Florida and winner of the tion to the University of Florida for appro- enemy and held as prisoners of war; Heisman Trophy in 1966, was hired to be the priate display and to transmit an enrolled Whereas many prisoners of war were sub- head football coach to lead the team to the copy to each member of the 1996 University jected to brutal and inhumane treatment by ever elusive ‘‘Year of the Gator’’; of Florida Division I collegiate national their captors in violation of international Whereas in 1992, Coach Spurrier and his as- championship football team. codes and customs for the treatment of pris- sistant coaches recruited a group of talented f oners of war and died, or were disabled, as a athletes who went on to form the nucleus of result of the treatment; and the 1996 football team; SENATE RESOLUTION 67—TO Whereas the great sacrifices of the pris- Whereas the 1996 Fightin’ Gator football AUTHORIZE A PRINTING oners of war and their families deserve na- team compiled a record of 12 wins and 1 loss Mr. CRAIG (for himself and Mr. REID) tional recognition: Now, therefore, be it and outscored their opponents by a margin Resolved, That the Senate— of 611 points to 221 points, and for this submitted the following resolution; achievement the Fightin’ Gator football which was considered and agreed to: (1) designates April 9, 1997, and April 9, team was recognized by the Associated Press S. RES. 67 1998, as ‘‘National Former Prisoner of War Recognition Day’’ in honor of the members and the Division I college football coaches as Resolved, college football’s 1996 Division I national of the Armed Forces of the United States SECTION 1. PRINTING OF THE HISTORY MANU- who have been held as prisoners of war; and champions; SCRIPT OF THE REPUBLICAN POL- Whereas the 1996 Fightin’ Gators football ICY COMMITTEE IN COMMEMORA- (2) requests that the President issue a team and coaches are to be commended for TION OF ITS 50TH ANNIVERSARY. proclamation calling on the people of the winning the school’s first Division I colle- (a) IN GENERAL.—There shall be printed as United States to commemorate this day with giate football national championship. a Senate document the book entitled, ‘‘A appropriate ceremonies and activities. History of the Senate Republican Policy Whereas the 1996 Fightin’ Gator football Mr. SPECTER. Mr. President, I am team broke several school, Southeastern Committee, 1947–1997,’’ prepared by the Sen- Conference, and Division I football records ate Historical Office under the supervision of pleased to submit a resolution which during the 1996 football season; the Secretary of the Senate, with the con- would recognize the service and dedica- Whereas the 1996 senior class of Fightin’ currence of the United States Senate Repub- tion of America’s former prisoners of Gator football team should be commended lican Policy Committee. war [POW’s]. The resolution would des- for their leadership and their ‘‘team first’’ (b) SPECIFICATIONS.—The Senate document ignate April 9, 1997, and April 9, 1998, as approach that helped win the 1996 Division I described in subsection (a) shall include il- National Former Prisoner of War Rec- Collegiate football national championship, 4 lustrations and shall be in the style, form, ognition Day. April 9 is the anniver- consecutive Southeastern Conference foot- manner, and binding as directed by the Joint ball championships, and the most victories Committee on Printing after consultation sary of the fall of Bataan in 1942. On for a senior class in school history; with the Secretary of the Senate. that day more Americans became Whereas Danny Wuerffel, the team’s quar- (c) NUMBER OF COPIES.—In addition to the POW’s than any other day in our his- terback, field leader, and spiritual leader usual number of copies, there shall be print- tory. should be commended for winning numerous ed with suitable binding the lesser of— Every American who wears the uni- (1) 1,000 copies for use of the Senate, to be awards and accolades for his performance form of our country makes a unique during the 1996 football season including the allocated as determined by the Secretary of Heisman Trophy, which is presented yearly the Senate; or commitment of service and duty to our to college football’s most outstanding play- (2) a number of copies that does not have a country and to our fellow citizens. Per- er, and the Draddy Scholarship Trophy, total production and printing cost of more haps no American veterans have been which is presented annually to the Nation’s than $1,200. called upon to honor their commitment premier football scholar athlete; SEC. 2. PRINTING OF THE HISTORY MANUSCRIPT to our country under circumstances Whereas Lawrence Wright, the team’s OF THE DEMOCRATIC POLICY COM- more difficult than those endured by strong safety, should be commended for win- MITTEE IN COMMEMORATION OF ITS 50TH ANNIVERSARY. our former POW’s. For many, their ex- ning the prestigious Jim Thorpe Award, perience was one of malnutrition, tor- which is presented yearly to college foot- (a) IN GENERAL.—There shall be printed as ball’s most outstanding defensive back; a Senate document the book entitled, ‘‘A ture, and nonexistent medical care, Whereas Reidel Anthony, one of the team’s History of the Senate Democratic Policy combined with the burden of watching clutch wide receivers, should be commended Committee, 1947–1997,’’ prepared by the Sen- comrades die under terrible conditions. for being selected by both the Football Writ- ate Historical Office under the supervision of Even under the best possible condi- ers Association and the Associated Press to the Secretary of the Senate, with the con- currence of the United States Senate Demo- tions, the POW experience places their respective college football All-Amer- American service members in the posi- ican teams; cratic Policy Committee. Whereas Ike Hilliard, another of the team’s (b) SPECIFICATIONS.—The Senate document tion of being dependent upon our Na- deep threats at wide receiver, should be com- described in subsection (a) shall include il- tion’s enemies for every scrap of food, mended for being selected by the Walter lustrations and shall be in the style, form, every bandage, every human need. In Camp Football Foundation as a member of manner, and binding as directed by the Joint such circumstances, the reward for its college football All-American team; Committee on Printing after consultation treason, or even cooperation, is high. Whereas all the loyal sons and daughters of with the Secretary of the Senate. (c) NUMBER OF COPIES.—In addition to the The penalty for resistance and loyalty the University of Florida join together in is immediate, frequently painful and honoring Coach Spurrier and the 1996 Florida usual number of copies, there shall be print- Fightin’ Gators for winning the 1996 NCAA ed with suitable binding the lesser of— sometimes fatal. This resolution recog- Division I football championship; and (1) 1,000 copies for use of the Senate, to be nizes the sacrifice and loyalty of the Whereas the 1996 season will be known for- allocated as determined by the Secretary of POW’s who maintained their commit- ever in the hearts and minds of the Univer- the Senate; or ment of service to our country. In so sity of Florida faithful as the ‘‘Year of the (2) a number of copies that does not have a doing, it helps fulfill the duty we have Gator’’: Now therefore, be it total production and printing cost of more than $1,200. to former POW’s, derived from their Resolved, That the Senate— faithful discharge of duty to our na- (1) commends the University of Florida for f winning the 1996 Division I collegiate foot- tion. ball national championship; SENATE RESOLUTION 68—DES- Mr. President, this resolution com- (2) recognizes the achievements of all the IGNATING ‘‘NATIONAL FORMER memorates the service of former POW’s players, coaches, and support staff who were PRISONER OF WAR RECOGNITION who sustained their commitment to instrumental in helping the University of DAY’’ our country under circumstances that Florida win the 1996 Division I collegiate Mr. SPECTER (for himself, Mr. few of us can imagine, and none would football national championship and invites them to the Capitol to be honored in an ap- AKAKA, and Mr. SMITH of New Hamp- willingly endure. I ask this body to propriate manner to be determined; shire) submitted the following resolu- honor the memory of those who have (3) requests that the President recognize tion; which was considered and agreed already died and express our gratitude the accomplishments and achievements of to: to those still alive. S2720 CONGRESSIONAL RECORD — SENATE March 20, 1997 AMENDMENTS SUBMITTED laundering in the banking and financial sec- prevention and elimination of their activi- tors of Mexico and has sought United States ties, the prosecution or extradition and in- assistance in these areas. carceration of their leaders, and the seizure MEXICO CERTIFICATION JOINT (9) The Government of Mexico has recently of their assets. RESOLUTION approved, but has yet to implement fully, (B) The development and strengthening of new and more effective legislation against permanent working relationships between organized crime and money laundering. the United States and Mexico law enforce- COVERDELL (AND OTHERS) (10) The Government of the United States ment agencies, with particular reference to AMENDMENT NO. 25 and the Government of Mexico are engaged law enforcement directed against drug traf- in bilateral consideration of the problems of ficking and related crimes, including full Mr. COVERDELL (Mrs. FEINSTEIN, illicit drug production, trafficking, and funding and deployment of the Binational Mr. HELMS, Mrs. HUTCHISON, Mr. abuse through the High Level Contact Group Border Task Forces as agreed upon by both MCCAIN, Mr. DOMENICI, Mr. KERRY, Mr. on Drug Control established in 1996. governments. DODD, Ms. MOSELEY-BRAUN, and Ms. (11) The President of Mexico has declared (C) The strengthening of bilateral border LANDRIEU) proposed an amendment to that drug trafficking is the number one enforcement, including more effective the joint resolution (H.J. Res. 58) dis- threat to the national security of Mexico. screening for and seizure of contraband. approving the certification of the (12) In December 1996, the Government of (D) The denial of safe havens to persons the United States and the Government of and organizations responsible for drug traf- President under section 490(b) of the Mexico joined with the governments of other ficking and related crimes and the improve- Foreign Assistance Act of 1961 regard- countries in the Western Hemisphere to seek ment of cooperation on extradition matters ing foreign assistance for Mexico dur- to eliminate all production, trafficking, and between both countries. ing fiscal year 1997; as follows: abuse of drugs and to prevent money laun- (E) The simplification of evidentiary re- Strike all after the resolving clause and in- dering. quirements for narcotics crimes and related sert the following: (13) Section 101 of division C of the Omni- crimes and for violence against law enforce- SECTION 1. REPORT REQUIREMENT. bus Consolidated Appropriations Act, 1997 ment officers. (a) FINDINGS.—Congress makes the follow- (Public Law 104–208) requires the Attorney (F) The full implementation of effective ing findings: General to increase the number of positions laws and regulations for banks and other fi- (1) The abuse of illicit drugs in the United for full-time, active-duty patrol agents with- nancial institutions to combat money laun- States results in 14,000 deaths per year, has in the Immigration and Naturalization Serv- dering, including the enforcement of pen- inordinate social consequences for the Unit- ice by 1,000 per year through the year 2001. alties for non-compliance by such institu- ed States, and exacts economic costs in ex- (14) The proposed budget of the President tions, and the prosecution of money cess of $67,000,000,000 per year to the Amer- for fiscal year 1998 includes a request for 500 launderers and seizure of their assets. ican people. such agents. (G) The eradication of crops destined for il- (2) An estimated 12,800,000 Americans, rep- (15) Drug cartels continue to operate with licit drug use in Mexico and in the United resenting all ethnic and socioeconomic impunity in Mexico, and effective action States in order to minimize and eventually groups, use illegal drugs, including 1,500,000 needs to be taken against Mexican drug traf- eliminate the production of such crops. users of cocaine. Further, 10.9 percent of ficking organizations, particularly the (H) The establishment and implementation Americans between 12 and 17 years of age use Juarez and Tijuana cartels. of a comprehensive screening process to as- illegal drugs, and one in American four chil- (16) While Mexico has begun to extradite sess the suitability and financial and crimi- dren claim to have been offered illegal drugs its citizens for the first time and has cooper- nal background of all law enforcement and in the past year. Americans spend approxi- ated by expelling or deporting major inter- other officials involved in the fight against mately $49,000,000,000 per year on illegal national drug criminals, United States re- organized crime, including narcotics traf- drugs. quests for extradition of Mexican nationals ficking. (3) There is a need to continue and inten- indicted in United States courts on drug-re- (I) The rendering of support to Mexico in sify anti-drug education efforts in the United lated charges have not been granted by the its efforts to identify, remove, and prosecute States, particularly education directed at Government of Mexico. corrupt officials at all levels of government, the young. (17) Cocaine seizures and arrests of drug including law enforcement and military offi- (4) Significant quantities of heroin, traffickers in Mexico have dropped since cials. methamphetamines, and marijuana used in 1992. (J) The augmentation and strengthening of the United States are produced in Mexico, (18) United States law enforcement agents bilateral cooperation. and a major portion of the cocaine used in operating in Mexico along the United States (2) The extent of any significant and de- the United States is imported into the Unit- border with Mexico must be allowed ade- monstrable progress made by the Govern- ed States through Mexico. quate protection. ment of the United States during the period (5) These drugs are moved illegally across (b) SENSE OF CONGRESS ON COOPERATION ON beginning on March 1, 1997, and ending on the border between Mexico and the United DRUGS BY COUNTRIES IN THE WESTERN HEMI- the date of the report in— States by major criminal organizations, SPHERE.—It is the sense of Congress to urge (A) implementing a comprehensive anti- which operate on both sides of that border the President, in his official visits in the drug education effort in the United States Western Hemisphere, to examine with lead- and maintain the illegal flow of drugs into targeted at reversing the rise in drug use by ers of governments of other countries in the Mexico and the United States. America’s youth; Western Hemisphere the effectiveness of ef- (6) There is evidence of significant corrup- (B) implementing a comprehensive inter- forts to improve counterdrug activities in tion affecting institutions of the Govern- national drug interdiction and enforcement order to curtail the production, traffic, and strategy; and ment of Mexico (including the police and abuse of illicit drugs, and to define plans for military), including the arrest in February (C) deploying 1,000 additional active-duty, specific actions to improve cooperation on full-time patrol agents within the Immigra- 1997 of General Jesus Gutierrez Rebollo, the such activities, including consideration of a head of the drug law enforcement agency of tion and Naturalization Service in fiscal coordinated multilateral alliance. year 1997 as required by section 101 of divi- Mexico, for accepting bribes from senior (c) SENSE OF CONGRESS OF PROGRESS IN sion C of the Omnibus Consolidated Appro- leaders of the Mexican drug cartels. In 1996, HALTING PRODUCTION AND TRAFFIC OF DRUGS priations Act, 1997 (Public Law 104–208). the Attorney General of Mexico dismissed IN MEXICO.—It is the sense of Congress that more than 1,200 Mexico federal law enforce- there has been ineffective and insufficient f ment officers in an effort to eliminate cor- progress in halting the production in and ruption, although some were rehired and transit through Mexico of illegal drugs. none has been successfully prosecuted for (d) REPORT TO CONGRESS.—Not later than AUTHORITY FOR COMMITTEES TO corruption. In the United States, some law September 1, 1997, the President shall submit MEET enforcement officials may also be affected by to Congress a report describing the follow- corruption. ing: COMMITTEE ON AGRICULTURE, NUTRITION, AND (7) The success of efforts to control illicit (1) The extent of any significant and de- FORESTRY drug trafficking depends on improved coordi- monstrable progress made by the Govern- MR. LOTT. Mr. President, I ask nation and cooperation between Mexico and ment of the United States and the Govern- unanimous consent that the Commit- United States drug law enforcement agencies ment of Mexico, respectively, during the pe- tee on Agriculture, Nutrition, and For- and other institutions responsible for activi- riod beginning on March 1, 1997, and ending estry be allowed to meet during the ties against illicit production, traffic and on the date of the report in achieving the fol- session of the Senate on Thursday, abuse of drugs, particularly in the common lowing objectives relating to counterdrug co- March 20, 1997, at 9 a.m. in SR–328A to border region. operation: (8) The Government of Mexico recognizes (A) The investigation and dismantlement receive testimony regarding agri- that it must further develop the institu- of the principal organizations responsible for culture research reauthorization. tional financial regulatory and enforcement drug trafficking and related crimes in both The PRESIDING OFFICER. Without capabilities necessary to prevent money Mexico and the United States, including the objection, it is so ordered. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2721 COMMITTEE ON ARMED SERVICES COMMITTEE ON THE JUDICIARY ADDITIONAL STATEMENTS Mr. LOTT. Mr. President, I ask unan- Mr. LOTT. The Committee on the Ju- imous consent that the Committee on diciary would request unanimous con- ROLLOUT OF THE F–22 Armed Services be authorized to meet sent to hold an executive business at 10 a.m. on Thursday, March 20, 1997, meeting on Thursday, March 20, 1997, Mrs. HUTCHISON. Mr. President, on in open session, to receive testimony at 10:30 a.m., in room 226 of the Senate April 9, 1997, an important milestone on the fiscal year 1998 budget request Dirksen Office Building. will be reached when the Lockheed for Department of Energy national se- Martin Corp. rolls out the F–22 in Mari- curity programs and review environ- The PRESIDING OFFICER. Without etta, GA. The F–22 is a powerful new mental management activities. objection, it is so ordered. aircraft that will ensure complete and The PRESIDING OFFICER. Without COMMITTEE ON LABOR AND HUMAN RESOURCES total air dominance for the United objection, it is so ordered. States in the 21st century. Mr. LOTT. Mr. President, I ask unan- How do you measure success in air COMMITTEE ON ENERGY AND NATURAL imous consent that the Committee on RESOURCES superiority. The best measure I know Labor and Human Resources be author- Mr. LOTT. Mr. President, I ask unan- is reflected in the fact that no U.S. sol- ized to meet for a hearing on Higher imous consent that the Committee on dier has been killed by an enemy air- Education Act reauthorization, during Energy and Natural Resources be craft in over 40 years. And that is why the session of the Senate on Thursday, granted permission to meet during the the F–22 is critical at this time, for the March 20, 1997, at 10 a.m. session of the Senate on Thursday, F–22 ensures that impressive record of March 20, for purposes of conducting a The PRESIDING OFFICER. Without protecting our forces continues unbro- Subcommittee on National Parks, His- objection, it is so ordered. ken. There are some who fail to under- toric Preservation, and Recreation COMMITTEE ON RULES AND ADMINISTRATION hearing which is scheduled to begin at stand that the threat to our air forces Mr. LOTT. Mr. President, I ask unan- 2 p.m. The purpose of this oversight is growing and that the world remains imous consent that the Committee on hearing is to address the future of the dangerous despite the end of the cold Rules and Administration be author- National Park System and to identify war. Throughout the world today there ized to meet during the session of the and discuss needs, requirements and in- are a host of Russian-made surface-to- Senate on Thursday, March 20, 1997, be- novative programs that will insure the air missiles readily available on the ginning at 9:30 a.m. until business is Park Service will continue to meet its open market to any nation with the completed, to hold an oversight hear- many responsibilities well into the money available to buy them. At the ing on the operations and budget of the next century. same time, a new generation of tac- The PRESIDING OFFICER. Without Congressional Research Service and tical fighter is also being produced in objection, it is so ordered. the Library of Congress. Russia and elsewhere which can out COMMITTEE ON ENVIRONMENT AND PUBLIC The PRESIDING OFFICER. Without perform and defeat our current air su- WORKS objection, it is so ordered. periority fighter, the F–15C. All of these pose significant threats to our Mr. LOTT. Mr. President, I ask unan- COMMITTEE ON VETERANS’ AFFAIRS imous consent that the full Committee ability to maintain air superiority. on Environment and Public Works be Mr. LOTT. The Committee on Veter- The F–22 will ensure that America granted permission to meet to consider ans’ Affairs would like to request unan- maintains not just air superiority but the nominations of Johnny H. Hayes, imous consent to hold a joint hearing air dominance. And as the former Sec- nominated by the President to be a with the House Committee on Veter- retary of Defense William Perry once member of the board of directors of the ans’ Affairs to receive the legislative said ‘‘everything else we do depends on Tennessee Valley Authority; Judith M. presentation of AMVETS, American air dominance. Mr. President, I am pleased to note Espinosa, nominated by the President Ex-Prisoners of War, Veterans of World that the rollout on April 9 will mark to be a member of the board of trustees War I, and the Vietnam Veterans of the beginning of a new era for Air of the Morris K. Udall Scholarship and America. The hearing will be held on Force aviation. As a Texan, I am also Excellence in National Environmental March 20, 1997, at 9:30 a.m., in room 345 proud of the role America’s premier Policy Foundation; and D. Michael of the Cannon House Office Building. tactical fighter complex in Fort Worth, Rappoport, nominated by the President The PRESIDING OFFICER. Without TX played in building this revolution- objection, it is so ordered. to be a member of the board of trustees ary aircraft. of the Morris K. Udall Scholarship and SUBCOMMITTEE ON FINANCIAL INSTITUTIONS I hope my colleagues will take notice Excellence in National Environmental of the rollout in a year which marks Policy Foundation Thursday, March 20, Mr. LOTT. Mr. President, I ask unan- imous consent that the Subcommittee the 50th anniversary of our Air Force. after the first Senate floor vote or at a I also hope my colleagues will take this time to be determined Thursday, on Financial Institutions of the Com- mittee on Banking, Housing, and opportunity to reflect on the impor- March 20, in 406 Dirksen. tance of our Air Force and the role The PRESIDING OFFICER. Without Urban Affairs be authorized to meet during the session of the Senate on they have played since their founding objection, it is so ordered. 50 years ago in maintaining peace and Thursday, March 20, 1997, to conduct a COMMITTEE ON FINANCE stability in a dangerous world. The hearing to examine the Federal Re- Mr. LOTT. Mr. President, the Fi- rollout of the F–22 will begin a new serve’s proposal to modify the ‘‘fire- nance Committee requests unanimous chapter in Air Force history and help walls’’ that separate commercial banks consent to conduct a hearing on Thurs- ensure the Air Force and the country and their securities affiliates. day, March 20, 1997, beginning at 10 remains strong and capable in the fu- a.m. in room 215 Dirksen. The PRESIDING OFFICER. Without ture. The PRESIDING OFFICER. Without objection, it is so ordered. f objection, it is so ordered. SUBCOMMITTEE ON SURFACE TRANSPORTATION GREEK INDEPENDENCE DAY COMMITTEE ON GOVERNMENTAL AFFAIRS AND MERCHANT MARINE Mr. LOTT. Mr. President, I ask unan- ∑ Mr. SARBANES. Mr. President, I rise imous consent on behalf of the Govern- Mr. LOTT. Mr. President, I ask unan- today to pay tribute to the Greek peo- mental Affairs Committee to meet on imous consent that the Surface Trans- ple on the 176th anniversary of the be- Thursday, March 20, 1997, at 9:30 a.m. portation and Merchant Marine Sub- ginning of their struggle for independ- for a hearing on the role of the Depart- committee of the Senate Committee on ence. Since regaining their freedom ment of Commerce in the U.S. trade Commerce, Science, and Transpor- and reaffirming their commitment to policy, promotion and regulation, and tation be authorized to meet on Thurs- democratic principles, the Greek peo- opportunities for reform and consolida- day, March 20, 1997, at 9:30 a.m. on ple have built a modern-day republic tion. ocean shipping reform. that is a strong and positive presence The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without in the Balkans and eastern Mediterra- objection, it is so ordered. objection, it is so ordered. nean. S2722 CONGRESSIONAL RECORD — SENATE March 20, 1997 As the only member of the European I was gratified to see it approved by COST OF UNITED STATES Union from the region, Greece has the Senate last week. Emotionally and INVOLVEMENT IN BOSNIA played a stabilizing role in the area philosophically, Greece has remained Mr. FEINGOLD. Mr. President, I rise and helped advance its neighbors’ near the hearts and minds of Ameri- today to speak about the escalating progress toward political and economic cans since this Nation was founded. costs of the United States involvement security. Greece’s own efforts to con- President James Monroe aptly sum- in Bosnia. tinue the modernization of its economy marized these feelings in 1822, observ- Recently, I asked the administration and its steadfast defense of democratic ing: ‘‘The mention of Greece fills the representatives for a ballpark estimate governance are critical to the pro- mind with the most exalted sentiments of the expected cost to the United motion of democracy and stability in and arouses in our bosom the best feel- States taxpayer of the American oper- neighboring lands. ings of which our nature is suscep- ation in Bosnia. On March 25, Greece will commemo- tible.’’ Mr. President, more than inspi- I was astonished to hear that admin- rate the beginning of its quest for inde- ration, Greece today has a very impor- istration estimates have been revised pendence from four centuries of Otto- tant and tangible role to play in the to $6.5 billion. man rule. After nearly 10 years of democratic progress of its own region. Six-point-five billion dollars. To put struggle against tremendous odds, the I have no doubt that Greece is up to that in perspective, we were originally Greek people secured liberty for their the task.∑ told that the Bosnia mission would homeland and reaffirmed the individ- cost the United States taxpayer some ual freedoms that are at the heart of f $2 billion. Later, the estimate was re- their tradition. vised to $3 billion. Now, it has risen to From the beginning of their revolu- THE 25TH ANNIVERSARY OF THE a staggering $6.5 billion. tion, the Greeks had the support—both ESTABLISHMENT OF THE FIRST Mr. President, the cost has now risen material and emotional—from a people NUTRITION PROGRAM UNDER more than threefold since the original who had only recently gained freedom THE OLDER AMERICANS ACT estimates we were given. That is equal for themselves; the Americans. And to just over half of the entire foreign since then, our two nations have re- ∑ Mr. JEFFORDS. Mr. President, on operation budget for fiscal 1997 which mained firmly united by shared beliefs Saturday, March 22, our Nation will is about $12.2 billion. in democratic principles and mutual commemorate the 25th anniversary of Let me review what has happened understanding of the sacrifices entailed the establishment of the national nu- here. In late 1995, when the administra- in establishing a republic. trition programs for the elderly under tion negotiated the United States As a nation whose founders were ar- the Older Americans Act. Since their troop commitment outlined by the dent students of the classics, America inception, these programs have bene- Dayton accords, the administration has drawn its political convictions fited thousands of our Nation’s elderly came to the Congress with an estimate from the ancient Greek ideals of lib- by providing home-delivered and col- for United States troop participation erty and citizenship. And just as we lective meals to those elderly facing in the NATO Peace Implementation looked to the Greeks for inspiration, serious challenges and limitations, in- Force in Bosnia, commonly referred to Greek patriots looked to the American cluding economic hardship, physical as IFOR. According to information pro- Revolution for strength in the face of and health limitations, and rural isola- vided to my office by the Office of the their own adversity. tion. Secretary of Defense [OSD], this initial Since their liberation, the Greek peo- The elderly’s ability to obtain meals estimate of $2 billion was generated ple have never taken their liberty for under the Older Americans Act was using a force deployment model based granted. In both World Wars, Greece originally limited to meal sites, where on experience in Desert Storm and So- never wavered from its commitment to groups of elderly can congregate for a malia * * * [although] the types of the United States and the other allied meal during the day. Following several forces, deployment schedules, field con- nations to resist the forces of totali- successful years of service, nutrition ditions, and security situation had not tarianism. Faced with a Communist programs expanded to serve the home- been determined.’’ Once troops were de- uprising after World War II, Greece re- bound elderly. Also, the parameters of ployed to Bosnia, new information ceived support from President Truman the Older Americans Act were extended about the field conditions became and the American people, who helped to allow Area Agencies on Aging to in- available and pushed the original esti- the Greeks rebuild their war-ravaged form the elderly on how to obtain nu- mate up by about 50 percent. nation. trition education, counseling, and As I understand it, unexpected and Along with our shared values and tra- screening. Nutritional services have adverse weather conditions, including ditions, Greece and America share a proven to be critical for a significant major floods, further complicated the bond by virtue of those individuals who population of the elderly who can con- operation—delaying the establishment have remained devoted to the ideals of tinue to maintain a healthy, independ- of land routes and altering placement both countries. The Greek-American ent lifestyle. of planned camp sites. According to the community, which maintains an espe- Through this program, Vermont’s Defense Department, additional re- cially close relationship with Greece, five Area Agencies on Aging contract serves were also required to back fill also consistently makes significant with various local nutrition service for troops that had been deployed to contributions to American culture, providers to expedite the delivery of the region. business, and history. Truly, it is a meals to people’s homes and continue Further refinements of the cost esti- community that enriches our life at to coordinate meals provided in con- mate were again made in July 1996, home while strengthening our ties gregate settings. Federal grants pro- when the Defense Department recog- abroad. vided for our country’s nutrition pro- nized the need for additional moneys— At this time last year, First Lady grams fill resource gaps where non- to the tune of almost $310 million—for Hillary Clinton was in Greece. Her visit profit and State organizations cannot. pulling out heavy armored forces and was followed by a meeting here in Twenty-five years following the first replacing them with military police, as Washington between Greek Prime Min- meal served in the early 1970’s, 242 mil- well as additional communications re- ister Kostandinos Simitis and Presi- lion meals have been provided to 3.5 quirements. A new total cost estimate dent Clinton, which laid the foundation million of our Nation’s elderly. Since of $3.2 million for operations through for even stronger Greek-American rela- taking office in the House of Rep- the end of 1996—that is, for approxi- tions in the future, and the broadening resentatives in 1975, I am proud to have mately one full year—was provided to of existing ties into new arenas. been a steadfast supporter of these nu- congressional staff in July. This year, I was proud to cosponsor trition programs. They are a wonderful The conditions that led to these re- Senate Resolution 56, designating example of the Federal Government’s finements also helped throw the time March 25, 1997, as ‘‘Greek Independence successful contribution to improving line for the 1-year mission out of Day: A National Day of Celebration of the lives of our Nation’s senior citi- whack. So, no one could have really Greek and American Democracy,’’ and zens.∑ been surprised by the announcement March 20, 1997 CONGRESSIONAL RECORD — SENATE S2723 last October—just as the Congress was dicted war criminals are continuing for good people and has been recognized preparing to take its long recess—that signs that the progress of American for many of her efforts with awards, ti- the United States had decided to dis- troop presence is transitory at best. tles, honors, and tributes. patch additional troops to Bosnia. The At the heart of the conflict is that Hattie was born on April 25, 1897 in new deployment of an additional 5,000 the strategic political goals of the war- Rochester and has lived there all of her troops was to be part of a new mis- ring factions remain unchanged. Peace life. She had to leave school at the ten- sion—the one we now call SFOR, or in the region appears to be achievable, der age of 11 and become a buttonhole NATO stabilization force—and would unfortunately, only at the point of maker to earn money and help support last 18 months, through June 1998. NATO arms. the family. As a child she never had a The extension of the U.S. mission in Mr. President, I now fear that, come birthday party, her toys and clothes the region, of course, required a new next June, when the SFOR mission is were second-hand. All her life she has cost estimate. Using actual costs to expected to end, and after we will have done all she can so other children will date, projected force levels for fiscal invested $6.5 billion, there is a real get the chances she never did. She has year 1997 and for fiscal year 1998, and danger that we will be back at square endowments bearing her name at Mon- expected operating costs, the Defense one. roe Community College, St. John Fish- Department now says that total costs I hope that the lesson learned from er College, Mary Cariola Children’s for the operation are expected to be Bosnia is that we should not make Center, and Campership Fund for $6,512,000,000. commitments of United States re- Needy Children. Mr. President, when Congress was sources, be they military, humani- Hattie is a wonderful human being first consulted about the Bosnia oper- tarian, or otherwise, without a candid whose outstanding lifelong humani- ation back in 1995, I asked whether or assessment of the likely level and du- tarian achievements deserve special not the United States would be able to ration of the commitment. While it is recognition from each of us. Happy withdraw troops from IFOR in Decem- clear that there were sound, military birthday Hattie Harris.∑ ber 1996, as the administration said reasons for upping the financial projec- f then, even if the mission clearly had tions for U.S. participation in both not been successful. I had my doubts IFOR and SFOR, I can not believe that TRIBUTE TO JUDGE CHARLES R. then that the stated goal—ending the the original estimate was as candid of RICHEY fighting and raising an infrastructure an assessment as we could have had, ∑ Mr. HOLLINGS. Mr. President, I re- capable of supporting a durable peace— even that early in the process. spectfully rise today and ask that we would be achievable in 12 months’ We are told that U.S. troops will fin- pay tribute to Judge Charles R. time. I foresaw a danger that condi- ish their mission next June. But that Richey. tions would remain so unsettled that it begs a question: What certainty is Today the flags in front of the would then be argued that it would be there that even this promise will be Thurgood Marshall Judiciary Building folly—and waste—to withdraw on kept? I fear, as I did when the United fly at half-mast in mourning for Judge schedule. States first committed 20,000 ground Richey. Charles Richey was a great My concerns and hesitations of Octo- troops, that there is no easy way out of man and a superlative judge. We join in ber 1995 were only compounded by the this situation. The cost of U.S. involve- the loss with his wife, Mardelle, and his October 1996 announcement that addi- ment continues to rise. And troops, sons, Charles and William. tional troops were being deployed to from my State and from throughout Judge Richey, despite his lofty status Bosnia, and compounded further in No- the Nation, continue to be deployed. in the courts, always considered him- vember 1996 when it became clear that When will it end, Mr. President. self a man of the people and he consist- the mission was being extended for an When will it end? ently defied the labels of conservative additional 18 months. At the very time we are straining and liberal. His public career began In my view, the handwriting has been hard to eliminate the Federal deficit, when he came to Washington as a legis- on the wall for some time now. the dollars continue to pour out of our lative counsel to Representative As many in this Chamber will recall, Treasury. The cost of this excursion Frances Payne Bolton from Ohio. Later I was one of the few Members of Con- goes on and on.∑ he was appointed general counsel for gress, and the only Democrat, to vote f the Maryland Public Service Commis- against the initial deployment of sion during Spiro Agnew’s last years as troops in 1995. At that time, I ques- HATTIE H. HARRIS, A CREDIT TO Governor. He was appointed to the Fed- tioned the projections regarding the OUT COUNTRY AND OUR FLAG eral bench by President Nixon in 1971. duration and cost of the mission. ∑ Mr. D’AMATO. Mr. President, one of In 1979, the American Trial Lawyers What I feared then has happened. The our Nation’s most outstanding citizens Association voted Judge Richey Out- United States continues to be drawn Mayor Hattie H. Harris will celebrate standing Federal Trial Judge. He was deeper into a situation from which we her 100th birthday April 25, 1997, God one of the busiest judges in the Wash- appear unable to extricate ourselves. willing. For nearly one century ington U.S. District Court and ran a The war in Vietnam was called a quag- Hattie’s unimpeachable integrity, bril- tight ship in the courtroom. He was a mire. We referred to continued United liant mind, and inconquerable spirit firm believer in swift justice and had States troop deployment in Somalia as have dominated the scene in Rochester, the most up-to-date docket on the cir- mission creep. I fear that the Bosnia NY. She courageously faces each chal- cuit. operation presents the same dilemma. lenge and perpetually accomplishes Over the course of his career, Richey There will continue to reasons to en- worthy humanitarian deeds. Hattie handed down many landmark deci- courage continued U.S. military pres- consistently demonstrates that eternal sions, including one he loved to re- ence on the ground. Despite an original youth rules father time. Mayor count—his 1976 ruling that called in estimate of $2 billion, that presence is Hattie’s grueling schedule puts to the California tuna ships for violation now moving closer and closer to $7 bil- shame some persons half her age. of the Marine Mammal Protection Act. lion. Mayor Hattie’s unswerving devotion In that same year he also became the I recognize that the Bosnia mission to assisting mankind is a tribute to de- first judge to hold that employees who has not been without some positive re- mocracy’s dream. She embraces every are sexually harassed by their superi- sults. We can all be grateful that peo- request to inspire mankind: whether it ors can file under title VII of the Civil ple are no longer dying en masse in be delivering meals herself as chair- Rights Act of 1964. Bosnia and that United States and person of the 1995–6 Meals on Wheels Ever willing to take on the Govern- troops from other nations are to be ap- Program, or awarding scholarships ment on behalf of the little man, in plauded for having largely succeeded in from the endowment in her name, Hat- 1981, Richey awarded $6 million in back enforcing the military aspects of the tie is an exemplary humanitarian. She pay and $10 million in future earnings Dayton accords. But successive delays has received accolades and honors too for 324 women in the sex discrimination in holding municipal elections and the numerous to list here. Suffice it to say suit against the Government Printing lasting, and at-large, presence of in- that Hattie has done many good things Office, then the largest amount ever S2724 CONGRESSIONAL RECORD — SENATE March 20, 1997 awarded in a sex discrimination case. nesses and encourages, rather than in- partment of Mines and Minerals en- Perhaps the case most indicative of his hibits, growth, investment, and sav- force the laws at the No. 5 mine, before feeling for the citizens though was his ings. That should be our top priority. we have a dust explosion.’’ dismissal of charges against people That is our task for the coming But neither the governor nor Federal camped in protest in Lafayette ‘‘Pro- months and years. But until we can officials nor the Centralia Coal Co. test’’ Park. He said they were exercis- successfully meet that greater chal- took any significant action. Investiga- ing their rights under the First Amend- lenge, the very least we can do for the tors later determined that one of the ment. American taxpayer is to get the IRS main causes of the explosion was the Judge Richey’s courtesy in the court cleaned up and off the taxpayers’ dust the miners had feared. was legendary. He used gender-neutral backs. Three days after the disaster, Gov- terms when discussing certain statutes The time has come for tax relief. The ernor Green ordered State inspectors mentioning only men. Despite his own people of the United States have had to close all unsafe coal mines. In Wash- strict Methodist upbringing, he gave enough. They want less government, ington, Congress held hearings and witnesses options on oaths containing less regulation, and less taxes. And launched an investigation. But for no religious references and dispensing they want less hassle and harassment Centralia, IL, it was too late. with the Gideon Bible. One said of him, from their Government. The IRS Ac- As we near the 50th anniversary of ‘‘Judge Richey is tough as shoe leath- countability Act is a good start. As we this disaster, our thoughts are with the er, but fair minded almost to a fault.’’ approach tax day, April 15, it is only people of Centralia and the families of We shall all miss this man. He leaves appropriate that we take a bold step those who lost their lives. We are re- behind an unparalled judicial legacy toward fixing the IRS. minded that too often, we react to dis- and record of public service. The time for change is now. asters rather than taking steps to pre- f f vent them. INTERNAL REVENUE SERVICE THE 50TH ANNIVERSARY OF The greatest tribute we can give to ACCOUNTABILITY ACT CENTRALIA, IL, MINING DISASTER the Centralia mine explosion victims is to ensure that critical worker safety Mr. HAGEL. Mr. President, the Mr. DURBIN. Mr. President, I rise and health protections are not weak- American people are fed up with the today to memorialize 111 miners from ened or destroyed. We must be vigilant IRS and its tactics. They are calling the town of Centralia, IL, who died in our efforts to make sure workers for change. Today I have taken a first nearly 50 years ago on March 25, 1947, don’t risk their lives simply by going step to help. I am joining as a cospon- in one of the worst coal mining disas- to work.∑ sor of S. 365, the Internal Revenue ters in U.S. history. Service Accountability Act, which was On that day, 142 men were working in f introduced by my distinguished col- mine No. 5 of the Centralia Coal Co. JUNETEENTH INDEPENDENCE DAY league from Georgia, Senator Only a few minutes remained before COVERDELL. the end of their shift when there was ∑ Mr. ABRAHAM. Mr. President, I rise The IRS is in disarray from its top an explosion in the mine. The blast today to pledge my support for the management all the way down to its raced through the tunnels beneath the commemoration of June 19 as field offices, and American taxpayers town of Wamac on the southern edge of ‘‘Juneteenth Independence Day.’’ This are paying the price for that disarray— Centralia, leaving debris and poisonous day marks a significant occurrence in a price in inefficiency, in inconven- fumes in its wake. American history, a day every Amer- ience, in intrusiveness, and even in Thirty-one men managed to escape, ican should reflect upon and remember. harassment. It is not fair for American but 111 of their coworkers were trapped Mr. President, June 19 is a day when taxpayers to fund an agency that is 540 feet underground. For 4 days, rescu- all African-Americans were finally lib- wasting their money and time. It is ers worked to save them, but they erated from the bondage of slave- time to clean up the IRS. It is time for could not reach the miners in time. In owners. Although President Lincoln a change. a tragic discovery, the searchers found signed the revolutionary Emancipation The IRS Accountability Act puts a notes next to some of the miners’ bod- Proclamation on January 1, 1865, many tight rein on the IRS and its agents. It ies that they had written on scraps of slaves were still denied their lawful makes IRS agents personally account- paper and cardboard as they lay dying. freedom. It was not until June 19, 1865, able for their actions and subjects ‘‘Tell Dad to quit the mine and take that all slaveowners officially recog- them to criminal prosecution if they care of Mom,’’ wrote one miner. ‘‘Tell nized and abided by the dictates of the abuse their authority by harassing tax- baby and my loving boys good-bye and Emancipation Proclamation. payers. The bill makes it a crime to re- I am feeling weak. Lots of love.’’ To- For too many years, African-Ameri- lease information from tax returns gether, the men left behind 99 widows cans were denied basic rights and lib- without proper authority. It restricts and 76 children under the age of 18. erties that today all Americans enjoy. the ability of the IRS to conduct au- But the real tragedy for Centralia I stand here today, 132 years later, to dits. It ensures that the IRS will abide was that the disaster could have been express my view that this shameful as- by court decisions against it. And it prevented. As early as 1942—and con- pect of American history should never ensures that taxpayers have a chance tinuing right up to the time of the ex- be forgotten. For these reasons, I to correct any honest mistakes on plosion—State and Federal inspectors proudly endorse Senate Resolution 11. their tax forms without incurring a warned about dangerous conditions at This significant legislative endeavor penalty. the mine. In fact, when the blast oc- reminds every citizen of the unspeak- American taxpayers are honest, hard curred, the latest State and Federal re- able horrors to which many of our fel- workers. They do not deserve an over- ports were thumbtacked to a bulletin low Americans were subjected. It is my zealous agency with its agents tor- board outside the mine’s wash house. hope that every June 19 from this year menting and harassing them. It is time While the inspectors found numerous forward will be celebrated as to make the IRS more accountable for safety violations, they were particu- ‘‘Juneteenth Independence Day.’’ It its actions. larly concerned about the combustible also is my hope that this day will serve This bill is an important first step coal dust which was so thick that it as a reminder, of our past and a bridge toward protecting Americans from a would collect in the miners’ shoes as all of us can use to overcome our dif- Tax Code that is unfair, restrictive, pu- they worked. The miners themselves ferences and unite as Americans. nitive, and complicated. We need to do knew how dangerous the dust could be, Mr. President, I believe commemora- more. We need to completely overhaul and more than a year before the disas- tion of ‘‘Juneteenth Independence our Tax Code to make it flatter, fairer, ter, four of them sent a letter to Illi- Day’’ warrants support from all mem- and simpler. We need to look at all op- nois Gov. Dwight H. Green warning bers of the U.S. Senate. As a cosponsor tions as we tackle this issue, but we that it might explode one day. ‘‘This is of Senate Resolution 11, I urge my col- must make sure that a new Tax Code a plea to you,’’ they wrote, ‘‘to please leagues to join me in officially rec- eases the burden for families and busi- save our lives, to please make the De- ognizing this important day.∑ March 20, 1997 CONGRESSIONAL RECORD — SENATE S2725 LET’S DEBATE THE CHEMICAL The CWC was laboriously crafted of action, instead of an amendment to the WEAPONS CONVENTION over three decades to meet the security Constitution. A congressional statute put- ting greater controls over campaigns would ∑ Mr. FEINGOLD. Mr. President, I rise and economic interests of states par- ties. The United States was at the fore- have the same effect as an amendment with- today to add my voice to those who out the permanent encumbrance of the have spoken about the need to bring front of that effort; the treaty reflects amendment on matters unforeseen. the Chemical Weapons Convention U.S. needs and has the blessing and en- In some cases the courts have ruled that [CWC] to the Senate floor for debate at thusiastic support of our defense and specific laws limiting contribution limits in- the earliest possible date. As everyone business communities. fringe on free speech. It ought to be possible in this body knows, the U.S. Senate Can the treaty be improved? Of for a congressional statute to impose some must ratify the CWC by April 29, 1997, course. But the CWC has a provision sort of constraint on money without inter- in order for the United States to be- for amendment after it comes into fering with speech. The huge sums spent on campaigns may come an original party to the conven- force. I would hope that the United very well be considered immoral, but history tion. States would be again at the head of ef- has given ample illustrations of the futility To date, 70 countries have ratified forts to make the treaty more effective of trying to legislate morality. Prohibition the CWC, and another 161 countries are after a period to test its utility. We is a relatively recent example. Did it stop signatories. The United States has have the technological means and eco- people from consuming alcohol? No. In fact, taken a leadership role throughout the nomic weight to make it so. But only if it helped increase the power of law-breaking negotiations surrounding this treaty, we are a party to the treaty. And to be- organizations geared to providing illicit sub- and yet, with time running out, the come a party to the treaty, the U.S. stances, a baneful influence that is still with us. Senate has not voted on the document Senate must perform its constitu- that so many Americans have helped to The present spotlight in Washington on tionally mandated function of debate campaign contributions and the methods of craft. and ratification before April 29. solicitation for such funds makes it easy for Time is of the essence in this debate Mr. President, it is unfortunate that people to think an amendment to the Con- for several reasons. One reason is, of the Chemical Weapons Convention is stitution would be an appropriate response. course, the April 29 deadline by which being held hostage to other, unrelated, But however tawdry such actions have the U.S. Senate must ratify this treaty matters. Time is of the essence, Mr. been—and they certainly are tawdry—there so that the United States may be a full President, and time is running out. will be no change merely by passing an participant in the Organization for the amendment that says, in effect: ‘‘Thou shalt In closing, this treaty should be fully Prohibition of Chemical Weapons not be tawdry. Thou shalt not be greedy.’’ and carefully debated by the U.S. Sen- [OPCW], the governing body that will The existing amendments to the U.S. Con- ate at the earliest possible date, not at have the responsibility for deciding the stitution that come closest to addressing a the 11 hour when the clock is ticking specific subject are the 13th and 14th, which terms for the implementation of the after the Civil War abolished slavery and CWC. on our ability to ensure that the Unit- ed States is an active participant in fu- codified equal protection under the law. But A second reason is the constitutional even they were not so specific that they responsibility of the Senate to provide ture revisions to the CWC. The Amer- ican people deserve no less. can’t be applied to races other than African- its advice and consent on all treaties ∑ Americans, and questions of equal protection signed by the President. This treaty f arise even today. was signed by President Bush in Janu- Efforts for a balanced budget amendment ‘‘ANOTHER BAD ONE’’ ary 1993, and was submitted to the Sen- are an abdication of congressional respon- ate by President Clinton in November ∑ Mr. LEAHY. Mr. President, I ask sibility. Efforts for an amendment on cam- of that year. Unfortunately, the Senate unanimous consent that a copy of the paign financing constitute a similar abdica- has not yet fulfilled its responsibility attached editorial from the Vermont tion.∑ with respect to this treaty. newspaper The Time Argus, titled ‘‘An- f A third reason, and what I believe is other Bad One,’’ and dated March 19, EXPRESSING CONCERNS ABOUT one of the most important, is the need 1997, be printed in the RECORD. AIRPORT IMPROVEMENT BUDGET for adequate time for debate of this The editorial follows: Mr. HOLLINGS. Mr. President, I treaty and its implications for the ∑ ANOTHER BAD ONE want to express my concern with the United States prior to the April 29 The arguments against amending the U.S. President’s proposal for the budget of deadline for ratification. Many have Constitution over campaign financing are the Federal Aviation Administration. expressed concern over various provi- the same as the arguments against a bal- We all know how important aviation is sions in the CWC. Senators should have anced budget amendment or a prohibition the opportunity to debate these con- amendment. It is a waste of effort to target to our economy, contributing more cerns, and the American people deserve specific evils by way of the Constitution. than $770 billion in direct and indirect the chance to hear them. Senators will The U.S. Senate wisely rejected a cam- benefits. In South Carolina, travel and also have the opportunity to voice paign finance amendment by a wide margin tourism is the No. 2 industry, account- on Tuesday. their concerns during debate of the ing for almost 100,000 jobs. The indus- States which have encumbered their con- try is fueled by the aviation industry. treaty’s implementing legislation, stitutions with numerous amendments have which will most likely be discussed in The President has talked a lot about found their documents have become just a bridge to the 21st century. Bridges conjunction with the treaty itself. that: encumbrances. As a member of the Senate Commit- A constitutional amendment will not stop and highway projects are critical parts tee on Foreign Relations, I have had candidates from getting money, and it will of our Nation’s infrastructure. But so the opportunity to participate in hear- not stop people who want to influence can- are airports. I have an airport in al- ings on this issue. In all the hearings didates from using their money to promote most every county of my State. We and deliberations over the efficacy of that influence. You might as well have an have a strong airport system, but one this treaty, two things have been made amendment that said: ‘‘Candidates for public that needs money to rebuild and ex- office shall not spend money in their quest crystal clear: First, the CWC is not per- pand. The $1 billion proposal falls far for the office.’’ short of what is needed. It is a short- fect, and second, the CWC is the best Then there would be a court case to argue avenue available for beginning down whether a candidate who filled his auto- sighted approach to meeting our coun- the road to the eventual elimination of mobile gas tank while on the way to a cam- try’s needs. It also undoes a deal that chemical weapons. paign forum had ‘‘spent money in his quest’’ we had last year with the administra- There are real flaws, as we all recog- for the office. tion. I am certain that the new Sec- nize, with the verifiability of the CWC. A constitutional amendment against bank retary wants to make sure that our Na- There will be cheating and evasions robbery would not stop the number of bank tion’s infrastructure needs are ad- and attempts to obey the letter but not robberies that occur. There is a law against dressed, and I want to work with him bank robbery, and in fact Congress finally on ways to meet those needs. the spirit of the treaty. But most of got the federal government into the inves- the responsible players on the inter- tigations by making it possible for the FBI The President has proposed a $1 bil- national stage will recognize that to enter bank robbery cases immediately. lion airport improvement program. The through the CWC the world has spoken, And something similar relating to cam- airport community claims that nation- and firmly rejected chemical weapons. paign financing would be the proper course wide it needs almost $10 billion per S2726 CONGRESSIONAL RECORD — SENATE March 20, 1997 year. In my State alone, money for air- ancing the budget our highest priority. cuts leaves a balanced budget plan ports is critically needed for small and This is a significant and extremely open to criticism are absolutely cor- large projects. Without adequate fund- positive development in the fight for a rect. There is no painless solution to ing, these airports cannot expand and balanced Federal budget, and I con- the deficit. cannot begin to attract new businesses. gratulate the Speaker for making that The fundamental premise of any plan I can cite many examples of this, but statement in the face of significant op- to balance the budget rests on the will- one that comes to mind is the Green- position within his own party. ingness of the Nation to sacrifice, but ville-Spartanburg Airport project. Mr. President, the Speaker’s com- we cannot expect the Nation to em- Without an AIP grant, the runway ments are indeed welcome. They follow brace a plan which calls for some to would not have been lengthened. It the comments made this weekend by sacrifice while providing tax cuts for helped BMW decide to locate in South the chairman of the Senate Budget others. Such a plan would not be sus- Carolina. Airport grants mean business Committee [Mr. DOMENICI], who infor- tainable, as was demonstrated so clear- opportunities. mally offered a no-tax cut, no new ly during the 104th Congress. We can enact a balance budget plan if that f spending programs outline of a possible budget agreement. Mr. President, I plan is seen broadly as spreading sac- YALE PUBLIC SERVICE AWARDS cannot emphasize enough how impor- rifice fairly. Mr. President, no partisan plan has any hope of rallying ∑ Mr. MOYNIHAN. Mr. President, I rise tant the comments of the chairman broadbased public support. today to salute five extraordinary New were. They came after several days of highly partisan comments on the budg- The only way we will enact a bal- Yorkers who, on Monday April 7, 1997, anced budget plan, and sustain it will receive the Public Service Award et, from both parties and in both houses. Often, without leadership, it is through the several years it will take of the Yale Alumni Association of Met- to achieve balance, is through a truly ropolitan New York [YAAMNY]. These the nature of some to retreat to the se- curity of partisan politics—an easy bipartisan effort. Thanks to the leader- individuals have demonstrated both ex- ship of Chairman DOMENICI, and with traordinary leadership and a deep com- path that leads us further and further apart. To his great credit, Chairman the support of the Speaker, we have a mitment to public service. Each hon- chance to build such a plan. I hope my oree brilliantly exemplifies the motto DOMENICI rejected the considerable forces of partisanship, and offered an colleagues will not squander the oppor- of the Empire State: Excelsior. tunity they have given us at some per- I thank the Chair, and I ask that the alternative path. Mr. President, his path offers us a real chance for a bipar- sonal political cost to themselves. text of YAAMNY’s citation of the I look forward to working with tisan budget agreement, and I want to achievements of the respective Chairman DOMENICI on the Budget take this occasion to commend my honorees be printed in the RECORD. Committee to fashion the beginning of chairman for his courage. I am pleased The Text Follows: a budget agreement. As I have indi- to serve on the Budget Committee, and THE YALE ALUMNI ASSOCIATION OF METRO- cated to him in the committee, there deeply honored to serve with the senior POLITAN NEW YORK, 1997 PUBLIC SERVICE are several budget issues that are espe- Senator from New Mexico. AWARDS, APRIL 7, 1997 cially important to me, but I remain Mr. President, the Speaker is of THE HONOREES flexible on all aspects of the budget in course absolutely right on the mark. Peter Rosen, M.F.A., 1968, has produced an trying to reach a bipartisan agreement. As dearly as many of us would like to directed over 50 full-length films and tele- Mr. President, I applaud the Speaker support tax cuts, our first priority vision programs. His subjects range from for change of heart, and especially must be to balance the budget. This is student activism at Yale in 1970 (his first commend Chairman DOMENICI for his a position I took when I first ran for film, titled Bright College Years) to I.M. Pei courage and leadership.∑ to Carnegie Hall’s 100th anniversary, all of the Senate, and one I hold today. which have aired on PBS. Major tax cuts undercut our ability f Kimberly Nelson, B.A., 1988, is Team Pro- to craft a politically sustainable bal- TRIBUTE TO JACK G. JUSTUS gram Director at Creative Arts Workshop, anced budget plan, as was so clearly ∑ Mr. BUMPERS. Mr. President, I rise which provides job and leadership training demonstrated during the 104th Con- for at-risk teens. She served as a coordinator today to pay tribute to a fellow Arkan- for Black Students at Yale. She began her gress. As I have noted before, both par- san who is soon to retire after a long career as a social worker at the Rheedlan ties are at fault. We cannot afford ei- and distinguished career in Arkansas Foundation, a Harlem social service agency. ther the President’s tax cuts or the agriculture. Tania November, B.A., 1988, is a Manhattan Congressional Republican tax cuts. Jack G. Justus has devoted 44 years Assistant District Attorney in the Office of In November of 1994, I faulted the so- of service to Arkansas agriculture as a the Special Narcotics Prosecutor. She called Contract With America tax county agricultural agent and as a launched her career as an intern in the same cuts—called the crown jewel of the staff member of the Arkansas Farm office before her senior year, and went Contract With America at the time. A Bureau. Under Jack’s leadership as ex- straight to Harvard Law, where she was a month later, the day after the Presi- teaching fellow and law tutor in the college. ecutive vice president for the past 15 Sarah Pettit, B.A., 1988, is Editor of OUT, dent proposed his own set of tax cuts, I years, the Arkansas Farm Bureau has America’s largest circulation gay and les- took his proposal to task as well. nearly doubled in size to more than bian magazine. At Yale, she ran the lesbian Mr. President, we dodged a bullet 200,000 members. and gay Co-op. She also helped amend the during the 104th Congress. Despite for- ‘‘Progressive Farmer’’ honored Jack University’s non-discrimination policy to in- mal support for a tax cut in some form Justus as its 1996 Man of the Year in clude sexual orientation as a protected cat- from both the White House and the ma- Service to Agriculture. Throughout his egory. She makes frequent television appear- jority party in Congress, we escaped career, Jack has served on numerous ances. without doing serious damage to the Jenifer Hadiyia, B.A., 1995, is currently en- boards and commissions, including the rolled in a Masters of Pubic Policy and Ad- progress we made in reducing the defi- Future Farmers of America Founda- ministration program at Columbia Univer- cit. Regretfully, we did not build sig- tion, the 4–H Club Foundation, Arkan- sity. She is also an intern at Planned Par- nificantly on the work accomplished in sas State Fair, and other groups com- enthood. A coordinator for the Women’s Cen- the 103d Congress to reduce the deficit. mitted to the improvement of life for ter while at Yale, she helped organize the Though we made some modest strides, farm youth and the rural community. 25th anniversary celebration of coeduca- the bulk of the work that remained at Mr. President, on June 1, 1997, Jack tion.∑ the end of 1994 must still be done. Justus will retire from his administra- f Mr. President, major tax cuts make tive duties at the Farm Bureau. This the difficult task of enacting a bal- native Arkansan, life-long resident, TAX CUTS anced budget impossible. Most obvi- product of our State’s educational sys- Mr. FEINGOLD. Mr. President, the ously, major tax cuts dig the hole even tem, and dedicated public servant is Speaker of the other body made a re- deeper before we begin. But major tax certainly deserving of a long and satis- markable statement earlier this week. cuts also pose a significant and very fying retirement. He argued that Congress should wait on real political problem, and the Speak- Our State has benefited greatly from cutting taxes, and instead make bal- er’s comments about how including tax Jack Justus’ stewardship and I know I March 20, 1997 CONGRESSIONAL RECORD — SENATE S2727 join literally thousands from all across Mr. President, I am honored to rep- pact in this country; one that past our State who join me in saying thank resent the State of Illinois. It is the GAO reports have clearly recognized. you.∑ home of some of the most productive The effect on air quality and energy se- f farm land in the world. Illinois farms curity would be larger if more of our produce corn, soybeans, pork, beef, Nation s gasoline contained ethanol. CITY OF HACKENSACK wheat, dairy products, and many spe- Ethanol should not be a poster child ∑ Mr. TORRICELLI. Mr. President, I cialty crops. Our agribusiness commu- for Government handouts or corporate rise today to inform the Senate that nity is vibrant. And, our researchers welfare. The primary incentive—a 5.4- Americans are still committed to eco- help provide answers to some of the cents-per-gallon reduction in the gaso- nomic progress and that local govern- most common as well as the most com- line excise tax for 10 percent ethanol ment is not powerless in the face of plex agricultural questions we know. blends—is not claimed by major etha- economic challenges. In my home Over the last few months, I’ve trav- nol-producing corporations. The incen- State of New Jersey, the city of Hack- eled my home State and talked to tive is claimed by thousands of gaso- ensack has shown that dedication to farmers and others involved in produc- line marketers—mostly independent, solving long-term economic problems tion agriculture. The message from my small businesses—that sell ethanol can be accomplished with practical fellow Illinoisans has been clear— blends all across the country. In other leadership utilizing innovative solu- health insurance affordability and eco- words, the incentive is claimed at cor- tions. nomic opportunity are priority issues. ner gas stations, not in corporate Over the past few years, the city of I believe that a 100-percent tax de- boardrooms. Hackensack had seen its downtown duction for health insurance premiums On a day like today, it is important population decrease and its economic is one of the most basic issues to farm to point out the benefits of ethanol. stability put at risk. The people of families across this country. Because The industry is responsible, both di- Hackensack were not to be deterred of the high cost of health insurance, es- rectly and indirectly, for more than from making their city the best it pecially individually purchased insur- 40,000 American jobs. Ethanol contrib- could be. So, instead of accepting an ance, lack of affordability is a growing utes more than $5.6 billion annually to unsatisfying economic fate, Hacken- problem. Health insurance is particu- our economy. Five percent of our Na- sack’s mayor and city council called larly important to those involved in tion’s corn crop goes to ethanol pro- together local business leaders to es- production agriculture because farm- duction. Corn growers have seen their tablish the Hackensack Economic De- ing is one of the more dangerous occu- incomes increased by more than $1.2 velopment Commission. This pioneer- pations. Therefore, it is essential that billion because of ethanol. This year ing commission set out to study the farmers have access to quality health over 1.4 billion gallons of ethanol will city’s economic climate and propose care and that they be covered by be produced. Thanks to the reformu- steps toward its continuing develop- health insurance. lated gasoline program, toxic air pol- ment. To help with affordability of health lutants like benzene and carbon mon- This study, conducted by the Eagle- insurance, I plan to introduce legisla- oxide have fallen substantially. And, ton Institute’s Center for Public Inter- tion that would allow farmers and ethanol contributes over $2 billion an- est Polling at Rutgers University, is other self-employed individuals to pay nually to the U.S. trade balance. the first of its kind by a municipality for their health insurance premiums Finally, Mr. President, in order for in our State. The city’s initiative and with pretax dollars. When it comes to our country to continue to have a safe creativity in utilizing these research health insurance, farmers and small and abundant food supply we must sup- tools should be commended. Hacken- business owners deserve to be treated port agricultural research. This year, sack’s climate study is unique in that the same as corporations. Corporations we have an opportunity to reauthorize it reached a broad range of people, over are allowed to take an income tax de- the research title of the farm bill. Con- 5,000 residents and workers of the duction for the full cost of the health gressional reauthorization will estab- Hackensack area. The wide scope and insurance premiums that they pay. lish national policy for important agri- depth of the study is a model for simi- The self-employed, including farm- cultural research into the 21st century. larly situated cities in New Jersey. ers, can only deduct 40 percent of their In these times of constrained Federal Yet, more than a model for New Jer- premiums this year. My bill would budgets, it is vitally important to sey, the efforts of the commission serve allow farmers to deduct 100 percent of maintain an effective system for agri- as a model for the entire country to their health insurance premiums from cultural research. prove that with solid community com- their taxable income this year and mitment, ongoing economic growth every year thereafter. A 100-percent de- Agriculture-related research in this can be a reality. Thus, I ask that you duction for health insurance premiums country is currently conducted at over join me in recognizing the city of can reduce the net cost of health insur- 100 ARS labs, including Peoria, IL, and Hackensack in its devotion to be an ance for a farm family by as much as over 70 land grant institutions, includ- improved economic development and $500 to $1,000 annually. This savings ing the University of Illinois. Unfortu- commend its foresight and planning to can make the difference between nately, the United State ranks behind other cities across the Nation.∑ whether health insurance is affordable Japan, the United Kingdom, France, and Germany in the percentage of total f or price-prohibitive. The affordability of quality health insurance is vitally research and development funding that NATIONAL AGRICULTURE DAY— important to Illinois’ and America’s is dedicated to agriculture. From soy- MARCH 20, 1997 farm families. bean diseases to water quality to bio- ∑ Mr. DURBIN. Mr. President, I rise Mr. President, another important technology, agricultural research plays today to pay tribute to America’s farm issue for rural America is finding new an important part in the safety and families and those involved, both di- or alternative uses for our agricultural quality of our food and fiber system. rectly and indirectly, in production ag- products to help ensure economic op- Mr. President, last year Congress riculture. portunity for farm families. Ethanol, a passed a comprehensive reauthoriza- Today, is National Agriculture Day. renewable fuel made from corn, is one tion of most farm programs. This year It is an opportunity for all of America of the best alternative use opportuni- we need to continue that commitment to pause, reflect, and be thankful that ties that exists today. by ensuring affordable health care and we enjoy the safest and most abundant Last week the Government Account- deductibility of premiums for farmers food supply in the world. But, this ing Office released a report, Alcohol and the self-employed, promoting the doesn’t happen by accident. Fuels: Tax Incentives Have Had Little use of alternative agricultural products Every day, 77,000 farm families in Il- Effect on Air Quality or Energy Secu- like ethanol, and modernizing our agri- linois go about the business of produc- rity.’’ Unfortunately, this report culture system by continuing a strong ing the food and fiber that our State misses the point. That point is simple: and active investment in research. and our Nation needs to survive. To Ethanol has a significant economic, en- I look forward to working with my them I say, thank you. vironmental, and energy security im- colleagues on both sides of the aisle S2728 CONGRESSIONAL RECORD — SENATE March 20, 1997 and from rural and urban areas to en- career studying and writing about pov- inspire us. We should apply, as Dr. sure that American agriculture re- erty and working to develop strategies Lampman did, our best efforts to rid- mains a model of quality and efficiency to achieve its end. In 1966, he became ding our world of the plague of poverty for all nations.∑ the founding director of the Institute and finally establishing social justice. f for Research on Poverty, a nonpartisan That would be the most fitting tribute center for research into the causes and we could pay to this man.∑ NOMINATION OF MERRICK consequences of poverty and social in- f GARLAND equality in America, on the UW-Madi- RURAL HEALTH ∑ Mr. FAIRCLOTH. Mr. President, yes- son campus, which established the uni- terday I voted ‘‘no’’ on the nomination versity as a leader of research in that ∑ Mr. ABRAHAM. Mr. President, I rise of Merrick Garland to the U.S. Court of field. A colleague at the University of today to pledge my support to the Appeals for the District of Columbia Wisconsin, Dr. Lee Hansen, called Dr. Rural Health Improvement Act of 1997. Circuit. Lampman ‘‘a true scholar in that he In my home State of Michigan and In so voting, I take no position on was always asking questions to get a across the Nation, this legislation the personal qualifications of Mr. Gar- better understanding of the issues.’’ would improve the standard of health land to be a Federal appeals court Despite his standing in his profes- care for millions of Americans who live judge. What I do take a position on is sion, Dr. Lampman was known as a in rural areas. that the vacant 12th seat on the U.S. professor who regarded his students as Mr. President, I am very aware of the Court of Appeals for the District of Co- colleagues. One news report describing problems inherent in caring for citizens lumbia Circuit does not need to be his career included a recollection by who live far away from major cities. filled. Senator CHUCK GRASSLEY, chair- Dr. Thomas Corbett, once a graduate Too often, these hardworking tax- man of the Senate Judiciary Commit- student studying with Dr. Lampman payers and their children are not given tee’s Subcommittee on Administrative and now a University of Wisconsin pro- easy access to the quality emergency and primary care services they deserve. Oversight and the Courts, has exam- fessor of social work and acting direc- ined this issue thoroughly, and has de- There have, however, been two recent tor of the IRP. Dr. Corbett recalled Dr. termined that the court’s workload efforts that have been extremely suc- Lampman’s stopping by his office and does not justify the existence of the cessful in providing such care while saying he wanted ‘‘to pick my brain.’’ 12th seat. Last Congress, Senator also controlling costs — the Montana ‘‘In a world where egos can become GRASSLEY introduced legislation to Medical Assistance Facility dem- overwhelming, he was a guy who never abolish this unneeded seat. By proceed- onstration project and the Essential lost his perspective,’’ Dr. Corbett said. ing to renominate Mr. Garland, Presi- Access Community Hospital and Rural In 1962, he joined the staff of Presi- dent Clinton has flatly ignored this Primary Care Hospital demonstration dent John Kennedy’s Council of Eco- uncontradicted factual record. program. nomic Advisors, where he prophetically I commend Senator GRASSLEY for his Mr. President, the bill that I endorse important work on this matter, as well warned that economic growth, alone, today would extend these successful would not eliminate poverty. He was as Senator JEFF SESSIONS, who has also initiatives to all 50 States. It would emphasized the importance of this later a key author of the historic chap- also ease Federal regulations for small matter. With the Federal deficit at an ter on poverty contained in Lyndon hospitals that wish to be designated as all time high, we should always be vigi- Johnson’s ‘‘Economic Report of the ‘‘critical access’’ institutions. The aim lant in looking for all opportunities to President’’ in 1964 that helped call of the bill is to allow these facilities cut wasteful government spending; this America’s attention to poverty. greater flexibility in tailoring their is one such opportunity. After all, each Dr. Lampman became, in the words services to the needs of patients in unnecessary circuit judge and his or of Nobel laureate economist James their particular communities. In short, her staff cost the taxpayer at least $1 Tobin, ‘‘the intellectual architect of I believe this law would improve care million a year. the War on Poverty,’’ and he empha- and save lives. A study of these pro- Lastly, our vote yesterday is an im- sized the importance of economic grams by the General Accounting Of- portant precedent, since it marks the growth, income maintenance, and op- fice, in fact, has found that these ini- beginning of the Senate’s new commit- portunities for education and jobs for tiatives actually decreased Medicare ment to hold rollcall votes on all judi- those mired in poverty. costs while maintaining a high stand- cial nominees. This is a policy change In 1964, as the War on Poverty was ard of care. which I had urged on my Republican getting underway, he predicted to a In my view, Michigan and the rest of colleagues by letter of January 8, 1997, group of University of Wisconsin-Madi- the Nation must receive the most af- to the Republican Conference. Voting son graduate students that, within 20 fordable high quality care available. I on Federal judges, who serve for life years, ‘‘by present standards, no one believe this legislation is an important and who exert dramatic—mostly un- will be poor.’’ step in that direction. For these rea- checked—influence over society, Mr. President, it turned out that Pro- sons, I am proud to cosponsor this leg- should be one of the most important fessor Lampman was overly optimistic. islation and urge my colleagues to do aspects of serving as a U.S. Senator. Poverty was not eliminated in 20 years, the same.∑ but the War on Poverty had an impact. Rollcall votes will, I believe, impress f upon the individual judge, the individ- In 1964, before the War on Poverty was ual Senator, and the public the impor- up and running, 19 percent of Ameri- SAFE ADOPTIONS AND FAMILIES tance of just what we are voting on. I cans were poor. Within 5 years, pro- ENVIRONMENTS ACT hope that my colleagues will regard grams created by the Federal Govern- ∑ Mr. DODD. Mr. President, I rise this vote, and every vote they take on ment and a broadly expanding economy today to voice my strong support for a Federal judge, as being among the had combined to bring that number the Chafee-Rockefeller Safe Adoptions most important votes they will ever down to 12.1 percent. By 1973, the pov- and Families Environments Act take.∑ erty rate was down to 11.1 percent. [SAFE]. What’s more, I commend each f That progress stalled, for many rea- of them for their tireless and biparti- sons. Census Bureau estimates for 1995, san efforts on behalf of this issue. TRIBUTE TO PROF. ROBERT J. the most recent year for which data As I come to the floor today, it is dif- LAMPMAN are available, tell us 13.8 percent of our ficult for me to imagine a more out- ∑ Mr. FEINGOLD. Mr. President, I rise Nation’s population was poor, and, in rageous and disgraceful form of vio- to offer tribute to Dr. Robert J. the wealthiest nation in history, one lence than child abuse. Lampman, economist, University of American child in five lived in poverty. However, while national attention to Wisconsin-Madison professor and noted Mr. President, Dr. Lampman’s dedi- the problems of abuse are increasing, researcher on poverty, who passed cation, his intellectual energy, and his regrettably, so too are incidents of away March 4 at his home in Madison. commitment to solving one of the most child abuse and neglect. Mr. President, Dr. Lampman spent difficult, complex, and persistent social In fact, the number of abused and ne- much of his distinguished professional challenges we face should inform and glected children nearly doubled from March 20, 1997 CONGRESSIONAL RECORD — SENATE S2729 1.4 million in 1986 to over 2.8 million in our own history. That unparalleled only broad themes and small remedies 1993. During that period the number of progress is the product of a unique ef- for a few specific problems. In the children who were seriously injured fort that helped us win the cold war President’s budget, funding for Federal quadrupled—from about 143,000 to near- and, among other notable achieve- research and development remains es- ly 570,000. ments, put Americans on the moon. sentially unchanged in a gradual down- In my own State of Connecticut inci- The effort is best described as a Na- ward trend, with the prognosis for com- dents of child abuse and neglect in- tional Enterprise: a strong foundation ing years being a point of great con- creased 118 percent from 1984 to 1994. In built upon a shared responsibility and cern. The President’s emphasis on edu- fact, between 1993 and 1994 alone there a common vision for our country’s suc- cation is also a positive initiative, but was a 43-percent increase. cess. his proposals seem to disproportion- Unfortunately, many child welfare The common vision that helped de- ately favor higher education over all agencies lack the resources to effec- fine our National Enterprise was other levels. The President has pre- tively deal with the increase in child shared by three basic pillars of our so- sented a budget which seems to recog- abuse cases or efficiently place chil- ciety: our Government, our academic nize some of the problems, but does not dren in safe, permanent, and loving institutions, and our private indus- clearly articulate the full spectrum of homes. tries. The cementing agent is a sense of challenges before us. Legislation introduced today by Sen- singular mission, embodied largely, but In addition to addressing the funding ators CHAFEE and ROCKEFELLER, of not exclusively, in the cold war effort, challenges that our National Enter- which I am an original cosponsor, our love of freedom, and our free mar- prise faces, we must also embolden the would do more to not only protect kets. Its medium and fuel are an inge- Federal Government with a new under- these abused children but also ensure nious, compassionate, optimistic, hard standing of mission and role within the that they are not returned to environ- working, and resolute people. Enterprise. This understanding is the ments where they will be abused or ne- The National Enterprise has now critical difference between developing glected. reached a crossroads, and we are facing a strategy like the one that won the First, it would work to ensure that one of the greatest but understated Cold War, and one that is simply a abused and neglected children are challenges of our history. With the ad- triage of federal spending programs. placed in safe and protected settings. vent of two historical trends, we face a We must forge a sense of mission and Second, it would more rapidly move challenge more daunting than any seek a new understanding, for we may children out of the foster system and enemy: a potential loss of our own re- never have another Sputnik to awaken into permanent homes. solve. our schools, government and industries If there is one thing that all of us can First, growing Federal entitlements to the essence of the National Enter- agree upon it is the importance of as- have created a fiscal crisis in the Fed- prise. suring the safety and well-being of our eral Government, with 28 consecutive The challenges of the coming century Nation’s children. This bill would im- years of deficit spending, a $5.3 trillion will be as great or greater than those prove our child welfare system and debt, and shrinking discretionary we have met thus far, but we do have help ensure that every child is given spending. The money we allocate to re- the benefit of learning from our past the opportunity to grow up in a safe search and development faces increas- successes. We can base our inquiry and and healthy home. ing competition from other worthwhile guide our decisions on a set of simple I urge all my colleagues to join me in endeavors such as environment, edu- truths we have learned from that expe- a bipartisan manner, and support this cation, national parks, infrastructure, rience. These simple truths make the critically important legislation for our and defense. All are competing for a link between spending and results, and children’s future.∑ smaller and smaller slice of the Fed- highlight the need to make those links f eral spending pie. as clear, as direct, and as strong as pos- Second, the end of the cold war era THE NATIONAL ENTERPRISE sible. has left America with what some might Truth number one: research and de- ∑ Mr. FRIST. Mr. President, the ex- call a diluted sense of mission or com- velopment, science, and education traordinary lifestyle, security and mon interest. The National Enterprise bring advancements and innovation. standard of living Americans have en- cannot be defined in a single dimen- Truth number two: innovation has joyed since the end of the Second sion, but for better or for worse, the been the basis of our competitive World War is one of our most notable cold war’s unifying power and the birth edge—peaceful and defensive—and of achievements in recent history. We are of America as a superpower was the our extraordinary lifestyle; it is the wealthier, healthier, and safer than single greatest motive driving the En- cornucopia of modern America and the any people before us. We have built an terprise and the yardstick of its suc- envy of the world. economy whose resilience, ingenuity, cess. Truth number three: federal funding and potential are truly the envy of the With the launch of Sputnik in 1957, of research, and creating an environ- world. We have become the standard by we witnessed a technologically- ad- ment that encourages private research which all other nations are measured. vanced, symbolic challenge from our and innovation, is the bedrock upon The century in which we have survived would-be enemy. It was the crack of which the National Enterprise has been economic collapse and two world wars the starter pistol in a race that would founded. only to become stronger bears our bear both frightening military capa- These fruits of our labor are not ob- name, the ‘‘American Century.’’ bilities and extraordinary peaceful scure laboratory innovations, but inte- This unparalleled achievement is not dividends. For the first time, we were gral parts of our lives and economy. a product of chance or fate, luck or ser- sobered in our celebration of post-war- The Internet, computer chips, sat- endipity, or even good timing. It is the era wealth and security and were chal- ellites, super-sonic aircraft, higher product of an extraordinary effort on lenged to push ourselves to the limit. education and research universities, the part of the American people and The Sputnik era has ended, and with it and strong civilian and defense-related the institutions we have built and has ended the series of punctuated basic research are a few compelling ex- strengthened. It is the product of the events that presented a clear road map amples. American spirit and work ethic which, for our progress and cold war victory. Therefore, the question is not wheth- in our first 100 years, propelled us from What will be the new road map for our er federal research and development the periphery of a colonial empire to National Enterprise? spending is the taproot of our innova- an independent nation a continent I was heartened to hear the President tion and economic growth—it clearly wide. It has allowed us, in our second recognize the importance of the Na- is. The questions we face are, What is century, to defeat challenges under tional Enterprise during his State of the right formula for the federal gov- which other nations withered. the Union Address. Without his leader- ernment in this National Enterprise? Since the end of the Second World ship, any efforts in Congress, industry What are the actual mechanisms by War, we have witnessed and enjoyed or education are unlikely to be success- which that combination of spending progress and growth unparalleled in ful. However, the President addressed and American ingenuity translate into S2730 CONGRESSIONAL RECORD — SENATE March 20, 1997 advancements? And how do we make ance in our elementary and secondary We must begin to study these issues them as strong and as sharp as pos- school systems is an erosion of the and join the effort, beginning with the sible? basis of the National Enterprise itself appreciation that this dialogue is the We have some initial ideas here in and a threat to its very existence. extraordinary luxury of an accom- Congress, but I do not believe this body Consistent and stable commitments plished, enterprising and open-minded as a whole is prepared to answer those to funding are essential for planning. people. As Chairman of the Science, questions—the most important of our Planning, in turn, is an essential ingre- Technology and Space Subcommittee, time. But it is my sincere hope that we dient in long term strategies and the as a founding member of the Science have begun this necessary dialogue. ability for individuals, companies and and Technology Caucus, and as a medi- In our pursuit of these answers, we institutions to commit to the long cal scientist and physician, I will ac- have a simple, yet profound, justifica- term and basic research. tively pursue this dialogue and seek tion: research and development spend- A commitment to basic research is answers to these critical questions. ing and strong science and technology the foundation upon which all other The Nation’s approach to these chal- are the essential base elements of our discoveries and technical advance- lenges must be broadened in scope and competitive edge, our standard of liv- ments are dependent. Here, the federal increased in level of participation. It ing, and our defense. To hone and pre- role is particularly important. Univer- must move away from an annual piece- serve that edge, Congress must work sities and labs cannot realistically un- meal approach, confined to specific closely with the traditional partners in dertake such high-risk and long-term programs’ and agencies’ funding within this effort: universities, government research on their own. And industries our own appropriations process. It agencies and their labs, and private in- cannot necessarily commit to a ven- must also gain the level of honesty and dustry. These partnerships have been a ture that may not enjoy a market re- earnestness realized during the Cold key to America s strength and their turn during the lifetime of the com- War Era and in the wake of Sputnik. whole is seemingly greater than the pany. This nascent dialogue and recent legis- sum of its respective parts. Do not think I’m speaking of simply lative initiatives are encouraging first Along with several representatives of a more-informed and sophisticated steps, but the challenge must expand the national research, development and triage. The overall budget projections to include more of the Congress, the education effort in government, uni- on research and development spending Administration and the public. versities, and industry, several Sen- are a point of great concern—some say Congress must answer the critical ators of both parties have begun to ex- a threat to our national security, our questions to determine the role of the plore the issues and open a dialogue ad- quality of life and our sharp competi- federal government, and then see that dressing the questions of great na- tive edge. our laws and spending reflect the cor- tional importance, as illustrated by the In this delicate operation of redefin- rect answers and clearly define our na- formation of the Senate’s bipartisan ing our National Enterprise, we must tional interests. We must set out to un- Science and Technology Caucus. The be extremely careful, for clean inci- derstand our mission and to define our full Senate understands the challenges sions are not easy, and the distinctions goals. of maintaining a vibrant National En- between excesses and successes are not America cannot afford to wait for an- terprise, but the gravity of the chal- always clear. We must note that in try- other Sputnik to shake us from our lenge has not been fully articulated, ing to solve our budget crisis, some of complacency and to define our inter- even as we face greater competition the issue have been muddled, where the ests for us. Congress has a great chal- from other countries and ever greater fine distinctions between basic and ap- lenge ahead, and we must act now to pressure on federal and private funding plied research, and between research restore and preserve our competitive of all research and development. and development, are lost or mis- edge and standard of living—so much This venture will require understand- judged. However, should we gain a new depends on the decisions Congress ing, sympathy, discipline and dedica- sense of mission and consensus of goals makes and on the sincerity, depth, and tion. Already, the initial dialogue has through dialogue, such distinctions be- sobriety of the dialogue.∑ realized some immediate success: it ex- come less and less difficult with time, f posed common ground and initiated the and we can better focus the energies critical dialogue. We have begun to and money of the United States. THIRTIETH ANNIVERSARY OF THE identify issues and areas on which Con- We also face the danger that any REUNIFICATION OF JERUSALEM gress can begin to pursue an agenda such dialogue could be characterized ∑ Mr. MOYNIHAN. I rise today to and strategy: politically and split by misconceptions speak about the city of Jerusalem, a Partnerships among industry, gov- of conservative versus liberal, of big subject I have spoken about at some ernment, and universities are the government versus streamlined govern- length and on numerous occasions dur- strong basis of our preeminence in ment, or even command economy ver- ing my tenure in the United States science and technology and in research sus the free market. We should be clear Senate. In the not too distant future, and development, and are the essential from the outset that this discussion is the people of Israel will celebrate the whet stone of our competitive edge. We none of these, and it is certainly not a thirtieth anniversary of the reunifica- must find the best ways to shorten the Republican versus Democrat issue, as tion of their Capital. It is altogether time it takes to bring basic research to the recent bipartisan efforts illustrate. fitting and proper that the United market, clinic, the armed forces, or in- We must be mindful that the dia- States Congress should mark this anni- dustry. logue must also focus on education and versary with an appropriate resolution. Education is the seed-corn of the ad- the creation of human capital to fuel For 3,000 years Jerusalem has been vancements we enjoy. We must con- and guide our National Enterprise. A the focal point of Jewish religious de- tinue to cultivate human capital, for National Enterprise with all financial votion. Although there had been a con- that seed-corn cannot be planted too means at its disposal is impotent and tinuous Jewish presence in Jerusalem early. To fail to provide our institu- adrift without knowhow and wisdom. for three millennia—and a Jewish ma- tions of higher learning with qualified Our economy’s resilience, ingenuity, jority in the city since the 1840’s—the students will ultimately be the most and potential are sure to fade without once thriving Jewish population of the damaging blow to the National Enter- an unwavering commitment to edu- historic Old City of Jerusalem was prise. It is a problem that cannot be cation. driven out by force during the 1948 corrected in a single budget or simply On these issues we must be prepared Arab-Israeli War. From 1948 to 1967 Je- through new laws and higher federal to deliberate, to make difficult deci- rusalem was divided by concrete, spending levels. Today, nearly one- sions, and to lead. Congress must use barbed wire, and cinder block. Israelis third of incoming American college its experience, knowledge and author- of all faiths and Jews of all nationali- students are compelled to enter reme- ity to move dialogue, keep it from ties were denied access to holy sites in dial courses because they are ill-pre- folly, and define priorities and goals in the area controlled by Jordan. pared for much of the basic curriculum. the interests of the American people— Jerusalem was finally reunited by Is- The erosion of standards and perform- a very tall order. rael in 1967 during the conflict known March 20, 1997 CONGRESSIONAL RECORD — SENATE S2731 as the Six Day War. Since then, Jeru- central storage by 1998. Will that hap- fuel from nuclear reactors all over the salem has been a united city in which pen? The answer is ‘‘no.’’ world into the United States, virtually the rights of all faiths have been re- Even though $12 billion has been col- as we speak—by truck, by train, by spected and protected, and persons of lected from Americans to pay for stor- barge, by boat. all religious faiths have been guaran- age—and even though a Federal court If the Nevada Senators do not tell teed full access to holy sites within the reaffirmed the Government’s legal obli- you about this, there’s a reason. Its be- city. gation to take the waste by 1998—there cause these shipments have been, and In 1990, I sponsored Senate Concur- is no plan for action. will continue to be, completely un- rent Resolution 106, which was over- By 1998, 23 reactors in 14 States will eventful. In short, these spent fuel whelmingly adopted by the United be full. By 2010, 65 reactors in 29 States shipments are safe, and they aren’t States Senate, while a similar resolu- will be full. news. tion (H. Con. Res. 290) was adopted by A conservative estimate is that 25 At our hearing in February, all four the House of Representatives. These percent of our nuclear plants will not members of the Nevada delegation ad- resolutions declared that Jerusalem, be able to build onsite storage and will mitted there was no process and no the capital of Israel, ‘‘must remain an be forced to shut down. That would level of scientific proof that would de- undivided city’’ and called on the Israe- mean the loss of over 5 percent of our crease their opposition. This is about lis and the Palestinians to undertake Nation’s total electricity generating politics, and little about science. negotiations to resolve their dif- capacity. Senator BRYAN was once in favor of ferences. The late Prime Minister But Yucca Mountain won’t be ready sending high-level materials to the Ne- Yitzhak Rabin credited S. Con. Res. 106 until at least 2015. Therefore, the Na- vada test site. As a State legislator, he with ‘‘[helping] our neighbors reach the tion needs a temporary solution. voted for A.J.R 15, which was signed by negotiating table’’ to produce the his- That solution—S. 104—passed the En- the Nevada Governor in May 1975, toric Declaration of Principles signed ergy and Natural Resources Committee which asked the Federal Government in Washington on September 13, 1993. with a solid, bipartisan vote (15–5). Al- to do just that. In the fall of 1995, I joined with Sen- most half the minority members and I think he was right the first time. It ator Dole to introduce ‘‘The Jerusalem all majority members voted in favor of is safer, smarter, and cheaper to con- Embassy Act of 1995’’ (Public Law 104– the bill. tain these materials at one location in 45) which states as a matter of United Americans have waited too long for a the remote nevada desert. States policy that Jerusalem should re- solution to this environmental and The Nevada test site was used for main the undivided capital of Israel. I public safety challenge—we must not decades to explode nuclear bombs. It firmly believe that Jerusalem must re- wait any longer. There is a critical helped win the cold war—now it can main an undivided city in which the need to construct a safe, central stor- help us win the war on radioactive rights of every ethnic and religious age facility to eliminate the growing waste disposal. High-level nuclear group are protected, as they have been threat to the environment and to the waste is our legacy: Now it’s our obli- by Israel during the past thirty years. American people. gation to dispose of it. I congratulate the people of Israel on I have worked with Members on both It is irresponsible to let this situa- the approaching thirtieth anniversary sides of the aisle to solve any problems tion continue. It is unsafe to let dan- of the reunification of their historic they have with this bill. We accepted gerous radioactive materials pile up at capital. When the Senate reconvenes several amendments from the demo- 80 sites in 41 States. It is unwise to next month, I will introduce a resolu- crat side. block safe storage in a remote area tion to commemorate this event, as I We continue to meet with Democrat when the alternative is to simply leave have done on previous anniversaries.∑ Members and the administration to re- it in 41 States. This is a national prob- f solve remaining concerns. We will con- lem that requires a national solution. tinue to work with new Secretary Pena We need to pass S. 104. THE NUCLEAR WASTE POLICY ACT and his staff at the Energy Depart- So far, the administration’s attitude OF 1997 ment, now that the Secretary has the toward nuclear waste storage has been ∑ Mr. MURKOWSKI. Mr. President, portfolio to resolve this pressing prob- to simply ignore the problem and dis- high-level nuclear waste and highly ra- lem. regard the Governments contractual dioactive used nuclear fuel is piling up Over the recess, committee staff will obligation to take this waste. The at 80 sites in 41 States. It is stored in be available to work on proposed com- American people deserve better. populated areas, near neighborhoods promises which can be considered in Safe nuclear storage should not be a and schools, in the backyards of people April. Senator BINGAMAN has been very political issue. It is a scientific and an across America. constructive in this regard. environmental issue—and we need a so- An example is the Palisades Plant in Much of what he is proposing appears lution now. Sadly, the administration Michigan, which is within 100 feet of acceptable. However, the bottom line is has turned a blind eye and a deaf ear. Lake Michigan. Another is the Haddam the need for a predictable path to in- In addition to threats to the environ- Neck Plant, in Connecticut. A U.S. terim and permanent waste storage. ment and safety, 22 percent of our elec- Senator has observed that he can see it We simply cannot leave trap doors that tric capacity is at risk—22 percent. from his house. allow central storage to be delayed for Starting in January 1998, taxpayers Without objection, I would like to decades. may have to pay billions of dollars in place in the RECORD an editorial from We now have an opportunity for bi- liability payments because the Govern- today’s Hartford Courant that observes partisan action. Let’s seize that oppor- ment has not met its obligation to that ‘‘with the closing of the Connecti- tunity. take waste. Estimates of taxpayers’ li- cut Yankee Plant at Haddam Neck, the It is no secret both Nevada Senators ability under a recent lawsuit brought issue of what to do with the State’s will do what they feel they need to to by States run as high as $80 billion. high-level nuclear waste has moved derail this important bill. They con- That’s as much as $1,300 per American from the theoretical to the here and sider it a political necessity to oppose family. Here’s how the damages break now. . . . Experts say Connecticut Yan- it. down: kee’s spent fuel could be stored at There will be allegations that the Cost of storage of spent nuclear fuel: Haddam Neck for another 30 years if science is bad and try to scare us with $19.6 billion. Congress fails to approve a temporary references to mobile chernobyl. They Return of nuclear waste fees: $8.5 bil- facility. Unfortunately, the hands of will imply that if this bill doesn’t pass, lion. the clock can’t be turned back to a nuclear waste will not be transported Interest on nuclear waste fees: $15 to time when nuclear waste didn’t exist. through this country. That is not true. $27.8 billion (depending on the interest In terms of its disposal, a remote The fact is that there have been 2,500 rate used). desert site in Nevada is the lesser of shipments of used fuel across this Consequential damages for shutdown two evils.’’ country in the last 20 years. of 25 percent of nuclear plants due to The waste was supposed to be taken This is not just history—it is happen- insufficient storage (power replace- by the Federal Government for safer, ing today. Doe is transporting spent ment cost): $24 billion. S2732 CONGRESSIONAL RECORD — SENATE March 20, 1997 Inaction is not an option. Inaction is Congress clarify its intentions for the and a date for the opening of that facil- irresponsible. disposal of spent nuclear fuel and nu- ity. Many of the opponents claims are clear waste. It is for this reason that I Congress must own up to its respon- also irresponsible: Interim storage at introduced the Nuclear Waste Policy sibilities for the disposal of nuclear the Nevada test site will not delay con- Act of 1996, which passed successfully materials that it assumed through struction of Yucca Mountain. A viabil- in this body last year, and it is why I statute in 1982; a responsibility that 40 ity assessment will occur before the in- am a sponsor of S. 104 this year. We utilities and other organizations from terim site is built. The President will must resolve the problem that this Na- 23 States are suing the Federal Govern- have a choice of interim sites after the tion faces with disposing of nuclear ment right now in the U.S. Court of viability assessment. material. Congress must recognize its Appeals to fulfill. The passage of S. 104 This Nation faces a major decision: responsibility to set a clear and defini- will take a major step in that direction either continue storing high-level ra- tive nuclear disposal policy. With the and stem the Government’s potential dioactive materials at 80 locations in 41 passage of this legislation in the last liability for failure to fulfill its con- States indefinitely, or more safely con- Congress, the Senate expressed its will tractual commitments—a potential tain them at one, centralized facility. that Government fulfill its responsibil- hemorrhage of billions of dollars in The option is clear—it’s safer and ities. judgments against the Department of cheaper. The time for action is now. One major provision of this legisla- Energy. By this action, spent nuclear The editorial follows: tion directs that an interim storage fa- fuel that is currently stored at nearly [From the Hartford Courant, Mar. 20, 1997] cility be constructed at Area 25 at the 100 different sites around the country— THE LESSER OF TWO EVILS Nevada Test Site and that the interim sites that were never designed for long- facility be prepared to accept materials With the closing of the Connecticut Yan- term storage—will be move to one kee plant at Haddam Neck, the issue of what by November 30, 1999. The first phase of central location: A location that is spe- to do with the state’s high-level nuclear this two-phase facility will be of a suf- cially designed for such storage. waste has moved from the theoretical to the ficient size to accept spent fuel from In the course of this debate, we will here and now. commercial reactors, shut down reac- hear a lot of discussion from those on The dilemma for Connecticut—and for tors and the Department of Energy. both sides of this issue about transpor- other states that are home to any of 109 nu- As reported out of Committee, S. 104 tation. Those who don’t want to ad- clear reactors—is whether to continue to includes a provision which I intro- dress the nuclear waste issue are likely store the spent nuclear rods on site or. . . . duced. This provision clarifies Con- to raise the specter of a ‘‘mobile Or What? Or begin shipping the radioactive waste to gress’ intent to provide for the timely Chernobyl.’’ This scaremongering is a temporary repository in the Nevada desert, removal of spent nuclear fuel and high- simply not supported by the facts. but only if Congress approves such a facility. level radioactive waste from the Gov- The fact is that there have been over Senate action is expected shortly. ernment’s national laboratories and de- 2,500 commercial shipments of spent Already, utility ratepayers have contrib- fense programs. Under this provision, fuel in the United States, and that uted $13 billion nationally, and $500 million the Department of Energy is required there has not been a single death or in- in Connecticut, for the purpose of disposing to remove Government nuclear waste jury from the radioactive nature of the spent nuclear fuel at a central repository. and spent nuclear fuel from our na- cargo. Let me add to these statistics by But the federal government is more than a dozen years behind in developing a perma- tional laboratory sites in an amount noting that in my State there have nent underground vault at Yucca Mountain, equal to at least 5 percent of the total been over 600 shipments of Navy fuel Nev., thus heightening the need for a tem- waste DOE accepts into the interim and over 4,000 other shipments of radio- porary holding place. storage facility every year. active material. Again, there have been To be sure, concerns about transporting In addition to the billions of dollars no injuries related to the radioactive 85,000 tons of waste in 15,000 shipments over that utility ratepayers have contrib- nature of these shipments. This is an 30 years should in no way be minimized. Any uted to the disposal fund, taxpayers exemplary safety record—a product of leak, accident or terrorist attack would have have contributed hundreds of millions the care and rigorous attention with disastrous consequences for the 75 percent of of dollars to the disposal program for the nation’s population who live along the which these materials are transported. designated truck and rail routes. the removal of spent fuel and nuclear I know that many people would pre- But nuclear engineers have done every- waste from the Nation’s national lab- fer not to address the problem of spent thing humanly possible to ensure the integ- oratory sites. The provision I have nuclear fuel disposal. But for this Con- rity of the operation. The casks that contain sponsored makes good on the Govern- gress not to address the problem would the radioactive material have been dropped ment’s commitment to clean up these be irresponsible. As the legislative 30 feet onto hard surfaces, engulfed in 1,475- sites and shows a return on the tax- body that sets policy for the Nation, degree fires, submerged under three feet of payer money committed to this dis- Congress cannot sit by and watch while water and crashed at 80 mph into a 700-ton posal program. a key component of the energy secu- concrete wall. In every test, the casks sur- This provision assures that the spent vived intact. In the seven transportation ac- rity of this Nation, and the source of 20 cidents that have occurred, no radioactivity fuel from the U.S. Navy reactors cur- percent of our country’s electricity, was ever released. rently stored at the Idaho National En- nuclear power, drowns in its own Although the risk will never be eliminated, gineering and Environmental Labora- waste. the alternative is unacceptable. High-level tory will begin to be sent to the in- The Nuclear Waste Policy Act of 1997 nuclear waste cannot continue to be stock- terim storage facility beginning in will do what neither the 1982 nor the piled at the 73 existing sites. Many reactor 1999. This is good news for both the 1987 act accomplished, and that is to sites either have been decommissioned or are DOE and for Idaho. Spent nuclear fuel definitively resolve the question of running out of room. Experts say Connecti- will be moved out of Idaho well before cut Yankee’s spent fuel could be stored at what to do with spent nuclear fuel in a Haddam Heck for another 30 years if Con- the agreed date of 2035 called for in the timely manner. I look forward to its gress fails to approve a temporary facility. agreement between Idaho Governor successful passage.∑ Unfortunately, the hands of the clock can’t Batt, the DOE and the Navy. The fuel f be turned back to a time when nuclear waste that is now temporarily stored in Idaho didn’t exist. In terms of its disposal, a re- will be at the designated facility de- APPOINTMENTS BY THE mote desert site in Nevada is the lesser of signed for long term disposal. PRESIDENT PRO TEMPORE two evils.∑ In my opinion, this legislation is im- The PRESIDING OFFICER. The f portant because it closes off the ‘‘es- Chair, on behalf of the President pro cape routes’’ that exist in past legisla- tempore, in accordance with Public THE NUCLEAR WASTE POLICY ACT tion on this issue and have stymied the Law 99–498, Section 1505(a)(1)(B)(ii), ap- OF 1997 opening of a facility that actually ac- points the Senator from Colorado [Mr. ∑ Mr. CRAIG. Mr. President, I am very cepts spent nuclear fuel and stores or CAMPBELL] to the Board of Trustees of pleased that the Senate is now pre- disposes of it at a permanent facility. the Institute of American Indian and pared to take up the Nuclear Waste S. 104 closes these escape routes by Alaska Native Culture and Arts Devel- Policy Act of 1997. It is time that this specifying an interim facility location opment. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2733 AUTHORITY FOR COMMITTEES TO Wuerffel should be commended for this Craig Dudley REPORT high honor. Dwight Edge It is also important to note that for Bart Edmiston Mr. SANTORUM. Mr. President, I Jerome Evans ask unanimous consent the committees the first time since the NCAA has been McDonald Ferguson have between 10 a.m. and 2 p.m. keeping records, two division I college Rod Frazier Wednesday, April 2, to file legislative football teams from the same State Tony George or executive reported legislation. have played each other for college foot- Rod Graddy The PRESIDING OFFICER. Without ball’s national championship. Jacquez Green Buck Gurley objection, it is so ordered. I also want to take this moment to honor Coach Bobby Bowden and the Fred Hagberg f Florida State University football team Mike Harris Thomas Hewitt COMMENDING THE UNIVERSITY OF for their outstanding season and for Ike Hilliard FLORIDA FOOTBALL TEAM reaching the national championship Todd Holland game. While they didn’t win the game, Al Jackson Mr. SANTORUM. Mr. President, I the Seminoles and their fans should be Denise Stevens ask unanimous consent that the Sen- proud of their achievements and com- Tom Williams ate proceed to the immediate consider- mended for an outstanding season. Demetric Jackson ation of S. Res. 66 submitted earlier The State of Florida is indeed fortu- Terry Jackson Doug Johnson today by Senators MACK and GRAHAM. nate to be home to three of the finest The PRESIDING OFFICER. The Ryan Kalich college football teams in the Nation: Nafis Karim clerk will report. The University of Florida, Florida The legislative clerk read as follows: Jevon Kearse State University, and the University of Trey Killingsworth A resolution (S. Res. 66) commending the Miami. Together these three teams Erron Kinney University of Florida Football Team for win- combined have won six college football Sean Ladd ning the 1996 Division 1 Collegiate Football national championships. Demetrius Lewis National Championship. Anthone Lott But in 1996, the national football The PRESIDING OFFICER. Is there Eugene McCaslin championship was won by the Univer- Xavier McCray objection to the immediate consider- sity of Florida. Not only is this a spe- ation of the resolution? Reggie McGrew cial accomplishment that will long be Travis McGriff There being no objection, the Senate remembered by the coaches and play- Anthony Mitchell proceeded to consider the resolution. ers, but it is also a moment to savor Jeff Mitchell Mr. MACK. Mr. President, I rise for Gator fans. After 90 years of ups Dwayne Mobley Mike Moten today to introduce a resolution salut- and downs, great victories and frustra- ing the University of Florida football David Nabavi tion, the Fightin’ Gators are finally Shawn Nunn team on winning the 1996 National the national champions of college foot- Football Championship. Daryl Owens ball. All the loyal sons and daughters Alonza Pendergrass As a proud alumnus of the University of the University of Florida—wherever Jason Perry of Florida, I join with all those who they may be—join me today in con- Mike Peterson have worn the Orange and Blue—both gratulating Coach Steve Spurrier, his Zach Piller Dock Pollard on and off the field—in honoring Coach staff, and the 1996 Fightin’ Gator foot- Steve Spurrier, his staff and the foot- Alan Rhine ball team on winning the 1996 college Jamie Richardson ball team for this outstanding accom- football’s national championship. plishment. Larry Richart Mr. President, I ask unanimous con- Wyley Ritch From its humble beginnings in 1906 sent to print in the RECORD the names Willie Rodgers to the present, the University of Flor- of the Gator players, coaches, and staff Taras Ross ida’s football program has had a rich along with their season record and the Johnny Rutledge and proud history. But 1996 will be for- final polls with the Florida Gators in Brian Schottenheimer Nick Schiralli ever known in the hearts and minds of the top position as the national cham- the Gator faithful as ‘‘The Year of the Shea Showers pions. Teddy Sims Gator.’’ There being no objection, the list was From the season opener in ‘‘The Ian Skinner ordered to be printed in the RECORD, as Robby Stevenson Swamp’’ to the national championship follows: Deac Story title game in the Sugar Bowl, the Fred Taylor UNIVERSITY OF FLORIDA 1996 NATIONAL Gator faithful knew that with Steve Matt Teague FOOTBALL CHAMPIONS Spurrier as their coach and Danny Dwayne Thomas Wuerffel as the team’s quarterback, Players Kavin Walton field leader and spiritual leader, the Tremayne Allen Cedric Warren 1996 season would indeed be one to re- Reidel Anthony Fred Weary Ernie Badeaux member. Elijah Williams Tyrone Baker Scott Wise The 1996 football team compiled a James Bates Lawrence Wright record of 12 wins and 1 loss and Ronnie Battle Danny Wuerffel outscored their opponents 611 to 221 Tim Beauchamp Jon Xynidis points in winning its fourth consecu- Cheston Blackshear Correy Yarbrough tive SEC championship and its first- Noah Brindise Billy Young ever national football championship. Teako Brown Donnie Young For this achievement, the University Pat Browning Michael Younkins Scott Bryan of Florida was recognized by the Asso- Zac Zedalis Zuri Buchanan President: Dr. John Lombardi ciated Press and major college football Jayme Campbell coaches as the 1996 national cham- Cooper Carlisle Director of Athletics: Jeremy Foley pions. Derrick Chambers Coaching Staff This season will also be remembered Ed Chester Head Coach Steve Spurrier because for the first time in the his- Willie Cohens Rod Broadway tory of the Heisman Trophy, an award Mo Collins Jim Collins which is presented annually to college Collins Cooper Dwayne Dixon Keith Council Carl Franks football’s most outstanding player, the Camerson Davis Lawson Holland winner played under a head coach who Reggie Davis Bob Sanders also had won the Heisman Trophy. Jason Dean Jimmy Ray Stephens Coach Steve Spurrier and Danny Ernie Dubose Bob Stoops S2734 CONGRESSIONAL RECORD — SENATE March 20, 1997 Barry Wilson 15. University of Washington least nine games in each season since Steve Spurrier, Jr. 16. Northwestern University his arrival. The 1996 Florida Gators Aubrey Hill 17. Kansas State University have the distinct honor of winning an Strength & Conditioning 18. University of Iowa unprecedented fourth consecutive 19. Syracuse University Jerry Schmidt 20. University of Michigan Southeastern Conference championship Rob Glass 21. University of Notre Dame and their fifth since Coach Spurrier’s Patt Moorer 22. University of Wyoming arrival. Over the past seven seasons, Randy Popple 23. University of Texas Coach Spurrier and his talented staff of Support Staff 24. U.S. Military Academy (Army) assistants have posted a remarkable Norm Carlson 25. Auburn University record of 73 wins on the football field, Dr. Keith Carodine Mr. GRAHAM. Mr. President, I rise and in the always tough, Southeastern Bud Fernandez today with my distinguished colleague Conference, the Gators have achieved a Dave Houts and fellow Florida Gator, Senator John Humenik remarkable record of 53 wins. During Dr. Pete Indelicato CONNIE MACK, to congratulate this his tenure, the Gators have lost ex- Jeff Kamis year’s national champions and one of actly two games at Ben Hill Griffin Betty Ling the top football programs in the his- Stadium, an 80,000 seat fortress that Greg McGarity tory of the Southeastern Conference, Spurrier has dubbed ‘‘the swamp.’’ Chris Partick the University of Florida Gators. The It is clear that the University of Nancy Sain Gators clinched their first national Florida Gators have been winners on Tim Sain championship in football on January 2, the football field, but their winning Dr. Dick Shaara 1997 when they defeated the Florida Danny Sheldon doesn’t stop there. Academically, the State University Seminoles in the Lou- Gators have excelled equally as well. Jamie Speronis isiana Superdome in New Orleans. This Mike Wasik They have achieved a tremendous grad- year’s triumph is indeed special and uation rate for an NCAA Division I 1996 SCHEDULE came on the heels of a perfect nine win football program, and 16 members of August 31st .. Florida 55 SW Louisiana 21 season in the Southeastern Conference, this year’s team were named to the September 7th Florida 62 Georgia Southern 14 which is, as my colleagues know, one of September Florida 29 Tennessee 29 Southeastern Conference’s Academic 21st. the toughest leagues in college foot- Honor Roll. In addition to their awards September Florida 65 Kentucky 0 ball. 28th. for athletic achievement, Lawrence The Gators defeated the Florida October 5th ... Florida 42 Arkansas 7 Wright and Danny Wuerffel both re- October 12th Florida 56 Louisiana State 13 State football team by a score of 52–20 October 19th Florida 51 Auburn 10 ceived Scholar-Athlete Awards from November 2nd Florida 47 Georgia 7 in the Sugar Bowl on January 2nd. It November 9th Florida 28 Vanderbilt 21 was truly an impressive and memo- the College Football Association. November Florida 52 South Carolina 25 rable display of leadership, dedication Their achievements don’t stop on the 16th. football field, however. The Gators November Florida 21 Florida State 24 and teamwork by a college football 30th. team. This historic victory by the have also been major contributors to 1996 SEC CHAMPIONSHIP GAME the greater Gainesville community December 7th Florida 45 Alabama 30 Gators not only brought with it the team’s first national championship, where they volunteer countless hours 1996 NATIONAL CHAMPIONSHIP GAME in support of worthy causes like a lit- January 2nd .. Florida 52 Florida State 20 but the Gators also set an unprece- dented number of bowl records includ- eracy program, an international youth 1996 FINAL DIVISION 1 RANKINGS ing the largest margin of victory education program and support stu- dents with disabilities. ASSOCIATED PRESS POLL against a No. 1 ranked team and the As a Gator and a graduate of the Uni- 1. University of Florida most points scored in a Sugar Bowl 2. Ohio State University game. versity of Florida, I am extremely 3. Florida State University I would also like to commend Florida proud of the 1996 Florida Gators and 4. Arizona State University State’s Head Coach, Bobby Bowden and Head Coach Steve Spurrier for their 5. Brigham Young University his fine team of football players for outstanding achievements both on and 6. University of Nebraska their magnificent season and for earn- off of the football field. 7. Penn State University ing the right to play in the national Mr. SANTORUM. Mr. President, I 8. University of Colorado take some pride in that my brother 9. University of Tennessee championship. Although Florida State didn’t win the game on January 2nd, graduated from the University of Flor- 10. University of North Carolina ida. So I will join in those congratula- 11. University of Alabama they had a great season and they and 12. Louisiana State University their fans should be proud of their ac- tions. 13. Virginia Tech University complishments. I ask unanimous consent that the 14. University of Miami (Fla) The Gators managed to play its full resolution be agreed to, the preamble 15. Northwestern University complement of players during the sea- be agreed to, the motion to reconsider 16. University of Washington son and devastated their opponents by be laid upon the table, and that any 17. Kansas State University averaging: 46.6 points per game, 333.9 statements relating to the resolution 18. University of Iowa yards passing per game and 503.9 yards appear at this point in the RECORD. 19. University of Notre Dame The PRESIDING OFFICER. Without 20. University of Michigan total offense per game. Among their 21. Syracuse University numerous record breaking achieve- objection, it is so ordered. 22. University of Wyoming ments on the football field, the Gators’ The resolution (S. Res. 66) was agreed 23. University of Texas players also managed to bring home to. 24. Auburn University the Heisman Trophy, the Maxwell The preamble was agreed to. 25. U.S. Military Academy (Army) Award, the Unitas Award, the Davey The resolution, with its preamble, is USA TODAY/CNN COACHES POLL O’Brien Award and the Thorpe Award as follows: 1. University of Florida to name just a few. S. RES. 66 2. Ohio State University Under the extraordinary tutelage and Whereas the University of Florida can 3. Florida State University superior leadership of Head Coach trace its beginnings to 1853 but was formally 4. Arizona State University Steve Spurrier, the University of Flor- established by the State of Florida when 5. Brigham Young University ida football program rose above all Florida Agricultural College merged with 6. University of Nebraska others on the field in 1996. Prior to his East Florida Seminary, South Florida Mili- 7. Penn State University arrival in 1990, no Florida Gator foot- tary College, and St. Petersburg Normal & 8. University of Colorado ball team had captured an official Industrial School in 1905 9. University of Tennessee Whereas the University of Florida adopted 10. Univerity of North Carolina Southeastern Conference championship the colors of orange and blue for its athletic 11. University of Alabama in 56 years even though the university team in 1905 and the alligator as the school’s 12. Virginia Tech University was a charter member of the league. mascot in 1908; 13. Louisiana State University That trend changed in 1990, and Whereas the origins of intercollegiate foot- 14. University of Miami (Fla) Coach Spurrier’s Gators have won at ball at the University of Florida can be March 20, 1997 CONGRESSIONAL RECORD — SENATE S2735 traced back to 1901, when Dr. T.H. (2) recognizes the achievements of all the assist the parties in promoting their Taliaferro, president of the Florida State Ag- players, coaches, and support staff who were legislative agenda. House Speaker Sam ricultural College, enthusiastically endorsed instrumental in helping the University of Rayburn feared that such policy com- the new sport of football and by that deed Florida win the 1996 Division I collegiate mittees might threaten his authority ensured that the University of Florida football national championship and invites Fightin’ Gator football team exists today; them to the Capitol to be honored in an ap- and refused to support them. Although Whereas the University of Florida is a propriate manner to be determined; the idea was dropped from the Legisla- founding member of the Southeastern Con- (3) requests that the President recognize tive Reorganization Act, it was shortly ference, considered by many to be the tough- the accomplishments and achievements of thereafter incorporated in an appro- est conference in college football; the 1996 University of Florida Fightin’ Gator priations bill but authorized policy Whereas the students, alumni, and friends football team and invite the team to Wash- committees for the Senate alone. Some of the University of Florida are to be com- ington, D.C. for the traditional White House mended for the dedication, enthusiasm, and time later the House also established ceremony held for national championship admiration they share for the Fightin’ Gator policy committees. teams; and football team; Chief credit for the policy commit- (4) directs the Secretary of the Senate to Whereas in 1990, Stephen Orr Spurrier, the tees belongs to Ohio Republican Sen- most fabled football player in the history of make available enrolled copies of this resolu- tion to the University of Florida for appro- ator Robert A. Taft. As chairman of the University of Florida and winner of the the Republican Steering Committee, Heisman Trophy in 1966, was hired to be the priate display and to transmit an enrolled head football coach to lead the team to the copy to each member of the 1996 University from 1944 to 1946, Taft firmly believed ever elusive ‘‘Year of the Gator’’; of Florida Division I collegiate national in thorough preparation and expertise. Whereas in 1992, Coach Spurrier and his as- championship football team. Although Republicans were then in the sistant coaches recruited a group of talented f minority, Taft used the Steering Com- athletes who went on to form the nucleus of mittee to plan and coordinate the par- AUTHORIZING THE PRINTING OF the 1996 football team; ty’s legislative program, rather that Whereas the 1996 Fightin’ Gator football THE HISTORY MANUSCRIPT OF wait to react defensively against the team compiled a record of 12 wins and 1 loss THE REPUBLICAN AND DEMO- initiatives of the President and the ma- and outscored their opponents by a margin CRATIC POLICY COMMITTEES of 611 points to 221 points, and for this jority party. Under Taft the Steering achievement the Fightin’ Gator football Mr. SANTORUM. Mr. President, I Committee helped Republican Senators team was recognized by the Associated Press ask unanimous consent that the Sen- become better informed on pending is- and the Division I college football coaches as ate proceed to the immediate consider- sues. His staff ran evening meetings college football’s 1996 Division I national ation of S. Res. 67 submitted earlier that some called a night school for champions; Whereas the 1996 Fightin’ Gators football today by Senators CRAIG and REID. Senators. The Republican Steering team and coaches are to be commended for The PRESIDING OFFICER. The Committee became the model for the winning the school’s first Division I colle- clerk will report. proposed policy committees. Indeed, giate football national championship. The legislative clerk read as follows: when the policy committees were writ- Whereas the 1996 Fightin’ Gator football A resolution (S. Res. 67) authorizing the ten into law, the Republican Con- team broke several school, Southeastern printing of the history manuscript of the Re- ference simply redesignated its Steer- Conference, and Division I football records publican and Democratic Policy Committees ing Committee as the Republican Pol- during the 1996 football season; in Commemoration of their 50th Anniver- Whereas the 1996 senior class of the icy Committee. Chairman Taft and all saries. Fightin’ Gator football team should be com- of the other members of the Steering mended for their leadership and their ‘‘team The PRESIDING OFFICER. Is there Committee become the first members first’’ approach that helped win the 1996 Di- objection to the immediate consider- of the Policy Committee. vision I collegiate football national cham- ation of the resolution? The Republican Policy Committee pionship, 4 consecutive Southeastern Con- There being no objection, the Senate came into existence at the beginning of ference football championships, and the proceeded to consider the resolution. most victories for a senior class in school the 80th Congress, just as Republicans history; Mr. CRAIG. Mr. President, I rise to resumed the majority in the Senate Whereas Danny Wuerffel, the team’s quar- speak on ‘‘A History of the Senate Re- and House. The 50th anniversary finds terback, field leader, and spiritual leader publican Policy Committee, 1947–1997.’’ Republicans back in the majority in should be commended for winning numerous Fifty years ago, the Senate estab- both Houses of Congress. Over the awards and accolades for his performance lished the Republican and Democratic years the Policy Committee’s services during the 1996 football season including the policy committees. At the end of the and functions have expanded consider- Heisman Trophy, which is presented yearly Second World War and at the beginning to college football’s most outstanding play- ably. Since 1947, it has produced the er, and the Draddy Scholarship Trophy, of the cold war, U.S. Senators had con- very useful Record Vote Analyses. which is presented annually to the Nation’s cluded that this venerable old institu- Since 1956, it has hosted working premier football scholar athlete; tion needed modernization to enable it lunches each week for Republican Sen- Whereas Lawrence Wright, the team’s to handle the increasingly complex for- ators. Since 1987, it has operated an in- strong safety, should be commended for win- eign and domestic issues on its agenda, house bulletin-board cable information ning the prestigious Jim Thorpe Award, and to hold its own against an expand- which is presented yearly to college foot- channel to keep Senators and their ball’s most outstanding defensive back; ing presidential influence. staffs apprised of Senate floor activi- Whereas Reidel Anthony, one of the team’s From 1945 to 1946, a joint committee ties and the upcoming agenda. In 1995, clutch wide receivers, should be commended chaired by Senator Robert M. the Policy Committee stood among the for being selected by both the Football writ- LaFollette, Jr., a Republican from Wis- first Senate offices to develop a home ers Association and the Associated Press to consin, and Representative Mike page on the Internet’s World Wide Web, their respective college football All-Amer- Monroney, an Oklahoma Democrat, in- to provide information inside and out- ican teams; Whereas Ike Hilliard, another of the team’s vestigated ways to reform the legisla- side the Senate on its publications, and deep threats at wide receiver, should be com- tive branch. The joint committee pro- to share information on key Repub- mended for being selected by the Walter posed creation of professional staffs for lican policies. Camp Football Foundation as a member of each standing committee and allowing The Policy Committee staff prepares its college football All-American team; Senators and Representatives to ap- both brief and indepth reports on the Whereas all the loyal sons and daughters of point administrative assistants. It also major issues facing the Senate. The the University of Florida join together in recommended expansion of the Legisla- honoring Coach Spurrier and the 1996 Florida Policy Committee conducts seminars Fightin’ Gators for winning the 1996 NCAA tive Reference Service, now known as for new legislative staff members, and Division I football championship; and the Congressional Research Service. holds issue forums and roundtable dis- Whereas the 1996 season will be known for- Those reforms were incorporated into cussions for Senators. It also hosts reg- ever in the hearts and minds of the Univer- the Legislative Reorganization Act of ular meetings for staff directors, legis- sity of Florida faithful as the ‘‘Year of the 1946. lative directors, and press secretaries. Gator’’: Now, therefore, be it One proposal that was not included During its first 50 years, the Repub- Resolved, That the Senate— (1) commends the University of Florida for in the act was the joint committee’s lican Policy Committee grew into a winning the 1996 Division I collegiate foot- recommendation that the Senate and thriving operation staffed by a variety ball national championship; House establish policy committees to of experts. Working directly with the S2736 CONGRESSIONAL RECORD — SENATE March 20, 1997 Senators, and educating the journalists (1) 1,000 copies for use of the Senate, to be The PRESIDING OFFICER. Is there who report on them, the Policy Com- allocated as determined by the Secretary of objection to the immediate consider- mittee has assisted Republican Sen- the Senate; or ation of the bill? (2) a number of copies that does not have a There being no objection, the Senate ators in setting policy, enacting legis- total production and printing cost of more lation, and getting their message out. than $1,200. proceeded to consider the bill. That is an accomplishment entirely f Mr. SANTORUM. Mr. President, I consistent with the goals that Robert ask unanimous consent that the bill be Taft set in founding the Republican NATIONAL FORMER PRISONER OF considered read a third time, passed, Policy Committee. The story of how WAR RECOGNITION DAY and the motion to reconsider be laid those goals were achieved is contained Mr. SANTORUM. Mr. President, I upon the table, and that any state- in the history of the Policy Committee ask unanimous consent that the Sen- ments relating to the bill be placed at that was prepared by the Senate His- ate proceed to the immediate consider- the appropriate place in the RECORD. torical Office, and will now be avail- ation of S. Res. 68 submitted earlier The PRESIDING OFFICER. Without able for Senators, staff, students, and today by Senators SPECTER and AKAKA. objection, it is so ordered. the general public. The PRESIDING OFFICER. The The bill (H.R. 514) was passed. I understand that the Democratic clerk will report. f Policy Committee is considering a The legislative clerk read as follows: companion publication, and I would ESTATE TAX RELIEF FOR THE A resolution (S. Res. 68) designating April AMERICAN FAMILY ACT OF 1997 like to take this opportunity to con- 9, 1997 and April 9, 1998 as ‘‘National Former gratulate its chairman, Senator TOM Prisoner of War Recognition Day.’’ Mr. SANTORUM. Mr. President, I DASCHLE, and cochairman, Senator The PRESIDING OFFICER. Is there ask unanimous consent that the text of HARRY REID, on our mutual 50th anni- objection to the immediate consider- S. 479, the Estate Tax Relief for the versary. ation of the resolution? American Family Act of 1997, be print- Mr. SANTORUM. Mr. President, I There being no objection, the Senate ed in the RECORD. ask unanimous consent that the reso- proceeded to consider the resolution. There being no objection, the bill was lution be agreed to, the motion to re- Mr. SANTORUM. Mr. President, I ordered to be printed in the RECORD, as consider be laid upon the table, and ask unanimous consent that the reso- follows: that any statements relating to the lution be agreed to, the preamble be S. 479 resolution appear at this point in the agreed to, the motion to reconsider be Be it enacted by the Senate and House of Rep- RECORD. laid upon the table, and that any state- resentatives of the United States of America in The PRESIDING OFFICER. Without ments relating to the resolution appear Congress assembled, objection, it is so ordered. at this point in the RECORD. SECTION 1. SHORT TITLE; AMENDMENT OF 1986 The resolution (S. Res. 67) was agreed The PRESIDING OFFICER. Without CODE. to. objection, it is so ordered. (a) SHORT TITLE.—This Act may be cited as The resolution is as follows: The resolution (S. Res. 68) was agreed the ‘‘Estate Tax Relief for the American Family Act of 1997’’. S. RES. 67 to. (b) AMENDMENT OF 1986 CODE.—Except as SECTION 1. PRINTING OF THE HISTORY MANU- The preamble was agreed to. otherwise expressly provided, whenever in SCRIPT OF THE REPUBLICAN POL- The resolution, with its preamble, is ICY COMMITTEE IN COMMEMORA- this Act an amendment or repeal is ex- TION OF ITS 50TH ANNIVERSARY. as follows: pressed in terms of an amendment to, or re- (a) IN GENERAL.—There shall be printed as S. RES. 68 peal of, a section or other provision, the ref- a Senate document the book entitled, ‘‘A Whereas the United States has fought in erence shall be considered to be made to a History of the Senate Republican Policy many wars; section or other provision of the Internal Committee, 1947–1997,’’ prepared by the Sen- Whereas thousands of members of the Revenue Code of 1986. ate Historical Office under the supervision of Armed Forces of the United States who SEC. 2. INCREASE IN UNIFIED ESTATE AND GIFT the Secretary of the Senate, with the con- served in such wars were captured by the TAX CREDIT. currence of the U.S. Senate Republican Pol- enemy and held as prisoners of war; (a) ESTATE TAX CREDIT.— icy Committee. Whereas many prisoners of war were sub- (1) IN GENERAL.—Section 2010(a) (relating (b) SPECIFICATIONS.—The Senate document jected to brutal and inhumane treatment by to unified credit against estate tax) is described in subsection (a) shall include il- their captors in violation of international amended by striking ‘‘$192,800’’ and inserting lustrations and shall be in the style, form, codes and customs for the treatment of pris- ‘‘the applicable credit amount’’. manner, and binding as directed by the Joint oners of war and died, or were disabled, as a (2) APPLICABLE CREDIT AMOUNT.—Section Committee on Printing after consultation result of the treatment; and 2010 is amended by redesignating subsection with the Secretary of the Senate. Whereas the great sacrifices of the pris- (c) as subsection (d) and by inserting after (c) NUMBER OF COPIES.—In addition to the oners of war and their families deserve na- subsection (b) the following new subsection: usual number of copies, there shall be print- tional recognition: Now, therefore, be it ‘‘(c) APPLICABLE CREDIT AMOUNT.—For pur- ed with suitable binding the lesser of— Resolved, That the Senate— poses of this section, the applicable credit (1) 1,000 copies for use of the Senate, to be (1) designates April 9, 1997, and April 9, amount is the amount of the tentative tax allocated as determined by the Secretary of 1998, as ‘‘National Former Prisoner of War which would be determined under the rate the Senate; or Recognition Day’’ in honor of the members schedule set forth in section 2001(c) if the (2) a number of copies that does not have a of the Armed Forces of the United States amount with respect to which such tentative total production and printing cost of more who have been held as prisoners of war; and tax is to be computed were the applicable ex- than $1,200. (2) requests that the President issue a clusion amount determined in accordance SEC. 2. PRINTING OF THE HISTORY MANUSCRIPT proclamation calling on the people of the with the following table: OF THE DEMOCRATIC POLICY COM- United States to commemorate this day with ‘‘In the case of estates of The applicable MITTEE IN COMMEMORATION OF ITS appropriate ceremonies and activities. 50TH ANNIVERSARY. decedents dying, and exclusion f (a) IN GENERAL.—There shall be printed as gifts made, during: amount is: a Senate document the book entitled, ‘‘A 1997 ...... $700,000 WAIVER OF D.C. RESIDENCY 1998 ...... $800,000 History of the Senate Democratic Policy REQUIREMENTS Committee, 1947–1997,’’ prepared by the Sen- 1999 ...... $850,000 ate Historical Office under the supervision of Mr. SANTORUM. Mr. President, I 2000 ...... $900,000 the Secretary of the Senate, with the con- ask unanimous consent the Senate pro- 2001 ...... $950,000 currence of the U.S. Senate Democratic Pol- ceed to the immediate consideration of 2002 or thereafter ...... $1,000,000.’’ icy Committee. H.R. 514, which was received from the (3) CONFORMING AMENDMENTS.— (b) SPECIFICATIONS.—The Senate document House. (A) Section 6018(a)(1) is amended by strik- ing ‘‘$600,000’’ and inserting ‘‘the applicable described in subsection (a) shall include il- The PRESIDING OFFICER. The lustrations and shall be in the style, form, exclusion amount in effect under section manner, and binding as directed by the Joint clerk will report. 2010(c) for the calendar year which includes Committee on Printing after consultation The legislative clerk read as follows: the date of death’’. with the Secretary of the Senate. A bill (H. R. 514) to permit the waiver of (B) Section 2001(c)(2) is amended by strik- (c) NUMBER OF COPIES.—In addition to the D.C. residency requirements for certain em- ing ‘‘$21,040,000’’ and inserting ‘‘the amount usual number of copies, there shall be print- ployees of the Office of Inspector General of at which the average tax rate under this sec- ed with suitable binding the lesser of— the District of Columbia. tion is 55 percent’’. March 20, 1997 CONGRESSIONAL RECORD — SENATE S2737 (C) Section 2102(c)(3)(A) is amended by the decedent’s spouse) between the date of ‘‘(B) any interest in an entity, if the stock striking ‘‘$192,800’’ and inserting ‘‘the appli- the gift and the date of the decedent’s death, or debt of such entity or a controlled group cable credit amount in effect under section over (as defined in section 267(f)(1)) of which such 2010(c) for the calendar year which includes ‘‘(B) the amount of such gifts from the de- entity was a member was readily tradable on the date of death’’. cedent to members of the decedent’s family an established securities market or second- (b) UNIFIED GIFT TAX CREDIT.—Section otherwise included in the gross estate. ary market (as defined by the Secretary) at 2505(a)(1) (relating to unified credit against ‘‘(c) ADJUSTED GROSS ESTATE.—For pur- any time within 3 years of the date of the de- gift tax) is amended by striking ‘‘$192,800’’ poses of this section, the term ‘adjusted cedent’s death, and inserting ‘‘the applicable credit amount gross estate’ means the value of the gross es- ‘‘(C) any interest in a trade or business not in effect under section 2010(c) for such cal- tate (determined without regard to this sec- described in section 542(c)(2), if more than 35 endar year’’. tion)— percent of the adjusted ordinary gross in- (c) EFFECTIVE DATE.—The amendments ‘‘(1) reduced by any amount deductible come of such trade or business for the tax- made by this section shall apply to the es- under paragraph (3) or (4) of section 2053(a), able year which includes the date of the de- tates of decedents dying, and gifts made, and cedent’s death would qualify as personal after the date of the enactment of this Act. ‘‘(2) increased by the excess of— holding company income (as defined in sec- SEC. 3. FAMILY-OWNED BUSINESS EXCLUSION. ‘‘(A) the sum of— tion 543(a)), (a) IN GENERAL.—Part III of subchapter A ‘‘(i) the amount of gifts determined under ‘‘(D) that portion of an interest in a trade of chapter 11 (relating to gross estate) is subsection (b)(3), plus or business that is attributable to— amended by inserting after section 2033 the ‘‘(ii) the amount (if more than de minimis) ‘‘(i) cash or marketable securities, or both, following new section: of other transfers from the decedent to the in excess of the reasonably expected day-to- ‘‘SEC. 2033A. FAMILY-OWNED BUSINESS EXCLU- decedent’s spouse (at the time of the trans- day working capital needs of such trade or SION. fer) within 10 years of the date of the dece- business, and ‘‘(a) IN GENERAL.—In the case of an estate dent’s death, plus ‘‘(ii) any other assets of the trade or busi- of a decedent to which this section applies, ‘‘(iii) the amount of other gifts (not in- ness (other than assets used in the active the value of the gross estate shall not in- cluded under clause (i) or (ii)) from the dece- conduct of a trade or business described in clude the lesser of— dent within 3 years of such date, other than section 542(c)(2)), the income of which is de- ‘‘(1) the adjusted value of the qualified gifts to members of the decedent’s family scribed in section 543(a) or in subparagraph family-owned business interests of the dece- otherwise excluded under section 2503(b), (B), (C), (D), or (E) of section 954(c)(1) (deter- dent otherwise includible in the estate, or over mined by substituting ‘trade or business’ for ‘‘(2) the sum of— ‘‘(B) the sum of the amounts described in ‘controlled foreign corporation’). ‘‘(A) $1,500,000, plus clauses (i), (ii), and (iii) of subparagraph (A) ‘‘(3) RULES REGARDING OWNERSHIP.— ‘‘(B) 50 percent of the excess (if any) of the which are otherwise includible in the gross ‘‘(A) OWNERSHIP OF ENTITIES.—For purposes adjusted value of such interests over estate. of paragraph (1)(B)— $1,500,000, but not over $10,000,000. For purposes of the preceding sentence, the ‘‘(i) CORPORATIONS.—Ownership of a cor- ‘‘(b) ESTATES TO WHICH SECTION APPLIES.— Secretary may provide that de minimis gifts poration shall be determined by the holding ‘‘(1) IN GENERAL.—This section shall apply to persons other than members of the dece- of stock possessing the appropriate percent- to an estate if— dent’s family shall not be taken into ac- age of the total combined voting power of all ‘‘(A) the decedent was (at the date of the count. classes of stock entitled to vote and the ap- decedent’s death) a citizen or resident of the ‘‘(d) ADJUSTED VALUE OF THE QUALIFIED propriate percentage of the total value of United States, FAMILY-OWNED BUSINESS INTERESTS.—For shares of all classes of stock. ‘‘(B) the executor elects the application of purposes of this section, the adjusted value ‘‘(ii) PARTNERSHIPS.—Ownership of a part- this section and files the agreement referred of any qualified family-owned business inter- nership shall be determined by the owning of to in subsection (h), est is the value of such interest for purposes the appropriate percentage of the capital in- ‘‘(C) the sum of— of this chapter (determined without regard terest in such partnership. ‘‘(i) the adjusted value of the qualified to this section), reduced by the excess of— ‘‘(B) OWNERSHIP OF TIERED ENTITIES.—For family-owned business interests described in ‘‘(1) any amount deductible under para- purposes of this section, if by reason of hold- paragraph (2), plus graph (3) or (4) of section 2053(a), over ing an interest in a trade or business, a dece- ‘‘(ii) the amount of the gifts of such inter- ‘‘(2) the sum of— dent, any member of the decedent’s family, ests determined under paragraph (3), ‘‘(A) any indebtedness on any qualified res- any qualified heir, or any member of any exceeds 50 percent of the adjusted gross es- idence of the decedent the interest on which qualified heir’s family is treated as holding tate, and is deductible under section 163(h)(3), plus an interest in any other trade or business— ‘‘(D) during the 8-year period ending on the ‘‘(B) any indebtedness to the extent the ‘‘(i) such ownership interest in the other date of the decedent’s death there have been taxpayer establishes that the proceeds of trade or business shall be disregarded in de- periods aggregating 5 years or more during such indebtedness were used for the payment termining if the ownership interest in the which— of educational and medical expenses of the first trade or business is a qualified family- ‘‘(i) such interests were owned by the dece- decedent, the decedent’s spouse, or the dece- owned business interest, and dent or a member of the decedent’s family, dent’s dependents (within the meaning of ‘‘(ii) this section shall be applied sepa- and section 152), plus rately in determining if such interest in any ‘‘(ii) there was material participation ‘‘(C) any indebtedness not described in sub- other trade or business is a qualified family- (within the meaning of section 2032A(e)(6)) paragraph (A) or (B), to the extent such in- owned business interest. by the decedent or a member of the dece- debtedness does not exceed $10,000. ‘‘(C) INDIVIDUAL OWNERSHIP RULES.—For dent’s family in the operation of the business ‘‘(e) QUALIFIED FAMILY-OWNED BUSINESS IN- purposes of this section, an interest owned, to which such interests relate. TEREST.— directly or indirectly, by or for an entity de- ‘‘(2) INCLUDIBLE QUALIFIED FAMILY-OWNED ‘‘(1) IN GENERAL.—For purposes of this sec- scribed in paragraph (1)(B) shall be consid- BUSINESS INTERESTS.—The qualified family- tion, the term ‘qualified family-owned busi- ered as being owned proportionately by or owned business interests described in this ness interest’ means— for the entity’s shareholders, partners, or paragraph are the interests which— ‘‘(A) an interest as a proprietor in a trade beneficiaries. A person shall be treated as a ‘‘(A) are included in determining the value or business carried on as a proprietorship, or beneficiary of any trust only if such person of the gross estate (without regard to this ‘‘(B) an interest in an entity carrying on a has a present interest in such trust. section), and trade or business, if— ‘‘(f) TAX TREATMENT OF FAILURE TO MATE- ‘‘(B) are acquired by any qualified heir ‘‘(i) at least— RIALLY PARTICIPATE IN BUSINESS OR DISPOSI- from, or passed to any qualified heir from, ‘‘(I) 50 percent of such entity is owned (di- TIONS OF INTERESTS.— the decedent (within the meaning of section rectly or indirectly) by the decedent and ‘‘(1) IN GENERAL.—There is imposed an ad- 2032A(e)(9)). members of the decedent’s family, ditional estate tax if, within 10 years after ‘‘(3) INCLUDIBLE GIFTS OF INTERESTS.—The ‘‘(II) 70 percent of such entity is so owned the date of the decedent’s death and before amount of the gifts of qualified family- by members of 2 families, or the date of the qualified heir’s death— owned business interests determined under ‘‘(III) 90 percent of such entity is so owned ‘‘(A) the material participation require- this paragraph is the excess of— by members of 3 families, and ments described in section 2032A(c)(6)(B) are ‘‘(A) the sum of— ‘‘(ii) for purposes of subclause (II) or (III) of not met with respect to the qualified family- ‘‘(i) the amount of such gifts from the de- clause (i), at least 30 percent of such entity owned business interest which was acquired cedent to members of the decedent’s family is so owned by the decedent and members of (or passed) from the decedent, taken into account under subsection the decedent’s family. ‘‘(B) the qualified heir disposes of any por- 2001(b)(1)(B), plus ‘‘(2) LIMITATION.—Such term shall not in- tion of a qualified family-owned business in- ‘‘(ii) the amount of such gifts otherwise ex- clude— terest (other than by a disposition to a mem- cluded under section 2503(b), ‘‘(A) any interest in a trade or business the ber of the qualified heir’s family or through to the extent such interests are continuously principal place of business of which is not lo- a qualified conservation contribution under held by members of such family (other than cated in the United States, section 170(h)), S2738 CONGRESSIONAL RECORD — SENATE March 20, 1997 ‘‘(C) the qualified heir loses United States ‘‘(B) Section 2032A(b)(5) (relating to special prescribe procedures which provide that in citizenship (within the meaning of section rules for surviving spouses). any case in which the executor makes an 877) or with respect to whom an event de- ‘‘(C) Section 2032A(c)(2)(D) (relating to par- election under paragraph (1) (and submits scribed in subparagraph (A) or (B) of section tial dispositions). the agreement referred to in paragraph (2)) 877(e)(1) occurs, and such heir does not com- ‘‘(D) Section 2032A(c)(3) (relating to only 1 within the time prescribed therefor, but— ply with the requirements of subsection (g), additional tax imposed with respect to any 1 ‘‘(A) the notice of election, as filed, does or portion). not contain all required information, or ‘‘(D) the principal place of business of a ‘‘(E) Section 2032A(c)(4) (relating to due ‘‘(B) signatures of 1 or more persons re- trade or business of the qualified family- date). quired to enter into the agreement described owned business interest ceases to be located ‘‘(F) Section 2032A(c)(5) (relating to liabil- in paragraph (2) are not included on the in the United States. ity for tax; furnishing of bond). agreement as filed, or the agreement does ‘‘(2) ADDITIONAL ESTATE TAX.— ‘‘(G) Section 2032A(c)(7) (relating to no tax not contain all required information, ‘‘(A) IN GENERAL.—The amount of the addi- if use begins within 2 years; active manage- the executor will have a reasonable period of tional estate tax imposed by paragraph (1) ment by eligible qualified heir treated as time (not exceeding 90 days) after notifica- shall be equal to— material participation). tion of such failures to provide such informa- ‘‘(i) the applicable percentage of the ad- ‘‘(H) Paragraphs (1) and (3) of section tion or signatures.’’ justed tax difference attributable to the 2032A(d) (relating to election; agreement). (b) EFFECTIVE DATE.—The amendment qualified family-owned business interest (as ‘‘(I) Section 2032A(e)(10) (relating to com- made by this section shall apply to the es- determined under rules similar to the rules munity property). tates of decedents dying after the date of the of section 2032A(c)(2)(B)), plus ‘‘(J) Section 2032A(e)(14) (relating to treat- enactment of this Act. ‘‘(ii) interest on the amount determined ment of replacement property acquired in SEC. 7. 20-YEAR INSTALLMENT PAYMENT WHERE under clause (i) at the underpayment rate es- section 1031 or 1033 transactions). ESTATE CONSISTS LARGELY OF IN- tablished under section 6621 for the period ‘‘(K) Section 2032A(f) (relating to statute of TEREST IN CLOSELY HELD BUSI- beginning on the date the estate tax liability limitations). NESS. was due under this chapter and ending on the ‘‘(L) Section 6166(b)(3) (relating to farm- (a) IN GENERAL.—Section 6166(a) (relating date such additional estate tax is due. houses and certain other structures taken to extension of time for payment of estate ‘‘(B) APPLICABLE PERCENTAGE.—For pur- into account). tax where estate consists largely of interest poses of this paragraph, the applicable per- ‘‘(M) Subparagraphs (B), (C), and (D) of sec- in closely held business) is amended by strik- centage shall be determined under the fol- tion 6166(g)(1) (relating to acceleration of ing ‘‘10’’ in paragraph (1) and the heading lowing table: payment). thereof and inserting ‘‘20’’. (b) EFFECTIVE DATE.—The amendments ‘‘If the event described in ‘‘(N) Section 6324B (relating to special lien made by this section shall apply to estates of paragraph (1) occurs in for additional estate tax).’’ decedents dying after December 31, 1996. the following year of The applicable (b) CLERICAL AMENDMENT.—The table of material participation: percentage is: sections for part III of subchapter A of chap- SEC. 8. NO INTEREST ON CERTAIN PORTION OF 1 through 6 ...... 100 ter 11 is amended by inserting after the item ESTATE TAX EXTENDED UNDER 6166. 7 ...... 80 relating to section 2033 the following new (a) IN GENERAL.—Section 6601(j) (relating 8 ...... 60 item: to 4-percent rate on certain portion of estate tax extended under section 6166) is amend- 9 ...... 40 ‘‘Sec. 2033A. Family-owned business exclu- ed— 10 ...... 20. sion.’’ (1) by striking the first sentence of para- ‘‘(g) SECURITY REQUIREMENTS FOR NONCITI- (c) EFFECTIVE DATE.—The amendments graph (1) and inserting the following new ZEN QUALIFIED HEIRS.— made by this section shall apply to estates of sentence: ‘‘If the time for payment of an ‘‘(1) IN GENERAL.—Except upon the applica- decedents dying after December 31, 1997. amount of tax imposed by chapter 11 is ex- tion of subparagraph (F) or (M) of subsection SEC. 4. EXTENSION OF TREATMENT OF CERTAIN tended as provided in section 6166, no inter- (h)(3), if a qualified heir is not a citizen of RENTS UNDER SECTION 2032A TO est on the no-interest portion of such the United States, any interest under this LINEAL DESCENDANTS. amount shall (in lieu of the annual rate pro- (a) GENERAL RULE.—Paragraph (7) of sec- section passing to or acquired by such heir vided by subsection (a)) be paid.’’, tion 2032A(c) (relating to special rules for tax (including any interest held by such heir at (2) by striking ‘‘4-percent’’ each place it treatment of dispositions and failures to use a time described in subsection (f)(1)(C)) shall appears in paragraphs (2) and (3) and insert- be treated as a qualified family-owned busi- for qualified use) is amended by adding at the end the following new subparagraph: ing ‘‘no-interest’’, ness interest only if the interest passes or is (3) by striking subparagraph (A) of para- ‘‘(E) CERTAIN RENTS TREATED AS QUALIFIED acquired (or is held) in a qualified trust. graph (2) and inserting the following new ‘‘(2) QUALIFIED TRUST.—The term ‘qualified USE.—For purposes of this subsection, a sur- viving spouse or lineal descendant of the de- subparagraph: trust’ means a trust— ‘‘(A) $153,000, or’’, ‘‘(A) which is organized under, and gov- cedent shall not be treated as failing to use (4) by striking ‘‘4-PERCENT’’ in the heading erned by, the laws of the United States or a qualified real property in a qualified use of paragraph (2) and inserting ‘‘NO INTER- State, and solely because such spouse or descendant EST’’, and ‘‘(B) except as otherwise provided in regu- rents such property to a member of the fam- (5) by striking ‘‘4-PERCENT RATE’’ in the lations, with respect to which the trust in- ily of such spouse or descendant on a net heading thereof and inserting ‘‘NO INTER- strument requires that at least 1 trustee of cash basis. For purposes of the preceding EST’’. sentence, a legally adopted child of an indi- the trust be an individual citizen of the Unit- (b) CONFORMING AMENDMENTS.— vidual shall be treated as the child of such ed States or a domestic corporation. (1) Section 6166(b)(7)(A)(iii) is amended by individual by blood.’’ ‘‘(h) AGREEMENT.—The agreement referred striking ‘‘4-percent rate of interest’’ and in- to in this subsection is a written agreement (b) CONFORMING AMENDMENT.—Section 2032A(b)(5)(A) is amended by striking out the serting ‘‘no-interest portion’’. signed by each person in being who has an (2) Section 6166(b)(8)(A)(iii) is amended to interest (whether or not in possession) in last sentence. (c) EFFECTIVE DATE.—The amendments read as follows: any property designated in such agreement ‘‘(iii) NO-INTEREST PORTION NOT TO APPLY.— consenting to the application of subsection made by this section shall take effect as if included in the amendment made by section Section 6601(j) (relating to no-interest por- (f) with respect to such property. 6151 of the Technical and Miscellaneous Rev- tion) shall not apply.’’ ‘‘(i) OTHER DEFINITIONS AND APPLICABLE enue Act of 1988. (c) EFFECTIVE DATE.—The amendments RULES.—For purposes of this section— SEC. 5. INCREASE IN MAXIMUM REDUCTION IN made by this section shall apply to estates of ‘‘(1) QUALIFIED HEIR.—The term ‘qualified VALUE FOR SPECIAL USE VALU- decedents dying after December 31, 1996. heir’— ATION. SEC. 9. GIFTS MAY NOT BE REVALUED FOR ES- ‘‘(A) has the meaning given to such term (a) IN GENERAL.—Section 2032A(a)(2) (relat- TATE TAX PURPOSES AFTER EXPIRA- by section 2032A(e)(1), and ing to limitation on aggregate reduction in TION OF STATUTE OF LIMITATIONS. ‘‘(B) includes any active employee of the fair market value) is amended by striking (a) IN GENERAL.—Section 2001 (relating to trade or business to which the qualified fam- ‘‘$750,000’’ and inserting ‘‘$1,000,000’’. imposition and rate of estate tax) is amended ily-owned business interest relates if such (b) EFFECTIVE DATE.—The amendments by adding at the end the following new sub- employee has been employed by such trade made by this section shall apply to estates of section: or business for a period of at least 10 years decedents dying after December 31, 1996. ‘‘(f) VALUATION OF GIFTS.—If— before the date of the decedent’s death. SEC. 6. OPPORTUNITY TO CORRECT CERTAIN ‘‘(1) the time has expired within which a ‘‘(2) MEMBER OF THE FAMILY.—The term FAILURES UNDER SECTION 2032A. tax may be assessed under chapter 12 (or ‘member of the family’ has the meaning (a) GENERAL RULE.—Paragraph (3) of sec- under corresponding provisions of prior laws) given to such term by section 2032A(e)(2). tion 2032A(d) (relating to modification of on the transfer of property by gift made dur- ‘‘(3) APPLICABLE RULES.—Rules similar to election and agreement to be permitted) is ing a preceding calendar period (as defined in the following rules shall apply: amended to read as follows: section 2502(b)), and ‘‘(A) Section 2032A(b)(4) (relating to dece- ‘‘(3) MODIFICATION OF ELECTION AND AGREE- ‘‘(2) the value of such gift is shown on the dents who are retired or disabled). MENT TO BE PERMITTED.—The Secretary shall return for such preceding calendar period or March 20, 1997 CONGRESSIONAL RECORD — SENATE S2739 is disclosed in such return, or in a statement (2) SUBSECTION (b).—The amendment made UNANIMOUS-CONSENT attached to the return, in a manner adequate by subsection (b) shall apply to gifts made in AGREEMENT—S. 104 to apprise the Secretary of the nature of calendar years ending after the date of the such gift, enactment of this Act. Mr. SANTORUM. Mr. President, I the value of such gift shall, for purposes of SEC. 10. EXPANSION OF EXCEPTION FROM GEN- ask unanimous consent that at 2:15 computing the tax under this chapter, be the ERATION-SKIPPING TRANSFER TAX p.m. on Tuesday, April 8, 1997, there be value of such gift as finally determined for FOR TRANSFERS TO INDIVIDUALS 15 minutes equally divided for debate purposes of chapter 12.’’ WITH DECEASED PARENTS. prior to the cloture vote. (b) MODIFICATION OF APPLICATION OF STAT- (a) IN GENERAL.—Section 2651 (relating to The PRESIDING OFFICER. Without UTE OF LIMITATIONS.—Paragraph (9) of sec- generation assignment) is amended by redes- tion 6501(c) is amended to read as follows: ignating subsection (e) as subsection (f), and objection, it is so ordered. ‘‘(9) GIFT TAX ON CERTAIN GIFTS NOT SHOWN by inserting after subsection (d) the follow- ON RETURN.—If any gift of property the value ing new subsection: f of which (or any increase in taxable gifts re- ‘‘(e) SPECIAL RULE FOR PERSONS WITH A DE- quired under section 2701(d)) is required to be CEASED PARENT.— PROGRAM shown on a return of tax imposed by chapter ‘‘(1) IN GENERAL.—For purposes of deter- 12 (without regard to section 2503(b)), and is mining whether any transfer is a generation- Mr. SANTORUM. Mr. President, for not shown on such return, any tax imposed skipping transfer, if— the information of all Senators, when by chapter 12 on such gift may be assessed, ‘‘(A) an individual is a descendant of a par- the Senate reconvenes following the or a proceeding in court for the collection of ent of the transferor (or the transferor’s Easter recess, the Senate will resume such tax may be begun without assessment, spouse or former spouse), and the motion to proceed to the consider- at any time. The preceding sentence shall ‘‘(B) such individual’s parent who is a lin- ation of the nuclear waste legislation. not apply to any item which is disclosed in eal descendant of the parent of the trans- On Monday, the Senate will proceed as such return, or in a statement attached to feror (or the transferor’s spouse or former the return, in a manner adequate to apprise spouse) is dead at the time the transfer (from in morning business from the hour of 12 the Secretary of the nature of such item. which an interest of such individual is estab- noon until 1 p.m. with a 5-minute limi- The value of any item which is so disclosed lished or derived) is subject to a tax imposed tation. Senators should be aware that may not be redetermined by the Secretary by chapter 11 or 12 upon the transferor (and no rollcall votes will occur during after the expiration of the period under sub- if there shall be more than 1 such time, then Monday’s session of the Senate. The section (a).’’ at the earliest such time), next rollcall vote will occur on Tues- (c) DECLARATORY JUDGMENT PROCEDURE such individual shall be treated as if such in- FOR DETERMINING VALUE OF GIFT.— day, April 8, at 2:30 p.m. The Senate dividual were a member of the generation (1) IN GENERAL.—Part IV of subchapter C of could also be asked to turn to other chapter 76 is amended by inserting after sec- which is 1 generation below the lower of the Legislative or Executive Calendar tion 7476 the following new section: transferor’s generation or the generation as- items that may be cleared. signment of the youngest living ancestor of ‘‘SEC. 7477. DECLARATORY JUDGMENTS RELAT- such individual who is also a descendant of ING TO VALUE OF CERTAIN GIFTS. f ‘‘(a) CREATION OF REMEDY.—In a case of an the parent of the transferor (or the transfer- actual controversy involving a determina- or’s spouse or former spouse), and the gen- tion by the Secretary of the value of any gift eration assignment of any descendant of ADJOURNMENT UNTIL FRIDAY, shown on the return of tax imposed by chap- such individual shall be adjusted accord- MARCH 21, 1997 ingly. ter 12 or disclosed on such return or in any Mr. SANTORUM. Mr. President, if statement attached to such return, upon the ‘‘(2) LIMITED APPLICATION OF SUBSECTION TO filing of an appropriate pleading, the Tax COLLATERAL HEIRS.—This subsection shall there is no further business to come be- Court may make a declaration of the value not apply with respect to a transfer to any fore the Senate, I now ask that the of such gift. Any such declaration shall have individual who is not a lineal descendant of Senate stand in adjournment under the the force and effect of a decision of the Tax the transferor (or the transferor’s spouse or provisions of Senate Concurrent Reso- Court and shall be reviewable as such. former spouse) if, at the time of the transfer, lution 14, unless the House fails to ‘‘(b) LIMITATIONS.— such transferor has any living lineal de- agree to the concurrent resolution. If ‘‘(1) PETITIONER.—A pleading may be filed scendant.’’ under this section only by the donor. (b) CONFORMING AMENDMENTS.— the House fails to agree, the Senate ‘‘(2) EXHAUSTION OF ADMINISTRATIVE REM- (1) Section 2612(c) (defining direct skip) is would then stand in adjournment until EDIES.—The court shall not issue a declara- amended by striking paragraph (2) and by re- 12 noon on Friday, March 21. tory judgment or decree under this section designating paragraph (3) as paragraph (2). Thereupon, the Senate, at 7:28 p.m., in any proceeding unless it determines that (2) Section 2612(c)(2) (as so redesignated) is adjourned until Friday, March 21, 1997, the petitioner has exhausted all available ad- amended by striking ‘‘section 2651(e)(2)’’ and at 12 noon. ministrative remedies within the Internal inserting ‘‘section 2651(f)(2)’’. Revenue Service. (c) EFFECTIVE DATE.—The amendments f ‘‘(3) TIME FOR BRINGING ACTION.—If the Sec- made by this section shall apply to termi- retary sends by certified or registered mail nations, distributions, and transfers occur- notice of his determination as described in ring after December 31, 1997. CONFIRMATIONS subsection (a) to the petitioner, no proceed- f Executive nominations confirmed by ing may be initiated under this section un- the Senate March 20, 1997: less the pleading is filed before the 91st day BILL READ FOR THE FIRST TIME— after the date of such mailing.’’ H.R. 1122 FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION (2) CLERICAL AMENDMENT.—The table of Mr. SANTORUM. Mr. President, I un- sections for such part IV is amended by in- MARY LUCILLE JORDAN, OF MARYLAND, TO BE A MEM- serting after the item relating to section 7476 derstand that H.R. 1122 has arrived BER OF THE FEDERAL MINE SAFETY AND HEALTH RE- VIEW COMMISSION FOR A TERM OF 6 YEARS EXPIRING the following new item: from the House, and I would now ask for its first reading. AUGUST 30, 2002. ‘‘Sec. 7477. Declaratory judgments relating THEODORE FRANCIS VERHEGGEN, OF THE DISTRICT OF The PRESIDING OFFICER. The COLUMBIA, TO BE A MEMBER OF THE FEDERAL MINE to value of certain gifts.’’ SAFETY AND HEALTH REVIEW COMMISSION FOR A TERM clerk will report. EXPIRING AUGUST 30, 2002. (d) CONFORMING AMENDMENT.—Subsection The legislative clerk read as follows: THE ABOVE NOMINATIONS WERE APPROVED SUBJECT (c) of section 2504 is amended by striking ‘‘, TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- and if a tax under this chapter or under cor- A bill (H.R. 1122) to amend title 18, United QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY responding provisions of prior laws has been States Code, to ban partial-birth abortions. CONSTITUTED COMMITTEE OF THE SENATE. assessed or paid for such preceding calendar Mr. SANTORUM. I now ask for its THE JUDICIARY period’’. second reading, and I will object to my COLLEEN KOLLAR-KOTELLY, OF THE DISTRICT OF CO- (e) EFFECTIVE DATES.— LUMBIA, TO BE U.S. DISTRICT JUDGE FOR THE DISTRICT (1) IN GENERAL.—The amendments made by own request on behalf of the other side OF COLUMBIA. subsections (a) and (c) shall apply to gifts of the aisle. DEPARTMENT OF JUSTICE The PRESIDING OFFICER. Objec- made after the date of the enactment of this ROSE OCHI, OF CALIFORNIA, TO BE DIRECTOR, COMMU- Act. tion is heard. NITY RELATIONS SERVICE, FOR A TERM OF 4 YEARS.