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

Vol. 144 WASHINGTON, WEDNESDAY, MAY 6, 1998 No. 55 House of Representatives The House met at 10 a.m. nounced that the Senate had passed of Dr. Peter Marshall, the Scottish The Reverend Dr. George Docherty, with an amendment in which the con- preacher, who was both Chaplain of the Pastor, Retired, Alexandria, Pennsyl- currence of the House is requested, a U.S. Senate and Pastor of the New vania, offered the following prayer: bill of the House of the following title: York Avenue Presbyterian Church. Let us pray. God of the ages, before H.R. 1385. An act to consolidate, coordi- Dr. Marshall had identified a min- even the mighty nations of the world nate, and improve employment, training, lit- ister to preach in his church in his ab- have had their hour and now are part of eracy, and vocational rehabilitation pro- sence: George Docherty. In 1950, the history, we begin this new day invok- grams in the United States, and for other congregation chose as its new pastor purposes. ing Thy blessings upon all our delibera- George Docherty. He held the con- tions. Help us to see beyond the thrust The message also announced that the gregation together and led the church and cut of debate and the issues that Senate insists upon its amendment to into an active ministry for the under- divide us, to behold again the all em- the bill (H.R. 1385) ‘‘An Act to consoli- privileged which continues to this day. bracing unity of our people. Help us to date, coordinate, and improve employ- He worked with Reverend Billy regard the sacred phrase ‘‘one Nation, ment, training, literacy, and voca- Graham on the Washington crusades tional rehabilitation programs in the under God, with liberty and justice for and arranged for Reverend Graham’s United States, and for other purposes,’’ all,’’ to regard this sacred phrase as first crusade to Scotland. requests a conference with the House more than a noble sentiment from a For all of us this week, we should on the disagreeing votes of the two historic declaration. think about the notion, as we con- Houses thereon, and appoints Mr. JEF- Grant to these men and women gath- template prayer and a National Day of FORDS, Mr. COATS, Mr. GREGG, Mr. ered here today strength in their de- Prayer, that Dr. Docherty convinced FRIST, Mr. DEWINE, Mr. ENZI, Mr. manding duties, clarity of purpose. President Eisenhower and the Congress HUTCHINSON, Ms. COLLINS, Mr. WARNER, Help them to see the ultimate vision of to add the words ‘‘under God’’ to the Mr. MCCONNELL, Mr. KENNEDY, Mr. justice and that love that transcends Pledge of Allegiance. He is an example DODD, Mr. HARKIN, Ms. MIKULSKI, Mr. all differences. Amen. of why this is a great country, filled BINGAMAN, Mr. WELLSTONE, Mrs. MUR- with good people who do amazing f RAY, and Mr. REED, to be the conferees on the part of the Senate. things. THE JOURNAL The fact is that we all owe Dr. f The SPEAKER. The Chair has exam- George Docherty a thanks for remind- ined the Journal of the last day’s pro- ANNOUNCEMENT BY THE SPEAKER ing us that the only true America is an ceedings and announces to the House The SPEAKER. The Chair will recog- America which recognizes that its his approval thereof. nize 15 one-minute speeches on each blessings come from the Creator who Pursuant to clause 1, rule I, the Jour- side. endows it with its unique rights. nal stands approved. f f f APPRECIATION FOR DR. GEORGE PLEDGE OF ALLEGIANCE DOCHERTY APPEAL MEANS STONEWALL The SPEAKER. Will the gentleman (Mr. GINGRICH asked and was given from New Jersey (Mr. PALLONE) come permission to address the House for 1 (Mr. DELAY asked and was given per- forward and lead the House in the minute and to revise and extend his re- mission to address the House for 1 Pledge of Allegiance. marks.) minute.) Mr. PALLONE led the Pledge of Alle- Mr. GINGRICH. Mr. Speaker, I sim- Mr. DELAY. Mr. Speaker, yesterday, giance as follows: ply want to share with my colleagues Judge Norma Holloway Johnson threw I pledge allegiance to the Flag of the what a wonderful thing it is today to out President Clinton’s claim of execu- United States of America, and to the Repub- have Dr. George Docherty back sharing tive privilege regarding the latest lic for which it stands, one nation under God, with us and leading us in prayer. He crime or scandals in the White House. indivisible, with liberty and justice for all. grew up and attended public school in No wonder. The President has been f Scotland; in Glasgow, to be exact. At taking indecent liberties with the con- the age of 20, he heard his calling to be- cept of executive privilege. He has hid- MESSAGE FROM THE SENATE come a minister. den behind executive privilege in order A message from the Senate by Mr. In 1949, the Washington religious to keep the American people from Lundregan, one of its clerks, an- community was shocked by the death knowing the truth.

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

H2819 H2820 CONGRESSIONAL RECORD — HOUSE May 6, 1998 According to press accounts, the United States. Why is the Clinton ad- a billion dollar pay raise out of the White House may even appeal this de- ministration allowing transfer of weap- pockets of the American taxpayers. cision. There is only one reason to ap- ons technology to China? Are they na- In light of recent reports of taxpayer peal this decision, and that is to keep ively believing this information is se- abuse by IRS agents, the President the American people from learning the cure? Who are they kidding? promised swift action. If a half a bil- truth. Constructive engagement with China lion dollar pay raise is swift action, I Mr. Speaker, no man is above the is one thing, but providing technology would hate to see just what his long- law. Judge Johnson’s decision affirms for computer guidance systems, for range corrective action would entail. that basic American principle. No mat- ICBMs is not only outrageous, it is a Thomas Sowell, a noted economist, ter what strategy the White House de- direct threat to our national security. once said, ‘‘It is easy to be wrong, and cides to employ, the American people This should be investigated. Al- to persist in being wrong, when the have the right to know the truth. An though we should constructively en- costs of being wrong are paid for by appeal by the President on this case gage China, our first and foremost con- others.’’ would amount to one more effort to cern should be protecting America’s in- stonewall the Starr investigation and terest and prohibiting transfer of weap- f keep the truth away from the Amer- ons technology which could threaten APPOINTMENT OF ADDITIONAL ican people. the Nation’s security. CONFEREES ON H.R. 2400, BUILD- f f ING EFFICIENT SURFACE TRANS- CAMPAIGN FINANCE CAMPAIGN FINANCE PORTATION AND EQUITY ACT OF INVESTIGATION INVESTIGATION 1998 (Mr. GUTIERREZ asked and was (Mr. PALLONE asked and was given The SPEAKER. The Chair announces given permission to address the House permission to address the House for 1 as additional conferees from the Com- for 1 minute.) minute.) mittee on Ways and Means to the con- Mr. GUTIERREZ. Mr. Speaker, I am Mr. PALLONE. Mr. Speaker, when ference on the bill (H.R. 2400) to au- shocked by the new discoveries that someone takes on the job to be chair- thorize funds for Federal-aid highways, have been made by the editors of the man of the House Committee on Gov- highway safety programs, and transit gentleman from Indiana (Mr. BURTON) ernment Reform and Oversight, in this programs, and for other purposes: in his so-called investigation. Just lis- case, the gentleman from Indiana (Mr. Mr. NUSSLE and ten to this: It turns out that when BURTON), they have an obligation to be Mr. HULSHOF. Franklin Delano Roosevelt rallied our impartial in conducting the investiga- Further conferees will be announced country during the Depression, what he tion. later. really said was, ‘‘The only thing we The gentleman from Indiana (Mr. The Clerk will notify the Senate of have is fear itself.’’ At John F. Ken- BURTON) has totally abrogated that re- the change in conferees. nedy’s stirring inaugural, what he ac- sponsibility, in particular this last f tually said was, ‘‘Ask not what you can week, in the way that he released the Hubbell tapes. The gentleman from In- do for your country.’’ CAMPAIGN FINANCE Most shocking of all, the gentleman diana carefully edited and rearranged INVESTIGATION from Indiana (Mr. BURTON) has discov- the tapes, releasing them with errors ered that Republicans as well as Demo- and omissions so as to be damaging to (Ms. DELAURO asked and was given crats have been misquoted through the the President. permission to address the House for 1 years. Even George Bush, if the skillful I ask, how can the gentleman’s com- minute and to revise and extend her re- editors of the gentleman from Indiana mittee’s investigation possibly be fair marks.) (Mr. BURTON) were around in 1988, they when the chairman acts in this fash- Ms. DELAURO. Mr. Speaker, the gen- may have changed history. In Burton- ion? The public is tired of this inves- tleman from Indiana (Mr. BURTON), land, George Bush actually said, ‘‘Read tigation. It is expensive. It has cost chairman, has seriously threatened the my lips: New taxes.’’ over $6 million so far. It takes away integrity of the House and its ability Hard to believe? No harder to believe from the real issues that the House of to conduct a fair investigation. First, than the distorted, dishonest, and dis- Representatives should be addressing. the gentleman released tapes which, as credited tapes Mr. BURTON tried to fool But at least if the gentleman from In- the Washington Post states today, the American people with. This deceit diana is going to do the investigation, mainly deal with ‘‘highly personal is shameful. he should do it fairly. Since he cannot, matters of no conceivable relevance to I guess the only thing the gentle- he should be removed as the chairman any public inquiry.’’ man’s committee’s multimillion-dollar in charge of the investigation. We discover that the gentleman from spending spree cannot buy is fairness f Indiana (Mr. BURTON), chairman, is so and honesty. Do all Americans a favor determined to smear the President IRS GETS A RAISE and stop this charade. that he doctored those tapes and he al- f (Mr. GIBBONS asked and was given tered the content to suit his own pur- permission to address the House for 1 poses. MISSILE TECHNOLOGY TRANSFER minute and to revise and extend his re- We have a responsibility to inves- TO CHINA marks.) tigate any wrongdoing, but the gen- (Mr. PITTS asked and was given per- Mr. GIBBONS. Mr. Speaker, tucked tleman from Indiana (Mr. BURTON) and mission to address the House for 1 away deep inside the $128 billion in new Speaker GINGRICH have a responsibility minute and to revise and extend his re- Federal taxes in President Clinton’s to conduct that investigation fairly marks.) new budget proposal is a $529 million and impartially. Mr. PITTS. Mr. Speaker, a news ac- increase in the salaries for the Internal The gentleman from Indiana (Mr. count last week detailed a Clinton ad- Revenue Service. That is right, Mr. BURTON) and Speaker GINGRICH have ministration proposal to begin space Speaker. The IRS, the same out-of-con- proven themselves incapable of being cooperation with China. Shockingly, trol rogue Federal agency that has either fair or impartial. I call on them the administration’s proposal would trampled the constitutional rights of to remove themselves immediately permit the transfer of missile tech- millions of American citizens, is get- from this investigation. Stop diverting nology with the potential of enhancing ting a pay raise. attention away from the real issues, Chinese nuclear weapon strategy, We are all familiar with the saying, the issues that the American people weapons of mass destruction. ‘‘if it is not broke, do not fix.’’ How- want this House to consider: managed Mr. Speaker, according to experts, ever, someone needs to introduce this care reform, improving our public China has already supplied missile test administration and my liberal col- schools, and enacting real campaign re- equipment to Iran and other nations leagues to the concept that if it is form. Let us put an end to this partisan that have a clear vendetta against the broke, do not reward them with a half investigation and let us get to work. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2821 b 1015 APPOINTMENT OF ADDITIONAL Yes, the United States House of Rep- MANY UNANSWERED QUESTIONS CONFEREE ON H.R. 2400, BUILD- resentatives has the legal right to take ING EFFICIENT SURFACE TRANS- the tapes that were taped of Mr. Hub- (Mr. KINGSTON asked and was given PORTATION AND EQUITY ACT OF bell in his conversations between his permission to address the House for 1 1998 wife and attorney. The question is do minute and to revise and extend his re- The SPEAKER pro tempore (Mr. they have the legal right to distort the marks.) truth before the American people? Do Mr. KINGSTON. Mr. Speaker, I am SHIMKUS). Without objection, the Chair announces the Speaker’s appointment they have the right to selectively issue really disturbed by the allegations the transcripts? No, not distort the against our colleague that he altered of an additional conferee from the Committee on Ways and Means on the tapes, but selectively issue the tran- tapes. The gentleman from Indiana has scripts. not altered any tapes. bill (H.R. 2400) to authorize funds for Federal-aid highways, highway safety Would we, as American citizens, want But I guess what I am also very, very this to happen to us? Would we want concerned about is why are the Demo- programs, and transit programs, and for other purposes: our rights violated, our privacy de- crats worried about why Web Hubbell stroyed and distorted? I believe not. was awarded $100,000 from the Indo- Mr. RANGEL. There was no objection. And so the question becomes for this nesian Government after he left the The SPEAKER pro tempore. The investigation to have any credibility, White House? Was it hush money? Why Clerk will notify the Senate of the this person who leads out of this com- did Revlon Corporation give him change in conferees. mittee must step aside for us to be able $63,000? f to rise up and represent the American Why, on these unaltered tapes, did he people. say I have to roll over for the White KYOTO TREATY SHOULD BE f House one more time? Why did his wife DEALT WITH IN LIGHT OF DAY THIS ADMINISTRATION NOT THE say here comes the White House (Mr. KNOLLENBERG asked and was MOST ETHICAL squeeze again? given permission to address the House Why did 19 members of the Commit- for 1 minute and to revise and extend (Mr. PETERSON of Pennsylvania tee on Government Reform and Over- his remarks.) asked and was given permission to ad- sight, 19 Democrat members, refuse to Mr. KNOLLENBERG. Mr. Speaker, dress the House for 1 minute and to re- give immunity to four witnesses that the U.N. treaty on climate change that vise and extend his remarks.) the Democrat Department of Justice was negotiated in Kyoto, Japan last Mr. PETERSON of Pennsylvania. Mr. has already given immunity to? Why December is a bum deal for this coun- Speaker, for one minute let us say out are the Democrats not interested in try. If ratified, this overreaching agree- loud what Republicans and Democrats getting to the truth? ment would result in fewer American on Capitol Hill are saying privately Why did Monica Lewinsky visit the jobs, higher prices, a lower standard of about what they are reluctant to say in Oval Office 37 times? Quite a file clerk, living, and it will not reduce emissions. public: The emperor has no clothes. huh, Mr. President? Fortunately, there is strong opposi- It is obvious that the people who Why are these things going on? Why tion to this treaty in Congress, and the came to Washington, promising the does Ms. McDougal not speak, Mr. Clinton administration does not have most ethical administration in history, Speaker? Why are the Democrats not the votes to win ratification in the is nothing of the sort. The nearly $3 curious? Senate. However, faced with this di- million the Democratic National Com- Mr. Speaker, I have these questions. lemma, it appears the President will mittee returned after the 1996 election, f attempt to implement his policy objec- because it came from foreign sources, SUPPORT MAINTAINING CURRENT tives through regulatory fiat, execu- was not raised by accident. White DOMESTIC SOURCING STANDARDS tive orders and stealth tactics; regu- House assertions that they do not latory end runs. know how the White House ended up (Mr. STRICKLAND asked and was Congress must not allow this to hap- with 900 FBI files on Republicans are given permission to address the House pen. We must fight to defend our eco- not true. And the assertion that no one for 1 minute and to revise and extend nomic interests and we must fight to knows who hired Craig Livingston is his remarks.) protect the integrity of the legislative not only a lie, it is a laughable one. Mr. STRICKLAND. Mr. Speaker, as process. To do anything less would be a White House denials that the Lincoln we envision the American soldier of the grave disservice to the American peo- bedroom was not sold or the White future, we imagine that soldier with ple. House coffees have nothing to do with state-of-the-art equipment, weapons, In yesterday’s Investor’s Business fund-raising are lies. and training. Would it surprise us to Daily, there is an editorial which high- Just more examples of an almost see that soldier wearing a uniform lights the Clinton administration’s at- pathological inability to be honest made of Chinese fabric assembled in tempt to circumvent the will of Con- with the American public. The latest Taiwan? Would it trouble us to imagine gress. Mr. Speaker, I urge my col- scandals are simply more of the same, him in the trenches wearing a helmet leagues to read it and join in the effort and they are popping up everywhere. cast from German steel and eating ra- to ensure that the Kyoto treaty is Mr. Speaker, why sugarcoat what ev- tions imported from Sweden? Does it dealt with in the appropriate manner: eryone knows to be true. The emperor shock us to learn that the Department in the light of day. has no clothes. of Defense wants Congress to allow the f f purchasing of foreign materials and food for American soldiers? MR. BURTON SHOULD STEP ASIDE CONGRESS IS SELLING ITS FISCAL With apologies to my fellow Ohioan, (Ms. JACKSON-LEE of Texas asked SOUL let me say, Mr. Speaker, we should all and was given permission to address (Mr. MINGE asked and was given per- be beamed up on this one. the House for 1 minute and to revise mission to address the House for 1 I plan to see that American soldiers and extend her remarks.) minute and to revise and extend his re- are not clothed and fed by foreign com- Ms. JACKSON-LEE of Texas. Mr. marks.) panies and that the Department of De- Speaker, these are not my words: ‘‘If Mr. MINGE. Mr. Speaker, we have fense’s Buy American laws are not cir- Republican leaders hope to preserve embarked on an era of political crony- cumvented with slick legislative lan- any shred of credibility in this House ism, plantation politics. This body re- guage. I urge every Member of this investigation, they must make it clear cently passed a transportation bill that body to join me and my colleague from now that Mr. Burton must go. Must go is $35 billion over budget. The bill did New Jersey (Mr. LOBIONDO) in cospon- now.’’ The Albany Times Union, New not pass on its merits but on the basis soring the Strickland-LoBiondo resolu- York. Albany, New York, May 5, 1998. of 1,400 especially identified projects to tion to maintain current domestic The real question, Mr. Speaker, is garner the support of the Members of sourcing standards. would we want this to happen to us? this body. H2822 CONGRESSIONAL RECORD — HOUSE May 6, 1998 What does this mean? We are selling That is why R.J.R. has invested mil- and quickly pass legislation that would our fiscal soul; we are returning to the lions of dollars in its Camel Club Pro- stop this so-called keychain gun from era of deficit spending. Or are we going gram in cities like Cleveland and in being imported or manufactured in the to use the projected budget surplus for Denver, where college-aged kids hand United States. new programs as opposed to deficit re- out free cigarettes and R.J.R. para- Mr. Speaker, abolishing this awful duction or for tax cuts as opposed to phernalia to their peers. device with the only purpose of helping deficit reduction? Are we going to Most minors under 21 who pick up terrorists is something that even handicap our ability to address the smoking as a casual habit will become Charlton Heston could agree on. problems of the Social Security Sys- addicted to cigarettes for a lifetime. In f tem; or are we going to gut programs fact, there is a less than 10 percent for veterans, agriculture, education, chance of becoming addicted to ciga- b 1030 health care, seniors and our Nation’s rettes if a smoker does not first light SOCIAL SECURITY TRUST FUND defense? up before his or her first 21st birthday. (Mr. SMITH of Michigan asked and Mr. Speaker, we must not let the big- The only way to stop the tobacco in- was given permission to address the gest pork barrel spending bill in the dustry from luring kids under 21 into House for 1 minute.) history of our Nation pass conference using this deadly product is to make Mr. SMITH of Michigan. Mr. Speak- committee. the sale of tobacco illegal to this age er, I would like to call to the attention f group. By raising the age to 21, we can stop this deadly practice. of my colleagues a bipartisan bill that SUPPORT THE NATIONAL RIGHT we will be introducing. It deals with f TO WORK ACT Social Security, the money that we are (Mr. PAUL asked and was given per- REASONS FOR RELEASING THE borrowing from the Social Security mission to address the House for 1 HUBBELL TAPES Trust Fund. minute and to revise and extend his re- (Mr. KANJORSKI asked and was It does two things. It says, in the fu- marks.) given permission to address the House ture when we borrow money from the Mr. PAUL. Mr. Speaker, I rise today for 1 minute and to revise and extend Social Security Trust Fund, they will to speak for 80 percent of Americans his remarks.) not be blank IOUs, as they are today, who support the National Right to Mr. KANJORSKI. Mr. Speaker, I rise but they will be marketable Treasury Work Act, H.R. 59. today on the occasion of being a mem- notes that the trustees of the Social The National Right to Work Act re- ber of the Committee on Government Security Administration can walk peals those sections of Federal law that Reform and Oversight and the disagree- around the corridor and cash in when give union officials the power to force ments that have occurred between the they need them. workers to pay union dues as a condi- minority and the majority. The second thing this bill does is tion of employment. I think it is vitally important to un- that it says, in the future, when CBO Compulsory unionism violates em- derstand what some of the major issues and OMB, the Congressional Budget Of- ployers’ and employees’ constitutional are, and one of the issues being the fice and the Office of Management and rights of freedom of contract and asso- tapes. I want all the American people Budget, issue projections of deficits or ciation. Congress has no constitutional to know that we believe that under the balanced budgets, they will not include authority to force employees to pay law, the committee is entitled to have the money that is borrowed from the union dues to a labor union as a condi- the tapes. In fact, a subpoena was Social Security Trust Fund. I invite tion of getting or keeping a job. issued last July, and that subpoena was my colleagues to cosponsor that bill Passage of the National Right to responded to by the Justice Depart- with us. Work Act would be a major step for- ment by providing our committee with It seems very important that we ward in ending Congress’ illegitimate all of the tapes of Mr. Hubbell’s discus- move ahead honestly and that we interference in the labor markets and sion with his family and friends while achieve a real, honest budget. Even liberating America’s economy from he was institutionalized in a Federal though we have made great progress heavy-handed government interven- institution for conviction of a crime over the last several years, cutting tion. Since Congress created this injus- unrelated to Whitewater or anything down the deficit by $300 billion, let us tice, we have the moral responsibility that we are investigating. move ahead. to work to end it, Mr. Speaker. The problem was should these tapes f The 80 percent of Americans who sup- be released to the public and whether MARRIAGE PENALTY TAX port right-to-work deserve to know or not it in any way impeded what the which Members of Congress support committee was doing. The fact is we (Mr. HERGER asked and was given worker freedom. I, therefore, urge the had the tapes for more than 6 months. permission to address the House for 1 congressional leadership, the majority f minute and to revise and extend his re- of which have promised to place a Na- marks.) STOP KEYCHAIN GUN FROM BEING tional Right to Work Act on the floor, Mr. HERGER. Mr. Speaker, as Moth- IMPORTED OR MANUFACTURED to fulfill their promise to the American er’s Day approaches, we should all re- IN UNITED STATES people and schedule a time certain for member that when a couple stands at a vote on H.R. 59. (Mr. SCHUMER asked and was given the altar and says, ‘‘I do,’’ they are not f permission to address the House for 1 agreeing to higher taxes. Yet, under minute and to revise and extend his re- our current Tax Code, that is precisely RAISE LEGAL PURCHASE AGE FOR marks.) what is happening to millions of mar- TOBACCO TO 21 Mr. SCHUMER. Mr. Speaker, the ried couples each and every year. (Ms. DEGETTE asked and was given front page today of the New York According to a recent report by the permission to address the House for 1 Times documents a new horrible device Congressional Budget Office, an esti- minute and to revise and extend her re- that has just been found. It is a gun mated 42 percent of all married cou- marks.) that looks like a keychain, and its only ples, some 21 million couples nation- Ms. DEGETTE. Mr. Speaker, if my purpose is to be smuggled through wide, incurred a Federal marriage pen- colleagues pick up any copy of Rolling metal detectors at our airports. This is alty tax in 1996. The average marriage Stone or Sports Illustrated, they are a dangerous device that could allow penalty that year approached an as- certain to see tobacco advertisements terrorists, criminals, drug dealers, and tounding $1,400. dominating the pages. Why? Because others to get guns through airports and Addressing this inequity in our tax these publications are aimed at col- into airplanes and in our country. law must be one of the top priorities of lege-aged kids, and tobacco companies I am writing the President and ask- this Congress as we work to provide know they must aggressively seduce ing that he administratively block the the American people further tax relief this age group into smoking if they are importation of this device. If that is in 1998. This Mother’s Day, I would to survive as an industry. not possible, then we should introduce urge all of my colleagues on both sides May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2823 of the aisle to give the gift of tax fair- a daily basis by local broadcasters in up House Resolution 419, and ask for its ness by supporting our efforts to elimi- Washington State and across the Na- immediate consideration. nate the marriage penalty tax. tion. We should thank these outstand- The Clerk read the resolution, as fol- f ing broadcasters who truly share the lows: spirit of outstanding public service. H. RES. 419 SCHOOL CHOICE f Resolved, That at any time after the adop- (Mr. GUTKNECHT asked and was tion of this resolution the Speaker may, pur- given permission to address the House REFUSAL TO GRANT IMMUNITY TO suant to clause 1(b) of rule XXIII, declare the for 1 minute and to revise and extend FOUR KEY WITNESSES House resolved into the Committee of the his remarks.) Whole House on the state of the Union for (Mr. BOB SCHAFFER of Colorado consideration of the bill (H.R. 1872) to amend Mr. GUTKNECHT. Mr. Speaker, we asked and was given permission to ad- the Communications Satellite Act of 1962 to have been having a debate here on the dress the House for 1 minute.) promote competition and privatization in floor of the Congress about school Mr. BOB SCHAFFER of Colorado. satellite communications, and for other pur- choice and particularly here in the Mr. Speaker, what can Congress do to poses. The first reading of the bill shall be Washington district. break a stone wall? Many of the key dispensed with. General debate shall be con- Jonathan Rauch writes on this issue fined to the bill and shall not exceed one witnesses in congressional investiga- hour equally divided and controlled by the in the last November 10 edition of the tions have either fled the country or New Republic. He says he has always chairman and ranking minority member of taken the fifth amendment. Others the Committee on Commerce. After general found it odd that the liberals have have hidden behind phony claims of ex- debate the bill shall be considered for handed the issue to the Republicans ecutive privilege. amendment under the five-minute rule. It rather than grabbing it for themselves. And if that is not enough, now we shall be in order to consider as an original He writes, ‘‘It’s hard to get excited have Democrats on the House Govern- bill for the purpose of amendment under the about improving rich suburban schools. five-minute rule the amendment in the na- ment Reform and Oversight Committee ture of a substitute recommended by the However, for poor children, trapped, who refuse to grant immunity to four the case is moral rather than merely Committee on Commerce now printed in the key witnesses; even their own Justice bill. The committee amendment in the na- educational. These kids attend schools Department consents to the granting ture of a substitute shall be considered as which cannot protect them, much less of immunity to those four key wit- read. No amendment to the committee teach them. To require poor people to nesses. amendment in the nature of a substitute go to dangerous, dysfunctional schools What is Congress to do? Well, Con- shall be in order unless printed in the por- tion of the Congressional Record designated that better-off people fled and would gress can go to the courts and, thus, never tolerate for their own children, for that purpose in clause 6 of rule XXIII. delay investigations for many more Printed amendments shall be considered as all the while intoning pieties about months, while listening to the White ‘saving’ public education, is worse than read. The chairman of the Committee of the House and other defenders of this Whole may: (1) postpone until a time during unsound public policy. It is repugnant sleaze and obstruction to cry with in- further consideration in the Committee of public policy.’’ dignation that the investigation is tak- the Whole a request for a recorded vote on Mr. Speaker, we agree. ing too long. any amendment; and (2) reduce to five min- f Mr. Speaker, why is this story not utes the minimum time for electronic voting on any postponed question that follows an- RECOGNIZING PUBLIC SERVICE BY being told? Why cannot everyone, other electronic vote without intervening WASHINGTON STATE BROAD- Democrats and Republicans alike, business, provided that the minimum time CASTERS agree that no one is above the law and for electronic voting on the first in any se- (Mr. NETHERCUTT asked and was that the American people have a right ries of questions shall be 15 minutes. At the conclusion of consideration of the bill for given permission to address the House to truthful answers? Mr. Speaker, no amount of amendment the Committee shall rise and re- for 1 minute and to revise and extend port the bill to the House with such amend- his remarks.) stonewalling should stand between the truth and the American people any ments as may have been adopted. Any Mem- Mr. NETHERCUTT. Mr. Speaker, I ber may demand a separate vote in the longer. rise today to call attention to the out- House on any amendment adopted in the standing public service work being f Committee of the Whole to the bill or to the committee amendment in the nature of a done by broadcasters across America CLARIFICATION TO APPOINTMENT and especially in my district in eastern substitute. The previous question shall be OF ADDITIONAL CONFEREES ON considered as ordered on the bill and amend- Washington. H.R. 2400, BUILDING EFFICIENT ments thereto to final passage without inter- The Washington State Association of SURFACE TRANSPORTATION AND vening motion except one motion to recom- Broadcasters recently completed a sur- EQUITY ACT OF 1998 mit with or without instructions. vey of its membership and the results The SPEAKER pro tempore. The gen- The SPEAKER pro tempore (Mr. were extremely encouraging about the tleman from California (Mr. DREIER) is SHIMKUS). Without objection, the Chair level and types of public service ren- recognized for 1 hour. announces that the Speaker’s appoint- dered on a daily basis by radio and TV (Mr. DREIER asked for and was given ment of additional conferees today stations in my State. permission to revise and extend his re- from the Committee on Ways and I want to particularly praise the fine marks and to include extraneous mate- Means were solely for consideration of work done by stations in my district, rial). the fifth of Washington. KXLY-TV cre- title XI of the House bill and title VI of Mr. DREIER. Mr. Speaker, for pur- ated a school attendance award that the Senate amendments and modifica- poses of debate only, I yield the cus- helped decrease truancy in Spokane tions committed to conference on the tomary 30 minutes to my very good middle schools. KHQ-TV spent hun- bill (H.R. 2400) to authorize funds for friend, the gentleman from South Bos- Federal-aid highways, highway safety dreds of thousands of dollars for the ton, MA (Mr. MOAKLEY), pending ‘‘Success by Six’’ program that is help- programs, and transit programs, and which, I yield myself such time as I ing children throughout Spokane mid- for other purposes. may consume. dle schools learn to read by the time There was no objection. Mr. Speaker, this modified open rule they are 6 years old. KREM-TV re- The SPEAKER pro tempore. The provides for consideration of H.R. 1817, cently raised more than $166,000 for Clerk will notify the Senate of the the Communications Satellite Com- programs benefiting women and chil- change in conferees. petition and Privatization Act of 1998. dren, such as the YWCA Transitional f The rule provides for 1 hour of general School for Homeless Children. And debate equally divided between and KAYU-TV is teaching kids lessons COMMUNICATIONS SATELLITE controlled by the chairman and rank- about fire safety with PSAs through- COMPETITION AND PRIVATIZA- ing minority member of the Committee out their children’s programming. TION ACT OF 1998 on Commerce. There are many more examples of Mr. DREIER. Mr. Speaker, by direc- The rule makes in order as an origi- this kind of public service provided on tion of the Committee on Rules, I call nal bill for the purpose of amendment H2824 CONGRESSIONAL RECORD — HOUSE May 6, 1998 the amendment in the nature of a sub- ellite system which gave rise to two dustries was possible. In each case, of stitute recommended by the Commit- huge satellite cooperatives, INTELSAT course, the incumbent monopolist ar- tee on Commerce now printed in the and Inmarsat. gued that it would be a takings, it bill, which shall be considered as read. Since these cooperatives are so big would be illegal to take away this mo- The rule further provides for consid- and so powerful, they completely had nopoly which had been granted by the eration of only those amendments that the entire market on satellite pro- government. But the reality was that have been preprinted in the CONGRES- grams. Right now, any communica- the government had made a decision SIONAL RECORD. The rule also allows tions committee that wants to use the initially in order to grant to one entity the Chairman of the Committee of the INTELSAT or the Inmarsat to transit the ability to be the first into the field, Whole to postpone votes during consid- into or out of the United States has to in order to establish it, but always re- eration of the bill and reduce voting buy access through the COMSAT Cor- tain the right to be able to break up time to 5 minutes on a postponed ques- poration. the monopoly when private sector com- tion if the vote follows a 15-minute This bill will open competition in the petition arrived. vote. And finally, the rule provides for international communications satellite Today we are going to debate the last one motion to recommit, with or with- system by encouraging INTELSAT and frontier of monopolies, this one in out instructions. Inmarsat to privatize. It would help outer space, this one where INTELSAT Mr. Speaker, the United States is the level the playing field and allow com- and Inmarsat, with its American signa- leader of the international informa- peting satellite companies to get into tory, COMSAT, seeks to retain its mo- tion-based economy. My home State of the business. Since the United States is nopoly access to this satellite commu- nication internationally. What our leg- California is home to many industries such a leader in satellite technology, islation does is break it up. It says to that create and exploit the core tech- this privatization should be very good COMSAT, it says to INTELSAT, it says nologies of the information economy, news for us. to Inmarsat, ‘‘You must privatize. You including telecommunications and sat- COMSAT can continue to provide any must move to the private sector. You ellite producers. service it wishes. It will just have to be must give access to every other private The goal of this legislation is to subject to competition from other pri- bring satellite communications into a sector company to that which you vate-sector companies. So people who new era of competition. We get there have.’’ That is the objective of this leg- depend upon international communica- by encouraging an international cartel islation. tions, especially for international of largely government-run national The gentleman from Virginia (Mr. calls, the Internet, cellular phones, and telecommunications monopolies to un- BLILEY), the chairman of the full com- video, can expect to see lower prices dergo a process of competitive privat- mittee, has been the leader on this and much more choice in services. ization. The winners will be the con- issue, driving it as an important final So I urge my colleagues to support sumers of international telecommuni- stage of our efforts to have privatized this rule. cations services, who will enjoy lower this international telecommunications prices, better services, and techno- b 1045 industry. Now, these two entities, INTELSAT logical innovation. Mr. Speaker, I yield 5 minutes to the Without question, there are very le- and Inmarsat, two international orbit- gentleman from Massachusetts (Mr. ing cartels, are not going to simply gitimate areas of debate regarding the MARKEY), the ranking minority mem- best means of moving to a private, free wake up one day and say, ‘‘Fine, take ber on the Subcommittee on Tele- back our monopoly,’’ because we have market in international satellite com- communications, Trade, and Consumer munications. Because of the complex been waiting for the last 20 years for Protection, the person who has all the them to do that. It is not going to hap- nature of the international satellite questions and all the answers. cartel, this is a modified open rule that pen. They are not going to shed them- Mr. MARKEY. Mr. Speaker, I thank selves of their privileged access to does not block any germane amend- the gentleman from Massachusetts ment from being considered by the full international frequency spectrum. (Mr. MOAKLEY) for yielding me this House as long as the amendment has They are not going to voluntarily give time, and I thank everyone who has up their immunity from antitrust law. been preprinted in the RECORD. participated in this enormously impor- Mr. Speaker, this rule is deserving of They are not going to compete against tant debate. bipartisan support, as is the bill. I look American-based satellite companies on As has been pointed out by the gen- forward to the House working its will an even ground, simply because we ask tleman from Massachusetts, back in on the amendments submitted that them to do so politely. 1962, largely in response to the chal- This legislation and the rule which have been printed in the RECORD, with lenge from the Soviet Union with the accompanies it is a fair set of rec- the hope that the final product is launch of Sputnik and the paranoia ommendations for the debate, and then something that can be signed into law which overtook the West, the United for the substantive decision-making so that we more fully enjoy the fruits States not only began a process of put- here on the floor. I hope that the Mem- of our information-based economy. bers today understand how historic Mr. Speaker, I reserve the balance of ting a man on the Moon and developing this debate is. It really will help to rev- my time. intercontinental ballistic missiles at a olutionize the way we communicate on Mr. MOAKLEY. Mr. Speaker, I yield pace that had not yet been matched in our country, but it also helped to orga- this planet. myself such time as I may consume. Mr. MOAKLEY. Mr. Speaker, I have I thank my colleague, my dear friend nize something which would create an no further requests for time, and I the gentleman from California (Mr. international satellite consortium using government-based entities to yield back the balance of my time. DREIER), my chairman in waiting, for Mr. DREIER. Mr. Speaker, I rise in yielding me the customary half-hour. launch these satellites, because there was no private sector capacity within strong support of this very fair and bal- It might be a longer wait than he an- anced modified open rule and urge my ticipates. the West in order to accomplish these goals. colleagues to join in supporting it and Mr. Speaker, I rise in support of this to support the legislation that will fol- This consortium, INTELSAT, later open rule, although I do not under- low. stand the need for the preprinting re- matched by another group called Mr. Speaker, I yield back the balance quirement. There were only two re- Inmarsat for satellite-based maritime of my time, and I move the previous corded votes in committee. There is communications, became the basis for, question on the resolution. nothing in the bill that could not be the foundation for, international sat- The previous question was ordered. handled in a totally open rule. ellite competition. It served us very The resolution was agreed to. Today’s rule will make in order the well, as did most monopolies, in elec- A motion to reconsider was laid on Communications Satellite Competition tricity, in local telephone, in long dis- the table. and Privatization Act, which will end tance telephone, in cable in the initial The SPEAKER pro tempore (Mr. the COMSAT monopoly. stages of these industries. But over SHIMKUS). Pursuant to House Resolu- In 1962, Mr. Speaker, President Ken- time it became clear that private sec- tion 419 and rule XXIII, the Chair de- nedy established an international sat- tor competition in each one of these in- clares the House in the Committee of May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2825 the Whole House on the State of the must be privatized in a pro-competitive competitor after COMSAT’s monopoly Union for the consideration of the bill, manner, in a manner that fosters com- is eliminated. H.R. 1872. petition. A privatized monopoly is still Our legislation will eliminate The Chair designates the gentleman a monopoly nonetheless, and in a man- COMSAT’s monopoly by permitting from Kansas (Mr. SNOWBARGER) as ner that relies on the marketplace, not competition for access to the IGOs. Chairman of the Committee of the on governments. In the current struc- Such competition is called direct ac- Whole, and requests the gentleman ture, the owners of the IGOs are the cess. According to the FCC, COMSAT’s from Illinois (Mr. LAHOOD) to assume foreign telecom monopolists that often average margin in reselling INTELSAT the chair temporarily. control licensing decisions and almost service is an amazing 68 percent. Not always control market access. Thus bad if you can get it, but very bad if b 1050 they have the ability and the incentive you happen to be a consumer. Every IN THE COMMITTEE OF THE WHOLE to keep U.S. satellite competitors from cent of COMSAT’s high prices comes Accordingly, the House resolved coming into their countries and com- from the pockets of American consum- itself into the Committee of the Whole peting against INTELSAT and ers. But COMSAT has used its position House on the State of the Union for the Inmarsat. If we remove these distort- as the monopoly provider of IGO serv- consideration of the bill (H.R. 1872) to ing incentives, our communications ices to force users to sign long-term amend the Communications Satellite satellite and aerospace industries, the take-or-pay contracts so they will not Act of 1962 to promote competition and most competitive in the world, will be able to take advantage of the com- privatization of satellite communica- have a fair shot at breaking into for- petition direct access will permit. Thus tions, and for other purposes, with Mr. eign markets. But if we are to bring the bill provides what is called ‘‘fresh LAHOOD (Chairman pro tempore) in the technology of modern telecommuni- look,’’ which allows consumers to have chair. cations to all parts of the globe, if we a one-time chance to renegotiate mo- The Clerk read the title of the bill. are to make international tele- nopoly take-or-pay contracts. The CHAIRMAN pro tempore. Pursu- communications truly affordable, then During the committee process, we de- ant to the rule, the bill is considered as we have to muster the courage to pri- feated an amendment that would have having been read the first time. vatize the cartels and force them to eliminated using access to the U.S. Under the rule, the gentleman from compete on a level playing field, put- market as a lever. We defeated an Virginia (Mr. BLILEY) and the gen- ting our faith in the private sector and amendment to eliminate the potential tleman from Massachusetts (Mr. MAR- the free market. restrictions on expansion if progress is KEY) each will control 30 minutes. The gentleman from Massachusetts not made toward privatization. We de- The Chair recognizes the gentleman (Mr. MARKEY) and I have introduced feated an amendment to strike out from Virginia (Mr. BLILEY). this legislation to do just that. It en- fresh look. We accepted amendments Mr. BLILEY. Mr. Chairman, I yield courages privatization of the IGOs in a which went a long way toward meeting myself such time as I may consume. way that fosters competition rather concerns some Members and COMSAT Mr. Chairman, I rise in support of than snuffing it out. It provides for pri- had raised, and made other changes to H.R. 1872, the Communications Sat- vatization of INTELSAT by 2002 and accommodate their concerns. And the ellite Competition and Privatization Inmarsat by 2001, more than enough bill passed by voice vote. Act of 1998. Today I ask that all Mem- time for these organizations to pri- The bill has been endorsed by every bers support this bill and oppose all vatize. More importantly, it requires private satellite services company amendments. privatization in a way that fosters from GE to Motorola, TRW to Boeing, Let us ask a question, if we had it all competition. If they do not privatize in Teledesic to PanAmSat. It has also to do over again, would we want to use a pro-competitive manner, the bill lim- been endorsed by major users of the the model of the United Nations for its these organizations’ access to systems, AT&T, MCI and Sprint, mari- supplying international communica- American markets for non-core serv- time users and a variety of ethnic tions? Would we trust an important ices. Moreover, if they do not make groups because of consumer cost sav- part of the information age to inter- progress towards privatization, they ings that will come with the bill. Over governmental organizations? Or in- cannot provide under new contracts 40 endorsements and counting. The stead would we rely on the free mar- highly advanced services better left to U.S. signatory to the IGOs, COMSAT, ket? If the last three decades have the private sector. of course, opposes it and they will op- taught us anything, Mr. Chairman, it is The only effective way to get the pose any effort at reform. It ends their the failure of central planning and the IGOs to move is to use access to the monopoly and would force the IGOs to inefficiency of government-run indus- U.S. market as leverage. The IGOs are give up their special advantages when try. If we have learned anything, it is immune and privileged treaty-based or- they privatize. A level playing field is not welcome when you have been the that we should trust the marketplace. ganizations. You cannot sue them, you The international satellite commu- cannot tax them nor can you regulate government-backed monopolist. They will use every tactic they can to trip nications market is dominated by them. We have to use the only lever up reform. We will have amendments INTELSAT for fixed services like voice that we have, market access. The bill’s that may sound reasonable, but in ef- and video, and Inmarsat for mobile mechanisms are akin to telling the fect remove any incentives for the services like maritime and aeronauti- Japanese that they cannot bring in all IGOs to privatize. I urge Members to cal. These intergovernmental organiza- the cars they want unless they allow ignore the rhetoric and oppose all tions want to use their market power imports of American products. COM- amendments. to expand into advanced services that SAT, the U.S. signatory, and IGO re- H.R. 1872 is, in the words of one in- the private sector is chomping at the seller, is like the Isuzu dealer in Be- dustry coalition, a moderate and bal- bit to provide, like Internet access, di- thesda. The Isuzu dealer is a U.S. com- anced approach. Consumers and tax- rect broadcast services and hand-held pany but they are selling a foreign payers will benefit from the lower phones. These intergovernmental orga- product. Here COMSAT is selling a for- prices it will bring, and businesses and nizations, or IGOs, are run by a com- eign, intergovernmental product. By their employees will benefit from the bination of the world’s governments the way, our bill expressly permits new markets it will open. and owned by a consortium of national COMSAT to sell any service it chooses Mr. Chairman, I reserve the balance telecommunications monopolies. By if it does so over a system independent of my time. government monopolies, for govern- from the IGOs. Only where they choose Mr. MARKEY. Mr. Chairman, I yield ment monopolies, of government mo- to use the IGO facilities and if the IGOs my time to the gentleman from Michi- nopolies. Their supporters call them a do not progress toward a pro-competi- gan (Mr. DINGELL), and I ask unani- cooperative. Where I come from, that is tive privatization would market access mous consent that he be permitted to called a cartel. Either way, it is high be threatened. The threatened restric- control that time. time for them to be privatized. tion is on IGO services, so it could The CHAIRMAN pro tempore. Is On that there is little disagreement. apply to any distributor of IGO serv- there objection to the request of the But more than just privatized, they ices whether that is COMSAT or a new gentleman from Massachusetts? H2826 CONGRESSIONAL RECORD — HOUSE May 6, 1998 There was no objection. wrongdoing, who have been held to be dollars in damages, with no hope or ex- Mr. DINGELL. Mr. Chairman, I yield nondominant carriers just recently by pectation of gain for the country, for myself 61⁄2 minutes. the FCC, be at the mercy of foreign competitiveness, or anything else. b 1100 competitors. Mr. Chairman, I urge the rejection of When service restrictions contained the bill, and I urge the adoption of the Mr. Chairman, I want to express af- in this bill kick in, hundreds of mil- amendment which will shortly be of- fection and respect for my good friend, lions of dollars in American invest- fered by my good friend from Louisiana the chairman of the committee, the ments in satellite equipment will be (Mr. TAUZIN). gentleman from Virginia (Mr. BLILEY) made obsolete overnight. Mr. Chairman, I reserve the balance and I also want to express the same If this were not bad enough, COM- of my time. good feelings towards my friend from SAT, which is a private corporation Mr. BLILEY. Mr. Chairman, I yield 4 Massachusetts (Mr. MARKEY). They are publicly traded on the U.S. stock mar- minutes to the gentleman from Louisi- fine Members, and the fact we have a kets, will be ruined financially. Con- ana (Mr. TAUZIN). difference here does in no way diminish gress made a policy decision to fund Mr. TAUZIN. Mr. Chairman, let me my respect or affection for either of these international satellite systems first tell my colleagues that there is these fine gentleman. by putting private capital at risk in- good news and bad news today. The The simple fact of the matter, how- stead of taxpayers’ money, and when good news is that this bill in this form ever, is this is a bad piece of legisla- those private taxpayers’ moneys and will never see the light of day; it will tion. It is unfair, it subjects the tax- those stockholders’ moneys are lost, not get through this Congress. It will payers of the United States to large li- the Federal Government will have a li- not see the light of day in the Senate ability under the Tucker Act, and I am ability under the Tucker Act. and should not in its current form. The talking about billions of dollars. This It should be noted that the United bad news is the same; that this bill Congress has learned before that this is States Government encouraged and in could fail, it could not become law be- a risk, but it appears that we have to many instances required COMSAT to cause of its current form. relearn the unfortunate lessons that we invest in these systems in exchange for What I am rising today to ask this learned when we wrote the legislation the responsibility and the opportunity House to consider are amendments to on Conrail and when we did away with to earn a reasonable return. That this bill to put it in the shape so that the unfortunate New York Central would be taken away from COMSAT. it can become good law, the Senate and Railroad, and the bankruptcy and the And the practical result of this is the other body can in fact take it up, reorganization by statute. We sub- again liability on the part of American and we might accomplish the goals of jected the taxpayers to about $61⁄2 bil- taxpayers because of an unconstitu- this legislation. lion in liabilities because we interfered tional action and an unconstitutional Let me first commend the gentleman with the contracts, we interfered with taking by this Congress of property be- from Virginia (Mr. BLILEY) and the the business, and we interfered with longing to private American citizens, gentleman from Massachusetts (Mr. the goodwill and the going value of the which subjects this government imme- MARKEY) for the goals of this legisla- corporation, and it cost the taxpayers diately to redress under the Tucker tion. It is indeed on target. It is de- dearly. This is not a mistake which we Act. signed to privatize these treaty organi- should repeat today. For the government to breach this zations and encourage that process as Mr. Chairman, H.R. 1872 has laudable bargain, obliterating the value of this rapidly as possible. goals. Unfortunately this legislation is investment, then serious constitu- Unfortunately, the bill is weighed going to fail. It is anticompetitive, it is tional concerns are raised under the down with several provisions which, as anticonsumer and, worse, it is uncon- takings clause of the fifth amendment. the gentleman from Michigan (Mr. DIN- stitutional. The bill would impose dra- The report can tell my colleagues until GELL) pointed out, are clearly takings conian measures which would limit not the committee is blue in the face that under the fifth amendment of the only INTELSAT or Inmarsat, but it this is not going to be the fact, but be United States Constitution and which would also limit their U.S. customers. assured that it will be, and my col- clearly will subject the Federal Gov- The bill unilaterally dictates complete leagues are playing fast and loose with ernment to the possibility of huge set- privatization by legislative edict. If it the taxpayers’ money if they vote for tlements and huge lawsuits against were that simple, these treaty organi- this legislation. This provision alone this government for taking private zations could have long since been will subject American taxpayers to property without compensation. privatized. claims for damages running to billions Later on in this debate, the gentle- I would point out these are treaty or- of dollars. woman from Maryland (Mrs. MORELLA) ganizations. The United States cannot It should also be noted that this and I will be offering amendments to unilaterally impose its will on better claim will fail. There is no reason to deal with those sections of the bill. If than 141 sovereign nations who are believe this, given the clear Supreme those amendments are adopted, this party to these treaties. The bill dis- Court’s precedents on these matters. bill will be put into shape, and then it regards the cold hard fact that the And I would note that American users, should become law, and maybe it will United States has but one vote in the as well as Inmarsat and INTELSAT, have a chance on the other side. If governance of INTELSAT and will suffer and will face the severe ad- those amendments fail, then I predict Inmarsat. Congress cannot change that verse impact that will flow from an un- this bill will never see the light of day unfortunate international reality. wise, unconstitutional, and unneces- and will never become law in this Con- It should be clear to anyone that this sary governmental action. gress, and that is a shame. I should approach has no chance of success. If In any event, this Congress should hope we have the good sense to pass any foreign country wants to scuttle not be willing to throw away billions of those two amendments. privatization efforts, this train will be taxpayers’ dollars on a litigation strat- In the course of this debate, I will immediately derailed and vital Amer- egy that at best is no more than a crap point out to my colleagues that in this ican interests will suffer. shoot. bill is a provision that abrogates pri- The interesting thing is that foreign In sum, H.R. 1872 is a bad bill. It is in vate contracts. In this bill Congress countries cannot only hurt Inmarsat desperate need of radical surgery. It will be changing private contracts and and INTELSAT in this process, but, contains more constitutional law prob- allowing people to get out of contracts very frankly, they can hurt American lems than a first year law school exam. they signed. In the course of this de- corporations and American competi- I urge my colleagues to join in de- bate, I will show my colleagues that tiveness and American business going feating what is here, an ill-conceived one of the competitors to COMSAT well beyond these two entities. budget-breaking bill that is going to took this issue to court and lost; lost I for one cannot support a bill that waste taxpayers’ moneys without any in Federal district court and in their holds American interests hostage to benefit to the taxpayers or to the coun- request to have these contracts abro- the whims of 141 countries and that try; and it will subject, I reiterate, our gated. And now in this bill we are being makes American carriers, innocent of constituents to claims for billions of asked as a Congress to change that May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2827 Federal court decision and to permit sensus. I realize some still have res- Mr. DINGELL. Mr. Chairman, I yield the abrogation of those long-term con- ervations about the bill, but it is im- 4 minutes to the distinguished gen- tracts. portant to recognize that compromises tleman from Maryland (Mr. WYNN). Just on April 24, our FCC ruled that and concessions have been made. Mr. WYNN. Mr. Chairman, I thank those COMSAT contracts were not mo- Concerns were raised about service the gentleman from Michigan (Mr. DIN- nopolistic contracts, were entitled to restrictions on COMSAT. Those provi- GELL) for yielding me this time, and for the respect of law, and yet this bill will sions were moderated. Concerns were his leadership on this issue. permit those contracts to be abrogated. raised about so-called fresh-look provi- Mr. Chairman, I rise today in strong By congressional action it will say that sions. Those provisions were mod- opposition to H.R. 1872, and also in customers who signed the contract can erated. At some point, we need to ask strong support of the Tauzin and the get out of it when they want to, when whether those seeking further com- Morella amendments which are to the time comes in just a couple of promise are asking for changes to im- come. This legislation, should it pass years for them to do so. prove the bill or to kill it. without these amendments, will set In short, we will be presenting to our In closing, I want to bring to the at- back 3 decades of American leadership colleagues in this debate today several tention of my colleagues my concerns in international satellite communica- ways in which this bill can be improved with INTELSAT’s current plan to spin tions and reverse the trend toward in- so that it can go forward and hopefully off a private entity. Ever since the creasing competition in the satellite become law. Without those changes, Subcommittee on Telecommuni- industry. this bill will amount to congressional cations, Trade, and Consumer Protec- The legislation before us today estab- authorization of taking of private prop- tion of the Committee on Commerce lishes unrealistic timetables and condi- erty from an American private cor- held a hearing on competition in the tions for the privatization of poration, will damage the facility of satellite industry over a year and a INTELSAT and Inmarsat, prohibits that corporation to provide service to half ago, I have consistently raised any organization from being used to American customers, and will in fact concerns that any privatized spinoffs provide critical noncore satellite serv- deny those American customers the from INTELSAT or Inmarsat must be ices to customers in the United States right to use that American corporation pro-competitive. The process of privat- if the bill’s rigid privatization dead- in the facilitation of services for their ization we are supporting today is un- lines are not met, and that is just not customer base. dermined if the privatized entity is cre- right. In short, this bill as it is currently ated with unfair competitive advan- Now, this legislation has laudable written is going down, if not here, tages. goals, and I appreciate its intent. Un- somewhere in this process. I look forward to moving this bill fortunately, its approach is somewhat Today we will have an opportunity to today, and I ask my colleagues to keep bludgeon-like, and the sponsors have fix it in two very important aspects: to in mind whether those that are opposed taken a somewhat misguided and puni- remove those private takings of private are doing it to kill the bill or really to tive approach, an approach that is so property without compensation, to pro- improve it. unfair that it has been denounced in With that, Mr. Chairman, I urge my tect the American taxpayer from these publications as ideologically diverse as colleagues to support H.R. 1872. lawsuits and to protect the customers the Washington Times and the Boston of a private American company from b 1115 Globe. abrogation of their contract rights. Mr. BLILEY. Mr. Chairman, I yield 1 They would have us believe that Mr. DINGELL. Mr. Chairman, I yield minute to the gentleman from Ohio COMSAT is a monopoly. They would 3 minutes to the distinguished gentle- (Mr. GILLMOR). have us believe that COMSAT is in fact woman from California (Ms. ESHOO). Mr. GILLMOR. Mr. Chairman, I the Microsoft of the satellite industry. Ms. ESHOO. Mr. Chairman, I am thank the Chairman for yielding, and I COMSAT is a United States company pleased to rise in support of H.R. 1872, rise in support of H.R. 1872. This bipar- that is going to be punished by this legislation which will bring about the tisan bill, of which I am a cosponsor, is bill. It is a publicly traded, U.S. com- privatization of INTELSAT and intended to bring competition to the pany. It is not true that it is a monop- Inmarsat. intergovernmental satellite organiza- oly. In fact, there are currently more When Neil Armstrong took the first tions, INTELSAT and Inmarsat. It will than 20 competitors for COMSAT with steps on the surface of the Moon in also remove COMSAT’s monopoly over more than $14 billion in investments 1969, the world was able to watch each access to these organizations. and $40 billion in stock. If this is not step because of a successful Cold War Fundamentally, this bill is a major competition, I do not know what is. collaboration known as INTELSAT. It policy decision that commercial sat- If we look a little further, in 1988 was a network of three satellites at the ellite services should be provided by COMSAT controlled 70 percent of the time, just enough to provide global the private sector worldwide and not market. That is not true today; they coverage of the Moon landing. It is now by the government. The government only control 21 percent. In fact, on a network of 24 satellites offering consortia may have been needed to run April 28 of this year, the FCC declared voice, data, and video services around an international satellite system in the that COMSAT is nondominant in most the world. Combined with Inmarsat’s 1960s, but after almost 40 years, things of its market. This effectively elimi- eight satellites, these ventures should change. We need to update our laws nates arguments that we will hear that be viewed as two of the most important and our regulations to reflect the cur- we are trying to get rid of some ter- successful international cooperation rent marketplace. rible monopoly. The monopoly does not efforts ever undertaken. In addition, increasing the competi- exist. The United States demonstrated tive nature of the international sat- What we have is a United States great leadership when it helped create ellite marketplace is very important to company that is going to be severely INTELSAT. I think we must dem- ensure that private American satellite punished as a result of this legislation. onstrate our leadership once again in companies can compete on a level play- COMSAT has represented the United making the changes necessary to fit ing field. And today, the playing field States’ interests in international sat- our times by privatizing INTELSAT is tilted toward INTELSAT and ellite communications for 30 years. The and Inmarsat. There is agreement on Inmarsat. These organizations are company has played a leading role in the goal of privatization, but how we owned by monopoly providers of tele- moving toward privatization. The plans get there is the key question. During communications services worldwide. that are adopted currently by subcommittee and full committee con- Working in cartel fashion, they have INTELSAT reflect the involvement of sideration of the bill, sponsors sought tried to keep competition from devel- COMSAT. to address many of the concerns raised. oping. Since its inception, COMSAT has I commend the gentleman from Vir- There are two other important provi- never wavered from its mandate to pro- ginia (Mr. BLILEY) and the gentleman sions in this bill providing for ‘‘direct vide satellite communications to some from Massachusetts (Mr. MARKEY) on access’’ and ‘‘fresh look,’’ and I pre- of the most remote parts of the world. their efforts to bring us closer to a con- sume my time has expired. It has done outstanding work. But now, H2828 CONGRESSIONAL RECORD — HOUSE May 6, 1998 they are faced with an unprecedented satellites for new orbital slots which tance service, in a monopoly situation legislative attack that will put this they made since May 12, 1997. We were which did exist and does exist today, U.S. company out of business, this able to compromise and used the date when we are breaking up the monop- company that hires over 1,000 Amer- of our Committee on Commerce mark- oly, which is appropriate in terms of ican citizens. up of March 25, 1998 as the date of cut- service and price for our economy and What does this bill do? It imposes off for replacement satellites in orbital every citizen of the United States, we some very un-American things on an slots. This change will allow COMSAT, have to view how those contracts were American company. It imposes service as a U.S. representative to the established, and those contracts were restrictions on the new satellite com- INTELSAT and Inmarsat system, the established in a monopoly situation. So munications service that COMSAT use of hundreds of millions of dollars in it is clearly appropriate for us to make could offer to its customers. This investment. I bring that to the atten- that change which is not precedent- would include high-speed data services, tion of my colleagues who are not in making, which we have done previously Internet access services, and land mo- favor of this bill, because that amend- on several occasions in telecommuni- bile communication; basically, taking ment moved forward to give more cations in addressing monopoly situa- the heart out of COMSAT’s business. equitableness to the COMSAT deregu- tions. But even worse, it would abrogate con- lation portion here. Mr. BLILEY. Mr. Chairman, I yield 1 tracts; that is, existing contracts could Mr. Chairman, I am also sympathetic minute to the gentleman from Ken- be set aside under the terms of this leg- to the comments of the gentleman tucky (Mr. WHITFIELD). islation to the detriment of COMSAT, from Louisiana (Mr. TAUZIN), and I wel- Mr. WHITFIELD. Mr. Chairman, I all supposedly to promote privatiza- come the debate on this about the rise today to commend the gentleman tion. In fact, this approach would un- ‘‘fresh look’’ provisions in the bill and from Virginia (Mr. BLILEY), the chair- dercut active efforts that are going on the debate in which we will be talking man of the committee, and the gen- today to move toward privatization by about what will be raised in the amend- tleman from Massachusetts (Mr. MAR- imposing these unrealistic timetables. ments. I think we need to look at all of KEY) for the fine work that they have Mr. Chairman, I think we do need to the problems and make this the best done on this bill, and to urge my col- take a stand for privatization, but we bill possible to ensure that the poten- leagues to support H.R. 1872. need to be careful where we stand. We tial financial liability to the U.S. tax- This base bill aims to eliminate the should not punish U.S. companies, we payer is resolved. last statutory monopoly in the U.S. should not punish U.S. employees for Mr. DINGELL. Mr. Chairman, I yield telecommunications market by sub- actions by international organizations 2 minutes to the distinguished gen- jecting COMSAT to competition and that they cannot control. We need to tleman from Florida (Mr. DEUTSCH). taking steps to privatize INTELSAT take a look at amendments that could Mr. DEUTSCH. Mr. Chairman, I rise and Inmarsat. Monopolies and organi- help this bill, amendments we will hear in support of this legislation. I am zations like international consortia about from the gentleman from Louisi- going to focus on two issues that sev- may have made sense back in the 1960s ana (Mr. TAUZIN) and from my col- eral of my colleagues have raised. The when Congress first passed the Sat- league, the gentlewoman from Mont- first is whether or not there is an exist- ellite Act, but they do not make sense gomery County, Maryland (Mrs. ing monopoly in satellite tele- today. MORELLA). I think if we add these communications internationally. The Having said that, I do think we need amendments, we can improve this bill. facts are, contrary to what the gen- to examine thoroughly the Tauzin and But as it stands, this bill is an uncon- tleman from Maryland (Mr. WYNN) has Morella amendment. But the world has stitutional taking from a U.S. com- mentioned, I guess it is in the eyes of changed dramatically in the years pany. It is punitive, it is unfair, and I the beholder how we look at it, but let since Congress enacted the Satellite hope this House will reject it. me talk specifically about facts. Act. Technology and the economy have Mr. BLILEY. Mr. Chairman, I yield 2 If one is in the United States of evolved to the point that it is possible minutes to the gentleman from Florida America and he wants to make a phone for private companies to do what once (Mr. STEARNS), a member of the com- call or receive video from a location we thought only governments could do. mittee. overseas that is serviced through a sat- So I rise in support of this bill. Mr. STEARNS. Mr. Chairman, I rise ellite system, the only way to do it, Mr. DINGELL. Mr. Chairman, I yield in support of H.R. 1872. the only way, is through COMSAT. 2 minutes to the distinguished gen- I do not think there is anybody in That is a statutory monopoly that this tleman from Texas (Mr. GREEN). this House that disagrees that we have Congress had granted and has granted (Mr. GREEN asked and was given to deregulate, and I am glad that the and is the existing law. That is a fact; permission to revise and extend his re- former speaker indicated he also agrees there is a statutory monopoly in terms marks.) that we need to deregulate. So the goal of communications through the Mr. GREEN. Mr. Chairman, I would of this legislation is to privatize INTELSAT system. like to thank my good friend from INTELSAT and Inmarsat satellite sys- There are alternative ways, but in Michigan, our ranking member (Mr. tems, of which COMSAT is the U.S. some locations there are not. In fact, if DINGELL) for allowing me to speak for representative; and even COMSAT one wants to call Africa or Asia, or if 2 minutes. itself agrees that we need to deregu- one wants to send video from Iran back I rise in support of H.R. 1872, the late. to America, there is just no other al- Communications Satellite Competition I am glad to point out that I have ternative. So that is the first issue. and Privatization Act. In committee worked hard to ensure that the results There is a statutory monopoly. several modifications were indicated to will be INTELSAT and Inmarsat and Let me also respond, we are going to accommodate the concerns that I had, their spin-offs will be healthy, private have several amendments on this, but I as well as other Members, and we be- companies able to compete in the com- think it is going to be the heart of a lot lieve that we have addressed the legiti- petitive satellite marketplace. Work- of the debate that is going to take mate issues, and I urge my colleagues ing with the chairman of the commit- place this morning, the issue of wheth- to support the bill. tee, the gentleman from Virginia (Mr. er we are abrogating contracts and I want to thank the gentleman from BLILEY), we were able to improve the what that means. Since there is an ex- Virginia, (Mr. BLILEY) and the gen- bill in the committee process to make isting monopoly, that monopoly had tleman from Massachusetts (Mr. MAR- it more equitable and measure up to the power to have contracts, essen- KEY) for addressing the issues of the the approach of privatizing systems. tially forced contracts, monopoly con- maritime concerns. Mr. Chairman, I The original text of the bill inserted tractual terms on a variety of consum- would like to ask unanimous consent a retroactive date of May 12, 1997 in ers throughout the United States of to place into the RECORD a letter to the certain sections of the bill and, in ef- America. And just as has been done Chairman of the committee, the gen- fect, would have hurt COMSAT from previously in telecommunications tleman from Virginia (Mr. BLILEY) making use of the significant invest- issues, specifically regarding when from the Chamber of Shipping of Amer- ments in replacement satellites and in AT&T broke up in terms of long-dis- ica in support of the bill, in support of May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2829 the changes that were made, both in non-core services at competitive rates, GELL) very much for yielding me this the committee and in the chairman’s terms, or conditions. time. mark. Section 624 (2) and (7) relating to preserva- Mr. Chairman, in 1945, a visionary, H.R. 1872 will start the privatization tion, maintenance and improvement of the Arthur C. Clarke, began this inter- GMDSS. of both INTELSAT and Inmarsat. Section 681(a) (11) and (21), Definitions re- national space odyssey in writing an These global satellite network systems lating to non-core services and GMDSS. article which pointed out that by the help provide services such as telephon- We understand these considerations to be positioning of satellites at a point over ing long distance and maritime safety several of many which the FCC will consider the Earth’s equator, it would be pos- services. The maritime industry plays in future action. We urge you to include in sible to create an international tele- an important role in my district, par- the record language that reemphasizes these communications satellite-driven sys- ticularly because of the Port of Hous- issues which are so critical to the continued tem for all the entire world. ton. safety of mariners worldwide and the contin- Now, this vision of Arthur C. Clarke During committee consideration, ued reliability of the U.S. maritime indus- was one that only really began to be try. concerns were expressed about the im- Mr. Chairman, we know this has been a implemented in 1962 with the creation pact of this privatization effort on challenging issue for all involved and we of INTELSAT, a government-driven or- maritime safety services. I am particu- truly appreciate your leadership in assuring ganization, necessarily because of the larly concerned with the Global Mari- the concerns of the maritime industry are need for the missiles to shoot the sat- time Distress and Safety Service which adequately addressed. We look forward to ellites up and the government con- is provided by COMSAT using the continued work with you and your Commit- tracts to construct the satellites. Inmarsat satellite system. Currently, tee in the future. However, as the years have gone by, the GMDSS that is connected to a Sincerely, it has become clear that private sector ship’s communication systems allows a KATHY J. METCALF, companies as well can compete in this Director, Maritime Affairs. vessel to reach maritime rescue serv- marketplace, and there have been doz- ices at the push of a button. The modi- Mr. OXLEY. Mr. Chairman, I yield 1 ens of companies, many of them suc- fications made in committee and sup- minute to the gentleman from New cessful, which have begun the process ported by the letter that I will put into Jersey (Mr. FRELINGHUYSEN). of entering these marketplaces. And so Mr. FRELINGHUYSEN. Mr. Chair- the RECORD will take positive steps to now the test for American and inter- maintain and assist and improve the man, I want to commend the gen- national policymakers is to match the GMDSS. tleman from Virginia (Mr. BLILEY) and vision of Arthur C. Clarke with the phi- These modifications ensure that mar- the gentleman from Massachusetts losophy of Adam Smith. That is itime safety devices and services will (Mr. MARKEY) for authoring this legis- roofless, Darwinian capitalism. We always be available to our shipping in- lation. must ensure that we have made a full dustry. For example, a provision was Two years ago we passed historic leg- injection into this international sat- added which clarifies that the United islation that has put us well down the ellite cartel of the reality that they are States will not oppose the registration road towards bringing telecommuni- competing for business with other com- of orbital locations for Inmarsat re- cations competition to all markets panies. placement satellites. within the United States. With H.R. Now, America has the lead in this H.R. 1872 also requires the FCC to 1872, we take another major step to- field. We are number one, looking over consider equipment cost and design wards reaching the same objective in our shoulders at number two and num- change and design life of maritime the provision of international satellite ber three. The major obstacle to us communications equipment when mak- services. leaping out into an almost insurmount- ing a licensing decision. This provision, As we take this step, I want to draw able lead is this international cartel; added, makes sure that the maritime attention to one of the bill’s most im- government-granted, government-sanc- industry’s investments in communica- portant features, a provision called tioned, and 30 years old. It is time for tions equipment are not rendered use- ‘‘fresh look.’’ ‘‘Fresh look’’ is a tool us to end this cartel and allow these less or become too costly because of that is intended to accelerate the tran- American-based satellite companies to competition. This bill will help in- sition from monopoly to competition get out and into international mar- crease marketplace choice, and again, I by giving purchasers of service a win- kets. urge passage of this bill. Mr. Chairman, dow of opportunity to renegotiate long- Now, why is this important? It is be- at this time I include for the RECORD term contracts entered into under the cause as this Congress has voted for the letter previously referred to. assumption that the seller was and NAFTA, for GATT, for the WTO, we are CHAMBER OF SHIPPING OF AMERICA, would continue to be the sole provider essentially saying as a country that we Washington, DC, April 29, 1998. of service. It is a tool that has been are going to allow our low-end jobs to Hon. THOMAS J. BLILEY, used by the Federal Communications go to Third World countries. That is Chairman, House Commerce Committee, U.S. Commission in several proceedings. It what we are saying. But in turn what House of Representatives, Washington, DC. has also been used by State public util- we are saying, quite self-confidently, is DEAR CHAIRMAN BLILEY: The purpose of ity commissions in California, Colo- that we believe that we can capture the this letter is to express our appreciation for lion’s share of the high-end jobs, the your willingness to respond to our concerns rado, Michigan and Ohio. technology-based jobs, the jobs that re- outlined in our letter of February 26, 1998, b 1130 with regard to the Communications Satellite late to the high education in our coun- Competition and Privatization Act, H.R. While the ‘‘fresh look’’ tool should try. 1872. not be abused, it is useful when em- We cannot allow an international As we indicated previously, our members ployed, as it would be under this bill, cartel to continue to wall out Amer- are the end users of these systems and, as to ensure that consumers are ready to ican companies from the marketplaces such, generally support the concept of pri- realize near-term benefits from the of this planet because that is where our vatization since, if properly done, will ulti- opening of the market to competition. great high-tech education-based oppor- mately result in better service at a lower Mr. Chairman, I support the bill and tunities lie. cost to the end user. As you recall, our concerns related to con- most particularly the open ‘‘fresh Otherwise, we have the worst of all tinuity of service of the GMDSS and com- look’’ provisions. worlds. Our low-end jobs go as Third mercial maritime functions, as well as the The CHAIRMAN pro tempore (Mr. World countries produce these manual need to mitigate substantial investments in LAHOOD). The Chair would advise both labor products, but we do not gain ac- new equipment by users who have recently sides they each have 13 minutes re- cess to the markets in these countries made expenditures for equipment which maining. around the world where we can market interfaces with existing systems. Mr. DINGELL. Mr. Chairman, I yield our high-end products. On review of the substitute bill and amend- 4 minutes to the distinguished gen- This bill telescopes the time frame ments as reported out of your Committee, we that it will take for America to have are pleased to find provisions that address tleman from Massachusetts (Mr. MAR- our concerns, specifically as follows: KEY). its companies gain access to every sin- Section 601(b)(3), Clarification: Competi- Mr. MARKEY. Mr. Chairman, I thank gle country in the world with the sat- tive Safeguards relating to the existence of the gentleman from Michigan (Mr. DIN- ellite-based services, and in every one H2830 CONGRESSIONAL RECORD — HOUSE May 6, 1998 of the service areas. That is why we bring real competition to the market international communications. This bring this bill to the floor today. for satellite communications as soon as measure provides for that in a different And it is not to put COMSAT out of possible. time in a different place. This measure business. COMSAT will remain in busi- Mr. OXLEY. Mr. Chairman, I yield is now greatly needed to replace the ness. It will remain competitive. It will myself 11⁄2 minutes. government-sponsored corporation remain with the capacity to enter into Mr. Chairman, I rise in support of that had a lock on this marketplace. any one of these markets, but only at H.R. 1872 and commend the gentleman This is about real people needing to the point at which it is privatized, only from Virginia (Chairman BLILEY) and communicate in a cost-effective man- at the point at which COMSAT, with the gentleman from Massachusetts ner. Not about multinational corpora- INTELSAT, has given up its monopoly. (Mr. MARKEY) for their strong leader- tions, real people who believe that this Mr. Chairman, I again thank the gen- ship in bringing this issue to the floor. measure is long overdue: The Polish tleman from Michigan (Mr. DINGELL) There can be no doubt that the time American Congress, the Hispanic Coun- for the time that he has yielded to me, has come for privatizing and restruc- cil on International Relations, the Na- and I hope that this legislation passes. turing the intergovernmental satellite tional Association of Latino and Ap- Mr. OXLEY. Mr. Chairman, I yield 4 organizations. While there may be pointed Elected Officials, the Arme- minutes to the gentleman from Geor- some differences of opinion on the com- nian National Committee of America, gia (Mr. NORWOOD). ponents as we move forward, there is the Cuban American Council, the Na- Mr. NORWOOD. Mr. Chairman, I certainly unanimity about the fact tional Council of La Raza and the thank the gentleman from Ohio (Mr. that privatization and increased com- Puerto Rican Legal Defense and Edu- OXLEY) for yielding me this time. I ap- petition in satellite communications cation Fund. These are real people who preciate the time and effort to discuss are best for the marketplace and best want to take advantage of lower cost something that I find myself in agree- for the consumer. communications and I urge adoption of ment with. To illustrate this point, it is worth the Bliley-Markey bill. And I congratulate the gentleman noting that a significant development Mr. BLILEY. Mr. Chairman, I yield 1 from Virginia (Chairman BLILEY) on has occurred since the Committee on minute to the gentleman from Con- his good works in this, and it is a Commerce acted on the bill. The inter- necticut (Mr. SHAYS). pleasure for me to follow the gen- national government organization (Mr. SHAYS asked and was given per- tleman from Massachusetts (Mr. MAR- INTELSAT, consisting of 142 member mission to revise and extend his re- KEY), my friend. It is not often that we countries, agreed on March 30 of this marks.) agree, and it is great to hear the gen- year to move toward privatization by Mr. SHAYS. Mr. Chairman, I thank tleman have discussions about Adam creating a private company separate the gentleman from Virginia (Mr. BLI- Smith. from INTELSAT to compete in the LEY) for this time, and also commend Mr. Chairman, it is a pleasure to ask commercial satellite marketplace. The the gentleman from Massachusetts all of my colleagues to support H.R. member countries of INTELSAT, after (Mr. MARKEY) for their bill and rise in 1872, a long overdue piece of legisla- a lengthy negotiation process heavily strong support. tion. The law we seek to amend here influenced by the United States, came Mr. Chairman, I believe in real com- today is about as outdated as rotary to a unanimous agreement to vol- petition and meaningful choice, and dial telephones, and as obsolete as rab- untary spin off assets and create a new this bill offers that. bit ears on a television set. competitive entity. Today the House will be considering impor- When the Satellite Act was written, While some may question whether tant legislation designed to bring satellite com- a government-run consortium made this privatization effort is sufficiently munications technology into the modern age. I sense. Today it simply does not. Pri- procompetitive, it strongly dem- would like to commend the Chairman of the vate companies across the globe can onstrates the recognition around the Commerce Committee, Mr. BLILEY, and his now offer competitive, high-quality globe of the need to privatize and en- original cosponsor, Mr. MARKEY, for introduc- international satellite service, but only hance competition in the international ing H.R. 1872, the bill to privatize the intergov- if we empower them to do so by passing satellite market. ernmental satellite organizations. It has been this legislation, H.R. 1872, and elimi- Mr. Chairman, I also believe that it endorsed by every private satellite services nating the competitive advantages en- clearly demonstrates the extent to company and the major users of satellite serv- joyed by INTELSAT and Inmarsat. which the leadership of the gentleman ices. A recent study prepared by the Sat- from Virginia (Mr. BLILEY) has gar- Two intergovernmental organizations domi- ellite Users Coalition documented that nered the attention of the industry and nate international satellite communications. passage of H.R. 1872 would produce cost the markets, and for that the courage They are called INTELSAT and Inmarsat. savings reaching as high as $2.9 billion and leadership shown by the gentleman They are owned by a cartel like structure of all for the American consumers over the from Massachusetts (Mr. MARKEY) and the world's state telephone companies. The next 10 years. Additionally, this study the gentleman from Virginia (Mr. BLI- same companies that control access to na- went on to say and calculated that LEY) are to be commended. tional markets, and thus keep out American through the expected competition Mr. Chairman, I encourage all Mem- companies that want to compete with these brought about by meaningful reform, bers to support this legislation. organizations. consumers around the world could ex- Mr. BLILEY. Mr. Chairman, I yield 1 H.R. 1872 privatizes the intergovernmental pect savings of $6.9 billion over that minute to the gentleman from New satellite organizations, and even more, does same period. York (Mr. FORBES). so in a pro-competitive manner. Now, they will The most important consumer bene- Mr. FORBES. Mr. Chairman, I thank never privatize pro-competitively on their fit, though, Mr. Chairman, however the gentleman from Virginia for yield- ownÐthey like either the status quo or a may not be the savings but rather the ing me this time. privatized monopoly. That is why the bill uses wealth of new innovation that competi- Mr. Chairman, I rise today in support access to the U.S. market for advanced serv- tion will invariably bring to the sat- of H.R. 1872, a much-needed measure ices as a lever to make sure they are ellite industry. More than 30 years ago, which will provide improved and cost- privatized pro-competitively. governments around the world had the effective international communica- Comsat has a monopoly over sales of inter- best intentions when they took a risk tions by allowing dozens of private sec- governmental organization services in the and created an international satellite tor companies to compete in the mar- U.S.Ðover 90 other countries permit competi- system. Back then, the goal was to ketplace. tion for access to these organizations, and this push technology forward and expand As we look to the global marketplace bill brings us into line with the rest of the the reach of the communication indus- and we can think about the many peo- world. It also allows customers to renegotiate try. Today it is clear that INTELSAT ple who have come to contribute to the long-term ``take or pay'' contracts they were and Inmarsat have served their pur- greatness of this land, we know that forced to sign by the COMSAT monopoly. Of pose. there is a great need out there for course the monopoly wants to keep them Therefore, I urge my friends and col- many Americans, American consumers, locked in so consumers do not get the bene- leagues to support H.R. 1872 and help us to take advantage of lower cost in fits of competition. But the bill, through the May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2831 very important ``fresh look'' provision allows Mr. DINGELL. Mr. Chairman, I yield mous damage for the people of this customers to get the benefits of competition. I 1 minute to the distinguished gen- country, for American industry, and urge members to vote for the bill and oppose tleman from Tennessee (Mr. TANNER). for American telecommunications in- amendments designed to eliminate fresh look Mr. TANNER. Mr. Chairman, I rise dustries. It also is going to create enor- or the bills market access leverage. today in support of H.R. 1872, the Com- mous problems for the taxpayers of Supporters of the status quo will try to divert munications Satellite and Privatiza- this Nation by subjecting them to the issue with rhetoric about takings or punish- tion Act of 1998. enormous liability for an unconstitu- ment of the monopoly, but these arguments I believe this legislation will speed tional taking under the Tucker Act. are just a smokescreen for protecting the in- the transformation of two inter- The allegation is made that COMSAT cumbent. Support H.R. 1872 todayÐreform is national satellite governmental bodies is a monopoly. The simple fact of the long overdue. Customers need lower prices, into competitive commercial organiza- matter is that within the last week, on and new, American, competitors need access tions. The bill will bring competition April 24, as a matter of fact, the FCC to foreign markets. to the international satellite industry declared that the COMSAT Corporation Mr. BLILEY. Mr. Chairman, I yield 2 and ultimately, in my judgment, lead is a nondominant telecommunications minutes to the gentleman from Vir- to lower telephone rates on long dis- carrier. ginia (Mr. DAVIS). tance international calls and improved (Mr. DAVIS of Virginia asked and As reported in the Wall Street Jour- services. nal, FCC has found that COMSAT does was given permission to revise and ex- Long distance companies use sat- tend his remarks.) not wield market power in 130 coun- ellites to complete many of their calls tries where it offers telephone services, Mr. DAVIS of Virginia. Mr. Chair- so the rates they pay for satellite time man, we are dealing with a structure 54 countries where it transfers occa- directly affects the rates consumers sional use of video, and in all countries today that is a dinosaur and H.R. 1872 pay for international calls. More to the remedies that. Thirty-five years is a where it offers long-term video needs. point, our constituents who have fam- COMSAT has better than 20 major long time since the original act and in ily members and friends serving in the the communications industry it is even competitors. It is the major competi- military, the foreign service, or simply a longer time. And since the act was tors of COMSAT who are around here doing business overseas, will be able to passed originally, technology, the whining for relief. Who are these unfor- reduce their long distance bills. tunate, penniless, downtrodden com- worldwide industry structure have When the satellite technology was in changed dramatically. A monopoly petitors of COMSAT? They are its infancy in the early 1960s, it made structure might have been required at PanAmSat, and this bill has been de- sense for our government and many the time to develop a global network, scribed as a PanAmSat relief bill by partnering governments to get to- but today it has become a problem, a Wall Street. gether and boost the satellite industry. dinosaur keeping rates far above the PanAmSat just merged with Hughes Today, though, it makes sense, with so costs and limiting the service and fa- and expects, if we pass this legislation, many potential competitors, to open cility innovation that we would other- that they are going to cut a fat hog competition within this market in an wise get. which will be paid for by the taxpayers, effort to speed the benefit of lower This legislation solves that problem. because we are expropriating, by the international phone bills. It opens up the international satellite enactment of this legislation, property Mr. BLILEY. Mr. Chairman, I yield 2 markets to facilities-based competi- which belongs to COMSAT, Loral and minutes to the gentleman from Mis- tion, and it properly restricts the ac- AT&T which just merged, poor down- sissippi (Mr. PICKERING). tivities of the international satellite Mr. PICKERING. Mr. Chairman, I trodden, barefoot telecommunications organizations until this goal is well on rise in support of the effort to bring giants; and Orion and Columbia, plus a its way. competition to this very important ef- wide array of others. It permits providers other than COM- fort in communications and satellites. There is no real problem with monop- SAT to directly access INTELSAT and In my home State of Mississippi, oly here. Indeed, the market share of Inmarsat so that rates for end users WorldCom, who would have believed COMSAT has been declining. Another can go down more immediately. It al- the number one provider of Internet interesting thought, COMSAT is spin- lows customers to take advantage of services would come from a rural State ning off now its satellite services in these lower rates by permitting them like Mississippi? This is what we have which it invested its shareholders’ to renegotiate contracts agreed upon been trying to do since the tele- money. Those are going into competi- when only a monopoly existed before. tion. As for COMSAT and the inter- communications bill. If we look at our efforts since 1994 to Talk about INTELSAT. INTELSAT national organizations, it allows them is not a monopoly. It has a number of to move ahead in this new competitive bring competition and deregulation in market after market, whether it is ag- other competitors who are up there environment so long as they operate in providing telecommunications serv- the best interest of a competitive mar- riculture or telecommunications, and this is one more important area where ices. This curious piece of legislation, I ketplace. want to observe, is going to have vir- Mr. Chairman, if we want the 21st we can make a difference by supporting tually no consequences in terms of real century to be America’s century, we this very important piece of legislation increase in competition because, first need to continue to restructure our that will bring more competition, more of all, the competition that we are sup- competitive environment so that we choice, lower prices, and technology posed to be trying to enforce is not can compete and maintain our edge and innovation to the marketplace. being imposed on U.S. companies, but globally and this legislation does that. So with great honor, I rise in support rather, we are trying to impose it on This opens up tremendous potential for of the efforts today of the gentleman other companies in other countries U.S. consumers and industry. I think from Virginia (Mr. BLILEY) and the around the world. A most remarkable that it is particularly good for the end gentleman from Massachusetts (Mr. set of circumstances, to assert the long users, the consumers around the globe. MARKEY) and look forward to support- reach of the arms of the United States And just as we have seen in the do- ing this very important legislation. Congress, to impose on other countries mestic telecommunications market, Mr. DINGELL. Mr. Chairman, I yield and on their industries’ deregulation, a competition brings lower rates, better myself 7 minutes. most curious practice. services, and increased technological Mr. Chairman, this is a most remark- innovations. able piece of legislation. It is a wonder- But the last thing to which I want ful solution. It is a wonderful solution my colleagues to devote their atten- b 1145 seeking most actively for a problem. tion is the simple fact that under the The very same benefits are going to As a matter of fact, it is rushing wildly Tucker Act, the United States Con- come from this important bill in the from point to point to find some prob- gress is here engaging in an unlawful, international satellite marketplace. I lem that it can solve. unconstitutional, and improper and think it deserves the support of every- In the process, it is knocking over wrongful taking of assets belonging, one in this Chamber. the crockery and going to create enor- not to the government, and not to a H2832 CONGRESSIONAL RECORD — HOUSE May 6, 1998 wrongdoer, but simply to a U.S. cor- we will have imposed upon the United minute remaining. The gentleman poration, COMSAT, and also an inter- States an extortionate, unsatisfactory, from Virginia (Mr. BLILEY) has 3 min- ference in the contract rights of com- and outrageous liability for serious utes remaining and the right to close. panies which are subscribers and pur- constitutional misbehavior and for im- Mr. DINGELL. Mr. Chairman, I yield chasers of service from COMSAT. proper taking of property belonging to back the balance of my time on the un- This action alone will subject the American citizens. derstanding the gentleman from Vir- United States to billions of dollars in We are not playing games. We are not ginia is going to close. lawsuits and probably billions of dol- playing with foreigners. We are beating I have made such good speeches, I am lars in compensation that we will have American citizens for the benefit of sure they will benefit the gentleman in to pay, because we have interfered with just a few fat cats who are doing splen- his closing remarks. the contract rights, not just of COM- didly and who, in terms of their earn- Mr. BLILEY. Mr. Chairman, I yield SAT, but in the contract rights of peo- ings and their market share, are grow- myself the balance of my time, and the ple who do business with COMSAT. We ing at an extraordinary rate. first thing I would like to do is read a have interfered in a way which dimin- Ask yourself, my colleagues, is this list here of who is supporting this bill: ishes the value of the stock of the the way that this Congress should AMSC, Boeing, Columbia Commu- stockholders and the assets of COM- spend the budget surplus? Do we want nications, Constellation Communica- tions, Echostar, Final Analysis, GE SAT. Apart from the fact that this is to dissipate money because we have Americom, ICG Satellite Services, Irid- wrong, it is also something which is done something egregiously stupid ium LLC, Loral, Leo One USA, MCHI, protected by the Constitution. today? Motorola, Orbital Communications, Some of my friends have said, well, Mr. Chairman, I reserve the balance Orion Network Systems, PanAmSat, the Congress reserved to itself the of my time. Sky Station International, Stratus Mo- right to amend the statute. We always Mr. BLILEY. Mr. Chairman, how bile Networks, Teledesic, TRW Space do that. But we cannot, under the Con- much time do I have remaining? and Electronics Group, World Space stitution, reserve to ourselves the right The CHAIRMAN. The gentleman Management Corporation. to take the property of an American from Virginia (Mr. BLILEY) has 4 min- Satellite users in support of the bill: corporation. utes remaining, and the gentleman AT&T, Coalition of Service Industries, The Congress did this a while back. from Michigan (Mr. DINGELL) has 1 General Electric Company/NBC, MCI, Not many of my colleagues remember minute remaining. Sprint, Telecommunications Industry the time that we passed the Penn Cen- Mr. BLILEY. Mr. Chairman, I yield 1 Association, World Com. tral reorganization. But because we minute to the gentleman from Califor- Ethnic groups: Americans For Tax took property from Penn Central, the nia (Mr. COX). Reform, Republican National Hispanic American taxpayers wound up having Mr. COX of California. Mr. Chairman, Assembly, Armenian National Commit- to pay $6.5 billion. I am pleased to rise in support of H.R. tee of America, ASPIRA, Cuban Amer- Penn Central is no longer a railroad. 1872, the Communications Satellite ican National Council, Hispanic Coun- They are a holding company. They are Competition and Privatization Act, cil on International Relations, Na- listed on the New York Stock Ex- which will bring a notable and lasting tional Association of Latino Elected change. They are making fine earnings achievement for the current Congress. and Appointed Officials, National on the basis of investments that they I would particularly like to commend Council of La Raza, Polish American made with the money by which the the work of the gentleman from Vir- Congress, Puerto Rican Legal Defense Congress mistakenly enriched them be- ginia (Mr. BLILEY), the chairman of the Fund. cause they did an unlawful taking; and Committee on Commerce, whose dili- I would also like to speak about the under the Tucker Act, they are able to gent efforts have made it possible for so-called ‘‘taking.’’ This bill does not, sue. us to bring this important privatiza- does not, result in an unconstitutional Let us just look at some of the liabil- tion initiative to the floor. It has sig- taking of COMSAT’s property. Our bill ities that we are absorbing. I asked the nificant bipartisan support. does not take COMSAT’s property in staff to inquire to find out what it is The law that we are amending today, its contracts. We merely give cus- that we will be looking at in terms of the Satellite Communications Act, was tomers the right to renegotiate. This additional liability for the taxpayers. I enacted in 1962. That was less than 5 type of economic regulation is con- remind my colleagues, these are Amer- years after the launch of Sputnik. We stitutional. ican taxpayers who are going to have have to remember that, at that time, it The FCC has used ‘‘fresh look’’ four to pay. was widely assumed that no private times in the past and no one claimed I would tell my colleagues that over company could ever assume the finan- takings. We are not like the Penn Cen- $3 billion is the potential liability for cial burden of putting a satellite into tral Railroad. That was track and INTELSAT’s business. That includes orbit. other equipment. We do not take any revenue from restriction on additional It should not have come as a sur- of their equipment. services, direct access, and ‘‘fresh prise, therefore, that the 1962 Satellite In 1962, Congress reserved the right look,’’ $623 million for restriction on Communications Act gave COMSAT to regulate satellites at any time and replacement satellites carrying and INTELSAT, the intergovernmental to change the deal. COMSAT has no noncore services and a number of other treaty organization which COMSAT reasonable expectation amounting to a items. helped create, a virtual monopoly on property right that the regulatory re- In addition to that, there will be over the world’s international satellite busi- gime would not be altered. The Su- $4 billion in liabilities potential to ness. It remains a profitable monopoly. preme Court in 50 years has not ruled Inmarsat from business losses there, We have come a long way since 1962, on a ‘‘fresh look’’ case. Not in 50 years. over $157 million from restriction on and the myth that no private company The share of the market for inter- additional services, $327 million from could afford to get in the satellite busi- national satellite-based public switch the ‘‘fresh look’’ provisions of the leg- ness has long since been shattered. network service, voice and facsimile, 90 islation, and other liabilities that this This is the right bill. I urge support for percent of it, is held by COMSAT and Congress is assuming on behalf of a H.R. 1872. There is no longer any defen- INTELSAT. AT&T, MCI and Sprint, bunch of fat cats who, I reiterate, are sible reason for governments to be in yes, they have cables, but they have to seeking to cut a fat hog at the expense the business of providing commercial have a contract with COMSAT for re- not just of COMSAT, but at the ex- satellite services. dundancy in case the cable gets severed pense of the American taxpayers. b so they do not lose their customers. When, in a few years, my colleagues 1200 I urge all Members to resist amend- observe that a lawsuit has been filed, Mr. DINGELL. Mr. Chairman, could ments and to support the bill as re- get a hold of our wallet and be prepared the Chair tell us how much time is re- ported by voice vote out of the com- to defend what we have done today, be- maining? mittee. cause we will have dissipated billions The CHAIRMAN. The gentleman Mr. TOWNS. Mr. Chairman, I rise today in of dollars of the taxpayers’ assets, and from Michigan (Mr. DINGELL) has 1 support of H.R. 1872, the Communications May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2833 Satellite Competition and Privatization Act. Post, although I think that the Post made bet- telecommunciations service may purchase This legislation will serve to create a competi- ter reading. space segment capacity from Inmarsat, as of tive, free enterprise environment in both the While this is unfortunate, and will contribute January 1, 2000, if the Commission deter- to the decline in the importance of committee mines that (i) Inmarsat has adopted a usage domestic and international satellite market- charge mechanism that ensures fair com- place. reports as legislative history, I am particularly pensation to Inmarsat signatories for sup- As our global economy moves towards a concerned about the way in which the Report port costs that such signatories would not more competitive marketplace, H.R. 1872 treats the Committee's work with respect to otherwise be able to avoid under a direct ac- would also bring lower prices, increase com- proposed Section 641, and in particular those cess regime (for example, costs for insur- petition, and spur technological innovation. Al- dealing with ``Direct Access.'' ance, administrative, and other operations though I applaud the goals of H.R. 1872, I be- During the Telecommunications Subcommit- and maintenance expenditures); (ii) the Com- lieve that certain provisions within the bill are tee's consideration of H.R. 1872, I offered an mission’s regulations ensure that no foreign misguided and punitive. amendment to proposed Section 641 which signatory, nor its affiliate, is permitted to order space segment directly from Inmarsat Specifically, H.R. 1872 contains restrictions made significant revisions in the ``Direct Ac- in order to provide any service subject to the that will limit the services that Comsat can cess'' provisions. After I offered and explained Commission’s jurisdiction; and (iii) the Com- offer using its satellite services. The current my amendment, it was accepted by the Chair- mission has in place a means to ensure that language provides that if certain rigid mile- man of the Committee and approved without carriers will be required to pass through to stones are not met, Comsat would be forced dissent. end-users savings that result from the exer- to stop marketing certain services offered. If The provisions in the Committee Report do cise of such authority. adopted, this provision would give rise to a not reflect the plain text of my amendment, Subsection 641(2)(B) requires that providers nor my intentions as its author. or users of telecommunications service may ``takings'' claim under the Constitution, and obtain direct access to Inmarsat tele- would result in tremendous tax liabilities for LEGISLATIVE HISTORY OF SECTION 641 communications services through invest- consumers. As a supporter of fair and open Section 641 is entitled ‘‘Direct Access; ment in Inmarsat as of January 1, 2001, if the competition, I cannot condone such punitive Treatment of COMSAT at Nondominant Car- Commission finds that such investment will measures, and will support the amendment of- rier.’’ This Section requires the Commission be attained under procedures that assure fair fered by the gentlelady from Maryland, Rep- to take those actions that may be necessary compensation to Inmarsat signatories for to permit providers and users of tele- resentative CONNIE MORELLA, which would the market value of their investments. communications services to obtain direct ac- Subsection 641(3) requires the Commission permit Comsat to continue to use its property cess to INTELSAT and Inmarsat tele- to act on Comsat’s petition to be treated as and prohibit the FCC from implementing the communication services. Section 641 also re- a non-dominant carrier for the purposes of service restriction in a manner that would re- quires the Commission to act on Comsat’s the Commission’s regulations according to sult in a government ``takings''. petition to be treated as a non-dominant car- the provisions of section 10 of the Commu- H.R. 1872 also contains a provision that rier, and to eliminate any of its regulations nications Act of 1934 (47 U.S.C. § 160). would severely limit Comsat's ability to engage on the availability of direct access to Subsection 641(4) requires the Commission in binding contractual agreements. Proponents INTELSAT or Inmarsat, or to any successor to eliminate any regulation on the availabil- ity of direct access to INTELSAT or of the measure argue that ``Comsat has entities, after a pro-competitive privatiza- tion of this intergovernmental treaty organi- Inmarsat or to any successor entities after a `locked up' the market with long-term con- zations (‘‘IGOs’’) is achieved consistent with pro-competitive privatization of those inter- tracts'' and, therefore, customers of Comsat this statute. governmental satellite organizations is should be afforded the opportunity to unilater- Subsection 641(1) addresses direct access to achieved. ally breach their contracts so that they make INTELSAT telecommunications service CRITIQUE OF LEGISLATIVE HISTORY them a ``fresh look'' at any available competi- through either purchases of space segment The language contained in the Committee tor in the marketplace. While I agree that capacity in accordance with subsection Report is replete with instances in which the every business should be given an opportunity 641(1)(A) or through investment in report is substantially more punitive to to compete on a level playing field, I also be- INTELSAT in accordance with subsection Comsat than the text of the legislation 641(1)(B). adopted by the Committee. As discussed lieve that the stability of our global market- Specifically, Subsection 641(1)(A) provides below, the portion of the Report describing place depends on maintaining fairly bargained that providers or users of telecommuni- Section 641 is filled with inconsistencies and contractual agreements. To date, there has cations service may purchase space segment descriptions of provisions that neither ap- not been any evidence to prove any anti-com- capacity from INTELSAT, as of January 1, pear in the text nor were discussed by the petitive contractual negotiations by any of the 2000, if the Commission determines that (i) Committee. Not only are there numerous in- satellite companies. The strength of the U.S. INTELSAT has adopted a usage charge ternal inconsistencies, but when the descrip- economy, and even the world economy, de- mechanism that ensures fair compensation tion in the Report is compared with the ac- to INTELSAT signatories for support costs pends on contractual stability. This over- tual text of H.R. 1872, the factual misrepre- that such signatories would not otherwise be sentations become apparent. arching principle secures my support for the able to avoid under a direct access regime The first sentence of this portion of the amendment offered by the gentleman from (for example, costs for insurance, adminis- Report says that: ‘‘New sections 641(1) and Louisiana, Representative BILLY TAUZIN (R± trative, and other operations and mainte- 641(2) require the Commission to permit LA). nance expenditures); (ii) the Commission’s competitors to offer services through direct Let me be clear. I believe that H.R. 1872 regulations ensure that no foreign signatory, access to the INTELSAT and Inmarsat sys- will promote fair and open competition in the nor any affiliate of a foreign signatory, is tems.’’ The legislation requires the Commis- global satellite industry. Moreover, I believe permitted to order space segment directly sion to permit providers and users of tele- H.R. 1872 will create jobs for all of our com- from INTELSAT in order to provide any communications services to obtain tele- service subject to the Commission’s jurisdic- communications services directly for munities. At the end of the day, the most im- tion; and (iii) the Commission has in place a INTELSAT and Inmarsat. portant question we must ask ourselves is means to ensure that carriers will be re- The Report also states that if ‘‘the what did we do to benefit the citizens of this quired to pass through to end-users savings Inmarsat Operating Agreement is termi- great country. that result from the exercise of such author- nated, former signatories, including COM- Mr. Chairman, I urge my colleagues to vote ity. SAT for the provision of services in the Yes on the Morella and Tauzin amendments Subsection 641(1)(B) requires that providers United States, should not be the exclusive and Yes on the final passage of H.R. 1872. or users of telecommunications service may distributors of Inmarsat services.’’ The Re- Mr. DINGELL. Mr. Chairman, I would like to obtain direct access to INTELSAT tele- port continues: ‘‘the U.S. Administration and the Commission should, in the public in- call my colleagues' attention to the extraor- communications services through invest- ment in INTELSAT as of January 1, 2002, if terest, ensure that any Inmarsat privatiza- dinary discrepancies between the black-letter the Commission finds that such investment tion plan includes direct access until full pri- law of the statutory text and the contents of will be attained under procedures that assure vatization is fully implemented.’’ Neither of the Committee Report. If any of my colleagues fair compensation to INTELSAT signatories these provisions are contained in the text of would like to know why the judiciary pays little for the market value of their investments. the bill, nor were they discussed when my attention to the legislative history when at- Subsection 641(2) addresses direct access to amendment was accepted. tempting to interpret the statutes we write, the Inmarsat telecommunications services In its description of sections 641(1)(A)(i) through (iii), the Report again misrepresents Report to accompany this bill provides a mag- through either purchases of space segment capacity in accordance with subsection the requirements of the statute. First, the nificent example. The Committee Report on 641(2)(A), or through investment in Inmarsat Report states that these sections ‘‘describe H.R. 1872 is as accurate a reflection of inten- in accordance with subsection 641(2)(B). the circumstances which the Commission tions of the Committee when it considered Specifically, subsection 641(2)(A) provides should determine are present when the Com- H.R. 1872 as was yesterday's Washington that providers or users of mission implements direct access through H2834 CONGRESSIONAL RECORD — HOUSE May 6, 1998 purchases of space segment capacity from mittee does not intend for the Commission Passage of this bill also will represent a vic- INTELSAT.’’ First, the provisions of the bill to implement any form of carrier regulation tory for average American consumers. Privat- do not require the Commission to implement or reporting requirement that would rein- ization of this market will save consumers as direct access. Rather, the bill requires the state or be tantamount to dominant carrier Commission to ensure that it is possible for regulation on carriers found to be non-domi- much as $2.9 billion over the next decade. At carriers and users to obtain direct access. nant before the Committee’s consideration a time when American men and women work Additionally, this statement suggests that of H.R. 1872 . . . [however] [t]he foregoing hard every day to find new ways to make the Commission’s analysis will be conducted sentence does not apply to COMSAT . . .’’ ends meet for their families, it is essential that simultaneously with the occurrence of direct This provision penalizes Comsat by name we help them in their search. access, when in fact the plain language of even in those markets where the Commission We need a modern satellite market that pro- the legislative text requires that the Com- has determined it is non-dominant. Needless vides America and the world with high-quality mission determine if the conditions set forth to say, there is no basis for the provision products at affordable prices. We need to con- in sections 641(1)(A)(i) through (iii) are met contained in the Committee Report, either prior to permitting direct access. in the text of the legislation or in the Com- tinue to encourage the hard work and innova- The Report’s description of the conditions mittee debate when the provision was adopt- tion that has made this nation a world leader. for ensuring direct access is possible is also ed. Support the Communications Satellite Com- inaccurate. In particular, sections In its description of subsections petition and Privatization Act. 641(1)(A)(ii) and (2)(A)(ii) require that no for- 641(1)(A)(iii) and (2)(A)(iii), the Report states Mr. WATTS of Oklahoma. Mr. Chairman, I eign signatory or its affiliate are permitted that the requirement that the Commission rise in support of H.R. 1872, the Communica- to provide INTELSAT or Inmarsat services has in place a means to ensure that carriers tions Satellite Competition and Privatization from the United States. The text of the Re- will be required to pass through to end-users port incorrectly limits this condition to for- savings that result from the exercise of di- Act of 1998. In 1962, the U.S. became part of eign signatories. Moreover, the Report rect access authority will be met ‘‘if the the international satellite communications or- claims that sections 641(1)(A)(iii) and Commission finds that competition resulting ganizations. These monopoly organizations (2)(A)(iii) require the Commission to ensure from direct access will result in savings to are a relic of an earlier time when there were that carriers pass savings through to end- consumers over what they might pay in the only a few network television stations and ro- users. The statute, however, requires only absence of direct access.’’ Thus, if one were tary phones were the norm. The telecommuni- that the Commission have ‘‘in place a means to rely on the description in the Report one cations industry changes rapidly each year to ensure’’ that carriers will be required to would assume that the Commission has an pass savings through to end-users. affirmative obligation to undertake an anal- and we are over a generation away from The description of sections 641(1)(A)(i) and ysis of whether competition will result in 1962. (2)(A)(i) also diverges from the text of the savings to consumers. By contrast, the text It was not too long ago that cellular phones bill. In particular, the text of H.R. 1872 does of the legislation requires only that the were cutting edge technology and the Internet not contain the limitations on ‘‘unavoided Commission have a means in place to ensure was used exclusively by university professors. costs’’ that the Report suggests. For exam- that cost savings are passed on to end users. Now millions of Americans are enjoying these ple, the Report provides that ‘‘the only costs Once again, the text of the bill contradicts telecommunications services as markets are the description of that provision in the Re- covered by this section are those unavoid- deregulated in this country. H.R. 1872 contin- able signatory expenses in excess of all pay- port. ments to signatories from the IGOs.’’ This Finally, the Report describes subsection ues this trend which will potentially create limitation is not present in the legislative 641(4) as requiring ‘‘the Commission to sun- thousands of new jobs, save U.S. consumers text. Rather, the text of H.R. 1872 only refers set any regulation providing for direct access billions of dollars, and create new markets for to ‘‘support costs that such signatories to INTELSAT or Inmarsat when these orga- U.S. businesses. would not otherwise be able to avoid . . .’’ nizations fully privatize . . . ‘‘It is unclear I commend the work of Commerce Commit- how the Commission would ‘‘sunset’’ a regu- Moreover, the Report states that: ‘‘If such tee Chairman TOM BLILEY and Congressman lation. Actually, the statute requires the costs are in excess of or not covered by the MARKEY for their work in crafting this important IUC or by other payments to INTELSAT or Commission to ‘‘eliminate’’ any regulation on the availability of direct access. More- bi-partisan bill. Inmarsat, then this section shall be satisfied Mr. ADERHOLT. Mr. Chairman, I rise today if INTELSAT or Inmarsat has in place or over, the Report limits the scope of this pro- create a mechanism or other methodology or vision to INTELSAT and Inmarsat and ne- in support of H.R. 1872 which would open the legal regime which permits (or does not pre- glects the fact that ‘‘any successor entities’’ international satellite market to full competition clude) parties . . . to adopt means to ensure of INTELSAT and Inmarsat are included in and encourage the long-overdue privatization that such unavoidable, excess signatory the statute. of Intelsat and Inmarsat. The legislative history contained in this costs are covered by payments from other di- Committee Report constitutes a monument H.R. 1872 is a good bill, and it has been en- rect access providers or otherwise covered or to those who would dismiss committee re- dorsed by a wide variety of concerned citizen fairly compensated.’’ Again, there is no such ports as legitimate expressions of Congres- groups, including Americans for Tax Reform, provision in the statute. The Report contains a requirement that sional intent. This legislative history is which notes that ``this bill will lower the costs the Commission implement new subsections fraught with factual inconsistencies and of satellite communications to governmentÐ 641(1)(a)(ii) and 2(a)(ii) in a manner consist- would lead even the staunchest defender of money that would otherwise come out of the ent with U.S. obligations in World Trade Or- statutory construction to cringe. It is a bla- pockets of hard-working Americans.'' ganization (‘‘WTO’’) and to consult with Ex- tant attempt to rewrite a bill through its And if saving the American taxpayer money ecutive Branch agencies in this regard. legislative history. As a member of Congress, is not in and of itself sufficient reason to vote I am, quite frankly, offended by this, al- Again, the text of the statute contains no for H.R. 1872, Americans for Tax Reform also such provision. Moreover, direct access itself though I cannot say that I am surprised by it. We should aspire to have as our legacy correctly notes that we should be trying to ex- appears to be inconsistent with the United pand the reach of the free market, not letting States’ Schedule of Specific Commitments statutes of major importance that speak to agreed to in the WTO Basic Telecom Agree- the public in plain and ordinary terms. As an United Nations-like organizations and state- ment. integral part of those statutes, the legisla- owned foreign telephone companies keep U.S. In particular, the U.S. Schedule of Specific tive history should enhance, not attempt to firms from gaining access to foreign markets. Commitments limits, inter alia, direct access redefine, the fruits of our efforts. As the Su- H.R. 1872 would solve these problems and to INTELSAT and Inmarsat to Comsat, the preme Court has held: ‘‘In ascertaining the get the government out of the way so that U.S. Signatory to those IGOs, for the provi- meaning of a statute, a court cannot, in the manner of Sherlock Holmes, pursue the the- America's telecommunications and aerospace sion of basic telecommunications services. industries can provide new and innovative As the Commission noted in implementing ory of the dog that did not bark.’’ See Har- the WTO, this Schedule makes no distinction rison v. PPG Industries, Inc., 446 U.S. 578, 592, services to consumers around the world. with respect to international service and 64 L.Ed. 2d 525, 100 S. Ct. 1889 (1980). I urge my colleagues to join me in support- U.S. domestic services. Rather, it maintains Ms. DELAURO. Mr. Chairman, I rise in sup- ing H.R. 1872. access to INTELSAT and Inmarsat satellites port of the Communications Satellite Competi- Mr. DAVIS of Florida. Mr. Chairman, as a through Comsat for the provision of any tion and Privatization Act. co-sponsor of this important legislation, I rise service, domestic or international. Thus, any This bill will privatize the two Intergovern- today in strong support for H.R. 1872, the action by the U.S. Government permitting mental Satellite Organizations, Intelsat and Communications Satellite Competition and Pri- carriers to have direct access to space seg- InmarsatÐopening the international satellite vatization Act. In short, this bill will reform our ment from INTELSAT will conflict with this market to the wide range of American firms 1960's era satellite telecommunications policy Schedule of Specific Commitments because it will permit carriers to circumvent Com- eager to compete in it. American ideas and in- and promote competition in satellite services sat. genuity have made this country great. It is our and technology. In describing subsections 641(1)(A)(iii) and responsibility, as members of Congress, to en- Over thirty-five years ago, when Congress (2)(A)(iii), the Report states that: ‘‘The Com- courage these values, not stifle them. passed the 1962 Communications Satellite May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2835 Act, it was believed that only governments Clearly, my friends, times have changed thority for any entity subject to United States could finance and manage a global satellite since then, and now we have many private jurisdiction to use space segment owned, leased, system. Today, the rapid advances and businesses that are ready to invest in the sat- or operated by INTELSAT or Inmarsat or any growth within the telecommunications industry successor entities to provide non-core services to, ellite industry. In short, the private sector is from, or within the United States, unless the far surpass anything we could have imagined ready for competition in this industry. But the Commission determines— in the early 1960's. Today, there is no longer major roadblock to competition is an outdated ‘‘(A) after January 1, 2002, in the case of a need for a privileged international organiza- Federal law that needs to be brought into the INTELSAT and its successor entities, that tion to provide satellite communications serv- 1990's and bridge us to next Millennium. INTELSAT and any successor entities have been ices in competition with private commercial That's why I'm supporting H.R. 1872, a bill privatized in a manner that will not harm com- services. Passage of this legislation will break that breaks down decades old barriers to com- petition in the telecommunications markets of up the last lawful telecommunications monop- petition by eliminating the bottleneck that has the United States; or oly in the United States and bring greater ‘‘(B) after January 1, 2001, in the case of kept satellite rates artificially high. It's time for Inmarsat and its successor entities, that competition, innovation, and efficiency to the government to get out of the way and let com- Inmarsat and any successor entities have been international satellite industry. petition brings its benefits of lower rates and privatized in a manner that will not harm com- This bill embodies the belief that open com- enhanced technology to the satellite industry. petition in the telecommunications markets of petitive markets will result in greater benefits Mr. BLILEY. Mr. Chairman, I yield the United States. to the industry, the economy, and most impor- back the balance of my time. ‘‘(2) CRITERIA FOR COMPETITION TEST.—In tantly, the consumers. While over 85 other na- The CHAIRMAN. All time for general making the determination required by para- tions have allowed direct access to INTELSAT graph (1), the Commission shall use the licens- debate has expired. ing criteria in sections 621, 622, and 624, and and Inmarsat services, the United States mar- Pursuant to the rule, the committee ket remains monopolized by COMSAT. The shall not make such a determination unless the amendment in the nature of a sub- Commission determines that such privatization result is that U.S. satellite consumers pay in- stitute printed in the bill is considered is consistent with such criteria. flated prices. A recent study showed that the as an original bill for the purpose of ‘‘(3) CLARIFICATION: COMPETITIVE SAFE- privatization called for under H.R. 1872 would amendment under the 5-minute rule GUARDS.—In making its licensing decisions save consumers $2.9 billion over the next ten and is considered read. under this subsection, the Commission shall con- years. Furthermore, this legislation will save The text of the committee amend- sider whether users of non-core services pro- U.S., taxpayers $700 million by cutting the vided by INTELSAT or Inmarsat or successor or ment in the nature of a substitute is as separated entities are able to obtain non-core costs of government communications. follows: Mr. Chairman, the bill before us today will fi- services from providers offering services other nally bring satellite communications policy into H.R. 1872 than through INTELSAT or Inmarsat or succes- Be it enacted by the Senate and House of Rep- sor or separated entities, at competitive rates, the modern era. It recognizes that the current terms, or conditions. Such consideration shall system distorts the marketplace and takes resentatives of the United States of America in Congress assembled, also include whether such licensing decisions reasonable and modest steps to ensure com- would require users to replace equipment at sub- petition bringing lower prices and higher qual- SECTION 1. SHORT TITLE. stantial costs prior to the termination of its de- ity services for satellite users. This bill is good This Act may be cited as the ‘‘Communica- sign life. In making its licensing decisions, the tions Satellite Competition and Privatization Commission shall also consider whether competi- for consumers, good for businesses and work- Act of 1998’’. ers, and good for the United States taxpayer. tive alternatives in individual markets do not SEC. 2. PURPOSE. exist because they have been foreclosed due to I urge all of my colleagues to support H.R. It is the purpose of this Act to promote a fully 1872. anticompetitive actions undertaken by or result- competitive global market for satellite commu- ing from the INTELSAT or Inmarsat systems. Mr. HASTERT. Mr. Chairman, we all know nication services for the benefit of consumers Such licensing decisions shall be made in a man- satellite technology is moving at light-year and providers of satellite services and equipment ner which facilitates achieving the purposes and speed, and that our manufacturers are the by fully privatizing the intergovernmental sat- goals in this title and shall be subject to notice best in the world. However, the 30-year-old ellite organizations, INTELSAT and Inmarsat. and comment. law under which they operate needs to be up- SEC. 3. REVISION OF COMMUNICATIONS SAT- ‘‘(c) ADDITIONAL CONSIDERATIONS IN DETER- dated for the twenty-first century. ELLITE ACT OF 1962. MINATIONS.—In making its determinations and Private companies like Motorola, PanAmSat The Communications Satellite Act of 1962 (47 licensing decisions under subsections (a) and and Teledesic are planning ventures that U.S.C. 101) is amended by adding at the end the (b), the Commission shall take into consider- would have been unthinkable three decades following new title: ation the United States obligations and commit- ments for satellite services under the Fourth ago. Consider Motorola for a momentÐIts net- ‘‘TITLE VI—COMMUNICATIONS COMPETITION AND PRIVATIZATION Protocol to the General Agreement on Trade in work of more than 60 satellites, known as Irid- Services. ‘‘Subtitle A—Actions To Ensure ium, will soon begin providing voice and pag- ‘‘(d) INDEPENDENT FACILITIES COMPETITION.— ing services. Further down the road is its pro- Procompetitive Privatization Nothing in this section shall be construed as posal to complete a network of more than 70 ‘‘SEC. 601. FEDERAL COMMUNICATIONS COMMIS- precluding COMSAT from investing in or own- satellites, known as Celestri, in order to pro- SION LICENSING. ing satellites or other facilities independent from ‘‘(a) LICENSING FOR SEPARATED ENTITIES.— vide high-speed data and video services INTELSAT and Inmarsat, and successor or sep- ‘‘(1) COMPETITION TEST.—The Commission arated entities, or from providing services worldwide. may not issue a license or construction permit to Mr. Chairman, I believe the effect of this through reselling capacity over the facilities of any separated entity, or renew or permit the as- satellite systems independent from INTELSAT legislation will be a boon to consumers as signment or use of any such license or permit, or and Inmarsat, and successor or separated enti- they benefit from the increased efficiency and authorize the use by any entity subject to ties. This subsection shall not be construed as lower costs that competition brings. Although United States jurisdiction of any space segment restricting the types of contracts which can be IntelSat and InMarSat have served us well, we owned, leased, or operated by any separated en- executed or services which may be provided by all know it's time for these organizations to tity, unless the Commission determines that COMSAT over the independent satellites or fa- join other cold war relics on the scrap heap of such issuance, renewal, assignment, or use will cilities described in this subsection. not harm competition in the telecommunications history. ‘‘SEC. 602. INTELSAT OR INMARSAT ORBITAL LO- Mr. LUCAS of Oklahoma. Mr. Chairman, I market of the United States. If the Commission CATIONS. does not make such a determination, it shall ‘‘(a) REQUIRED ACTIONS.—Unless, in a pro- rise today in support of H.R. 1872, the Com- deny or revoke authority to use space segment munications Satellite Competition and Privat- ceeding under section 601(b), the Commission de- owned, leased, or operated by the separated en- termines that INTELSAT or Inmarsat have been ization Act of 1998. tity to provide services to, from, or within the privatized in a manner that will not harm com- When Congress set up a satellite monopoly United States. petition, then— with the Satellite Act of 1962, few people ‘‘(2) CRITERIA FOR COMPETITION TEST.—In ‘‘(1) the President shall oppose, and the Com- could imagine a day when you could warm up making the determination required by para- mission shall not assist, any registration for new dinner in 60 seconds with a microwave or put graph (1), the Commission shall use the licens- orbital locations for INTELSAT or Inmarsat— a plastic card into an automatic teller machine ing criteria in sections 621 and 623, and shall ‘‘(A) with respect to INTELSAT, after Janu- to get money 24 hours a day. And Congress not make such a determination unless the Com- ary 1, 2002, and mission determines that the privatization of any did not think that private industry could afford ‘‘(B) with respect to Inmarsat, after January separated entity is consistent with such criteria. 1, 2001, and to put satellites up into space. With that ‘‘(b) LICENSING FOR INTELSAT, INMARSAT, ‘‘(2) the President and Commission shall, con- 1960's logic, Congress created a satellite mo- AND SUCCESSOR ENTITIES.— sistent with the deadlines in paragraph (1), take nopoly to ensure the United States would not ‘‘(1) COMPETITION TEST.—The Commission all other necessary measures to preclude pro- be left behind. shall substantially limit, deny, or revoke the au- curement, registration, development, or use of H2836 CONGRESSIONAL RECORD — HOUSE May 6, 1998 new satellites which would provide non-core 2001, the Commission shall not find that the tional services (including additional applica- services. conditions required by this subsection have been tions of existing services) or additional areas of ‘‘(b) EXCEPTION.— attained unless the INTELSAT Assembly of Par- business. ‘‘(1) REPLACEMENT AND PREVIOUSLY CON- ties has approved a recommendation for the pro- ‘‘(5) CONVERSION TO STOCK CORPORATIONS.— TRACTED SATELLITES.—Subsection (a) shall not competitive privatization of INTELSAT in ac- Any successor entity or separated entity created apply to— cordance with the requirements of this title. out of INTELSAT or Inmarsat shall be a na- ‘‘(A) orbital locations for replacement sat- ‘‘(5) FOURTH FINDING.—In making the finding tional corporation established through the exe- ellites (as described in section 622(2)(B)), and required to be made on or before January 1, cution of an initial public offering as follows: ‘‘(B) orbital locations for satellites that are 2002, the Commission shall not find that the ‘‘(A) Any successor entities and separated en- contracted for as of March 25, 1998, if such sat- conditions required by this subsection have been tities shall be incorporated as private corpora- ellites do not provide additional services. attained unless the pro-competitive privatization tions subject to the laws of the nation in which ‘‘(2) LIMITATION ON EXCEPTION.—Paragraph of INTELSAT in accordance with the require- incorporated. (1) is available only with respect to satellites de- ments of this title has been achieved by such ‘‘(B) An initial public offering of securities of signed to provide services solely in the C and date. any successor entity or separated entity shall be Ku, for INTELSAT, and L, for Inmarsat, bands. ‘‘(6) CRITERIA FOR EVALUATION OF HINDERING conducted no later than— ‘‘SEC. 603. ADDITIONAL SERVICES AUTHORIZED. ACCESS.—The Commission shall not make a de- ‘‘(i) January 1, 2001, for the successor entities ‘‘(a) SERVICES AUTHORIZED DURING CONTIN- termination under paragraph (1)(B) unless the of INTELSAT; and UED PROGRESS.— Commission determines that INTELSAT and ‘‘(ii) January 1, 2000, for the successor entities ‘‘(1) CONTINUED AUTHORIZATION.—The Com- Inmarsat are not in any way impairing, delay- of Inmarsat. mission may issue an authorization, license, or ing, or denying access to national markets or or- ‘‘(C) The shares of any successor entities and permit to, or renew the license or permit of, any bital locations. separated entities shall be listed for trading on provider of services using INTELSAT or ‘‘(c) EXCEPTION FOR SERVICES UNDER EXIST- one or more major stock exchanges with trans- Inmarsat space segment, or authorize the use of ING CONTRACTS IF PROGRESS NOT MADE.—This parent and effective securities regulation. such space segment, for additional services (in- section shall not preclude INTELSAT or ‘‘(D) A majority of the board of directors of cluding additional applications of existing serv- Inmarsat or any signatory thereof from continu- any successor entity or separated entity shall ices) or additional areas of business, subject to ing to provide additional services under an not be subject to selection or appointment by, or the requirements of this section. agreement with any third party entered into otherwise serve as representatives of— ‘‘(2) ADDITIONAL SERVICES PERMITTED UNDER prior to any finding under subsection (b) that ‘‘(i) any signatory or former signatory that NEW CONTRACTS UNLESS PROGRESS FAILS.—If the the conditions of such subsection have not been controls access to national telecommunications Commission makes a finding under subsection attained. markets; or (b) that conditions required by such subsection ‘‘Subtitle B—Federal Communications Com- ‘‘(ii) any intergovernmental organization re- have not been attained, the Commission may mission Licensing Criteria: Privatization maining after the privatization. not, pursuant to paragraph (1), permit such ad- Criteria ‘‘(E) Any transactions or other relationships ditional services to be provided directly or indi- between or among any successor entity, sepa- rectly under new contracts for the use of ‘‘SEC. 621. GENERAL CRITERIA TO ENSURE A PRO- rated entity, INTELSAT, or Inmarsat shall be INTELSAT or Inmarsat space segment, unless COMPETITIVE PRIVATIZATION OF INTELSAT AND INMARSAT. conducted on an arm’s length basis. and until the Commission subsequently makes a EGULATORY TREATMENT.—Any successor ‘‘The President and the Commission shall se- ‘‘(6) R finding under such subsection that such condi- entity or separated entity shall apply through cure a pro-competitive privatization of tions have been attained. the appropriate national licensing authorities INTELSAT and Inmarsat that meets the criteria ‘‘(3) PREVENTION OF EVASION.—The Commis- for international frequency assignments and as- set forth in this section and sections 622 through sion shall, by rule, prescribe means reasonably sociated orbital registrations for all satellites. 624. In securing such privatizations, the follow- designed to prevent evasions of the limitations ‘‘(7) COMPETITION POLICIES IN DOMICILIARY ing criteria shall be applied as licensing criteria contained in paragraph (2) by customers who COUNTRY.—Any successor entity or separated for purposes of subtitle A: did not use specific additional services as of the entity shall be incorporated and headquartered date of the Commission’s most recent finding ‘‘(1) DATES FOR PRIVATIZATION.—Privatization shall be obtained in accordance with the criteria in a nation or nations that— under subsection (b) that the conditions of such ‘‘(A) have effective laws and regulations that subsection have not been obtained. of this title of— ‘‘(A) INTELSAT as soon as practicable, but secure competition in telecommunications serv- ‘‘(b) REQUIREMENTS FOR ANNUAL FINDINGS.— no later than January 1, 2002, and ices; ‘‘(1) GENERAL REQUIREMENTS.—The findings ‘‘(B) are signatories of the World Trade Orga- required under this subsection shall be made, ‘‘(B) Inmarsat as soon as practicable, but no later than January 1, 2001. nization Basic Telecommunications Services after notice and comment, on or before January Agreement; and 1 of 1999, 2000, 2001, and 2002. The Commission ‘‘(2) INDEPENDENCE.—The successor entities and separated entities of INTELSAT and ‘‘(C) have a schedule of commitments in such shall find that the conditions required by this Agreement that includes non-discriminatory subsection have been attained only if the Com- Inmarsat resulting from the privatization ob- tained pursuant to paragraph (1) shall— market access to their satellite markets. mission finds that— ‘‘(8) RETURN OF UNUSED ORBITAL LOCATIONS.— ‘‘(A) be entities that are national corpora- ‘‘(A) substantial and material progress has INTELSAT, Inmarsat, and any successor enti- tions; and been made during the preceding period at a rate ties and separated entities shall not be permitted ‘‘(B) have ownership and management that is and manner that is probable to result in achiev- to warehouse any orbital location that— independent of— ing pro-competitive privatizations in accordance ‘‘(A) as of March 25, 1998, did not contain a ‘‘(i) any signatories or former signatories that with the requirements of this title; and satellite that was providing commercial services, control access to national telecommunications ‘‘(B) neither INTELSAT nor Inmarsat are or, subsequent to such date, ceased to contain a markets; and hindering competitors’ or potential competitors’ satellite providing commercial services; or ‘‘(ii) any intergovernmental organization re- access to the satellite services marketplace. ‘‘(B) as of March 25, 1998, was not designated maining after the privatization. ‘‘(2) FIRST FINDING.—In making the finding in INTELSAT or Inmarsat operational plans for ‘‘(3) TERMINATION OF PRIVILEGES AND IMMUNI- required to be made on or before January 1, satellites for which construction contracts had TIES.—The preferential treatment of INTELSAT 1999, the Commission shall not find that the been executed. conditions required by this subsection have been and Inmarsat shall not be extended to any suc- attained unless the Commission finds that— cessor entity or separated entity of INTELSAT Any such orbital location of INTELSAT or ‘‘(A) COMSAT has submitted to the or Inmarsat. Such preferential treatment in- Inmarsat and of any successor entities and sep- INTELSAT Board of Governors a resolution cludes— arated entities shall be returned to the Inter- calling for the pro-competitive privatization of ‘‘(A) privileged or immune treatment by na- national Telecommunication Union for realloca- INTELSAT in accordance with the requirements tional governments; tion. of this title; and ‘‘(B) privileges or immunities or other competi- ‘‘(9) APPRAISAL OF ASSETS.—Before any trans- ‘‘(B) the United States has submitted such res- tive advantages of the type accorded INTELSAT fer of assets by INTELSAT or Inmarsat to any olution at the first INTELSAT Assembly of Par- and Inmarsat and their signatories through the successor entity or separated entity, such assets ties meeting that takes place after such date of terms and operation of the INTELSAT Agree- shall be independently audited for purposes of enactment. ment and the associated Headquarters Agree- appraisal, at both book and fair market value. ‘‘(3) SECOND FINDING.—In making the finding ment and the Inmarsat Convention; and ‘‘(10) LIMITATION ON INVESTMENT.—Notwith- required to be made on or before January 1, ‘‘(C) preferential access to orbital locations, standing the provisions of this title, COMSAT 2000, the Commission shall not find that the including any access to orbital locations that is shall not be authorized by the Commission to in- conditions required by this subsection have been not subject to the legal or regulatory processes vest in a satellite known as K–TV, unless Con- attained unless the INTELSAT Assembly of Par- of a national government that applies due dili- gress authorizes such investment. ties has created a working party to consider and gence requirements intended to prevent the ‘‘SEC. 622. SPECIFIC CRITERIA FOR INTELSAT. make recommendations for the pro-competitive warehousing of orbital locations. ‘‘In securing the privatizations required by privatization of INTELSAT consistent with such ‘‘(4) PREVENTION OF EXPANSION DURING TRAN- section 621, the following additional criteria resolution. SITION.—During the transition period prior to with respect to INTELSAT privatization shall be ‘‘(4) THIRD FINDING.—In making the finding full privatization, INTELSAT and Inmarsat applied as licensing criteria for purposes of sub- required to be made on or before January 1, shall be precluded from expanding into addi- title A: May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2837

‘‘(1) NUMBER OF COMPETITORS.—The number applied as licensing criteria for purposes of sub- ‘‘(b) IMPOSITION OF COST-BASED SETTLEMENT of competitors in the markets served by title A: RATE.—Notwithstanding— INTELSAT, including the number of competitors ‘‘(1) MULTIPLE SIGNATORIES AND DIRECT AC- ‘‘(1) any higher settlement rate that an over- created out of INTELSAT, shall be sufficient to CESS.—Multiple signatories and direct access to seas carrier charges any United States carrier to create a fully competitive market. Inmarsat shall be permitted. originate or terminate international message ‘‘(2) PREVENTION OF EXPANSION DURING TRAN- ‘‘(2) PREVENTION OF EXPANSION DURING TRAN- telephone services, and SITION.— SITION.—Pending privatization in accordance ‘‘(2) any transition period that would other- ‘‘(A) IN GENERAL.—Pending privatization in with the criteria in this title, Inmarsat should wise apply, accordance with the criteria in this title, not expand by receiving additional orbital loca- the Commission may by rule prohibit United INTELSAT shall not expand by receiving addi- tions, placing new satellites in existing loca- States carriers from paying an amount in excess tional orbital locations, placing new satellites in tions, or procuring new or additional satellites, of a cost-based settlement rate to overseas car- existing locations, or procuring new or addi- except for specified replacement satellites for riers in countries listed by the Commission pur- tional satellites except as permitted by subpara- which construction contracts have been exe- suant to subsection (a). graph (B), and the United States shall oppose cuted as of March 25, 1998, and the United ‘‘(c) SETTLEMENTS POLICY.—The Commission such expansion— States shall oppose such expansion— shall, in exercising its authority to establish set- ‘‘(i) in INTELSAT, including at the Assembly ‘‘(A) in Inmarsat, including at the Council tlements rates for United States international of Parties, and Assembly of Parties, common carriers, seek to advance United States ‘‘(ii) in the International Telecommunication ‘‘(B) in the International Telecommunication policy in favor of cost-based settlements in all Union, Union, relevant fora on international telecommuni- ‘‘(C) through United States instructions to ‘‘(iii) through United States instructions to cations policy, including in meetings with par- COMSAT, COMSAT, ties and signatories of INTELSAT and ‘‘(D) in the Commission, through declining to ‘‘(iv) in the Commission, through declining to Inmarsat. facilitate the registration of additional orbital facilitate the registration of additional orbital ‘‘Subtitle C—Deregulation and Other locations or the provision of additional services locations or the provision of additional services Statutory Changes (including additional applications of existing (including additional applications of existing services) or additional areas of business; and services) or additional areas of business, and ‘‘SEC. 641. DIRECT ACCESS; TREATMENT OF COM- ‘‘(v) in other appropriate fora. ‘‘(E) in other appropriate fora. SAT AS NONDOMINANT CARRIER. ‘‘(B) EXCEPTION FOR CERTAIN REPLACEMENT This paragraph shall not be construed as limit- ‘‘The Commission shall take such actions as SATELLITES.—The limitations in subparagraph ing the maintenance, assistance or improvement may be necessary— (A) shall not apply to any replacement satellites of the GMDSS. ‘‘(1) to permit providers or users of tele- if— ‘‘(3) NUMBER OF COMPETITORS.—The number communications services to obtain direct access ‘‘(i) such replacement satellite is used solely to of competitors in the markets served by to INTELSAT telecommunications services— provide public-switched network voice telephony Inmarsat, including the number of competitors ‘‘(A) through purchases of space segment ca- or occasional-use television services, or both; created out of Inmarsat, shall be sufficient to pacity from INTELSAT as of January 1, 2000, if ‘‘(ii) such replacement satellite is procured create a fully competitive market. the Commission determines that— pursuant to a construction contract that was ‘‘(4) REAFFILIATION PROHIBITED.—Any merger ‘‘(i) INTELSAT has adopted a usage charge executed on or before March 25, 1998; and or ownership or management ties or exclusive mechanism that ensures fair compensation to ‘‘(iii) construction of such replacement sat- arrangements between Inmarsat or any succes- INTELSAT signatories for support costs that ellite commences on or before the final date for sor entity or separated entity and ICO shall be such signatories would not otherwise be able to INTELSAT privatization set forth in section prohibited until 15 years after the completion of avoid under a direct access regime, such as in- 621(1)(A). Inmarsat privatization under this title. surance, administrative, and other operations and maintenance expenditures; ‘‘(3) TECHNICAL COORDINATION AMONG SIG- ‘‘(5) INTERLOCKING DIRECTORATES OR EMPLOY- ‘‘(ii) the Commission’s regulations ensure that NATORIES.—Technical coordination shall not be EES.—None of the officers, directors, or employ- used to impair competition or competitors, and ees of Inmarsat or any successor entity or sepa- no foreign signatory, nor any affiliate thereof, coordination under Article XIV(d) of the rated entity shall be individuals who are offi- shall be permitted to order space segment di- INTELSAT Agreement shall be eliminated. cers, directors, or employees of ICO. rectly from INTELSAT in order to provide any ‘‘(6) SPECTRUM ASSIGNMENTS.—The portions of service subject to the Commission’s jurisdiction; ‘‘SEC. 623. SPECIFIC CRITERIA FOR INTELSAT ‘‘(iii) the Commission has in place a means to SEPARATED ENTITIES. the electromagnetic spectrum assigned as of the ensure that carriers will be required to pass ‘‘In securing the privatizations required by date of enactment of this title to Inmarsat— ‘‘(A) shall, after January 1, 2006, or the date through to end-users savings that result from section 621, the following additional criteria on which the life of the current generation of the exercise of such authority; with respect to any INTELSAT separated entity Inmarsat satellites ends, whichever is later, be ‘‘(B) through investment in INTELSAT as of shall be applied as licensing criteria for pur- made available for assignment to all systems (in- January 1, 2002, if the Commission determines poses of subtitle A: cluding the privatized Inmarsat) on a non- that such investment will be attained under pro- ‘‘(1) DATE FOR PUBLIC OFFERING.—Within one discriminatory basis and in a manner in which cedures that assure fair compensation to year after any decision to create any separated continued availability of the GMDSS is pro- INTELSAT signatories for the market value of entity, a public offering of the securities of such vided; and their investments; entity shall be conducted. ‘‘(B) shall not be transferred between ‘‘(2) to permit providers or users of tele- ‘‘(2) PRIVILEGES AND IMMUNITIES.—The privi- Inmarsat and ICO. communications services to obtain direct access leges and immunities of INTELSAT and its sig- ‘‘(7) PRESERVATION OF THE GMDSS.—The to Inmarsat telecommunications services— natories shall be waived with respect to any United States shall seek to preserve space seg- ‘‘(A) through purchases of space segment ca- transactions with any separated entity, and any ment capacity of the GMDSS. pacity from Inmarsat as of January 1, 2000, if limitations on private causes of action that the Commission determines that— would otherwise generally be permitted against ‘‘SEC. 625. ENCOURAGING MARKET ACCESS AND PRIVATIZATION. ‘‘(i) Inmarsat has adopted a usage charge any separated entity shall be eliminated. ‘‘(a) NTIA DETERMINATION.— mechanism that ensures fair compensation to ‘‘(3) INTERLOCKING DIRECTORATES OR EMPLOY- ‘‘(1) DETERMINATION REQUIRED.—Within 180 Inmarsat signatories for support costs that such EES.—None of the officers, directors, or employ- days after the date of enactment of this section, signatories would not otherwise be able to avoid ees of any separated entity shall be individuals the Secretary of Commerce shall, through the under a direct access regime, such as insurance, who are officers, directors, or employees of Assistant Secretary for Communications and In- administrative, and other operations and main- INTELSAT. formation, transmit to the Commission— tenance expenditures; ‘‘(4) SPECTRUM ASSIGNMENTS.—After the ini- ‘‘(A) a list of Member countries of INTELSAT ‘‘(ii) the Commission’s regulations ensure that tial transfer which may accompany the creation and Inmarsat that are not Members of the no foreign signatory, nor any affiliate thereof, of a separated entity, the portions of the electro- World Trade Organization and that impose bar- shall be permitted to order space segment di- magnetic spectrum assigned as of the date of en- riers to market access for private satellite sys- rectly from Inmarsat in order to provide any actment of this title to INTELSAT shall not be tems; and service subject to the Commission’s jurisdiction; transferred between INTELSAT and any sepa- ‘‘(B) a list of Member countries of INTELSAT ‘‘(iii) the Commission has in place a means to rated entity. and Inmarsat that are not Members of the ensure that carriers will be required to pass ‘‘(5) REAFFILIATION PROHIBITED.—Any merger World Trade Organization and that are not sup- through to end-users savings that result from or ownership or management ties or exclusive porting pro-competitive privatization of the exercise of such authority; and arrangements between a privatized INTELSAT INTELSAT and Inmarsat. ‘‘(B) through investment in Inmarsat as of or any successor entity and any separated en- ‘‘(2) CONSULTATION.—The Secretary’s deter- January 1, 2001, if the Commission determines tity shall be prohibited until 15 years after the minations under paragraph (1) shall be made in that such investment will be attained under pro- completion of INTELSAT privatization under consultation with the Federal Communications cedures that assure fair compensation to this title. Commission, the Secretary of State, and the Inmarsat signatories for the market value of ‘‘SEC. 624. SPECIFIC CRITERIA FOR INMARSAT. United States Trade Representative, and shall their investments; ‘‘In securing the privatizations required by take into account the totality of a country’s ac- ‘‘(3) to act on COMSAT’s petition to be treat- section 621, the following additional criteria tions in all relevant fora, including the Assem- ed as a nondominant carrier for the purposes of with respect to Inmarsat privatization shall be blies of Parties of INTELSAT and Inmarsat. the Commission’s regulations according to the H2838 CONGRESSIONAL RECORD — HOUSE May 6, 1998 provisions of section 10 of the Communications Commission shall have the authority to impose ‘‘Subtitle D—Negotiations To Pursue Act of 1934 (47 U.S.C. 160); and similar regulatory fees on the United States sig- Privatization ‘‘(4) to eliminate any regulation on the avail- natory which it imposes on other entities provid- ‘‘SEC. 661. METHODS TO PURSUE PRIVATIZATION. ability of direct access to INTELSAT or ing similar services. ‘‘The President shall secure the pro-competi- Inmarsat or to any successor entities after a ‘‘SEC. 644. ELIMINATION OF PROCUREMENT PREF- tive privatizations required by this title in a pro-competitive privatization is achieved con- ERENCES. manner that meets the criteria in subtitle B. sistent with sections 621, 622 and 624. ‘‘Nothing in this title or the Communications ‘‘Subtitle E—Definitions ‘‘SEC. 642. TERMINATION OF MONOPOLY STATUS. Act of 1934 shall be construed to authorize or re- ‘‘SEC. 681. DEFINITIONS. ‘‘(a) RENEGOTIATION OF MONOPOLY CON- quire any preference, in Federal Government N ENERAL TRACTS PERMITTED.—The Commission shall, be- procurement of telecommunications services, for ‘‘(a) I G .—As used in this title: ginning January 1, 2000, permit users or provid- the satellite space segment provided by ‘‘(1) INTELSAT.—The term ‘INTELSAT’ ers of telecommunications services that pre- INTELSAT, Inmarsat, or any successor entity or means the International Telecommunications viously entered into contracts or are under a separated entity. Satellite Organization established pursuant to tariff commitment with COMSAT to have an op- ‘‘SEC. 645. USE OF ITU TECHNICAL COORDINA- the Agreement Relating to the International portunity, at their discretion, for a reasonable TION. Telecommunications Satellite Organization period of time, to renegotiate those contracts or ‘‘The Commission and United States satellite (INTELSAT). NMARSAT.—The term ‘Inmarsat’ means commitments on rates, terms, and conditions or companies shall utilize the International Tele- ‘‘(2) I the International Mobile Satellite Organization other provisions, notwithstanding any term or communication Union procedures for technical established pursuant to the Convention on the volume commitments or early termination coordination with INTELSAT and its successor International Maritime Organization. charges in any such contracts with COMSAT. entities and separated entities, rather than ‘‘(3) SIGNATORIES.—The term ‘signatories’— ‘‘(b) COMMISSION AUTHORITY TO ORDER RE- INTELSAT procedures. ‘‘(A) in the case of INTELSAT, or INTELSAT NEGOTIATION.—Nothing in this title shall be con- ‘‘SEC. 646. TERMINATION OF COMMUNICATIONS successors or separated entities, means a Party, strued to limit the authority of the Commission SATELLITE ACT OF 1962 PROVISIONS. or the telecommunications entity designated by to permit users or providers of telecommuni- ‘‘Effective on the dates specified, the follow- a Party, that has signed the Operating Agree- cations services that previously entered into ing provisions of this Act shall cease to be effec- ment and for which such Agreement has entered contracts or are under a tariff commitment with tive: into force or to which such Agreement has been COMSAT to have an opportunity, at their dis- ‘‘(1) Date of enactment of this title: Sections provisionally applied; and cretion, to renegotiate those contracts or com- 101 and 102; paragraphs (1), (5) and (6) of sec- ‘‘(B) in the case of Inmarsat, or Inmarsat suc- mitments on rates, terms, and conditions or tion 201(a); section 301; section 303; section 502; cessors or separated entities, means either a other provisions, notwithstanding any term or and paragraphs (2) and (4) of section 504(a). Party to, or an entity that has been designated volume commitments or early termination ‘‘(2) On the effective date of the Commission’s by a Party to sign, the Operating Agreement. charges in any such contracts with COMSAT. order that establishes direct access to INTELSAT space segment: Paragraphs (1), (3) ‘‘(4) PARTY.—The term ‘Party’— ‘‘(c) PROVISIONS CONTRARY TO PUBLIC POLICY ‘‘(A) in the case of INTELSAT, means a na- through (5), and (8) through (10) of section VOID.—Whenever the Commission permits users tion for which the INTELSAT agreement has 201(c); and section 304. or providers of telecommunications services to entered into force or been provisionally applied; renegotiate contracts or commitments as de- ‘‘(3) On the effective date of the Commission’s order that establishes direct access to Inmarsat and scribed in this section, the Commission may pro- ‘‘(B) in the case of Inmarsat, means a nation space segment: Subsections (a) through (d) of vide that any provision of any contract with for which the Inmarsat convention has entered COMSAT that restricts the ability of such users section 503. ‘‘(4) On the effective date of a Commission into force. or providers to modify the existing contracts or ‘‘(5) COMMISSION.—The term ‘Commission’ order determining under section 601(b)(2) that enter into new contracts with any other space means the Federal Communications Commission. Inmarsat privatization is consistent with criteria segment provider (including but not limited to ‘‘(6) INTERNATIONAL TELECOMMUNICATION in sections 621 and 624: Section 504(b). any term or volume commitments or early termi- UNION.—The term ‘International Telecommuni- ‘‘(5) On the effective date of a Commission nation charges) or places such users or provid- cation Union’ means the intergovernmental or- order determining under section 601(b)(2) that ers at a disadvantage in comparison to other ganization that is a specialized agency of the INTELSAT privatization is consistent with cri- users or providers that entered into contracts United Nations in which member countries co- teria in sections 621 and 622: Paragraphs (2) and with COMSAT or other space segment providers operate for the development of telecommuni- (4) of section 201(a); section 201(c)(2); subsection shall be null, void, and unenforceable. cations, including adoption of international reg- (a) of section 403; and section 404. ‘‘SEC. 643. SIGNATORY ROLE. ulations governing terrestrial and space uses of ‘‘(a) LIMITATIONS ON SIGNATORIES.— ‘‘SEC. 647. REPORTS TO THE CONGRESS. the frequency spectrum as well as use of the ‘‘(1) NATIONAL SECURITY LIMITATIONS.—The ‘‘(a) ANNUAL REPORTS.—The President and geostationary satellite orbit. Federal Communications Commission, after a the Commission shall report to the Congress ‘‘(7) SUCCESSOR ENTITY.—The term ‘successor public interest determination, in consultation within 90 calendar days of the enactment of this entity’— with the Executive Branch, may restrict foreign title, and not less than annually thereafter, on ‘‘(A) means any privatized entity created from ownership of a United States signatory if the the progress made to achieve the objectives and the privatization of INTELSAT or Inmarsat or Commission determines that not to do so would carry out the purposes and provisions of this from the assets of INTELSAT or Inmarsat; but constitute a threat to national security. title. Such reports shall be made available imme- ‘‘(B) does not include any entity that is a sep- ‘‘(2) NO SIGNATORIES REQUIRED.—The United diately to the public. arated entity. States Government shall not require signatories ‘‘(b) CONTENTS OF REPORTS.—The reports sub- ‘‘(8) SEPARATED ENTITY.—The term ‘separated to represent the United States in INTELSAT or mitted pursuant to subsection (a) shall include entity’ means a privatized entity to whom a por- Inmarsat or in any successor entities after a the following: tion of the assets owned by INTELSAT or pro-competitive privatization is achieved con- ‘‘(1) Progress with respect to each objective Inmarsat are transferred prior to full privatiza- sistent with sections 621, 622 and 624. since the most recent preceding report. tion of INTELSAT or Inmarsat, including in ‘‘(2) Views of the Parties with respect to pri- ‘‘(b) CLARIFICATION OF PRIVILEGES AND IMMU- particular the entity whose structure was under vatization. NITIES OF COMSAT.— discussion by INTELSAT as of March 25, 1998, ‘‘(3) Views of industry and consumers on pri- ‘‘(1) GENERALLY NOT IMMUNIZED.—Notwith- but excluding ICO. vatization. standing any other law or executive agreement, ‘‘(9) ORBITAL LOCATION.—The term ‘orbital lo- COMSAT shall not be entitled to any privileges ‘‘SEC. 648. CONSULTATION WITH CONGRESS. cation’ means the location for placement of a or immunities under the laws of the United ‘‘The President’s designees and the Commis- satellite on the geostationary orbital arc as de- States or any State on the basis of its status as sion shall consult with the Committee on Com- fined in the International Telecommunication a signatory of INTELSAT or Inmarsat. merce of the House of Representatives and the Union Radio Regulations. ‘‘(2) LIMITED IMMUNITY.—COMSAT and any Committee on Commerce, Science, and Transpor- ‘‘(10) SPACE SEGMENT.—The term ‘space seg- other company functioning as United States sig- tation of the Senate prior to each meeting of the ment’ means the satellites, and the tracking, te- natory to INTELSAT or Inmarsat shall not be INTELSAT or Inmarsat Assembly of Parties, the lemetry, command, control, monitoring and re- liable for action taken by it in carrying out the INTELSAT Board of Governors, the Inmarsat lated facilities and equipment used to support specific, written instruction of the United States Council, or appropriate working group meetings. the operation of satellites owned or leased by issued in connection with its relationships and ‘‘SEC. 649. SATELLITE AUCTIONS. INTELSAT, Inmarsat, or a separated entity or activities with foreign governments, inter- ‘‘Notwithstanding any other provision of law, successor entity. national entities, and the intergovernmental the Commission shall not have the authority to ‘‘(11) NON-CORE.—The term ‘non-core services’ satellite organizations. assign by competitive bidding orbital locations means, with respect to INTELSAT provision, ‘‘(3) PROVISIONS PROSPECTIVE.—Paragraph (1) or spectrum used for the provision of inter- services other than public-switched network shall not apply with respect to liability for any national or global satellite communications serv- voice telephony and occasional-use television, action taken by COMSAT before the date of en- ices. The President shall oppose in the Inter- and with respect to Inmarsat provision, services actment of the Communications Satellite Com- national Telecommunication Union and in other other than global maritime distress and safety petition and Privatization Act of 1998. bilateral and multilateral fora any assignment services or other existing maritime or aeronauti- ‘‘(c) PARITY OF TREATMENT.—Notwithstand- by competitive bidding of orbital locations or cal services for which there are not alternative ing any other law or executive agreement, the spectrum used for the provision of such services. providers. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2839 ‘‘(12) ADDITIONAL SERVICES.—The term ‘addi- The Chairman of the Committee of I support playing by the rules and I tional services’ means Internet services, high- the Whole may postpone a demand for believe this bill is consistent with our speed data, interactive services, non-maritime or a recorded vote on any amendment and obligations. But nothing in the WTO non-aeronautical mobile services, Direct to may reduce to a minimum of 5 minutes agreement says we cannot protect com- Home (DTH) or Direct Broadcast Satellite (DBS) video services, or Ka-band services. the time for voting on any postponed petition in our market. We are per- ‘‘(13) INTELSAT AGREEMENT.—The term question that immediately follows an- mitted to do so under the WTO services ‘INTELSAT Agreement’ means the Agreement other vote, provided that the time for agreement. If necessary, we will vigor- Relating to the International Telecommuni- the voting on the first question shall ously fight for our beliefs and rights cations Satellite Organization (‘INTELSAT’), be a minimum of 15 minutes. within the WTO and protect the integ- including all its annexes (TIAS 7532, 23 UST Are there any amendments to the rity of U.S. competition policy. 3813). bill? So my bill uses an entry test of not ‘‘(14) HEADQUARTERS AGREEMENT.—The term Mr. DAN SCHAEFER of Colorado. causing competitive harm. As long as ‘Headquarters Agreement’ means the Inter- national Telecommunication Satellite Organiza- Mr. Chairman, I move to strike the last the IGO’s privatized entities meet the tion Headquarters Agreement (November 24, word. criteria and will not cause competitive 1976) (TIAS 8542, 28 UST 2248). Mr. Chairman, the purpose, of course, harm, and their entry is otherwise in ‘‘(15) OPERATING AGREEMENT.—The term ‘Op- would be to engage the chairman of the the public interest, the FCC may au- erating Agreement’ means— full committee, my good friend from thorize their use. A competition entry ‘‘(A) in the case of INTELSAT, the agreement, Richmond, Virginia, in a colloquy. test in the public interest is consistent including its annex but excluding all titles of ar- I would like to personally thank the with our WTO obligations. ticles, opened for signature at Washington on gentleman from Virginia (Mr. BLILEY) Mr. DAN SCHAEFER of Colorado. August 20, 1971, by Governments or tele- communications entities designated by Govern- for his work in moving this very impor- Reclaiming my time, Mr. Chairman, I ments in accordance with the provisions of the tant bill forward and his leadership on appreciate the gentleman’s remarks. Agreement, and this issue over the past number of As the gentleman knows, I am very in- ‘‘(B) in the case of Inmarsat, the Operating years. terested in seeing that the commission, Agreement on the International Maritime Sat- We can all agree that government when making its determination wheth- ellite Organization, including its annexes. should not be providing commercial er to license or authorize the use of ‘‘(16) INMARSAT CONVENTION.—The term services, especially in advanced tele- privatized entities, act in a manner ‘Inmarsat Convention’ means the Convention on communications. We can likewise the International Maritime Satellite Organiza- consistent with U.S. obligations under tion (Inmarsat) (TIAS 9605, 31 UST 1). agree that the intergovernmental sat- the WTO agreement on basic tele- ‘‘(17) NATIONAL CORPORATION.—The term ‘na- ellite organizations should be communications. tional corporation’ means a corporation the privatized in a manner that creates a Now, I would ask the gentleman one ownership of which is held through publicly level field for all competitors. final question. Is this legislation in- traded securities, and that is incorporated Now, given that all these organiza- tended to ensure that the FCC not only under, and subject to, the laws of a national, tions are intergovernmental organiza- take notice but, as much as prac- state, or territorial government. tions, the United States must inevi- ticable, act in a manner consistent ‘‘(18) COMSAT.—The term ‘COMSAT’ means tably engage with our global partners the corporation established pursuant to title III with the WTO agreement on basic tele- of the Communications Satellite Act of 1962 (47 as we move forward to privatization. communication services? U.S.C. 731 et seq.) We operate in a global interconnected Mr. BLILEY. If the gentleman will ‘‘(19) ICO.—The term ‘ICO’ means the com- world today, with a complex web of continue to yield, we intend by this pany known, as of the date of enactment of this economic undertakings binding us to legislation that the FCC will imple- title, as ICO Global Communications, Inc. countries around the world. We all ment this satellite reform legislation ‘‘(20) REPLACEMENT SATELLITES.—The term know that. in a manner consistent with our obliga- ‘replacement satellite’ means a satellite that re- For instance, the United States and tions under the WTO basic tele- places a satellite that fails prior to the end of the duration of contracts for services provided approximately 100 other countries that communications agreement. over such satellite and that takes the place of a participate in INTELSAT and Inmarsat However, the bill does not mandate satellite designated for the provision of public- are members of the World Trade Orga- that, because foreign parties may differ switched network and occasional-use television nization, the WTO. We, therefore, have with the FCC’s reading of the public in- services under contracts executed prior to March obligations to these countries, as they terest or whether the future structure 25, 1998 (but not including K–TV or similar sat- do to us, pursuant to agreements in the of an IGO spin-off or successor entity ellites). A satellite is only considered a replace- WTO. With respect to satellite serv- will harm competition in this market. ment satellite to the extent such contracts are ices, we have an obligation to our WTO If it did mandate that the FCC act con- equal to or less than the design life of the sat- ellite. partners under the Fourth Protocol of sistently with our WTO obligations, ‘‘(21) GMDSS.—The term ‘global maritime dis- the General Agreement on Trade and then that privatized entity or, more tress and safety services’ or ‘GMDSS’ means the Services, which governs basic tele- precisely its government, could go off automated ship-to-shore distress alerting system communications services. to Geneva and petition the WTO for a which uses satellite and advanced terrestrial Now, I would like to ask the chair- panel against the United States due to systems for international distress communica- man, is the bill intended to be consist- the FCC finding. tions and promoting maritime safety in general. ent with U.S. obligations under WTO While I support the principles of the The GMDSS permits the worldwide alerting of on the provisions of the basic tele- WTO and believe the U.S. should live vessels, coordinated search and rescue oper- ations, and dissemination of maritime safety in- communications services? up to its obligations, I do not wish to formation. Mr. BLILEY. Mr. Chairman, will the invite WTO panels. I do not want our ‘‘(b) COMMON TERMINOLOGY.—Except as oth- gentleman yield? bill to become an avenue for a recover- erwise provided in subsection (a), terms used in Mr. DAN SCHAEFER of Colorado. I ing monopolist, to use a phrase of my this title that are defined in section 3 of the yield to the gentleman from Virginia. cosponsor, to slow down reform by Communications Act of 1934 have the meanings Mr. BLILEY. The gentleman is cor- causing trouble for the United States provided in such section.’’. rect. My bill is intended to be consist- in Geneva. Rather, the bill relies on a The CHAIRMAN. No amendment to ent with the WTO. perfectly acceptable ‘‘measure,’’ to use the committee amendment is in order As the gentleman may know, I was a WTO parlance, a competition test, as unless printed in the CONGRESSIONAL strong supporter of the WTO basic tele- the entry standard that should guide RECORD. Those amendments shall be communications agreement, which will the FCC in making decisions on the considered read. open the world’s markets to other tele- section 601. During consideration of the bill for communications companies. For the Mr. Chairman, I thank the gentleman amendment, the Chair may accord pri- price of improved access to the global for addressing this important issue. ority in recognition to a Member offer- market for our telecom companies, the Mr. DAN SCHAEFER of Colorado. ing an amendment that he has printed U.S. Government has to permit foreign Mr. Chairman, I thank the chairman of in the designated place in the CONGRES- investment in this market. Given the the full committee. SIONAL RECORD. Those amendments competitiveness of our telecom compa- Mr. DINGELL. Mr. Chairman, I move will be considered read. nies, that is a good bargain. to strike the last word. H2840 CONGRESSIONAL RECORD — HOUSE May 6, 1998 I simply want to commend the gen- My amendment addresses a fun- pensation not just when it physically tleman from Colorado for what it is he damental problem with H.R. 1872. As seizes real or personal property, but has done. This treaty violates the reported by the Committee on Com- also, as Justice Holmes said in 1922, ‘If INTELSAT agreement and the basic merce, the bill contains service restric- regulation goes too far, it will be rec- telecom agreement of the World Trade tions which, when implemented, will ognized as a taking.’ ’’ Organization. constitute an unconstitutional taking I also want to point out the Washing- It also would have the practical ef- of COMSAT’s property, and so my ton Legal Foundation that the chair- fect of insisting on specific results and amendment just very simply cures that man of the committee admires so, and would impose sanctions on INTELSAT problem. many of us do, agrees that these provi- in violation of that treaty if those re- I know that the gentleman from Vir- sions are an unconstitutional taking of sults are not achieved. The sanctions ginia, my good friend and chairman of COMSAT’s property. In an analysis would violate that treaty further by the committee, contends these restric- prepared at my request, WLF has con- expelling INTELSAT from the U.S. tions do not constitute a taking, but I cluded that H.R. 1872 would indeed ef- market in violation of that treaty must respectfully disagree. Quite fect a compensable taking of private agreement. frankly, if it does not constitute a tak- property belonging to COMSAT, as well In addition to that, it would violate ing, then this amendment is com- as a material breach of the terms of the Inmarsat agreement by preventing pletely in order. Why not put it into the compact between the United States COMSAT and Inmarsat from providing the bill? and COMSAT. certain specifically required, economi- Mr. Chairman, the United States in- Mr. Chairman, I include the following cally viable service to U.S. consumers. duced private investors to fund COM- for the RECORD: It also punishes COMSAT in the event SAT by offering the company an oppor- WASHINGTON LEGAL FOUNDATION, foreign participants do not meet the tunity to earn a profit by helping to 2009 MASSACHUSETTS AVENUE, N.W., privatization criteria and time sched- serve the communications needs of the Washington, DC, April 29, 1998. Hon. CONSTANCE A. MORELLA, ule, something which is, again, in vio- United States and other countries. U.S. House of Representatives, 2228 Rayburn lation of that treaty. That is a quote. House Office Bldg., Washington, DC. Now, in addition to that, COMSAT The United States also instructed Re H.R. 1872—The Communications Satellite would be barred from providing many COMSAT to sign the INTELSAT and Competition and Privatization Act of services to American and foreign par- Inmarsat operating agreements, which 1998 ticipants under the treaties requiring are binding on the parties. COMSAT’s DEAR REPRESENTATIVE MORELLA: In re- those actions, to which this Nation is a investments were made in reliance on sponse to your written request for counsel, signatory. It also imposes require- existing law. the Washington Legal Foundation (WLF) has The United States cannot take undertaken a legal analysis of H.R. 1872, ments for spin-offs which do not, I be- ‘‘The Communications Satellite Competition lieve, comply with the requirements of COMSAT’s property by deliberately de- and Privatization Act of 1998.’’ In particular, the treaty. stroying its value without paying com- we have considered whether H.R. 1872 in its It also violates the WTO basic pensation. This is particularly true present form would constitute a ‘‘taking’’ by telecom agreements’ open market re- where, as here, the investments were the federal government (subject to just com- quirements because, in point of fact, it compelled by Federal law. And in ac- pensation under the Fifth Amendment to the tends to close rather than to open mar- cordance with that law and with gov- United States Constitution) or a breach of kets and reduce rather than increase ernment approval, COMSAT has ac- compact between the United States and COMSAT Corporation. competition. It would, in fact, imperil quired an investment interest in sat- After careful consideration of H.R. 1872, the entire future of the WTO agree- ellites, orbital positions and spectrum, WLF has concluded that H.R. 1872 would in- ment entered into with 68 other coun- as well as other costs associated with deed effect a compensable taking of private tries. the establishment, operation, and property belonging to COMSAT, as well as a The comments of the gentleman from maintenance of a global satellite sys- material breach of the terms of the compact Colorado were appropriate and should tem. between the United States and COMSAT. WLF’s conclusion should not be construed as be considered as my colleagues prepare b 1215 to vote against this outrageous bill. endorsement or opposition to H.R. 1872. WLF And yet this Federal law statute is a nonprofit group organized under 26 AMENDMENT NO. 6 OFFERED BY MRS. MORELLA would prohibit COMSAT from using or U.S.C. § 501(c)(3) and does not engage in any Mrs. MORELLA. Mr. Chairman, I earning a return on those investments. lobbying activity. offer an amendment. Background. The current wave of tele- Putting a company in such a position The CHAIRMAN. The Clerk will des- communications reform comes from a shift would be a compensable taking, and ignate the amendment. in how the economics of communications the liability for this taking is massive. The text of the amendment is as fol- networks are generally understood. Whereas COMSAT has invested billions of dol- it was once assumed that these networks lows: lars in its space-based assets and mil- were natural monopolies, experts in the field Amendment No. 6 offered by Mrs. Morella: lions more on the ground. Unless my now believe that these facilities can be pro- Page 6, after line 8, insert the following amendment is adopted, the U.S. Treas- vided (and are best provided) by multiple new subsection: ury and, ultimately, the taxpayers will competitors. Nowhere is this shift more clear ‘‘(e) TAKINGS PROHIBITED.—In implement- than in satellite communications. In the ing the provisions of this section, and sec- have to foot the bill. 1960s and 1970s, it was universally believed tions 621, 622, and 624 of this Act, the Com- These are not opinions that I cooked that the establishing and maintaining a net- mission shall not restrict the activities of up myself. They are shared by many, work of satellites was so complicated and ex- COMSAT in a manner which would create including some of our colleagues on the pensive that only a global consortium could the liability for the United States under the Committee on Commerce. They are do it. Thus, the United States spearheaded Fifth Amendment to the Constitution. also shared by Nancie Marzulla. She is the formation of two treaty-based inter- Page 11, after line 11, insert the following the president of Defenders of Property national satellite organizations (ISOs), new subsection: Rights. In a recent column in the INTELSAT and Inmarsat, to carry out this ‘‘(d) TAKINGS PROHIBITED.—In implement- mission. ing the provisions of this section, the Com- Washington Times, Ms. Marzulla ad- Since that time, private companies such as mission shall not restrict the activities of dressed the takings aspect of H.R. 1872. PanAmSat, Loral, Motorola, and Teledesic COMSAT in a manner which would create a She said, ‘‘Some in Congress and else- have launched (or made plans to launch) liability for the United States under the where seem to have forgotten the Con- their own satellite networks. The success of Fifth Amendment to the Constitution. stitution’s fifth amendment prohibi- these companies has demonstrated that gov- Mrs. MORELLA. Mr. Chairman, I had tion against uncompensated takings.’’ ernment involvement is no longer needed to submitted two amendments for H.R. She notes correctly that ‘‘The Govern- ensure the provision of satellite services. Ac- 1872, and so I want to clarify for my ment would have to compensate COM- cordingly, the United States has begun the delicate process of negotiating with other colleagues that I am only offering one SAT for taking the company’s property countries—most of whom do not fully share of those amendments, the one that in violation of the fifth amendment’s the U.S.’s faith in the marketplace—to pri- deals only with the question of takings guarantee against uncompensated vatize the ISOs. These efforts have already under the fifth amendment. takings. The U.S. is liable for just com- borne fruit; INTELSAT has agreed to spin off May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2841 six of its satellites to a private company, and their lives. Moreover, H.R. 1872 declares that ices with ever-more-obsolete technologies. Inmarsat has agreed to privatize all but its if ‘‘substantial and material progress’’ is not Moreover, H.R. 1872 appears to interfere with public-safety services. made, year by year, toward meeting the COMSAT’s investment-backed expectations. Several members of Congress, believing bill’s conditions, COMSAT will be barred If COMSAT had not legitimately expected that privatization cannot be achieved unless from providing high-speed data, Internet, that it would be allowed to pursue a profit mandated by the U.S., have introduced legis- and land mobile service—even though it re- on its INTELSAT and Inmarsat investments, lation intended to force the ISOs to pri- lies on such services now for significant por- it would have been irrational for COMSAT to vatize. H.R. 1872 would close the U.S. market tions of its revenue. In addition, COMSAT have made them, and for its shareholders to to INTELSAT and Inmarsat, their privatized would be frozen in time while the rest of the have contributed capital to the company. spin-offs and successors, and all U.S. entities marketplace moved forward; it could not Nor does H.R. 1872 merely ‘‘adjust the ben- that use their facilities, unless the ISOs provide additional services, or additional ap- efits and burdens of economic life to promote meet the bill’s rigid criteria, and do so by plications of existing services. the common good,’’ with only an incidental dates certain. H.R. 1872 has been criticized If privatization is not achieved in exactly effect on COMSAT. Connolly v. Pension Ben- by some for hamstringing the government’s the time and manner specified, the bill efit Guaranty Corp., 475 U.S. 211, 225 (1986). It ability to negotiate with other countries, would limit COMSAT to the provision of so- is true that COMSAT’s actions have always and for adopting—allegedly for the purpose called ‘‘core’’ services, defined as force been subject to regulation, cf. id. at 226–227. of enhancing competition—a protectionist telphony and occasional use services for But H.R. 1872 goes well beyond the ordinary strategy that benefits certain U.S. satellite INTELSAT, and emergency services (now regulatory adjustment that such an actor companies by excluding their most likely provided at no charge) for Inmarsat. But the must expect. It rejects the most basic international rivals from the market. What refuge of these ‘‘core’’ services may well be premise of COMSAT’s existence: that a glob- has received less attention is that H.R. 1872 illusory, because changes in technology are al ‘‘commercial communications satellite would effect the largest confiscation of pri- causing these markets to disappear. Voice system,’’ built ‘‘in conjunction and coopera- vate property in recent times, exposing the traffic, for example, is migrating rapidly tion with other countries,’’ will best ‘‘serve U.S. to billions of dollars in claims for com- from satellites to fiber-optic cables, and a the communications needs of the United pensation. voice-only provider likely would see its mar- States and other countries.’’ 47 U.S.C. The problem is this: The United States ac- ket slip away in a world of converging voice § 701(a). In light of this language, the backers tually does not hold any investment in the and data services. of H.R. 1872 cannot reasonably maintain that ISOs. Private investors have committed Moreover, H.R. 1872 imposes further sanc- COMSAT should have expected that the U.S. massive amounts of capital to fund the ISOs, tions that could cripple COMSAT whether or would seek to exclude INTELSAT and and they have done so at the behest of the not the ISOs privatize. Most significantly, the Inmarsat from the market altogether. See U.S. government, in furtherance of declared bill would give every one of COMSAT’s cus- Ruckleshaus v. Monsanto Co., 467 U.S. 986, national policy. When Congress passed the tomers the unilateral right to abrogate its 1010–11 (1984) (where company submits trade Communications Satellite Act of 1962, 47 contracts with the company. Such sweeping secrets to EPA upon statutory assurance U.S.C. §§ 701 et seq., it determined that Congressional abrogation of the private con- that EPA will not disclose them, later ‘‘United States participation in the global tract rights of a single company—without amendment of statute to permit disclosure system shall be in the form of a private cor- any judicial determination of wrongdoing— works a taking); United Nuclear Corp. v. poration, subject to appropriate regulation.’’ may be unprecedented in U.S. history . United States, 912 F.2d 1432 (Fed. Cir. 1990) 47 U.S.C. § 701(c). Congress therefore author- Constitutional Analysis. WLF has con- (where mining company invested $5 million ized the creation of a new company, COM- cluded that, if adopted, H.R. 1872 would ef- to explore for uranium on tribal lands in re- SAT, to be the sole operating entity in fect a substantial compensable taking of pri- liance on Interior Department approval, INTELSAT. In 1978, Congress also made vate property. The bill would impair company could not be expected to foresee In- COMSAT the sole U.S. participant in COMSAT’s substantial investments in and terior’s decision six years later to allow tribe Inmarsat. for INTELSAT and Inmarsat, thus imposing to cancel the land claims, and decision By statute, COMSAT is a ‘‘corporation for on COMSAT’s shareholders virtually the en- worked a compensable taking). profit’’ and not ‘‘an agency or establishment tire cost of a congressional policy change. Finally, H.R. 1872 does not ‘‘substantially of the United States government.’’ 47 U.S.C. The Takings Clause of the Fifth Amendment advance’’ its stated regulatory goal: securing § 731. It has never been funded or otherwise is ‘‘designed to bar Government from forcing the privatization of INTELSAT and subsidized by the United States. Rather, some people alone to bear public burdens Inmarsat. See Lucas, 505 U.S. at 1016. To the Congress authorized and expected COMSAT which, in all fairness and justice, should be contrary, by setting the bar as high as it to raise capital by selling shares of voting borne by the public as a whole.’’ Armstrong does, the bill guarantees that privatization capital stock ‘‘in a manner to encourage the v. United States, 364 U.S. 40, 49 (1960). Con- will fail and that COMSAT will be expelled widest possible distribution to the American gress may not induce a company to invest its from the U.S. market. Congress may legiti- public,’’ 47 U.S.C. § 634(a), and by selling its private capital, and then turn around and de- mately decide that it no longer wants COM- securities to private investors. See 47 U.S.C. clare that policy changes have made the in- SAT to serve its historic role. But if it does §§ 721(c)(8), 734(c). COMSAT’s stock trades on vestment unnecessary, without compensat- so, it is required by the Fifth Amendment to the New York Stock Exchange, and its cur- ing that company for the assets dedicated to compensate COMSAT’s shareholders for the rent market capitalization is over $2 billion. public use. capital they have put in public service at the The INTELSAT and Inmarsat Operating WLF has concluded that if H.R. 1872 passes, government’s request. Agreements (which COMSAT was directed by COMSAT may have legitimate claims for Please let us know if you seek further legal the U.S. government to sign) obligate COM- compensation for its taken investments. counsel from WLF on this issue. SAT to meet periodic capital calls. At the Government’s regulation of the uses to Sincerely, end of 1997, COMSAT owned roughly 18% of which private property may be put can DANIEL J. POPEO, INTELSAT, with a carrying value of ap- ‘‘take’’ that property, just as if the govern- General Counsel. proximately $402 million, and roughly 23% of ment had seized the property. See Lucas v. [From the Washington Times, Apr. 27, 1998] Inmarsat, with a carrying value of approxi- South Carolina Coastal Council, 505 U.S. mately $223 million. COMSAT is pledged to 1003, 1017–18 (1992); Webb’s Fabulous Phar- DEREGULATION OR PLAIN OLD THEFT? invest another $332 million in INTELSAT. In macies, Inc. v. Beckwith, 449 U.S. 155, 163–64 (By Nancie G. Marzulla) addition, it has invested hundreds of millions (1980). The Supreme Court has articulated More than 30 years ago, hundreds of Ameri- in shareholder capital outside the ISOs in three factors that determine whether usage cans invested in an idea: that communica- order to provide INTELSAT and Inmarsat regulation goes so far as to constitute a tak- tions satellites could benefit their nation services to the U.S. public. ing: ‘‘the economic impact of the regulation and the world. The result was COMSAT, a H.R. 1872 could substantially impair, or on the claimant,’’ the ‘‘extent to which the Maryland-based shareholder-owned company perhaps destroy, that investment. The bill regulation has interfered with distance in- that successfully launched the United States sets conditions for privatization that the vestment-backed expectations,’’ and ‘‘the to the apex of the satellite industry. State Department concedes are too onerous character of the governmental action.’’ Penn Today, however, if a bill now being consid- for other countries to accept. The entity Central Transp. Co. v. City of New York, 438 ered in Congress passes, these investments that INTELSAT recently agreed to privatize U.S. 104, 124 (1978). will be in jeopardy. Some in Congress and would not qualify, nor would the privatized H.R. 1872 bears all the indicia of a regula- elsewhere seem to have forgotten the Con- Inmarsat. Some have argued that the bar has tion that, in Justice Holmes’s words, goes stitution’s Fifth Amendment prohibition intentionally been set too high, at the re- ‘‘too far.’’ Pennsylvania Coal v. Mahon, 260 against uncompensated ‘‘takings.’’ In their quest of U.S. companies seeking protection U.S. 393, 415 (1922). Based on WLF’s under- quest for deregulation, they’ve proposed fed- for competition, so that the market-closing standing of the situation, the bill would have eral legislation that could end up costing the sanctions that accompany a failure to meet a devastating economic impact on COMSAT, U.S. Treasury hundreds of millions, if not the criteria will be triggered. immediately stranding hundreds of millions billions, of dollars to cover COMSAT’s During the transition to privatization, of dollars of investments made to provide takings claims. H.R. 1872 would effectively bar the ISOs from (and useful solely for providing) banned serv- In the process, these ‘‘takers’’ would be deploying satellites to new orbital locations ices, and ultimately relegating the company sending a clear message to current and fu- or replacing obsolete satellites at the end of to providing an ever-shrinking core of serv- ture investors: Risk your money, but don’t H2842 CONGRESSIONAL RECORD — HOUSE May 6, 1998 expect the government to play by the rules if competition legislation, but COMSAT and The phrase ‘‘red herring″ comes from your investment pays off. With that kind of its shareholders aren’t laughing about a bill the practice of dragging a smoked and, federal attitude, what sane investor would that would knock this competitor out of the thus, red herring across the path of a risk their hard-earned capital on today’s market in the name of competition. track of dogs trying to follow a scent. fledgling companies that take huge financial This bill would breach COMSAT’s implicit and technological risks at the request of the but enforceable regulatory compact with the The idea was to use the scent to dis- government, as COMSAT did in the 1960s. federal government. As the Supreme Court tract them from that prey. In the Communications Satellite Act of recently said when enforcing promises made In this case, the taking issue is being 1962, Congress commissioned COMSAT to by bank regulators to savings and loans in- used in an attempt to distract Mem- ‘‘establish in conjunction and in cooperation stitutions, Congress is free to change its bers from the real issue, which is that with other countries, as expeditiously and policies and, as a result, to break a pledge to without incentives that could cost the practicable, a commercial communications a private party. But if Congress does so, it intergovernmental satellite organiza- satellite system.’’ At the time, this task was must ‘‘insure the promise against loss aris- tions money, they will never privatize recognized to be a risky financial and tech- ing from the promised condition’s nonoccur- in a procompetitive manner. nological undertaking. Congress’s mandate rence.’’ led to the creation of the International Tele- The government also would have to com- The amendment is an attempt to tie communications Satellite Organization pensate COMSAT for taking the company’s down the FCC through litigation. Cur- (INTELSAT), an international consortium property in violation of the Fifth Amend- rently, if COMSAT has a takings claim, that now includes some 140-member coun- ment’s guarantee against uncompensated it can sue the FCC. Just like anyone tries. A similar international organization, takings. The U.S. is liable for just compensa- else, if there were a taking, they could the International Mobile Satellite Organiza- tion not just when it physically seizes real or go to court. Why do they want this tion, or ‘‘Inmarsat’’ was formed in 1978. personal property but also, as Justice amendment? To tie the bill in knots As the U.S. representative to INTELSAT Holmes said in 1922, ‘‘if regulation goes too and Inmarsat, COMSAT has been bound by through litigation, that is why. far it will be recognized as taking.’’ The amendment offered in committee those organizations’ operating agreements Clearly, it is going ‘‘too far’’ to require which (among other things) obligate COM- COMSAT and its investors to bear the bur- by the gentleman from Maryland (Mr. SAT to meet all of INTELSAT and den of a congressional decision to reverse WYNN), the colleague of the gentle- Inmarsat’s capital investment calls. More- course and exclude treaty organizations and woman, was offered which also sought over, COMSAT must seek FCC approval for their signatories from almost the entire field to cause fundamental problems for the every investment. of satellite communications. If Congress bill. The gentleman from Maryland In exchange for living within these con- were to order this, it would have to com- (Mr. WYNN) failed by a vote of 37-to-8. straints, COMSAT was afforded an oppor- pensate companies for investments they tunity to earn a reasonable return on its in- This one dresses the knife up in made at the government’s behest and ap- vestments. It also was given exclusive fran- takings clothing possibly in the hope proval—investments made specifically to so- chise in selling services using INTELSAT that many of my conservative col- lidify the U.S. as the satellite industry lead- AND Inmarsat satellites for communications er. leagues who care about takings will to and from the United States. Access has The provision that would invalidate exist- join the gentlewoman in attacking our never been a problem for customers: these ing contracts is even a more obvious and ag- carefully crafted legislation. services are energetically offered to all at gressive taking of private property. It is well I have to tell my colleagues that I do non-discriminatory rates. recognized that contract rights are property During the 1960s and 1970s, INTELSAT and not think the amendment of the gen- Inmarsat satellites were the only ‘‘birds’’ in rights, protected by the Constitution. Con- tlewoman from Maryland (Mrs. the sky American telephone companies and gress can no more abrogate existing con- MORELLA) is designed to fix the takings television networks needing satellite serv- tracts than it can take away tangible per- problem. It is designed to protect her ices had to purchase them from COMSAT. sonal property without just compensation. constituent COMSAT. And it does that Yet this bill would void current and future But since the early 1980s other companies well. It says that the FCC shall not re- have been allowed to launch competing com- agreements negotiated between COMSAT and other parties. strict the activities of COMSAT in a munications satellite systems. These sys- manner which would create liability tems have been extremely successful. Of course, deregulation must be pursued In addition to the growth of new, rival with vigor. At the same time, promises gov- for the U.S. under the fifth amend- service providers, new technologies also have ernments made to private companies, and on ment, which would mean COMSAT created more competition for satellites. For which investors based their investment, could go to the courts as soon as the example, higher capacity fiber-optic under- must be kept. Deregulation cannot be an ex- FCC issued a decision and tie the bill sea cable has become the favored mode of cuse for the uncompensated confiscation of up for years. COMSAT’s whole strategy private property. transmitting phone calls internationally. is to delay reform. This would play Today, 117 countries are directly connected Mr. Chairman, the service restric- right into their hands. to the United States by fiber-optic cable. tions of H.R. 1872 are not only uncon- What the amendment does not take As a result of these technological and mar- stitutional, they are anticompetitive ketplace development, COMSAT now has into account is that we already have a only 21 percent of the market for inter- and they are anticonsumer. They will Constitution with the fifth amendment national voice communications and about 42 remove a competitor from the market- that protects against takings. There is percent of the market for international video place, and therefore, they will then also a remedy. Under current law, if transmission. deny consumers, including the U.S. they think there is a taking, they can There are still those who inexplicably view Government, an alternative service sue, but under the same laws applicable COMSAT, a relatively small player in the provider. COMSAT’s competitors will to any other company. communications marketplace, as a monop- have succeeded in ejecting a major Once again, the intergovernmental oly despite the fact that numerous suppliers player from the communications mar- serve the market today. Believers in the satellite organizations and the U.S. af- ‘‘monopoly power’’ of COMSAT have intro- ketplace. They are the only bene- filiate, COMSAT, want to continue the duced a bill in Congress that would, among ficiaries of these provisions. special advantages they have always other things: So, Mr. Chairman, we also put sat- had. Authorize customers to abrogate their ex- ellite reform, but we must proceed in a Now, I thought I would take a mo- isting contracts with COMSAT; way that is fair to the customers, fair ment to address the takings issue Require the immediate surrender of allo- to COMSAT, and above all else consist- itself. The committee has thoroughly cated orbital slots (essentially a parking ent with the Constitution. We must analyzed that there are no takings. place for a satellite in outer space) not in ac- tual commercial use, despite the millions of avoid enacting a law that is found to be CRS has looked at the issue. They dollars COMSAT, INTELSAT, and Inmarsat unconstitutional and that exposes the found that ‘‘a review of the bill’s text have invested in satellites intended for those Treasury to a multibillion-dollar li- reviews no provisions likely to cause slots; ability for damages. constitutional takings.’’ The commit- Terminate existing services that COMSAT Mr. Chairman, I ask my colleagues to tee’s analysis, which quotes at length is providing to customers, as well as restrict- support this amendment. from the CRS, is available in the com- ing the company’s participation in new serv- Mr. BLILEY. Mr. Chairman, I rise in mittee report. ices (such as Internet access, high-speed data opposition to the amendment of my I would now like to read a letter and interactive services) thus depriving Americans of advanced computer and video good friend, the gentlewoman from dated May 5 from the Washington technologies. Maryland (Mrs. MORELLA). Legal Foundation to me. Maybe some in Congress believe that this Before I begin, let me share with my Dear Chairman Bliley, this is in response is the definition of progressive, fair and pro- colleagues an interesting bit of history. to your letter requesting a clarification of May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2843 WLF’s views regarding the Communications COMSAT is urging and helping move which investors based their invest- Satellite Competition and Privatization Act toward privatization, but they cannot ment, must be kept. Deregulation can- in light of concerns that WLF’s views had control the pace of privatization. None- not be an excuse for the uncompen- been mischaracterized. I want to make it very clear that the theless, they would be subject to unfair sated confiscation of private property.’’ Washington Legal foundation does not in the restrictions if our imposed milestones And that is what we are debating here any way oppose your bill or in any manner are not met. And I do not believe that today. support amendments to your bill. WLF does this is fair. I urge my colleagues to support and not engage or partner in any lobbying activ- I know we have constitutional schol- adopt the Morella amendment. I be- ity whatsoever. In fact, some members of the ars in this body, and I call upon them lieve that this is a proper move and an WLF’s own advisory boards disagree with the today. This is an unconstitutional tak- appropriate step to making this bill WLF’s legal analysis of the takings clause in something that we can support. connection with this legislation. ing. COMSAT is a private, investor- owned company. COMSAT’s contract Mr. WELDON of Florida. Mr. Chair- Unfortunately, when we sent our analysis man, I move to strike the requisite to Members who requested it, we did not an- rights are property; and under the fifth ticipate that it would be used as the basis for amendment of the Constitution, the number of words. Mr. Chairman, I too oppose the any legislative tactics or strategy which government simply cannot take this amendment offered by the gentle- would oppose your satellite reform bill. We property, which is what this legislation woman from Maryland (Mrs. MORELLA). take no legislative position whatsoever. We does, without paying for it; and I fully The Morella amendment is premised on are grateful for your leadership on free en- expect that COMSAT will be filing terprise issues and appreciate the oppor- the notion that H.R. 1872, as reported tunity to clarify this matter for you. Sin- claims on this issue. out of the committee, would work a Should this occur, the money the cerely, Daniel J. Popeo, General Counsel. taking of COMSAT’s property. This Mrs. MORELLA. Mr. Chairman, will U.S. taxpayers will have to pay as a re- proposition seems to me to be entirely the gentleman yield? sult of litigation will far exceed any- unfounded. Mr. BLILEY. I yield to the gentle- thing we are contemplating now in the To begin with, I am at a loss to see woman from Maryland. context of our tobacco concerns. The any property that would be impacted Mrs. MORELLA. Mr. Chairman, if in amendment being offered by my col- by the bill. The term ‘‘property’’ has a fact there is no takings problem, then league today will significantly reduce particular legal meaning. It is not just what is wrong with the amendment? our liability and that of our constitu- a unilateral expectation, as the oppo- Mr. BLILEY. Reclaiming my time, ents by eliminating the takings provi- nents of this bill have suggested, but the gentlewoman must not have been sions for the bill’s restrictions on COM- rather an entitlement based upon a listening. They have the right under SAT. The amendment does the right mutually explicit understanding. the Constitution now by the fifth thing by allowing COMSAT to continue The fact that COMSAT or its share- amendment. What this does is it puts a to use its property, and I urge our holders may have made investments chill on the FCC. As soon as they do Members to support this amendment. with the expectation that COMSAT anything, they will can run into court Now, I applaud the purpose of the would continue to operate as the mo- and tie them up for years. That is what chairman with this legislation, and I nopoly provider of INTELSAT and the strategy of COMSAT is, delay, think the intent is laudable and he has Inmarsat’s services in the United delay, delay, hold their monopoly, get worked very hard. However, the under- States does not give them a property those 68 percent profits as long as they lying theory of this legislation is quite interest in those investments. Half the possibly can; and if we are forced to flawed. The sponsors of this bill would equation is missing. privatize, set it up in such a way that have us believe that COMSAT is a To constitute property protected by all we have done is change the name, huge, untenable monopoly. This is sim- the fifth amendment, COMSAT would but we still have the monopoly. ply not true. need to show that these expectations Mr. WYNN. Mr. Chairman, I move to In fact, there are more than 20 cur- were based upon a mutuality of under- strike the last word. rent competitors to COMSAT, with standing sufficiently well-grounded to Mr. Chairman, I would like to thank more than $14 billion in investments create an entitlement protected at law. my colleague, the gentlewoman from and $40 billion in stock value. If this is Of course, any such claim would collide Montgomery County, Maryland, (Mrs. not competition, I do not know what headlong with the reality that when MORELLA) for her leadership on this is. I do not think we can ask for much Congress established COMSAT in the issue. It is a very important issue to more. But let us consider further. 1962 Satellite Act, it expressly reserved one of our own companies, COMSAT. In 1998, COMSAT controlled 70 per- the right to modify COMSAT’s role in The question that is posed by this cent of the international voice traffic. the market at any time. amendment is simply this: deregula- Today they have only a 21 percent b 1230 tion or plain old theft? This the ques- share. Significantly, COMSAT’s mar- To the extent that COMSAT and its tion was posed by Nancie Marzulla, ket share has declined. In 1993, COM- shareholders made investments based president of the Defenders of Property SAT controlled 80 percent of the video on the provisions of the Satellite Act, Rights, in an op-ed piece in the April market; today it controls 42 percent. they did so presumably knowing of the 27, 1998, edition of the Washington Clearly, competition is emerging under risk that Congress might some day do Times. our present structure. We do not need so. It is absolutely baffling to me that In her piece they state clearly that this piece of legislation to promote COMSAT could think that Congress the sponsors in the quest for deregula- competition. created an entitlement, a property in- tion have proposed Federal legislation But finally and most telling, on April terest, by the terms of the Satellite that could end up costing American 28 of this year, the FCC declared that Act. In any event, even if COMSAT had citizens hundreds of millions, if not bil- COMSAT is nondominant in most of its identified a protected property interest lions, of dollars to cover COMSAT’s market, thus authoritatively eliminat- that would be impacted by H.R. 1872, takings claims. That is right, takings ing the argument that we have to get the legislation hardly would reach the claims. rid of COMSAT or punish COMSAT be- level of a regulatory taking, quote-un- As reported by the Committee on cause it is an egregious monopoly. quote, under the Supreme Court’s Commerce, this legislation contains re- Despite these facts, however, the cases. strictions that will limit the services sponsors of the legislation, so intent on The bill will without a doubt adjust that COMSAT can offer using its sat- privatizing this industry, would subject the benefits and burdens of economic ellite assets. The restrictions take ef- our constituents to potentially billions life, quote-unquote, and end one of the fect if rigid milestones are not met for of dollars in liability as a result of liti- last government protected monopolies privatization. The critical point, how- gation. in the telecommunications field. It ever, is that these milestones are not I think Ms. Marzulla put it best in would not, however, take any tangible milestones within the control of COM- her op-ed piece when she said, ‘‘Deregu- property or vitiate any specific right or SAT; they are milestones beyond their lation must be pursued with vigor. At assurance conferred by the govern- control, in fact, in the control of inter- the same time, promises governments ment. I therefore urge the Members to national organizations. made to private companies and on oppose this amendment. H2844 CONGRESSIONAL RECORD — HOUSE May 6, 1998 Mr. DINGELL. Mr. Chairman, I move the contract rights of COMSAT. money because Congress did something to strike the requisite number of COMSAT’s officers are, at the proper right, which is to take away the mo- words. responsibility and under the insistence nopoly powers that this bill in fact (Mr. DINGELL asked and was given of their shareholders, most assuredly takes away from COMSAT. This is not permission to revise and extend his re- going to file suit under the Tucker Act. a Fifth Amendment taking. marks.) I can offer my colleagues firm assur- Private actors can be disadvantaged Mr. DINGELL. Mr. Chairman, the ances that the judgment that will be in any number of ways by govern- amendment gets to the nub of the ques- awarded to COMSAT will be most gen- mental action. A private landowner tion. It says this, and I can understand erous and it will be done at the expense can discover that the value of her real why the opponents of the amendment of your constituents unless this body estate is reduced to zero because of the are so distressed about it, because it has the wisdom to adopt the amend- land being declared essential habitat. says, ment offered by the gentlewoman from That is an example of governmental ac- In implementing the provisions of this sec- Maryland. tion that ought to be considered a tak- tion, the Commission shall not restrict the It should be observed, this does not ing and the landowner in that case activities of COMSAT in a manner which do anything, the amendment, except to ought to be fairly compensated. But would create a liability for the United States here our private actor is not some in- under the Fifth Amendment to the Constitu- assure that there will be no liability tion. imposed on our constituents because of nocent landowner trying to recover What is wrong with that amendment? an unconstitutional taking by this from government regulation. This is a All it says is that the Commission has body. I urge my colleagues to keep that private company seeking to compel to respect the Constitution and cannot thought in mind. You have a respon- continued government protection for create a liability on the taxpayers be- sibility to pass legislation in this body the unique monopoly powers, the privi- cause we have engaged in an unconsti- which observes the Constitution, but leges and benefits that flow from those tutional taking or because we have vio- which also does not subject our tax- monopoly powers that it enjoys. This is lated the provisions of the Tucker Act. payers to a liability for wrongful acts an anticompetitive policy that is in I want my colleagues to listen to taken by this Congress. fact hostile to true property rights. In what the Washington Legal Founda- I would urge my colleagues to keep fact, current law unfairly restricts the tion said. By the way, the gentleman carefully in mind that the sums here ability of private companies to com- from Virginia (Mr. BLILEY) is a major are not piddling. They amount to bil- pete. Instead it guarantees to contributor to that agency and has lions of dollars. My question to my col- COMSAT’s investors monopoly-sized sent them a wonderful letter in which leagues, Mr. Chairman, is, do you want returns on their investments. he told them how he wanted to support the responsibility on your soul and on What property does COMSAT have the good work of that foundation. Here your conscience of having dissipated that it alleges is being taken? It sug- it is. This is what they had to say: this enormous sum of money and sub- gests that takings claims are raised by In response to your written request for jected your taxpayers to that kind of the ‘‘fresh look’’ provisions of this bill. counsel, the Washington Legal Foundation liability? That is the language that enables the has undertaken a legal analysis of H.R. 1872. Mr. COX of California. Mr. Chairman, FCC beginning in 2000 to permit users After the consideration of H.R. 1872, WLF I move to strike the requisite number or providers of telecommunications has concluded that H.R. 1872 would indeed ef- of words. services to renegotiate contracts they fect a compensable taking of private prop- Mr. Chairman, I think we have just signed with COMSAT prior to the re- erty belonging to COMSAT, as well as a ma- heard from the ranking member on the peal of its statutory monopoly as the terial breach of the terms of the compact be- tween the United States and COMSAT. Committee on Commerce that he is only U.S. company authorized to sell WLF’s conclusion should not be construed as prepared to accept as a norm for debate INTELSAT services. In other words, endorsement or opposition to H.R. 1872. and decision in the House in futuro the COMSAT wants to retain its monopoly They are giving you a clear warning. decisions of the Washington Legal powers and anything less would be con- The amendment says that the Commis- Foundation. I think that will actually sidered a taking. sion cannot subject your constituents help us a great deal here in our delib- The United States Supreme Court and mine to that kind of liability. I erations in the House. I think he is has repeatedly ruled that persons doing would want to observe something else. quite right, the Washington Legal business in a regulated marketplace What this bill does is to impair con- Foundation is a fine outfit. I will look should expect the legislative scheme to tract rights of COMSAT and to impair forward to holding the ranking member change from time to time, even in ways the value, the good will and the cor- to his new principle. that might be unfavorable to their in- porate assets of that corporation. But the Washington Legal Founda- terests. This principle was most re- The Supreme Court has been very tion, which he sings the praises of, has cently reiterated by the Supreme Court clear on this point. They have said that written us a letter subsequent to the in its unanimous 1993 decision in Con- the most significant factor in deter- one that he is describing that says, ‘‘I crete Pipe, which quoted from the mining whether economic regulation want to make it very clear, the Wash- Court’s 1958 decision in FHA v. The constitutes a taking is the extent to ington Legal Foundation does not in Darlington. Here is what the Court which, and I quote now from the Su- any way oppose this bill or in any man- said. ‘‘Those who do business in the preme Court, ‘‘the regulation has inter- ner support amendments to this bill.’’ regulated field cannot object if the leg- fered with the owner’s reasonable in- Specifically, the letter was written so islative scheme is buttressed by subse- vestment-backed expectations.’’ That that we would all know that they op- quent amendments to achieve the leg- is from the Penn Central case, Penn pose this amendment. That is the posi- islative end.’’ Central Transportation Company v. The tion of the Washington Legal Founda- Even if COMSAT were to pretend City of New York, 438 U.S. 104, 124, dated tion. that it is not a participant in a heavily 1978. Furthermore, the Congressional Re- regulated marketplace, and, that would They went on to say some other search Service has written us on the be a tough argument for COMSAT to things which I think are important. same point telling us that it is their make because they testified before They went on to say, ‘‘The simple legal analysis that the impacts de- Congress just last year that their com- words,’’ and I am now interpolating, scribed in the gentleman’s presentation pany is hamstrung by a burdensome the Supreme Court said ‘‘that Congress are not likely to support successful regulatory regime, Congress took spe- may at any time alter, amend and re- takings claims. That is the view of the cial care when it created COMSAT in peal this act * * * cannot be used to Congressional Research Service. 1962 to let investors know that there take away property already acquired So the question is not whether we are would be no guaranteed return on their ** * or to deprive’’ a private ‘‘corpora- going to expose taxpayers to spending investment. These days COMSAT gets tion of the fruits already reduced to huge amounts of money because Con- an 18 percent guaranteed rate of re- possession of contracts lawfully made.’’ gress did something wrong. This turn. These days INTELSAT gets im- We are here with considerable dili- amendment would expose taxpayers to munity from antitrust lawsuits. There gence in this legislation interfering in huge expenditures of their hard-earned is no doubt that H.R. 1872 will impair May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2845 COMSAT’s ability to obtain monopoly I think the approach has been back- They said there is no taking here, rents in the international satellite wards. But whether or not this legisla- and so we need to have no fear on that. marketplace, and that is the purpose of tion succeeds in its goal, one thing is The gentlewoman from Maryland offers the bill. clear, that your constituents will end an amendment which says there can be While the bill does end an obsolete up footing the bill. We could pass this no taking. Well, if they do not intend and outdated international monopoly, bill, it may fail to open up tele- to do a taking, if the amendment says it does not deprive COMSAT of the communication markets in foreign there is no taking, if in fact there is no right to compete in the new competi- lands, and still could end up spending taking, what is wrong with the amend- tive marketplace. Instead, COMSAT billions of dollars of your taxpayers’ ment? will be forced to compete. Nor will H.R. money. I would think those who say there is 1872 bar COMSAT from providing serv- b 1245 going to be no taking here would ac- ice to the same customers to whom it cept this amendment with vast enthu- We could end up with a very exten- presently provides service. But appar- sive status quo in telecommunications. siasm and would be speaking for it, not ently in COMSAT’s view, the company Many of the investment decisions against it. I am curious. What is it that should be compensated by U.S. tax- that COMSAT has made over the years they are trying to tell us; that there is payers if it is not guaranteed anything have been made at the urging of the a taking and so they do not want the less than the absolute right to sell its United States Government, and if we amendment, or that there is not a tak- services at inflated monopoly prices. look at comments made by Nancie ing so the amendment is not needed? I That is a bad idea. Therefore, this Marzulla, who is the President of De- do not know. amendment is a bad idea. I urge my fenders of Property Rights, she said But I do know one thing. If there is a colleagues to reject it. that Congress would have to com- possibility of the taking, we better Ms. ESHOO. Mr. Chairman, I move to pensate companies for investments doggone well see to it that we adopt strike the requisite number of words. they made at the government’s behest the amendment so that we do not im- Mr. Chairman, this amendment is and approval, investments made spe- pose upon our constituents $6 or $7 bil- searching for a problem that does not cifically to solidify the U.S. as the sat- lion of liability because of the unwise exist. The argument that takings is an ellite industry leader. action in this Chamber today. issue seems tenuous at best. The gen- Similarly, if we take a look at com- Mr. KLINK. Mr. Chairman, I thank tleman from California (Mr. COX) I ments made by the Washington Legal the gentleman from Michigan. think has done a superb job of rolling Foundation, if adopted, H.R. 1872 would Mr. TAUZIN. Mr. Chairman, will the out the case in detail on this issue be- effect a substantial compensable tak- gentleman yield? cause it defines contracts as property, ing of private property, and yet this Mr. KLINK. I yield to the gentleman which I think is a new twist. I have not legislation will take away COMSAT’s from Louisiana. heard of that one before. business, will force them to renegotiate Mr. TAUZIN. Let me first commend I would congratulate those that are contracts that do reduce the value of the gentleman on his statement. I can- offering the amendment and supporting their investments and really open up not think of a better metaphor than it for coming up with such a unique the United States Government to li- the one he gave us that we are literally take on this. But the argument that ability for damage for takings of COM- telling a U.S. company, ‘‘We’re going takings is defined as property I think SAT property. Those contracts are real to shoot you and your customers if is faulty. Furthermore, removing the property. these international organizations don’t FCC’s ability to apply service restric- Now I am reminded a little bit in this do what we want.’’ tions, or a fresh look, actually cuts out legislation of an old movie. I do not Do my colleagues know that in the the heart of the bill. These provisions know how many of us in here remem- bill is a provision that says even if are incentives to privatization and ber the old movie ‘‘Blazing Saddles.’’ they do what we want, they still have they are necessary incentives and need They had a sheriff in there, Clevon Lit- to shoot themselves? I will talk to my to be retained. I would like to believe tle, who held a gun to his own head and colleagues about that one in a minute. that COMSAT and INTELSAT will act said, as my colleagues know, ‘‘If you Mr. KLINK. Mr. Chairman, I thank in all of our best interests without any don’t let me out of here, I’m going to the gentleman for his insight, and I prodding, but that does not seem to be shoot myself.’’ That is really what this thank the gentleman for his leadership the case, nor does it seem to be realis- bill does. If my colleagues view this as on this issue. tic. a United Nations of satellites, we are Mr. TAUZIN. Mr. Chairman, I move As I warned in my opening state- holding a gun to our dear friend, Billy to strike the requisite number of ment, this amendment is designed to Richardson’s head. And I refer to him words. kill the bill, not to amend it or to im- as ‘‘Billy’’ only because I have great af- Mr. Chairman, first let me say that I prove it. If Members of the House wish fection and friendship for the U.N. Sec- am pleased that the Washington Legal retary. It is like us holding a gun to his to support and protect a monopoly, Foundation sent a letter of clarifica- head and saying to the other countries, then they should vote for this amend- tion to the chairman, the gentleman if they do not do what we want them to ment. If they are in fact pro-competi- from Virginia (Mr. BLILEY). They do, we are going to shoot our own rep- tion and pro-privatization, they should should have because they are 503(c), resentative. they cannot lobby on a bill, they did vote to oppose the amendment. Mr. Chairman, that would be foolish, Mr. KLINK. Mr. Chairman, I move to not mean their letter to the gentle- and I think that that is what this strike the requisite number of words. woman from Maryland (Mrs. MORELLA) amendment tries to correct. (Mr. KLINK asked and was given per- While the sanctions imposed by this to be a lobbying effort. But notice they mission to revise and extend his re- bill may not work, they will cost have not repudiated what they said. marks.) money. They have not said, we change our Mr. KLINK. Mr. Chairman, I rise in My colleagues should support the mind, we change our opinion. support of the Morella amendment. Morella amendment, block the sanc- Here is what they said this bill does, The previous speaker, a dear friend of tions that really do amount to a taking and Members who are listening in their mine, had mentioned, and I, like her, of property, try to save our constitu- offices or wherever they may be, I hope am not an attorney but I think it is ents money, try to keep the United they pay close attention to this. This very clear that contracts are property. States satellite industry viable and is what the Washington Legal Founda- I think that the Supreme Court made competitive. tion said this bill does without the that decision about a century ago. Be- Mr. DINGELL. Mr. Chairman, will Connie Morella amendment: yond that, this legislation may or may the gentleman yield? It says that this bill provides that if not lead to privatization and competi- Mr. KLINK. I yield to the gentleman INTELSAT and Inmarsat do not pri- tion in international communications. from Michigan. vatize quickly enough, as this bill I do not think that we are all very sure Mr. DINGELL. Mr. Chairman, I just hopefully gets them to do, this bill will if exactly that is going to happen. I want to ask a question to my col- punish COMSAT by telling COMSAT, have my doubts whether it will or not. leagues on the other side. this U.S. private company, that they H2846 CONGRESSIONAL RECORD — HOUSE May 6, 1998 no longer can offer new services to ‘‘The company can’t give you any more is the monopoly itself because it wants their customers. All they can offer services.’’ Congress destroys a U.S. to hold onto power, it wants to elimi- them is the old services they used to company. What an unprecedented tak- nate competition, and it wants to keep give them. ing in U.S. history. all the money for itself. Very simple Well, as the Washington Legal Foun- And the Washington Legal Founda- rule in economics. dation points out, those core services tion concludes by saying, Now the gentleman from Pennsyl- are illusory because there are changes Congress may legitimately decide it no vania (Mr. KLINK) said, the last phrase in technology causing those markets to longer wants COMSAT to serve its historic that he used was to say to keep the disappear. If they cannot offer the new role, but if it does so, it is required by the U.S. satellite industry viable and com- services, who the heck wants to do fifth amendment to compensate COMSAT’s petitive. There is no competition business with them? shareholders for all the immense capital today. There is only one guy who calls This bill literally says to COMSAT they have put in public service at the gov- all of the shots. That is why every pri- ernment’s request. and its customers, ‘‘Quit doing busi- vate satellite company that wants to ness, shoot yourself in the head be- In short, we, the taxpayers and the compete supports this bill, and it is cause you can’t offer the new services citizens of this country, will have an why every major user of satellite com- that all the other companies will be of- enormous legal bill to pay because we munications, the folks who buy stuff fering its customers.’’ Why? Because in Congress incurred that debt, we in from COMSAT, want the bill; because Inmarsat and INTELSAT did not move Congress abrogated contracts, we in they want a choice. They understand fast enough to privatize, even though Congress took away private property this, anybody who is listening to this they could not control that. without providing compensation. debate today. But it gets even worse. The bill also I suggest to my colleagues if there is There are choices about what tele- says that even if INTELSAT and going to be no taking under this bill, vision stations to watch, what news- Inmarsat privatize at the speed of why not pass an amendment? If there papers to buy, where to buy groceries, light, if they are faster than a speeding is not going to be taking under this where to fill up the car with gasoline. bullet and stronger than a locomotive, ‘‘fresh look’’ approach under this re- And today, people who use satellite and they get to this world of privatiza- stricted service provision, if these con- communication services, the pur- tion faster than the chairman wants; tracts really will not get abrogated, if chasers, do not have any competition; even if they do that, this bill says that none of this will really happen, then it is a monopoly. COMSAT’s customers no longer have to what is wrong with the Morella amend- Now as to the heart of the amend- keep their contracts. They can renego- ment which says do not do it if it takes ment that this constitutes a taking, tiate them with whenever they want. property under the fifth amendment. keep in mind that the fifth amendment They can leave doing business with Do it only if, and only if, we are not of the United States already provides COMSAT anytime they want. taking property without compensation protection against anybody who thinks Now put these two provisions to- as a violation of the fifth amendment. that their property has been gether, and we really get the sense of This amendment makes this a good unjustifiably seized and who wants what this is all about. This bill says in bill. I urge my colleagues to adopt it compensation from the United States effect that COMSAT may not be able to for the sake of the taxpayers and the Government. There is a takings protec- offer its customers new services and, citizens of this country; more impor- tion, and obviously everything that by the way, they can get out of their tantly, for those of us in Congress who Congress does has to abide by the Con- current contracts. Now what do my have never been asked to vote to abro- stitution, and therefore COMSAT and colleagues think is going to happen? If gate private contracts. anybody else we pass legislation affect- this bill passes without the Morella Mr. KLUG. Mr. Chairman, I move to ing today has the ability to appeal amendment, in fact, COMSAT is going strike the requisite number of words. back to the fifth amendment. to lose those customers. Mr. Chairman, I rise in opposition to Now, if the fifth amendment already Why? One, we just abrogated their this amendment and I want to, if I can, protects them, then they do not need contracts; and, number 2, they just address issues that have been raised by this takings provision. If they need a found out that COMSAT may not be the last three speakers, the gentleman takings provision, then it is not ap- able to offer them any new services. from Pennsylvania (Mr. KLINK), the plied to in the fifth amendment. And Why would someone stay with a com- gentleman from Michigan (Mr. DIN- they are essentially asking us to pass pany that came out with new services GELL), and the gentleman from Louisi- something that is already redundant when Congress just told them they do ana (Mr. TAUZIN). and in fact is enshrined in the basic not have to keep their word, they do Now for everybody who is sitting document that this body has to live by. not have to live up to the terms of back home, in their office, in the So that raises the question who their contract? Why would one stay? Chamber, and really do not understand wants the takings provision in here? They would leave. what we are arguing about in terms of And open up the mystery box, and And guess what? That is exactly satellite communication, let us make reach inside, and who is inside there what the people who are behind these it very simple. There is a monopoly with a business card? It is COMSAT; two provisions want. Why? Because today, and today we are trying to end because what they want to say is, ‘‘You they are competitors of COMSAT. They the monopoly. That is what this entire can’t pass go, you can’t force competi- would like to have those customers, debate is all about. tion in the industry unless the FCC and so they are asking us in Congress Now contracts are not in perpetuity. thinks it will do so.’’ And so they can to rearrange the customer base, to send The United States over the course of delay, by essentially saying there can- customers away from COMSAT and to time makes lots of contracts. We buy not be a taking; so the FCC has to go send them to their competitors. That is everything from airplanes to railroad to court to prove that it is not a tak- exactly what is behind these two tracks to nuclear weapons and paper ing, and if it is not a taking, then we amendments. clips and staplers and cars and every- can go forward. And if we do that, if we do that, the thing else in the world. We do not go to It is a delaying tactic. It is legal jar- Washington Legal Foundation warns General Motors, say we are only going gon thrown out there, with no sense of us, warns us very clearly, that such to buy cars from General Motors for seriousness, and we have got one opin- sweeping congressional abrogation of the rest of our lifetime. We make a ion that says there may be a remote the private contract rights of a single deal, the deal ends, and we move on. chance that there is a taking. company, without any judicial deter- And that is essentially the principle we Now the Congressional Research mination of wrongdoing, may be un- are discussing today: Can we end the Service that does work for Congress to precedented in U.S. history. What an deal with COMSAT? essentially figure out legal issues has awful taking. We do not even get to go Now everybody has said for the last 5, said there is no taking, and our best to court. Congress says, ‘‘Your prop- 6, 7 years that the monopoly should be legal experts inside Congress itself say erty is gone.’’ Congress says, ‘‘Your reformed, and guess who leads the op- that there is absolutely no reason for contracts are no good.’’ Congress says, position today to this amendment? It this taking provision because they are May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2847 protected by the fifth amendment; and Now, we can go back in history, all about the giving as well, and some- secondly, because there is no takings the way back to 1602 when Queen Eliza- times we just give a little bit too much here whatsoever. We are simply saying, beth had granted to one individual and of the rock away. ‘‘You’ve had an exclusive deal for dec- one company a monopoly on playing With that, I yield to the distin- ades, you’re the only people who run cards in England. Now, the Parliament guished subcommittee chair, the gen- the satellite business in this country, ruled, after a point in time, that other tleman from Louisiana (Mr. TAUZIN). and we’re saying in Congress it comes companies should be able to get into Mr. TAUZIN. Mr. Chairman, I thank to an end. It’s over.’’ the business of selling playing cards in the gentleman for yielding. The only way we are ever going to England. It is the famous monopolies Let me point out that this is not have competition for satellite provid- case. Now, the courts in England ruled about monopoly, it is not about mo- ers and purchasers of satellite services that the Parliament had the right to nopoly. COMSAT owns a franchise is by making sure that COMSAT’s mo- have other companies sell playing right to deliver services over these nopoly comes to an end. And when mo- cards, notwithstanding the original international satellites, but they do nopolies come to an end anyplace, in monopoly. not have a monopoly. That is totally the railroads, in the steel industry, the Standard Oil, 1911 in the United wrong. If COMSAT were a monopolist kind of debate we are now having about States, says, we have got a monopoly; in this world of international telephone the computer industry in this country, the Congress has no right to break up and other data services, then there the basic underlying economic theory our monopoly. The Supreme Court of would not be a Hughes or a PanAmSat is that competition drives prices down, the United States in 1911 ruled, the Corporation, another private satellite it does not raise them. Congress has a right to break up mo- corporation. There would not be a And so if we take the argument of nopolies, the Antitrust Division of the Loral, there would not be a Teledesic, a the gentleman from Pennsylvania (Mr. Justice Department has the right to Columbia, Meridian, ELLIPSO, all pri- KLINK) to its logical conclusion, the break up monopolies. And every elec- vate satellite companies just like COM- only way we can have competition and tric company, every telephone com- SAT, providing communication serv- lower prices in the marketplace is if pany, every cable company, every mo- ices in this country and around the the government gives everybody a mo- nopoly for time immemorial has ar- world. There would not be an undersea nopoly, and then not only do we give gued that it is a takings. It is not. It is cable taking so much business across them a monopoly, we give them a mo- a givings. We gave it to them, and we the oceans and delivering communica- nopoly for eternity. They can never have the right to take it back with rea- tions services across the world. have any competition because that is a sonable economic regulation, which In fact, COMSAT’s percentage of bad thing. does not put them out of business. voice services right now is 22 percent. So for those of us in this body who We are not putting COMSAT out of Does that sound like a monopoly? And are interested in competition, who are business. We are allowing other compa- have they signed monopoly contracts? interested in fundamental economics, nies to get into business, because the Well, here is what the FCC said on the choice that is good for the Amer- reality is that for at least the last 15 April 24, 1998, just a couple of weeks ican consumer, then I urge the defeat years, that taking has been COMSAT, ago, on that very point. It said that we of this amendment because it is only a INTELSAT and Inmarsat blocking conclude the contracts that COMSAT delaying tactic to make sure that a other American company’s ability to has signed, the long-term contracts to monopoly can preserve its power as get into these markets. AT&T and MCI, actually permit AT&T long as possible. The taking goes on every day when and MCI to choose COMSAT’s competi- b 1300 dozens of companies across America do tors for services. Does that sound like Mr. MARKEY. Mr. Chairman, I move not create jobs because they are denied a monopoly, where one signs a contract to strike the requisite number of words the opportunity. They have had this that allows a company to use other and I rise in opposition to the amend- right taken from them. The consumers competitors for services? ment. do not have lower prices because that What I am trying to tell my col- Mr. Chairman, this is not a debate opportunity has been taken from them. leagues is that this is not about a mo- about takings. This is a debate about That is what this legislation is all nopoly, as much as my colleague may givings. The givings of the American about. It is ending the giving, that we want to make it about a monopoly. It people for 35 years to a single company have been undertaking for 35 years, to is about whether or not one of these and a single orbiting cartel. The Amer- a monopoly. That is the privilege of companies, COMSAT, which happens to ican people gave this company a do- the Congress. We have always had this be the government franchisee on these mestic monopoly over resale of right and we will always retain that international satellite systems, which INTELSAT and Inmarsat services. The right. competes with all kinds of other pri- American people gave to COMSAT and So I say to my colleagues, we have a vate companies: PanAmSat, Loral, Inmarsat and INTELSAT immunity choice. Support for the Morella amend- Teledesic, Columbia, Meridian, from antitrust law. The American peo- ment is for a continuation of monop- ELLIPSO and Cable Undersea, whether ple gave them privileged access to or- oly, of a global economic cartel with this one company and its customers bital slots and to spectrum. The Amer- COMSAT as its American subsidiary, are going to be hammered with uncon- ican people gave them access to all of its American affiliate continuing on stitutional takings. That is what the these privileges because there were no this tradition of denying American issue is all about. other companies, there was no other companies and American workers the Finally, let me make one other point. way of doing it; only by using this ability to get into these industries the If any one of these companies, mechanism could we create this indus- way we shoot to dominate the global PanAmSat included, thinks that COM- try. marketplace. SAT has an anticompetitive contract, Over the years, the American people I urge a very strong ‘‘no’’ on this they have a remedy today. They can go have granted the same opportunities to amendment. For those of us who be- to the FCC, they can go to the Federal electric monopolies, to local telephone lieve in competition, for those of us court and they can demand that that monopolies, to long-distance monopo- who believe in opening up markets, for contract be abrogated. lies, to cable monopolies. But we al- those of us who believe that America is In fact, PanAmSat took a case to the ways reserve the right, when techno- going to be the dominant tele- district court just recently. Here is logical change makes it possible, to in- communications leader, a vote ‘‘no’’ what the court said. Nothing in the troduce competition. In fact, within here guarantees that we enter this record suggests that COMSAT secured the legislation that was passed in 1962, world as its dominant power. any of the contracts by means of anti- the Congress expressly reserved the Mr. TRAFICANT. Mr. Chairman, I competitive acts against PanAmSat. right to repeal, to alter, or to amend move to strike the requisite number of They threw PanAmSat out of court, the provisions of the 1962 COMSAT– words. and yet we in Congress are going to INTELSAT Act. We reserved to our- Mr. Chairman, I have listened to a overturn that court decision and abro- selves this right, as we always have. lot of the debate, and I am concerned gate those contracts. H2848 CONGRESSIONAL RECORD — HOUSE May 6, 1998 No. The amendment protects against Mr. PITTS. Mr. Chairman, I move to There is no option to that whole as- this taking, and my colleagues ought strike the requisite number of words. pect, and if one does not accept that to vote for it. Mr. Chairman, I yield to the gen- the monopoly exists, I guess if one Mr. DINGELL. Mr. Chairman, will tleman from Virginia (Mr. BLILEY). wants to convince oneself that it does the gentleman yield? Mr. BLILEY. Mr. Chairman, I thank not exist, I do not see how one can, but Mr. TRAFICANT. I yield to the gen- the gentleman for yielding. I guess if one wants to, one can, then tleman from Michigan. The fifth amendment already ad- the next logical step I could under- Mr. DINGELL. Mr. Chairman, listen dresses this; that is why we have a Con- stand one saying, well, there is a tak- to the language of the amendment. stitution, to protect us. Here, once ing going on in terms of saying that This is what it says: Takings prohib- again, COMSAT wants special privi- some of the existing contracts need to ited. In implementing the provisions of leges. The Constitution is not good be modified. this section, the commission shall not enough for COMSAT. They want spe- restrict the activities of COMSAT in a cial protection for a reason to be able b 1315 manner which would create a liability to stop the FCC from implementing my I guess if we accept that there is not for the United States under the fifth bill, by tying it up in court. COMSAT’s a monopoly, then there is a logical step amendment to the Constitution. strategy is to delay because they make that we could take. But, again, I find it That is all it says. It does not say the a monopoly of profits under the status very, very difficult even to perceive commission is supposed to allow mo- quo at the expense of our constituents. that argument. nopolies. It simply says, we are not Let me say a couple of words about But let me follow up though really going to subject the taxpayers of the monopoly. COMSAT claims its share of with the fact that the monopoly exists United States to a $6 billion or $7 bil- the market for all switch voice and pri- in terms of the issue of the taking. lion liability by taking property from vate line services is 21 percent. The fig- What has been spoken about before, ure is irrelevant. International sat- COMSAT. If there is no taking under and I think from a Member perspective ellite delivered services constitute a this amendment, I say to my friends to completely understand, is that those separate submarket within the larger who oppose it, there is nothing for people who have contracts with COM- market for international telecommuni- them to fear. If there is a taking, by SAT entered into those contracts in an cation services, because satellites pro- God, my colleagues better pray that environment of dealing with a monop- vide more cost-effective service for this is in the bill, because if it is not, oly, a monopoly in terms of the monop- thin traffic paths and because most my colleagues are going to be trying to oly power that they had in terms of carriers prefer to use a mix of cable defend through our Constitution why those contract negotiations. This is and satellite facilities, international they dissipated $6 billion or $7 billion not the first time this type of situation of your constituents’ and your tax- carrier 102 FCC. COMSAT has virtually the entire has existed. payers’ money. What I have pointed out previously I thank the gentleman. market for international satellite de- and I think is absolutely appropriate as Mr. TAUZIN. Mr. Chairman, will the livered telephone onto itself. Separate an analogy is when AT&T was broken gentleman yield? satellite systems generally have not Mr. TRAFICANT. I yield to the gen- been able to carry public switch tele- up for long distance service, AT&T was tleman from Louisiana. phoning, which accounts for less than 1 a monopoly. It was broken up. When it Mr. TAUZIN. Mr. Chairman, let me percent of PanAmSat’s revenues, was broken up, the existing contracts summarize by pointing out that the Economists Incorporated, Market were able to be modified. That is ex- Morella amendment simply says, do Power, Market Foreclosure and actly what is being done here. not do anything that is going to take INTELSAT, February 16, 1998. By the It is not unprecedented. It has been private property that the taxpayers of time INTELSAT permitted separate done in other areas as well. That is the America are going to end up having to systems to offer any meaningful quan- policy implication behind what we are pay for. tity PSN service in November of 1994, doing. Now, the opponents say, well, the COMSAT had already locked up the Mr. Chairman, I urge Members to op- fifth amendment already protects largest carriers to long-term contracts. pose the amendment and support the them. It protects the company by mak- This amendment is a red herring; it bill. ing taxpayers liable. is just a way for COMSAT to tie up the The CHAIRMAN. The question is on That is not a good protection for us. FCC in court for years and to preserve the amendment offered by the gentle- If we want to protect the American their monopoly. I hope my colleagues woman from Maryland (Mrs. MORELLA). taxpayers, we tell this bill and we tell will vote the amendment down. I thank The question was taken; and the the FCC, do not do anything that takes the gentleman. Chairman announced that the noes ap- private property that American tax- Mr. DEUTSCH. Mr. Chairman, I move peared to have it. payers are going to end up having to to strike the requisite number of RECORDED VOTE compensate for. That is why we need to words. Mr. DINGELL. Mr. Chairman, I de- pass this good amendment. Mr. Chairman, hopefully, Members mand a recorded vote. Mr. TRAFICANT. Mr. Chairman, in are listening to the debate and listen- A recorded vote was ordered. closing, I think the interpretation of ing carefully, because there have really The vote was taken by electronic de- the Constitution has been so perverted been a lot of red herrings, as my Chair- vice, and there were—ayes 111, noes 304, I think we had better be very specific man has stated previously. answered ‘‘present’’ 2, not voting 15, as The facts of the monopoly issue of on this takings issue. follows: COMSAT are just a fact. We have heard Mrs. MORELLA. Mr. Chairman, will [Roll No. 127] the gentleman yield? numbers thrown out: 20 percent of the Mr. TRAFICANT. I yield to the gen- market, 22 percent of the market. In AYES—111 tlewoman from Maryland. the specific area of international sat- Andrews Clyburn Frost Archer Condit Furse Mrs. MORELLA. Mr. Chairman, I ellite communications, it is 100 percent Baker Conyers Gekas know there are some differences of of the market. It is a monopoly. There Barcia Cummings Gilchrest opinion in this Chamber and they are is no way around it. It is a monopoly, Barrett (NE) Davis (IL) Goss well founded, but all of us feel that that is, a statutory monopoly that this Bartlett DeLay Granger Berry Dingell Gutknecht there should not be improper takings. Congress granted for good reason many Blagojevich Dooley Hall (OH) We have had a number of opinions on years ago. Boehlert Doolittle Hall (TX) it. Therefore, this amendment should But that monopoly that exists is a Boehner Doyle Hamilton be right in order and right in accord monopoly. If we are trying to commu- Bonior Ehrlich Hilliard Boucher Ensign Horn with what we have been saying. So put nicate with a phone call from here, Brown (FL) Farr Hoyer this amendment in the bill, it will Washington, D.C., to Africa, to Asia, Calvert Fazio John make a difference, and this bill will there is only one path to complete that Campbell Filner Johnson (CT) Chenoweth Foley Johnson, E. B. then become law ultimately. Without phone call, and it is through COMSAT, Clayton Fowler Johnson, Sam it, there will be problems. through INTELSAT, 100 percent. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2849 Kaptur Oberstar Schaefer, Dan Rodriguez Slaughter Tiahrt tionally affixed a label bearing a ‘‘Made in Kilpatrick Owens Schumer Roemer Smith (MI) Tierney America’’ inscription, or any inscription Klink Oxley Sensenbrenner Rogers Smith (NJ) Turner with the same meaning, to any product sold Sessions Ros-Lehtinen Smith (OR) Velazquez Kucinich Pascrell in or shipped to the United States that is not Livingston Paul Skelton Rothman Smith (TX) Vento Maloney (NY) Payne Stark Roukema Smith, Adam Visclosky made in the United States, such person shall Martinez Peterson (MN) Stearns Roybal-Allard Smith, Linda Walsh be ineligible to receive any contract or sub- Mascara Petri Stenholm Rush Snowbarger Wamp contract made with funds provided pursuant McCarthy (MO) Pombo Stokes Ryun Snyder Waters to this Act, pursuant to the debarment, sus- McCarthy (NY) Pryce (OH) Tauzin Sanchez Solomon Watkins pensions, and ineligibility procedures de- McIntosh Rangel Taylor (NC) Sanders Souder Watts (OK) scribed in section 9.400 through 9.409 of title Thomas Sandlin Spence Waxman Meek (FL) Redmond 48, Code of Federal Regulations. Meeks (NY) Regula Thompson Sanford Spratt Weldon (FL) Menendez Riley Torres Saxton Stabenow Weldon (PA) MODIFICATION TO AMENDMENT NO. 8 OFFERED Minge Rivers Towns Schaffer, Bob Strickland Weller BY MR. TRAFICANT Mink Rohrabacher Traficant Scott Stump Wexler Mr. TRAFICANT. Mr. Chairman, I Morella Royce Upton Serrano Stupak Weygand Nethercutt Sabo Watt (NC) Shadegg Sununu White ask unanimous consent that the Northup Salmon Wynn Shaw Talent Whitfield amendment be modified with the lan- Nussle Scarborough Young (AK) Shays Tanner Wicker guage at the desk. Sherman Tauscher Wise The CHAIRMAN. The Clerk will re- NOES—304 Shimkus Taylor (MS) Wolf Shuster Thornberry Woolsey port the modification. Abercrombie Edwards Kolbe Sisisky Thune Yates The Clerk read as follows: Ackerman Ehlers LaFalce Skeen Thurman Young (FL) Aderholt Emerson LaHood Modification to amendment No. 8 offered Allen Engel Lampson ANSWERED ‘‘PRESENT’’—2 by Mr. TRAFICANT: In lieu of the matter proposed to be in- Armey English Lantos Cardin Sawyer Bachus Eshoo Largent serted by the amendment, on page 33 after Baesler Etheridge Latham NOT VOTING—15 line 17, add the following: Baldacci Evans LaTourette Bateman Hastings (FL) Pelosi (4) Impact privatization has had on U.S. in- Ballenger Everett Lazio Carson Hutchinson Radanovich dustry, U.S. jobs and U.S. industry’s access Barr Ewing Leach Christensen McCollum Riggs to the global marketplace. Barrett (WI) Fattah Lee Fossella McNulty Rogan Barton Fawell Levin Gonzalez Neumann Skaggs The CHAIRMAN. Is there objection Bass Forbes Lewis (CA) to the modification offered by the gen- Becerra Ford Lewis (GA) b 1340 tleman from Ohio (Mr. TRAFICANT)? Bentsen Fox Lewis (KY) Bereuter Frank (MA) Linder Mrs. KENNELLY of Connecticut, Ms. There was no objection. Berman Franks (NJ) Lipinski MILLENDER-MCDONALD and Messrs. Mr. TRAFICANT. Mr. Chairman, I Bilbray Frelinghuysen LoBiondo HEFLEY, MILLER of California, support this legislation. I want to com- Bilirakis Gallegly Lofgren SPRATT, CASTLE, LEVIN, and FOX of mend the gentleman from Virginia Bishop Ganske Lowey Bliley Gejdenson Lucas Pennsylvania changed their vote from (Mr. BLILEY), the gentleman from Mas- Blumenauer Gephardt Luther ‘‘aye’’ to ‘‘no.’’ sachusetts (Mr. MARKEY), and the gen- Blunt Gibbons Maloney (CT) Mrs. JOHNSON of Connecticut, Ms. tleman from Michigan (Mr. DINGELL), Bonilla Gillmor Manton EDDIE BERNICE JOHNSON of Texas Bono Gilman Manzullo the gentleman from Louisiana (Mr. Borski Goode Markey and Messrs. DOOLEY of California, TAUZIN) regardless of how they feel on Boswell Goodlatte Matsui CLYBURN, OWENS, and STOKES the issue. Boyd Goodling McCrery changed their vote from ‘‘no’’ to ‘‘aye.’’ The time has come for this legisla- Brady Gordon McDade So the amendment was rejected. Brown (CA) Graham McDermott tion. I have some concerns. In this leg- Brown (OH) Green McGovern The result of the vote was announced islation is a section that requires an- Bryant Greenwood McHale as above recorded. nual reports to the Congress of the Bunning Gutierrez McHugh AMENDMENT NO. 8 OFFERED BY MR. TRAFICANT Burr Hansen McInnis United States. The contents of those Burton Harman McIntyre Mr. TRAFICANT. Mr. Chairman, I reports are listed to include the follow- Buyer Hastert McKeon offer an amendment. ing progress with respect to each objec- Callahan Hastings (WA) McKinney The CHAIRMAN. The Clerk will des- tive since the most recent preceding Camp Hayworth Meehan ignate the amendment. report. You see, these reports are to Canady Hefley Metcalf The text of the amendment is as fol- Cannon Hefner Mica measure whether or not this legislation Capps Herger Millender- lows: is meeting the objectives and is carry- Castle Hill McDonald Amendment No. 8 offered by Mr. TRAFI- ing out the provisions of its intent. Chabot Hilleary Miller (CA) CANT: Chambliss Hinchey Miller (FL) At the end of the bill, add the following The first thing the bill calls for is the Clay Hinojosa Moakley new sections: progress it makes to do that; the sec- Clement Hobson Mollohan SEC. 4. COMPLIANCE WITH BUY AMERICAN ACT. ond is the views of the respective par- Coble Hoekstra Moran (KS) Coburn Holden Moran (VA) No funds authorized pursuant to this Act ties with respect to the privatization Collins Hooley Murtha may be expended by an entity unless the en- issue; finally, the views of the industry Combest Hostettler Myrick tity agrees that in expending the assistance and consumers on privatization. Cook Houghton Nadler the entity will comply with sections 2 Quite frankly, although I am con- Cooksey Hulshof Neal through 4 of the Act of March 3, 1933 (41 cerned about the views, my biggest Costello Hunter Ney U.S.C. 10a–30c, popularly known as the ‘‘Buy Cox Hyde Norwood American Act’’). concern is not about anybody’s views, Coyne Inglis Obey my big concern is about the impact Cramer Istook Olver SEC. 5. SENSE OF CONGRESS; REQUIREMENT RE- Crane Jackson (IL) Ortiz GARDING NOTICE. this legislation will have on jobs, the Crapo Jackson-Lee Packard (a) PURCHASE OF AMERICAN-MADE EQUIP- United States industry, United States Cubin (TX) Pallone MENT AND PRODUCTS.—In the case of any competitiveness, and our access to the Cunningham Jefferson Pappas equipment or products that may be author- global marketplace from a competitive Danner Jenkins Parker ized to be purchased with financial assist- spirit. Davis (FL) Johnson (WI) Pastor ance provided under this act, it is the sense Davis (VA) Jones Paxon of the Congress that entities receiving such The Traficant amendment simply Deal Kanjorski Pease assistance should, in expending the assist- says that there would be another sec- DeFazio Kasich Peterson (PA) tion in this report language that will DeGette Kelly Pickering ance, purchase only American-made equip- Delahunt Kennedy (MA) Pickett ment and products. ask for each year from the President DeLauro Kennedy (RI) Pitts (b) NOTICE TO RECIPIENTS OF ASSISTANCE.— and the Commission to update us on Deutsch Kennelly Pomeroy In providing financial assistance under this the impact that privatization has had Diaz-Balart Kildee Porter Act, the Federal Communications Commis- on U.S. industry, United States jobs, Dickey Kim Portman sion shall provide to each recipient of the as- Dicks Kind (WI) Poshard sistance a notice describing the statement and United States industry’s access to Dixon King (NY) Price (NC) made in subsection (a) by the Congress. the global marketplace. Doggett Kingston Quinn I would hope that the legislation Dreier Kleczka Rahall SEC. 6. PROHIBITION OF CONTRACTS. Duncan Klug Ramstad If it has been finally determined by a court would be accepted. It makes, in my Dunn Knollenberg Reyes or Federal agency that any person inten- opinion, good sense. H2850 CONGRESSIONAL RECORD — HOUSE May 6, 1998 Mr. Chairman, I yield to the distin- Page 33, beginning on line 20, strike ‘‘Com- Mr. BLILEY. Mr. Chairman, I have guished gentleman from Virginia (Mr. mittee on’’ and all that follows through ‘‘of reviewed the amendment and think it BLILEY). the Senate’’ on line 22 and insert the follow- is a fair proposition. The State Depart- ing: ‘‘Committees on Commerce and Inter- ment plays an important role in inter- b 1345 national Relations of the House of Rep- national negotiations, including re- Mr. BLILEY. Mr. Chairman, this gen- resentatives and the Committees on Com- merce, Science, and Transportation and For- garding the intergovernmental sat- tleman has reviewed the amendment eign Relations of the Senate’’. ellite organizations. and finds it acceptable and urges Mem- (Mr. GILMAN asked and was given My understanding is that this bers to vote for it. permission to revise and extend his re- amendment is not intended to and in Mr. MARKEY. Mr. Chairman, will marks.) no way does affect the jurisdictional the gentleman yield? Mr. GILMAN. Mr. Chairman, I com- interests of our committees in the bill. Mr. TRAFICANT. I yield to the gen- mend the gentleman from Virginia Does the gentleman agree? tleman from Massachusetts. (Mr. BLILEY) for taking up this com- Mr. GILMAN. Mr. Chairman, re- Mr. MARKEY. Mr. Chairman, I thank plicated issue of international satellite claiming my time, this amendment has the gentleman very much and I want to policy. Furthermore, I support the no impact nor is it intended to have an congratulate him on his amendment. I basic purpose of this measure, which is impact on our committees’ jurisdic- think he is adding substantially to the to move ahead with privatizing the tional interest. nature of this bill, in the change which intergovernmental satellite organiza- Mr. BLILEY. Mr. Chairman, if the is taking place internationally, its im- tions. It is an important undertaking gentleman will continue to yield, with pact upon the United States, and how to meet the current telecommuni- that understanding, I think we are pre- fully we should understand it. I thank cations marketplace. pared to accept the amendment. the gentleman very much. However, in consultation with the Mr. GILMAN. I thank the chairman Mr. TRAFICANT. Mr. Chairman, re- distinguished ranking minority mem- for his considerable consideration. claiming my time, I appreciate the ber of the House Committee on Inter- The CHAIRMAN. The question is on gentleman’s comments, and I am hop- national Relations, the gentleman the amendment offered by the gen- ing that impact is going to be favor- from Indiana (Mr. HAMILTON), I am of- tleman from New York (Mr. GILMAN). able. fering an amendment to make a simple The amendment was agreed to. Mr. TAUZIN. Mr. Chairman, will the change to the bill before us. It merely AMENDMENT NO. 7 OFFERED BY MR. TAUZIN gentleman yield? adds the House and Senate Committees Mr. TAUZIN. Mr. Chairman, I offer Mr. TRAFICANT. I yield to the gen- on International Relations to the com- an amendment. It is amendment No. 7. tleman from Louisiana. mittees required to be consulted prior The CHAIRMAN. The Clerk will des- Mr. TAUZIN. Mr. Chairman, I wanted to the meetings of the INTELSAT or ignate the amendment. to thank my friend for offering the Inmarsat Assembly of Parties, and re- The text of the amendment is as fol- amendment, congratulate him on it, vises the annual reporting requirement lows: and suggest that not only do we not to also include these committees. Amendment No. 7 offered by Mr. TAUZIN: have any opposition to the amendment, We are interested in this legislation Page 28, beginning on line 14, strike sec- but we gratefully and warmly embrace because changing international com- tion 642 through page 29, line 24, and redesig- it, and I would urge all Members to munication satellite policy has foreign nate the succeeding sections accordingly. support it. policy implications. I want to be clear Mr. TAUZIN. Mr. Chairman, let me The CHAIRMAN. The question is on we are not seeking to interfere with first apologize for the complexities in the amendment, as modified, offered by the Committee on Commerce’s juris- this bill. There is no way for us to deal the gentleman from Ohio (Mr. TRAFI- diction to determine telecommuni- with satellite policy and the extraor- CANT). cations policy, but the State Depart- dinary nature by which this highly The amendment, as modified, was ment is the lead agency in the negotia- technical industry has developed with- agreed to. tions with the intergovernmental sat- out some very technical provisions. The CHAIRMAN. The committee will ellite organizations. Let me secondly again compliment rise informally. State traditionally has had the lead the chairman and the gentleman from The SPEAKER pro tempore (Mr. in multiagency teams negotiating with Massachusetts (Mr. MARKEY) for the DUNCAN) assumed the chair. any international organizations. Inclu- bill. It is a good attempt at accom- f sion of the Committee on International plishing something which must be ac- Relations in the reporting and consult- complished very soon, and that is the MESSAGE FROM THE PRESIDENT ative process allows the committees to privatization of the government orga- A message in writing from the Presi- perform their fundamental oversight nizations, INTELSAT and Inmarsat, dent of the United States was commu- responsibilities. which service telecommunications nicated to the House by Mr. Sherman I hope the chairman will be willing to needs across the world. Williams, one of his secretaries. accept this amendment. This bill raises Let me thirdly point out that the The SPEAKER pro tempore. The other concerns, which were flagged in amendment I offer is in no way, shape, Committee will resume its sitting. testimony by the administration last or form designed to gut this bill. It f fall. These issues, such as including does not. It is a very targeted amend- specific directives on the conduct of ment which deals with a single provi- COMMUNICATIONS SATELLITE the negotiations, deserve further con- sion in the bill, which many of us be- COMPETITION AND PRIVATIZA- sideration. lieve ought not be in the bill if we want TION ACT OF 1998 I have a concern about the expanded a bill passed to accomplish its good The Committee resumed its sitting. responsibilities given to the Federal purposes. Now, what is the provision that this AMENDMENT NO. 4 OFFERED BY MR. GILMAN Communications Commission in this bill for the multilateral negotiations amendment deletes? It is a very simple Mr. GILMAN. Mr. Chairman, I offer provision. It is a provision that says an amendment. aimed at privatizing INTELSAT. The President should have the discretion of that the contracts that COMSAT has The CHAIRMAN. The Clerk will des- negotiated with companies like AT&T ignate the amendment. ensuring that our State Department, and any other relevant government and MCI, those contracts to provide The text of the amendment is as fol- services over their network, could be lows: agency, plays a role in this process. I look forward to continuing to work abrogated by those customers unilater- Amendment No. 4 offered by Mr. GILMAN: with the Committee on Commerce as ally, at their own will, within a couple Page 33, line 5, strike ‘‘the Congress’’; and years. In effect, the provision in this insert ‘‘the Committees on Commerce and the bill proceeds through the process. International Relations of the House of Rep- Mr. BLILEY. Mr. Chairman, will the bill is a grant of right by Congress to resentatives and the Committees on Com- gentleman yield? companies that have executed will- merce, Science, and Transportation and For- Mr. GILMAN. I yield to the gen- fully, freely, contracts with COMSAT eign Relations of the Senate’’. tleman from Virginia. to then decide they will no longer keep May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2851 those contracts and move their busi- another? Has COMSAT done anything terminated, then users will be able to ness to another company. that requires us to take away their negotiate with new interest. What is Now, is it our business to be abrogat- contract rights and to let their cus- wrong with letting users negotiate ing contracts? Well, my colleagues will tomers out? To all of these things I lower rates? Their consumers will ben- hear from the opponents of my amend- hope the answer is no, and I hope my efit from carriers’ lower costs. ment that this concept called ‘‘fresh colleagues will vote for this amend- Second, the provision in the bill look’’ is something that is often em- ment which takes this single provision would not result in an unconstitutional ployed when monopolies are regulated out of the bill and protects contracts taking of COMSAT’s property. Takings and competitive market places are es- that deserve protection in the free are most often found with real estate. tablished. That is true, ‘‘fresh look’’ is market. COMSAT has no property right in its a concept employed. ‘‘Fresh look’’ is Mr. BLILEY. Mr. Chairman, I rise in FCC licenses. While it may argue it has available today to any competitor who opposition to the amendment. a property right in its service con- wants to go to the FCC or to the courts While I appreciate my colleague’s tracts, the frustration of contracts due and argue that it has a contract with support of the general goals of the bill, to economic regulation by Congress is COMSAT that was entered into in an I cannot support his amendment. not a permissible taking of property. ‘‘Fresh look’’ is a policy used by the anti-competitive mode. b 1400 Companies have done that. In fact, FCC in the past to foster competition PanAmSat, one of COMSAT’s competi- in a market previously characterized Frustration of contracts is not un- tors, went to the FCC and argued that as noncompetitive. Once the FCC re- constitutional, but I do not think a the contracts that COMSAT had signed moved a barrier to competition and en- court would even find frustration or with some customers were, in fact, abled others to compete, in none of the abrogation. A ‘‘fresh look’’ merely anti-competitive contracts and the previous instances did a court find the gives COMSAT’s customers a chance to FCC ought to order them abrogated. FCC’s use of ‘‘fresh look’’ amounted to renegotiate once competitors are avail- They lost that case. They took it to a taking, nor does our bill. able. the district court and the district court First, our bill does not abrogate pri- Third, COMSAT has no reasonable ruled against them. vate contracts; it merely gives consum- expectation in the status quo that The district court ruled, in effect, ers who entered into contracts with would be tantamount to a property that the contracts we are talking COMSAT, when it was the monopoly, right, since COMSAT has been operat- about here, signed by AT&T and MCI the opportunity to renegotiate those ing in a heavily regulated environment with COMSAT, were contracts that contracts once that monopoly has since we created it back in 1962, under were willfully negotiated; that, in fact, ended. Most customers will probably a statute in which we expressly reserve contracts they signed on a long-term stay with COMSAT if it provides qual- the right to alter the regulatory land- basis with COMSAT after turning down ity service at a reasonable rate. scape governing COMSAT at any time. offers by PanAmSat and other com- We have public statements of support Moreover, the provisions would not petitors, willfully signed; and contracts for ‘‘fresh look’’ from a number of subject the U.S. Government to any li- that even allowed MCI and AT&T, in- users, including the long-distance com- ability under the Tucker Act or any deed, to reroute their services when panies and the maritime users who other statute, because they do not re- they wanted over their competitors. have benefitted in the past when the sult in an unconstitutional taking. They were not anti-competitive con- FCC required ‘‘fresh look’’ in other in- Moreover, COMSAT still has a mo- tracts at all. The court ruled in favor stances. nopoly for INTELSAT and Inmarsat of COMSAT that its contracts were The gentleman notes that ‘‘fresh services. It makes eminent sense and is valid, not anti-competitive, and that look’’ will enable the long-distance consistent with FCC precedent to en- they should be honored. carriers to get out of their contract ob- able COMSAT’s customers to take ad- Now, this bill does something very ligations with COMSAT. Those con- vantage of the presence of new com- strange. This bill does not say that tracts for INTELSAT capacity were en- petitors once COMSAT’s monopoly is PanAmSat and others have a right to tered into when COMSAT was a monop- eliminated under the bill. Without go and challenge these contracts. They oly for such capacity. ‘‘fresh look,’’ the elimination of now have that right. This bill over- To claim that these contracts were COMSAT’s monopoly will have less of a turns the district court, overturns the entered into voluntarily and, therefore, competitive impact, since customers FCC, and gives to AT&T and MCI and Congress should not permit their re- will be unable to take advantage of the other customers the right unilater- negotiation, reminds me of a story I new opportunities if they are locked ally not to honor their contracts any- heard from a member of Parliament into long-term commitments entered more, without any finding that COM- from another country. He was telling into when COMSAT was the only game SAT has done anything wrong or that how he had flown to the States with his in town. these contracts are anti-competitive to own country’s government-owned air- There has been a lot of double-speak any extent. line instead of taking a U.S. carrier that COMSAT does not have a monop- In effect, this bill asks my colleagues like he usually does. He asked the oly because of fiber optic and satellite and myself, as Members of Congress, to flight attendant if there was a choice competitors, and this Congress should vote to abrogate private contracts that for dinner that night. She paused for a not be adjudicating whether COMSAT the courts have already determined moment and said, yes, there is a has a monopoly but should leave it to were freely and willfully entered into. choice; you can either have dinner or the courts to decide. That is a whole This bill asks my colleagues and I to not. Well, he voluntarily chose to take lot of nonsense. abrogate contracts that should be hon- what was offered. Congress’ action, in passing the Sat- ored by the parties to that contract. And the carriers voluntarily entered ellite Communications Act of 1962 re- Now, why does it do that? Does it do into contracts with the monopoly dis- sulted in COMSAT obtaining a monop- it to punish COMSAT for bad behavior? tributor of INTELSAT services. They oly. And the FCC implemented that act No. The bill says that whether or not could have chosen voluntarily not to so that today COMSAT and COMSAT COMSAT does a good job in deregulat- have satellite redundancy, and, if there alone may offer INTELSAT and ing INTELSAT and Inmarsat, whether was a failure on their own cables, risk Inmarsat services. Sure, COMSAT has or not INTELSAT and Inmarsat do a losing their customers; but they chose competition from the long distance great job of privatizing and deregulat- instead to contract with the monopo- providers on their fiber-optic cables on ing their operations, if everything goes list rather than risk losing their cus- certain routes and from some private right, this bill still abrogates tomers during cable outages. systems with video and other services, COMSAT’s contracts with these people. But that is not the kind of choice our but that does not mean they do not Now, why would we want to do that? bill is after. Under our bill, in January have a monopoly for INTELSAT and Are we just mean? Are we interested in 2000, when direct access or competition Inmarsat services. And only special interest kind of laws that gives to COMSAT for IGO access is permitted INTELSAT and Inmarsat have a glob- customers to one company instead of and COMSAT’s monopoly is thereby al, ubiquitous reach that gives them a H2852 CONGRESSIONAL RECORD — HOUSE May 6, 1998 special place in the international mar- other options to sign with PanAmSat with this particular component, this ket. and turned them down? element of the bill, and why did we find I urge defeat of the amendment. Mr. DINGELL. Mr. Chairman, re- it important? Mr. DINGELL. Mr. Chairman, I move claiming my time, the answer to the First of all, ‘‘fresh look’’ is a critical to strike the last word, and I rise in question is yes. The answer to the component of the bill. Why? Because it support of the amendment. question is also that the Federal judge is what will help consumers realize the Mr. Chairman, I would like my col- involved here considered the questions benefits of competition and doing away leagues to listen to the language of the in a much more thoughtful, careful, with a monopoly. The service providers bill that the amendment would strike. and responsible way after hearing all are going to have to be able to take full And it begins with the fact that every the pleadings than did my beloved advantage of direct access to year everyone who has a contract with friend, the chairman of the committee, INTELSAT so that the bill provides COMSAT may do something under this who has not apparently been privy to consumers what we are promising legislation which says, ‘‘permit users the kind of information that the judge them, and that is competition. or providers of telecommunications was. It does not do any good to say to services that previously entered into Here we had a fair hearing. Every- companies, ‘‘Okay, go ahead, negotiate contracts under a tariff commitment body had a chance to have their say, the best deal possible’’ if, in fact, they with COMSAT to have an opportunity not something which we have seen are still locked into something that at their discretion for a reasonable pe- here. they agreed to when they were still a riod of time,’’ and I note each year Mr. BLILEY. Mr. Chairman, will the monopoly. And so ‘‘fresh look’’ is a they may do this, ‘‘to renegotiate gentleman yield? provision in the bill that will allow those contracts or commitments on Mr. DINGELL. I yield to the gen- companies, one time only in the year rates, terms, and conditions or other tleman from Virginia. 2000, to take a ‘‘fresh look’’ and to provisions, notwithstanding any term Mr. BLILEY. Mr. Chairman, I know move on from there into a procom- or volume commitments or early ter- the gentleman would not want to mis- petitive environment and leaving the mination of charges in any such con- lead the committee. monopolistic environment behind. tracts with COMSAT.’’ On page 28, section 642 of the bill, it ‘‘Fresh look’’ will enable companies What we are literally doing is saying says that they have a fair opportunity to take advantage of privatization, that COMSAT has no contract which at their discretion for a reasonable pe- which is really what the underpinnings will stand for more than 1 year and will riod of time to renegotiate those con- of this legislation are all about. So be constantly subject to repudiation by tracts, a one-time deal. again, if my colleagues support privat- every provider or by every customer. Mr. DINGELL. Mr. Chairman, re- ization and procompetition, then they Now, if that is not a violation of the claiming my time, every year. will vote ‘‘no’’ on this provision. contract clauses of the Constitution or Mr. BLILEY. Mr. Chairman, If the ‘‘Fresh look’’ is necessary. We must of the fifth amendment provisions with gentleman would further yield, no, not be able to take a fresh look in order to regard to the protection of property every year. be competitive. I urge my colleagues to rights, then I am the Queen of the May. And on page 62 of the report it re- vote ‘‘no’’ on the Tauzin amendment. And I would remind all of my col- peats it again, a one-time opportunity Mr. HOYER. Mr. Chairman, I move to leagues that this is going to subject to renegotiate contracts of commit- strike the requisite number of words. the United States to enormous liability ments on rates, terms, and conditions. Mr. Chairman, I rise in very strong for being sued for having interfered Mr. DINGELL. Mr. Chairman, the support of the Tauzin amendment. I with the rights under contract and for staff of this committee has been very was also supportive of the amendment having interfered with the property good in changing the language of the offered by my colleague, the gentle- rights of COMSAT. Imagine how we bill in the report, something which re- woman from Maryland (Mrs. MORELLA). would run a corporation if we were af- grettably they are not capable of I rise in support of this amendment flicted with that kind of provision. Let doing. because I believe that a contract me just read something else. What we have here before us is a very should have the highest regard by this PanAmSat, one of the well-known fat simple matter. They are interfering body. In fact, the Constitution pro- cats that is at the bottom of this mess here under this legislation with the hibits us from abrogating contracts. and which is a major pusher of this leg- rights of contract. They are interfering The fact of the matter is, as the gen- islation, sued COMSAT. A Federal here with property rights. And they are tleman from Michigan (Mr. DINGELL) judge considered all the pleadings, all going to have a liability for the tax- and as the gentleman from Louisiana the facts, and he decided in favor of payers of this country under the Tuck- (Mr. TAUZIN) and others have pointed COMSAT. Why? He said, and this is a er Act, and it is going to be billions of out, the judge found that there were al- quote from the judge, ‘‘Moreover, al- dollars. ternatives. In other words, there were though the record does not reflect that They also have before them a case parties with whom the parties dealing COMSAT entered into long-term con- where the matters have been consid- with COMSAT could have dealt with tracts with many common carriers, ered by a Federal judge, having heard alternatively. nothing in the record suggests that from PAS, having heard from COM- The judge found that for economic COMSAT secured any of the contracts SAT, having heard all the facts. He reasons, obviously of their choosing, by means of any anticompetitive act said, people go to COMSAT after they they did not do so. In fact, they made against PAS. On the contrary, the have heard from the others and given an independent judgment to enter into record suggests that, for their own rea- them a full opportunity to compete. a contract. They may not like that sons, the common carriers elected to Ms. ESHOO. Mr. Chairman, I move to contract now. This is not an unusual secure long-term deals with COMSAT strike the last word, and I rise in oppo- circumstance. only after considering and rejecting of- sition to the Tauzin amendment. On the Subcommittee on Treasury, fers from PAS.’’ Mr. Chairman, first I think that, for Postal Service, and General Govern- Mr. TAUZIN. Mr. Chairman, will the all of our House colleagues, there was a ment, for instance, on the telephone gentleman yield? statement that was made earlier that contract that the Federal Government Mr. DINGELL. I yield to the gen- this is a very complex issue, and we had, we were constantly looked to to tleman from Louisiana. owe it to our colleagues that were not abrogate the contract and allow new Mr. TAUZIN. Mr. Chairman, I am part of the debate on the Committee on competition prior to the term of the confused. I just heard from the chair- Commerce to offer them some clarity. contract expiring. So this is not un- man of the committee that this was What is this amendment about? This usual. Parties to contracts often come like that meal on the British airlines, amendment is about a provision in the to the Congress or to the legislatures he either had to eat or not eat; there bill entitled ‘‘fresh look,’’ and what it and seek for a new deal or, as this was no other option. would do is strike it; it would take it amendment says, a ‘‘fresh look.’’ Is my colleague telling me that the out of the bill. Now, why did the com- Well, ‘‘fresh looks’’ are nice. ‘‘I liked people who signed these contracts had mittee pass the bill out to the floor the contract a year ago, but I do not May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2853 like it now. So how about a fresh look, and we would send a message to those gress expressly retained broad rights troops? Let us look at it one more who enter into contracts. As long as over COMSAT and the right to change time, freshly.’’ Well, the person that those contracts are entered into freely, the 1962 law. does not like the contract may think they will be honored by this legislative Fresh look does not punish COMSAT. that is very nice, but the other person body. COMSAT and its customers are free to with whom the contract was made may Mr. WELDON of Florida. Mr. Chair- continue their contracts. As long as think to themselves that is a jaundiced man, I move to strike the requisite COMSAT provides high quality services look, not a fresh look; it is a look that number of words. Mr. Chairman, I rise at competitive rates, underlying com- they have taken advantage of the con- in opposition to the Tauzin amendment petitive rates, it has nothing to fear. tract for as long as they determined regarding fresh look. H.R. 1872 holds Customers will be the real winners here was advantageous to them, but now, much promise for expanding consumer and whether they stay with a newly ‘‘Guess what? I want to change the choices and lowering consumer costs of competitive COMSAT or choose a new deal.’’ international satellite communica- alternative will be their choice. Mr. Chairman, I would hope my col- tions. This amendment would jeopard- Fresh look is pro-consumer. It gives leagues would support the Tauzin ize all of that. A key reason H.R. 1872 users the right, not the obligation, to amendment. This ‘‘fresh look’’ provi- will benefit consumers is that it will renegotiate their contracts in light of sion that is contained in the bill is not end the current monopoly that COM- the new competitive choices. It is es- fair. It is not fair because it says that SAT enjoys by statute as the sole re- sential to end the monopoly. I urge my the contracts that were entered into seller of INTELSAT and Inmarsat serv- colleagues to vote against this amend- freely, as the judge said, do not need to ices in the United States. Currently ment. be honored. users of these satellite systems have no Let me just add. I was very pleased It is my understanding from the gen- choice but to go through COMSAT to to see this, a letter from one of the sat- tleman from Louisiana (Mr. TAUZIN), purchase INTELSAT and Inmarsat ellites users, CSX and its subsidiary and I do not purport to be an expert on services. In some cases, such as some Sea-Land, a large maritime shipping the technical nuances of this particular telephone and television services, there company, recounting its use of fresh piece of legislation, but I am informed are few or no choices except to use the look regarding 800 number portability. that in fact these contracts have a INTELSAT and Inmarsat satellites. When fresh look was implemented for term. They are not unlimited. These A recent study estimated that U.S. 800 numbers, CSX saved $4.5 million per parties are not bound by these con- customers would save $1.5 billion over year. CSX wrote the gentleman from tracts in perpetuity. 10 years once monopoly access to Virginia (Mr. BLILEY) stating, ‘‘We In point of fact, the contracts have a INTELSAT and Inmarsat ends. H.R. look forward to using the similar op- term that will end; and at that time, 1872, the bill before us, permits portunity as provided for under H.R. under the contract, as is fair and every COMSAT’s customers to renegotiate 1872 so that we can pay competitive American understands, at that time their contracts once the monopoly is prices, rather than monopoly prices, the parties will have the opportunity ended. Fresh look is an established way for satellite services.’’ to have a fresh look, not legislatively to transition from a monopoly market Any claim that users do not want mandated but mandated by the agree- to a competitive market. The FCC has fresh look is false. All Members should ment of these two parties in their con- applied the fresh look policy before vote against this amendment. It will tract. harm consumers and prevent competi- The sanctity of contracts is critical when new competitive choices were tion from developing. to the free market system in which we made available to customers. It has al- lowed customers to renegotiate long- Mrs. MORELLA. Mr. Chairman, I flourish. The sanctity of contracts is move to strike the requisite number of one of the things, as a lawyer, we learn term contracts entered into when no words. Mr. Chairman, I rise in very to honor from the very beginning, competition existed. Today COMSAT is the sole U.S. re- strong support of the Tauzin amend- which is why it is so important to seller or distributor of INTELSAT and ment. It is fair, it makes sense, and it make sure that a contract was in fact may well save us over a billion dollars; entered into, because once entered Inmarsat services. Each and every user that is, the taxpayers. into, it cannot be abrogated by either of those satellite systems in the United Fresh look really is not fresh look. It party without damages occurring. States has no choice but to enter into is really a fresh theft, as has been stat- Again, that is another reason, Mr. a contract with COMSAT for these Chairman, we ought to adopt the Tau- services. These are long-term con- ed, because it is going to abrogate zin amendment and reject the provi- tracts. The bill will end this monopoly. those contracts that had been willfully sion of the bill. Why? Because these are Thus, it is critical to creating the new signed by an American company and private stockholders, who have in- competitive environment that cus- its customers, I really believe, and oth- vested their money, who are going to tomers be given the opportunity to re- ers have felt the same way, legal au- sustain a loss if these contracts are ab- negotiate, take a fresh look at the thorities, that it is going to subject the rogated; and, if so, we may well subject long-term contracts they entered into U.S. Government to a successful the Government to over a billion dol- when the statutorily created monopoly takings claim. The opponents of COMSAT have said lars in damages I am informed. Think was in force. Without fresh look, these that it has locked up the market with of that, over a billion dollars in dam- customers will be locked into long- long-term contracts and so therefore ages. Why? Because this contract term contracts and denied the benefits the customers should be afforded an op- sought to give relief to parties who vol- of the new competitive choices. Com- portunity unilaterally to breach their untarily entered into a contract and petition will truly be meaningless if all contract to take a fresh look at any who now want a fresh look. customers are locked into long-term contracts. available competitor in the market- b 1415 I know there has been a lot of smoke place. This is not a sound idea. It is Mr. Chairman, we can change the generated about this and how this wrong. Therefore, the Tauzin amend- policy, but we ought to change it pro- would operate as a taking of property. ment will eliminate the unconstitu- spectively. We ought to say we are I do not believe that giving customers tional provisions that would abrogate going to change the rules and when the an opportunity for a fresh look at their COMSAT’s contracts, which are prop- contract is over, you are going to play contracts would result in such a tak- erty, and it would preserve the integ- under these new set of rules. But the ing. This is not a new policy. The FCC rity of COMSAT’s carrier contracts. parties that entered into a contract has applied it successfully in several Those contracts were entered into vol- under a set of rules will play under occasions. untarily by COMSAT and the largest those rules for the term of the con- Moreover, the courts have never ac- international carriers. The government tract. That is elementary, my Dear corded contracts the status of pro- may not nullify the express terms of a Watson, if I can coin a phrase. tected property because contract rights company’s contractual obligations I would hope that this amendment are subject to changes in the law. COM- without compensation. This amend- would pass, that it would pass handily, SAT is a creature of Congress and Con- ment with these provisions makes H2854 CONGRESSIONAL RECORD — HOUSE May 6, 1998 sense, it is appropriate, and it will save comes into play is that the competi- saying there is a monopoly, some say- taxpayers money. tors, the providers, the suppliers and ing there is not a monopoly. Let me Mr. Chairman, I yield to the gen- the customers of COMSAT then get to- again talk in specifics. There are loca- tleman from Louisiana. gether and they renegotiate the con- tions where there is underground cable. Mr. TAUZIN. Mr. Chairman, let me tract, and COMSAT has got to con- For instance, if you want to call from point out that this notion of fresh look stantly reduce rates, reduce rates, re- here to England, you can actually go is already in the law. The notion of duce rates. through an underground cable. So in fresh look is already in the law. It is a As the distinguished gentlewoman that market there is competition. But remedy that already exists for the par- has said and as the gentleman from for a significant part of this market ties. If they think they have a contract Louisiana has said, COMSAT now is there is no competition at all but a that was entered into where they did subject to fresh look. The FCC about a government-granted monopoly that we not really have a choice, like some of week or 10 days ago took a look at this. as the United States Congress granted. these proponents of the bill have point- What did they find? First of all, they Let me talk about abrogating con- ed out, then they can go to the FCC, go found that COMSAT is not a dominant tracts. It is a very serious thing that to court and have that contract abro- carrier. They are a nondominant car- we ought to think about. In the State gated. They can do that today. In fact, rier. of Florida that I represent, there are as I said, PanAmSat tried. PanAmSat The CHAIRMAN. The time of the only two times in the Florida judicial is a private satellite corporation owned gentlewoman from Maryland (Mrs. system that there is a 12-person jury, by Hughes Satellite. They went to MORELLA) has expired. when the death penalty is a possibility court and argued that some of the con- (On request of Mr. DINGELL, and by or when you are going to be taking tracts that COMSAT had signed were unanimous consent, Mrs. MORELLA was someone’s property. If someone has a in fact entitled to a fresh look. The allowed to proceed for 1 additional potential penalty in Florida of life im- court threw them out on summary minute.) prisonment, it is a six-person jury. But judgment. They did not even have a Mrs. MORELLA. Mr. Chairman, I in Florida if we are going to take one trial. The court threw them out on continue to yield to the gentleman. foot of your property, it is a 12-person summary judgment and said, ‘‘There Mr. DINGELL. Mr. Chairman, they jury. are no facts here to indicate that your also did something else. They looked at b contracts ought to be abrogated. In whether or not the Commission should 1430 fact if you signed it, you ought to live utilize this extraordinary remedy of So let me tell my colleagues some- by it and you ought to honor it.’’ fresh look. They said it was not nec- thing. I come from a State where we Why should we in this Congress over- essary. They said it was not proper. take property rights very, very, very turn that court now and say it is okay They said it was not justified. Yet here seriously. This is not an issue about for people to get out of their contracts? we in the Congress, with no hearings, property rights and taking. It is an Did they have other choices? Yes. The with no information, simply with issue of how are we going to implement court so ruled that they actually re- power for prejudice and enormous lob- a new competitive paradigm in tele- jected other choices before signing up bying effort by COMSAT’s competitors communications. And again the facts with COMSAT. Did they sign it will- are going to simply put into place this are that we have done this before. And fully for their own reasons? The court fresh look provision. And we are going for the third time, I am going to men- so ruled. Were there other companies to subject our constituents and the tion what we have done before; that they could have gone to? when AT&T was broken up, the exact In 1996, the FCC ruled that there was taxpayers to billions of dollars in li- same procedure was used. Contracts sufficient competition in the space seg- ability for our stupidity. I thank the gentlewoman for yield- that were in place were allowed to be ment service market and ruled in fact ing. renegotiated because of why and how that ‘‘we find substantial competition Mrs. MORELLA. Mr. Chairman, I those contracts were implemented. in that marketplace with the introduc- agree with the two speakers that just Mr. Chairman, I urge the defeat of tion of satellite cable systems that preceded me on my time, and I urge the amendment and passage of the bill. compete with INTELSAT.’’ The compa- this body to vote for the Tauzin Mr. TAUZIN. Mr. Chairman, will the nies who signed these contracts had gentleman yield? other choices. They rejected them. amendment. Mr. DEUTSCH. Mr. Chairman, I move Mr. DEUTSCH. I yield to the gen- They signed with COMSAT. Now they to strike the requisite number of tleman from Louisiana. would like to get out of them. They words. I think this is a personal record. Mr. TAUZIN. I just want to point out went to court to say, ‘‘Let us out of these contracts.’’ The court threw I do not think I have ever spoken on a to the gentleman that not only can them out on their ear and said, ‘‘You’re bill on the floor of this House three someone call Athens by many other not even entitled to a trial. You’re out times in one afternoon, but I am going providers other than COMSAT, COM- on summary judgment. Your contracts to do that because some of the debate, SAT is not even a dominant carrier to are going to be honored by this court.’’ some of the comments by other Mem- Athens. But not by this Congress? Your con- bers have done it at least three times Mr. DEUTSCH. I said Africa. tract is your word, your bond, you are as well. Mr. TAUZIN. Africa? going to live by it. But not by this Con- Just going through what the bill does Mr. DEUTSCH. Africa. gress? What right do we have under our and the present reality in the market I Mr. TAUZIN. To Africa, to many Constitution to tell some people it is think is critical for everyone to have a countries in Africa. They have okay to get out of your contracts? very keen understanding before they fiberoptic services to many countries When you sign a contract to get some vote. The legislation absolutely pro- that compete with the satellite serv- services for your company, would you vides that people who have entered ices. like it if I told those people who signed into a contract in 2000 would have an Mr. DEUTSCH. As my colleague up with you they can get out whenever ability, a one-time ability to renego- knows, again my understanding is that they want? You would think I am out tiate that contract. on thin routes to Africa they are not of bounds, and I would be. And Con- Let us talk about why people entered classified as nondominant. gress would be out of bounds if we in into those contracts. They entered into Mr. OXLEY. Mr. Chairman, I move to fact abrogated these contracts. I urge those contracts because they had no strike the requisite number of words, my colleagues to adopt this amend- choice. Today if you want to call from and I rise in support of the amendment. ment. Washington, D.C. to Africa, there is Mr. Chairman, while I appreciate the Mr. DINGELL. Mr. Chairman, will only one way to do it, and that is rationale behind the ‘‘fresh look’’ pro- the gentlewoman yield? through COMSAT. I do not know what visions of this bill and I agree that the Mrs. MORELLA. I yield to the gen- definition of monopoly my colleagues privatization we seek must be pro-com- tleman from Michigan. are using, but that is a definition of petitive, it is my view that the abroga- Mr. DINGELL. Mr. Chairman, what monopoly. We keep hearing the fact, tion of private contracts called for by happens every time this provision we have two sides of this debate, some this bill is simply not justified by the May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2855 admittedly worthy goal of accelerating school, but Congress would be doing is a situation that we ought to reject the transition to a more competitive something, according to this report, this amendment and stay with the marketplace. It is not appropriate in that is unprecedented in terms of its good work of the chairman of the com- my opinion for this Congress to allow sweep, in terms of how many contracts mittee. corporations to simply walk away from we would abrogate and declare illegal Mr. BLILEY. Mr. Chairman, will the legal contracts because we believe that when the courts have upheld those con- gentleman yield? there may have been better deals for tracts up until this date. Mr. HASTERT. I yield to the gen- them in the offing. With privatization I want to thank the vice chairman tleman from Virginia. the transition to a competitive market for his excellent statement and encour- Mr. BLILEY. Mr. Chairman, I want will come soon enough, and these con- age him in support of this amendment. to correct a statement the gentleman tracts will expire and be renegotiated Mr. OXLEY. Mr. Chairman, I thank from Michigan in his previous state- in the normal course of business with- the gentleman from Louisiana for his ment said, that we had no hearings on out the kind of congressional inter- comments and would simply point out ‘‘fresh look.’’ We had a hearing on Sep- ference in the process. that in this kind of area, we ought to tember 30, 1997, in the Subcommittee My sense is that we should go very, walk very, very softly before we con- on Telecommunications Trade, and very slowly when Congress is dealing sider these kinds of abrogation of con- Consumer Protection, and indeed Mr. with the issue of abrogating contracts. tracts. This is very serious business, Jack Gleason from NTIA testified for This is a very serious issue. Those of us and I would caution that, in fact, the the administration, testified in favor of who studied contracts in law school marketplace is working, that those ‘‘fresh look.’’ Now let us talk about ‘‘fresh look.’’ learned, probably on the first day, that telecommunication companies out ‘‘Fresh look’’ gives a customer the contracts have a particularly meaning- there will be able to renegotiate, will choice to renegotiate that contract ful role in our business world and that be able to sign new contracts in the once they have alternative providers to those contracts and particularly the due course of business. We ought not to choose from. Now sure, AT&T has a breaking of those contracts should be interfere with that right of contract. It cable, Sprint has a cable, MCI has a taken very, very seriously and with a would be a serious mistake on the part cable, but they have to sign up with great deal of caution, particularly by of this Congress. Mr. HASTERT. Mr. Chairman, I COMSAT to get to INTELSAT because the national legislative body, the Con- of redundancy. If anything happens to move to strike the requisite number of gress of the United States. their cable, they have to have a We should allow the marketplace to words. backup, and the FCC has used ‘‘fresh work its will in due course without re- Mr. Chairman, as my colleagues look’’ on several occasions, most re- sorting to heavy-handed tactics. After know, one of the things, I just recently cently when implementing the Tele- all, the bill is premised on the idea came back from a trip to Chile. Now we think Chile is a Third World communication Act of 1996, and no one that competition will cause market ever thought of taking suit against participants to realize new efficiencies nation stuck down the end of the West- ern Hemisphere. Mr. Chairman, one of them when they did. and alternate ways of doing business. We had ‘‘fresh look’’ occurring annu- the interesting things was we went to The incentives are already there for ally in one version of this bill, but to make a phone call in Chile. If we want- telecommunication firms to seek out accommodate the concerns of the gen- ed to call the United States, we could the most efficient access to inter- tleman from Louisiana (Mr. TAUZIN) we call the United States cheaper from national communications. And while it revised the ‘‘fresh look’’ provision to may be tempting, Mr. Chairman, to try Chile then we could from the United tie it to the date of direct access. Di- to jump start the competitive process States back to Chile. rect access means allowing, for the Now we always thought we had the through these ‘‘fresh look’’ measures, I first time, competition for access to best competition, the best system, the think we are getting a little ahead of INTELSAT and Inmarsat in the U.S., best service and the cheapest rates. If ourselves. We should allow the private and if there is not the opportunity to sector to work its will and without ab- we wanted to call Japan from Chile, we take advantage of it, direct access does rogating the privacy of these con- have the best rates from Chile to Japan not mean much. ‘‘Fresh look’’ will tracts. instead of Japan to Chile. If we wanted allow customers locked into those Mr. Chairman, we can argue as to to call Argentina, which is right across long-term take-or-pay contracts, when whether or not free agency has ruined the mountains maybe 45 miles away they had no choice if they wanted to baseball, but the truth is that tele- from Santiago into Argentina, rates play in the game but to sign those con- communication companies today are were cheaper if we called from Chile tracts, the advantage of new competi- already free agents without ‘‘fresh into Argentina. Why? Because there tors. And COMSAT will have the oppor- look.’’ are eight telephone companies, all with tunity to renegotiate with them, and I I encourage support for the amend- individual contracts. If we sign up for suspect that will keep most of them. ment to remove these provisions. one phone company and somebody got It is the job of elected representa- Mr. TAUZIN. Mr. Chairman, will the a better price, we can arbitrate that tives, not the FCC, to make sure that gentleman yield? contract and we can get with the next this happens. Moreover, the FCC may Mr. OXLEY. I yield to the gentleman company. Why? Because they have the decide it is not worth fighting COM- from Louisiana. ability to hook up with those sat- SAT in court, and since COMSAT sues Mr. TAUZIN. Mr. Chairman, I just ellites, there is competition up there, at the drop of a hat, they may be able wanted to congratulate the vice chair- and they go for the best price. to fend it off. It is up to the FCC to im- man of the Subcommittee on Tele- Now we may want to protect some plement it, but we need to tell them to communications, Trade, and Consumer entities that made contracts before do so. Protection for his excellent statement this system changed, but the system Mr. TAUZIN. Mr. Chairman, will the just now, not only in support of the has changed. Competition is there. The gentleman yield? motion that will not abrogate contract world is opening up. And all we are Mr. HASTERT. I yield to the gen- rights, indeed that is something we saying is those companies that were tleman from Louisiana and really con- learned in law school, but to point out tied into the old contracts under the gratulate him because, as my col- that the opinion of the Washington old system before the universe leagues know, together with the chair- Legal Foundation went on to say that changed, let them step back, let them man and this gentleman, he brought an if we did that in this bill, that would take a fresh look, let them renegotiate, important issue before us, something amount to the most sweeping congres- and let consumers win, because when that needs to be moved forward and sional abrogation of private contract we come down to it, ‘‘fresh look’’ is a talked, and I think we have to do it rights of a single company without any simple concept. with a balance, and I would be happy to judicial determination of wrongdoing. I say let consumers, that is right, hear what the gentleman has to say. That is unprecedented in U.S. his- consumers, negotiate their contracts Mr. TAUZIN. Mr. Chairman, I wanted tory. Not only are we doing something with COMSAT once competition is per- to point out the gentleman from Michi- that I think we learned is wrong in law mitted. It is a commonsense system, it gan merely said that we did not have H2856 CONGRESSIONAL RECORD — HOUSE May 6, 1998 hearings on these contracts that we are cally had signed contracts for 6, 7, 8 or Give them a fresh look, let them go abrogating, not on the issue of ‘‘fresh more years the opportunity to renego- out. If NBC or CNN or any other com- look’’; and secondly, to point out when tiate their terms or switch to new com- pany in the America that buys their the administration did testify on petitors in the marketplace without telecommunications services wholesale ‘‘fresh look,’’ here is what they said. termination penalties, because there who wants to get a fresh look, why The CHAIRMAN. The time of the was now competition in this market- should they not be allowed to get the gentleman from Illinois (Mr. HASTERT) place. And maybe something that is benefit of this policy? has expired. even more familiar or typical in ordi- The CHAIRMAN. The time of the (On request of Mr. TAUZIN, and by nary American life; that is, when peo- gentleman from Massachusetts (Mr. unanimous consent, Mr. HASTERT was ple dial 1–800 The Card for American MARKEY) has expired. allowed to proceed for 1 additional Express or 1–800 Flowers, and a cus- (By unanimous consent, Mr. MARKEY minute.) tomer has ever dealt with them over was allowed to proceed for 1 additional Mr. TAUZIN. Mr. Chairman, here is the years, they might have said, well, minute.) what the administration said. It said that is a good service; but what if I Mr. MARKEY. Mr. Chairman, this is that even if a fresh look at INTELSAT switch from AT&T over to MCI? Well, a one-time-only, free-agency ability. and Inmarsat services, ordered hypo- what we said through the FCC was they Mr. Chairman, for many years, major thetically, were to allow the signatures could take their number with them. league baseball did not allow players to and direct users to get a better deal, it There was portability. They were not go out and contract with other clubs. is unlikely that consumers would bene- going to be locked into AT&T. We had Players were locked in. They might fit; and they said for the same reason to create some means by which the have signed a contract with the team that competition already exists at newer companies could compete they were with, like the Red Sox or the ‘‘fresh look’’ at INTELSAT and against the old monopoly. Yankees, in the 1930s and 1940s, the Inmarsat contracts, in those countries, Now that is really intended to open 1950s or the 1960s, but they were tied to is unlikely to benefit consumers sig- up opportunities for dozens, for hun- them. A player could not sign with an- nificantly. It seems to me they were dreds of new companies to get in and to other team. But when free agency came testifying against the use of ‘‘fresh compete, to break down the old models. around, you were free to look around; look,’’ not for it. We are not the Soviet Union, we are then a player signed a new contract Mr. MARKEY. Mr. Chairman, I move not Japan, we are not Germany. We and was bound to that contract. We have to have one-time-only free to strike the requisite number of wanted to be number one, and we want- agency for all of these companies in words, and I rise in opposition to the ed dozens, hundreds of companies out America that have been tied into the amendment. into these fields. monopoly. Then we can say to the rest Mr. Chairman, this is a very impor- b 1445 of the world, tear down those barriers tant amendment. We have to under- That is what is making us special in to the entry of American companies stand that the whole field of tele- the world right now. into free competition across the globe. communications has been revolution- As a matter of fact, if we look back This is the other wall that has been up ized since the early 1980s. We all oper- at the 1980s, after the tearing down of to Americans going across the globe. ated in the United States and around the Berlin Wall, the breakup of AT&T The Berlin Wall came down; so too the globe under the presumption that a might be looked back at historically as must these telecommunications bar- monopoly was natural, that there was maybe the greatest and most impor- riers, because that is the area where only one place we could go for every- tant decision that was made in our America has to be number one if we are thing that we expect as services in the country, because we were opening up going to get the benefits of the post- telecommunications field. All of that opportunities for customers to have Cold War era. has changed since the early 1980s. different choices and for more competi- Mr. STEARNS. Mr. Chairman, I move For example, in 1982 when AT&T was tors to get into the marketplace. And to strike the requisite number of broken up, it was the largest company the core, central part of looking at this words. not only in the United States but in ‘‘fresh look’’ issue is that because Mr. Chairman, not withstanding all the world. We had one telephone com- COMSAT has been a monopoly, that of the grand rhetoric that my col- pany. There was no Bell South, there when the monopoly goes away, the cus- league, the gentleman from Massachu- was no NYNEX. MCI and Sprint were tomers should be freed up to look for setts (Mr. MARKEY), just gave us, this tiny little companies. No U.S. West, no better opportunities, once. Take their issue comes down to perhaps two major Southwestern Bell; it did not exist. We one-time-only opportunity to look points. had one company, one-stop shopping. around, shop around. Do we believe that COMSAT is today We all thought it was a natural monop- However, here is what we know: that monopolizing the industry? Mr. Chair- oly. because competitors to COMSAT have man, I want to include for the RECORD When the Justice Department broke never had direct access to INTELSAT, the FCC ruling of April 24, 1998 that it up even as Congress was beginning to according to the Federal Communica- says, ‘‘The commission declares COM- move to break it up, we said to every tions Commission, there has been a 68 SAT nondominant in competitive mar- customer in America, part of that con- percent markup in the price charged by kets.’’ The commission says, it ‘‘grant- sent decree, we can choose another INTELSAT, 68 percent. Now, when di- ed the request of COMSAT Corporation long distance telephone company if we rect access is allowed, should not these for a reclassification as a nondominant want, we can have a fresh look. We do customers who have been locked into carrier in five product markets, which not have to be tied into any long-term the old monopoly have the freedom of account for 85 percent of COMSAT’s contracts we had with AT&T. We are going out and getting the best deal in INTELSAT revenues.’’ starting a new world, one in which we the marketplace? Do we not want Now, will my colleague from Massa- are encouraging competition in the every company in the United States to chusetts agree that what is being done marketplace. have the lowest possible cost in all of here is the equivalent of Congress Now this phenomenon manifests their telecommunications services, so going back and looking at Microsoft itself over and over again as we break whatever they do inside of their com- and saying, oh, Microsoft, you are a down these monopolies. It happens in pany is much more competitive as they monopoly, and then mandating that all kinds of service areas. And the FCC sell their product around the world. any contract that Microsoft would sign has taken the precaution where nec- That is what this is all about, after would be open to renegotiation. I do essary in other areas in order to ac- all, lower energy prices, lower elec- not think Members of the Congress complish this goal. For example, when tricity prices, lower telecommuni- would agree to do that. I believe no the FCC in 1992 ordered expanded inter- cations prices; it is the cost of hun- United States court would allow the connection rules and allowed local dreds of thousands of companies in abrogation of Microsoft’s private con- telephone competitors greater ability America in terms of the product they tracts, and I believe the U.S. courts to compete for special access services, are trying to make. We are trying to will not let stand the abrogation of the FCC allowed customers who typi- lower the cost here. COMSAT’s private contracts. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2857 We took an oath. When we came into incentive-based regulation plan to be adopt- Mongola, Myanmar, Tajikistan, Congress, we took an oath to abide by ed should (a) enable users on non-competi- Turkmenistan, and Uzbekistan. the Constitution. We are talking about tive routes to benefit from competitive South Asia: Bangladesh, India, Maldives, rates; (b) remain in effect indefinitely; and Nepal, Pakistan, and Sri Lanka. the fifth amendment here. (c) allow users to benefit from reduced rates Far East: Brunei, Cambodia, Laos, Malay- I can show my colleagues example due to increases in efficiency and productiv- sia, North Korea, South Korea, Thailand, and after example where COMSAT is not ity. Comsat will be subject to alternative in- Vietnam. the monopoly that my good friend from centive-based regulation once such regula- Pacific Rim: American Samoa, Fiji, Massachusetts portrays it to be. But tion is adopted in this proceeding. French Polynesia, Macau, Marshall Islands, let me say in all deference now to the Finally, the Commission found that Micronesia, Midway Islands, Nauru, New Cal- Comsat’s continued dominance in the provi- edonia, New Zealand, Palau, Papua New chairman, I am on his bill, his original Guinea, Tonga, Vanatu, and Western Samoa. bill. I think he is making a courageous sion of switched voice, private line and occa- sional-use video services to non-competitive Mr. TAUZIN. Mr. Chairman, will the stand to deregulate an industry that markets was an insufficient basis for con- gentleman yield? should have been deregulated some tinuing to require structural separation be- Mr. STEARNS. I yield to the gen- time ago. But notwithstanding that, tween Comsat’s INTELSAT services and tleman from Louisiana. this bill can be improved by the Tauzin other activities. It concluded that the costs Mr. TAUZIN. I thank my friend for amendment, and that is why I stand in of imposing such a requirement would exceed yielding and I thank him for his com- support of it. any potential benefits to competition. The ments. Mr. Chairman, I include for the Commission granted Comsat’s request for the elimination of structural separation for Mr. Chairman, let me say too, this is RECORD the FCC ruling of April 24, 1998: its INTELSAT services because structural not about whether we want to break up COMMISSION DECLARES COMSAT NON- separation is no longer necessary to safe- the old monopoly of INTELSAT and DOMINANT IN COMPETITIVE MARKETS guard Comsat’s competitors from Comsat Inmarsat, these multination, govern- The Commission has granted the request of leveraging its monopoly jurisdictional serv- mentally owned cartels. This is not Comsat Corporation for reclassification as a ices to gain an advantage in competitive about that. We all agree that that non-dominant common carrier in five prod- markets in which it is operating. ought to happen. This is not about uct markets, which account for approxi- The 63 countries in which Comsat will con- that. mately 85% of Comsat’s INTELSAT reve- tinue to be considered dominant for switched This is simply about whether we in nues. Specifically, the Commission found voice and private line services are: Algeria, Comsat non-dominant in the provision of American Samoa, Angola, Armenia, Azer- Congress are going to order the abroga- INTELSAT switched voice, private line, and baijan, Benin, Bolivia, Bosnia & tion of contracts to an American com- occasional-use video services to markets Herzegovina, Botswana, Burkina, Cameroon, pany that have been tested in court that it determined to be competitive. It also Cape Verde, Central African Republic, Chad, and found to be voluntarily entered found Comsat non-dominant in the provision Congo, Cote d’Ivoire, Estonia, Ethiopia, into when the people who entered those of full-time video and earth station services French Polynesia, Gabon, Ghana, Guinea, contracts had other options. in all markets. In the markets where Comsat Iran, Iraq, Jordan, Kenya, Lesotho, Libya, There are several questions we ought has been reclassified as non-dominant, Com- Lithuania, Malawi, Mali, Maritime-Atlantic, to ask: Did they have other options? sat will be allowed to file tariffs on one day’s Maritime-Pacific, Mauritania, Mauritius, The answer is yes. The court found in notice, without economic cost support, in Federated States of Micronesia, Midway Atoll, Moldova, Mozambique, Namibia, summary judgment, they could have the same form as filed by other non-domi- signed with PanAmSat, they could nant common carriers, and the tariffs will be Nauru, New Caledonia, Nicaragua, Niger, presumed lawful. By virtue of finding Com- Northern Mariana Islands, Pacific Islands have signed with Loral, Teledesic, Co- sat non-dominant in these markets, the (Palau), Paraguay, Rwanda, Saint Helena, lumbia, Meridian, ELLIPSO. They Commission is eliminating rate of return Senegal, Sierra Leone, Somalia, Sudan, could have signed with many cable regulation in these markets. Suriname, Swaziland, Tanzania, Togo, companies that offer fiberoptic cable The Commission also indicated it expedi- Tonga, Turks and Caicos Islands, Uganda, across the Atlantic. They chose to sign tiously would initiate a proceeding to ex- Western Samoa, Zaire, and Zambia. with COMSAT voluntarily. plore the legal, economic and policy implica- The 142 countries in which Comsat will The second question that we should continue to be considered dominant for occa- tions of enabling users to have direct access answer is, is, in fact, the ‘‘fresh look’’ to the INTELSAT system. Approximately 94 sional-use video service are: South America: Columbia, Grench Guiana, applicable to these contracts? The an- other countries permit direct access to the swer is yes, it is already the law. Any- INTELSAT system. Guyana, Paraguay, Suriname, and Trinidad The Commission denied Comsat’s non-dom- & Tobago. body can go test them in court. Central America/Caribbean: Anguilla, An- inant reclassification request with respect to The third question we should answer tigua, Aruba, Bahamas, Belize, Bermuda, switched voice, private line and occasional- is, once they have been tested in court British Virgin Islands, Cayman Islands, and use video services to non-competitive mar- and found to be valid, voluntary con- Chagos Archipelago, Costa Rica, Dominica, kets where it found that Comsat remains tracts, should we in Congress sub- Dominican Republic, El Salvador, Gibraltar, dominant. It also denied Comsat’s request Grenada, Guadeloupe, Guatemala, Haiti, stitute our judgments for the court’s that the Commission forbear under Section Honduras, Martinique, Montserrat, Nether- without a hearing on these contracts 10 of the Communications Act from enforc- lands Antilles, Panama, Saint Kitts & Nevis, even, and declare that they can be ab- ing the Commission’s dominant common car- Saint Lucia, Saint Vincent, and Turks & rogated? I suggest the gentleman put rier tariff rules in non-competitive markets. Caicos. his finger on it. The Commission considered but rejected Western Europe: Cyprus, Greenland, Ice- Comsat’s three-year ‘‘price cap’’ and ‘‘uni- We took an oath. If there is some- land, Malta, and Norway. thing that makes us special, I say to form pricing’’ proposals for these markets, Eastern Europe: Albania, Belarus, Bul- and found that Comsat did not satisfy the garia, Czech Republic, Estonia, Lithuania, the gentleman from Massachusetts, it statutory requirements for forbearance relief Macedonia, Moldova, Russia, Serbia, and is that we took an oath to live by a under the circumstances. The Commission Slovenia. Constitution that sets the rules for all indicated, however, that it would favorably Middle East: Bahrain, Iran, Israel, Jordan, of us, and the rules are that when one consider in its analysis of any forbearance Kuwait, Lebanon, Oman, Qatar, Saudi Ara- signs a contract voluntarily, one has request a commitment by Comsat to (a) bia, Syria, United Arab Emirates, and other options, one was not coerced, allow U.S. carriers and users to obtain Level- Yemen. then that person ought to live by that 3 direct access to the INTELSAT system and Africa: Algeria, Angola, Benin, Botswana, (b) make an appropriate waiver of its Burkina Faso, Burundi, Cameroon, Cape contract. It is called honor. And we in INTELSAT derived immunity from suit and Verde, Central African Republic, Chad, Congress ought to have enough honor legal process. Such actions would promote Congo, Dem Rep Congo, Djibouti, Egypt, Eq. to let the contracts signed in America competitive market conditions in the Guinea, Ethiopia, Gabon, Gambia, Ghana, be honored by the parties who signed INTELSAT markets in which Comsat re- Guinea, Guinea-Bissau, Ivory Coast, Kenya, them and not abrogate those contracts mains dominant. Lesotho, Liberia, Libya, Madagascar, Ma- by congressional fiat. That is what this The Commission also indicated that it will lawi, Mali, Mauritania, Mauritius, Morocco, is all about, our oath under the Con- consider replacing rate of return regulation Mozambique, Namibia, Niger, Nigeria, Rwan- stitution, and the honor of the con- for Comsat’s dominant markets with an al- da, Saint Helena, Sao Tome, Senegal, Sierra tracts and the parties who signed ternative form of incentive-based regulation Leone, Somalia, South Africa, Sudan, Swazi- and, as part of its reclassification decision, land, Tanzania, Togo, Tunisia, Uganda, them, voluntarily, tested in court, the Commission issued a Notice of Proposed Zaire, Zambia, and Zimbabwe. proven in court to be voluntary, wheth- Rulemaking seeking public comment on its Central Asia: Afghanistan, Armenia, Azer- er or not those contracts will be hon- tentative conclusions that any alternative baijan, Georgia, Kazakhstan, Kyrgystan, ored. H2858 CONGRESSIONAL RECORD — HOUSE May 6, 1998 This is a good bill, but this amend- vatize a communications industry in Clayton Jackson (IL) Pitts ment improves a good bill by taking other countries by holding a gun to the Clement Jackson-Lee Pomeroy Coble (TX) Porter out a feature that I think is horrible, head of an American company, a com- Coburn Jefferson Portman and my colleagues ought to think is pany that negotiated these contracts, Combest Jenkins Poshard horrible. No Member in Congress ought that made business decisions based on Cook Johnson (CT) Price (NC) to go down to this floor today and vote requests of this Federal Government. Cooksey Johnson (WI) Pryce (OH) Costello Kanjorski Quinn to abrogate private contracts that have We asked them to do this. Imposing Cox Kaptur Rahall already been tested in court and proven harsh sanctions on a U.S. company in Coyne Kasich Ramstad to be honest and honorable and vol- order to get other countries to do what Cramer Kelly Rangel untary, and if my colleagues vote to Crane Kennedy (MA) Regula we want them to do does not make any Cunningham Kennedy (RI) Reyes abrogate contracts, I suggest that my sense at all. Danner Kennelly Riley colleagues have violated their oath to I would go back to my comments a Davis (FL) Kildee Rodriguez uphold the Constitution. little earlier today about Cleavon Lit- Davis (VA) Kilpatrick Roemer Mr. STEARNS. Mr. Chairman, let me Deal Kim Rogan tle holding a gun to himself in the DeFazio Kind (WI) Rogers conclude by saying, I think if we listen movie ‘‘Blazing Saddles.’’ That is what DeGette King (NY) Rohrabacher to this debate, we will realize that we are doing. We are holding a gun to Delahunt Kingston Ros-Lehtinen COMSAT faces significant competition, the head of an American company and DeLauro Kleczka Rothman competition from underseas fiberoptic Deutsch Klug Roukema telling the rest of the world, if you do Diaz-Balart Knollenberg Roybal-Allard lines for voice, video and data service. not do what we want you to do, we are Dickey Kolbe Royce In fact, many argue that fiberoptic going to pull the trigger. Dicks LaFalce Ryun lines are a more productive infrastruc- ‘‘Fresh look’’ is a harsh sanction on a Dixon LaHood Salmon ture than satellites because of their re- Doggett Lampson Sanchez U.S. company. I say that we should Dooley Lantos Sanders liability and because of their greater support the Tauzin amendment and Dreier Largent Sanford capacity. strike ‘‘fresh look’’ from this bill. Duncan Latham Saxton Dunn LaTourette Scarborough So after making these points, I think The CHAIRMAN (Mr. SNOWBARGER). the Members have to decide if they Edwards Leach Schaffer, Bob The question is on the amendment of- Ehlers Lee Schumer think COMSAT is a monopoly, that is fered by the gentleman from Louisiana Ehrlich Lewis (CA) Scott fine, but many of us have researched (Mr. TAUZIN). Engel Lewis (GA) Serrano English Lewis (KY) this and we do not think COMSAT is a The question was taken; and the Shadegg monopoly any longer, and so that is Ensign Lipinski Shaw Chairman announced that the noes ap- Eshoo LoBiondo why I support the Tauzin amendment. Shays peared to have it. Etheridge Lofgren Sherman Mr. KLINK. Mr. Chairman, I move to Evans Lowey Shimkus strike the requisite number of words. RECORDED VOTE Everett Lucas Shuster Mr. Chairman, I rise really in support Mr. TAUZIN. Mr. Chairman, I de- Ewing Luther Sisisky Farr Maloney (CT) of the Tauzin amendment. If we go mand a recorded vote. Skeen Fattah Maloney (NY) Skelton back to 1984, at that point the market- A recorded vote was ordered. Fawell Manton Slaughter place opened up. If we wanted to go The vote was taken by electronic de- Fazio Manzullo Smith (NJ) pre-1984 and say we really need to take vice, and there were—ayes 80, noes 339, Filner Markey Smith (OR) Foley Matsui a fresh look, then perhaps this bill, as answered ‘‘present’’ 2, not voting 11, as Smith (TX) Forbes McCarthy (MO) Smith, Adam written, would make some sense. follows: Fowler McCarthy (NY) Snyder But the point is that in 1984, com- [Roll No. 128] Fox McCollum Solomon petition was arrived at. Other sat- Frank (MA) McDade Souder AYES—80 Franks (NJ) McDermott ellites were out there, there were other Spence Baker Furse Obey Frelinghuysen McGovern Spratt Frost opportunities. So the concept of ‘‘fresh Barcia Gekas Oxley McHale Stabenow Gallegly McHugh look’’ may make sense in some situa- Barrett (NE) Gilchrest Pascrell Stark Ganske McIntosh Bartlett Hall (TX) Peterson (MN) Stenholm tions, but it does not make sense in Gejdenson McIntyre Berry Hamilton Petri Stokes 1998 in this instance. Gephardt McKeon Bilirakis Hansen Pombo Strickland Gibbons McKinney The idea that COMSAT should now Boehner Horn Redmond Stump Gillmor Meehan be forced to renegotiate its contracts Bonior Hoyer Rivers Stupak Gilman Meek (FL) Boucher John Rush Sununu might make sense if COMSAT were a Goode Metcalf Brady Johnson, E. B. Sabo Talent true monopoly, but as some have spo- Goodlatte Mica Brown (OH) Johnson, Sam Sandlin Tanner Goodling Millender- ken before today, and I would like to Cannon Jones Schaefer, Dan Tauscher Gordon McDonald add to it, they are not a monopoly. In Chambliss Klink Sensenbrenner Taylor (MS) Clyburn Kucinich Sessions Goss Miller (CA) fact, the FCC has declared COMSAT is Graham Miller (FL) Taylor (NC) Collins Lazio Smith (MI) Thomas a nondominant carrier in 85 percent of Condit Levin Smith, Linda Granger Minge Thornberry Conyers Linder Snowbarger Green Moakley the business they do. Furthermore, Thune Crapo Livingston Stearns Greenwood Mollohan there are a lot of competitors to Thurman Cubin Martinez Tauzin Gutierrez Moran (KS) Tiahrt INTELSAT satellites. COMSAT now Cummings Mascara Thompson Gutknecht Moran (VA) Tierney carries 21 percent of the voice traffic. Davis (IL) McCrery Towns Hall (OH) Murtha DeLay McInnis Traficant Harman Myrick Torres That is down from 70 percent just a few Turner years ago, and it does not qualify as a Dingell Meeks (NY) Upton Hastert Nadler Doolittle Menendez Watt (NC) Hastings (WA) Neal Velazquez monopoly. In video, COMSAT has only Doyle Mink Wynn Hayworth Nethercutt Vento 42 percent of the market share. Again, Emerson Morella Young (AK) Hefley Ney Visclosky hardly monopolistic when, a few years Ford Nussle Hefner Northup Walsh Herger Norwood Wamp ago, they had almost 90 percent of the NOES—339 Hill Oberstar Waters video marketplace. Abercrombie Bentsen Brown (FL) Hilleary Olver Watkins In addition, if we were to require Ackerman Bereuter Bryant Hilliard Ortiz Watts (OK) COMSAT to reopen all of its contracts, Aderholt Berman Bunning Hinchey Owens Waxman Weldon (FL) contracts that were legally negotiated Allen Bilbray Burr Hinojosa Packard Andrews Bishop Burton Hobson Pallone Weldon (PA) in good faith, remember, we are then Archer Blagojevich Buyer Hoekstra Pappas Weller opening the Federal Government up to Armey Bliley Callahan Holden Parker Wexler what I think are substantial damages. Bachus Blumenauer Calvert Hooley Pastor Weygand Baesler Blunt Camp Hostettler Paul White Now, do we want to send this bill be- Baldacci Boehlert Campbell Houghton Paxon Whitfield fore the taxpayers in our districts? Do Ballenger Bonilla Canady Hulshof Payne Wicker we want to make them liable for the Barr Bono Capps Hunter Pease Wise decision that we make here today? We Barrett (WI) Borski Castle Hutchinson Pelosi Wolf Barton Boswell Chabot Hyde Peterson (PA) Woolsey should not try to privatize an inter- Bass Boyd Chenoweth Inglis Pickering Yates national body, we should not try to pri- Becerra Brown (CA) Clay Istook Pickett Young (FL) May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2859 ANSWERED ‘‘PRESENT’’—2 The SPEAKER pro tempore. The McGovern Poshard Snowbarger McHale Price (NC) Snyder Cardin Sawyer question is on the passage of the bill. McHugh Pryce (OH) Solomon NOT VOTING—11 The question was taken; and the McInnis Quinn Souder McIntosh Rahall Spence Bateman Gonzalez Radanovich Speaker pro tempore announced that the ayes appeared to have it. McIntyre Ramstad Spratt Carson Hastings (FL) Riggs McKeon Rangel Stabenow Christensen McNulty Skaggs RECORDED VOTE McKinney Redmond Stark Fossella Neumann Mr. BLILEY. Mr. Speaker, I demand Meehan Regula Stearns b 1518 Meek (FL) Reyes Stenholm a recorded vote. Meeks (NY) Riggs Stokes Messrs. CLAY, SPRATT, A recorded vote was ordered. Metcalf Riley Strickland GALLEGLY, WATKINS and STOKES, The vote was taken by electronic de- Mica Rivers Stump and Mrs. CLAYTON and Mrs. MYRICK Millender- Rodriguez Stupak vice, and there were—ayes 403, noes 16, McDonald Roemer Sununu changed their vote from ‘‘aye’’ to ‘‘no.’’ answered ‘‘present’’ 2, not voting 11, as Miller (CA) Rogan Talent Mr. YOUNG of Alaska changed his follows: Miller (FL) Rogers Tanner vote from ‘‘no’’ to ‘‘aye.’’ Minge Rohrabacher Tauscher So the amendment was rejected. [Roll No. 129] Mink Ros-Lehtinen Tauzin AYES—403 Moakley Rothman Taylor (NC) The result of the vote was announced Mollohan Roukema Thomas as above recorded. Abercrombie Davis (FL) Hilleary Moran (KS) Roybal-Allard Thompson Ackerman Davis (IL) Hilliard PERSONAL EXPLANATION Moran (VA) Royce Thornberry Aderholt Davis (VA) Hinchey Mr. RIGGS. Mr. Chairman, on Rollcall No.'s Murtha Rush Thune Allen Deal Hinojosa Myrick Ryun Thurman 127 and 128 I was unavoidably detained on Andrews DeFazio Hobson Nadler Sabo Tiahrt other congressional business and unable to be Archer DeGette Hoekstra Neal Salmon Tierney present to vote. Had I been present, I would Armey Delahunt Holden Nethercutt Sanchez Torres Bachus DeLauro Hooley Ney Sanders Towns have voted ``no'' on both rollcall votes. Baesler DeLay Horn Northup Sandlin Traficant Mr. BLILEY. Mr. Chairman, I move Baker Deutsch Hostettler Norwood Sanford Turner to strike the last word. Baldacci Diaz-Balart Houghton Nussle Saxton Upton Mr. Chairman, I want to thank the Ballenger Dickey Hulshof Obey Scarborough Velazquez Barcia Dicks Hunter Members for the debate. I want to Olver Schaefer, Dan Vento Barr Dixon Hutchinson Ortiz Schaffer, Bob Visclosky thank the Members for their support of Barrett (NE) Doggett Hyde Owens Schumer Walsh the bill. I particularly want to thank Barrett (WI) Dooley Inglis Oxley Scott Wamp the gentleman from Massachusetts Bartlett Doolittle Istook Packard Sensenbrenner Waters Barton Doyle Jackson (IL) Pallone Serrano Watkins (Mr. MARKEY), the gentleman from Bass Dreier Jackson-Lee Pappas Sessions Watt (NC) Louisiana (Mr. TAUZIN), and the others Becerra Duncan (TX) Parker Shadegg Watts (OK) who took part in the debate. Bentsen Dunn Jefferson Pastor Shaw Waxman I would also especially like to thank Bereuter Edwards Jenkins Paul Shays Weldon (FL) Berman Ehlers Johnson (CT) my satellite team who labored very Paxon Sherman Weldon (PA) Bilbray Ehrlich Johnson (WI) Payne Shimkus Weller hard to open up the schools: Patricia Bilirakis Emerson Johnson, E. B. Pease Shuster Wexler Paoletta, Michael O’Reilly, Cliff Bishop Engel Johnson, Sam Pelosi Sisisky Weygand Blagojevich English Jones Peterson (PA) Skeen White Riccio, and Ed Hearst. Bliley Ensign Kanjorski The CHAIRMAN. Are there other Petri Skelton Whitfield Blumenauer Eshoo Kaptur Pickering Slaughter Wicker amendments? Blunt Etheridge Kasich Pickett Smith (MI) Wise If not, the question is on the commit- Boehlert Evans Kelly Pitts Smith (NJ) Wolf tee amendment in the nature of a sub- Boehner Everett Kennedy (MA) Pombo Smith (OR) Woolsey Bonilla Ewing Kennedy (RI) stitute, as amended. Pomeroy Smith (TX) Yates Bonior Farr Kennelly Porter Smith, Adam Young (AK) The committee amendment in the Bono Fattah Kildee Portman Smith, Linda Young (FL) nature of a substitute, as amended, was Borski Fawell Kilpatrick agreed to. Boswell Fazio Kim NOES—16 Boucher Filner Kind (WI) Berry Klink Pascrell The CHAIRMAN. Under the rule, the Boyd Foley King (NY) Committee rises. Conyers Kucinich Peterson (MN) Brady Forbes Kingston Dingell Martinez Taylor (MS) Accordingly, the Committee rose; Brown (CA) Ford Kleczka Hamilton Menendez Wynn and the Speaker pro tempore (Mr. Brown (FL) Fowler Klug Hoyer Morella Brown (OH) Fox Knollenberg John Oberstar EWING) having resumed the chair, Mr. Bryant Frank (MA) Kolbe SNOWBARGER, Chairman of the Commit- Bunning Franks (NJ) LaFalce ANSWERED ‘‘PRESENT’’—2 Burr Frelinghuysen LaHood tee of the Whole House on the State of Cardin Sawyer the Union, reported that that Commit- Burton Frost Lampson Buyer Furse Lantos NOT VOTING—11 tee, having had under consideration Callahan Gallegly Largent the bill (H.R. 1872) to amend the Com- Calvert Ganske Latham Bateman Fossella Neumann munications Satellite Act of 1962 to Camp Gejdenson LaTourette Carson Gonzalez Radanovich Campbell Gekas Lazio Chenoweth Hastings (FL) Skaggs promote competition and privatization Canady Gephardt Leach Christensen McNulty in satellite communications, and for Cannon Gibbons Lee other purposes, pursuant to House Res- Capps Gilchrest Levin b 1542 olution 419, he reported the bill back to Castle Gillmor Lewis (CA) Chabot Gilman Lewis (GA) So the bill was passed. the House with an amendment adopted Chambliss Goode Lewis (KY) The result of the vote was announced by the Committee of the Whole. Clay Goodlatte Linder as above recorded. The SPEAKER pro tempore. Under Clayton Goodling Lipinski A motion to reconsider was laid on the rule, the previous question is or- Clement Gordon Livingston Clyburn Goss LoBiondo the table. dered. Coble Graham Lofgren f Is a separate vote demanded on any Coburn Granger Lowey Collins Green Lucas amendment to the committee amend- GENERAL LEAVE ment in the nature of a substitute Combest Greenwood Luther Condit Gutierrez Maloney (CT) Mr. BLILEY. Mr. Speaker, I ask adopted by the Committee of the Cook Gutknecht Maloney (NY) Whole? If not, the question is on the Cooksey Hall (OH) Manton unanimous consent that all Members amendment. Costello Hall (TX) Manzullo may have 5 legislative days within The amendment was agreed to. Cox Hansen Markey which to revise and extend their re- Coyne Harman Mascara The SPEAKER pro tempore. The Cramer Hastert Matsui marks and to include extraneous mate- question is on the engrossment and Crane Hastings (WA) McCarthy (MO) rial on H.R. 1872, the bill just passed. third reading of the bill. Crapo Hayworth McCarthy (NY) The SPEAKER pro tempore (Mr. The bill was ordered to be engrossed Cubin Hefley McCollum PEASE). Is there objection to the re- Cummings Hefner McCrery and read a third time, and was read the Cunningham Herger McDade quest of the gentleman from Virginia? third time. Danner Hill McDermott There was no objection. H2860 CONGRESSIONAL RECORD — HOUSE May 6, 1998 PROPOSED AGREEMENT FOR CO- Soviet Union, Ukraine agreed to the re- b 1545 OPERATION BETWEEN UNITED moval of all nuclear weapons from its IN THE COMMITTEE OF THE WHOLE STATES AND UKRAINE CONCERN- territory. It has a full-scope safeguards Accordingly, the House resolved ING PEACEFUL USES OF NU- agreement in force with the Inter- itself into the Committee of the Whole CLEAR ENERGY—MESSAGE FROM national Atomic Energy Agency House on the State of the Union for THE PRESIDENT OF THE UNITED (IAEA) to implement its safeguards ob- further consideration of the bill (H.R. STATES (H. DOC. No. 105–248) ligations under the NPT. Ukraine was 6) to extend the authorization of pro- The SPEAKER pro tempore laid be- accepted as a member of the Nuclear grams under the Higher Education Act fore the House the following message Suppliers Group in April 1996, and as a of 1965, and for other purposes, with from the President of the United member of the NPT Exporters Commit- Mr. EWING (Chairman pro tempore) in States; which was read and, together tee (Zangger Committee) in May 1997. the chair. with the accompanying papers, without I have considered the views and rec- The Clerk read the title of the bill. objection, referred to the Committee ommendations of the interested agen- The CHAIRMAN pro tempore. When on International Relations and ordered cies in reviewing the proposed agree- the Committee of the Whole House rose to be printed. ment and have determined that its per- on Tuesday, May 5, 1998, title VII was formance will promote, and will not To the Congress of the United States: open for amendment at any point. constitute an unreasonable risk to, the LIMITING DEBATE ON AMENDMENT NO. 75 AND I am pleased to transmit to the Con- common defense and security. Accord- gress, pursuant to sections 123b. and ALL AMENDMENTS THERETO ingly, I have approved the agreement Mr. GOODLING. Mr. Chairman, I ask 123d. of the Atomic Energy Act of 1954, and authorized its execution and urge as amended (42 U.S.C. 2153 (b), (d)), the unanimous consent that debate on the that the Congress give it favorable con- amendment numbered 75, and all text of a proposed Agreement for Co- sideration. operation Between the United States of amendments thereto, be limited to 1 Because this agreement meets all ap- hour, equally divided and controlled by America and Ukraine Concerning plicable requirements of the Atomic Peaceful Uses of Nuclear Energy, with Representative HASTERT of Illinois or Energy Act, as amended, for agree- his designee and Representative ROE- accompanying annex and agreed ments for peaceful nuclear coopera- minute. I am also pleased to transmit MER of Indiana or his designee. tion, I am transmitting it to the Con- The CHAIRMAN pro tempore. Is my written approval, authorization, gress without exempting it from any there objection to the request of the and determination concerning the requirement contained in section 123a. gentleman from Pennsylvania? agreement, and the memorandum of of that Act. This transmission shall There was no objection. the Director of the United States Arms constitute a submittal for purposes of The CHAIRMAN pro tempore. Are Control and Disarmament Agency with both sections 123b. and 123d. of the there any amendments to title VII? the Nuclear Proliferation Assessment Atomic Energy Act. My Administra- If not, the Clerk will designate title Statement concerning the agreement. tion is prepared to begin immediately VIII. The joint memorandum submitted to the consultations with the Senate For- The text of title VIII is as follows: me by the Secretary of State and the eign Relations and House International TITLE VIII—ADDITIONAL PROVISIONS Secretary of Energy, which includes a Relations Committees as provided in summary of the provisions of the SEC. 801. STUDY OF TRANSFER OF CREDITS. section 123b. Upon completion of the (a) STUDY REQUIRED.—The Secretary of Edu- agreement and various other attach- 30-day continuous session period pro- cation shall conduct a study to evaluate policies ments, including agency views, is also vided for in section 123b., the 60-day or practices instituted by recognized accrediting enclosed. continuous session provided for in sec- agencies or associations regarding the treatment The proposed agreement with tion 123d. shall commence. of the transfer of credits from one institution of Ukraine has been negotiated in accord- higher education to another, giving particular WILLIAM J. CLINTON, ance with the Atomic Energy Act of attention to— THE WHITE HOUSE, May 6, 1998. 1954, as amended by the Nuclear Non- (1) adopted policies regarding the transfer of Proliferation Act of 1978 and as other- f credits between institutions of higher education which are accredited by different agencies or as- wise amended. In my judgment, the sociations and the reasons for such policies; proposed agreement meets all statu- REPORT ON RESOLUTION PROVID- (2) adopted policies regarding the transfer of tory requirements and will advance the ING FOR CONSIDERATION OF credits between institutions of higher education nonproliferation and other foreign pol- H.R. 3694, INTELLIGENCE AU- which are accredited by national agencies or as- icy interests of the United States. The THORIZATION ACT FOR FISCAL sociations and institutions of higher education agreement provides a comprehensive YEAR 1999 which are accredited by regional agencies and framework for peaceful nuclear co- associations and the reasons for such policies; Mr. GOSS, from the Committee on (3) the effect of the adoption of such policies operation between the United States Rules, submitted a privileged report on students transferring between such institu- and Ukraine under appropriate condi- (Rept. No. 105–511) on the resolution (H. tions of higher education, including time re- tions and controls reflecting our com- Res. 420) providing for consideration of quired to matriculate, increases to the student of mon commitment to nuclear non- the bill (H.R. 3694) to authorize appro- tuition and fees paid, and increases to the stu- proliferation goals. priations for fiscal year 1999 for intel- dent with regard to student loan burden; (4) the extent to which Federal financial aid The proposed new agreement with ligence and intelligence-related activi- Ukraine permits the transfer of tech- is awarded to such students for the duplication ties of the United States Government, of coursework already completed at another in- nology, material, equipment (including the Community Management Account, stitution; and reactors), and components for nuclear and the Central Intelligence Agency (5) the aggregate cost to the Federal Govern- research, and nuclear power produc- Retirement and Disability System, and ment of the adoption of such policies. tion. It provides for U.S. consent rights for other purposes, which was referred (b) REPORT.—Not later than one year after to retransfers, enrichment, and reproc- to the House Calendar and ordered to the date of enactment of this Act, the Secretary shall submit a report to the Chairman and essing as required by U.S. law. It does be printed. not permit transfers of any sensitive Ranking Minority Member of the Committee on f Education and the Workforce of the House of nuclear technology, restricted data, or Representatives and the Committee on Labor sensitive nuclear facilities or major HIGHER EDUCATION AMENDMENTS and Human Resources of the Senate detailing critical components of such facilities. his findings regarding the study conducted In the event of termination, key condi- OF 1998 under subsection (a). The Secretary’s report tions and controls continue with re- The SPEAKER pro tempore (Mr. shall include such recommendation with respect spect to material and equipment sub- EWING). Pursuant to House Resolution to the recognition of accrediting agencies or as- ject to the agreement. 411 and rule XXIII, the Chair declares sociations as the Secretary deems advisable. Ukraine is a nonnuclear weapon state the House in the Committee of the SEC. 802. STUDY OF MARKET MECHANISMS IN FEDERAL STUDENT LOAN PRO- party to the Treaty on the non- Whole House on the State of the Union GRAMS. proliferation of Nuclear Weapons for the further consideration of the (a) STUDY REQUIRED.—The Comptroller Gen- (NPT). Following the dissolution of the bill, H.R. 6. eral, in consultation with interested parties, May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2861

shall conduct a study of the potential to use necessary costs are imposed on postsecondary AMENDMENT NO. 70 OFFERED BY MR. MILLER OF auctions or other market mechanisms in the de- education as a consequence of the applicability CALIFORNIA livery of Federal student loans in order to re- to postsecondary facilities and equipment of reg- Mr. MILLER of California. Mr. Chair- duce costs both to the Federal Government and ulations prescribed for purposes of regulating man, I offer an amendment. to borrowers. Such study shall include an exam- industrial and commercial enterprises. The CHAIRMAN pro tempore. The ination of— (b) REPORT REQUIRED.—Within one year after (1) the feasibility of using an auction of lend- the date of enactment of this Act, the Comptrol- Clerk will designate the amendment. ing authority for Federal student loans, and the ler General shall submit a report to the Congress The text of the amendment is as fol- appropriate Federal role in the operation of on the results of the study required by sub- lows: such an auction or other alternative market section (a). Amendment No. 70 offered by Mr. MILLER mechanisms; SEC. 805. ANNUAL REPORT ON COST OF HIGHER of California: (2) methods for operating such a system to en- EDUCATION. Page 334, after line 19, insert the following sure loan access for all eligible borrowers, while (a) GAO REPORT REQUIRED.—The Comptroller new section (and redesignate the succeeding maximizing the cost-effectiveness (for the Gov- General shall conduct an on-going analysis of sections and conform the table of contents ernment and borrowers) in the delivery of such the following: accordingly): loans; (1) The increase in tuition compared with SEC. 806. EDUCATIONAL MERCHANDISE LICENS- (3) the impact of such mechanisms on student other commodities and services. ING CODES OF CONDUCT. loan availability; (2) Trends in college and university adminis- It is the sense of the Congress that all (4) any necessary transition procedures for trative costs, including administrative staffing, American colleges and universities should implementing such mechanisms; ratio of administrative staff to instructors, ratio adopt rigorous educational merchandise li- (5) the costs or savings likely to be attained of administrative staff to students, remunera- censing codes of conduct to assure that uni- for the Government and borrowers; tion of administrative staff, and remuneration (6) the feasibility of incorporating income-con- versity and college licensed merchandise is of college and university presidents or not made by sweatshop and exploited adult tingent repayment options into the student loan chancellors. system and requiring borrowers to repay or child labor either domestically or abroad (3) Trends in (A) faculty workload and remu- and that such codes should include at least through income tax withholding, and the impact neration (including the use of adjunct faculty), of such an option on the willingness of lenders the following: (B) faculty-to-student ratios, (C) number of (1) public reporting of the code and the to participate in auctions or other market mech- hours spent in the classroom by faculty, and (D) anisms and on the efficiency of Federal manage- companies adhering to it; tenure practices, and the impact of such trends (2) independent monitoring of the compa- ment of student loan programs; on tuition. (7) the ability of the Department of the Treas- nies adhering to the code by entities not lim- (4) Trends in (A) the construction and renova- ited to major international accounting ury to effectively auction the right to make stu- tion of academic and other collegiate facilities, dent loans; and firms; and (B) the modernization of facilities to access (3) an explicit prohibition on the use of (8) other relevant issues. and utilize new technologies, and the impact of (b) RECOMMENDATIONS.—Within 2 years after child labor; such trends on tuition. (4) an explicit requirement that companies the date of enactment of this Act, the Comptrol- (5) The extent to which increases in institu- pay workers at least the governing minimum ler General shall submit to the Congress a report tional financial aid and tuition discounting on the study required by subsection (a) and wage and applicable overtime; have affected tuition increases, including the (5) an explicit requirement that companies shall include with such report any legislative demographics of students receiving such aid, the recommendations the Comptroller General con- allow workers the right to organize without extent to which such aid is provided to students retribution; and siders appropriate. with limited need in order to attract such stu- SEC. 803. IMPROVEMENTS IN MARKET INFORMA- (6) an explicit requirement that companies dents to particular institutions or major fields of maintain a safe and healthy workplace. TION AND PUBLIC ACCOUNTABILITY study, and the extent to which Federal finan- IN HIGHER EDUCATION. cial aid, including loan aid, has been used to (Mr. MILLER of California asked and (a) IMPROVED DATA COLLECTION.— was given permission to revise and ex- (1) DEVELOPMENT OF UNIFORM METHODOL- offset such increases. (6) The extent to which Federal, State, and OGY.—The Secretary shall direct the Commis- tend his remarks.) sioner of Education Statistics to convene a series local laws, regulations, or other mandates con- Mr. MILLER of California. Mr. Chair- of forums to develop nationally consistent meth- tribute to increasing tuition, and recommenda- man, today all across America, con- odologies for reporting costs incurred by post- tions on reducing those mandates. sumers are taking a closer look at how (7) The establishment of a mechanism for a secondary institutions in providing postsecond- more timely and widespread distribution of data products that they buy are made. ary education. on tuition trends and other costs of operating There are some things consumers have (2) SEPARATION OF UNDERGRADUATE AND always wanted to know: How much GRADUATE COSTS.—Such consistent methodolo- colleges and universities. gies shall permit the Secretary to collect and dis- (8) The extent to which student financial aid does it cost? Where is it made? What is seminate separate data with respect to the costs programs have contributed to changes in tui- it made of? And was it made with incurred in providing undergraduate and grad- tion. union labor? Was it made with recycled (9) Trends in State fiscal policies that have af- uate postsecondary education. products? fected college costs. (3) REDESIGN OF DATA SYSTEMS.—On the basis (10) Other related topics determined to be ap- For many years, there have been la- of the methodologies developed pursuant to propriate by the Comptroller General. bels on these products to provide con- paragraph (1), the Secretary shall redesign rel- (b) ANNUAL REPORT TO CONGRESS.—The sumers this information. Today, how- evant parts of the postsecondary education data Comptroller General shall submit to the Con- systems to improve the usefulness and timeliness ever, on the heels of a number of em- gress an annual report on the results of the of the data collected by such systems. barrassing incidents involving high- analysis required by subsection (a). (b) DATA DISSEMINATION.—The Secretary shall profile personalities and well-known publish, in both printed and electronic form, of SEC. 806. REPEALS OF PREVIOUS HIGHER EDU- companies, consumers want to know the data collected pursuant to subsection (a). CATION AMENDMENTS PROVISIONS. (a) HIGHER EDUCATION AMENDMENTS OF more about the products they buy. Such data shall be available in a form that per- 1986.—Title XIII of the Higher Education They want to know under what condi- mits the review and comparison of the data sub- Amendments of 1986 (20 U.S.C. 1091 note, 1121 tions were these products made. They missions of individual institutions of higher note, 1221e–1 note, 1011 note, 1070a note, 1071 education. Such data shall be presented in a want to know, for example, whether note, 1221–1 note, 1091 note) is repealed. form that is easily understandable and allows the T-shirts, the baseball caps, the (b) HIGHER EDUCATION AMENDMENTS OF parents and students to make informed decisions sweatpants, and the soccer balls they 1992.— based on the following costs for typical full-time buy for themselves and for their chil- (1) TITLE XIV.—Title XIV of the Higher Edu- undergraduate or graduate students— cation Amendments of 1992 (20 U.S.C. 1071 note, dren were made by children. They want (1) tuition charges published by the institu- 1080 note, 1221e note, 1070 note, 1221e–1 note, to know if the products they are buy- tion; ing with their hard-earned money were (2) the institution’s cost of educating students 1070a–21 note, 1134 note, 1132a note, 1221–1 note, on a full-time equivalent basis; 1101 note) is repealed. made by workers who were exploited in (3) the general subsidy on a full-time equiva- (2) TITLE XV.—Parts A, B, C, D, and E of title sweatshops or by child labor. There are lent basis; XV of the Higher Education Amendments of no labels to tell consumers that kind of (4) instructional cost by level of instruction; 1992 (29 U.S.C. 2401 et seq., 20 U.S.C. 1452 note, information. (5) the total price of attendance; and 1101 note, 1145h, 1070 note) are repealed. Until there is a better way to inform (6) the average amount of per student finan- SEC. 807. LIMITATION. consumers about labor practices, about cial aid received, including and excluding assist- None of the funds appropriated under the ance in the form of loans. Higher Education Act of 1965 or any other Act the methods of production, we think SEC. 804. DIFFERENTIAL REGULATION. shall be made available by any Federal agency that one of the best ways to do this is (a) GAO STUDY.—The Comptroller General to the National Board for Professional Teaching for purchasers of these items to engage shall conduct a study of the extent to which un- Standards. in voluntary codes of conduct, codes of H2862 CONGRESSIONAL RECORD — HOUSE May 6, 1998 conduct that are backed up by inde- As one indication of the growing im- roots of the university system and de- pendent monitoring. portance of this issue, the Association manding the excellence and integrity We now have some of these voluntary of Collegiate Licensing Administrators and dignity of their name and of those codes of conduct with members of the will convene their annual meeting things that are associated with them. I apparel industry. Some of the big later this month, and this topic of dis- would hope that all schools of higher names in the apparel industry, the de- cussion is on their agenda to discuss education would support this effort. signer labels, have agreed to voluntary such codes as were adopted by Duke Let me also make it clear that I do codes of conduct to monitor under University and Brown. not believe that code of conduct is what conditions their garments are In addition, the Collegiate Licensing enough to ensure honest wages and made, how they are made, who made Company, which represents 160 schools, safety from exploitative workplaces. them, and whether or not it is ex- including Cornell, is in the process of But our committee has a number of ploited labor. writing a code of conduct for its cli- those topics under discussion and those What we now see on our university ents. When we asked Duke, which had are topics for another time. These vol- and college campuses is that many adopted its code in March, ‘‘Why did untary code of conducts, finally let me goods are sold on college campuses in you do so?’’ they said for two reasons: say, do work. the bookstores, sports memorabilia, One, on moral grounds, it was abso- Over 2 years ago an effort was started college educational memorabilia items, lutely the right thing to do; and it was in both the public and private sector to such as this, a baseball cap. A simple also smart economically. ask questions about soccer balls. Soc- baseball cap that might be sold on the The universities have come to recog- cer balls were made in Malaysia, Indo- university campus, it turns out that it nize, as pointed out both again by peo- nesia, Bangladesh and elsewhere using is made in a sweatshop. It is made by ple at Duke and by the provost of Har- very, very young children because they exploited labor. In some cases it is vard University, that the university had tiny hands that could sew the soc- made by child labor. has to protect the integrity of its cer ball; and they used them until they Some universities, when they have name. If its name is associated with could no longer do it, and then they learned this information, have imme- sweatshop merchandise, if its name is were thrown out on the streets. diately taken the items off of their associated with child labor, exploited We started a campaign that was shelves. They refuse to sell them. Cor- labor, it cheapens the name and integ- started by young children, a school- nell University just did this. Other uni- rity of the university. aged boy from Canada, a young boy versities have said, if we had known So they have a reason to do this, and from India that started this campaign. that, we would never have purchased yet, these very same universities in a And today, today the International them. Duke University and Brown Uni- recent report found that a company Soccer Federation will not give its con- versity have just entered into vol- named BJ&B is running sweatshops in sent to its name being put on a soccer untary codes of conduct for the pur- the Dominican Republic making base- ball if it is made with child labor. chasing of these materials. ball caps for leading American univer- Nike and Reebok, when they learned Duke University and Brown Univer- sities, Harvard, Cornell, Notre Dame, of this, completely reorganized how sity sell a lot of this memorabilia. Georgetown, Duke, and others and they they construct these balls. They Alumni go there, the students go there, did not know it. So now they are mov- brought it in house. They do not allow they buy it for gifts for their brothers ing in this direction. labor to be exploited. and sisters. They have no way of know- I would hope that the Congress would So a voluntary effort can make a big ing it was made with exploited labor or support this effort with this sense of difference, as we are starting to see in made with child labor. So now they Congress resolution for these voluntary some parts of the apparel industry, as have a voluntary code of conduct to codes of conduct. These are baseball we saw in the Soccer Federation, and I protect the purchasers, to protect their caps that sell for about $20, for about hope we will start to see on the univer- student body from this kind of condi- $20. The university gets about $1.50 in sity campuses. I would urge all of my tion. royalty and licensing fee. The worker colleagues to support this. The code stipulates that the compa- gets 7 cents. So, obviously, there is im- I would like to thank so many of the nies must certify, if they are going to provement that can be made here in students across the country who have sell to these universities, that this is terms of compensating the people who taken up this effort, have brought this not made with child labor, that this is are making these products. to the attention of the university ad- not made in sweatshops, that the mini- The CHAIRMAN pro tempore. The ministrations. And I would hope that mum wage in the area was paid. Dif- time of the gentleman from California we would soon have a university-wide ferent universities have different ap- (Mr. MILLER) has expired. voluntary code of conduct with respect proaches, but it is to try to raise the (By unanimous consent, Mr. MILLER to the purchase of this. awareness and to make sure that the of California was allowed to proceed for Mr. Chairman, I would like to submit for the university could protect its consumers. 3 additional minutes.) RECORD several additional items, including: my This is a market that is over $2 bil- Mr. MILLER of California. Many of complete floor statement; the list of the mem- lion. Over $2 billion of these these workers work up to or in excess bers of the Apparel Industry Partnership; a sweatshirts and sweatpants and T- of 56 hours a week. Very often they are copy of the report of the Apparel Industry Part- shirts and baseball caps and other par- not compensated for overtime, they are nership to President Clinton that includes the aphernalia are purchased. Some univer- not paid the minimum wage that is re- code of conduct that has become the basis for sities sell a huge amount of this, Har- quired by law in the country, and very codes being used by other universities and vard University, Duke University, Uni- often they are hired for short periods of colleges; and, three editorials on the Apparel versity of Southern California, Notre time and they are forced out of the job Industry Partnership's report. Dame, and others. Duke University es- because they prefer to have younger Participants in the Apparel Industry Part- timates that it sells about $20 million workers and they force people out after nership include: Liz Claiborne Inc.; Nike; of this licensed merchandise. Cornell the age of 25. Phillips-Van Heusen; Reebok; L.L. Bean; says it receives about $15,000 in royal- Many of the workers are given quotas Patagonia; Tweeds; Nicole Miller; Karen ties. that are almost unachievable. It means Kane; UNITE; the Retail, Wholesale, Depart- What my amendment does is express that they then have to come in and ment Store Union; Business for Social Re- the sense of Congress to encourage the work off of the clock so they can start sponsibility; the Interfaith Center on Cor- porate Responsibility; the International adoption of these voluntary codes of their new day of work. Labor Rights Fund; Lawyers Committee for conduct by colleges and universities Mr. Chairman, I want to applaud Human Rights; the National Consumers governing the merchandise that they Duke University and Brown University League; and the RFK Memorial Center for license for manufacture. By passing and Cornell University, who is now in Human Rights. this measure, Congress will lend a help- the process of considering these codes REPORT OF APPAREL INDUSTRY PARTNERSHIP ing hand to a growing private sector of conduct and those who have already The members of the Apparel Industry Part- movement to restore a sense of integ- passed codes of conduct, because I nership hereby report to the President and rity and decency to our marketplace. think that they are returning to the to the public on: May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2863 The announcement of the attached ‘‘Work- respect the right of employees to freedom of law, as well as about effective monitoring place Code of Conduct’’ as a set of standards association and collective bargaining. practices, so as to enable company monitors defining decent and humane working condi- Wages and Benefits. Employers recognize to be able to assess compliance with the tions; that wages are essential to meeting employ- standards The individual determination of each com- ees’ basic needs. Employers shall pay em- E. Conduct Periodic Visits and Audits pany participating in the Partnership to ad- ployees, as a floor, at least the minimum Have trained company monitors conduct here to the Code and to implement as soon as wage required by local law or the prevailing periodic announced and unannounced visits reasonably practicable a monitoring pro- industry wage, whichever is higher, and shall to an appropriate sampling of company fac- gram consistent with the attached ‘‘Prin- provide legally mandated benefits. tories and facilities of contractors and sup- ciples of Monitoring,’’ by adopting an inter- Hours of Work. Except in extraordinary pliers to assess compliance with the work- nal monitoring program consistent with business circumstances, employees shall (i) place standards; and such Principles and utilizing an independent not be required to work more than the lesser Have company monitors conduct periodic external monitor that agrees to conduct its of (a) 48 hours per week and 12 hours over- audits of production records and practices monitoring consistent with such Principles; time, or (b) the limits on regular and over- and of wage, hour, payroll and other em- and time hours allowed by the law of the country ployee records and practices of company fac- The Partnership’s commitment to work to- of manufacture or, where the laws of such tories and contractors and suppliers. gether to form, during a six-month transi- country do not limit the hours of work, the tion period, a nonprofit association that regular work week in such country plus 12 F. Provide Employees With Opportunity to would have the following functions intended hours overtime and (ii) be entitled to at least Report Noncompliance to provide the public with confidence about one day off in every seven day period. Develop a secure communications channel, compliance with the Code: Overtime Compensation. In addition to in a manner appropriate to the culture and To determine the criteria for company their compensation for regular hours of situation, to enable company employees and membership in the association and for com- work, employees shall be compensated for employees of contractors and suppliers to re- panies to remain members in good standing overtime hours at such premium rate as is port to the company on noncompliance with of the association; legally required in the country of manufac- the workplace standards, with security that To develop criteria and implement proce- ture or, in those countries where such laws they will not be punished or prejudiced for dures for the qualification of independent ex- do not exist, at a rate at least equal to their doing so. ternal monitors; regular hourly compensation rate. G. Establish Relationships with Labor, To design audit and other instruments for Any company that determines to adopt the the establishment of baseline monitoring Human Rights, Religious or Other Local Workplace Code of Conduct shall, in addition Institutions practices; to complying with all applicable laws of the To continue to address questions critical country of manufacture, comply with and Consult regularly with human rights, to the elimination of sweatshop practices; support the Workplace Code of Conduct in labor, religious or other leading local insti- To develop means to maximize the ability accordance with the attached Principles of tutions that are likely to have the trust of of member companies to remedy any in- Monitoring and shall apply the higher stand- workers and knowledge of local conditions stances of noncompliance with the Code; and ard in cases of differences or conflicts. Any and utilize, where companies deem nec- To serve as a source of information to con- company that determines to adopt the Work- essary, such local institutions to facilitate sumers about the Code and about companies place Code of Conduct also shall require its communication with company employees that comply with the Code. and employees of contractors and suppliers The association would be governed by a contractors and, in the case of a retailer, its suppliers to comply with applicable local in the reporting of noncompliance with the board whose members would be nominated workplace standards; by companies, labor unions and consumer, laws and with this Code in accordance with the attached Principles of Monitoring and to Consult periodically with legally con- human rights and religious groups. The Part- stituted unions representing employees at nership would work together during this apply the higher standard in cases of dif- ferences or conflicts. the worksite regarding the monitoring proc- transition period to further determine the ess and utilize, where companies deem appro- governance of the association. PRINCIPLES OF MONITORING priate, the input of such unions; and WORKPLACE CODE OF CONDUCT I. Obligations of Companies 2 Assure that implementation of monitoring The Apparel Industry Partnership has ad- A. Establish Clear Standards is consistent with applicable collective bar- dressed issues related to the eradication of Establish and articulate clear, written gaining agreements. sweatshops in the United States and abroad. workplace standards; 3 H. Establish Means of Remediation On the basis of this examination, the Part- Formally convey those standards to com- Work with company factories and contrac- nership has formulated the following set of pany factories as well as to contractors and tors and suppliers to correct instances of standards defining decent and humane work- suppliers; 4 noncompliance with the workplace standards ing conditions. The Partnership believes that Receive written certifications, on a regular promptly as they are discovered and to take consumers can have confidence that products basis, from company factories as well as con- steps to ensure that such instances do not that are manufactured in compliance with tractors and suppliers that standards are recur; and these standards are not produced under ex- being met, and that employees have been in- Condition future business with contractors ploitative or inhumane conditions. formed about the standards; and and suppliers upon compliance with the Forced Labor. There shall not be any use Obtain written agreement of company fac- standards. of forced labor, whether in the form of prison tories and contractors and suppliers to sub- II. Obligations of independent external monitors labor, indentured labor, bonded labor or oth- mit to periodic inspections and audits, in- erwise. cluding by independent external monitors, A. Establish Clear Evaluation Guidelines and Child Labor. No person shall be employed for compliance with the workplace stand- Criteria at an age younger than 15 (or 14 where the ards. Establish clear, written criteria and guide- law of the country of manufacture 1 allows) B. Create An Informed Workplace lines for evaluation of company compliance or younger than the age for completing com- with the workplace standards pulsory education in the country of manu- Ensure that all company factories as well B. Review Company Information Database facture where such age is higher than 15. as contractors and suppliers inform their Harassment or Abuse. Every employee employees about the workplace standards Conduct independent review of written shall be treated with respect and dignity. No orally and through the posting of standards data obtained by company to verify and employee shall be subject to any physical, in a prominent place (in the local languages quantify compliance with the workplace sexual, psychological or verbal harassment spoken by employees and managers) and un- standards or abuse. dertake other efforts to educate employees C. Verify Creation of Informed Workplace about the standards on a regular basis. Nondiscrimination. No person shall be sub- Verify that company employees and em- ject to any discrimination in employment, C. Develop An Information Database ployees of contractors and suppliers have including hiring, salary, benefits, advance- Develop a questionnaire to verify and been informed about the workplace stand- ment, discipline, termination or retirement, quantify compliance with the workplace ards orally, through the posting of standards on the basis of gender, race, religion, age, standards; and in a prominent place (in the local languages disability, sexual orientation, nationality, Require company factories and contractors spoken by employees and managers) and political opinion, or social or ethnic origin. and suppliers to complete and submit the through other educational efforts. Health and Safety. Employers shall pro- questionnaire to the company on a regular vide a safe and healthy working environment D. Verify Establishment of Communications basis. to prevent accidents and injury to health Channel arising out of, linked with, or occurring in D. Establish Program to Train Company Mon- Verify that the company has established a the course of work or as a result of the oper- itors secure communications channel to enable ation of employer facilities. Provide training on a regular basis to com- company employees and employees of con- Freedom of Association and Collective pany monitors about the workplace stand- tractors and suppliers to report to the com- Bargaining. Employers shall recognize and ards and applicable local and international pany on noncompliance with the workplace H2864 CONGRESSIONAL RECORD — HOUSE May 6, 1998 standards, with security that they will not tailer (including a manufacturer acting as a re- Such revelations are not good news for be punished or prejudiced for doing so. tailer). A ‘‘contractor’’ or a ‘‘supplier’’ shall mean Nike or any other manufacturer that basks any contractor or supplier engaged in a manufactur- in an all-American image. Self-interest, if E. Be Given Independent Access to, and Con- ing process, including cutting, sewing, assembling duct Independent Audit of, Employee and packaging, which results in a finished product not humanitarian zeal, ought to be an impe- Records for the consumer. tus to just do the right thing. American companies that manufacture Be given independent access to all produc- [From the San Francisco Examiner, Apr. 17, abroad are sometimes portrayed as economic tion records and practices and wage, hour, 1997] pirates. Left unsaid is that they benefit hun- payroll and other employee records and prac- ‘‘NO SWEAT’’ REQUIRES SWEAT EQUITY dreds of thousands of foreign workers, who, tices of company factories and contractors A CODE OF CONDUCT PLEDGED BY NIKE, REEBOK after all, are not coerced to work for Nike or and suppliers; and Conduct independent audit, on a confiden- AND OTHERS IS ONLY A FIRST STEP TOWARD Reebok but line up for the chance. They tial basis, of an appropriate sampling of pro- ENDING INTERNATIONAL SWEATSHOP ABUSES know that a job that pays even a few dollars duction records and practices and wage, With strong caveats, we endorse the cre- a day is better than no job. Nothing should absolve American compa- hour, payroll and other employee records ation of a code of conduct to fight sweatshop nies of their wider social responsibilities. and practices of company factories and con- practices around the world. It is a good first The code is a beginning. The debate will con- tractors and suppliers. step if the participating shoe and apparel tinue. F. Conduct Periodic Visits and Audits manufacturers are serious about making it work. As long as it’s sincere, this joint effort by Conduct periodic announced and unan- Agreement was announced Monday by sev- companies and human rights groups can ac- nounced visits, on a confidential basis, of an eral companies—including Nike, Reebok, Liz complish more than rhetorical campaigns to appropriate sampling of company factories Claiborne, Patagonia and L.L. Bean—along improve the lot of international workers. and facilities of contractors and suppliers to with human rights and labor groups that But the ‘‘No Sweat’’ labels must mean a real survey compliance with the workplace joined together as members of a presidential commitment and not a public relations gim- standards. task force. Some critics, however, said the mick. Over time, cheaters never win. G. Establish Relationships with Labor, code would only lead to ‘‘kinder, gentler [From the Los Angeles Times, Apr. 16, 1997] Human Rights, Religious or Other Local sweatshops.’’ A BIG NO TO SWEATSHOPS Institutions Required under the new code are the elimi- CLINTON PLAN FOR A CODE AND ‘‘NO SWEAT’’ In those instances where independent ex- nation of child labor, a guarantee of pay at LABEL ON CLOTHING IS LAUDABLE the minimum wage prevailing in the country ternal monitors themselves are not leading The president of the United States has the of manufacture, a maximum 60-hour week, local human rights, labor rights, religious or ability to do many things but so far not to the end of abusive working conditions and other similar institutions, consult regularly erase sweatshop labor practices in American protection of workers’ right to organize. Un- with human rights, labor, religious or other and overseas clothing factories. Bill Clinton, settled are details of inspections and sanc- leading local institutions that are likely to however, at least is trying. tions, which are critical to success of the have the trust of workers and knowledge of This week he proposed a voluntary code code. local conditions; and under which U.S. clothing companies would Assure that implementation of monitoring In exchange, companies that comply will accept the presence of independent auditors is consistent with applicable collective bar- be able to emblazon merchandise with a ‘‘No to monitor compliance with a minimum set gaining agreements and performed in con- Sweat’’ label, a signal to buyers that sweat- of workplace labor laws. The code would sultation with legally constituted unions shop labor was not used in its manufacture. apply whether the work was done in the representing employees at the worksite. The responsibility of American manufac- United States or abroad. Companies that pay turers toward workers in their foreign H. Conduct Confidential Employee Interviews at least the legal minimum wage in the plant—in Indonesia, Vietnam, Haiti and Conduct periodic confidential interviews, country where the work is being done, use no other countries—has been a controversial in a manner appropriate to the culture and child labor, have a workweek of no more issue. Now, at least, the companies are pub- situation, with a random sampling of com- than 60 hours and give workers at least one licly pledged to uphold minimum standards pany employees and employees of contrac- day off each week would be permitted to and to fight abusive conditions. tors and suppliers (in their local languages) apply a ‘‘No Sweat’’ label to their clothes. ‘‘This is a breakthrough agreement that to determine employee perspective on com- Cute, and potentially effective. really stands to benefit workers around the pliance with the workplace standards; and Some critics will argue that the code Utilize human rights, labor, religious or world,’’ said Michael Posner, a task force merely sets forth standards that every com- other leading local institutions to facilitate member and executive director of the Law- pany in the world should be observing any- communication with company employees yers Committee on Human Rights. way. But in fact few companies in the cloth- and employees of contractors and suppliers, To prevent the code of conduct from be- ing industry or, for that matter, in some both in the conduct of employee interviews coming merely a public relations device—a other handwork industries adhere to these and in the reporting of noncompliance. coverup for continued sweatshop activity— minimum legal standards. we beleive two additional steps are nec- I. Implement Remediation Another objection to the presidential ini- essary. tiative deals with the composition of the Work, where appropriate, with company First, manufacturers must agree to factory independent panel that would monitor com- factories and contractors and suppliers to inspections carried out by truly independent pliance. Some American union leaders insist correct instances of noncompliance with the groups, not just auditors hired by the compa- that non-governmental, religious and human workplace standards. nies. Inclusion of internationally respected rights organizations, plus union representa- J. Complete Evaluation Report groups such as Amnesty International or tives, perform the process. Employers who Complete report evaluating company com- Human Rights Watch would clinch the ef- have agreed to the code want an inter- pliance with the workplace standards. fort’s credibility. national firm of auditors to do that job. Second, violations must be announced pub- Endnotes: This should not be an issue. As long as the licly and quickly. This carries two beneficial auditors do not have any conflict of interest, 1 All references to local law throughout this Code effects: Consumers will be resurred that the there should be no problem. The program shall include regulations implemented in accordance inspections aren’t a sham, and companies should have a grievance procedure, however. with applicable local law. will be prodded to correct deficiencies with- And there is no doubt that under a grievance 2 It is recognized that implementation by compa- out delay. Companies that don’t must be nies of internal monitoring programs might vary de- process the workers would use their voice to pending upon the extent of their resources but that stripped of their ‘‘No Sweat’’ logos. complain about any injustice, whether cov- any internal monitoring program adopted by a com- The code will not solve all the world’s ered in the code or not. pany would be consistent with these Principles of problems. Nor should it be expected to do so. The real test for the presidential initiative Monitoring. If companies do not have the resources No realistic, economically sophisticated per- will be whether consumers make the ‘‘No to implement some of these Principles as part of an son should expect Nike or Reebok to pay Sweat’’ label the decisive element when they internal monitoring program, they may delegate the workers far above their country ’s prevailing go shopping for clothes. That will make all implementation of such Principles to their inde- wage, no matter how ‘‘just’’ that may seem pendent external monitors. the difference. to U.S. critics. 3 Adoption of the Workplace Code of Conduct [From the New York Times, Apr. 16] would satisfy the requirement to establish and ar- What’s more important is halting abuses ticulate clear written standards. Accordingly, all such as those reported by USA Today earlier A MODEST START ON SWEATSHOPS references to the ‘‘workplace standards’’ and the this year in plants run by Nike subcontrac- A newly proposed code of conduct for do- ‘‘standards’’ throughout this document could be re- tors in Vietnam. One factory floor manager mestic and overseas sweatshops makes use- placed with a reference to the Workplace Code of was convicted of beating Vietnamese work- ful pledges to improve the appalling working Conduct. ers with a shoe. Another Nike subcontractor conditions of apparel workers around the 4 These Principles of Monitoring should apply to contractors where the company adopting the work- was cited for making 58 Vietnamese women world. But the code is so littered with loop- place standards is a manufacturer (including a re- employees run laps as punishment until holes its impact will probably be limited un- tailer acting as a manufacturer) and to suppliers some dropped from exhaustion and had to be less public and press attention remains fixed where the company adopting the standards is a re- taken to a hospital. on the problems of sweatshop workers. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2865 The Presidential task force that developed some type of codes of conduct for their A code of conduct that will make a real dif- the code included industry giants like Nike, licensed apparel. But we do not know ference in the daily lives of thousands of peo- Reebok, L.L. Bean and Liz Claiborne, as well how well these codes work at this par- pleÐpeople we will never meet, but people as representatives of labor and human rights ticular time. It is unclear since it is a groups. It got industry pledges to provide whose only desire is the chance to make a abuse-free factories, hire children at least 15 rather limited experience. decent living for their families. years old, limit workweek to 60 hours and I understand the resolution basically The idea of a code of conduct is both cre- protect the right of workers to organize says that codes of conduct are gen- ative and concrete. without fear of retaliation by their employ- erally a good idea. Beyond that, we It is a practical idea already in place at ers. The code also calls for companies to hire really do not have much information Duke University. Brown University is not far independent monitors that would work with on how they work in the context of col- behind. Today I call on the universities in my local human rights groups. This provision is leges’ and universities’ licensed ap- state to follow their lead, especially the Univer- vital, since in oppressive societies workers parel. I would particularly make the sity of Michigan and Michigan State University. would only voice discontent to groups that This amendment will send a strong mes- have gained their trust. point with regard to the issue of mon- Identifying and publicizing abuses is essen- itoring. This has obviously been the sage that we oppose sweatshops, and that we tial to improving conditions. The coverage of most difficult issue with regard to vol- urge this nation's colleges and universities to inhumane conditions at Central American untary codes of conduct. do their part to eradicate such abhorrent con- factories turning out clothes for Wal-Mart On the one hand, there are those who ditions. under the name of Kathie Lee Gifford led to believe that only independent monitor- Fans and consumers have a right to support creation of the task force. Two years ago, ing is effective; on the other hand, their favorite schools without supporting the industry would have brushed off any pro- sweatshops, and I strongly urge my col- posal to monitor its third-world factories. there are always questions about who The weakness of the code is its lack of pre- would do the monitoring, who would leagues to support this amendment. cise commitments. The accord suggests but choose the monitors, what would the Mr. SCHUMER. Mr. Chairman, as a sup- does not require local independent monitor- monitors use as a baseline, and so on. porter of H.R. 6, I'd like to draw your attention ing of working conditions or public disclo- Because these questions remain, I be- to part of the bill I helped authorÐthe campus sure of infractions. The 60-hour limit on the lieve it would be premature to endorse crime provisions. workweek can be waived for what are called Despite our best efforts with the 1990 Cam- independent monitoring in terms of ‘‘extraordinary’’ circumstances. pus Crime bill, parents and students still don't any direction we give to colleges and Even if a follow-up commission strength- know how safe their campuses are. ens the wording, the code cannot work un- universities. Colleges' typical reports of 3 or 4 burglaries, A few weeks ago, the gentleman from less American consumers penalize non-par- sexual assaults and alcohol violations are far ticipants. Some companies will not sign the Michigan (Mr. HOEKSTRA) and I trav- too small to be believed by anyoneÐeven the code. Warnaco, which makes Hathaway eled to New York City and saw first- shirts, withdrew from the task force because colleges themselves. hand some of the most horrendous The bill we're considering today will bring us the company fears that the public disclosure working conditions I have ever seen of monitors’ reports will reveal trade secrets one step closer to our goal of making sure to competitors. If consumers flock to lower- and certainly conditions that I did not that parents have the information they need priced clothes produced by companies that expect ever to see in this country. And about campus safety. ignore the code, the effort will fail. I know that sweatshops exist not just The bill expands the people obligated to re- The task force correctly rejected the idea in other parts of the world but in this port crimes, expands the types of crime to be of imposing a ‘‘living’’ wage, calling instead country. for companies to pay only the locally pre- reported and, for the first time, opens up cam- So I do not oppose this amendment. I pus crime reports to the public through a cam- vailing minimum wage. An externally deter- think it is important to emphasize that mined wage would almost surely victimize pus crime log. the world’s worst-paid workers. Manufactur- what it is saying basically, is that we The log documents where, when and what ers would close shop in countries like Haiti think codes of conduct may be a good crimes occur on campus. and Vietnam where workers produce too lit- idea in helping to deal with them; and Making these crime reports public will hold tle to cover the higher wage employers what we recognize is that it is much schools accountable for their accuracy. would be required to pay, and reopen some- more difficult to actually implement a Parents deserve to know how safe their chil- where else where factories are more produc- code of conduct and have it make a dif- dren's campus is. And the campus security tive. The more humane course is to rely on ference than it is to pass the resolu- provisions of this bill will help them make that competition to drive up productivity and wages, as has happened in South Korea and tion. determination. other Asian economies. So we accept the Miller amendment. I want to thank the U.S. Students' Associa- At best, a voluntary accord that includes Mr. BONIOR. Mr. Chairman, we all like to tion, Chairman GOODLING and Representative industry can only accomplish so much. The cheer for our favorite teams, and a lot of us DUNCAN for all their hard work on this issue. task force may help reduce the political heat proclaim our loyalty by wearing T-shirts and The CHAIRMAN pro tempore. The on Mr. Clinton, labor unions and industry to caps with the team logo. question is on the amendment offered deal with the working conditions in faraway Unfortunately, millions of these items are by the gentleman from California (Mr. factories. Whether third-world workers will being produced overseas using child labor, in MILLER). ever see a benefit depends on sharpening the unsafe factories and at slave wages. The question was taken; and the code and intensifying disclosure of compa- Take those baseball caps for example, the Chairman pro tempore announced that nies that violate its provisions. ones sporting names of major universities. the ayes appeared to have it. Mr. GOODLING. Mr. Chairman, I They sell for $20 apiece all across America. Mr. MILLER of California. Mr. Chair- move to strike the last word. A lot of them are made in the Dominican man, I demand a recorded vote, and I do not plan to oppose the Miller Republic by people who get paid 8 cents a pending that, I make the point of order amendment. It is a sense of Congress cap. that a quorum is not present. resolution. But I do want to make a That's rightÐfor each $20 cap a person The CHAIRMAN pro tempore. Pursu- couple of comments about it. sews, they get paid 8 cents. ant to House Resolution 411, further First of all, I appreciate the willing- Eight cents. proceedings on the amendment offered ness of the gentleman from California According to the New York Times, these by the gentleman from California (Mr. (Mr. MILLER) to delete from his origi- hats are marketed under famous brand names MILLER) will be postponed. nal amendment the list of findings that such as Champion and Starter. The point of no quorum is considered I think were problematic both from a Well, I say it's time we start to champion a withdrawn. germaneness point of view and in terms basic code of conduct. Are there any further amendments to of some of the specific items that were A code of conduct to ensure that unscrupu- title VIII? included. lous contractors are not exploiting people b Secondly, I have a concern that the while profiting off the prestige of our great uni- 1600 amendment urges American colleges versities. AMENDMENT NO. 58 OFFERED BY MR. KILDEE and universities to do something that A code of conduct that enables fans to buy Mr. KILDEE. Mr. Chairman, I offer neither they nor we have much guid- these shirts and caps and wear them with ab- an amendment. ance on what is intended. solute pride. The CHAIRMAN pro tempore (Mr. It is my understanding there are A code of conduct that puts a premium on EWING). The Clerk will designate the some universities that have adopted our principles, not just profit. amendment. H2866 CONGRESSIONAL RECORD — HOUSE May 6, 1998 The text of the amendment is as fol- (3) OLYMPIC SCHOLARSHIPS.—Section 1543(d) Last week we had the Olympic din- lows: of the Higher Education Amendments of 1992 ner. Many of us attended and many of is amended by striking ‘‘1993’’ and inserting Amendment No. 58 offered by Mr. KILDEE: us patted the athletes on the back for Page 334, after line 19, insert the following ‘‘1999’’. a job well done. But what about an edu- new section (and redesignate the succeeding Mr. STUPAK. Mr. Chairman, today I cation? Last week when we were here, sections and conform the table of contents am offering an amendment which reau- many Members had their photograph accordingly): thorizes the Olympic Education Schol- SEC. 806. STUDY OF CONSOLIDATION OPTIONS. taken with the Olympic athletes. In arship program. This valuable program fact, I was walking over on the other No later than 2 years after the date of en- was first authorized in the 1992 Higher actment of this Act, the Secretary shall re- side and there were many of them out port to Congress on the desirability and fea- Education Act. It is designed and its on the steps of the Capitol taking their sibility of possible new Federal efforts to as- purpose is to assist Olympic athletes picture with the Olympic athletes. But sist individuals who have substantial alter- continue their pursuit of education more than photo opportunities with native student loans (other than direct stu- while training at the various Olympic congressional representatives and more dent loans and federally guaranteed student training and education centers by au- than a dinner and more than a pat on loans) to repay their student loans. The re- thorizing up to $5 million for college the back, they need a helping hand and port shall include an analysis of the extent scholarships. to which the high monthly payments associ- Olympic athletes train at four Olym- not a handout. ated with such loans deter such individuals This is an opportunity to compete in pic centers in the United States, Mar- from jobs (including public-interest and pub- the education field. Each Member in quette, Michigan; Lake Placid, New lic-service jobs) with lower salaries than the this House can help each Olympic ath- York; Colorado Springs, Colorado; and average in relevant professions. The report lete by reauthorizing this invaluable San Diego, California. More than 450 shall include an analysis of the desirability program. I know that there will be the and feasibility of allowing the consolidation athletes train full time at all of the other side who may say, well, we are of alternative student loans held by such in- training sites to prepare for the Olym- dividuals through the Federal student loan pic games and thousands more train not going to authorize new programs. consolidation program or the use of other there part time. Many of these athletes This is a reauthorization of an old pro- means to provide income-contingent repay- gram. I know our job is only half done, ment plans for alternative student loans. participated in the Nagano games just 3 months ago. that we still have to go to the Commit- Mr. KILDEE. Mr. Chairman, I offer Last week the President hosted our tee on Appropriations to get appropria- this amendment on behalf of the gen- Winter Olympic athletes from the 1998 tions. Olympians know how to fight, tleman from Colorado (Mr. SKAGGS), games at the White House. Except for a they know how to compete. What we who unfortunately is hospitalized with very few sports, there is no post-Olym- are asking for is to give them the op- an emergency appendectomy. I know pic professional athletic career for portunity to compete to reauthorize that everyone in the House wishes him most Olympians. As a result, Mr. the Olympic Education Scholarship a very speedy recovery. Chairman, education becomes a criti- Program. The Skaggs amendment would re- cal factor in the lives of these young This amendment will simply give us quire the Secretary of Education to ex- people. But as so many of our Amer- a chance to continue the Olympic edu- amine the very serious and substantial ican Olympians will attest, too often cation scholarship to provide a com- debts that students are amassing be- they must postpone or even forgo an mitment to our Olympic athletes be- cause of loans, other than those au- education in order to prepare to rep- yond their performances in the games. thorized in this legislation, they must resent the United States in the Olym- I urge my colleagues to vote with me obtain in order to pay for a college edu- pic games. Many of the athletes would to reauthorize the Olympic Education cation. Specifically, the Secretary have greater access to college because Scholarship Program. would be charged with the responsibil- of the Olympic scholarship, and the Mr. MCKEON. Mr. Chairman, I move ity of determining the desirability and education they receive while training to strike the last word. Mr. Chairman, feasibility of new Federal efforts to as- provides them with an excellent oppor- one of the good things that we have sist such individuals repay these loans. tunity to prepare them for post-Olym- done in this bill is we have eliminated I understand this amendment has 45 unfunded programs and 11 studies been agreed to by the other side. I pic life. Some athletes currently attend col- and commissions. This is an attempt to would urge its adoption. lege while training. Many others, how- bring one of these programs back be- Mr. MCKEON. Mr. Chairman, will the ever, do not have the resources to pay fore we have even finally moved final gentleman yield? passage. Mr. KILDEE. I yield to the gen- for tuition and are unable to take classes. Unlike college athletes, many This program is unfunded and re- tleman from California. pealed in H.R. 6 along with all of the Mr. MCKEON. I thank the gentleman Olympic athletes spend thousands of other unfunded programs I mentioned. for yielding. Mr. Chairman, we do sup- dollars annually on equipment and This is pursuant to an agreement be- port this amendment. Likewise, we travel to major events. The only way wish the best to the gentleman from they can attend school is if scholar- tween the chairman and ranking mem- ber of the subcommittee with jurisdic- Colorado (Mr. SKAGGS) and hope he is ships are provided. That is why we need able to join with us quickly. This to reauthorize the Olympic scholarship tion. We have worked this out in a bi- amendment will improve the bill. program. partisan way. We are happy with the The CHAIRMAN pro tempore. The One example of this need of the product that we have produced. We question is on the amendment offered Olympic education scholarship is Mark think we are doing the best for stu- by the gentleman from Michigan (Mr. Lenzi, a gold medal winner diver at the dents and for the most possible people KILDEE). Barcelona games in 1992. Mr. Lenzi an- with the money available. The amendment was agreed to. nounced on network television that he Students pursuing a postsecondary AMENDMENT NO. 5 OFFERED BY MR. STUPAK would sell his Olympic gold medal to education may receive Federal student Mr. STUPAK. Mr. Chairman, I offer help him pay for his college tuition. aid if they qualify under the Higher an amendment. Mr. Chairman, I am tremendously Education Act. There is no need for a The CHAIRMAN pro tempore. The impressed with the dedication, deter- separate program and the increased ad- Clerk will designate the amendment. mination and work ethic of our Olym- ministrative costs associated with the The text of the amendment is as fol- pic hopefuls. Given the opportunity, new program when student athletes are lows: they apply the same dedication to their already eligible just like any other stu- Amendment No. 5 offered by Mr. STUPAK: academic endeavors. Balancing a dent. Page 334, strike lines 20 and 21 and insert schedule of rigorous training and edu- In this reauthorization we have tried the following: cation is very difficult for any person. to eliminate unfunded programs and SEC. 806. REPEALS AND EXTENSIONS OF PRE- We should not, however, put our Olym- limit the number of new programs cre- VIOUS HIGHER EDUCATION AMEND- pic athletes in a position where they ated so that the appropriators have a MENTS PROVISIONS. Page 335, line 7, strike ‘‘D, and E’’ and in- have to sacrifice an education in order clear understanding of the priorities of sert ‘‘and D’’; and after line 7, insert the fol- to represent our country in the Olym- the committee when it comes to fund- lowing: pic games. ing the higher education programs. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2867 Available funds should be committed referred to in the preceding sentence shall be de- amended by striking ‘‘fiscal years 1993 through to the programs which will work and termined by the Secretary or the University.’’. 1997’’ each place it appears and inserting ‘‘fiscal serve the largest number of students. I Subpart 2—National Institute For The Deaf years 1999 through 2003’’. urge a no vote on this amendment. SEC. 911. AGREEMENT FOR THE NATIONAL TECH- SEC. 927. SCHOLARSHIP PROGRAM. The CHAIRMAN pro tempore. The NICAL INSTITUTE FOR THE DEAF. Section 208 of the Education of the Deaf Act of 1986 (20 U.S.C. 4358) is hereby repealed. question is on the amendment offered Section 112 of the Education of the Deaf Act SEC. 928. OVERSIGHT AND EFFECT OF AGREE- by the gentleman from Michigan (Mr. of 1986 (20 U.S.C. 4332) is amended— (1) in subsection (a)(2), by striking ‘‘under MENTS. STUPAK). this section’’ and all that follows and inserting Section 209 of the Education of the Deaf Act The question was taken; and the the following: ‘‘under this section— of 1986 (20 U.S.C. 4359) is amended— Chairman pro tempore announced that ‘‘(A) shall periodically assess the need for (1) in subsection (a), by striking ‘‘Committee the noes appeared to have it. modification of the agreement; and on Education and Labor’’ and inserting ‘‘Com- Mr. STUPAK. Mr. Chairman, I de- ‘‘(B) shall also periodically update the agree- mittee on Education and the Workforce’’; and ment as determined to be necessary by the Sec- (2) by redesignating such section as section mand a recorded vote, and pending 208. that, I make the point of order that a retary or the institution.’’; and (2) in subsection (b)(3), by striking ‘‘Commit- SEC. 929. INTERNATIONAL STUDENTS. quorum is not present. tee on Education and Labor’’ and inserting (a) ENROLLMENT.—Section 210(a) of the Edu- The CHAIRMAN pro tempore. Pursu- ‘‘Committee on Education and the Workforce’’. cation of the Deaf Act of 1986 (20 U.S.C. ant to House Resolution 411, further 4359a(a)) is amended to read as follows: Subpart 3—General Provisions proceedings on the amendment offered ‘‘(a) ENROLLMENT.—A qualified United States by the gentleman from Michigan (Mr. SEC. 921. DEFINITIONS. citizen seeking admission to the University or Section 201 of the Education of the Deaf Act NTID shall not be denied admission in a given STUPAK) will be postponed. of 1986 (20 U.S.C. 4351) is amended— year due to the enrollment of international stu- The point of no quorum is considered (1) in paragraph (1)(C), by striking ‘‘Palau dents.’’. withdrawn. (but only until the Compact of Free Association (b) CONFORMING AMENDMENT.—Section 210 of Are there further amendments to with Palau takes effect),’’; and such Act (20 U.S.C. 4359a) is amended by redes- title VIII? (2) in paragraph (5)— ignating such section as section 209. If not, the Clerk will designate title (A) by inserting ‘‘and’’ before ‘‘the Common- SEC. 930. AUTHORIZATION OF APPROPRIATIONS. IX. wealth of the Northern Mariana Islands’’; and Section 211 of the Education of the Deaf Act The text of title IX is as follows: (B) by striking ‘‘, and Palau’’ and all that fol- of 1986 (20 U.S.C. 4360) is amended— lows and inserting a period. (1) in subsection (a), by striking ‘‘such sums TITLE IX—AMENDMENTS TO OTHER LAWS SEC. 922. AUDITS. as may be necessary for each of the fiscal years PART A—EDUCATION OF THE DEAF ACT Section 203(b) of the Education of the Deaf 1993 through 1997’’ and inserting ‘‘$83,480,000 Subpart 1—Gallaudet University Act of 1986 (20 U.S.C. 4353(b)) is amended in the for fiscal year 1999, $84,732,000 for fiscal year SEC. 901. BOARD OF TRUSTEES MEMBERSHIP. first sentence by inserting before the period at 2000, $86,003,000 for fiscal year 2001, $87,293,000 Section 103(a)(1) of the Education of the Deaf the end the following: ‘‘, including the national for fiscal year 2002, and $88,603,000 for fiscal Act of 1986 (20 U.S.C. 4303(a)(1)) is amended— mission and school operations of the elementary year 2003’’; (1) in the matter preceding subparagraph (A), and secondary programs’’. (2) in subsection (b), by striking ‘‘such sums by striking ‘‘twenty-one’’ and inserting ‘‘twen- SEC. 923. REPORTS. as may be necessary for each of the fiscal years ty-two’’; Section 204 of the Education of the Deaf Act 1993 through 1997’’ and inserting ‘‘$44,791,000 (2) in subparagraph (A), by striking ‘‘and’’ at of 1986 (20 U.S.C. 4354) is amended in the matter for fiscal year 1999, $46,303,000 for fiscal year the end; preceding paragraph (1) by striking ‘‘Committee 2000, $50,136,000 for fiscal year 2001, $50,818,000 (3) in subparagraph (B), by striking the period on Education and Labor’’ and inserting ‘‘Com- for fiscal year 2002, and $46,850,000 for fiscal at the end and inserting ‘‘; and’’; and mittee on Education and the Workforce’’. year 2003’’; and (3) by redesignating such section as section (4) by adding at the end the following: SEC. 924. MONITORING, EVALUATION, AND RE- ‘‘(C) the liaison designated under section 206, PORTING. 210. who shall serve as an ex-officio, nonvoting mem- Section 205(c) of the Education of the Deaf PART B—EXTENSION AND REVISION OF ber.’’. Act of 1986 (20 U.S.C. 4355(c)) is amended by INDIAN HIGHER EDUCATION PROGRAMS SEC. 902. ELEMENTARY AND SECONDARY EDU- striking ‘‘1993, 1994, 1995, 1996, and 1997’’ and SEC. 951. TRIBALLY CONTROLLED COLLEGES AND CATION PROGRAMS. inserting ‘‘1999 through 2003’’. UNIVERSITIES. (a) COMPLIANCE WITH CERTAIN REQUIREMENTS SEC. 925. RESPONSIBILITY OF THE LIAISON. (a) EXTENSION TO COLLEGES AND UNIVER- UNDER THE INDIVIDUALS WITH DISABILITIES Section 206 of the Education of the Deaf Act SITIES.—The Tribally Controlled Community EDUCATION ACT.—Section 104(b)(3) of the Edu- (20 U.S.C. 4356) is amended— College Assistance Act of 1978 (25 U.S.C. 1801 et cation of the Deaf Act of 1986 (20 U.S.C. (1) in subsection (a), by striking ‘‘Not later seq.) is amended— 4304(b)(3)) is amended by striking ‘‘intermediate than 30 days after the date of enactment of this (1) by striking ‘‘community college’’ each educational unit’’ and inserting ‘‘educational Act, the’’ and inserting ‘‘The’’; and place it appears and inserting ‘‘college or uni- service agency’’. (2) in subsection (b)— versity’’; (2) by striking ‘‘community colleges’’ each (b) ADDITIONAL REQUIREMENTS.—Section (A) in paragraph (2), by striking ‘‘and’’ at the 104(b)(4)(C) of such Act (20 U.S.C. 4304(b)(4)(C)) end; place it appears and inserting ‘‘colleges and is amended by striking clauses (i) through (iv) (B) by redesignating paragraph (3) as para- universities’’; (3) by striking ‘‘COMMUNITY COLLEGES’’ and inserting the following: graph (4); and ‘‘(i) Paragraph (1) and paragraphs (3) (C) by inserting after paragraph (2) the fol- in the heading of title I and inserting ‘‘COL- through (6) of subsection (b). lowing: LEGES AND UNIVERSITIES’’; (4) by striking ‘‘community college’s’’ in sec- ‘‘(ii) Subsections (e) through (g). ‘‘(3) serve as an ex-officio, nonvoting member tion 2(b)(5) and inserting ‘‘college’s or univer- ‘‘(iii) Subsection (h), except the provision con- of the Board of Trustees under section 103; sity’s’’; and’’. tained in such subsection that requires that (5) by striking ‘‘the college’’ in sections 102(b), findings of fact and decisions be transmitted to SEC. 926. FEDERAL ENDOWMENT PROGRAMS. 113(c)(2), and 305(a) and inserting ‘‘the college the State advisory panel. (a) FEDERAL PAYMENTS.—Section 207(b) of the or university’’; ‘‘(iv) Paragraphs (1) and (2) of subsection (i). Education of the Deaf Act of 1986 (20 U.S.C. (6) by striking ‘‘such colleges’’ in sections ‘‘(v) Subsection (j), except that such sub- 4357(b)) is amended— 104(a)(2) and 111(a)(2) and inserting ‘‘such col- section shall not be applicable to a decision by (1) in paragraph (2) to read as follows: leges and universities’’; the University to refuse to admit or to dismiss a ‘‘(2) Subject to the availability of appropria- (7) by striking ‘‘COMMUNITY COLLEGES’’ in the child, except that, before dismissing any child, tions, the Secretary shall make payments to heading of section 107 and inserting ‘‘COLLEGES the University shall give at least 60 days notice each Federal endowment fund in amounts equal AND UNIVERSITIES’’; to the child’s parents and to the local edu- to sums contributed to the fund from non-Fed- (8) by striking ‘‘such college’’ each place it ap- cational agency in which the child resides. eral sources during the fiscal year in which the pears in sections 108(a), 113(b)(2), 113(c)(2), 302, ‘‘(vi) Subsections (k) through (m).’’. appropriations are made available (excluding 303, 304, and 305 and inserting ‘‘such college or SEC. 903. AGREEMENT WITH GALLAUDET UNIVER- transfers from other endowment funds of the in- university’’; SITY. stitution involved).’’; and (9) by striking ‘‘such colleges’’ in section Section 105(a) of the Education of the Deaf (2) by striking paragraph (3). 109(b) and inserting ‘‘such college or univer- Act of 1986 (20 U.S.C. 4305(a)) is amended— (b) WITHDRAWALS AND EXPENDITURES.—Sec- sity’’; (1) in the first sentence, by striking ‘‘within 1 tion 207(d)(2)(C) of such Act (20 U.S.C. (10) in section 110(a)(4), by striking ‘‘Tribally year after enactment of the Education of the 4357(d)(2)(C)) is amended by striking ‘‘Begin- Controlled Community Colleges’’ and inserting Deaf Act Amendments of 1992, a new’’ and in- ning on October 1, 1992, the’’ and inserting ‘‘tribally controlled colleges and universities’’; serting ‘‘and periodically update, an’’; and ‘‘The’’. (11) by striking ‘‘COMMUNITY COLLEGE’’ (2) by amending the second sentence to read (c) AUTHORIZATION OF APPROPRIATIONS.—Sec- in the heading of title III and inserting ‘‘COL- as follows: ‘‘The necessity of the periodic update tion 207(h) of such Act (20 U.S.C. 4357(h)) is LEGE AND UNIVERSITY’’; H2868 CONGRESSIONAL RECORD — HOUSE May 6, 1998 (11) by striking ‘‘that college’’ in sections ‘‘(A) including appropriate information in ciplinary systems. Students are dying of 302(b)(4) and 305(a) and inserting ‘‘such college the education record of any student concern- drug abuse, overdose and alcohol poisoning or university’’; and ing disciplinary action taken against such at an alarming rate. Rapes and murders on (12) by striking ‘‘other colleges’’ in section student for conduct that posed a significant campuses are growing national problems. 302(b)(4) and insert ‘‘other colleges and univer- risk to the safety or well-being of that stu- However, by providing this amend- sities’’. dent, other students, or other members of ment, I do want to clarify certain pro- (b) TITLE I ELIGIBLE GRANT RECIPIENTS.—Sec- the school community; or tion 103 of the Tribally Controlled Community ‘‘(B) disclosing such information to teach- visions of the Family Educational College Assistance Act of 1978 (25 U.S.C. 1804) is ers and school officials, including teachers Rights and Privacy Act, known as amended— and school officials in other schools, who FERPA. By preventing postsecondary (1) by striking ‘‘and’’ at the end of paragraph have legitimate educational interests in the institutions from disclosing education (2); behavior of the student. records to the public without the con- (2) by striking the period at the end of para- ‘‘(2) Nothing in this section shall prohibit sent of students, FERPA guarantees graph (3) and inserting ‘‘; and’’; and any post-secondary educational agency or in- (3) by adding at the end the following new stitution from disclosing disciplinary that student academic and financial in- paragraph: records of any kind which contain informa- formation remains confidential. This ‘‘(4) has been accredited by a nationally rec- tion that personally identifies a student or important protection should continue. ognized accrediting agency or association deter- students who have either admitted to or However, the Department of Education mined by the Secretary of Education to be a reli- been found to have committed any act, has wrongly concluded that FERPA able authority as to the quality of training of- which is a crime of violence (as that term is prevents universities from releasing to fered, or is, according to such an agency or as- defined in section 16 of title 18, United States the public the results of campus dis- Code), in violation of institutional policy, ei- sociation, making reasonable progress toward ciplinary actions or proceedings. Under such accreditation.’’. ther as a violation of the law or a specific in- (c) ELIGIBILITY AND ACCREDITATION.—Section stitutional policy, where such records are di- this interpretation of FERPA, student 106 of such Act (25 U.S.C. 1806) is amended— rectly related to such misconduct.’’. criminal activities like aggravated as- (1) in the section heading, by inserting ‘‘AND Mr. FOLEY. Mr. Chairman, I rise in sault and rape are protected along with ACCREDITATION PROGRAM’’ after ‘‘STUDIES’’; full support of the Higher Education legitimately protected grade and finan- (2) by redesignating subsection (c) as sub- cial aid information. This interpreta- section (d); and Amendments of 1998, H.R. 6, and want to commend the fine work of the gen- tion is wrong. (3) by inserting after subsection (b) the follow- Escalating violence on college cam- ing new subsection: tleman from Pennsylvania (Mr. GOOD- ‘‘(c) The Secretary of Education shall assist LING) for his efforts and labor of love puses across the Nation require that tribally controlled colleges and universities in on this important issue facing Ameri- Congress clarify the intent of FERPA. the development of a national accrediting agen- cans, and that is higher education. I fully believe, Mr. Chairman, that cy or association for such colleges and univer- This legislation will certainly go a every student has the right to privacy. sities.’’. But when a university finds through its (d) AMOUNT OF TITLE I GRANTS.—Section long way to ensure that higher edu- cation remains an affordable option for own disciplinary proceedings that a 108(a)(2) of such Act (25 U.S.C. 1808(a)(2)) is student has committed an act of vio- amended by striking ‘‘$5,820’’ and inserting our Nation’s families. ‘‘$6,000’’. I also want to commend the members lence, such as sexual assault, the uni- (e) CLERICAL AMENDMENT.—Section 109 of of the Committee on Education and the versity community has a right to know such Act (25 U.S.C. 1809) is amended by redesig- Workforce for including in H.R. 6 im- about it. While I believe that campus nating subsection (d) as subsection (c). portant provisions of a bill that I co- disciplinary proceedings should be open (f) AUTHORIZATION OF APPROPRIATIONS FOR sponsored, the Accuracy in Crime Re- to the public, I can appreciate the con- TITLE I.—Section 110 of such Act (25 U.S.C. porting Act. These provisions in H.R. 6 cerns many have raised against such a 1810) is amended— course of action. (1) by striking ‘‘1993’’ each place it appears will improve the accuracy of informa- and inserting ‘‘1999’’; and tion that parents and students receive Therefore, the amendment I am of- (2) in subsection (a)(2), by striking about the dangers that exist on many fering today simply removes the ‘‘$30,000,000’’ and inserting ‘‘$40,000,000’’. of our college campuses. FERPA protection of disciplinary (g) AUTHORIZATION OF APPROPRIATIONS FOR I would like to take a moment to records that personally identifies a stu- TITLES III AND IV.—Sections 306 and 403 of such read from my hometown newspaper’s dent who has either admitted to or Act (25 U.S.C. 1836, 1852) are each amended by been found to have committed any act striking ‘‘1993’’ and inserting ‘‘1999’’. editorial, the Sun-Sentinel, which ap- peared April 10, 1998. The editorial is ti- of violence either as a violation of law SEC. 952. REAUTHORIZATION OF PROVISIONS or specific institutional policy. My FROM HIGHER EDUCATION AMEND- tled Demand Accurate Crime Statistics MENTS OF 1992. From Colleges in Return for Funds. amendment does not require any new Title XIII of the Higher Education Amend- College campuses are supposed to be sanc- obligation to disclose these records. On ments of 1992 (25 U.S.C. 3301 et seq.) is amended tuaries of vigorous inquiry and quiet con- the contrary, it deregulates the issue by striking ‘‘1993’’ each place it appears in sec- templation where truth and knowledge can from Federal purview and allows State tions 1348, 1365, and 1371(e), and inserting be pursued in an atmosphere of security, dig- public record law and common sense to ‘‘1999’’. nity and mutual respect. But that academic take over. SEC. 953. REAUTHORIZATION OF NAVAJO COMMU- ideal has become the exception rather than When violence occurs on campuses, NITY COLLEGE ACT. the rule at far too many contemporary col- the university community needs to Section 5(a)(1) of the Navajo Community Col- leges and universities, where the current epi- lege Act (25 U.S.C. 640c–1) is amended by strik- demic of drug abuse, underage drinking, ille- know about it. Only then will students ing ‘‘1993’’ and inserting ‘‘1999’’. gal gambling, sexual assault and violent be able to take appropriate pre- AMENDMENT NO. 22 OFFERED BY MR. FOLEY crime have been one of the best-kept secrets cautions. I appreciate the leadership’s Mr. FOLEY. Mr. Chairman, I offer an in American society. Statistics compiled by willingness to work with us on this amendment. Security on Campus, Inc., a nonprofit orga- issue. I offer the amendment in the The CHAIRMAN pro tempore. The nization dedicated to making institutions of spirit of allowing parents, children and higher learning more accountable to the pub- students to have access to this very Clerk will designate the amendment. lic, indicate that nationwide, 65 percent of The text of the amendment is as fol- vital and important information. fraternity members and 55 percent of soror- Mr. GOODLING. Mr. Chairman, I rise lows: ity sisters can be characterized as binge Amendment No. 22 offered by Mr. FOLEY: drinkers, 15 percent to 20 percent of all stu- in support of the amendment. The Page 346, after line 24, insert the following dents are recent users of illegal drugs and Clery family from Pennsylvania lost a new part (and conform the table of contents student-on-student offenses account for 80 beautiful daughter some years ago who accordingly): percent of campus crime. Many, if not most, competed in tennis against my daugh- Part C—General Education Provisions Act of these crimes never make it onto the police ter because of a violent crime on the SEC. 961. ACCESS TO RECORDS CONCERNING blotter or into the news media because of campus of Lehigh University. They CRIMES OF VIOLENCE. college officials’ overly expansive definition have dedicated the rest of their lives to Section 444(h) of the General Education of student privacy and law enforcement au- preventing other families from suffer- Provisions Act (20 U.S.C. 1232g(h)) is amend- thorities’ reluctance to infringe on the tradi- ed to read as follows: tion of academic freedom. Increasingly, how- ing the same tremendous loss. This is ‘‘(h) DISCIPLINARY RECORDS.—(1) Nothing in ever, campus violence is reaching a point our continuing effort to help the Clerys this section shall prohibit an educational where it cannot easily be ignored or swept in their fight to make college cam- agency or institution from— under the rug by the colleges’ internal dis- puses crime-free. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2869

The amendment continues the long- put at risk because they do not know LING) for the excellent legislation. I standing policy of protecting person- when a violent crime has been commit- hope we all come over and vote for the ally identifiable information included ted by a student or if that student re- Foley amendment, and then let us pass in a student’s education record. How- mains even on campus. We need to give this great bill. ever, it does not protect disciplinary parents and students the information Mr. FOX of Pennsylvania. Mr. Chair- records of students who have admitted that accurately measures the dangers man, I move to strike the requisite to or been found to have committed that are present on many college cam- number of words. any act that is a crime of violence. In- puses today. Mr. Chairman, I thank the gentleman formation related to crimes of violence We tried to solve some of this last from Florida (Mr. FOLEY) for offering should not be protected from disclosure year when we passed my legislation this important amendment to the reau- if we truly want our college campuses which made it a felony crime and thorization of the Higher Education to be safe environments for all stu- threw the book at those that would use Act. dents. If students do not know about the drug Rohypnol against When a student makes the decision of violent offenders in their college com- unsuspecting female students on cam- what college or university to attend, munity, how will they know how to puses, and that bill has made a lot of this is one of the most important deci- protect themselves? The records which difference. I do not think anyone is sions in their lives. Unfortunately, our may be disclosed under the gentle- naive enough to believe that their cam- Nation’s students are not able to make man’s amendment are those which are pus is devoid of all crime. However, by an informed decision about what col- directly related to a crime of violence trying to avoid bad publicity and hid- lege to attend because they do not have which the offender has admitted to or ing violent crime statistics, colleges all the facts regarding each and every been found to have committed. A crime and university administrators are play- institution. of violence means an offense that has ing a deadly game with the safety of The Family Education Rights and as an element the use, attempted use their students. Privacy Act provides institutions of or threatened use of physical force The Foley amendment lessens the higher education a method in which against the person or property of an- danger on campuses by doing away they may hide crime statistics from other; or any other felony offense that with the Federal prohibition on in- the public. Criminal misconduct can be by its nature involves a substantial forming the public when a student has filed away in confidential student risk that physical force against the committed a violent crime. By sup- grade and financial records. personal property of another may be porting this amendment we can make The Foley amendment would seek to used in the course of committing the our colleges and universities a safer rectify this most serious abuse of the offense. place for students. Mr. Chairman, I Family Education Rights and Privacy We should not be protecting these urge all my colleagues to join me in Act by permitting colleges and univer- acts of violence simply because they supporting the Foley amendment. sities to tell their student bodies the occur on our Nation’s college cam- Before I close, Mr. Chairman, I would names of students found to have com- puses. I support the gentleman’s just like to say that I would like to mitted violent crime. This knowledge amendment. As I have said many commend my colleagues for supporting would then be incorporated into the times, up until recent years, I always the Souder amendment, passed last campus crime statistics. This will pro- thought that this violence was per- night by a voice vote. This amendment vide students with much needed infor- petrated by those who were coming strengthens the provision based on leg- mation about the colleges they are at- from the town or community around islation that I had introduced which tending or may choose to attend. Stu- onto the college campus, only to find suspends Federal financial funds to dents and parents require this impor- out that drugs and alcohol are causing students who have been convicted of tant information in order to make an many violent crimes, particularly any Federal or State drug use. The informed decision about an institution against women, on college campuses. I amendment offered by my good friend, as well as to empower them to make support the amendment. the gentleman from Indiana (Mr. the necessary safety precautions when SOUDER) reinforces this language by re- attending an institution. b 1615 quiring that along with rehabilitation, In Pennsylvania, this initiative has Mr. SOLOMON. Mr. Chairman, I a student must test negative for two been led and championed by the Cleary move to strike the last word. unannounced drug tests to be eligible family, whose daughter was tragically Mr. Chairman, let me say that I rise for Federal education benefits. I sup- murdered on a campus in Pennsyl- today in strong support of the Foley ported this additional language and ap- vania. We certainly do not want to see amendment as well as H.R. 6, the High- preciate his invaluable support on this a repeat of this, and I compliment the er Education Amendments Act of 1998. important issue to identify those stu- Cleary family and the gentleman from I want to commend the gentleman dents with drug problems and put them Florida (Mr. FOLEY) for their leader- from Florida (Mr. FOLEY) and the gen- on the road to recovery. ship in moving this forward nationally. tleman from Pennsylvania (Mr. GOOD- Mr. Chairman, as my colleagues The Foley amendment will not in LING) for bringing this legislation to know, a number of years ago we passed any way expose victims or innocent the floor and this amendment to the the Solomon amendment which sus- students to the public. I believe that floor, as well as my colleagues on the pended the drivers’ licenses of all peo- this is a well-balanced solution to the Committee on Education and the ple who were convicted of drug felo- problem. The provisions will only apply Workforce for their fine work on this nies, either selling or using drugs. As to those who are found guilty by a uni- very, very important issue. my colleagues know, that legislation versity’s plenary committee to have The amendment before us today will now has swept the Nation. In New Jer- committed a conduct-code infraction strengthen this higher education bill sey alone, they have revoked 10,000 involving a violent crime. When a vio- by rectifying an extremely trouble- drivers’ licenses, which means we re- lent act is committed, the campus some situation regarding campus crime moved 10,000 drug users from the high- community and indeed the community reporting. ways. Many of those people have been in general have a right to know. This As my good friend from Florida has rehabilitated now because that license amendment will provide this knowl- explained, in 1974 the Family Edu- meant so much to them, and now they edge to the community. cational Rights and Privacy Act was are obeying the law, they are drug-free, Again I would like to thank the gen- passed to protect the privacy rights of and they have their licenses back. This tleman from Florida (Mr. FOLEY) for students and their educational records. is the kind of legislation that we need his leadership in offering this amend- Unfortunately, colleges and univer- to focus these young men and women ment and to the gentleman from Penn- sities are using this law to hide violent on to make sure we are going to have sylvania (Mr. GOODLING), and I urge my crimes statistics from their student a drug-free society. colleagues to adopt the amendment. body as well as prospective students Again I commend the gentleman Mr. NETHERCUTT. Mr. Chairman, I and parents. This is outrageous. By from Florida (Mr. FOLEY) and the gen- move to strike the requisite number of hiding this information, students are tleman from Pennsylvania (Mr. GOOD- words. H2870 CONGRESSIONAL RECORD — HOUSE May 6, 1998 Mr. Chairman, I am here today in amend the federal academic privacy laws to similar arrangement providing for unlimited ten- support of the amendment offered by exclude criminal actions. ure) additional benefits upon voluntary retire- the gentleman from Florida (Mr. I think that most people would think that ment that are reduced or eliminated on the basis of age, if— FOLEY), but I was troubled by a com- matters like grades and financial aid records ‘‘(1) such institution does not implement with ment that was made, a statistic, even should be private matters between a student respect to such employees any age-based reduc- though it may be true, about a high and his or her parents and their college or uni- tion or elimination of benefits that are not such number of incidents of fraternities and versity. These records should not be released additional benefits, except as permitted by other sororities engaged in drinking and drug to the public. However, I think it is wrong that provisions of this Act; and use on campus. While I know there are some students and colleges use these privacy ‘‘(2) with respect to each of such employees incidents that happen on campuses laws to hide criminal acts. who have, as of the time the plan is adopted, at- today, as they did when I was in col- This amendment is based on provisions of tained the minimum age and satisfied all non- age-based conditions for receiving a benefit lege, and I know they probably always my bill H.R. 715, the Accuracy in Campus under the plan, such employee is not precluded will with regard to alcohol and abuse of Crime Reporting Act. Both USA Today and the on the basis of age from having 1 opportunity alcohol, but I do not want the impres- New Republic have supported my bill in full lasting not less than 180-days to elect to retire sion left, Mr. Chairman, that all sorori- length stories. Both publications especially and to receive the maximum benefit that would ties and all fraternities and all stu- liked this bill because it amended the aca- be available to a younger employee if such dents on all campuses engage in this demic privacy laws. They do not think that fed- younger employee were otherwise similarly situ- kind of activity unlawfully. There are eral law should be used to protest murderers ated to such employee.’’. (b) CONSTRUCTION.— a number of national fraternity organi- and rapists. (1) APPLICATION.—Nothing in the amendment zations, national sorority organiza- At this time, the Department of Education is made by subsection (a) shall be construed to af- tions, and nonfraternity and sorority suing Miami University of Ohio to prevent fect the application of section 4 of the Age Dis- organizations, the dorm leadership, them from obeying a Ohio Supreme Court rul- crimination in Employment Act of 1967 (29 employees and others who are very ing which ordered such criminal records to be U.S.C. 623) with respect to— concerned about the alcohol problem, released. (A) any employer other than an institution of and they are making a very concerted USA Today summarized the issue of federal higher education (as defined in section 1201(a) of the Higher Education Act of 1965); or effort in a very proper way to stop this law being used to protect and hide criminal (B) any plan not described in subsection (m) kind of abuse on campus. activity: of section 4 of such Act (as added by subsection So while I do commend the gen- The government argues that university (a)). tleman for his amendment and realize criminal records constitute ‘academic (2) RELATIONSHIP TO PROVISIONS RELATING TO that we need to have some statistical records’ and therefore should be as private as VOLUNTARY EARLY RETIREMENT INCENTIVE information that is appropriate under student grades. PLANS.—Nothing in the amendment made by the circumstances I think we also have This outrage is just the [Education] De- subsection (a) shall be construed to imply that a to recognize that on campuses today partment’s latest attempt to protect col- plan described in subsection (m) of section 4 of leges’ reputations as the expense of student such Act (as added by subsection (a)) may not there is a very large group of students, safety. . . . be considered to be a plan described in section Greek and nonGreek alike, who care The Education Department is supporting a 4(f)(2)(B)(ii) of such Act (29 U.S.C. very deeply about good conduct on last-ditch effort by some universities to bury 623(f)(2)(B)(ii)). campus and an anti-alcohol and anti- information about campus crimes. Students (c) EFFECTIVE DATE.— drug abuse program. So I do not want involved in criminal acts are commonly en- (1) IN GENERAL.—This section shall take effect the impression left that all Greeks and couraged to use a college’s private discipli- on the date of enactment of this Act. (2) EFFECT ON CAUSES OF ACTION EXISTING BE- all, as my colleagues know, nonGreeks nary board instead of the public criminal justice system. FORE DATE OF ENACTMENT.—The amendment alike are abusive of alcohol and drugs, made by subsection (a) shall not apply with re- because they are not. And we have inci- USA Today concluded: spect to any cause of action arising under the dents around the country that show . . . it’s a sad state of affairs when an act Age Discrimination in Employment Act of 1967 that there are problems with alcohol of Congress is necessary for the Education prior to the date of enactment of this Act. Department to protect students’ safety. abuse and drug abuse, but there are an The CHAIRMAN pro tempore. Are awful lot of good kids and an awful lot I have been concerned about this issue for there any amendments to title X? of good fraternities and sororities who a long time and have been happy to work with If not, the Clerk will designate title are making a very strong effort to stop Congressman Foley on this issue. I believe XI. this kind of activity and speaking out that this amendment will do a lot to make our The text of title XI is as follows: very forcefully in favor of an antidrug campuses safer places by making students, TITLE XI—OFFSETS REQUIRED abuse and anti-alcohol policy. their parents, and the general public aware of SEC. 1101. ASSURANCE OF OFFSETS. So with that, I would be happy to the dangers that exist on many college cam- (a) DECLARATION.—None of the provisions support the amendment. puses. in this Act should take effect unless it con- Mr. FOLEY. Mr. Chairman, will the The CHAIRMAN pro tempore (Mr. tains the mandatory offsets set forth in sub- gentleman yield? EWING). The question is the amend- section (b). Mr. NETHERCUTT. I yield to the ment offered by the gentleman from (b) ENUMERATION OF OFFSETS.—The offsets gentleman from Florida. Florida (Mr. FOLEY). referred to in subsection (a) are provisions Mr. FOLEY. Mr. Chairman, I appre- that— The amendment was agreed to. (1) change the definition of default con- ciate the gentleman from Washington The CHAIRMAN pro tempore. Are tained in section 435(l) to extend the period making those notations, and I think it there any further amendments to title of delinquency prior to default by an addi- is important to note when college fra- IX? tional 90 days; ternities and sororities have taken it If not, the Clerk will designate title (2) capitalize the interest accrued on un- upon themselves to change some of the X. subsidized and parent loans at the time that behaviors among their peers, and I The text of title X is as follows: the borrower enters repayment; (3) recall $65,000,000 in guaranty agency re- think it is laudable that we signal that TITLE X—FACULTY RETIREMENT there is a change on campuses now in serves, in addition to the amount required to PROVISIONS be recalled pursuant to the amendments in that direction. SEC. 1001. VOLUNTARY RETIREMENT INCENTIVE section 422 of the Higher Education Act of And I also wanted to, if I could, in- PLANS. 1965 contained in this Act; trude on your time just to thank a (a) IN GENERAL.—Section 4 of the Age Dis- (4) eliminate the dischargeability in bank- school board member from Palm Beach crimination in Employment Act of 1967 (29 ruptcy of student loans made after the date County, Diane Heinz, Security on Cam- U.S.C. 623) is amended by adding at the end the of enactment of this Act for the cost of at- pus, Howard and Connie Cleary, and following: tendance for a baccalaureate or advanced de- my own staffer, Shawn Gallagher, who ‘‘(m) Notwithstanding subsection (f)(2)(B), it gree, and for which the first payment was shall not be a violation of subsection (a), (b), have worked very, very tirelessly on due more than seven years before the com- (c), (e), or (i) solely because a plan of an institu- mencement of the bankruptcy action; and bringing this amendment to the floor tion of higher education (as defined in section (5) sell sufficient commodities from the and including it in the bill. 1201(a) of the Higher Education Act of 1965 (20 National Defense stockpile to generate re- Mr. DUNCAN. Mr. Chairman, I rise in sup- U.S.C. 1141(a))) offers employees who are serv- ceipts of $80,000,000 in fiscal year 1999 and port of the Foley Amendment which would ing under a contract of unlimited tenure (or $480,000,000 over five years. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2871 The CHAIRMAN pro tempore. Are continues to plague college students. A Mr. Chairman, I support the gentle- there any amendments to title XI? recent Harvard study found that more man’s amendment. If not, are there any amendments to than 40 percent of college students are The CHAIRMAN pro tempore (Mr. the end of the bill? binge drinking these days. As far- EWING). The question is on the amend- AMENDMENT NO. 80 OFFERED BY MR. KENNEDY fetched as it may sound, in 1991 stu- ment offered by the gentleman from OF MASSACHUSETTS dents spent more money on alcohol, Massachusetts (Mr. KENNEDY). Mr. KENNEDY of Massachusetts. Mr. over $5 billion, than on books. In col- The amendment was agreed to. Chairman, I offer an amendment. leges all across this country, alcohol AMENDMENT NO. 64 OFFERED BY MR. LIVINGSTON The CHAIRMAN pro tempore. The abuse has become the unofficial college Mr. LIVINGSTON. Mr. Chairman, I Clerk will designate the amendment. sport, sometimes with deadly con- offer an amendment. The text of the amendment is as fol- sequences. The CHAIRMAN pro tempore. The lows: Alcohol is one of the leading causes Clerk will designate the amendment. of death, in fact the No. 1 cause of Amendment No. 80 offered by Mr. KENNEDY The text of the amendment is as fol- death of young people under the age of of Massachusetts: lows: At the end of the bill add the following new 24. Students at schools with high levels Amendment No. 64 offered by Mr. LIVING- title: of binge drinking are three times more STON: TITLE XI—ALCOHOL CONSUMPTION likely to be victims of sexual assault Add at the end the following new title (and and violence. In the latest report, the SEC. 1101. SENSE OF THE HOUSE OF REPRESENT- conform the table of contents accordingly): ATIVES. Chronicle of Higher Education found TITLE XI—PROTECTION OF STUDENT It is the sense of the House of Representa- that alcohol-related arrests on college SPEECH AND ASSOCIATION RIGHTS tives that, in an effort to change the culture campuses jumped 10 percent in 1996 SEC. 1101. PROTECTION OF STUDENT SPEECH of alcohol consumption on college campuses, alone. AND ASSOCIATION RIGHTS. all college and university administrators Mr. Chairman, I ask that my col- (a) PROTECTION OF RIGHTS.—It is the sense should adopt the following code of principles: leagues join me in offering an amend- of the House of Representatives that no stu- (1) For an institution of higher education, ment expressing the sense of the House dent attending an institution of higher edu- the president of the institution shall appoint that college administrators should cation on a full- or part-time basis should, a task force consisting of school administra- adopt a code of principles and practices on the basis of protected speech and associa- tors, faculty, students, Greek system rep- to first offer alcohol-free alternatives tion, be excluded from participation in, be resentatives, and others to conduct a full ex- denied the benefits of, or be subjected to dis- amination of student and academic life at for students in terms of dorms, dances, concerts, and other kinds of activities; crimination or official sanction under any the institution. The task force will make education program, activity, or division di- recommendations for a broad range of policy second, to work with local merchants rectly or indirectly receiving financial as- and program changes that would serve to re- to prevent alcohol sales to minors; sistance under the Higher Education Act of duce alcohol and other drug-related prob- third, to enforce a zero-tolerance pol- 1965, whether or not such program, activity, lems. The institution shall provide resources icy for illegal alcohol and drug use on or division is sponsored or officially sanc- to assist the task force in promoting the campus; and fourth, to provide alcohol tioned by the institution. campus policies and proposed environmental and drug education and prevention and (b) SANCTIONS FOR DISRUPTION PER- changes that have been identified. MITTED.—Nothing in this section shall be (2) The institution shall provide maximum treatment on campuses and to discour- age and limit alcohol sponsorship of construed to discourage the imposition of an opportunities for students to live in an alco- official sanction on a student that was will- hol-free environment and to engage in stim- on-campus events. With that I want to thank again the fully participated in the disruption or at- ulating, alcohol-free recreational and leisure tempted disruption of a lecture, class, activities gentleman from Indiana (Mr. SOUDER) speech, presentation, or performance made (3) The institution shall enforce a ‘‘zero who worked very hard with us on the or scheduled to be made under the auspices tolerance’’ policy on the illegal consumption committee for his hard work and his of the institution of higher education. and binge drinking of alcohol by its students diligence, and I look forward to rapid (c) DEFINITIONS.—For the purposes of this and will take steps to reduce the opportuni- movement on this amendment. section: ties for students, faculty, staff, and alumni Mr. GOODLING. Mr. Chairman, I rise (1) PROTECTED SPEECH.—The term ‘‘pro- to legally consume alcohol on campus. tected speech’’ means speech that is pro- (4) The institution shall vigorously enforce in support of the gentleman’s amend- ment. tected under the 1st and 14th amendments to its code of disciplinary sanctions for those the United States Constitution, or would be who violate campus alcohol policies. Stu- Mr. Chairman, I want to thank the gentleman for bringing the program to so protected if the institution of higher edu- dents with alcohol or other drug-related cation were subjected to those amendments. problems shall be referred to an on-campus our attention. Although it currently (2) PROTECTED ASSOCIATION.—The term counseling program. exists in the Elementary and Second- ‘‘protected association’’ means the right to (5) The institution shall adopt a policy to ary Education Act, it is appropriate join, assemble, and reside with others that is discourage alcoholic beverage-related spon- that we include it in the Higher Edu- protected under the 1st and 14th amend- sorship of on-campus activities. It shall cation Act. ments to the United States Constitution, or adopt polices limiting the advertisement and b would be protected if the institution of high- promotion of alcoholic beverages on campus. 1630 er education were subject to those amend- (6) Recognizing that school-centered poli- Combating illegal drug and alcohol ments. cies on alcohol will be unsuccessful if local (3) OFFICIAL SANCTION.—The term ‘‘official businesses sell alcohol to underage or intoxi- use on our college campuses is vital to the well-being of our Nation’s college sanction’’— cated students, the institution shall form a (A) means expulsion, suspension, proba- ‘‘Town/Gown’’ alliance with community students. During the committee’s consider- tion, censure, condemnation, reprimand, or leaders. That alliance shall encourage local any other disciplinary, coercive, or adverse commercial establishments that promote or ation of H.R. 6, we adopted the amend- action taken by an institution of higher edu- sell alcoholic beverages to curtail illegal stu- ment offered by the gentleman from cation or administrative unit of the institu- dent access to alcohol and adopt responsible Indiana (Mr. SOUDER) and long cham- tion; and alcohol marketing and service practices. pioned by the gentleman from New (B) includes an oral or written warning Mr. KENNEDY of Massachusetts. Mr. York (Mr. SOLOMON) to prohibit stu- made by an official of an institution of high- Chairman, first of all, I want to express dents convicted of drug offenses from er education acting in the official capacity my thanks and gratitude to the chair- receiving Federal student aid until of the official. man of the committee, the gentleman they have completed a rehabilitation Mr. LIVINGSTON. Mr. Chairman, a from California (Mr. MCKEON) and as program and get the help they need to number of colleges throughout this well as to the gentleman from Michi- fight their abuse problem. country are vigorously attacking their gan (Mr. KILDEE) who has done a tre- Encouraging institutions of higher students’ constitutionally protected mendous job on this committee for so education to develop and implement right of free speech and association. many years. drug and alcohol abuse prevention pro- The controversy centers on a decision This amendment should not take grams should serve to help combat the by some private schools to ban all sin- long, because of the agreements be- ongoing problems this country faces re- gle-sex organizations like fraternities tween both sides of the aisle on the im- lated to drug and alcohol abuse and the and sororities and restrict any student portant issue of binge drinking that violence often associated with both. involvement with them, even if it is off H2872 CONGRESSIONAL RECORD — HOUSE May 6, 1998 campus and on their own time. Punish- else as American citizens. We owe it to and contracts with such institutions and ments for such offenses range from pos- them and to all of those who sacrifice other organizations to develop, implement, sible suspension to expulsion. so much for those freedoms to adopt operate, improve, and disseminate programs Mr. Chairman, disciplining students my amendment. of prevention, and education (including treatment-referral) to reduce and eliminate for attending a fraternity or sorority Mr. Chairman, I urge the adoption of the illegal use of drugs and alcohol and their dinner, or a women’s Bible study, or a this amendment. associated violence. Such contracts may also YMCA event is obviously clearly a vio- Mr. McKEON. Mr. Chairman, I rise in be used for the support of a higher education lation of the constitutionally protected support of the amendment. center for alcohol and drug abuse prevention rights of association and free speech. Mr. Chairman, the amendment of- which will provide training, technical assist- Public institutions are strictly prohib- fered by the gentleman from Louisiana ance, evaluation, dissemination and associ- ited from violating these rights, and (Mr. LIVINGSTON), the chairman of the ated services and assistance to the higher they cannot bar single-sex organiza- Committee on Appropriations, would education community as defined by the Sec- retary and the institutions of higher edu- tions like fraternities and sororities express the strong sense of this body cation. without just cause. that colleges and universities which ac- ‘‘(2) AWARDS.—Grants and contracts shall Private colleges argue that they are cept Federal funds under the Higher be made available under paragraph (1) on a not subject to the same constitutional Education Act should not restrict their competitive basis. An institution of higher statutory restrictions as public institu- students’ rights to free speech or asso- education, a consortium of such institutions, tions. The colleges cite court rulings ciation, as protected under the first or other organizations which desire to re- dating back to the Supreme Court’s and the fourteenth amendments to the ceive a grant or contract under paragraph (1) Dartmouth College case in 1819. Unfor- Constitution. shall submit an application to the Secretary tunately, though, unlike the Dart- Recently, Members of this body have at such time, in such manner, and contain- ing or accompanied by such information as mouth College case of 1819, many of the become concerned over efforts by some the Secretary may reasonably require by private colleges are today not truly colleges and universities to restrict the regulation. private. actions of certain groups on these cam- ‘‘(3) ADDITIONAL REQUIREMENTS.—The Sec- For example, many of these institu- puses. These efforts have included re- retary shall make every effort to ensure— tions receive State and Federal fund- strictions being placed on certain ‘‘(A) the equitable participation of private ing. Donations to them are exempt groups. In at least one instance, a and public institutions of higher education from taxation and, likewise, their prop- school took action against students (including community and junior colleges), erty and income are often provided tax simply for wearing Greek letters on and advantages, even though many private ‘‘(B) the equitable geographic participation their clothing. of such institutions, colleges own and operate businesses Throughout the reauthorization dealing directly with the public. in grants and contracts under paragraph (1). process, we have tried to reduce the In the award of such grants and contracts, The right of association is well estab- regulatory burden placed on institu- the Secretary shall give appropriate consid- lished, Mr. Chairman, in the Constitu- tions of higher education, and we have eration to institutions of higher education tion. In Healy v. James, the Supreme attempted to avoid leveling mandates with limited enrollment. Court said that the vigilant protection from Washington on schools. The gen- ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— of constitutional freedoms is nowhere tleman’s amendment sends a strong There are authorized to be appropriated to more vital than in the community of signal to schools which participate in carry out this subsection $5,000,000 for fiscal American schools. The college class- programs funded under the Higher Edu- year 1999 and such sums as may be necessary room and its surrounding environment for each of the 4 succeeding fiscal years. cation Act that we intend for them to ‘‘(f) NATIONAL RECOGNITION AWARDS.— is the marketplace of ideas, and there honor the rights of their students ‘‘(1) AWARDS.—For the purpose of providing is no new constitutional ground broken under the Constitution, but it does so models of alcohol and drug abuse prevention by reaffirming this Nation’s dedication in a way that does not create a new and education (including treatment-referral) to safeguarding academic freedom. mandate or pit the rights of the insti- programs in higher education and to focus Now, this amendment will simply ex- tution against those of the students. national attention on exemplary alcohol and press the sense of the House on this Mr. Chairman, I urge a ‘‘yes’’ vote on drug abuse prevention efforts, the Secretary matter. It does not force schools to of- this amendment. of Education shall, on an annual basis, make 10 National Recognition Awards to institu- ficially recognize student organiza- The CHAIRMAN pro tempore. The tions. However, it will put Congress on tions of higher education that have devel- question is on the amendment offered oped and implemented effective alcohol and record defending the rights of students by the gentleman from Louisiana (Mr. drug abuse prevention and education pro- who face expulsion and other severe LIVINGSTON). grams. Such awards shall be made at a cere- consequences by daring to enjoy their The amendment was agreed to. mony in Washington, D.C. and a document most basic constitutional freedoms of The CHAIRMAN pro tempore. Are describing the programs of those who receive speech and association, often off cam- there further amendments? the awards shall be distributed nationally. ‘‘(2) APPLICATION.— pus and on their own time. AMENDMENT NO. 81 OFFERED BY MR. KENNEDY ‘‘(A) IN GENERAL.—A national recognition This amendment of mine has the sup- of massachusetts port of a number of organizations award shall be made under paragraph (1) to Mr. KENNEDY of Massachusetts. Mr. institutions of higher education which have which reach across the political spec- Chairman, I offer an amendment. applied to such award. Such an application trum, including the Coalition for Free- The CHAIRMAN pro tempore. The shall contain— dom of Association, the Traditional Clerk will designate the amendment. ‘‘(i) a clear description of the goals and ob- Values Coalition, the ACLU, the Na- The text of the amendment is as fol- jectives of the alcohol and drug abuse pro- tional Interfraternity Conference, the lows: grams of the institution applying. U.S. Public Interest Research Group, ‘‘(ii) a description of program activities Amendment No. 81 offered by Mr. KENNEDY the National Panhellenic Association, that focus on alcohol and other drug policy of Massachusetts: issues, policy development, modification, or the Fraternity Executives Association, At the end of the bill add the following new refinement, policy dissemination and imple- title: the Christian Coalition, and hundreds mentations, and policy enforcement; of local sororities and fraternities na- TITLE XI—DRUG AND ALCOHOL ‘‘(iii) a description of activities that en- tionwide. PREVENTION courage student and employee participation Mr. Chairman, our Nation has, since SEC. 1101. DRUG AND ALCOHOL ABUSE PREVEN- and involvement in both activity develop- its inception, held that individuals TION. ment and implementation; have the right to associate and speak (a) GRANTS AND RECOGNITION AWARDS.— ‘‘(iv) the objective criteria used to deter- freely. In addition, our Nation has long Section 111, as redesignated by section mine the effectiveness of the methods used recognized single-sex organizations, 101(a)(3)(E), is amended by adding at the end in such programs and the means used to and we value their important contribu- the following new subsections: evaluate and improve the program efforts; ‘‘(e) ALCOHOL AND DRUG ABUSE PREVENTION ‘‘(v) a description of special initiatives tion to our society. Students attending GRANTS.— used to reduce high-risk behavior or increase private colleges have the right to enjoy ‘‘(1) PROGRAM AUTHORITY.—The Secretary low risk behavior, or both; and the same freedoms of association and may make grants to institutions of higher ‘‘(vi) a description of coordination and net- speech that all of us hold everywhere education and consortia of such institutions working efforts that exist in the community May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2873 in which the institution is located for pur- But, Mr. Chairman, colleges and uni- equal educational opportunity for individ- poses of such programs. versities around the country are trying uals with learning disabilities in postsecond- ‘‘(B) ELIGIBILITY CRITERIA.—All institu- to figure out how to deal effectively ary education. ‘‘(b) AWARD BASIS.—Grants, contracts, and tions of higher education which are two- and with excessive alcohol use. four-year colleges and universities that have cooperative agreements shall be awarded on established a drug and alcohol prevention There are some terrific programs a competitive basis. and education program are eligible to apply that should serve as models. For exam- ‘‘(c) AWARD PERIOD.—Grants, contracts, for a National Recognition Award. To re- ple, at Northern Illinois University in and cooperative agreements shall be awarded ceive such an Award an institution of higher the district of the gentleman from Illi- for a period of 3 years. education must be nominated to receive it. nois (Mr. HASTERT), binge drinking has ‘‘SEC. 412B. ELIGIBLE ENTITIES. An institution of higher education may dropped by 30 percent as a result of a ‘‘Entities eligible to apply for a grant, con- nominate itself or be nominated by others program that includes alcohol-free tract, or cooperative agreement under this chapter are institutions of higher education such as professional associations or student housing. Nonetheless, we need to en- organizations. with demonstrated prior experience in meet- sure that every college and university ‘‘(C) APPLICATION REVIEW.—The Secretary ing the postsecondary educational needs of of Education shall appoint a committee to can offer comprehensive and effective individuals with learning disabilities. review applications submitted under sub- drug and alcohol programs. ‘‘SEC. 412C. REQUIRED ACTIVITIES. paragraph (A). The committee may include The amendment I am offering would ‘‘A recipient of a grant, contract, or coop- representatives of Federal departments or provide grants for colleges to establish erative agreement under this chapter shall agencies whose programs include alcohol and alcohol and drug treatment counseling use the funds received under this chapter to drug abuse prevention and education efforts, and drug education and alcohol edu- carry out each of the following activities: ‘‘(1) Developing or identifying innovative, directors or heads (or their representatives) cation. Secondly, this amendment au- of professional associations that focus on effective, and efficient approaches, strate- prevention efforts, and non-Federal sci- thorizes the Secretary of Education to gies, supports, modifications, adaptations, entists who have backgrounds in social confer national recognition awards and accommodations that enable individuals science evaluation and research methodol- each year to 10 schools that success- with learning disabilities to fully participate ogy and in education. Decisions of the com- fully address alcohol and drug abuse on in postsecondary education. mittee shall be made directly to the Sec- campus. ‘‘(2) Synthesizing research and other infor- retary without review by any other entity in Binge drinking robs the best and mation related to the provision of services to the Department of Education. individuals with learning disabilities in post- brightest of our children’s futures, secondary education. ‘‘(D) REVIEW CRITERIA.—Specific review cri- their health and too often their lives. teria shall be developed by the Secretary in ‘‘(3) Conducting training sessions for per- conjunction with the appropriate experts. In Let us give parents and students and sonnel from other institutions of higher edu- reviewing applications under subparagraph colleges the resources they need to ef- cation to enable them to meet the special (C) the committee shall consider— fectively combat alcohol and drug needs of postsecondary students with learn- ‘‘(i) measures of effectiveness of the pro- abuse on campus. ing disabilities. ‘‘(4) Preparing and disseminating products gram of the applicant that should include Mr. Chairman, as the gentleman from based upon the activities described in para- changes in the campus alcohol and other Michigan (Mr. KILDEE) once said to me, graphs (1) through (3). drug environment or climate and changes in ‘‘Do not keep chasing a streetcar that ‘‘(5) Coordinating findings and products alcohol and other drug use before and after you are already on,’’ and in that re- from the activities described in paragraphs the initiation of the program; and gard, I will keep my remarks short. (1) through (4) with other similar products ‘‘(ii) measures of program institutionaliza- and findings through participation in con- tion, including an assessment of needs of the Mr. GOODLING. Mr. Chairman, we ferences, groups, and professional networks institution, the institution’s alcohol and rise in support of the amendment. involved in the dissemination of technical drug policies, staff and faculty development The CHAIRMAN pro tempore. The assistance and information on postsecondary activities, drug prevention criteria, student, question is on the amendment offered education. faculty, and campus community involve- by the gentleman from Massachusetts ment, and a continuation of the program ‘‘SEC. 412D. PRIORITY. (Mr. KENNEDY). ‘‘The Secretary shall ensure that, to the after the cessation of external funding. The amendment was agreed to. extent feasible, there is a national geo- ‘‘(3) AUTHORIZATION.—For the implementa- The CHAIRMAN pro tempore. Are graphic distribution of grants, contracts, and tion of the awards program under this sub- there further amendments? cooperative agreements awarded under this section, there are authorized to be appro- chapter throughout the States, except that priated $25,000 for fiscal year 1998, $66,000 for AMENDMENT NO. 77 OFFERED BY MRS. MEEK OF the Secretary may give priority, with re- each of the fiscal years 1999 and 2000, and FLORIDA spect to one of the grants to be awarded, to $72,000 for each of the fiscal years 2001, 2002, Mrs. MEEK of Florida. Mr. Chair- a historically Black college or university 2003, and 2004. man, I offer an amendment. that satisfies the requirements of section (b) REPEAL.—Section 4122 of the Elemen- The CHAIRMAN pro tempore. The 412B. tary and Secondary Education Act of 1965 (20 Clerk will designate the amendment. U.S.C. 7132) is repealed. ‘‘SEC. 412E. AUTHORIZATION OF APPROPRIA- The text of the amendment is as fol- TIONS. Mr. KENNEDY of Massachusetts. Mr. lows:. ‘‘There are authorized to be appropriated Chairman, again, let me thank the gen- Amendment No. 77 Offered by Mrs. MEEK of to carry out this chapter $10,000,000 for each tleman from Pennsylvania (Mr. GOOD- Florida: of the fiscal years 1999 through 2001.’’. LING), chairman of the Committee on Page 349, after line 9, insert the following: Mrs. MEEK of Florida. Mr. Chair- Education and the Workforce, and the TITLE XI—EQUAL OPPORTUNITY FOR IN- man, I thank the committees and the gentleman from California (Mr. DIVIDUALS WITH LEARNING DISABIL- people who helped to bring this piece of MCKEON), as well as the gentleman ITIES legislation and this amendment to the from Michigan (Mr. KILDEE) for their SEC. 1101. DEMONSTRATION PROJECTS ENSUR- floor. I want to thank the gentleman support of this amendment. ING EQUAL OPPORTUNITY FOR INDI- from Michigan (Mr. KILDEE); I want to VIDUALS WITH LEARNING DISABIL- A recent Harvard study found that 95 ITIES. thank the gentleman from California percent of all violent crimes and 90 per- Subpart 2 of part A of title IV, as amended (Mr. MCKEON); and I want to thank the cent of all rapes on college campuses by section 405, is further amended by adding gentleman from Missouri (Mr. CLAY), are alcohol-related. Alcohol on cam- at the end the following: who has sort of mentored me since I puses is a factor in 40 percent of all CHAPTER 6—DEMONSTRATION have been here; also, the gentleman academic problems, and almost one- PROJECTS ENSURING EQUAL OPPOR- from Pennsylvania (Mr. GOODLING); and third of all college dropouts. TUNITY FOR INDIVIDUALS WITH of course my colleague, the gentle- This should not come as any surprise LEARNING DISABILITIES woman from Kentucky (Mrs. NORTHUP) to someone who has visited a college ‘‘SEC. 412A. PROGRAM AUTHORITY. and her staff, who have been very help- campus lately. From the very first day ‘‘(a) IN GENERAL.—The Secretary may ful in putting this amendment to- of school, students are bombarded with award grants to, and enter into contracts gether. messages and promotions and peer and cooperative agreements with, not more Mr. Chairman, what we are doing than 5 institutions of higher education that pressure that encourage binge drink- are described in section 412B for demonstra- here is trying to help college students ing. Local bars aggressively promote tion projects to develop, test, and dissemi- who have learning disabilities, and this special offers like ‘‘ladies drink free’’ nate, in accordance with section 412C, meth- amendment will bring that help to col- or ‘‘dollar pitchers’’ or ‘‘bladder bust.’’ ods, techniques, and procedures for ensuring lege students which now is already H2874 CONGRESSIONAL RECORD — HOUSE May 6, 1998 being received by students in K In the matter proposed to be added to the higher education that have learning through 12. Higher Education Act of 1965 by the amend- disabilities. According to the National Institutes ment, strike proposed section 412D and re- designate proposed section 412E as section I believe this will not only help those of Health, and I must cut this short be- kids that are being educated in these cause the gentleman from Missouri 412D. The CHAIRMAN pro tempore. Is five institutions, but those other insti- (Mr. CLAY) said they would take away tutions around the country that are the votes if I did not cut this discus- there objection to the modification to the amendment offered by the gentle- looking for the best examples so that sion, but according to the National In- they can pattern within their schools stitutes of Health, more than 39 mil- woman from Florida (Mrs. MEEK)? the best ways to help kids who are tal- lion Americans have some type of There was no objection. Mr. GOODLING. Mr. Chairman, we ented but struggling. I think this is learning disability. People really do accept the amendment of the lovely good for a lot of children. not understand the impact of this dis- lady from Miami (Mrs. MEEK). Mr. Chairman, I join the gentle- ability, these disabilities. Mrs. NORTHUP. Mr. Chairman, I rise The gentlewoman from Kentucky woman from Florida (Mrs. MEEK) in in support of the amendment. hoping that the Department of Edu- (Mrs. NORTHUP) and I cochair the Read- Mr. Chairman, I would like to speak cation will seek out an institution that ing Caucus. Thanks to the gentle- in favor of this amendment and to primarily serves minority students, woman, we are working on many of thank the gentlewoman from Florida these problems, and this particular since they are disproportionately rep- (Mrs. MEEK) for bringing it to the at- resented in this population and ensure amendment, added to the Higher Edu- tention of this body. cation Act, will certainly focus the at- As the mother of six children, I un- that one of those institutions will tention of the Nation on the need of derstand the frustration of trying to serve as an example. helping college students with learning ensure that one’s child receives the Mr. Chairman, I thank the gentleman disabilities. very best education available. If one’s from Pennsylvania (Mr. GOODLING) for Many of these college students are child has a learning disability, we his willingness to accept this amend- very, very bright. They make excellent know the frustration and the hopeless- ment. mathematicians, excellent academi- ness of searching for the answers to Ms. ROS-LEHTINEN. Mr. Chairman, cians, but they do not read that well provide one’s son or daughter with the due to learning disabilities. Some of I move to strike the requisite number tools necessary for him or her to suc- of words. these learning disabilities are very ceed in this world. well-known and others are not. The gentlewoman from Florida (Mrs. Unfortunately for many who suffer What we are saying here is that there MEEK) and I have had an opportunity from a learning disability, there exists are many, many things that colleges to work closely together to ensure that no cure. These serious impediments are and universities can be doing, Mr. children that have learning disabilities a lifelong disorder for many and 15 per- Chairman, in the area of auditory and have a better opportunity to receive cent of our population must learn to visual kinds of learning devices, help- early in their education an opportunity live with this disability. It is time that ing teachers learn how to teach these to learn to read and learn to read well, all of us as responsible Members of students better; being sure that the so that they can achieve at every level Congress address those 15 percent whole universe of education and higher in their education. whose future in education depends on education will understand the kinds of our actions here. b 1645 modalities and the types of learning The amendment offered by the gen- techniques that can be utilized in help- But unfortunately, some children tlewoman from Florida (Mrs. MEEK) today do not receive that intervention ing these students. We feel that the and the gentlewoman from Kentucky Federal Government, to a great extent, and some children have gone through (Mrs. NORTHUP) does just that. It will the early years of their schooling with- is going to help in doing this by provid- authorize the Secretary of Education out having the opportunity to fully de- ing free and appropriate education for to award grants, contracts, and cooper- velop their talents in school in some students who are in higher education. ative agreements to institutions of Rather than break my vow, Mr. areas in which they are disabled. But higher education which competitively Chairman, I would like to say that that does not mean that they may not demonstrate methods, techniques and when we get this in the Higher Edu- be very talented and students that can new approaches in educating students cation Act, it will mean a lot to many do very well in college. with learning disabilities. students. Think of them. Either we Many colleges have struggled with help them now, or we help them later. giving these children better opportuni- Mr. Chairman, passing this amend- Many of the students who come into ties. They have set up programs for ment will be the first step in ensuring college with poor reading ability never learning disabled kids and they are equal opportunities in post-secondary get anyplace, even though they are struggling to help them achieve at the education for individuals with learning very bright students, but because of highest level. disabilities. Serious disorders such as their lack of reading ability, they have What this bill does is create five dyslexia and attention hyperactivity a problem. demonstration projects so that schools disorder are currently affecting 2.6 mil- So I appreciate so much the commit- can look to the best examples of reme- lion children who are diagnosed as tee and the Members who have helped diation in areas that children are weak learning disabled under the Individuals us put this together. It is a problem, so that in areas in which they are with Disabilities Education Act in ele- and it is a modest step toward filling strong they can still be high achievers. mentary and secondary education. the gap. But we do know we are mak- We need every talent in our workplace Congress has already found that ‘‘2 ing a start here, the gentlewoman from today. We need for every child to be percent of all undergraduate students Kentucky (Ms. NORTHUP) and I, and we able to realize their dreams and their nationwide report having a learning are encouraged by this inclusion in the goals and their talents. disability.’’ In fact, we have already Higher Education Act. What this bill does is make sure that recognized that different teaching MODIFICATION TO AMENDMENT NO. 77 OFFERED those children who have special needs strategies are needed to enable those BY MRS. MEEK OF FLORIDA and special talents receive the best op- students to develop their talents and Mrs. MEEK of Florida. Mr. Chair- portunity at higher education levels so performance up to their capabilities. man, I ask unanimous consent to mod- that they can become the chemists and Let us help those students by passing ify my amendment with the modifica- the teachers and the people that are the Meek-Northup amendment. Mr. tion that is already at the desk. leaders in their areas tomorrow. The CHAIRMAN pro tempore. The Mr. Chairman, I want to thank the Chairman, I also thank the gentleman Clerk will report the modification to gentlewoman from Florida (Mrs. MEEK) from Pennsylvania (Chairman GOOD- the amendment offered by the gentle- for all the time and energy she has put LING), who has been very supportive and very cooperative on this serious woman from Florida (Mrs. MEEK). into this bill. She has been a leader on The Clerk read as follows: it. She has brought to the attention of issue. Modification to amendment No. 77 offered many people in this Congress the prob- Ms. BROWN of Florida. Mr. Chairman, I by Mrs. MEEK of Florida: lem of our talented children who are in agree with my distinguished colleagues and May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2875 support their groundbreaking initiative to offer Illinois (Mr. HASTERT) each will control 360 programs; dropped, 114. Added 360, legislation which will provide continued support 30 minutes. dropped 114. Again, a steady growth in for college and university students with learn- The Chair recognizes the gentleman the number of men and women partici- ing disabilities and this includes students who from Indiana (Mr. ROEMER). pating. are attending community colleges as well. Mr. ROEMER. Mr. Chairman, I yield So I think that the need for this The most recent survey of college freshmen myself 6 minutes. amendment is just simply not there. I with disabilities reported that the number of Mr. Chairman, I offer this amend- empathize and I sympathize with those students with learning disabilities is increasing ment in a bipartisan spirit with the athletes at schools that close or shut and the percentage is now at 32% for college gentleman from California (Mr. RIGGS), down a particular athletic program. freshmen. my friend, and I offer it to eliminate But the Federal Government should These non-traditional college students de- language in the bill that is a Federal not be telling each and every univer- serve a chance, and we have the legislative mandate to our colleges and univer- sity in the country you have got to do strength to make a difference in their lives sities that is an intrusion into the way a four-year report ahead of time if it is today, tomorrow, and in the future. they conduct their business on a day- likely or may occur. I do not think Support for this amendment will send a to-day basis and micromanages from that that is the way we should be run- message to America, that Members of Con- Washington, D.C. schools across the ning this country with a Federal man- gress care and believe education is key for country telling them how they should date. I strongly oppose that. our nation. run their sports programs. Mr. Chairman, I said I offered this in Mr. TOWNS. Mr. Chairman, I rise today in Now, we have heard constantly the spirit of bipartisanship with the strong support of the Meek-Northup learning through the last couple of years that gentleman from California (Mr. RIGGS), disabilities amendment to H.R. 6, the Higher Washington, D.C. does not know best. my friend. I offer this in the spirit of Education Reauthorization Act. Why is there language in this bill tell- arguing against micromanaging our According to the National Institute of Health, ing colleges and universities through- programs, against Federal intrusion, there are 39 million Americans with learning out the country the Washington way of against ‘‘Washington knows best’’ and disabilities. This amendment would ensure running their sports programs? telling Indiana, Kentucky, California, that young people with the ability to be high Now, I encourage my colleagues and Florida, Connecticut, telling all of achievers can accomplish their goals to be their staffs to read the language in the those States and all of those schools doctors, engineers, lawyers, and teachers. bill on page 246, and I quote from that how they should report to the Federal While there are Federal programs to help el- language: Government. ementary and secondary school students with But, Mr. Chairman, I think one of the We are requiring in this language a state- most compelling arguments is this. learning disabilities, there are none for college ment of any reduction that may or is likely students. This vital legislation authorizes $10 to occur during the next four academic years When we take the serious step in this million a year for five demonstration projects in the number of athletes that will be per- country of shutting down a plant and at colleges or universities. Each institution mitted to participate in any collegiate sport employees lose their job, there is a 30- would be responsible for developing programs, or in the financial resources that the institu- day notice for those employees that strategies, and approaches for teaching indi- tion will make available to any such sport, may lose their job. In this bill this lan- and the reasons for any such reduction. viduals with learning disabilities at the college guage requires 4 years, 4 years ahead of level. It would also ensure that teachers and So we are saying they have to tell time if colleges are thinking of chang- institutions across this nation have access to the Federal Government any reduction ing an athletic program. a national repository of information on teach- that may or it may be likely to occur This is the higher education bill. We ing the learning disabled student. and the reasons for that reduction. do not even say in this bill if they are As our global economy moves toward the Mr. Chairman, we have received let- going to shut down a French program, 21st century, such efforts would create a level ters from all over the country from an abroad study program, or a mathe- playing field for all children of this great nation. universities and colleges from all over matics computer program that they Our children are our future. It is our respon- the country saying this is a Federal have to report to the Federal Govern- sibility to ensure that their future is bright. mandate. We do not want this language ment. But in this bill we say if they are There must not be any children left behind. in the bill. We have received letters thinking about canceling an athletic Mr. Speaker, I urge my colleagues to vote from the National Collegiate Athletic program they better report it. They ``YES'' on the Meek-Northup amendment. Association that I will enter into the better report it. The CHAIRMAN pro tempore (Mr. RECORD. This says from the NCAA, and Mr. Chairman, we did the Contract EWING). The question is on the amend- I quote, ‘‘this provision represents an for America and everything in that bill ment, as modified, offered by the gen- unparalleled federal intrusion into the said, ‘‘No more Federal mandates.’’ I tlewoman from Florida (Mrs. MEEK). decision-making process of our nation’s encourage my colleagues to vote to The amendment, as modified, was colleges and universities.’’ An unparal- strike this Federal mandate out of this agreed to. leled Federal intrusion. bill. The CHAIRMAN pro tempore. Are Now, I have, however, even with all Mr. Chairman, I include for the there further amendments? of this, I have, I think, some under- RECORD the letter from the NCAA re- ferred to earlier. AMENDMENT NO. 75 OFFERED BY MR. ROEMER standing of why the language was put in the bill. When athletes and scholars THE NATIONAL COLLEGIATE Mr. ROEMER. Mr. Chairman, I offer ATHLETIC ASSOCIATION, an amendment. at universities enroll in a university Washington, DC, April 28, 1998. The CHAIRMAN pro tempore. The and then that wrestling program or DEAR MEMBER OF CONGRESS: On behalf of Clerk will designate the amendment. that swimming program may be can- the 933 NCAA member colleges and univer- The text of the amendment is as fol- celed, that leaves that scholar and that sities, I am writing to urge your support for lows: athlete in a very untenable situation an amendment to be offered by Representa- and I have sympathy for that. But it is tives Riggs and Roemer to the Higher Edu- Amendment No. 75 offered by Mr. ROEMER: cation Act Amendments of 1998 (H.R. 6). The At the end of the bill add the following new not sweeping the country. It is not something that is causing athletic de- Riggs/Roemer amendment will strike a pro- title: vision that was recently added by the Com- TITLE XI—SPECIAL PROVISION partments and schools to shut down. mittee on Education and the Workforce re- SEC. 1101. TERMINATION OF EFFECTIVENESS. And I point to the graph on my right lated to institutional program decisions, spe- Notwithstanding section 4 of this Act, sub- where we have had a steady growth in cifically in the area of college athletics pro- paragraph (K) of section 485(g)(1) of the High- the number of both men and women’s grams. er Education Act of 1965, as amended by this programs, each of the ensuing aca- The provision of H.R. 6 would require all Act, shall cease to be effective on October 1, demic years, more women participat- postsecondary institutions to report annu- 1998. ing, more men participating. ally any changes that ‘‘may or are likely to occur’’ in any intramural or intercollegiate The CHAIRMAN pro tempore. Pursu- In addition to that, Mr. Chairman, athletics program over the next four years ant to the order of the Committee of here in 1996 and 1997, the number of and justify the decision. This provision was today, the gentleman from Indiana programs added in that academic year added without the benefit of hearings, dis- (Mr. ROEMER) and the gentleman from in men and women’s programs, added, cussion with the Committee’s members or H2876 CONGRESSIONAL RECORD — HOUSE May 6, 1998 consultation with the higher education com- b 1700 nent information out of a student’s munity. In order for institutions to continue In effect, this notification could take hands. The fact that a school has de- to be eligible for federal student assistance, cided to drop a sport is important in- the provision requires the impossible—it place 1 or 2 or 3 years before the actual asks institutions to predict the future. In ad- termination. The key point is, once formation that kids and parents have a dition, this provision represents an unparal- they decide, they need to disclose. right to know before they decide which leled federal intrusion into the decision- Colleges and universities enjoy a spe- college they invest their time and their making process of our nation’s colleges and cial position in this country. As par- talents in. universities. ents, we entrust them with the edu- I would certainly prefer that the NCAA member colleges and universities NCAA deal with this matter by seeking have added thousands of sports teams for cation of our children. In return, we men and women over the past 20 years. Dur- should expect that they act in a man- the voluntary cooperation of their ing the same time period, relatively few ner that justifies this trust, and that member institutions. In my office last teams have been dropped. When a sports certainly does not include making de- week, I met with representatives of the team is dropped, the welfare of the student- cisions which affect our kids’ lives American Council on Education, ACE, athlete is the first priority. Although the without honestly disclosing those deci- the NCAA, and the small colleges. We sponsors of the provision may have well-in- sions to them. agreed in that meeting that I would tended motives, this provision will have the I, for myself, cannot believe that support removal of this provision in unintended consequence of actually hasten- conference if the NCAA would simply ing the elimination of the very men’s non- Congress will send the message to col- revenue sports it is intended to protect. By lege students that it is all right for urge members to embrace voluntary placing them on a list for possible elimi- schools to knowingly not tell them and notification requirements. nation, it will serve as an early death notice the athletes and students and prospec- The next day, I received a letter from to those teams. tive students about the status of the the president of the NCAA, the ACE, The NCAA urges you to support the Riggs/ sport which they care about. If we confirming that agreement, and was Roemer amendment related to collegiate allow this to happen, it would certainly prepared to come to the floor and enter sports teams. Please contact Doris Dixon, into a colloquy with the distinguished NCAA director of federal relations (202–293– send the wrong message that right and 3050), if you have any questions about this wrong does not apply if you are a col- Member from California (Mr. MCKEON) provision or the NCAA’s position. lege or a university. to that effect. But sadly, on Tuesday I Sincerely, Mr. Chairman, in 2 short years, be- received a letter from the NCAA actu- CEDRIC W. DEMPSEY. tween 1994 and 1996, nearly 200 colleges ally breaking the deal. They simply Enclosure. and universities canceled sports pro- want this Congress to go away and let Mr. HASTERT. Mr. Chairman, I yield grams. That is thousands of kids who them do whatever they please. myself such time as I may consume. will never again have the opportunity Mr. Chairman, if the NCAA were a (Mr. HASTERT asked and was given real estate agent trying to sell a house permission to revise and extend his re- to participate at the collegiate level, opportunities that many of us once en- without disclosing leaky roofs or a marks.) used car salesman trying to sell flood- Mr. HASTERT. Mr. Chairman, I rise joyed. damaged cars without disclosure to the in opposition to the amendment offered I wonder how many of the kids who consumers, I dare say colleagues on by the gentleman from Indiana (Mr. played on these teams were warned that their teams were slated for elimi- both sides of the aisle would demand ROEMER). Mr. Chairman, it is interesting to lis- nation? I wonder if any of them would action. ten to rhetoric. In fact, we need to un- have chosen a different school if they A college education is one of the derstand what this provision in the bill had known in advance that the school most important purchases any student really does. It is one of the foundations was planning to drop their sport? and their parents will ever make. What of our educational system that our Many universities are doing the right is wrong with asking these universities kids should be taught the difference be- thing, and I applaud them. But in some and NCAA to simply tell the truth? tween right and wrong. Should we not cases, the affected students are the last A ‘‘yes’’ vote on this amendment is a teach our kids to be honest and forth- to know about the plans to drop their vote against kids knowing what their right? And should we not teach our team. future will be and the families’ right to kids that rules apply equally to every- Mr. Chairman, let me tell my col- know. I urge my colleagues to defeat one? leagues about the experiences of Scott the amendment. Answering these questions is what Gonyo and his teammates. In 1993, Mr. Chairman, I reserve the balance today’s debate and the Roemer amend- Drake University decided to eliminate of my time. ment is all about. The Roemer amend- one of its, not a major sport, so it was Mr. ROEMER. Mr. Chairman, I yield ment says that it is basically okay for either wrestling or track or soccer or 2 minutes to my good friend, the gen- colleges and universities not to tell swimming. When they eliminated their tleman from the State of California prospective students that they plan to teams in 1993, did the school take the (Mr. DOOLEY). eliminate or reduce the funding for time to notify the team that they were (Mr. DOOLEY of California asked and sports programs that kids plan to par- being dropped? No. Did the athletic di- was given permission to revise and ex- ticipate in once they enroll. rector take the time to notify them of tend his remarks.) Mr. Chairman, I view this as a mat- the cancellation of their sport? No. Mr. DOOLEY of California. Mr. ter of honesty and simple fairness. I Scott Gonyo and his teammates found Chairman, as Members of Congress, we would ask anyone, should schools be out when the members of the media are constantly asked to make decisions able to hide from students the fact that called them for reaction. on what is the appropriate role of the they are planning to terminate their I do not know about anyone else, but Federal Government. Today I rise in competitive sport, a sport that weighed I think this sends a terrible message support of the Roemer amendment be- heavily in their life decision about about how some colleges and univer- cause I think it is absolutely clear that which school they should attend in the sities are treating the very kids they the Federal Government has no role in first place? And let me be clear, noth- are supposed to serve. mandating and micromanaging the af- ing in this provision prevents schools What the Roemer amendment seeks fairs of the universities and the higher from eliminating sports programs nor to strike from this bill is the right of institutions of education in our coun- does it require them to give 4-years’ students to be informed about deci- try. notice before they do so. I repeat, it sions which affect their lives, and that I find it ludicrous that we would even does not require them to give 4-years’ is all. We all know that kids and par- ask our universities, and by imposing notice before they do so. ents consider a number of factors be- on them a mandate, that they would All this language requires is that fore deciding which school to attend. have to notify people 4 years in ad- once a school knows it is going to Among these factors is the ability to vance of a decision that they might eliminate a team, they must notify the participate in sports, for some stu- have to make in order to eliminate or affected athletes by giving notice; not dents. reduce an athletic program. notice to the Federal Government, just I cannot believe that anyone would This provision is absolutely insane in notice in a yearly report. support a college’s effort to keep perti- that it is, in fact, going to reduce the May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2877 ability of our universities to allocate Many of them have careers if profes- This is, by no means, criticism of my their resources, to ensure that they are sional careers are available in their son’s school. They have treated him going to be investing those funds in the sports. more than fairly, informed the stu- most cost-effective manner. Those opportunities are growing for dents on that team of the crushing We would be hamstringing the board women, as they have been for men for news that they are going to drop swim- of regents in California and the admis- many years. That is all great, and a ming next year. sion of our universities that have been great opportunity for some very tal- I think it is important that this body appointed to make the decision to en- ented young people in this country. know that just 4 years ago, they built sure that they can create the academic Athletics also teach us a lot of other a $14 million swimming and athletic experience and the college experience things. It teaches kids about hard complex to accommodate this team which is in the best interest of the stu- work. It teaches kids about sportsman- that now they are being forced to drop. dents that are going to be attending. ship. It teaches kids about learning to Is that a waste or what? What does the As I was listening to the last speak- lose and to start over again, to pick Department of Education think about er, I thought it was somewhat interest- themselves up when they are down. that? ing that he feels it so important that Those are lessons that help all of us for In the meantime, let us leave the lan- we provide students and families with all of our lives. So when we look at guage in the bill. Let us get this bill to the information about a potential re- athletics, I am thrilled to see colleges the conference committee. Let us see if duction in an athletic program, but looking for the best ways to provide between the Senate and the House we there is absolutely no attention being the most opportunities for the most can figure out a way to make things given to a potential decision that students. better for all women athletes and all might result in the reduction of an aca- Because of the Department of Edu- men athletes. demic program. cation’s accelerated or new pressure Mr. ROEMER. Mr. Chairman, I yield that they are applying on many ath- I also find it somewhat ironic that 21⁄2 minutes to the gentlewoman from letic programs, there are an increased many of the people who are some of the Palo Alto, California (Ms. ESHOO). strongest proponents of asking for this number of programs that are being Ms. ESHOO. Mr. Chairman, I would 4-year notification were some of the jeopardized today. Many times, because like to start out today obviously in same people that were opposed to giv- the colleges have little time to act, strong support of the Roemer amend- they are being forced to eliminate ing the working men and women of this ment, a proposal to restore the ability men’s teams and to add women’s teams country a 30-day notification of a po- of colleges and universities to carefully in order to try to equalize the opportu- tential plant closure. design and budget their own athletic nities. When we have working men and programs. women and their families whose liveli- All of us applaud the new opportuni- ties for women. It has made a wonder- I would like to add this for the hoods, whose ability to keep a roof ful difference in a couple of my daugh- record, because some of my colleagues over their heads, whose ability to pro- ter’s lives. on the other side of this issue are talk- vide food for their families, when we It has not made such a wonderful dif- ing about NCAA sports: In 1996–1997, are opposed to giving them 30 days’ no- ference in my son’s life, though. This this represents men’s and women’s tification, and yet we think it is appro- year he is a junior in college. He is a sports. I do not know where all of this priate to give 4 years’ notification on a champion swimmer. At one point, he is coming from of what has been university decision to reduce an ath- was the second fastest swimmer in the dropped. Look at what has been added, letic program, that is just wrong and it butterfly in the country. Next year, it 360, this is what has been dropped. I is irresponsible. looks as though his school may not think that this is a very provocative Mr. HASTERT. Mr. Chairman, I yield have swimming, so he loses his oppor- number and something that our col- as much time as she may consume to tunity to ever go on and an oppor- leagues should pay close attention to. the gentlewoman from Kentucky (Mrs. tunity to ever be the top in the coun- Without the Roemer amendment, NORTHUP). try, ever be in the Olympics. H.R. 6 would force institutions to make Mrs. NORTHUP. Mr. Chairman, I rise So why does he not go to the another irrevocable decisions about which pro- to speak against this amendment. First school? Because all of his credits are in grams will receive funding far in ad- of all, I think it is so amazing that the one school. He loves that school. He vance of current requirements. The people that are sponsoring this amend- has invested a lot of time, a lot of en- Roemer amendment strikes a provision ment wish to talk about mandates on ergy, a lot of effort in that team. The which represents, in unparalleled Fed- colleges and universities across this fact is that that school has no time to eral intrusion, Federal micromanage- country. The fact is, almost all deci- adjust because of the Department of ment and Federal mandates. sions being made about college sports Education. The NCAA supports this amendment. today have everything to do with the I am so sorry that our colleagues Their statistics further reveal that the Department of Education interfering that are sponsoring this bill are not original provision is unnecessary. I am and mandating on colleges about what screaming about that sort of intrusion very, very proud to represent Stanford sports requirements they are under. in colleges today. If we had a little University whose outstanding aca- This is not something that will be ini- more time, we could probably grow bet- demic and athletic accomplishments tiated; this is something that is going ter women’s sports opportunities and can be matched by few. on right now. not endanger men’s sports. But since The university sponsors 17 varsity We all believe that sports are great we have this intrusion that exists women’s sports, and their list of cham- for women and for men that are in col- today, and because nobody on the other pionships is stunning. National lege. They serve a wonderful purpose. side has talked about that, I think it is volleyball champions 3 of the last 4 They provide these young people, first better, very important to understand years, national tennis championships of all, an opportunity for scholarships, why some teams are being eliminated. 10 times in the last 20 years. In 20 provide many of them an opportunity In the meantime, what my colleague years, the varsity women’s swimming, at institutions of education that they is proposing is that students who are they have won eight national titles. would not have if they were not able to trapped at a school, who love that The Stanford women’s basketball receive these athletic scholarships. It school dearly, they at least be in- team has been in the final four six also gives them an opportunity to com- formed as early as the school knows times in the 1990s and national cham- pete on a higher level. that it is about to drop a particular pions in 1991 and 1992. Stanford’s record Many of these students are very tal- sport. That is the least we can do so offers compelling proof that women’s ented in athletics. Many will have op- that they have an opportunity to con- success does not harm a college’s ath- portunities to use these talents in sider what this means in their lives, so letic program. other arenas. They go on and become that they have an opportunity to fulfill b our Olympic stars. They go on and their talents and their dreams, even if 1715 compete internationally. They rep- changing schools is the only way to do Is the Congress going to require that resent this country around the world. it. universities and colleges submit to us H2878 CONGRESSIONAL RECORD — HOUSE May 6, 1998 in a report as to whether they are leagues will read the Hastert proposal, sources that the institution will make going to drop their Japanese overseas what he is saying is all they have to do available to any such sport and the programming? This is ludicrous. This is notify the students once they make reasons for any such reduction.’’ That is not being applied to anything that is the decision to phase out a certain ath- is a tremendous burden and require- academic but only that which is ath- letic program. ment to place on our colleges. I happen letic. This, as I said, maybe it is not pro- to think it goes too far. The gentleman The Roemer amendment would en- university, maybe it is not pro-institu- from Illinois and I have talked about sure that Stanford University and the tion, maybe it is not pro-system, but it this. rest of our Nation’s colleges and uni- does become pro-child, pro-student, I have heard from the University of versities have the necessary flexibility pro-athlete and, therefore, I think it is Delaware president. Used to be presi- to continue to develop such strong ath- pro-sports. dent of the University of Kentucky. letic and academic programs free of The gentlewoman from Kentucky And David Roselle writes and says, Federal intrusion, free of Federal (Mrs. NORTHUP) talked with great pride It is demeaning for the Congress of the micromanagement, and free of Federal about what sports meant to her six United States to be mucking about in the mandates. I urge my colleagues on children, and the positive impact that management of intercollegiate athletics. both sides of the aisle to vote for the sports programs can have to all of our I happen to totally agree with that par- Roemer amendment. children is very, very important. So ticular statement. Mr. HASTERT. Mr. Chairman, I yield why not be fair to America’s kids; that Why are we getting involved in such time as he may consume to the if they enroll in a college or a univer- micromanaging decisions at the college gentleman from Georgia (Mr. KING- sity that has a sports program, should and university level? Do we not have STON). they not be notified when the college better things to do here in this Con- Mr. KINGSTON. Mr. Chairman, I or university has made the decision to gress? thank the gentleman for yielding me phase out that program? That is the And then he went on to make the this time. only thing that the gentleman from Il- point, I want to say, Mr. Chairman, that the linois is trying to get in the bill. Schools simply do not know, and neither previous speaker spoke about the rise I urge my colleagues to vote against does the Congress, what forces will come of women’s sports. And as the father of the Roemer amendment and vote for into play in the next 4 years that would two daughters, and someone who en- the children of the United States of make program reductions on campus both joys watching my girls participate in America. necessary and appropriate. soccer, basketball, or whatever, I am Mr. ROEMER. Mr. Chairman, I yield Again, I could not agree more with glad that there will be a lot more op- 2 minutes to the gentleman from the that particular point. It absolutely hits portunities for them. But I also want State of Delaware (Mr. CASTLE). the nail on the head. Four years is a to say, as I look at this bill, this is not Mr. CASTLE. Mr. Chairman, I thank long time. a matter of what is convenient for the gentleman for yielding me this I think for all these reasons, while Stanford University or for the Univer- time, and I do rise in support of his the intent is good, this is not good to sity of Virginia or the University of amendment. have in this legislation. We ought to Georgia or Berkeley or whatever. This I have a lot of sympathy with what take it out and we should pass the Roe- is a matter of putting the kids before the gentleman from Illinois (Mr. mer amendment. the system, putting the kids before the HASTERT) is trying to do, and I have a Mr. HASTERT. Mr. Chairman, I yield faceless institution. lot of sympathy for those who played myself such time as I may consume to Think about the private sector a sports through high school and college. remind my good friend from Delaware minute. We have so many people in our I did a little bit. I was not very good, that the language says anytime within body who talk about disclosure in all but it was a great thing to do. that 4-year period. So the interpreta- aspects of the private sector; worker I have listened to what others have tion is if they decide in 1 year, or 2 safety, materials used on job sites, said, but I do not know why we are get- years, or 3 years, or 4 years, whenever what we eat, what is in the water. ting involved with this and, hopefully, that decision is, they just ought to Whatever it is. What is in the air. What we can work it out some other way. I come forward and let kids know. is being discharged. All of this has to do not think this should be in our leg- It does not say they cannot do this. be disclosed, and yet this body, who so islation, and I think the Roemer It does not restrict them in any way. It readily puts such disclosure mandates amendment should pass. just says there should be notice given, on the private sector, now has Mem- For example, what if a college not a restriction of the Federal Gov- bers saying let us not put that on the changes its academic courses? Do they ernment. And this is really kind of a public sector. have to give 4 years’ notice of that, if red herring to cross this path. We are What is this horrible mandate that someone is majoring in something? just saying notice ought to be given. we are putting on the public sector? What if a college like mine becomes co- Mr. Chairman, I reserve the balance And let me clarify, it is not all public educational in the middle of it all? Is of my time. universities. There are private univer- that something we should have to give Mr. ROEMER. Mr. Chairman, I yield sities. But most of them get some sort notice for? My college got rid of frater- 2 minutes to the gentleman from Ten- of Federal funding in one place or an- nities. Believe me, fraternities were big nessee (Mr. CLEMENT), a former univer- other. Think about this, though. Here deals at Hamilton College when I went sity president who will speak to this is a student who is 17, 18 years old; there, and that was a major change, issue. young boy or girl. They are going off to but nobody had to give notice then. Mr. CLEMENT. Mr. Chairman, I college. They have worked real hard to A lot of things happen in colleges, thank the gentleman for yielding me get in the school of their choice. Maybe and I do not think that we should be this time, and I rise today in strong they are going to play baseball, maybe out there interfering with their right support of the Roemer-Riggs amend- wrestling, maybe lacrosse, maybe to govern themselves. As a matter of ment to H.R. 6. The Roemer-Riggs swimming, maybe volleyball. They fact, I would think that would be a Re- amendment would eliminate the bill’s have that opportunity and they are ex- publican principle that we would want language requiring higher education cited about it. And then they get there to follow; that we should simply let institutions to report 4 years in ad- and find out that they are phasing out them make their own decisions. vance the planned elimination of col- the volleyball program or the wrestling I have read the language of this, lege sports. program. That was one reason that stu- which is part of the Student Right to Schools in my district have expressed dent chose university A over university Know Act, and it states: ‘‘A statement their concern that the bill’s current B. And now we are saying that our kids of any reduction that may or is likely language poses an overreaching Fed- are not important enough just to tell to occur during the ensuing 4 academic eral intrusion in the way they operate them that? years and the number of athletes that their sports programs. As a former col- Somebody had said, well, we cannot will be permitted to participate in any lege president, I understand the impor- give them a 4-year warning. If my col- collegiate sport or in the financial re- tance of long-range planning, but it is May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2879 just that; planning. Who knows what universities. I am pleased that both the drop the sport? It would not mean the new budget constraints might face a House and Senate bills have added provisions gentleman would have to hold that school from year to year? Forcing col- to their reauthorization bills that recognize sport. the importance of achieving greater finan- Mr. CLEMENT. Mr. Chairman, will leges and universities to formulate cial transparency. Based on our experiences such far-reaching micromanaging of in attempting to gather and analyze data for the gentleman yield? the athletic policies is simply short- the Commission, however, I would caution Mr. HASTERT. I yield to the gen- sighted and surely not in the best in- against expanding unduly the government’s tleman from Tennessee. terest of our colleges and universities. role in the information-clarification process. Mr. CLEMENT. I tell the gentleman The chairman of the Committee on To the extent that the Senate bill assumes a that I was at a small college university Education and the Workforce, the gen- more limited and focused approach, I think and I had a tough time balancing that it is the stronger of the two measures. The tleman from Pennsylvania (Mr. GOOD- budget. If the gentleman were to put process of developing a better understanding me in a stringent situation such as LING), got a letter not long ago from of university finance includes, but is not lim- the president of Belmont University, ited to, improved reporting to the federal that, where I had to look 4 years out, which happens to be in my Congres- government, beginning with consistent defi- and I could not adjust my budget, the sional District in Nashville, Tennessee. nitions of cost, price, and subsidy. The Com- gentleman would put me in a terrible Dr. Troutt, who also had the oppor- mission, therefore, recommended measures predicament. tunity to serve as chairman of the Na- to strengthen IPEDS reporting and improve Mr. HASTERT. Reclaiming my time, tional Commission on the Cost of High- analysis by the Department of Education of Mr. Chairman, the bill does not say 4 er Education, says this, and he says it the relationship between tuition and institu- years. Whenever the gentleman makes tional expenditures. But we also took pains the decision, up to 4 years. So if the so well: to make clear that much of the clarification This type of congressional action is incon- and communication that needs to take place gentleman were to do it 6 months from sistent with the commission’s recommenda- should take place through existing non-gov- now or 1 year from now, 2 years from tions that colleges intensify their efforts to ernmental channels—between institutions now, or 3 years from now, all I am say- control costs and increase institutional pro- and their constituent families and students ing is when the gentleman were to ductivity. Because the commission stressed directly, through a public awareness cam- make that decision, is it not fair to no- the need for colleges and universities to con- paign sponsored by the higher education tify that student that the gentleman or sider questions of cost effectiveness and effi- community, through national accounting school has made that decision? ciency within academic programs, it would standards bodies such as FASB (the Finan- Mr. CLEMENT. If the gentleman will be inappropriate for Congress to ask schools cial Accounting Standards Board) and GASB to exempt sports programs from similar rig- (the Government Accounting Standards continue to yield, I would say to him orous scrutiny. I recommend you eliminate Board), and through the reports and hand- that I love sports, but I think we are this or any other related provision. books that are already widely distributed in sending our students for academic pur- That is why we all need to join forces the higher education ‘‘market.’’ poses more than we are sports. That is and I encourage a ‘‘yes’’ vote on the Both the House and Senate bills adopt our the paramount importance. recommendation that IPEDS reporting be Roemer-Riggs amendment and firm Mr. HASTERT. Mr. Chairman, I ap- strengthened. To the extent that the House preciate the gentleman’s statement, support for our Nation’s colleges and bill goes beyond this and directs the Sec- universities. retary to develop a uniform cost reporting but the fact is a lot of kids make that Mr. Chairman, I provide for the methodology outside of IPEDS, I would ques- life decision on where they go to school RECORD a copy of the letter I just re- tion whether that is a productive step to based on things like athletics and ferred to. take. If any such effort is undertaken, it other extracurricular activities. Here OFFICE OF THE PRESIDENT, should involve extensive, formal consulta- we are looking at athletics, but that is BELMONT UNIVERSITY, tion with the higher education community. a major decision on young men and Nashville, TN, April 24, 1998. Likewise, I question seriously the wisdom of young women when they decide to go WILLIAM F. GOODLING, asking the General Accounting Office annu- to school. If they made that decision Chairman, House Committee on Education and ally to recapitulate the comprehensive study that the Commission was asked to conduct based on that premise, then they the Work Force, House of Representatives, should be notified of that decision or if Rayburn House Office Building, Washing- on a one-time basis. As our report indicates, ton, DC. we were not able to obtain meaningful data that premise is going to change. DEAR CHAIRMAN GOODLING: As you know, I in many of the categories listed as the focus Mr. Chairman, I reserve the balance was privileged to serve as the Chair of The of an annual GAO report in the House bill. of my time. National Commission on the Cost of Higher Under the circumstances, I would urge Con- Mr. ROEMER. Mr. Chairman, I yield Education. Although we completed our work gress to focus on improving the data through 2 minutes to the gentlewoman from and submitted our final report to Congress in an NCES study, as recommended in the Sen- California (Ms. WOOLSEY), a valuable January of this year, I continue to work ate bill. Whatever the process for developing im- member of the Committee on Edu- hard to ensure that college presidents cation and the Workforce. throughout the nation take the Commis- proved reporting, I urge you to consider two sion’s recommendations seriously. I am substantive points in particular. Any rede- (Ms. WOOLSEY asked and was given pleased to report that many institutions sign of reporting categories should include permission to revise and extend her re- have committed to redoubling their efforts the replacement value of capital assets, as marks.) to keep college affordable for all Americans. the level of an institution’s general subsidy Ms. WOOLSEY. Mr. Chairman, I rise I am also following with interest Congress’ cannot be calculated without taking that in strong support of the Roemer reauthorization of the Higher Education Act. into account. Equally important, Congress amendment. Both the House and Senate authorizing com- should not impose a requirement that the These new requirements are mis- mittees have reported fine bills that deserve cost of educating graduates and undergradu- ates be counted separately. Any such guided at best. I ask the gentleman on support. However, I would like to bring to the other side of the aisle if a college your attention several issues that are of par- disaggregation would be completely arbi- ticular interest to me as former Chair of the trary, inaccurate, and destructive of the or- does not drop a particular course if not Cost Commission. I hope you will find these ganic education process that occurs on cam- enough people have enrolled in it after comments useful as you proceed in the proc- puses where undergraduates and graduates people have already started their ess of putting final legislation together. are taught together. school year? 1. INFORMATION ON COLLEGE COSTS Mr. HASTERT. Mr. Chairman, I yield The reporting requirements added in One of the strong messages that the Cost myself such time as I may consume to H.R. 6 are nonsense. Hearings in the Commission sought to communicate is the ask the gentleman from Tennessee a Committee on Education and the need for greater clarity about the basic fi- question. I have great respect for the Workforce have clearly shown that nancial structure of colleges and univer- gentleman from Tennessee and I would men’s minor college sports do not need sities. University administrators need better ask him if this was a decision that was this protection. Not only are reporting data to guide their efforts to contain costs; made in a year, or 2 years, or maybe 4 requirements not needed, they also will the public needs better data to make in- years, up to 4 years, and the gentleman not work. formed choices about obtaining a college education; and policymakers at all levels had students at the University of Ten- Dr. Ruben Arminana, the president of need better data as they make basic deci- nessee, or some other university, would Sonoma State University in my dis- sions regarding student aid, and regulation it not be proper to notify those stu- trict, tells me that these requirements and oversight of the nation’s colleges and dents when that decision was made to will have just the opposite effect. H2880 CONGRESSIONAL RECORD — HOUSE May 6, 1998 President Arminana says that by forc- derstand that. I believe that we have I was in high school, but the oppor- ing colleges to announce 4 years in ad- gotten in an unfortunate box where, tunity to do that. vance when they plan to reduce or somehow or another, we believe that Now, today when I go back to a State eliminate funds for a sport, we will re- we are choosing between men and tournament in Illinois and I look down strict a school’s flexibility in decision- women in intercollegiate sports oppor- on the floor of the tournament and I making. tunities, and we should not. see coaches there that graduated from I quote President Arminana’s re- I happen to believe that the record Southern Illinois University or grad- sponse to this provision. He said: does show, particularly in the case of uated from Illinois State University or Sports teams will suffer irreparable dam- some sports like men’s wrestling, that graduated from Western Illinois Uni- age, and institutions will be unable to retain there have been some unjustifiable de- versity. Those guys were never stars, the program should circumstances change at cisions made that have hurt student they were never the quarterbacks, they a later date. athletes. And I, for one, am looking for were never the national champions, but These reporting requirements place a tool to try and remedy those injus- they are guys or men at that time that unreasonable and inappropriate de- tices. pursued the sport because they loved mands on institutions of higher edu- With all due respect to its author, the sport, and that sport changed their cation. It is an unwarranted Federal who I know is very well-advised and lives and they became teachers and intrusion in college and university af- well-intentioned, I do not believe this coaches and people who have partici- fairs and ignores efforts to curb college is the right tool because of the ex- pated and have provided generations of costs. Colleges and universities do not panded time window that is in it. I do leadership for young people who cer- budget for 4-year cycles, they budget 1 share his conviction, however, that tainly need that leadership. year at a time. They need the flexibil- there ought to be some guarantee that Also, I, as my colleagues know, have ity to make decisions that are in the before an institution chooses to termi- tried to take the lead in some areas on best interests of their students and nate a sport that it ought to say ex- drug issues. One of the things, I met campuses that year. actly how much money it is going to with the mayor of Chicago and the new Who are we, here in this Congress, to save, justify those numbers so that the superintendent of schools for the City insist that colleges justify their budget dynamic of the campus-based, decision- of Chicago, and he says, ‘‘We cannot decisions to us? making community can look at that find enough people to be the role mod- els for these kids.’’ b 1730 argument and see whether it is true or false. One of the new innovations that they Mr. Chairman, I urge my colleagues So I will support the Roemer amend- have done there and I think has been to vote for the Roemer amendment. ment tonight, but I will offer my will- somewhat successful is to take stu- Mr. HASTERT. Mr. Chairman, how ingness to cooperate in trying to find a dents who are at risk, students that are much time is remaining? way to resolve this very serious prob- ready to be bounced out of the public The CHAIRMAN pro tempore (Mr. lem. school system and keep them after EWING). The gentleman from Illinois Mr. HASTERT. Mr. Chairman, I yield school from 3:00 in the afternoon until (Mr. HASTERT) has 111⁄2 minutes re- myself such time as I may consume. 6:00 in the afternoon. Instead of sus- maining. The gentleman from Indiana It is interesting from time to time to pending those kids, they have decided (Mr. ROEMER) has 131⁄2 minutes remain- take the floor. We try to reason out an to keep those kids on Saturday instead ing. issue and we try to decipher what is of turning them loose on the streets. Mr. HASTERT. Mr. Chairman, I re- right and what is wrong, what is right What they found out is that the inci- serve the balance of my time. and wrong for kids, what is right and dence of success for those kids has in- Mr. ROEMER. Mr. Chairman, I yield wrong for our system of education, creased, but they also have found out 2 minutes to my very good friend, the whether it be private or public, and that the crime rate has gone down be- gentleman from the State of New Jer- what is the best course to take. And cause the crime rate was after school. sey (Mr. ANDREWS). usually the common denominator when The highest incidence of teenage crime (Mr. ANDREWS asked and was given it comes down to it, especially in the was the hours right after school and on permission to revise and extend his re- area of education, is what is right for Saturdays. So they have given those marks.) kids. kids direction. Mr. ANDREWS. Mr. Chairman, I I appreciate the gentleman on the Do my colleagues know who they de- thank my friend and classmate, the other side, because easily we try to get pend on? They depend on the coaches gentleman from Indiana, for yielding. I into a battle between men’s sports and to come in, the people who have the rise in support of the Roemer amend- women’s sports. That certainly is not ability to be the role models, the peo- ment. my intent, and that is not the intent of ple who have the ability to connect Tomorrow, my 5-year-old daughter this legislation. What we really want with these kids. They are not just ex- Jacqueline is going to enroll for kin- to do is to treat kids fairly. clusively coaches. Some of them are dergarten, and when my wife and I look Let me say that in my experience, science teachers and some are art at the cost of paying for an education, and as most people know, I spent 16 teachers, and some of them are English we really have our fingers crossed that years as a public school teacher and a teachers. But they have given those some day she will earn an athletic coach, and before that participated in kids hope. scholarship to play lacrosse or soccer football and wrestling and other sports What we do and what has happened, or field hockey or some other sport. We both in high school and college, part of and I have seen the charts up here; the are going to need it. probably the opportunity to partici- story is, though, the people who have The day that her mother started col- pate in athletics gave me the oppor- gained are women’s sports, and that is lege, there were far fewer opportunities tunity to get out from behind stoves of great. The sports that have lost are for women to play intercollegiate a restaurant or behind the dishwasher men’s sports. Two hundred universities sports. When her grandmother was because it gave me an opportunity to across this country in 1996 and 1997 growing up, very few women went to participate, it gave me a little help have dropped sports; almost all of college at all. There has been a lot of along the way. those sports are men’s sports. We are progress in opportunities for women I was in a private school; that was just saying, if they are going to do over the years, and I believe that we not a lot of glory, was not a lot of that, give those kids a chance to re- should do nothing to turn back the headlines. And contrary to my good claim their lives, give those kids a clock on that progress. It is very im- friend, the gentleman from Michigan chance to find another university or portant that we reaffirm our support (Mr. BONIOR), the whip over on the another program to get into if that is for title IX, as I believe this amend- other side, I was not a quarterback, I their wish. ment does. was just in the line. So I did not get Now, we are not saying we cannot do I also believe that no one on the any glory at all. But it changed my life it. I understand certainly the con- other side of this question wants to and it put me in public education, cer- straints of universities and colleges. I downgrade women’s sports, and I un- tainly something I did not intend when know the budget problems. I know that May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2881 we do not want extra interference from Mr. Chairman, I yield 11⁄4 minutes to amendment and against the mandate the Federal Government in these the gentlewoman from Maryland (Mrs. we are debating here this afternoon. schools. But we are just saying, give MORELLA). This is a well-intended provision in the these kids a chance. If they are going (Mrs. MORELLA asked and was given bill. It has, as its sponsor has men- to drop the program, let them know. permission to revise and extend her re- tioned, the goal of encouraging stu- Give them a chance to change. marks.) dents to participate in intercollegiate Last week we had the roll-out of the Mrs. MORELLA. Mr. Chairman, I rise athletics, team sports that teach team- For a Drug-Free America Act. That in support of the Roemer-Riggs amend- work, individual sports that teach self- was an interesting experience. But one ment. esteem and confidence. But the provi- of the most interesting speakers that I think it would be an almost impos- sion does not have the intended effect we had was a young lady from northern sible challenge and task for univer- and indeed it will have the opposite ef- sities and institutions of higher learn- Illinois who was the goalie on the wom- fect; that is, it will risk hurting stu- ing to be required to predict 4 years in en’s hockey team that won the gold dents. advance changes that might be antici- medal in Nagano. The young lady is a As has been mentioned, if enrollment pated in their athletic program. We premed student at Dartmouth Univer- were to drop at an institution, if stu- have enough problems here in Congress sity. She took 2 years out of her train- dent interest in participating in a par- in trying to predict what is going to ing to take the challenge to try to ticular sport were to decline and the happen next year. make the Olympic team. She did that. Under the provision in the bill that budget dropped for that particular She had a great message for the kids has been included in H.R. 6, schools sport, this bill could have the effect of of this Nation. The message is, ‘‘You could lose their eligibility to receive eliminating Federal funding that is can do anything you want with your Pell grants and higher education loans needed to run that university or col- life. You can do anything you want. If if they fail to predict and justify their lege and eliminating sorely needed fi- you put your mind to it and your will decisions. This provision is intrusive, nancial aid. to it, you can do it.’’ But do my col- as has been mentioned, and I think it Let us focus on what the real issue leagues know what? She also had a goes way beyond the limits of the Fed- here is. The real issue is that we should great message that ‘‘If you get messed eral role in the development of higher adequately fund our universities and up with drugs, it probably is going to education policy. colleges, not just intercollegiate ath- negate that.’’ We need to have people’s In addition to the absurdity of hav- letics for women but for men as well. messages out there for our kids. ing to prophesy future changes, I am They should not have to compete Do my colleagues know where she also concerned that this provision against each other. got her experience? She was the only would tend to weaken title IX. And I Secondly and most importantly, as girl on the men’s hockey team that am concerned that this reporting re- the sponsor of this provision alluded won the State championship in Illinois, quirement will lead colleges and uni- to, we need to strongly fund financial but she earned that spot. The next versities to blame reductions in men’s aid, because the greatest threat to par- year, that hockey team was no longer nonrevenue sports, such as wrestling, ticipation in intercollegiate athletics a school sport. on compliance with title IX. is the time of our students who are in- I am saying, when we take those op- I wanted to say, I also introduced creasingly being forced to work, as the portunities for kids to excel, to try and that goalie and I introduced the cap- sponsor was, and attend school and are reach out and get their dreams and tain of that winning hockey team in robbed of the opportunity for extra- some may be to be an Olympic cham- my district, and we were very proud of curricular activities outside the class- pion or to be a State champion or to be what they have done. And the gen- room. By funding financial aid to meet a coach, when we drop those programs, tleman from Illinois (Mr. HASTERT) is these rising tuition increases around we take away generations of leader- quite correct, but I just want to em- our country, by freeing our students up ship, leadership that we need to help phasize, the ultimate goal of title IX is to have time to participate, this is our kids, boys and girls, to help our fu- to provide equal opportunities for boys what we should be focused on. This is ture, and to set the tone of what this as well as girls, men as well as women, why I would urge the adoption of the country should be about. and this is what we should do. amendment. All I am saying in this amendment, Mr. HASTERT. Mr. Chairman, I yield Mr. ROEMER. Mr. Chairman, I yield in this notice, is that if we are going to myself 1 minute. 1 minute to the gentlewoman from take that opportunity away from those I would like to remind the gentle- Connecticut (Ms. DELAURO). kids, tell them, tell them on a timely woman from Maryland (Mrs. MORELLA), Ms. DELAURO. Mr. Chairman, the re- basis. If it is 4 years ahead of time that a good friend of mine, I think, that porting provisions in the Higher Edu- decision is made, tell them in 4 years. there is no penalty in this bill. It does cation Act represent a highly inappro- If it is 3 years, tell them in 3 years. If not take away or threaten universities priate Federal intrusion into the af- it is 2 years, tell them in 2 years. If it with their Pell grants or anything. fairs of our Nation’s colleges and uni- is 1 year, tell them in 1 year. Give There is no penalty in the bill. It just versities. I rise in support of the Roe- them a chance to make their own deci- says, within a period of 4 years, up to mer amendment to strike those provi- sion and to follow their goal in life. 4 years, that if they decide in 4 years or sions. Congress should not be in the Mr. Chairman, I reserve the balance 3 years or 2 years or 1 year or 6 months business of interfering in the budgeting of my time. from now that they are going to do decisions of our Nation’s colleges. Mr. ROEMER. Mr. Chairman, how away with a sport, they ought to tell The Higher Education Act contains much time is remaining? the kids they are going to do that so important provisions to help our stu- The CHAIRMAN pro tempore. The they have some time to plan. dents pay for the rapidly rising costs of So I understand that this is the un- gentleman from Indiana (Mr. ROEMER) college. Yet the reporting provisions in derstanding that my colleague has. It has 111⁄2 minutes remaining. The gen- the bill would make it even more dif- is wrong. We do not take away. There tleman from Illinois (Mr. HASTERT) has ficult for schools to make the tough de- are no penalties in this bill. That is 4 minutes remaining. cisions that will help them to keep tui- Mr. ROEMER. Mr. Chairman, I yield how benign this is. We are just saying, tion costs down. That is why the NCAA myself such time as I may consume. give kids a chance. supports the Roemer amendment. Mr. Chairman, I reserve the balance I would just say that the gentleman These reporting provisions are an at- of my time. from Illinois has given a very eloquent Mr. ROEMER. Mr. Chairman, I yield tempt to force colleges and universities and passionate statement about men- to blame any reductions in men’s 11⁄2 minutes to the gentleman from toring and after-school programs and sports on increases of women’s sports. Florida (Mr. DAVIS), the very talented leadership programs for children, but freshman. This is a backdoor attempt to weaken not a Federal mandate or intrusion Title IX. This is not about men’s teams into our sports programs on the part of b 1745 versus women’s teams. We are all on Washington to every university in the Mr. DAVIS of Florida. Mr. Chairman, the same team here. We all win when country. I rise in support of the Riggs-Roemer our young women have the opportunity H2882 CONGRESSIONAL RECORD — HOUSE May 6, 1998 to challenge themselves, to strive to certainly a happy side to this debate Mr. Chairman, I rise with great re- succeed to improve their confidence. this evening because as the new major- luctance to oppose the language in the I urge my colleagues to allow our col- ity we certainly are making converts bill of the gentleman from Illinois (Mr. leges and universities the autonomy to over there. I have heard so many times HASTERT), who has really spent a good make their own decisions. Vote for the in this discussion from that side of the deal of his life in behalf of young peo- Roemer amendment. aisle, ‘‘We should not be mandating, we ple. I have listened carefully to his re- Mr. ROEMER. Mr. Chairman, I yield should not micromanage.’’ That is marks and the sincerity and the pas- 1 minute to the gentleman from North music to my ears. We are really mak- sion in which he delivered them ear- Carolina (Mr. ETHERIDGE), a freshman ing progress here as a new majority. I lier. Member working hard on education thank you for joining us. When I look at the bill, two things problems. Mr. ROEMER. Mr. Chairman, we are that stand out to me is what the gen- (Mr. ETHERIDGE asked and was delighted to get that endorsement from tleman from Pennsylvania (Mr. GOOD- given permission to revise and extend the chairman of the committee. LING), the chairman of the committee his remarks.) Mr. Chairman, I yield 11⁄2 minutes to referred to, and that is our concern Mr. ETHERIDGE. Mr. Chairman, I the distinguished gentleman from about the micromanaging on our cam- rise in strong support of the Roemer- North Carolina (Mr. PRICE), again from puses, but also the issue that I want to Riggs amendment to correct a serious a university. address on the floor here is the ques- flaw in this bill. This provision is Mr. PRICE of North Carolina. Mr. tion of Title IX and the great work wrong. I urge my colleagues to support Chairman, as a Member whose career that we have done over the years to get this amendment to remove it from the has been in higher education, I would where we are, and that has been cham- bill. like to offer some observations in sup- pioned by the gentlewoman from Ha- Last week I met in my office with port of the Roemer amendment, which waii (Mrs. MINK). the president of the North Carolina As- would strike the bill’s provision requir- Title IX is the landmark civil rights sociation of Independent Colleges and ing institutions to report annually and legislation which has done so much to Universities. She explained to me her justify their reasons for any reduction advance equality for women. Thanks to concerns about the harmful effect that in funding or in participation rates of 25 years of it, we are experiencing a this provision of the bill would have on any sports teams that might occur tremendous boom in women’s sports. the institutions of higher education in over the next 4 years. When I was at the University of Iowa our State. Without passage of the Roe- I understand the intent of the gen- in 1963, on an athletic scholarship, I mer-Riggs amendment, this bill would tleman from Illinois (Mr. HASTERT). We might add, to my friend from Illinois, I usurp the administrative flexibility of do need to use common sense in the im- did not receive much glory either as I colleges and universities that they ab- plementation of Title IX, and the inter- spent too much time on the bench, ests of all students in all sports need to solutely need to run their universities there was not a woman in the univer- be given consideration. But I think the in the most effective manner, a man- sity who was on an athletic scholar- Hastert provision is unwise policy for a date that has been given to them by ship. Only the men had athletic schol- couple of reasons. this Congress through a commission arships. Before Title IX, only one in 27 The provision does represent a micro- girls competed in high school sports. that they set up. management of the budgeting practices The Federal Government should not Today it is one in three. Back then, of colleges and universities. Colleges be in the business of micromanaging only 300,000 young women took part in and universities must be able to man- interscholastic athletics nationwide. our universities of higher education. age their budgets, set their priorities, But we should not as a process of try- Today it is 2.25 million. and make their plans with the maxi- This past winter, as has been said, we ing to do it pit our academic institu- mum amount of flexibility and free- tions against the athletics and their added women’s hockey to the growing dom. These are hard times at many list of U.S. women’s teams that are struggle for resources. This provision colleges and universities. Managing Olympic gold medal winners. We see would handicap colleges and subject these institutions is a difficult task. young women turn out for NBA basket- them to a burdensome, restrictive and An unreasonable Federal burden such ball games and they have got heroes contentious process and send the wrong as this one strikes me as simply un- like Rebecca Lobo and Lisa Leslie and message to our Nation’s schools. wise. Simply put, universities do not soccer heroes like Mia Hamm. We This provision is unnecessary, and and should not be required to initiate should be proud of these new opportu- the Roemer-Riggs amendment is sup- 4-year budgeting plans. They need far nities for our daughters. ported by the NCAA and other major more flexibility than that would per- This provision that is in the bill higher education organizations. mit, which leads me to my second would, I think, take a step backwards My Congressional District contains point. by pitting men’s programs against several small colleges and universities. This provision might actually lead women’s programs. It is important to These institutions would be particu- colleges to make hard and fast long- understand that we have had no court larly hard hit by this bill. We must pre- term decisions that would have the op- order that has ever forced a school to serve the flexibility of these schools to posite effect of the intent of the bill. A reach proportionality to comply with continue to provide the excellent edu- requirement to announce decisions 4 Title IX. Mr. Chairman, I urge my col- cational opportunities they are provid- years in advance could actually lead a leagues not to pit small men’s sports ing today. college to signal the termination of a programs against struggling women’s Mr. Chairman, as the first member of sports program, undermining its abil- programs. I urge them to vote for the my family to graduate from college, I ity to recruit athletes, when in fact the Roemer-Riggs-Mink amendment. know firsthand that higher education program might be salvageable if cir- Mr. ROEMER. Mr. Chairman, I yield holds the key to the American Dream. cumstances change. It is hard to see 21⁄2 minutes to the gentlewoman from This provision of H.R. 6 would have any benefit in that for student athletes Hawaii (Mrs. MINK), the champion of very serious, negative consequences for or for anybody else. equality and fairness. our nation’s colleges and universities. I urge my colleagues to vote in favor (Mrs. MINK of Hawaii asked and was As the former Superintendent of my of the Roemer amendment in order to given permission to revise and extend state’s schools, I urge my colleagues to preserve the maximum amount of inde- her remarks.) join me in voting for the Roemer-Riggs pendence and flexibility in the oper- Mrs. MINK of Hawaii. I thank the amendment. ation of our Nation’s colleges and uni- gentleman for yielding me this time. Mr. HASTERT. Mr. Chairman, I yield versities. Mr. Chairman, we have heard some 30 seconds to the gentleman from Mr. ROEMER. Mr. Chairman, I yield very eloquent statements this after- Pennsylvania (Mr. GOODLING), the 2 minutes to the gentleman from noon arguing about the inability of in- chairman of the full committee. Michigan (Mr. BONIOR), our minority stitutions of higher learning to respond Mr. GOODLING. Mr. Chairman, I whip. to this mandate to forecast 4 years in thank the gentleman for yielding time. Mr. BONIOR. I thank the gentleman advance where they are going to elimi- I just wanted to indicate that there is for yielding me this time. nate or reduce athletic programs or cut May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2883 funding. More particularly, if you look intrusive in the decision making process of grams during the past five years, 63% of this at the language of the provision in the colleges and universities; it is impracticalÐit increase went to football. bill, it says, ‘‘and to give reasons there- will be virtually impossible for colleges to know Minor men's sports that are threatened for.’’ So while I fully subscribe to the if they are going to cut or reduce certain ath- should turn their attention to the other major arguments about university autonomy letic programs four years in advance and it will men's sports, and not take away from wom- and what this provision will do to the force colleges to make decisions prematurely en's sports which only have 37% of the funds. universities, expecting them to be able about their athletic programs. Furthermore, Title IX should not be used as a scapegoat to forecast 4 years in advance, I want this reporting requirement could actually for decisions made by institutions because of to address those last four words of the prompt colleges to close the very programs fiscal difficulties, or their decisions to inequi- amendment, ‘‘and to give reasons the proponents of this provision are seeking to tably distribute funds among men's sports. therefor.’’ save. We have come too far, we cannot turn our Arguments have been made on the I oppose this provision for all these reasons, back on women athletes. Support Title IX and floor this afternoon that one of the rea- but most of all, I stand today with my col- vote for the Roemer Amendment. sons, perhaps, that men’s nonrevenue league TIM ROEMER urging the House to strike Mr. ROEMER. Mr. Chairman, how sports have had to be eliminated in a this reporting requirement because of the po- much time remains? number of instances is because wom- tential for severe adverse impact on the en- The CHAIRMAN pro tempore (Mr. en’s sports have been gaining. If you forcement of Title IX. EWING). The gentleman from Indiana look at the statistics and you study the The reporting requirement in the bill was in- (Mr. ROEMER) has 30 seconds and the record, such accusations are abso- cluded by opponents to Title IX who want to gentleman from Illinois (Mr. HASTERT) lutely, totally false. Twenty-five years force colleges to blame reductions in smaller, has 21⁄2 minutes. ago when I had the privilege of serving non-revenue men's sports on Title IX. They Mr. ROEMER. Mr. Chairman, who in the Congress and advocating for the are hoping that colleges will say in their re- has the right to close? passage of Title IX, women were to- ports that compliance with Title IX is the rea- The CHAIRMAN pro tempore. The tally excluded. Now for the first time, son they have to reduce men's sports, which gentleman from Indiana (Mr. ROEMER) they are coming up and participating is simply not true! has the right to close. Title IX of the Education Act Amendments of in major sports, gaining the support of PARLIAMENTARY INQUIRY 1972 prohibits all schools receiving federal wide audiences, becoming in some Mr. HASTERT. Mr. Chairman, I have funds from discriminating against women, in- cases even a revenue sport. It seems to a parliamentary inquiry. me it is wholly unfair to now try to cluding women's athletic programs. The success of Title IX in increasing athletic The CHAIRMAN pro tempore. The cause the universities to single out opportunities for girls and women is indis- gentleman will state it. Title IX as a reason for having to cut putable. We have all seen the success of Title Mr. HASTERT. Mr. Chairman, the back on nonrevenue sports in the men’s IX through the increased strength and popu- committee position holds the right to area. I believe sincerely that this is larity of women's collegiate sports, the record close. The gentleman from Indiana what it is all about. number of U.S. women athletes winning Olym- opened debate. I certainly agree with the gentleman pic medals, and the establishment of two pro- The CHAIRMAN pro tempore. The from Illinois’ argument that if we fessional women's basketball leagues. gentleman from Illinois (Mr. HASTERT) allow young people to participate in Thanks to Title IX, 110,000 college women is not on the committee. The gen- sports, it is going to change their lives and 2.2 million high school girls now compete tleman from Indiana (Mr. ROEMER) has entirely. That is exactly what has hap- in intercollegiate and interscholastic sports. the right to close. pened to women. It has changed their Women who participate in sports now reap Mr. HASTERT. Mr. Chairman, I yield lives entirely. Title IX after 25 years the benefits that men have enjoyed for dec- myself the balance of my time. has finally opened up opportunity in adesÐnew economic opportunities, building Certainly I want to thank the gen- higher education, and one of the oppor- team work and leadership skills that translate tleman from California (Mr. MCKEON), tunities is in the sports area. It has into marketable jobs skills. Girls and women who has worked with me to try to given them the opportunity to find out who participate in sports are also healthier structure this language that made what it is to be a competitor. and involvement in team sports also reduces sense. I like to fish. I wish I had my Women have been winning, have been the potential for involvement in juvenile crime pole here today because we have a lot coming home with the gold medals. I and teen pregnancy. of red herrings that have been floating never had that opportunity. I could not Blaming women's sports for reductions in around this place. even get into the profession that I non-revenue men's sports is pitting the have- Let me be very, very honest and wanted to when I was going to college. nots against the have-nots. While women's straight. The gentlewoman from Ha- I yearned for the opportunity to have athletic programs have been increasing, fe- waii talked about title IX. This is not that chance, to seek my chosen career male athletes still get the short end of the about title IX. Some people say it opportunities. stick. Women still have only 37% of the oppor- takes 4 years’ notice. It is not 4 years’ Title IX has opened up the way for tunities to play intercollegiate sports, 38% of notice. It is notice when a school de- women into law school, medical athletic scholarships, 23% of athletic operating cides up to 4 years to give notice to schools and all the professions. They budgets and 27% of the dollars spent to re- kids who are not going to have the op- have done well in the sports. Let us not cruit new athletes. portunity to participate. add this language and compound the While women's athletics has been b 1800 pressures upon Title IX and cause it to inceasing, so have men's athletic budgetsÐat become the scapegoat for further accu- an even greater pace. Since 1972 (passage of But let me talk a little bit about sations and further litigation. Title IX) for every new dollar spent on wom- what has arisen here as far as men ver- Mr. Chairman, I urge the support of en's intercollegiate sports, two new dollars sus women, certainly not the intent of the Roemer amendment. were spent on men's intercollegiate sports. this gentleman to talk about that. As Mr. Chairman, I rise today in strong support From 1992±1997, men's athletic operating my colleagues may know, my wife of the Roemer amendment to strike the oner- budgets have increased by 139%. The in- started teaching about the same time I ous reporting requirement included in this bill crease in women's budgets was much less at did. She is a women’s athletic coach. which will force schools to report on potential 89%. At that time the only opportunity that reductions in athletic programs. The real problem is that the lion's share of women had was GA, Girl’s Athletics; it This provision was included in the Commit- total athletic resources goes to male athletes, was an intramural thing. Today women tee bill at the 11th hour. Most Committee but these resources are inequitably distributed have all types of opportunities; as Members had no knowledge of the provision among men's sports. Football and men's Bas- many in girl sports in this high school and there was no appropriate debate on the ketball consume 73% of the total men's ath- as there are in boy sports, and that is consequences or the practicality of what we letic operating budget at Division I±A institu- great because it has changed the way. are requiring schools to do in this provision. tions, leaving other men's sports to compete All we are saying in this amendment There are many reasons to oppose the re- for the remaining funds. is let us be decent, let us be honest, porting requirement, many of which have been Of the $1.37 million average increase in ex- and let us tell our kids when their op- outlined by my colleaguesÐit is extraordinarily penditures for men's Division I±A sports pro- portunities are gone that they have the H2884 CONGRESSIONAL RECORD — HOUSE May 6, 1998 chance to go someplace else if that is force, I am often asked whether the Women's This provision is just another attempt to get the case. That is what we are asking Caucus has a position on the elimination of colleges and universities to blame Title IX for about. sports opportunities for men as a method of reductions in smaller, non-revenue men's But let me just say one more thing. complying with Title IX of the Education sports. As my colleagues may know, I had Amendments of 1972. Over the past five Title IX has been very successful in increas- worked with the universities and small years, no less than 55 institutions nationwide ing the visibility and strength of women's colle- colleges, independent colleges and the have eliminated or downgraded to club status giate sports. Its success can be seen in the NCAA. We had an agreement. An agree- men's varsity intercollegiate sports or placed two newly formed professional women's bas- ment was when this bill goes to con- squad size limits on men's teams. Most ketball leagues. ference let us work to make sure that schools cite, as the reason for their decision, Title IX has been very important program, this is a voluntary system. the need to reduce expenditures in order to and it should not become a scapegoat for fis- Now the Congress is going to work provide opportunities for women. cal difficulties affecting the institution. their will today, one way or another, The Women's Caucus is not in favor of re- Title IX is not the only problem with this bill. but those who so vociferously stood up ducing opportunities for men as the preferred Congress should not restrict a college or and said let us not do mandates, let us method of achieving Title IX compliance. Title universities ability to decide on its programs then talk to the NCAA and make sure IX is one section of the Education Amend- and budget. that this does, win, lose, or draw, be- ments of 1972. Though it is commonly associ- Colleges and universities do not set their come something that is voluntarily en- ated with college athletic programs, it is, in budgets four years in advance, yet this provi- couraged by the NCAA to its members. fact, a wide-ranging sex discrimination law that sion would force them to make decisions while That is the bottom line. Let us let kids also applies to high schools and elementary just guessing at what the future may hold. In a time when the cost of college is rising have the understanding and the knowl- schools. It states: ``No person in the United much faster than the cost of living, we must edge when their sport is terminated States shall, on the basis of sex, be excluded find ways to help colleges decrease costs; not that they have the ability to make a from participation in, be denied the participa- create obstacles to suspending programs that choice. Let their parents have the abil- tion in an educational activity.'' the college or university can no longer afford. ity to make their choice. The reporting requirement in H.R. 6 was in- This provision intrudes into the decision Now, unfortunately, a lot of these cluded by opponents to Title IX who want to making policies of universities and colleges, kids are going to be vested in these force colleges to blame reductions in smaller, and it would force colleges to make decisions schools, they are going to have hours. non-revenue men's sports on Title IX. They prematurely about their athletic programs. Maybe there will be sophomores or jun- are hoping that colleges will say in their re- I urge my colleagues to join me in voting iors and they cannot afford to change. ports that compliance with Title IX is the rea- yes to this amendment to delete this provision What we are asking them, if they can, son they have to reduce men's sports, which from the bill. if they want to, if they are following is not true. Since the passage of Title IX, in Mr. BENTSEN. Mr. Chairman, I rise in sup- their life’s dream and this is part of 1972, for every one new dollar spent on wom- port of this amendment. what they want to accomplish with a en's intercollegiate sports, two new dollars This amendment strikes a provision of this college education, they need to have were spent on men's intercollegiate sports. bill that would have the federal government the opportunity of the knowledge, the From 1992±1997, men's athletic operating oversee and mandate the decisions of our na- same knowledge that the school has. It budgets have increased by 139%. The in- tion's institutions of higher learning. I support is not going to change their ability or crease in expenditures for women's sports this amendment because I believe it is inap- their budgeting or anything else. It is during this time period, 89% pales in compari- propriate for Congress to interfere in a college common sense. son. Football and men's basketball consume or university's design of its own athletic pro- Mr. Chairman, let us vote on the side 73% of the total men's athletic operating budg- grams or preparation of its own budget. of common sense in this Congress for a et at Division 1±A institutions, leaving other The provision in question would require in- change. men's sports to compete for remaining funds. stitutions to file annual reports with the federal Mr. ROEMER. Mr. Chairman, I yield Of the $1.37 million average increase in ex- government that specify and justify any myself the balance of my time. penditures for men's Division 1±A sports pro- planned reductions in funding or participation Mr. Chairman, in conclusion this grams during the past five years, sixty-three rates of any athletic programs that may occur side, in efforts to strike this language percent of this increase went to football. over the following four years. This is a costly, in the bill, we are for the students’ Blaming women's sports for reductions in unnecessary and unfunded mandate that right to know. We just think that the non-revenue sports is pitting the have-nots would undermine Congress' previous efforts to universities should do it in a voluntary against the have-nots. The lion's share or re- ensure the affordability of higher education. fashion, not from a mandate from the sources goes to male athletes, which are in- The National Commission on the Cost of Federal Government in Washington, equitably distributed among men's sports. Title Higher Education, which Congress created, al- D.C. IX should not be used as a scapegoat for de- lowed institutions to make their own decisions If we were to bring a small business cisions made by institutions because of fiscal about the best means for slowing the growth bill to the floor and have a provision in difficulties, or because of decisions to inequi- of college costs. This bill, however, would take that bill saying that every small busi- tably distribute funds among men's sports. away this authority and require postsecondary ness in the country has to let us in the Instead of developing an acrimonious envi- institutions to justify their budgets and long- Federal Government know 4 years in ronment between men's non-revenue sports range planning decisions. Most, if all, colleges advance if they are going to lay any- and women's sports, we as legislators should and universities do not budget in four year cy- body off, that would be voted down. be looking for solutions that will allow opportu- cles. This bill would require these institutions Vote down this provision. Do not put nities for all students to participate in activities. to revise budgetary practices and foresee the a half nelson of regulations on every We need to explore the options of moving col- rise or decline in athletic programs several university in the country. Vote for the lege athletic programs to a lower level of com- years in advance. This action will not only Roemer-Riggs amendment. petitive division and using tuition waiver sav- have an immediate, negative impact on the Ms. KILPATRICK. Mr. Chairman, I rise ings to athletics budgets to fund gender eq- identified program, but it would severely re- today in strong support of a bi-partisan uity. strict an institution's ability to recruit student amendment offered by my colleagues, Con- Equality has always benefited all Americans. athletes and take steps to save troubled pro- gressmen TIM ROEMER and FRANK RIGGS. This If we intended to compete on a global level grams. amendment would eliminate a provision in academically and athletically, we need a There is simply no need for this provision. In H.R. 6, the Higher Education Act of 1998, that strong Title IX. I urge my colleagues to sup- fact, NCAA data shows no evidence of a na- would require colleges to report four years in port this bi-partisan amendment to H.R. 6, the tionwide trend of eliminating college athletic advance the possible elimination of athletics Higher Education Act. programs. In the 1995±96 academic year, only programs. This onerous provision would, in ef- Mrs. MALONEY of New York. Mr. Chair- two sports experienced a reduction in their fect, gut the purpose of equality in athletics for man, I rise in support of this amendment to team totals, with a net loss of only six teams. men and women. It is my hope that the wis- H.R. 6. That is only six teams out of 15,141 men's dom of Congress prevails in adopting this H.R. 6 contains a provision which requires and women's sports teams, with 322,763 stu- amendment. colleges to report on any potential reduction in dent-athletes, in NCAA member-sponsored in- As the team leader for the Congressional athletic programs four years in advance and stitutions. In fact in 1995±96, 1,166 new sports Caucus for Women's IssuesÐTitle IX task the reasons for that proposed reduction. teams were added. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2885 I am also concerned that this provision This provision is an attempt to allow col- students by strengthening preservice edu- would force institutions to reduce participation leges and universities to use Title IX as a cation and induction of individuals into the in smaller, non-revenue Title IX sports pro- scapegoat for cuts to other athletic programs. teaching profession. (3) To provide for the continuing develop- grams, which are designed to expand oppor- No one understands better the difficult deci- ment and professional growth of veteran tunity for women in college athletic programs. sions that balancing a budget brings than we teachers. The bill contains burdensome reporting re- do in Congress. Title IX, which creates equal (4) To provide a research-based context for quirements that would pit sports programs for access to important programs for young men reinventing schools, teacher preparation pro- men against those for women. If institutions and women, should not suffer because of grams, and professional development pro- are forced to forecast profitability when deter- painful budgetary decisions. Last year Title IX grams, for the purpose of building and sus- mining the future of athletic programs, I am celebrated its 25th anniversary. Since that taining best educational practices and rais- concerned that less established, revenue-neu- time, women's participation in school athletic ing student academic achievement. tral womens programs will be easy targets for programs has increased dramatically. This in- SEC. 1104. DEFINITIONS. termination. The end result will be diminished crease has benefited young women in many In this title: (1) ELEMENTARY SCHOOL.—The term ‘‘ele- level of opportunity for women athletes and di- aspects of life. Young women who play sports mentary school’’ means a public elementary minished participation by women in intercolle- are more likely to graduate from high school, school. giate athletics. and less likely to use drugs or have an unin- (2) INSTITUTION OF HIGHER EDUCATION.—The I urge all of my colleagues to support the tended pregnancy. They reap multiple health term ‘‘institution of higher education’’ Riggs-Roemer amendment. benefits from athletic participation, including a means an institution of higher education Mr. WATTS of Oklahoma. Mr. Chairman, I 40%±60% decrease in their risk of breast can- that— (A) has a school, college, or department of rise today to urge my colleagues to support cer. In addition, athletic participation helps im- prove self-esteem and discipline. education that is accredited by an agency the Riggs-Roemer Amendment to H.R. 6, the recognized by the Secretary for that purpose; Higher Education Act Amendments of 1998. I urge my colleagues to support Title IX and or Currently, H.R. 6 contains language that would preserve autonomy in decisions at institutions (B) the Secretary determines has a school, require universities to give at least four years of higher education. Please support the Riggs- college, or department of education of a of advance notice if they plan to discontinue Roemer amendment. quality equal to or exceeding the quality of any sports programs. The Riggs-Roemer The CHAIRMAN pro tempore (Mr. schools, colleges, or departments so accred- Amendment would remove this language from EWING). The question is on the amend- ited. ment offered by the gentleman from (3) POVERTY LINE.—The term ‘‘poverty H.R. 6, and prevent the federal government line’’ means the poverty line (as defined by Indiana (Mr. ROEMER). from micro-managing college sports in this the Office of Management and Budget, and dangerous manner. The question was taken; and the revised annually in accordance with section Once a college announces that one of their Chairman pro tempore announced that 673(2) of the Community Services Block sports teams is being disbanded, immediately, the noes appeared to have it. Grant Act (42 U.S.C. 9902(2)) applicable to a that team becomes a lame duck. The program Mr. ROEMER. Mr. Chairman, I de- family of the size involved. permanently loses its fan base, any potential mand a recorded vote. (4) PROFESSIONAL DEVELOPMENT PARTNER- recruits and also the support of its financial The CHAIRMAN pro tempore. Pursu- SHIP.—The term ‘‘professional development ant to House Resolution 411, further partnership’’ means a partnership among 1 boosters. The potential thus becomes a re- or more institutions of higher education, 1 or ality. proceedings on the amendment offered by the gentleman from Indiana (Mr. more elementary schools or secondary It would be a shame if a college were forced schools, and 1 or more local educational by law to announce the discontinuation of a ROEMER) will be postponed. agency based on a mutual commitment to sport four years early, only to find enough Are there further amendments? improve teaching and learning. The partner- money to keep the program afloat a year later. AMENDMENT NO. 82 OFFERED BY MS. ship may include a State educational agen- By then, that program will have suffered irrep- MILLENDER-MCDONALD cy, a teacher organization, or a nonprofit or- Ms. MILLENDER-MCDONALD. Mr. ganization whose primary purpose is edu- arable and unnecessary damage to its reputa- cation research and development. tion and viability. Chairman, I offer an amendment. The CHAIRMAN pro tempore. The (5) PROFESSIONAL DEVELOPMENT SCHOOL.— The government should not force colleges The term ‘‘professional development school’’ to announce four years in advance that they Clerk will designate the amendment. means an elementary school or secondary plan to discontinue a sports program. That The text of the amendment is as fol- school that collaborates with an institution rule would limit a college's options when it lows: of higher education for the purpose of— comes to possibly saving a struggling sport. I Amendment No. 82 offered by Ms. (A) providing high quality instruction to urge my colleagues to support the Riggs-Roe- MILLENDER-MCDONALD: students and educating students to higher At the end of the bill add the following new academic standards; mer Amendment to H.R. 6, so we can save title: (B) providing high quality student teach- college athletics from government over-regula- TITLE XI—TEACHER EXCELLENCE IN ing and internship experiences at the school tion. AMERICA CHALLENGE for prospective and beginning teachers; and Mr. MORAN of Virginia. Mr. Chairman, I rise (C) supporting and enabling the profes- SEC. 1101. SHORT TITLE. in strong support of the Riggs-Roemer sional development of veteran teachers at This title may be cited as the ‘‘Teacher Ex- the school, and of faculty at the institution Amendment. cellence in America Challenge Act of 1998’. I agree with my colleagues about the impor- of higher education. SEC. 1102. PURPOSE. (6) SECONDARY SCHOOL.—The term ‘‘second- tance of ensuring autonomy for university ad- The purpose of this title is to improve the ary school’’ means a public secondary school. ministrators for their own athletic programs. I preparation and professional development of (7) TEACHER.—The term ‘‘teacher’’ means am astounded at the thought of the compli- teachers and the academic achievement of an elementary school or secondary school ance issues associated with the provision in students by encouraging partnerships among teacher. the bill this amendment proposes to strike. I institutions of higher education, elementary SEC. 1105. PROGRAM AUTHORIZED. am also concerned that this is a thinly veiled schools or secondary schools, local edu- (a) IN GENERAL.—From the amount appro- attempt to undermine the gains that we have cational agencies, State educational agen- priated under section 1111 and not reserved cies, teacher organizations, and nonprofit or- made through the Title IX program. under section 1109 for a fiscal year, the Sec- ganizations. retary may award grants, on a competitive The provision in H.R. 6 that the Riggs-Roe- SEC. 1103. GOALS. basis, to professional development partner- mer amendment would eliminate would force The goals of this title are as follows: ships to enable the partnerships to pay the recipients of Higher Education Act funds to (1) To support and improve the education Federal share of the cost of providing teach- justify cuts in college athletic programs. of students and the achievement of higher er preparation, induction, classroom experi- Forcing an institution to maintain a failed academic standards by students, through the ence, and professional development opportu- program for four years after they report the cut enhanced professional development of teach- nities to prospective, beginning, and veteran is ludicrous. Imagine if this requirement were ers. teachers while improving the education of (2) To ensure a strong and steady supply of imposed on Congress. We would not be able students in the classroom. new teachers who are qualified, well-trained, (b) DURATION; PLANNING.—The Secretary to cut a program even if an emergency de- and knowledgeable and experienced in effec- shall award grants under this title for a pe- manded it. We would never accept such a re- tive means of instruction, and who represent riod of 5 years, the first year of which may striction and should not impose one on univer- the diversity of the American people, in be used for planning to conduct the activi- sity administrators. order to meet the challenges of working with ties described in section 1106. H2886 CONGRESSIONAL RECORD — HOUSE May 6, 1998

(c) PAYMENTS; FEDERAL SHARE; NON-FED- (A) coordinating with, and obtaining the (4) describe how the partnership will re- ERAL SHARE.— participation of, schools, colleges, or depart- structure and improve teaching, teacher (1) PAYMENTS.—The Secretary shall make ments of arts and science; preparation, and development programs at annual payments pursuant to a grant award- (B) preparing teachers to work with di- the institution of higher education and the ed under this title. verse student populations; and professional development school, and how (2) FEDERAL SHARE.—The Federal share of (C) preparing teachers to implement re- such systemic changes will contribute to in- the costs described in subsection (a)(1) shall search-based, demonstrably successful, and creased student achievement; be 80 percent. replicable, instructional programs and prac- (5) describe how the partnership will pre- (3) NON-FEDERAL SHARE.—The non-Federal tices that increase student achievement; pare teachers to implement research-based, share of the costs described in subsection (3) incorporating clinical learning in the demonstrably successful, and replicable, in- (a)(1) may be in cash or in-kind, fairly evalu- coursework for prospective teachers, and in structional programs and practices that in- ated. the induction activities for beginning teach- crease student achievement; (d) CONTINUING ELIGIBILITY.— ers; (6) describe how the teacher preparation (1) 2ND AND 3D YEARS.—The Secretary may (4) mentoring of prospective and beginning program in the institution of higher edu- make a grant payment under this section for teachers by veteran teachers in instructional cation, and the induction activities and on- each of the 2 fiscal years after the first fiscal skills, classroom management skills, and going professional development opportuni- year a professional development partnership strategies to effectively assess student ties in the professional development school, receives such a payment, only if the Sec- progress and achievement; incorporate— retary determines that the partnership, (5) providing high quality professional de- (A) an understanding of core concepts, through the activities assisted under this velopment to veteran teachers, including the structure, and tools of inquiry as a founda- title, has made reasonable progress toward rotation, for varying periods of time, of vet- tion for subject matter pedagogy; and meeting the criteria described in paragraph eran teachers— (B) knowledge of curriculum and assess- (3). (A) who are associated with the partner- ment design as a basis for analyzing and re- (2) 4TH AND 5TH YEARS.—The Secretary may ship to elementary schools or secondary sponding to student learning; make a grant payment under this section for schools not associated with the partnership (7) describe how the partnership will pre- each of the 2 fiscal years after the third fis- in order to enable such veteran teachers to pare teachers to work with diverse student cal year a professional development partner- act as a resource for all teachers in the local populations, including minority individuals ship receives such a payment, only if the educational agency or State; and and individuals with disabilities; Secretary determines that the partnership, (B) who are not associated with the part- (8) describe how the partnership will pre- through the activities assisted under this nership to elementary schools or secondary pare teachers to use technology to teach stu- title, has met the criteria described in para- schools associated with the partnership in dents to high academic standards; graph (3). order to enable such veteran teachers to ob- (9) describe how the research and knowl- (3) CRITERIA.—The criteria referred to in serve how teaching and professional develop- edge generated by the partnership will be paragraphs (1) and (2) are as follows: ment occurs in professional development disseminated to and implemented in— (A) Increased student achievement as de- schools; (A) elementary schools or secondary termined by increased graduation rates, de- (6) preparation time for teachers in the schools served by the local educational agen- creased dropout rates, or higher scores on professional development school and faculty cy or located in the State; and local, State, or national assessments for a of the institution of higher education to (B) institutions of higher education in the year compared to student achievement as de- jointly design and implement the teacher State; termined by the rates or scores, as the case preparation curriculum, classroom experi- (10)(A) describe how the partnership will may be, for the year prior to the year for ences, and ongoing professional development coordinate the activities assisted under this which a grant under this title is received. opportunities; title with other professional development ac- (B) Improved teacher preparation and de- (7) preparing teachers to use technology to tivities for teachers, including activities as- velopment programs, and student edu- teach students to high academic standards; sisted under titles I and II of the Elementary cational programs. (8) developing and instituting ongoing per- and Secondary Education Act of 1965 (20 (C) Increased opportunities for enhanced formance-based review procedures to assist U.S.C. 6301 et seq., 6601 et seq.), the Goals and ongoing professional development of and support teachers’ learning; 2000: Educate America Act (20 U.S.C. 5801 et teachers. (9) activities designed to involve parents in seq.), the Individuals with Disabilities Edu- (D) An increased number of well-prepared the partnership; cation Act (20 U.S.C. 1400 et seq.), and the individuals graduating from a school, col- (10) research to improve teaching and Carl D. Perkins Vocational and Applied lege, or department of education within an learning by teachers in the professional de- Technology Education Act (20 U.S.C. 2301 et institution of higher education and entering velopment school and faculty at the institu- seq.); and the teaching profession. tion of higher education; and (B) describe how the activities assisted (E) Increased recruitment to, and gradua- (11) activities designed to disseminate in- under this title are consistent with Federal tion from, a school, college, or department of formation, regarding the teaching strategies and State educational reform activities that education within an institution of higher and best practices implemented by the pro- promote student achievement of higher aca- education with respect to minority individ- fessional development school, to— demic standards; uals. (A) teachers in elementary schools or sec- (11) describe which member of the partner- (F) Increased placement of qualified and ondary schools, which are served by the local ship will act as the fiscal agent for the part- well-prepared teachers in elementary schools educational agency or located in the State, nership and be responsible for the receipt or secondary schools, and increased assign- that are not associated with the professional and disbursement of grant funds under this ment of such teachers to teach the subject development partnership; and title; matter in which the teachers received a de- (B) institutions of higher education in the (12) describe how the grant funds will be di- gree or specialized training. State. vided among the institution of higher edu- (G) Increased dissemination of teaching (b) CONSTRUCTION PROHIBITED.—No grant cation, the elementary school or secondary strategies and best practices by teachers as- funds provided under this title may be used school, the local educational agency, and sociated with the professional development for the construction, renovation, or repair of any other members of the partnership to school and faculty at the institution of high- any school or facility. support activities described in section 1106; er education. SEC. 1107. APPLICATIONS. (13) provide a description of the commit- ment of the resources of the partnership to (e) PRIORITY.—In awarding grants under Each professional development partnership the activities assisted under this title, in- this title, the Secretary shall give priority desiring a grant under this title shall submit cluding financial support, faculty participa- to professional development partnerships an application to the Secretary at such time, tion, and time commitments; and serving elementary schools, secondary in such manner, and accompanied by such in- (14) describe the commitment of the part- schools, or local educational agencies, that formation as the Secretary may require. nership to continue the activities assisted serve high percentages of children from fam- Each such application shall— under this title without grant funds provided ilies below the poverty line. (1) describe the composition of the partner- ship; under this title. SEC. 1106. AUTHORIZED ACTIVITIES. (2) describe how the partnership will in- SEC. 1108. ASSURANCES. (a) IN GENERAL.—Each professional devel- clude the participation of the schools, col- Each application submitted under this opment partnership receiving a grant under leges, or departments of arts and sciences title shall contain an assurance that the pro- this title shall use the grant funds for— within the institution of higher education to fessional development partnership— (1) creating, restructuring, or supporting ensure the integration of pedagogy and con- (1) will enter into an agreement that com- professional development schools; tent in teacher preparation; mits the members of the partnership to the (2) enhancing and restructuring the teach- (3) identify how the goals described in sec- support of students’ learning, the prepara- er preparation program at the school, col- tion 1103 will be met and the criteria that tion of prospective and beginning teachers, lege, or department of education within the will be used to evaluate and measure wheth- the continuing professional development of institution of higher education, including— er the partnership is meeting the goals; veteran teachers, the periodic review of May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2887 teachers, standards-based teaching and Ms. MILLENDER-MCDONALD. I that the present bill has. We see this as learning, practice-based inquiry, and col- offer this amendment, Mr. Chairman, a need, if we are going to encourage laboration among members of the partner- because we must improve the quality more professional development, that is ship; of teachers teaching our children. As a sorely needed for qualified teachers. (2) will use teachers of excellence, who have mastered teaching techniques and sub- former educator in the Los Angeles It also mandates governors to submit ject areas, including teachers certified by Unified School District, I know the dis- grant applications instead of allowing the National Board for Professional Teach- couragement and despair that saps the individual professional development ing Standards, to assist prospective and be- morale and inspiration of our teachers, partnerships to submit their own grant ginning teachers; which directly impacts our children. I applications. (3) will provide for adequate preparation believe that we must restore the stat- Mr. Chairman, I do urge that my col- time to be made available to teachers in the ure and importance of the profession of leagues support this teacher excellence professional development school and faculty teaching. We must have the best- amendment as it ensures America’s at the institution of higher education to teachers be the best trained they can allow the teachers and faculty time to joint- trained teachers if we expect our chil- ly develop programs and curricula for pro- dren to be the best. be to educate our children for the spective and beginning teachers, ongoing This is why I have offered the Teach- world of work; and for that, Mr. Chair- professional development opportunities, and er Excellence Amendment which will man, I ask for the approval of the the other authorized activities described in change the way teachers are trained amendment. section 1106; and and improve the quality of teaching in Mr. GOODLING. Mr. Chairman, will (4) will develop organizational structures America’s classrooms. The language the gentlewoman yield? that allow principals and key administrators implements some of the recommenda- Ms. MILLENDER-MCDONALD. I to devote sufficient time to adequately par- tions from the National Commission on yield to the gentleman from Pennsyl- ticipate in the professional development of vania. their staffs, including frequent observation Teaching in America’s Future, of and critique of classroom instruction. which I am the only Member of Con- Mr. GOODLING. Mr. Chairman, as I SEC. 1109. NATIONAL ACTIVITIES. gress who serves on that commission. understand it, we are working with the (a) IN GENERAL.—The Secretary shall re- My amendment, Mr. Chairman, will gentlewoman between now and con- serve a total of not more than 10 percent of directly connect our teacher prepara- ference time to see what we can do the amount appropriated under section 1111 tion system to our schools by estab- with her desires. for each fiscal year for evaluation activities lishing a competitive grant program Ms. MILLENDER-MCDONALD. Mr. under subsection (b), and the dissemination for professional development partner- Chairman, I do hope that we can work of information under subsection (c). together because there are a lot of pro- (b) NATIONAL EVALUATION.—The Secretary, ship consisting of colleges, public by grant or contract, shall provide for an an- schools, State and local educational visions in my amendment that are not nual, independent, national evaluation of the agencies, teacher organizations, profes- in the present bill, and I think it is activities of the professional development sional education organizations and oth- critical that we include these provi- partnerships assisted under this title. The ers. If we are to make sure or to ensure sions if we are going to indeed talk evaluation shall be conducted not later than that teachers are professionally about professional training for teach- 3 years after the date of enactment of the trained, Mr. Chairman, we must make ers and ensure that teachers are quali- Teacher Excellence in America Challenge sure that we then have the type of pro- fied to teach in that discipline. And for Act of 1998 and each succeeding year there- that reason, I sure hope that I have the after. The Secretary shall report to Congress fessional development that will not and the public the results of such evaluation. just be weekend professional develop- understanding from the gentleman The evaluation, at a minimum, shall assess ment but will be ongoing professional that we will work with the provisions the short-term and long-term impacts and development. that I have in concert with what the outcomes of the activities assisted under The amendment also provides for the gentleman has. this title, including— continuing development and profes- For that reason, Mr. Chairman, I ask (1) the extent to which professional devel- sional training of veteran teachers, and unanimous consent to withdraw my opment partnerships enhance student it also provides for mentorship of pro- amendment. achievement; spective and beginning teachers by vet- The CHAIRMAN pro tempore. Is (2) how, and the extent to which, profes- there objection to the request of the sional development partnerships lead to im- eran teachers. We recognize that begin- provements in the quality of teachers; ning teachers must have pre-induction gentlewoman from California? (3) the extent to which professional devel- and post-induction training and sup- There was no objection. opment partnerships improve recruitment port systems. Therefore, this bill and The CHAIRMAN pro tempore. The and retention rates among beginning teach- this amendment would allow for that amendment offered by the gentle- ers, including beginning minority teachers; type of professional development of woman from California (Ms. and veteran teachers. MILLENDER-MCDONALD) is withdrawn. (4) the extent to which professional devel- The amendment also increases re- AMENDMENT NO. 31 OFFERED BY MS. JACKSON- opment partnerships lead to the assignment cruitment to outreach for more diverse LEE OF TEXAS of beginning teachers to public elementary Ms. JACKSON-LEE of Texas. Mr. or secondary schools that have a shortage of students toward teacher discipline. It teachers who teach the subject matter in prioritizes awarding of grants to pro- Chairman, I offer an amendment. which the teacher received a degree or spe- grams serving low-income areas. It pro- The CHAIRMAN pro tempore. The cialized training. motes the use of teachers of excellence, Clerk will designate the amendment. (c) DISSEMINATION OF INFORMATION.—The who have master teaching techniques The text of the amendment is as fol- Secretary shall disseminate information (in- in subject areas, to come back and lows: cluding creating and maintaining a national Amendment No. 31 offered by Ms. JACKSON- database) regarding outstanding professional teach those beginning teachers, as well as teachers that are certified by the LEE of Texas: at the end of the bill, add the development schools, practices, and pro- following new title: grams. National Board of Professional Teach- ing Standards, to assist prospective TITLE XIII—EARLY DYSLEXIA SEC. 1110. SUPPLEMENT NOT SUPPLANT. DETECTION Funds appropriated under section 1111 and beginning teachers. shall be used to supplement and not supplant Now some of the weaknesses of the SEC. 1202. EARLY DYSLEXIA DETECTION. Directs the Secretary to conduct a study other Federal, State, and local public funds underlying bill: It prohibits a national expended for the professional development of and submit a report to the Congress on system of teaching certification, and methods for identifying students with dys- elementary school and secondary school we from the National Commission of teachers. lexia early in their educational training, and Teaching in America’s Future recog- conduct such study in conjunction with the SEC. 1111. AUTHORIZATION OF APPROPRIATIONS. National Academy of Sciences. There is authorized to be appropriated to nize it is the fact that we must have a carry out this title $100,000,000 for fiscal year national system of teacher certifi- MODIFICATION TO AMENDMENT NO. 31 OFFERED 1999, and such sums as may be necessary for cation so that we will ensure that BY MS. JACKSON-LEE OF TEXAS each of the fiscal years 2000 through 2003. teachers are certified to teach in those Ms. JACKSON-LEE of Texas. Mr. (Ms. MILLENDER-MCDONALD asked prospective disciplines. Chairman, I ask unanimous consent to and was given permission to revise and This amendment also authorizes $100 modify my amendment with the modi- extend her remarks.) million as opposed to the 18 million fication at the desk. H2888 CONGRESSIONAL RECORD — HOUSE May 6, 1998 The CHAIRMAN pro tempore. The Mr. Chairman, this is destructive and that everyone who has a learning dis- Clerk will report the modification. devastating. If an adult has a learning ability has an opportunity to learn. The Clerk read as follows: disability, they may experience many b 1815 Modification to amendment No. 31 offered problems, but they no longer spend Mr. GOODLING. Mr. Chairman, will by Ms. JACKSON-LEE of Texas: in lieu of the their day in school and cannot turn to matter proposed to be added at the end of the public school system for evaluation the gentlewoman yield? the bill, add the following: and special instruction. Our colleges do Ms. JACKSON-LEE of Texas. I yield TITLE XI—SENSE OF THE HOUSE OF REP- have this ability. to the gentleman from Pennsylvania. RESENTATIVES REGARDING DETEC- According to Dr. Sally Shaywitz, de- Mr. GOODLING. Mr. Chairman, we TION OF LEARNING DISABILITIES, velopmental dyslexia is characterized accept the gentlewoman’s sense of Con- PARTICULARLY DYSLEXIA, IN POST- by an unexpected difficulty in reading gress resolution. SECONDARY EDUCATION Ms. JACKSON-LEE of Texas. Mr. in children and adults who otherwise Chairman, I thank the gentleman from SEC. 1101. SENSE OF THE HOUSE OF REPRESENT- possess the intelligence, motivation, ATIVES. Pennsylvania. and schooling considered necessary for It is the sense of the House of Representa- Mr. Chairman, I rise to offer a Sense of accurate and fluent reading in order to tives that colleges and universities receiving Congress Amendment to H.R. 6, the Higher be able to succeed. I could call off the assistance under the Higher Education Act Education Amendment of 1998. This amend- roll, Mr. Chairman, of so many people of 1965 shall establish policies for identifying ment directs the Secretary of Education to students with learning disabilities, specifi- of excellence throughout this Nation conduct colleges and universities to create cally students with dyslexia, early during who will tell my colleagues, both quiet- policies for identifying students with dyslexia their postsecondary educational training so ly and publicly, ‘‘I have dyslexia,’’ only early in their college or university training. they may have the ability to receive higher discovered, however, late in life. Dys- education opportunities. Fifteen percent of the U.S. population-about lexia is the most common and most one of seven-or 39 million Americans have The CHAIRMAN pro tempore. Is carefully studied of the learning dis- there objection to the modification of- some form of learning disability, according to abilities, affecting 80 percent of all the National Institutes of Health. fered by the gentlewoman from Texas? those identified as learning disabled. There was no objection. While some students come to college al- Many become aware of dyslexia later in ready identified as having learning disabilities, The CHAIRMAN pro tempore. The life because of the more rigorous pace modification is agreed to. others may not recognize or begin to under- of college. stand their difficulties until they reach college. Ms. JACKSON-LEE of Texas. Mr. So it is very important that this Chairman, I do want to thank the gen- Despite greater awareness of learning disabil- sense of Congress does acknowledge ities in elementary and high schools, children tleman from Pennsylvania (Mr. GOOD- that education means excellence, and LING) the chairperson, for both cooper- still slip through the cracks; parents and teach- because of excellence we are going to ers are understandably reluctant to character- ating with me on this sense of Con- work with the chairperson and demand gress, but as well acknowledging the ize a child's problems as ``disabilities.'' that we focus on this very important People with learning disabilities are as intel- many efforts that we have offered and element. constructed dealing with learning dis- ligent as the rest of the population. Their Let me also say, Mr. Chairman, if I learning disability, however, creates a gap be- abilities and, in particular, dyslexia. might step briefly aside to say as the Let me thank the gentleman from Mis- tween ability and performance. Riggs amendment comes to the floor of Students with learning disabilities come to souri (Mr. CLAY) for his kindness and the House, it has not yet come, but be- college with the same motivations as other cooperation as well, the gentleman cause I think these are so much inter- students: to explore interests, broaden knowl- from California (Mr. MCKEON), and the twined and related, I simply want to edge and understanding, satisfy curiosity, and gentleman from Michigan (Mr. KILDEE) acknowledge my strong opposition to prepare to contribute to the working world and for their sensitivity to this issue. the Riggs amendment and will revise to society. Fifteen percent of the U.S. popu- my remarks; for it is evident that in An article that appeared in the New England lation, about 1 of 7 or 39 million Ameri- Houston when we defeated Proposition Journal of Medicine says the treatment of the cans, have some form of learning dis- A, it is very clear that in defeating reading disorder dyslexia demands a life-span ability according to the National Insti- proposition A, we in Houston and in perspective. Adults who have trouble reading tutes of Health. While some students Texas have said no to eliminating af- or learning usually have had these problems come to college already identified as firmative action. since they were children. Their problems may having learning disabilities, others The Riggs amendment would propose stem from having a learning disability that may not be recognized or begin to un- to eliminate affirmative action in went undetected or untreated as a child. derstand their difficulties until they higher education. It is the same thing If an adult has a learning disability they may reach college, and in particular be- as holding someone back, not giving experience many problems, but they no longer cause the pace changes. them the opportunity. We have seen spend their day in school and cannot turn to Despite greater awareness of learning the evidence of diminishing applica- the public school system for evaluation and disabilities in elementary and high tions for Hispanics and African Ameri- special instruction. schools, children still slip through the cans in California and the devastation According to Dr. Sally E. Shaywitz, develop- cracks. Parents and teachers are un- of Hopwood in Texas. mental dyslexia is characterized by an unex- derstanding the reluctance to charac- I would simply say, Mr. Chairman, pected difficulty in reading in children and terize their children’s problems as dis- that it is important that we create op- adults who otherwise posses the intelligence, abilities, and therefore people with portunities at all levels. Vote down the motivation, and schooling considered nec- learning disabilities come as intel- Riggs amendment. And I hope that my essary for accurate and fluent reading. ligent human beings and are as intel- sense of Congress on the issue of dys- Dyslexia is the most common and most ligent as the rest of the population, but lexia dealing with learning disabilities carefully studied of the learning disabilities, af- a gap begins. Students with learning will see more highlight and more light fecting 80 percent of all those identified as disabilities come to college with the on this issue of making sure that those learning disabled. same motivations as other students. very bright and intelligent individuals The need to better understand the source of An article that appeared in the New with learning disorders and dyslexia be learning disabilities in adults is extremely im- England Journal of Medicine said, ‘‘A treated in such a way that our colleges portant. Persons with learning disability may treatment of reading disorder, dys- detect it and give them the oppor- exhibit several of many behaviors. lexia, demands a life-span perspective. tunity to succeed and have an effective They may demonstrate difficulty in reading, Why do you say that we have not de- and positive career. writing, spelling, and/or using numerical con- tected it in the earlier years?’’ Well, With that, Mr. Chairman, I would ask cepts in contrast with average to superior sometimes that does not occur. Stu- the gentleman from Pennsylvania (Mr. skills in other areas. They may have poorly dents go all the way through high GOODLING just for a moment, and I will formed handwriting. They may have trouble school, come to college and find out at yield on the dyslexia sense of Congress; listening to a lecture and taking notes at the the moment when they are looking for I would appreciate it if we could work same time. The person may be easily dis- their career, they cannot function. together on this idea of making sure tracted by background noise. They may have May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2889 trouble understanding or following directions. cisely what we feared would result from the Therefore, we must continue our commit- Confuses similar letters such as ``b'' and ``d'' elimination of affirmative action at Boalt.'' In ment to prioritize diversity as an important and or ``p'' and ``q''. Confuses similar numbers Texas the numbers are no better. In the class worthy necessity in achieving the goal of true such as 3 and 8, 6 and 9 or changes se- that began at the University of Texas Law racial inclusion in this country. As the great quences of numbers such as 14 and 41. This School last fall, of the 791 students admitted, civil rights activist and former national director is only a short list of those things which may only 5 African Americans and 18 Hispanics of the Urban League, Whitney Moore Young, indicate dyslexia in an adult. were admitted. This is a striking contrast to Jr. Wrote in his 1964 book To Be Equal, ``only The diagnostic process for adults with learn- the 65 African Americans and 70 Mexican hopelessly insecure, tragically immature peo- ing disabilities is different from diagnosis and Americans admitted last year. ple need to surround themselves with same- testing for children. While diagnosis for chil- Additionally, undergraduate enrollment has ness. People who are secure and mature, dren and youth is tied to the education proc- dropped as well. 421 African Americans and people who are sophisticated, want diversity. ess, diagnosis for adults is more directly relat- 1,568 Hispanics were admitted to the Univer- One doesn't grow by living and associating ed to problems in employment, life situations, sity of Texas in 1996. However, in 1997, only only with people who look like oneself, have and education. 314 African Americans and 1,333 Hispanics the same background, religion, and interests.'' Adults becoming aware of dyslexia later in received offers for admittance. The total enroll- So please join with me and vote down the their educational career can be due to the ment at the four University of Texas medical Riggs Amendment of H.R. 6. change of pace that is found in colleges and schools has dropped from 41 African Ameri- The CHAIRMAN pro tempore (Mr. universities as well as the volume of work re- cans in 1996 to only 22 for 1997. The assault EWING). The question is on the amend- quired to compete in higher education. on affirmative action will have dramatic results ment offered by the gentlewoman from in the number of doctors, lawyers, individuals Policies by colleges and universities creat- Texas (Ms. JACKSON-LEE). ing methods for identifying students with dys- holding advanced degrees in the African The amendment was agreed to. lexia early in their college or university training American and minority communities. There is no doubt that these dismal num- AMENDMENT NO. 63 OFFERED BY MR. HALL OF can allow us to provide assistance to the TEXAS learning disabled as they work to obtain de- bers in Texas are a direct result of the deci- sions in Hopwood versus Texas. Four white Mr. HALL of Texas. Mr. Chairman, I grees or specialized training for careers. offer an amendment. Mr. Chairman, I rise today to speak against rejected applicants to the University of Texas school of law sued in Federal court, claiming The CHAIRMAN pro tempore. Did the Riggs Amendment to H.R. 6, the Higher the gentleman from Texas have his Education Amendments of 1998. Plainly stat- that the law school's 1992 affirmative action program violated the U.S. Constitution. The amendment printed in the RECORD? ed, the Riggs Amendment, if passed, would Mr. HALL of Texas. Mr. Chairman, it end all affirmative action measures directed court held that the state university's law school admission program which discriminated in is my understanding that it was. toward creating more ethnically diverse stu- The CHAIRMAN pro tempore. The dent bodies in our Nation's institutions of high- favor of minority applicants by giving substan- tial racial preferences in its admission program Clerk has already read title VIII. Does er learning. The issue here is very clear, the the gentleman request unanimous con- Riggs Amendment is a threat to the very kind violated equal protection. The panel of justices in Hopwood ruled that sent for his amendment to be consid- of inclusiveness that we Americans say that any consideration of race or ethnicity by the ered? we unequivocally cherish. Currently, as it has University of Texas law school for the purpose Mr. HALL of Texas. Mr. Chairman, I been repeatedly clarified by the highest Court of achieving a diverse student body is not a ask unanimous consent that my in the land, any higher education admissions compelling interest. The court reasoned that amendment be considered at this point. program that takes into account ``race, sex, the use of race for diversity purposes was The CHAIRMAN pro tempore. Is color, ethnicity or national origin'', can only do grounded in racial sterotyping and stigmatized there objection to the request of the so in a narrowly tailored fashion to remedy a individuals on the basis of race. Additionally, gentleman from Texas? specific art of discrimination (Adarand v. Pena, the court in Hopwood rejected consideration of There was no objection. O'Connor) or as a ``plus factor'' to a college or race as a remedy for the present effects of The CHAIRMAN. The Clerk will des- university seeking to create a culturally and past discrimination. The court refused to in- ignate the amendment. ethnically diverse student body (Bakke v. Cali- clude prior discrimination by the undergradu- The text of the amendment is as fol- fornia Board of Regents, Powell). Simply stat- ate school of the university or discrimination lows: ed, affirmative action admissions programs in within Texas' elementary and secondary Amendment No. 63 offered by Mr. HALL of this country do not operate without clear legal schools as a reason for the law school to use Texas: At the appropriate place in the bill to constraints. Blind preferences are not given to a remedial racial classification. Title VIII insert the following new section: women and minorities in our nation's higher We seek affirmative action today because SEC. TEXAS COLLEGE PROVISION. education admissions programs; essentially, we are still suffering from the history of affirm- The Secretary may not consider audit defi- affirmative action is a means to an end. The ative racism in this county. Even the court in ciencies relating to record keeping with re- end of making our colleges and universities Adarand acknowledged that the government spect to qualifying students for financial aid resemble the beautiful multi-ethnic diversity of at Texas College, located in Tyler, Texas, for has a compelling interest in remedying the academic years prior to and including aca- our proud nation. ``unhappy persistence of both the practice and There is no doubt that without the active demic year 1994–1995 in determining whether the lingering effects of racial discrimination Texas College complies with the financial re- participation of the federal government in pro- against minority groups in this country.'' I ve- sponsibility and administrative capacity moting affirmative action programs, the ability hemently disagree with the court in Hopwood standards under Section 498 of the Higher of minorities and women to effectively com- in saying that diversity is not a compelling in- Education Act of 1965, if Texas College has pete and matriculate into institutions of higher terest. It is evident that the justices in Hop- filed an affidavit with the Department of learning will be dramatically reduced. Accord- wood have not had the pleasure and experi- Education stating that it has made a good ing to information released by Boalt Hall at the ence of participating in a diverse setting. As faith effort to furnish records to the Depart- ment with respect to such audits. University of California, Berkeley, the elimi- Jonathan Alger of the American Association of nation of affirmative action has produced a University Professors wrote, ``diversity is not a Mr. HALL of Texas. Mr. Chairman, substantial drop in the number of offers of ad- dirty word.'' this amendment would preclude the mission made to minority applicants other than Regents of the University of California ver- U.S. Department of Education from im- Asians for fall 1997 at UC Berkeley's school of sus Bakke is the law of the land. In the 1978 posing audit deficiencies on Texas Col- law. Boalt Hall made 815 offers of admission Bakke decision, Justice Powell found that a di- lege that result from records not main- last year; 75 were made to African Americans verse student body in a university setting en- tained or retained by the college ad- and 78 were made to Hispanics/Latinos. How- hances the learning environment for all stu- ministrators for academic years 1990– ever, under the elimination of affirmative ac- dents and therefore is a compelling interest in 1991 to the arrival of the current ad- tion at Boalt Hall, of the 792 offers of admis- support of affirmative action. The court held ministration at the college in 1994. sion, only 14 were made to African Americans that the rigid reservation of 16 places on the Although a very diligent effort has and only 39 were made to Hispanics/Latinos. basis of race was unconstitutional. However, been made and is continuing to be In response to these dismal numbers, Boalt Bakke concluded that the flexible consider- made by the staff of the current admin- Hall dean Kay Hill stated, ``this dramatic de- ation of race, as one of many factors used to istration to locate these records, it is cline in the number of offers of admissions obtain a highly qualified, diverse entering class to no avail due to failures of previous made to non-Asian minority applicants is pre- as permitted by the constitution. personnel. There has been an effort H2890 CONGRESSIONAL RECORD — HOUSE May 6, 1998 made to produce these records, and Mr. HALL of Texas. Mr. Chairman, Engel Levin Rohrabacher English Lewis (GA) Rothman they are just not available. reclaiming my time, I thank the gen- Ensign Lofgren Roukema They produced a number of answers tleman. Eshoo Lowey Roybal-Allard to the questions, inquiries submitted Most of the issues have already been Etheridge Luther Royce by the Department of Education, I addressed by Texas College and the Evans Maloney (CT) Rush Ewing Maloney (NY) Salmon think enough to allow the department subject of repayment agreements have Farr Manton Sanchez some leeway, and we are working with been satisfied by the college and are Fattah Markey Sanders the department at this time in order to the subject of an appeal that is filed Fazio Martinez Sandlin work this matter out. with the Department of Education. The Filner Mascara Sanford Texas College’s current application Ford Matsui Sawyer Department of Education is working Frank (MA) McCarthy (MO) Saxton for participation in the title IV student with us. Franks (NJ) McCarthy (NY) Scarborough assistance programs is being, I think, I thank the Chairman and I thank Frelinghuysen McCrery Schaffer, Bob needlessly delayed based on the ab- Frost McDermott Schumer my colleagues for their time. Furse McGovern Scott sence of records and assertions that Mr. Chairman, I ask unanimous con- Gejdenson McHale Sensenbrenner failure to produce such records means sent to withdraw the amendment. Gephardt McHugh Serrano the current administration is finan- The CHAIRMAN pro tempore. Is Gibbons McIntyre Shays cially irresponsible and administra- Goode McKinney Sherman there objection to the request of the Goodlatte Meehan Sisisky tively incapable. gentleman from Texas? Gordon Meek (FL) Skelton That is just not the situation. We There was no objection. Graham Meeks (NY) Slaughter have Texas College, which is a black Green Menendez Smith (MI) college founded in 1894, affiliated with SEQUENTIAL VOTES POSTPONED IN COMMITTEE Greenwood Mica Smith (NJ) OF THE WHOLE Gutierrez Millender- Smith (OR) the Christian Methodist Episcopal The CHAIRMAN. Pursuant to House Hall (OH) McDonald Smith (TX) Church. Bishop Gilmore serves as the Hall (TX) Miller (CA) Smith, Adam Episcopal bishop in Texas. We have had Resolution 411, proceedings will now Hamilton Minge Snyder a new president, Dr. Strickland, at resume on those amendments on which Harman Mink Spence further proceedings were postponed in Hefley Moakley Stabenow Texas College since November of 1994. Hefner Moran (KS) Stark The members of the board and their the following order: Hilleary Moran (VA) Stearns associations have put millions of dol- Amendment No. 75 offered by Mr. Hilliard Morella Stenholm lars into this college in order to keep it ROEMER of Indiana; Hinchey Murtha Stokes Amendment No. 70 offered by Mr. Hinojosa Myrick Strickland open. They have, against great odds, Holden Nadler Stupak kept it open since the funds were cut MILLER of California; Hooley Neal Talent off in 1994. We intend to keep on doing Amendment No. 5 offered by Mr. STU- Horn Nethercutt Tanner PAK of Michigan. Hostettler Oberstar Tauscher that. Although Texas College may be Houghton Obey Tauzin liable for certain deficiencies associ- AMENDMENT NO. 75 OFFERED BY MR. ROEMER Hoyer Olver Taylor (MS) ated with the absence of these records, The CHAIRMAN. The pending busi- Hulshof Ortiz Taylor (NC) their absence should not bear on the ness is the demand for a recorded vote Istook Owens Thompson Jackson (IL) Oxley Thune present capacity to administer title IV on the amendment offered by the gen- Jackson-Lee Pallone Thurman funds with personnel, new personnel, tleman from Indiana (Mr. ROEMER) on (TX) Pappas Tierney new administrative policies, and new which further proceedings were post- Jefferson Pascrell Torres financial aid procedures. Jenkins Pastor Towns poned and on which the noes prevailed John Paul Turner Mr. Chairman, this amendment sim- by voice vote. Johnson (CT) Paxon Upton ply relieves Texas College, if they The Clerk will redesignate the Johnson (WI) Payne Velazquez make a good-faith effort to furnish amendment. Johnson, E. B. Pease Vento such records, from having to produce Jones Pelosi Visclosky The Clerk redesignated the amend- Kanjorski Peterson (MN) Walsh records that may no longer exist as it ment. Kaptur Peterson (PA) Wamp Kennedy (MA) Pickett Waters seeks to reestablish its title IV eligi- RECORDED VOTE bility. Kennedy (RI) Pomeroy Watkins The CHAIRMAN. A recorded vote has Mr. SESSIONS. Mr. Chairman, will Kennelly Porter Watt (NC) Kildee Portman Watts (OK) the gentleman yield? been demanded. A recorded vote was ordered. Kilpatrick Poshard Waxman Mr. HALL of Texas. I yield to the Kind (WI) Price (NC) Weldon (FL) gentleman from Texas. The CHAIRMAN. The Chair will re- King (NY) Quinn Weldon (PA) Mr. SESSIONS. Mr. Chairman, we duce to 5 minutes the time for any Kleczka Rahall Wexler electronic vote after the first vote in Klink Ramstad Weygand are discussing this issue because this Klug Rangel White has been an ongoing dialogue that the this series. Kucinich Reyes Whitfield gentleman from Texas (Mr. HALL) and I The vote was taken by electronic de- LaFalce Riggs Wise have had with the Department of Edu- vice, and there were—ayes 292, noes 129, LaHood Rivers Wolf not voting 11, as follows: Lampson Rodriguez Woolsey cation. We believe that our work on be- Lantos Roemer Wynn half of Texas College is not only very [Roll No. 130] Lee Rogers Yates deserving, but what we are attempting AYES—292 NOES—129 to do here this evening is to reinforce Abercrombie Bonior Cox Archer Crane Granger Ackerman Bono to the Department of Education that Coyne Armey Crapo Gutknecht Aderholt Borski we believe that Texas College is mak- Cramer Ballenger Cubin Hansen Allen Boswell Cummings Barr Davis (VA) Hastert ing every single effort that they can to Andrews Boucher Cunningham Bass DeLay Hastings (WA) comply with the Department of Edu- Bachus Boyd Danner Bilbray Diaz-Balart Hayworth Baesler Brown (CA) cation and, further, to make sure that Davis (FL) Bliley Doolittle Herger Baker Brown (FL) they have provided to the Department Davis (IL) Boehlert Dunn Hill Baldacci Brown (OH) Deal Boehner Ehrlich Hobson of Education those things that are nec- Barcia Bryant DeFazio Brady Everett Hoekstra Barrett (NE) Buyer essary for certification. DeGette Bunning Fawell Hunter Barrett (WI) Calvert The reason that we are here is be- Delahunt Burr Foley Hutchinson Bartlett Camp cause this discussion is taking place DeLauro Burton Forbes Hyde Barton Campbell Deutsch Callahan Fossella Inglis today about education, and we would Becerra Capps Dickey Canady Fowler Johnson, Sam Bentsen Cardin wish at this time to make sure that the Dicks Cannon Fox Kasich Bereuter Castle Department of Education knows that Dingell Chambliss Gallegly Kelly Berman Chabot Dixon Chenoweth Ganske Kim we are attempting to work with them; Berry Clay Doggett Coble Gekas Kingston and that the gentleman from Texas Bilirakis Clayton Dooley Coburn Gilchrest Knollenberg Bishop Clement (Mr. HALL) and I, while we are offering Dreier Collins Gillmor Kolbe Blagojevich Clyburn this amendment, I believe that at this Duncan Condit Gilman Largent Blumenauer Combest Edwards Cook Goodling Latham time we would wish not to go further Blunt Conyers Ehlers Cooksey Goss LaTourette with this amendment. Bonilla Costello Emerson May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2891 Lazio Northup Shadegg Boehlert Gibbons Matsui Scott Stearns Visclosky Leach Norwood Shaw Boehner Gilchrest McCarthy (MO) Serrano Stenholm Walsh Lewis (CA) Nussle Shimkus Bonior Gillmor McCarthy (NY) Shaw Stokes Wamp Lewis (KY) Packard Shuster Bono Gilman McCollum Shays Strickland Waters Linder Parker Skeen Borski Goode McCrery Sherman Stupak Watkins Lipinski Petri Smith, Linda Boswell Goodlatte McDade Shimkus Sununu Watt (NC) Livingston Pickering Snowbarger Boucher Goodling McDermott Shuster Talent Watts (OK) LoBiondo Pitts Solomon Boyd Gordon McGovern Sisisky Tanner Waxman Lucas Pombo Souder Brady Goss McHale Skeen Tauscher Weldon (FL) Manzullo Pryce (OH) Stump Brown (CA) Graham McHugh Skelton Tauzin Weldon (PA) McCollum Redmond Sununu Brown (FL) Granger McInnis Slaughter Taylor (MS) Weller McDade Regula Thomas Brown (OH) Green McIntosh Smith (NJ) Thomas Wexler McInnis Riley Thornberry Bryant Greenwood McIntyre Smith (OR) Thompson Weygand McIntosh Rogan Tiahrt Bunning Gutierrez McKeon Smith (TX) Thune White McKeon Ros-Lehtinen Traficant Burr Gutknecht McKinney Smith, Adam Thurman Whitfield Metcalf Ryun Weller Burton Hall (OH) Meehan Smith, Linda Tierney Wise Miller (FL) Sabo Wicker Buyer Hamilton Meek (FL) Snowbarger Torres Wolf Mollohan Schaefer, Dan Young (AK) Callahan Hansen Meeks (NY) Snyder Towns Woolsey Ney Sessions Young (FL) Calvert Harman Menendez Solomon Traficant Wynn Souder Turner Yates NOT VOTING—11 Camp Hastert Metcalf Campbell Hastings (WA) Mica Spence Upton Young (AK) Bateman Gonzalez Radanovich Canady Hayworth Millender- Stabenow Velazquez Young (FL) Carson Hastings (FL) Skaggs Capps Hefley McDonald Stark Vento Christensen McNulty Spratt Cardin Hefner Miller (CA) NOES—28 Doyle Neumann Castle Hill Minge Chabot Hilleary Mink Barr Johnson, Sam Sessions b 1844 Chambliss Hilliard Moakley Bonilla Kolbe Shadegg Chenoweth Hinchey Mollohan Cannon Largent Smith (MI) Messrs. HOEKSTRA, REDMOND, Clay Hinojosa Moran (KS) Coburn Miller (FL) Stump SKEEN, DAVIS of Virginia, GILMAN, Clayton Hobson Moran (VA) Collins Packard Taylor (NC) FOLEY and ROGAN changed their vote Clement Hoekstra Morella Cubin Paul Thornberry Clyburn Holden Murtha Dickey Pombo Tiahrt from ‘‘aye’’ to ‘‘no.’’ Coble Hooley Myrick Doolittle Rohrabacher Wicker Messrs. MCDERMOTT, DUNCAN, Combest Horn Nadler Hall (TX) Sanford CALVERT, JOHNSON of Wisconsin, Condit Hostettler Neal Herger Sensenbrenner BLUMENAUER, QUINN, MCHUGH, Conyers Houghton Nethercutt NOT VOTING—11 Cook Hoyer Ney DICKEY, PAXON, MCCRERY, SALM- Cooksey Hulshof Northup Bateman Gonzalez Radanovich ON, BROWN of California, ADERHOLT, Costello Hunter Norwood Carson Hastings (FL) Skaggs BAKER, MARTINEZ and SPENCE Cox Hutchinson Nussle Christensen McNulty Spratt Doyle Neumann changed their vote from ‘‘no’’ to ‘‘aye.’’ Coyne Hyde Oberstar Cramer Inglis Obey b So the amendment was agreed to. Crane Istook Olver 1855 The result of the vote was announced Crapo Jackson (IL) Ortiz Mr. FRELINGHUYSEN and Mr. as above recorded. Cummings Jackson-Lee Owens Cunningham (TX) Oxley ROYCE changed their vote from ‘‘no’’ ANNOUNCEMENT BY THE CHAIRMAN Danner Jefferson Pallone to ‘‘aye.’’ The CHAIRMAN. Pursuant to House Davis (FL) Jenkins Pappas So the amendment was agreed to. Resolution 411, the Chair announces Davis (IL) John Parker The result of the vote was announced Davis (VA) Johnson (CT) Pascrell the he will reduce to a minimum of 5 Deal Johnson (WI) Pastor as above recorded. minutes the period of time within DeFazio Johnson, E. B. Paxon AMENDMENT NO. 5 OFFERED BY MR. STUPAK which a vote by electronic device will DeGette Jones Payne The CHAIRMAN. The pending busi- be taken on each amendment on which Delahunt Kanjorski Pease DeLauro Kaptur Pelosi ness is the demand for a recorded vote the Chair has postponed further pro- DeLay Kasich Peterson (MN) on the amendment offered by the gen- ceedings. Deutsch Kelly Peterson (PA) tleman from Michigan (Mr. STUPAK) on Diaz-Balart Kennedy (MA) Petri AMENDMENT NO. 70 OFFERED BY MR. MILLER OF Dicks Kennedy (RI) Pickering which further proceedings were post- CALIFORNIA Dingell Kennelly Pickett poned and on which the noes prevailed The CHAIRMAN. The pending busi- Dixon Kildee Pitts by voice vote. ness is the demand for a recorded vote Doggett Kilpatrick Pomeroy Dooley Kim Porter The Clerk will redesignate the on the amendment offered by the gen- Dreier Kind (WI) Portman amendment. tleman from California (Mr. MILLER), Duncan King (NY) Poshard The Clerk redesignated the amend- on which further proceedings were Dunn Kingston Price (NC) ment. postponed and on which the ayes pre- Edwards Kleczka Pryce (OH) Ehlers Klink Quinn RECORDED VOTE vailed by voice vote. Ehrlich Klug Rahall The CHAIRMAN. A recorded vote has The Clerk will redesignate the Emerson Knollenberg Ramstad Engel Kucinich Rangel been demanded. amendment. A recorded vote was ordered. The Clerk redesignated the amend- English LaFalce Redmond Ensign LaHood Regula The vote was taken by electronic de- ment. Eshoo Lampson Reyes vice, and there were—ayes 219, noes 200, RECORDED VOTE Etheridge Lantos Riggs Evans Latham Riley not voting 13, as follows: The CHAIRMAN. A recorded vote has Everett LaTourette Rivers [Roll No. 132] been demanded. Ewing Lazio Rodriguez AYES—219 A recorded vote was ordered. Farr Leach Roemer Fattah Lee Rogan Abercrombie Brown (FL) DeLauro The CHAIRMAN. This will be a 5- Fawell Levin Rogers Ackerman Brown (OH) Deutsch minute vote. Fazio Lewis (CA) Ros-Lehtinen Andrews Capps Diaz-Balart The vote was taken by electronic de- Filner Lewis (GA) Rothman Bachus Cardin Dicks vice, and there were—ayes 393, noes 28, Foley Lewis (KY) Roukema Baesler Clay Dingell Forbes Linder Roybal-Allard Baker Clayton Dixon not voting 11, as follows: Ford Lipinski Royce Barcia Clyburn Doggett [Roll No. 131] Fossella Livingston Rush Barrett (WI) Coburn Dooley Fowler LoBiondo Ryun Becerra Conyers Edwards AYES—393 Fox Lofgren Sabo Bentsen Coyne Engel Abercrombie Baldacci Bereuter Frank (MA) Lowey Salmon Berman Cramer Eshoo Ackerman Ballenger Berman Franks (NJ) Lucas Sanchez Bishop Cummings Etheridge Aderholt Barcia Berry Frelinghuysen Luther Sanders Blagojevich Cunningham Evans Allen Barrett (NE) Bilbray Frost Maloney (CT) Sandlin Boehlert Danner Farr Andrews Barrett (WI) Bilirakis Furse Maloney (NY) Sawyer Bonior Davis (FL) Fattah Archer Bartlett Bishop Gallegly Manton Saxton Borski Davis (IL) Fazio Armey Barton Blagojevich Ganske Manzullo Scarborough Boswell Davis (VA) Filner Bachus Bass Bliley Gejdenson Markey Schaefer, Dan Boucher DeFazio Ford Baesler Becerra Blumenauer Gekas Martinez Schaffer, Bob Boyd DeGette Fox Baker Bentsen Blunt Gephardt Mascara Schumer Brown (CA) Delahunt Frost H2892 CONGRESSIONAL RECORD — HOUSE May 6, 1998 Furse Luther Reyes Northup Rohrabacher Spence (3) to recruit qualified women and minori- Ganske Maloney (CT) Rivers Norwood Roukema Stearns ties into the applicant pool for college ad- Gejdenson Maloney (NY) Rodriguez Packard Royce Stenholm missions; and Gephardt Manton Roemer Pappas Ryun Stump (4) to encourage colleges— Ros-Lehtinen Parker Salmon Sununu Gillmor Markey (A) to solicit applications from women and Gilman Martinez Rothman Paul Sanford Talent Gordon Mascara Roybal-Allard Paxon Scarborough Taylor (NC) minority students, and Graham Matsui Rush Pease Schaffer, Bob Thornberry (B) to include qualified women and minor- Green McCarthy (MO) Sabo Peterson (PA) Sensenbrenner Thune ity students into an applicant pool for ad- Greenwood McCarthy (NY) Sanchez Petri Sessions Tiahrt missions. Gutierrez McCrery Sanders Pickering Shadegg Tierney so long as such expansion, encouragement, Sandlin Pickett Shays Upton Hall (OH) McDermott recruitment, request, or inclusion does not Hamilton McGovern Sawyer Pitts Shimkus Walsh Harman McHale Saxton Pombo Shuster Watkins involve granting a preference, based in whole Hefner McHugh Schaefer, Dan Porter Sisisky Watts (OK) or in part or race, color, national origin, or Hill McInnis Schumer Portman Skeen Weldon (FL) sex, in selecting any person for admission. Hilliard McIntosh Scott Poshard Smith (MI) Weldon (PA) (d) DEFINITION.—As used in this section, Hinchey McIntyre Serrano Pryce (OH) Smith (OR) Weller the term ‘‘public institution of higher edu- Hinojosa McKinney Sherman Redmond Smith (TX) White cation’’ means any college, university, or Holden Meehan Skelton Regula Smith, Linda Whitfield postsecondary technical or vocational school Hooley Meek (FL) Slaughter Riggs Snowbarger Wicker Horn Meeks (NY) Smith (NJ) Riley Snyder Wolf operated in whole or in part by any govern- Houghton Menendez Smith, Adam Rogan Solomon Young (AK) mental agency, instrumentality, or entity. Hoyer Millender- Stabenow Rogers Souder The CHAIRMAN. Pursuant to the Jackson (IL) McDonald Stark order of the Committee of Tuesday, Jackson-Lee Miller (CA) Stokes NOT VOTING—13 (TX) Minge Strickland Bateman Hastings (FL) Shaw May 5, 1998, the gentleman from Cali- Jefferson Mink Stupak Carson McNulty Skaggs fornia (Mr. RIGGS) and the gentleman John Moakley Tanner Christensen Myrick Spratt from Missouri (Mr. CLAY) will each Johnson (CT) Mollohan Tauscher Doyle Neumann Johnson (WI) Moran (VA) Tauzin Gonzalez Radanovich control 1 hour. Taylor (MS) The Chair recognizes the gentleman Johnson, E. B. Morella b Kanjorski Murtha Thomas 1902 from California (Mr. RIGGS). Kaptur Nadler Thompson So the amendment was agreed to. Mr. RIGGS. Mr. Chairman, I yield Kennedy (MA) Neal Thurman Kennedy (RI) Nussle Torres The result of the vote was announced myself such time as I may consume. Kennelly Oberstar Towns as above recorded. Mr. Chairman, first of all, let me say Kildee Obey Traficant Mr. GOODLING. Mr. Chairman, I that I hope we can approach debating Kilpatrick Olver Turner move to strike the last word in order this issue with open minds and open Kind (WI) Ortiz Velazquez Kleczka Owens Vento to announce what the proceedings will hearts, and that we can stipulate at the Klink Oxley Visclosky be for this evening. beginning of this debate that we are Kucinich Pallone Wamp We now have a 2-hour window where people of good will who can have genu- LaFalce Pascrell Waters Lampson Pastor Watt (NC) there is a 2-hour debate on the Riggs ine disagreements at times but who, Lantos Payne Waxman amendment. We will then vote on the because of the high elective offices and Largent Pelosi Wexler Riggs amendment. Then we will have the public trust that we hold, have an LaTourette Peterson (MN) Weygand the Campbell amendment. And then we obligation to debate issues such as the Leach Pomeroy Wise Lee Price (NC) Woolsey will vote on the Campbell amendment. one that I put before the House this Levin Quinn Wynn Then we will have final passage. evening. Lewis (GA) Rahall Yates So everybody knows, the next 2 hours I want to say at the beginning of my Lofgren Ramstad Young (FL) will be general debate. We will finish Lowey Rangel comments that I acknowledge that dis- the bill this evening. crimination continues to exist in our NOES—200 AMENDMENT NO. 73 OFFERED BY MR. RIGGS society and that it is morally wrong, Aderholt Cooksey Hefley Mr. RIGGS. Mr. Chairman, I offer an but I believe we will never end dis- Allen Costello Herger amendment. crimination by practicing discrimina- Archer Cox Hilleary The CHAIRMAN. The Clerk will des- tion, and I believe it is time for the Armey Crane Hobson Baldacci Crapo Hoekstra ignate the amendment. United States Congress to end pref- Ballenger Cubin Hostettler The text of the amendment is as fol- erences once and for all. Barr Deal Hulshof lows: Now, let me, at the beginning of the Barrett (NE) DeLay Hunter debate, explain what my amendment Bartlett Dickey Hutchinson Amendment No. 73 offered by Mr. RIGGS: Barton Doolittle Hyde Add at the end the following new title (and does and does not do. First of all, I Bass Dreier Inglis conform the table of contents accordingly): should explain that my amendment is Bereuter Duncan Istook TITLE XI—DISCRIMINATION AND substantively different from the Berry Dunn Jenkins PREFERENTIAL TREATMENT Bilbray Ehlers Johnson, Sam amendment of the gentleman from Bilirakis Ehrlich Jones SEC. 1001. PROHIBITION AGAINST DISCRIMINA- California (Mr. CAMPBELL), which will Bliley Emerson Kasich TION AND PREFERENTIAL TREAT- follow mine. And not to preempt that Blumenauer English Kelly MENT. gentleman, but I am very pleased to Blunt Ensign Kim (a) PROHIBITION.—No public institution of Boehner Everett King (NY) higher education that participates in any have his support of my amendment and Bonilla Ewing Kingston program authorized under the Higher Edu- intend to reciprocate by supporting his Bono Fawell Klug cation Act of 1965 (20 U.S.C. 1001 et seq.) amendment. Brady Foley Knollenberg My amendment is very simple and Bryant Forbes Kolbe shall, in connection with admission to such Bunning Fossella LaHood institution, discriminate against, or grant straightforward. In a way, I guess it Burr Fowler Latham preferential treatment to, any person or would have been good for the Clerk to Burton Frank (MA) Lazio group based in whole or in part on the race, actually have read it, because it is con- Buyer Franks (NJ) Lewis (CA) sex, color, ethnicity, or national origin of cise enough. My amendment is pat- Callahan Frelinghuysen Lewis (KY) such person or group. Calvert Gallegly Linder terned after California’s Proposition (b) EXCEPTION.—This section does not pro- Camp Gekas Lipinski hibit preferential treatment in admissions 209, the California civil rights initia- Campbell Gibbons Livingston tive, and it is intended to bring an end Canady Gilchrest LoBiondo granted on the basis of affiliation with an In- Cannon Goode Lucas dian tribe by any tribally controlled college to racial preferences in college admis- Castle Goodlatte Manzullo or university that has a policy of granting sions. Chabot Goodling McCollum preferential treatment on the basis of such My amendment very specifically, Chambliss Goss McDade affiliation. Chenoweth Granger McKeon very succinctly bans public, I say (c) AFFIRMATIVE ACTION ENCOURAGED.—It is again, public colleges and universities Clement Gutknecht Metcalf the policy of the United States— Coble Hall (TX) Mica (1) to expand the applicant pool for college that accept Federal funding under the Collins Hansen Miller (FL) Higher Education Act from using racial Combest Hastert Moran (KS) admissions; Condit Hastings (WA) Nethercutt (2) to encourage college applications by or gender preferences in admissions. Cook Hayworth Ney women and minority students; My amendment does not in any way, May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2893 though, impinge on minority outreach sities receive substantial Federal-tax- That is wrong. That is as discrimina- programs or minority scholarships for payer funding for student financial aid tory in thought as racial preferences qualified individuals. under this legislation. are in practice. Stereotypes are rein- I am very proud of the fact that a Secondly, as I will point out in a forced, not diminished. couple of years ago I was recognized later colloquy with our colleague, the Secondly, individuals who are not and honored by the TRIO organization gentleman from Arizona (Mr. members of minority groups but are for my efforts to expand the funding HAYWORTH), I specifically excluded otherwise academically qualified stu- for TRIO, which is a minority outreach tribally-run institutions, colleges and dents are oftentimes excluded in order and minority scholarship program that universities on tribal reservations, or to admit individuals with lesser cre- encourages institutions of higher Indian lands, even though most of dentials. learning, 4-year colleges and univer- them are public, and my bill now ap- Let me just tell my colleagues one of sities, to establish partnerships with plies only to public colleges and uni- the arguments that is being made here. secondary institutions of learning, versities. But I did that because of the I want to make reference to a recent high schools. concerns that I heard, loud and clear, article in the New Republic by a man, So I want to say that I strongly be- about treaty obligations, tribal sov- Nathan Glazer, who wrote a book back lieve in affirmative steps to expand the ereignty, and the government-to-gov- in 1975 titled, provocatively enough, pool of qualified minority applicants at ernment relationship enjoyed between ‘‘Affirmative Discrimination,’’ and who every public college or university as the United States of America, the Fed- is now apparently reconsidering his po- long as, as long as the school admission eral Government, and tribal govern- sition and comes to the conclusion that decision is not made on the basis of ments around the country. affirmative action is bad but banning it race or sex. I believe that we can My amendment does not ban single- is worse. achieve the twin goals of diversity in sex schools. In fact, it expressly allows In the context of this article he says, minority outreach without the need for them. It does not prevent courts from ‘‘I have focused on the effects of af- preferences that favor one minority fashioning remedies to actual discrimi- firmative action, or its possible aboli- group over another, as has been the nation. There is ample authority for tion, on African Americans. But of case in California, and as I will elabo- such action under current civil rights course, there are other beneficiaries. rate as the debate proceeds tonight. law dating back to the 1964 Federal Asian Americans and Hispanics are Now, I believe I have a chart here, Civil Rights Act. also given affirmative action.’’ Then he and maybe we will get it up with the My amendment does not, as I said goes on to say, and I wonder if these help of one of the pages. I would like earlier, prevent schools from minority words strike my colleagues as discrimi- to, as this chart goes up, tell my col- recruitment outreach or scholarships, natory as they strike me, ‘‘But Asian leagues of some recent polling data and it does not, and I say this to my Americans scarcely need it.’’ He and that demonstrates, I think unequivo- Republican brethren, my more conserv- others contend that most Asian Ameri- cally, that Americans overwhelmingly ative colleagues, it does not increase cans, most young people of Asian an- the role of the U.S. Department of Edu- support legislation to make hiring, cestry come from affluent communities cation in admissions oversight. In fact, contracting, and college admissions and therefore have some sort of socio- it would stop the Department of Edu- race and gender neutral. economic advantage that most African cation’s Office of Civil Rights’ practice Here are the highlights of that poll- Americans do not have. ing data. Seven in 10 voters believe of telling public colleges and univer- Well, have my colleagues ever been sities to grant admission preferences that California’s Proposition 209 should to a Chinatown in a big city in Amer- even where courts have expressly ruled not be overturned. But more impor- ica? Would we consider that to be an against them, as in the case of the Uni- tantly, nearly 9 out of 10, 87.2 percent affluent community? Do we lump all versity of Texas Law School and the of Americans, said race should not be a Asian Americans together, including Hopwood case. factor in admission to a public college So I want to make clear that people Cambodians, Laotians, the Mung popu- or university. And that included more should not be dissuaded from doing lation, all the recent immigrants to than 3 out of 4, 75.7 percent, of African- what is right under the Constitution by America, many of whom have struggled American voters who were surveyed erroneous arguments that opponents to to obtain American citizenship, of and who said that race should not be a my amendment may make during the Asian American ancestry? factor in admission to a public college debate a bit later. Those kinds of words are inherently or university. So I believe the time has As the author of California’s civil discriminatory. We cannot, we should come for this body to act. rights initiative, Proposition 209, Ward not allow a practice that pits one ra- I realize that there are a lot of people Connerly pointed out, who is an Afri- cial group against another. That is who wish that this debate would go can-American businessman who serves what has happened in California. That away or at least could be held for an- on the University of California’s Board is part of the genesis, if you will, for other date, preferably beyond this elec- of Regents, granting an individual pref- Proposition 209. Asian Americans were tion cycle. But as our friend, my friend erence based on their race or gender being excluded from consideration for and colleague, the gentleman from means another individual has been dis- admissions because the University of Oklahoma (Mr. J.C. WATTS), told me criminated against based on their race California was practicing a policy that the other day, there is never a wrong or gender. And that is as succinct and gave preference to other minority time to do the right thing. compelling an argument as I can make groups, namely African Americans and I want to make it very, very clear for my amendment this evening. Hispanic Americans. that I intended to offer this amend- Is that fair? Is it right? Will someone b ment last year to the annual spending 1915 come down to the well tonight and bill, the appropriations bill for the De- I think we all know that different argue that that practice should be con- partment of Education, but waited for groups suffer under affirmative action tinued? What would my colleagues say this debate and this day to offer this in admissions the way it operates in to those Asian American young people amendment so that it could be more America today. Minority group mem- and to those families in California that appropriately discussed in the context bers suffer because when they are ad- have been blatantly discriminated of reauthorizing the Federal/taxpayer- mitted under lower standards; they of- against as a result of these practices? funded higher education programs. tentimes perform less well. They need I also want to point out that colleges I do not want my colleagues to be remedial help. They are at risk of drop- and universities are lessened by the hy- misled about my amendment. I have ping out. Many of them do not com- pocrisy of ostensibly being in favor of made modifications to this amendment plete a 4-year college education and ob- equal opportunity, but actually prac- to make it more acceptable to more tain a college degree. And unfortu- ticing discriminatory policies. And, Members of this body. First of all, with nately, other people on that campus colleagues, it is going on all over the some reservation, I excluded private and in the college community all too country. colleges and universities, even though often make that link between subpar Here is an article from USA Today almost all private colleges and univer- performance and someone’s skin color. dated November 28, 1997. It says how H2894 CONGRESSIONAL RECORD — HOUSE May 6, 1998 Michigan admittance standards dif- the quality of primary and secondary us towards the realization of Dr. King’s fered. education in America. That is where vision. Because I believe institutional- Now, there is a chart here. My col- affirmative action begins, not in higher ized discrimination is inherently un- leagues have to understand the back- education. It starts in ensuring that fair, it is undemocratic, and I think ul- ground of this chart. This chart came every child in every elementary school timately it is anti-American. to light through a Freedom of Informa- around the country has the oppor- With all due respect to the gen- tion request filed by philosophy profes- tunity to receive a first-class, a world- tleman from Georgia (Mr. LEWIS), who sor Dr. Carl Cohen, who is a former, class education. That is the very point obviously knew Dr. King well and and I quote from the article, former that the gentleman from Pennsylvania worked with him, I would like to be- board member of the ACLU, American (Mr. GOODLING) has made in supporting lieve that Dr. King would agree that as Civil Liberties Union, and the author my amendment. we approach the dawn of a new millen- of a 1995 book called ‘‘Naked Racial I want to quote from the statement nium, now is the time to try to move Preferences: The Case Against Affirma- that he sent out. He said that he sup- our country in the direction of a post- tive Action.’’ ports my amendment and said, ‘‘The affirmative action era where we really Here is the chart, and this is the continued use of preferences in admis- can build, working as individuals and basis for current litigation filed by two sions does nothing but pit one minority human beings and as American citizens students against the university, two group against another, while building a and as children of God, a color-blind so- white students charging bias by the society of legal and ethnic divisions. It ciety. University of Michigan. I quote from is time to put a stop to this discrimina- Mr. Chairman, I reserve the balance the article with respect to this chart. tory practice.’’ of my time. I just want to tell the young lady He goes on to say that my amend- Mr. CLAY. Mr. Chairman, I yield my- here, the page, that she will not find ment embodies the idea of a color-blind self such time as I may consume. First of all, Mr. Chairman, I would that chart in the charts we prepared. society. Well, I am not the one that ad- like to correct the RECORD. The pre- But I will make it available and I will vanced the idea of a color-blind soci- vious speaker referred to the TRIO pro- make sure it is inserted later, when we ety. In modern times, that vision is the gram as a minority outreach program, rise from the Committee of the Whole vision of Dr. Martin Luther King, Jr. I but it is not. It is a disadvantaged out- and go back into the House, into the think everybody knows that. He was reach program, and the majority of RECORD. the one that talked about a day when But I quote from the article. At the students enrolled in TRIO are white. someone would be judged by the con- Mr. Chairman, I rise in opposition to heart of the lawsuit filed by these stu- tent of their character, not the color of the amendment being offered by the dents is what opponents of affirmative their skin. gentleman from California (Mr. RIGGS). action call ‘‘the smoking gun.’’ A But the chairman and I have, and I His attempt to ban the use of affirma- chart, this chart, my colleagues, right hope most Members of this body on a tive action efforts by colleges and uni- here, and would I love to share this bipartisan basis, can agree that the versities is nothing more than a with my colleagues if they would like best way to help women and minorities scheme to return the system of higher to come up and take a closer look, a succeed in college and later in the education to the bad old days of racial chart that, according to the USA workplace is by giving them a sound segregation. If we follow that direc- Today article is used by the univer- education at the primary and second- tion, our schools will again become a sity’s admissions office to decide who ary level. Quality education is the key, bastion of white, male, good old boys. gets in and who does not. This chart not some system as has evolved at too In addition, this amendment com- clearly, indisputably demonstrates many public colleges and universities pletely shatters the bipartisan nature that whites and minorities with iden- around the country of contrived admis- of H.R. 6, which has been successfully tical grades and test scores meet dif- sion preferences or quotas for particu- developed by the members of the Com- ferent fates. The white applicants are lar groups. mittee on Education and the Work- rejected or deferred while minorities Mr. LEWIS of Georgia. Mr. Chair- force. It is a cruel hoax, Mr. Chairman, are automatically admitted. That is man, will the gentleman yield? to declare that we live in a color-blind what this chart shows. Mr. RIGGS. I yield to the gentleman society in which only merit counts. And as Dr. Cohen points out, the from Georgia. Merit is only one criterion for college point I just tried to make a moment Mr. LEWIS of Georgia. Mr. Chair- admissions. ago, and he can make it better, I quote man, I say to my colleague, the gen- Children of alumni have always re- Dr. Cohen. ‘‘I want the university,’’ re- tleman from California (Mr. RIGGS), I ceived special treatment. Children of ferring to the University of Michigan, knew Martin Luther King, Jr., very wealthy donors have always been ‘‘to be a place, to live up to its ideals, well. I worked with him for many shown preferential treatment. Athletic not betray them to accomplish a short- years. He was my friend, my leader, my ability and musical talents have al- range objective. Constitutions are de- hero, my brother. If he was standing ways been major considerations when signed to prevent taking shortcuts.’’ here tonight, I tell my colleagues, he deciding whom to admit to colleges And lastly, the community as a would say he believes in a color-blind and universities. Colleges routinely whole suffers under affirmative action society, but he would tell us that we seek to have classes which reflect geo- the way it now operates because the are not there yet, and he would not be graphical differences and other kinds different or disparate treatment of ra- supporting the Riggs amendment. of diversity in the belief that diversity cial groups breeds mistrust. The time So I think that it is not right to use is good educationally. has come to put an end to affirmative Martin Luther King in this manner. Affirmative action was not designed action. And while I say that as it is Mr. RIGGS. Mr. Chairman, reclaim- to deny rights unjustly to those quali- being practiced in college admission ing my time, I respect the opinion of fied, but to provide remedies for those policies, I hasten to add that I have the gentleman from Georgia. qualified who are unjustly denied. For worked long and hard to try and create Mr. Chairman, I will continue for this Congress to now prohibit efforts more opportunity, better opportunity, just a moment to say that Martin Lu- by university leaders to correct cen- I hope some day equal opportunity for ther King, I think we can agree on this, turies of inequitable admission prac- every American. he dreamed of the day, he spoke of the tices is an arrogant abuse of Federal And as the gentleman from Okla- day, he preached of the day when all power. It has taken the Nation’s col- homa (Mr. WATTS) said to me, if we Americans would participate freely in leges nearly 3 decades to develop and want affirmative action in American the American dream. implement admission policies which society, and I know he signed on to a I cannot see how continuing institu- have begun to close the educational Dear Colleague with our good friend, tionalized discrimination, or if we want gap existing between minorities, the gentleman from Georgia (Mr. to go one step further, institutional- women, and their white male counter- LEWIS), but as my colleague told me ized racism, and I do not use that word parts. the other day, if we want affirmative lightly because I know it is an explo- Mr. Chairman, this amendment is action, we have to start by approving sive word, I cannot see how that moves identical to Proposition 209, passed by May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2895 California voters, and its effects on mi- cannot let affirmative action be de- been enacted in Texas and California. nority admission to institutions of stroyed. People have gone to jail. Peo- After the adoption of those policies, higher learning will be just as dev- ple have been beaten. People have lost educational opportunities for minori- astating. Admissions of African Amer- their lives. Now we must fight one ties plummeted to their lowest levels ican, Latino, and American Indian stu- more time against those who wave the since the 1960s and in some schools dents for next fall’s classes have banner of fairness but really want to those opportunities disappeared alto- plunged by more than half at the Uni- slam the door of opportunity in the gether. You cannot change the known versity of California at Berkeley; and face of young people across our Nation. impact of this amendment by using admissions of minorities to the Univer- Mr. Chairman, I urge our colleagues glorious rhetoric or a misleading title sity of California’s three law schools to stand up for diversity, hope and op- or results of a slanted poll. We know have dropped 71 percent for blacks and portunity by defeating this amend- what this amendment will do. 35 percent for Latinos. ment. Mr. Chairman, the admissions poli- Mr. CLAY. Mr. Chairman, I yield 2 Mr. Chairman, there is no validity to cies have never been totally fair. Those minutes to the gentleman from New the argument that enrollment declines who are children of alumni get pref- are indicative of previously ineligible Jersey (Mr. ANDREWS). (Mr. ANDREWS asked and was given erences, children of large contributors students being admitted to these insti- get preferences, those who can afford tutions of higher learning. The fact is permission to revise and extend his re- to pay tuition without a scholarship that over 800 minority students with marks.) get preferences, those who can perform grade point averages of 4.0 and SAT Mr. ANDREWS. I thank the gen- well on a culturally biased test get scores of over 1,200 were denied admis- tleman for yielding me this time. Mr. preferences. sion to the University of California at Chairman, I urge my colleagues to de- Berkeley. feat the Riggs amendment. Mr. Chairman, affirmative action The simple fact is that some believe I want to talk for a moment about serves as a counterbalance to those dis- women, blacks, and Latinos should not some truths and some myths, because advantages that minorities suffer. be afforded a higher education. The here is the truth. When the door of op- Without affirmative action we will re- Riggs amendment would embody that portunity is opened to students who turn to the unlevel playing field and belief in Federal law. It was bad policy are called special admits or affirmative turn the clock back to the 1960s. during the awful period of Jim Crow action, they perform equally well to Mr. Chairman, the Supreme Court laws in America, and it is bad policy the other students. They perform has limited the use of affirmative ac- now. equally well. The Chronicle of Higher tion to policies which are narrowly tai- Mr. Chairman, measured by any Education recently published a study lored to address the compelling State benchmark, access to equal edu- which compared the graduation rates interest. So as the need for affirmative cational opportunity remains a distant of special admit medical students with action drops, so will the practice of af- dream for racial minorities. I strongly non-special admit medical students. firmative action. urge a ‘‘no’’ vote on the Riggs Ninety-eight percent of the non-special admit students graduated. Ninety-four This amendment, however, will pro- antiaffirmative action amendment. hibit the use of affirmative action even Mr. Chairman, I reserve the balance percent of the special admit students graduated, an insignificant statistical in cases where there is a need to rem- of my time. edy proven cases of racial discrimina- Mr. CLAY. Mr. Chairman, I yield 2 difference. Once you open the door, ev- tion. Mr. Chairman, you can quote minutes to the gentleman from Geor- eryone who is willing and able can Martin Luther King, you can talk gia (Mr. LEWIS). walk through it equally. Mr. LEWIS of Georgia. Mr. Chair- This amendment slams the door. Let about dreams, but we know what this man, I did not go to Harvard. I did not us talk about the myth of merit. Let us amendment will do. Minority opportu- attend Yale. I could not. I could not perfect this amendment to make sure nities will plummet if this amendment even attend Troy State University, it does not perpetuate that myth. Let is adopted. That is why those of us who just a few miles from my home, be- us have merit. Let us have a Federal celebrate diversity in America are op- cause of the color of my skin. law that says if your mother or father posing this amendment. For 200 years, millions of African- is on the board of trustees of the uni- Mr. CLAY. Mr. Chairman, I yield 2 Americans could not go to college. The versity, you do not get special treat- minutes to the gentleman from North doors of higher education, of oppor- ment. Let us have merit. Let us say if Carolina (Mr. PRICE). tunity, were shut simply because of the your aunt or your uncle or your grand- Mr. PRICE of North Carolina. Mr. color of our skin. parents gave a lot of money to the Chairman, I rise in opposition to the school, you do not deserve special ad- b 1930 Riggs amendment. This amendment mission. Let us have merit. Let us say would involve an unprecedented Fed- Today African-Americans and other if you are the son or daughter of the eral intrusion into the admissions minorities are attending Troy State, member of the State legislature or the practices of colleges and universities. Harvard, Yale, and nearly every insti- mayor or a Member of the United It would require an extensive appara- tution of higher learning because of States Congress, you do not deserve tus to monitor admissions policies na- merit and because of affirmative ac- special admission. Let us have merit. tionally. This seems monumentally un- tion. Affirmative action opens the door Let us say that if you are not someone wise. for those who grew up with less hope from a special geographic region of the Twenty years ago, the Bakke deci- and less opportunity, because of the country or state of the world you do sion developed a careful and delicate color of their skin, because their par- not deserve special treatment. Let us balance for college admissions. Quotas ents did not go to college, because have merit. Let us say that if you are were declared unconstitutional, as they their family has yet to overcome 200 not someone from a different ethnic should be. Gender and race can never years of government-sanctioned dis- group that is not fully represented, you be the sole or decisive factor in the ad- crimination. do not deserve special admission or missions process. This made sense then Opponents of affirmative action say special treatment. and it makes sense now. But colleges they want a colorblind society, but Merit is a concept that lives only in and universities should be able to reach ending affirmative action is not color- mythology. It does not live in the ad- out to widen their pool of applicants, blind. It is blind to centuries of dis- missions offices. This amendment to bring previously deprived or crimination, blind to the racism that is should be defeated for that reason. still deeply embedded in our society, Mr. CLAY. Mr. Chairman, I yield 2 disenfranchised people into higher edu- blind to the barriers that continue to minutes to the gentleman from Vir- cation without fear of legal retribu- confront generation upon generation of ginia (Mr. SCOTT). tion. African-American and other minori- Mr. SCOTT. I thank the gentleman I know how this works from my years ties. for yielding me this time. of experience as an admissions officer Mr. Chairman, we have fought too Mr. Chairman, legislative language in a graduate department of a large long and too hard and come too far. We similar to the proposed amendment has university. Affirmative action offers a H2896 CONGRESSIONAL RECORD — HOUSE May 6, 1998 way of taking into account the back- my colleagues. Women earn 71 cents for of equal opportunity, diversity and a ``color- grounds from which students come, as- every dollar compared to a man. Mr. blind'' society are laudable and supported by sessing their true potential, and open- Chairman, I ask my colleagues to the vast majority of thinking Americans. ing the doors of opportunity. For the please not vote to roll back affirmative However, over the course of my career, I Federal Government to interject itself action. have watched the implementation of affirma- into these decisions, to reduce flexibil- Mr. RIGGS. Mr. Chairman, I yield tive action amount to the use of discriminatory ity, to force the use of overly narrow or such time as she may consume to the quotas, set asides, preferences and timetables rigid criteria, would be most unwise. gentlewoman from New Jersey (Mrs. based on sex and race. This is evidence of Affirmative action, Mr. Chairman, is ROUKEMA). the ``law of unintended consequences.'' about fairness and equal opportunity (Mrs. ROUKEMA asked and was We should be reforming comprehensively for individuals. But it is also about given permission to revise and extend affirmative action. But we have not been able community: about the academic com- her remarks.) to do that. munity itself, diversifying that com- Mrs. ROUKEMA. Mr. Chairman, I If we have to, we will do this one bill at a munity to make education a broaden- rise in strong support of this amend- time, one amendment at a time. ing and enriching experience. And it is ment. This is not repealing affirmative Race and sex should not matter in college about serving the wider community, action. It is reforming it and making a admission, but higher education institutions recruiting a student body that reflects giant step forward while preserving all make it matter by counting, labeling and, ulti- the society being served, and training civil rights requirements. mately, dividing Americans. doctors and lawyers and teachers and Mr. Chairman, I rise in support of this Today's affirmative action is flatly inconsist- business people and others to serve all amendment to the Higher Education Act. This ent with our national commitment to the prin- elements of that community. amendment eliminates arbitrary quotas and ciple of nondiscrimination. Our founding prin- The Riggs amendment ignores this set asides and erases the reverse discrimina- ciples, and I might add, our current laws, re- experience and threatens these values. tion that has grown over the years. quire that the government treat all of its citi- For those reasons, it ought to be re- This amendment reaffirms our encourage- zens equally and without regard to race and jected. ment of affirmative action through expansion sex. Mr. CLAY. Mr. Chairman, I yield 2 of the applicant pool and active recruitment of I know that discrimination exists in today's minutes to the gentlewoman from Cali- qualified women and minorities. At the same America. There's no denying it. But we cannot fornia (Ms. WOOLSEY). time this amendment makes it clear that such attack discrimination with a different style of (Ms. WOOLSEY asked and was given encouragement and recruitment does not in- discrimination. Discrimination in the name of permission to revise and extend her re- volve granting a preference, or fulfilling a equal treatment is a modern-day oxymoron. marks.) quota. Mr. Chairman, affirmative action did its job Ms. WOOLSEY. Mr. Chairman, we This amendment has been changed from its in its day. have worked hard in this country to initial form, in such a way that positively reaf- But the day it became more quotas than op- create the best colleges and univer- firms our nation's commitment to affirmative portunity is the day it became part of the prob- sities in the world. I have actually de- action's goals and ideals. lem and not part of the solution. voted much of my time in Congress to In other words we are reforming affirmative Equal opportunity has always been at the expanding access to higher education action as we know it, while protecting civil core of the American spirit. It's time we return for every student in America. In fact, rights for all people. it to the core of federal law and practice. With the understanding of the recent court is that not what this higher education CURRENT ADMISSIONS bill is supposed to be about, expanding costs as Rep. CANADY has annotatedÐthe We all know, admissions to colleges now in- education to every student in America? handwriting is on the wall. Tonight let us take volve preferences and quotas. I rise in strong opposition to the this major step toward reform while maintain- amendment offered by the gentleman REVERSE DISCRIMINATION ing affirmative action. from California (Mr. RIGGS). Quite sim- This amendment reafffirms the original con- I urge your support of this amendment. ply, this amendment, which was mod- cept of affirmative action through vigorous and Mr. RIGGS. Mr. Chairman, I yield eled after California’s Proposition 209, systematic outreach, recruitment and market- myself 3 minutes to respond to the last blocks opportunity to higher education ing efforts among qualified women and minori- speaker on the other side, my friend for women and minority students ties. and northern California colleague who across the country. It is not a mystery This amendment seeks to restore the color- represents an adjacent district to me. that dismantling affirmative action de- blind principle to federal law by higher edu- She spoke a moment ago about the stroys needed opportunity for Ameri- cation institutions from granting any pref- University of California’s law school. I ca’s college campuses. erence to any person based in whole or in would like to refer her to an article in Look at my own State and the State part on race, color, national origin, or sex. today’s newspaper that is very timely of Mr. RIGGS, California, where the When affirmative action and nondiscrimina- to this evening’s debate headlined rollback has already begun. The Uni- tion were first enacted, through Kennedy's ex- Boalt Minority Admissions Up 30 Per- versity of California Boalt Law School, ecutive order in 1963 (establishing the Presi- cent. I quote from the first paragraph one of the best public law schools in dent's Committee on Equal Employment Op- of the article: ‘‘In the school’s second America, enrolled only one African- portunity) and through the Civil Rights Act of year of colorblind admissions, offers to American student in its freshman class 1964, the goals were: promotion and assur- black and Hispanic students are up 30 last fall. Also at UC-Berkeley African- ance of equal opportunity without regard to percent, Boalt Hall School of Law an- American admissions have plummeted race, creed, color or national origin; encour- nounced on Tuesday.’’ It goes on to by 66 percent. Latino enrollment fell agement of positive measures towards equal quote the dean of Boalt Hall as saying, by 53 percent. At UCLA, African-Amer- opportunity for all qualified people, and expan- ‘‘I think the increase had to do with ican admissions in the freshman class sion and strengthening of efforts to promote the efforts made at outreach that we dropped by 43 percent while Latino en- full equality of employment opportunity. were very welcoming of minority appli- rollment fell by 33 percent. At Califor- MAINTAINS CURRENT ANTIDISCRIMINATION LAWS cants.’’ nia graduate schools, where the clock Before opponents of this amendment raise Furthermore, I want to put to rest has already begun ticking and been their voices, let me also add that this legisla- this misinformation regarding the Uni- turned back, both medical schools and tion absolutely maintains this nation's existing versity of California system. First of law schools experienced a significant antidiscrimination laws. If it did not, I would not all, I will go ahead and quote from decline. This is what I call stepping be here. John Leo’s column in U.S. News and backward in our goal, our goal to make This amendment maintains existing Civil World Report of April 27. He says, higher education accessible to all Rights Laws, which are there to remedy indi- ‘‘There is no white-out, closing of Americans. viduals who are victims of discrimination. doors, or Caucasian University. In the Mr. Chairman, women and minorities Further, it is consistent with Civil Rights eight-college University of California in America simply cannot afford to Laws by prohibiting discrimination. system, only two of five students are have this crucial support chipped away. Over the course of time, I have been a white. At the University of California Let me review a few simple facts with strong supporter of affirmative action. Its goals at Berkeley, the figure is one in three.’’ May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2897 Then he goes on to quote in the article Any rule excluding a person on ac- not be reduced to the status of mere the provost of the University of Cali- count of his color is a indignity, an in- representatives of various racial fornia, Judson King, who says, and I sult, and a wrong. groups. Schools that employ racial quote right from the article, ‘‘In fact, Senator Sumner was right. It is classifications and preferences tell stu- the drive to raise minority numbers at wrong to classify individuals on the dents in the preferred groups that they the top two colleges in the system, basis of race. If our history as Ameri- will be judged by a lower standard and Berkeley and the University of Califor- cans teaches us anything, it should will not be expected to meet the same nia at Los Angeles, UCLA, had the ef- teach us that any such practice is in- standard that other students must fect of creating racial imbalances at herently pernicious. It is a violation of meet. That sends a message that is cor- the other six. Judson King, provost of our fundamental principle as Ameri- rosive of the respect owed to all stu- the University of California, acknowl- cans to classify students by race; then dents. It is a message that increases di- edged this by saying that the end of to tell some students that they will be visions and causes untold harm. It is a preferences was evening out diversity admitted to a school because they be- message that should not be supported across the entire University of Califor- long to a preferred group, and to tell by Federal tax dollars. nia system of all eight campuses.’’ other students that they will be denied Now the Members of this House Ms. WOOLSEY. Mr. Chairman, will admission because they belong to a should not be diverted from the truth the gentleman yield? nonpreferred group. Such a policy is by the barrage of attacks made against Mr. RIGGS. I yield to the gentle- discrimination, pure and simple, and it this amendment. There is nothing woman from California. is wrong. novel or radical about this amendment. Ms. WOOLSEY. Mr. Chairman, I It is wrong for many reasons. It is On the contrary, this amendment reaf- would just like to remind my colleague wrong because it imposes an unfair firms with respect to public univer- that what I referred to is one African- burden on innocent individuals on ac- sities and colleges the provisions of American enrolled in Boalt Law School count of their race. Students who have Title VI of the historic Civil Rights in the fall. One thing. There is a dif- worked diligently, including many stu- Act of 1964. That act provides in sec- ference between inviting admissions dents who have fought to overcome se- tion 601 as follows: and enrollment, because there are a lot rious social and economic disadvan- ‘‘No person in the United States of steps in between. Part of that step is tages, are denied admission to the shall, on the ground of race, color, or feeling welcome. school of their choice because other national origin, be excluded from par- Mr. RIGGS. Mr. Chairman, I have to less qualified students gained admis- ticipation in, be denied the benefits disagree with the gentlewoman. It sion based on a racial preference. Stu- of’’, and I think it is important for says, ‘‘The school admitted 32 African- dents are excluded not because of any Members to focus on this, ‘‘No person Americans for the fall of 1998, almost wrong they have done, but as a part of in the United States shall, on the twice as many as 1997, but less than an effort to redress historic wrongs. In half the number accepted in 1996, the ground of race, color, or national ori- the process, unfortunately, the fun- last class admitted under affirmative gin, be excluded from participation in, damental requirements of justice are action.’’ Looking at how the pendulum be denied the benefits of, or be sub- forgotten while the dreams and aspira- now swings back, ‘‘The number of jected to discrimination under any pro- Latino students held steady at 19, but tions of the innocent are trampled gram or activity receiving Federal fi- Chicano, or Mexican-American stu- underfoot. nancial assistance.’’ It is wrong because it sets students dents rose 34 percent, to 41.’’ It says, Now that is the right policy; it was up for failure. In the name of providing ‘‘In 1996, a total of 78 Latino and Chi- the right policy when the Congress opportunity, preferential admission cano students were admitted.’’ adopted it in 1964, and it is the policy So here is a university that is focus- policies produce disappointed hopes. that this House should support this ing on outreach, affirmative steps to Students who could have been success- evening. Unfortunately, those plain expand, as I said earlier, the pool of mi- ful in less competitive institutions are words of the 1964 Civil Rights Act have nority applicants. That is why we have put in programs for which they are not been ignored in a process of adminis- included language in our bill suggested prepared and in which they do not suc- trative change and in the courts. We by the gentleman from California (Mr. ceed. The evidence is clear. Dropout need to reaffirm that policy tonight COX) and the gentlewoman from New rates at competitive universities are in and get back to the fundamental prin- Jersey (Mrs. ROUKEMA) that very spe- many cases 200 to 300 percent higher ciple of nondiscrimination in this cifically spells out the recommended among students admitted from pre- country. steps, the affirmative steps that public ferred groups than among groups ad- Mr. CLAY. Mr. Chairman, I yield 2 colleges and universities can do to ex- mitted from nonpreferred groups. minutes to the gentleman from Califor- pand the pool of minority applicants. At the University of California at nia (Mr. BECERRA). We strongly encourage them to pursue Berkeley, for example, the undergradu- Mr. BECERRA. Mr. Chairman, how these outreach efforts as the Univer- ate dropout rate among one preferred sweet it would be if what my colleague, sity of California Law School at Boalt group has reached as high as 42 per- who just spoke, said were true; that we Hall is doing. cent. Thus the effort to provide assist- are a society based on equality of the ance to students through preferential laws and application of those laws. But b 1945 admissions policies often backfires and the reality is we are not yet there, and Mr. Chairman, I yield 4 minutes to harms the very students they were sup- if my colleagues do not believe it, just the gentleman from Florida (Mr. CAN- posed to benefit. talk to those FBI agents. ADY) the leader to end racial pref- The law of unintended consequences Not too long ago, African Americans erences and discrimination in Federal has rarely been illustrated more clear- who sat down at a fast food restaurant Government programs and policies. ly. It is wrong to utilize preferential to get some food never got served. Mr. CANADY of Florida. Mr. Chair- admissions policies because it rein- Or talk to the two young ladies in man, I appreciate the time to discuss forces prejudice and discrimination in California who went to an ice cream this important issue, and I am pleased our society. Whenever public institu- parlor not too long ago and asked for to rise in support of the amendment of- tions of higher education sort, divide, ice cream, and were asked for ID before fered by the gentleman from California and classify applicants for admission they would get any service whatsoever (Mr. RIGGS). This is an important into racial groups, they send a power- because they looked Hispanic. amendment, an amendment which ful and perverse message that we We are not there yet, and that is the deals with a fundamental question of should judge one another on the basis truth about it. It would be nice to base justice in our society. of race. something on merit, but numbers do In 1871, in the course of the debate Now that is exactly the wrong mes- not give merit. And if my colleagues over a civil rights bill designed to out- sage for us to send. Colleges and uni- have seen our public schools and they law segregation in public accommoda- versities should deal with students as see where most minorities and poor tions, Senator Charles Sumner said individuals on the basis of their indi- people are, they will understand why this: vidual qualifications. Students should we cannot just base things on merit, H2898 CONGRESSIONAL RECORD — HOUSE May 6, 1998 because someone can have a 4.0 in some this country has made more progress If there is a single Member of this of our inner-city schools and they can- than what it has actually experienced. House who believes that minorities liv- not compete with a 3.5 from some of The fact of the matter is that this ing in the third ward of inner-city the suburban schools. amendment is a bold, unadulterated at- Houston receive an equal education That is where we are today. But tempt to turn back the clock of in- with children of the privileged families worse than that, the amendment does equity before there has been ample op- of Highland Park in the Dallas area, not cure a real problem we have. My portunity and ample time to experi- then perhaps I could understand why wife happens to be a physician, a pro- ence the benefits of some modicum of some would vote to end affirmative ac- fessor of medicine at a university here, affirmative action. tion. and if she stays there long enough, our I heard the gentleman earlier speak Mr. Chairman, it is interesting to me three children, who are very young and talk about dreaming and men- that some of the same people who want right now, will have an opportunity to tioned Dr. King in his deliberations, to use tax dollars to subsidize elite pri- go to that university, even if there are and I thought to myself that if Dr. vate prep schools would also argue other children who grow up and get King had been dreaming about this against leveling the playing field of op- better grades and get better scores amendment, he would have awakened portunity for children attending low- than my children do. Because my wife quickly with a terrible nightmare. income public schools. Where is the happens to work at that university, she The fact of the matter is that amend- fairness in that? will get her kids in. Great for me and ments like this one provoked Langston Mr. Chairman, until the 1960s, many my wife because now she is a professor Hughes to ask the question: What hap- colleges and universities excluded mi- there. But my parents and her parents pens to a dream deferred? Does it dry norities for one reason and one reason were never professors. They were farm up like a raisin in the sun? Fester like alone: the color of their skin. Where is workers. My father was a laborer, my a sore and then run? the fairness in allowing those same col- mother was a clerk typist; they could We cannot allow the dreams to dry leges to give privileges of legacy to the not have said that. up, we cannot allow the clock to be white children and grandchildren of We do not have the justice in this turned back. We must defeat the Riggs those former white students, while leg- world that allows the children of every- amendment, and I urge all of my col- acy preferences simply do not exist for one else to have parents who will be leagues to vote against it. minorities? The doors were not open to professors who can get their children Mr. CLAY. Mr. Chairman, I yield my- them. into school. And as my father used to self 30 seconds just to correct the Mr. Chairman, when Republicans tell me when he was younger, that sign record. took charge of this House, they ap- pointed dozens and dozens of high outside that restaurant that would not Mr. RIGGS, the gentleman from Cali- let me come in with the dogs, because fornia, stated that it was a great in- school interns from all over America. it said ‘‘No Mexicans or dogs allowed,’’ crease at 30 percent of blacks and His- And know what? Not a single one, not and, by the way, my father was born an panics at Boalt Law. Let me explain to a single one was African American. American citizen, are not there any- my colleagues what that increase was. And if that is the future vision of equal more, but they still affect us all. In the It was an increase of 14 students, black opportunity under Republican leader- same way that he could not walk into and Hispanics, from 37 to 51, out of a ship, then I want no part of it. And finally, it is interesting to me a restaurant not long ago, we cannot total of 857 students that Boalt admit- that some of the very people support- still walk into some of those univer- ted. ing the Riggs amendment, the same sities. Mr. Chairman, I yield 3 minutes to people who have voted to cut spending Defeat this amendment. the gentleman from Texas (Mr. ED- month after month for the enforcement Mr. CLAY. Mr. Chairman, I yield 1 WARDS). minute to the gentlewoman from Or- Mr. EDWARDS. Mr. Chairman, if of laws in America against discrimina- tion; where is the fairness in that? egon (Ms. FURSE). there is a single Member of this House Rather than quoting Dr. Martin Lu- Ms. FURSE. Mr. Chairman, I thank that believes that racial discrimina- ther King today, I wish some of the the gentleman for yielding this time to tion is nonexistent in America today, proponents of the Riggs amendment me. then I will vote for the Riggs amend- Let us not stoop to nonsense in this, ment. would fight every day for the ideal of the people’s House. Affirmative action That is what I thought. equal opportunity for which Dr. King was put in place to right historical Mr. Chairman, I hope and pray that I lived and died. Vote no on the Riggs amendment. will live long enough to see racial dis- wrongs, wrongs of sexism and racism. Mr. RIGGS. Mr. Chairman I yield This amendment turns the clock back crimination ended in this country. Un- myself 11⁄2 minutes to respond to the fortunately, I doubt that I will live 30 years. Women and minorities were last speaker. not underrepresented in colleges be- that long, and certainly that day has The gentleman should not be throw- cause we were stupid. We knew that we not yet arrived. Until that day has ar- ing stones in his glass house. If we are were underrepresented because of rived, affirmative action is a necessary going to examine our own internal sexism and racism. And today we are limited means of using, of ensuring practices in the United States House of not stupid. We know what this amend- that equal opportunity is more than a Representatives, perhaps we could look ment does. It turns the clock back; hollow phrase in a high school civics at 40 years of control by the Demo- back to a day that we should all have textbook. cratic Party of this institution; how been quite ashamed of. The fact is, the Supreme Court has many female Members of Congress cur- We understand this issue; women and limited affirmative action to be a tool rently hold places in the Democratic minorities, we know. We know why to ensure equal opportunity where dis- Party leadership in the House of Rep- this amendment was put in place, and crimination has been proven. That is a resentatives, versus the example that I urge my colleagues to vote no on this vital tool in today’s society where the we have tried to set for America by ad- amendment. problem is hardly that we have too vancing female Members in our ranks. Mr. CLAY. Mr. Chairman, I yield 2 many minorities in our public and pri- But I want to specifically go to the minutes to the gentleman from Illinois vate universities and colleges of Amer- comment of the gentleman from Texas (Mr. DAVIS). ica. (Mr. EDWARDS). He said if one person, (Mr. DAVIS of Illinois asked and was Under the Riggs amendment, if Mark one person could convince him that af- given permission to revise and extend Furman had been an admissions direc- firmative action, racial preferences in his remarks.) tor at a major public university, the colleges admissions is wrong, that he Mr. DAVIS of Illinois. Mr. Chairman, wrongs of discrimination could not be might reconsider and vote for my I rise in opposition to the Riggs amend- righted by affirmative action. amendment. ment which attempts to deny the exist- In the name of ending affirmative ac- ence of racial and gender history in tion, the Riggs amendment would in- b 2000 this country. It overlooks the reality stitutionalize discrimination; and that, Well, let me suggest to the gen- of discrimination and pretends that Mr. Chairman, is wrong. tleman from Texas (Mr. EDWARDS) that May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2899 that one person is none other than the Could the gentleman confirm that for Why? Because they want to propa- Attorney General of the State of me? gate to the American public that some- Texas, the top Democrat. Mr. GOODLING. Mr. Chairman, if the how we have reached a level playing Mr. EDWARDS. Mr. Chairman, would gentleman will yield, my good friend field and that discrimination does not the gentleman yield since he is quoting from Arizona (Mr. HAYWORTH) is cor- exist. On its face, that is ridiculous, me? rect. The deference to Native American but tonight I would like to look at this Mr. RIGGS. Mr. Chairman, I am not sovereignty in the Riggs amendment so-called level playing field. going to yield. was modified to alleviate concerns that I think what we find is that, in fact, The State’s top Hispanic elected offi- Members had raised about tribal col- it is not level. According to EEO, there cial. Now, what did the United States leges and how the amendment would have been 80,000 discrimination com- 5th Circuit Court of Appeals decide in have affected Native American stu- plaints filed over the last 2 years. Ac- the Hopwood case? Hopwood v. The dents seeking admission to those col- cording to crime statistics, over 10,000 University of Texas, I quote: ‘‘The 5th leges. This applies as well to facilities hate crimes were committed, including circuit ruled that diversity does not operated by the Bureau of Indian Af- 12 murders of members of minority justify preferential admissions based fairs for Native Americans. groups. The report of the Glass Ceiling on race.’’ Mr. HAYWORTH. Mr. Chairman, re- Commission says that women occupy Mr. EDWARDS. Mr. Chairman, will claiming my time, I thank the gen- only 3 to 5 percent of senior executive the gentleman yield? tleman for his help in making this im- positions, and in Federal procurement, Mr. RIGGS. The ruling effectively portant change. I know the gentleman where hundreds of billions of dollars ended racial preferences in admissions realizes how important our constitu- are spent, minorities and women get to the University of Texas. tional and treaty obligations are to Na- only about 5 to 7 percent. So, what do university leaders do tive Americans, and I believe with the Clearly, the playing field is not level. now, according to two articles, the San changes that have been made, this That is why we need affirmative ac- Antonio Express News and another amendment now protects the unique tion; that is why it is worth it to ad- Texas newspaper furnished to me by nature of tribal colleges, a unique na- dress the problems of discrimination our colleague, the gentleman from ture reaffirmed in Article I, Section 8 that exist today. Texas (Mr. LAMAR SMITH). I quote from of our Constitution and in subsequent Before I conclude, let me say this. I the San Antonio newspaper: treaties. am tired of the patronizing by these Attorney General Dan Morales spurned a Accordingly, I urge adoption of this folks who come up and say that this plea Tuesday of last week by State univer- amendment. will allow unqualified people to gain Mr. CLAY. Mr. Chairman, I yield 1 sity leaders to fight to restore affirmative admission to higher education. The minute to the gentleman from Texas action. Morales said that he denied the re- fact of the matter is, even with affirm- quest by the University of Texas leaders on (Mr. EDWARDS). legal and policy grounds. Mr. EDWARDS. Mr. Chairman, I ative action, the criteria for gradua- tion remains unchanged. So anyone Now I quote to the gentleman from would like to make three points in re- that comes in under a program such as Texas (Mr. EDWARDS): sponse to the gentleman’s comments. Racial quotas, set-asides and preferences First, he misquoted my statement on this would not be unqualified or would do not, in my judgment, represent the values the floor. Secondly, what has happened not be compromising the quality of and principles which Texas should embrace. I in Texas with the ending of affirmative their education. strongly believe that decisions based upon action is a perfect example of why we I hope we address the reality of to- individual merit and qualification are far should oppose the Riggs amendment. day’s world, and that is that affirma- preferable to decisions based on race or eth- Thirdly, if the gentleman wants to tive action is needed because discrimi- nicity. quote minorities on affirmative action, nation continues to exist. Mr. Chairman, I yield to the gen- I would point out for the RECORD that Mr. CLAY. Mr. Chairman, I yield 30 tleman from Arizona (Mr. HAYWORTH) the only African-American Member of seconds to the gentleman from New for the purposes of engaging in a col- the House, who is also a Republican, Jersey (Mr. ANDREWS). loquy. happens to be opposing the Riggs Mr. ANDREWS. Mr. Chairman, I Mr. EDWARDS. Mr. Chairman, will amendment. thank the gentleman. the gentleman yield? Since the gen- Mr. CLAY. Mr. Chairman, I yield 2 I would like to just clarify that we tleman used my name and misquoted minutes to the gentleman from Mary- are exempting Native American col- me, will the gentleman yield? land (Mr. WYNN). leges out of a unanimous consent re- Mr. HAYWORTH. Regular order, Mr. Mr. WYNN. Mr. Chairman, I thank quest to modify the amendment to also Chairman. the gentleman from Missouri (Mr. exempt historically black colleges and The CHAIRMAN. Regular order has CLAY) for yielding me this time. universities and Hispanic institutions. been called for. I rise today in strong opposition to I ask unanimous consent to do so. The gentleman who has the floor has the Riggs amendment. It is an extreme The CHAIRMAN. The Chair would yielded time to the gentleman from Ar- measure designed to deny access to entertain such requests only from the izona (Mr. HAYWORTH). higher education to members of minor- sponsor of the amendment. Mr. RIGGS. Mr. Chairman, I yield ity groups and women. Mr. ANDREWS. Mr. Chairman, I ask such time as he may consume to the The fact of the matter is that edu- unanimous consent to ask the sponsor gentleman from Arizona (Mr. cation is fundamental to social ad- of the amendment to offer this modi- HAYWORTH) for the purposes of engag- vancement in our society. The dif- fication. ing in a colloquy with the chairman of ference in income is tremendous. Those The CHAIRMAN. Who yields time? the full committee, the gentleman with higher education, men make Mr. RIGGS. Mr. Chairman, I yield from Pennsylvania (Mr. GOODLING). $16,000 on average more than men with- myself 40 seconds to respond to several Mr. HAYWORTH. Mr. Chairman, I out higher education. For women, it is of the previous speakers on the other thank the Chairman of the Committee almost double when we compare side. of the Whole House, and I thank the women with a college education to I just want to say again, from my gentleman from California (Mr. RIGGS), those without. heart, I believe affirmative action is my friend and the chairman of the sub- Affirmative action has served over outdated. Affirmative action, contrary committee; and I am pleased to join the last 20 years to create opportunity to what several speakers have sug- my friend, the chairman of the full for large numbers of African Ameri- gested, is no longer a black and white committee, the gentleman from Penn- cans, Latinos, Asians and women, to issue, certainly not in California, the sylvania (Mr. GOODLING) to discuss how gain access to higher education, and in largest, most diverse State in our this amendment may have been modi- turn, to gain access to economic pros- Union. Because the cultural makeup of fied. perity. However, the proponents of this America is changing, the argument Mr. Chairman, it is my understand- amendment would deny that oppor- that affirmative action serves as some ing the Riggs amendment has been tunity to these folks in minority sort of reparation for past wrongs, as I modified to exempt tribal colleges. groups. think the gentleman from Maryland H2900 CONGRESSIONAL RECORD — HOUSE May 6, 1998

(Mr. WYNN) and others have suggested you can find anything in this legisla- puses. The number of Filipino admis- tonight, no longer stands. Indeed, tion that would require people to hire sions increased at three University of often, those most hurt by affirmative on the basis of percentages or quotas, I California campuses. The number of action are not white males, but rather will start eating the pages of the bill, Hispanic admissions increased at two Asian women. one after another.’’ Quotas, pref- University of California campuses. Mr. WYNN. Mr. Chairman, will the erences, set-asides, are the antithesis This shift of students among the gentleman yield? of what the 1964 Civil Rights Act is all campuses of the University of Califor- The gentleman referred to me by about and what affirmative action is nia is good news because graduation name. Mr. Chairman. Will the gen- all about. rates are expected to increase signifi- tleman yield? The use of racial preferences, more- cantly. When colleges accept students Mr. RIGGS. I do not yield, Mr. Chair- over, is today in America, and has been who are best prepared for the level of man, and I ask for regular order so for years, unconstitutional. The Su- academic intensity required at the in- that I might complete my comments. preme Court and the Federal courts of stitution, the probability that the stu- I was about to say, those most hurt appeal have struck them down in vir- dents will graduate increases exponen- by affirmative action, as has been the tually every contest, in contracting, in tially. In the University of California case in California, are not white males, voting rights, and most certainly in system, graduation rates are expected but rather Asian women. Again, I hear education. to increase by almost 20 percent for the comment made aloud over there, Recently three Federal courts of ap- blacks and Hispanics. UCLA Chancellor but I do not believe that is justice, and peal have struck down racial pref- Albert Carnesale stated in the Orange I do not believe that is the kind of soci- erences in education, including the 5th County Register that UCLA has admit- ety we want in this country. Circuit in Hopwood v. Texas, the 4th ted the academically strongest class in Mr. Chairman, I yield 61⁄2 minutes to Circuit in Podberesky v. Kirwan, and its history. Students in the UC system the gentleman from California (Mr. the 3d Circuit in Taxman v. are now being judged by their quali- COX), my friend and colleague. Piscataway. In fact, the Taxman case fications, by their own merits as indi- Mr. COX of California. Mr. Chairman, was appealed to the Supreme Court, viduals, not as members of a class. I would like to focus us, if I might, on which was so clearly prepared to strike Mr. Chairman, that is the purpose of the text of what is before us because, down these preferences nationwide that this amendment. Let us return to the frankly, I find it difficult to disagree supporters of the preferences and set- purpose of affirmative action. Let us with much of what has been said on the asides and quotas settled the case rath- redouble our efforts against discrimi- Democratic side. I, too, like my col- er than risk certain defeat. nation and let us vote indeed for this leagues on the Democratic side, sup- All of these decisions had one thing amendment. port affirmative action. I certainly in common: They all followed from the Mr. CLAY. Mr. Chairman, I yield 21⁄4 want to lead the fight, as we always argument that Thurgood Marshall minutes to the gentleman from Texas have here in the Congress, against dis- made to the Supreme Court when he (Mr. GREEN). crimination. argued Brown v. The Board of Edu- Mr. GREEN. Mr. Chairman, I had a A higher percentage of Republicans, cation for the NAACP in 1955. He said chance like my colleagues to read the in fact, than Democrats voted for the that ‘‘Distinctions by race are so evil,’’ amendment and I thank the gentleman historic 1964 Civil Rights Act, and for evil, ‘‘so arbitrary and so invidious, from Missouri (Mr. CLAY), my col- every landmark civil rights act this that a State bound to defend the equal league on the Committee on Economic Congress has passed. This is a biparti- protection of the laws must not invoke and Educational Opportunities, for san effort, and it always has been in them in any public sphere.’’ yielding me this time. our Congress. Now, many of my colleagues, many Mr. Chairman, I find it amazing that Let us take a look at the language people of goodwill, are troubled by ra- in the amendment that takes away the that is before us. Section A is titled cial preferences, set-asides, and gender ability to have fairness, we have on Prohibition. What is prohibited? ‘‘No preferences and set-asides. But they page 2 that the gentleman from Cali- public institution of higher education want to know, nonetheless, what would fornia quoted that it is the policy of shall, in connection with admission to be the practical effects of returning to the United States to do these things, such institution, discriminate against a policy of affirmative action, the most but without any teeth in the amend- or grant preferential treatment to, any aggressive possible outreach and re- ment we might as well just throw it all person or group, based in whole or in cruitment combined with merit-based away, and that is what should be done part, on the race, sex, color, ethnicity admissions decisions. Fortunately, we with this amendment. or national origin of such person or now have some answers to that ques- Mr. Chairman, as a Member of Con- group.’’ tion. gress, I believe it is my duty to make It also says this: ‘‘Affirmative action This amendment is very closely mod- sure that all Americans are served, and encouraged,’’ not abolished, not done eled on the California Civil Rights Act, I believe that education for everyone is away with, encouraged. ‘‘It is the pol- the California Civil Rights Initiative a key to our Nation’s continuing suc- icy of the United States,’’ reading from which, in 1996 was passed by a signifi- cess. That is why I rise in strong oppo- the language of the amendment, ‘‘1, to cant majority of voters in the most sition to the amendment offered by the expand the applicant pool for college populous State in our country; and gentleman from California (Mr. RIGGS). admissions; 2, to encourage college ap- CCRI, the California Civil Rights Ini- This amendment is an attack on the plications by women and minority stu- tiative, is helping to make admissions efforts to educate everyone in our Na- dents; 3, to recruit qualified women at the University of California, which tion. In my home State of Texas we and minorities into the applicant pool we have discussed here on the floor, have a very diverse population, a popu- for college admissions.’’ color blind. lation that is becoming more diverse If we can focus ourselves on what the with each generation. We cannot afford b amendment actually says and does, I 2015 to implement a law that makes educat- think we can quickly see that this vin- We have had some discussion and de- ing this diverse population more dif- dicates the very purpose of the Civil bate on the floor about what has hap- ficult. Rights Act of 1964, which its chief pened in the UC system in the wake of I heard tonight the quote from our Democratic sponsors were careful to the passage of CCRI. The number of Af- Attorney General, who is not running point out, never, ever, ever was meant rican-American admissions after the for reelection in our State of Texas, to require quotas. passage of CCRI increased 34 percent at saying that should not be done. We are The Democratic floor manager of the the University of California Riverside. not talking about reparations; we are Civil Rights Act of 1964 was the Sen- The number of Asian-American admis- talking about fairness. We are talking ator from Minnesota, Hubert Hum- sions increased at four University of about making sure that the America of phrey. He told a critic of the legisla- California campuses. The number of the future will have that opportunity tion, which as I said was supported by American Indian admissions increased for education no matter what color of more Republicans than Democrats, ‘‘If at two University of California cam- the skin. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2901 In Texas, we have witnessed a dra- ferences in test scores, grades, and pos- back. This America is not the America matic decline in the number of His- sibly connections. that they knew or their forefathers panic and black admissions to Texas As an educator, I believe this pro- knew. This is a different America. This higher education institutions after the posal is preposterous with the experi- is the America that is proud to have all Federal court ruling against affirma- ence our Nation has had, with the races, ethnicities and creeds and sexes tive action in the Hopwood case. We do marginalization of certain sectors of and everyone participate in this great not need to see a bleaching of Ameri- our society. It is important to distin- manner which we have here in this ca’s higher education institutions. I do guish between affirmative action and country. not need our college graduates to look past discrimination, a distinction So I want my colleagues to talk as like me. I want them to look like which supporters of this amendment much as they want to talk, speak in America. I do not want them to all be blur and avoid. Past discrimination rhetorical terms as much as they want white Anglo-Saxon protestants. I want made it impossible for otherwise quali- to speak, because it does them good. them to look like Americans. fied students to go to universities. Af- But I want to give my colleagues some We must advance educational oppor- firmative action gives qualified stu- reality, some reality therapy. And I tunity, not limit it. If the Riggs dents a chance to go to a university. will go back to the time when I was a amendment only had the second part, One says they could not go, no matter very, very young girl and I want my then maybe all of us could vote for it what their abilities were. Affirmative colleagues to put themselves in my because that is the policy of the United action says if they are qualified, we place. Then they will see why I know States: To educate everyone, no matter will give them a chance. It is as simple America will not be that America where they come from or what their as that. again. ethnicity. Mr. RIGGS. Mr. Chairman, may I in- Mr. Chairman, I wanted to go to col- The Riggs amendment would roll quire as to how much time is remain- lege. I could not go to the college of my back the progress we are making. Af- ing on both sides? hometown because I was black. I could firmative action needs to be amended The CHAIRMAN. The gentleman not go to high school because I was 1 but not ended. I remember hearing Dr. from California (Mr. RIGGS) has 24 ⁄4 black. I could not live where I wanted King in 1963 say he had a dream. That minutes remaining, and the gentleman to live because I was black. I could not 3 dream has not come true. That is why from Missouri (Mr. CLAY) has 30 ⁄4 min- go to any State university. By the stat- this amendment needs to be defeated. utes remaining. utes of the State of Florida, I was Mr. RIGGS. Mr. Chairman, I yield Mr. CLAY. Mr. Chairman, I yield 2 eliminated from higher education. such time as he may consume to the minutes to the gentleman from Guam But guess what? It did not stop me gentleman from Pennsylvania (Mr. (Mr. UNDERWOOD). and it is not going to stop any black GOODLING). Mr. UNDERWOOD. Mr. Chairman, I person. It is not going to stop any His- thank the gentleman for yielding. LIMITING DEBATE ON AMENDMENT NO. 79, AND panic person. What my colleagues are Mr. Speaker, I rise in strong opposi- ALL AMENDMENTS THERETO Mr. GOODLING. Mr. Chairman, I ask saying now, I would say what they are tion to the amendment proposed by the unanimous consent that all debate on doing is bringing up the insides of the gentleman from California (Mr. RIGGS) Amendment No. 79, if offered and all hatreds which their forefathers set to ban the use of affirmative action in amendments thereto, be limited to 30 there. But it is not going any place. colleges and universities. The purpose minutes, equally divided and con- There is no one in this House that is of affirmative action is to remedy past trolled by myself, or my designee, and going to allow this to happen, so they discrimination endured by many sec- the gentleman from Missouri (Mr. may as well fold up their papers, fold tors of our society. Gender, racial, and their little tents and go home because CLAY) or his designee. ethnic discrimination in education is The CHAIRMAN. Is there objection this is not going to pass. outlawed under the 1964 Civil Rights to the request of the gentleman from Mr. RIGGS. Mr. Chairman, I yield Act and the 1974 Education Amend- Pennsylvania? myself such time as I may consume. ments. There was no objection. Mr. Chairman, the first thing I want Affirmative action is necessary to en- Mr. CLAY. Mr. Chairman, I yield 2 to say is my daughter attends a public force these laws and to level the play- minutes to the gentlewoman from elementary school in Northern Vir- ing field for minorities. As an academic Florida (Mrs. MEEK). ginia where she is a minority. She is a administrator and former professor, I (Mrs. MEEK of Florida asked and was minority as an Anglo at that particu- know that colleges and universities are given permission to revise and extend lar school. in the business of education and con- her remarks.) Secondly, I want to say, as I tried to sequently in the business of creating Mrs. MEEK of Florida. Mr. Chair- stress earlier, that Anglos, Caucasian opportunities for our young adults. man, I thank the gentleman from Mis- Americans are in the minority at the Institutions of higher education di- souri (Mr. CLAY) for allowing me to University of California. Two out of versify their student populations speak on this subject. I did not come five students in the University of Cali- through affirmative action programs prepared to speak on this subject, but fornia system are white. That makes and, in fact, practice affirmative ac- my life is preparation for this subject. them minorities. At the University of tion for a number of purposes, includ- Mr. Chairman, I decided I would Berkeley the figure is one in three. ing geographical balance and promot- speak out in strong opposition to the Mr. Chairman, I can honestly say to ing international scholarship. Affirma- Riggs amendment, which is another my colleagues on the other side of the tive action gives students the oppor- verification of a dying system. The sys- aisle, particularly the gentlewoman tunity to join their peers in intellec- tem is in its death throes. I thought from Florida who just spoke, I really tual discussions, in informed and broad that once it was lethally killed, but do not believe I have a racist bone in debate, and these are the necessary in- now I see that there are many who be- my body. And when I hear people talk gredients for institutions of higher lieve that by turning the clock back, about turning the clock back, I wonder education to be fountains of knowl- that they may bring a change in Amer- if those who support race-based college edge. ica which they were unable to bring be- admissions or racial preferences in col- Higher education professionals un- fore. lege admissions, or really believe that derstand this and use affirmative ac- Mr. Chairman, I want to share some- that should be the primary if not sole tion to not only extend opportunities thing. My colleagues will not be able to factor considered in admissions, if they but to advance the institutions them- bring that change. They will not be realized that they are talking about selves. able to bring it by glibly reciting laws turning the clock back to before 1954 The Riggs amendment would effec- one by one. Many have quoted case and the Brown v. Board of Education tively stifle university actions to cre- law, Martin Luther King, Thurgood case, because that is exactly what they ate campus diversity. Passing the Marshall, and any number of people are advocating. Riggs amendment means that college and incidents have been quoted. Mr. Chairman, I yield 3 minutes to admissions would be based almost en- But, Mr. Chairman, my colleagues the gentleman from California (Mr. tirely on statistically insignificant dif- will be unable to turn this America CUNNINGHAM). H2902 CONGRESSIONAL RECORD — HOUSE May 6, 1998 Mr. CUNNINGHAM. Mr. Chairman, I Mr. MORAN of Virginia. Mr. Chair- Let me give the actual numbers that do not think there will be peace in the man, affirmative action is not a perfect we have not heard for the University of Middle East or Ireland or in Bosnia in policy. In an ideal world, we would not California. In 1997, out of 44,393 stu- my lifetime, and I do not believe that need affirmative action; we would not dents on nine campuses, guess how racism will be dead in the United even want it. We would admit every- many were African Americans? 1,509. States of America in my lifetime. I one, regardless of past practices of dis- There were 5,685 Latino students out of truly believe that. crimination, regardless of the need to these 44,393. In 1988, 1,243 are African- But I also believe that affirmative promote diversity in higher education, American, and 5,294 are Latino stu- action creates a lot of negatives and regardless of anything but merit. dents. This is with affirmative action, that it is detrimental just like I think We do not live in a perfect world. We nine campuses. bilingual education is detrimental. And live in a society and in an economy He gave some figures, and he told us I agree with the gentleman from Cali- that has been shaped by our history. about UC Riverside, but what he did fornia (Mr. RIGGS) that the best thing That history includes an economy that not tell us was this: that black under- we can offer to all children and to all was based upon slavery. It includes, at graduate admissions dropped 66 percent Americans is an equal opportunity, es- one time, a definition of African Amer- in UC Berkeley, 43 percent at UCLA, 46 pecially by focusing on kindergarten icans as being worth only a fraction of percent at UC San Diego, and 36 per- through 12th grade. the value of white Americans. It is a cent at UC Davis. These are the pres- A large portion of our Hispanic popu- history that includes an official policy tigious campuses. Latino undergradu- lation drops out of school. That is of school segregation. It includes a de- ate admissions dropped by 40 percent at wrong. And what chance do they have nial of voting rights, of Jim Crow laws. UC Berkeley, 33 percent at UCLA, 20 at the American dream? A large por- In my own State of Virginia, it is a percent at UC San Diego, and 31 per- tion of the African-Americans that at- history that includes, in our own time, cent at UC Davis. tend college are in remedial education, in our lifetimes, an official policy of The gentleman from California (Mr. so in both groups the best thing we can massive resistance to integrated class- RIGGS) and his supporters do is offer all children the best we can rooms. mischaracterized the admissions proc- in K through 12. But yet in this coun- The closest correlation with aca- ess and its reliance on race. Colleges try we do not do that good a job, even demic success of any student is the and universities have always looked at though we have good teachers and good educational experience of their par- a variety of factors, test scores, race, schools. My wife is one of those. I was ents. But what if parents and grand- out-of-classroom experience, percent- one of those. parents and great grandparents were age achievement, and life challenges to My dad, who died three years ago, he denied access to a decent education as determine who to admit to their insti- was a Democrat, and he said: the official policy of the government? tutions. Son, my ideal of the American dream is Our government denied African Amer- Mr. CLAY. Mr. Chairman, I yield 2 getting a good education and working hard. ican children access to a decent edu- minutes to the gentlewoman from Cali- cation. We cannot pretend that did not And if you have those tools, you can pursue fornia (Ms. LEE). happiness. It is not guaranteed. But if you happen. Ms. LEE. Mr. Chairman, I rise today pursue happiness and you have those tools, While it may not be the fairest way, in opposition to this amendment. As a not every day but most days you can make affirmative action is still probably the graduate of the University of Califor- tomorrow better than it is today. most effective way to overcome these nia at Berkeley, as a woman who never And I truly believe that. official policies of denial of access. would have had access to a higher edu- But I think turning the clock back- Even with the help of affirmative ac- cation in California’s public univer- wards, which many of my colleagues tion policies, twice as high a percent- sities had it not been for affirmative are trying to do, is wrong also. No, we age of whites have college degrees as action policies and programs, and who, are not to where we want to be, but I African Americans, and only 9 percent as a child, upon entering school, was think the focus is on equality. Look at of Hispanics have college degrees. Pro- not allowed to attend public schools or our colleges. Most of them are thick hibiting affirmative action policies, as public facilities due to segregation, I and strongly populated by the Asian the Riggs amendment would, only community because they focus on edu- worsens this disparity. urge Members to vote no on this cation at a very young age. I have a The reverse of affirmative action amendment. Eliminating affirmative large Asian population in my district policies in California and Texas public action denies equal opportunities to and they focus on the family. They universities led to a dramatic decrease many of our qualified young people focus on education from the day that in the enrollment of African American who deserve to have equal access to a they are in kindergarten and those students. All of those students that college education. When the University of California kids volunteer for every single event would have been admitted had high Board of Regents considered ending the that will foster them an opportunity to grades and were all fully qualified for affirmative action program several go to school. admittance. And as I look at our inner cities, Someday, we will not need affirma- years ago, as a member of the legisla- what chance do they have at the Amer- tive action, but that is not this day. I ture, I pleaded with them not to take ican dream, Mr. Chairman? Almost urge that we oppose this amendment. such a drastic action because of the none, because of the welfare system Mr. CLAY of Missouri. Mr. Chairman, fact that affirmative action, not that was set up, because of the prob- I yield 2 minutes to the gentlewoman quotas, which have been illegal since lems that they had, and the lack of val- from California (Ms. WATERS). the Bakke decision, but actually af- ues, and the crime and the drugs, and (Ms. WATERS asked and was given firmative action was the primary on and on and on. permission to revise and extend her re- mechanism in place to assure that So if we really want to help all chil- marks.) qualified students of color and women dren, let us do away with affirmative Ms. WATERS. Mr. Chairman, here we were afforded a public university edu- action and I truly believe that. The go again. The gentleman from Califor- cation. gentleman knows I worked with him on nia (Mr. RIGGS) and his extreme right- Many of us, myself included, pre- the committee. And I believe that if we wing friends are attempting to polarize dicted that minority admissions, which do that, that then we are going to help and divide this Nation by pitting citi- what we have heard today in terms of this country, not hurt it. Is it a perfect zens of this country one against an- the decline of the minority admissions, country? Absolutely not. other. would be very stark, and it is more The gentleman from California would stark than what we had imagined. b 2030 have Members believe that somehow For example, this decline overall of But most of us, believe it or not, will whites are being disadvantaged by af- 61 percent, that is outrageous. Only 191 work with you in that direction. firmative action and African Ameri- black students were admitted out of a Mr. CLAY of Missouri. Mr. Chairman, cans and Latinos and others are at a total of 8,034 into the University of I yield 2 minutes to the gentleman great advantage, and they are getting California at Berkeley. Medical school from Virginia (Mr. MORAN). all of the slots in these schools. admissions are equally alarming. There May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2903 are no African-American students and you what has happened in California since the Education should have less influence on edu- very few Latinos entering medical demise of affirmative action. cation policy. Yet, here we are on the verge of schools at several of our campuses. The Fall 1998 class on the University of putting the Department of Education in the It has been shown, time and time California's undergraduate campuses will be business of dictating admission policy for our again, that a large percentage of per- the first to have been admitted based on the higher education community. Sixty-two presi- sons of color will return to provide new Regent's policy. Only 652 out of 3675 Af- dents of the country's most prestigious univer- medical services for underserved com- rican American, Latino and Native American sities have come out in opposition to the elimi- munities. We condemn these under- applicants were offered enrollment for next nation of affirmative action policies. These served communities to remain under- yearÐa decline of 61% from last year. A 61% presidents have attested to the importance of served when we do not provide admis- decline in one year. African American enroll- diversity in fostering a rich educational envi- sion to qualified applicants who have ment fell by 66% and Latino enrollment fell by ronment and how affirmative action policies as their goal to provide health care 53%. At UCLA African American enrollment play a key role in achieving this diversity. This services to these communities. fell by 43%, while Latino enrollment fell by amendment directly contradicts what the ma- In 2 years of the Regents’ policy, we 33%. One of my constituents was recently in- jority of educators throughout the country have have begun to see the unraveling of 30 cluded in an article in the San Francisco said that they need. We cannot tie their hands years of progress. Why would we want Chronicle about the effects of the new policy. on how they can achieve their mission. to subject the rest of the country to Jamese LaGrone is a 17-year-old senior at I cannot stress enough what a devastating this ill-conceived experiment? Conven- Oakland's Holy Names High School. LaGrone effect and far reaching implications the Riggs tional wisdom says that as California was the junior class president, an athlete, amendment will have for the future of this goes, so goes the rest of the country. I worked on the yearbook and took a number of country. It will only further widen the dispari- ardently advise my colleagues to learn advanced placement courses. She has a 4.0 ties in education and income between men from the mistakes of my home State grade point average and scored 1390 on the and women, and whites and people of color. and vote no on this amendment. SAT. Clearly, she is a well-rounded teenager I cannot believe that Members of this House Mr. Chairman, I rise today in opposition to who has worked in and out of the classroom want to see the resegregation of America's the Riggs amendment. This amendment will to make the grade. I defy anyone to say that colleges and universities. I urge a no vote on prohibit any institution of higher education that this student is not qualified to attend the Uni- this measure to ensure that those qualified participates in any Higher Education Act pro- versity of California, Berkeley. Yet, she was students, regardless of their race or gender, gram from using race, gender, ethnicity or na- rejected by the University of California, Berke- have an equal opportunity to pursue their tional origin in its admissions process. Name- ley. She is among 800 African American, dreams. ly, the Riggs amendment seeks to eliminate Latino and Native American applicants with Conventional wisdom says that as California affirmative action policies throughout the high- 4.0 averages and a median SAT score of goes, so goes the rest of the country. I ar- er education system of this country. 1170 rejected by the University of California, dently advise my colleagues to learn from the As a graduate of the University of California Berkeley. mistakes of my home state. I hope that in this at Berkeley, as a woman who never would Medical school admissions are equally case, that conventional wisdom is wrong. I have had access to a higher education at Cali- alarming. Only 3 Chicanos are registered at yield back the balance of my time. fornia's public universities had it not been for the University of California at Davis, one at the Mr. CLAY. Mr. Chairman, I yield 2 minutes to the gentleman from Texas affirmative action policies and programs, who University of California at Irvine, and two at the University of California at San Diego. (Mr. STENHOLM). as a child, upon entering school, was not al- These numbers are only slightly better at the (Mr. STENHOLM asked and was lowed to attend public schools and public fa- University of California at Los Angeles and the given permission to revise and extend cilities due to segregation, I urge you to vote University of California at San Francisco. his remarks.) no on this amendment. There is only one Puerto Rican registered in Mr. STENHOLM. Mr. Chairman, I America never has been nor is it a color rise in opposition to the Riggs amend- blind society. Thirty years of affirmative action the entire University of California system. There are no African Americans among the ment, and I do so after numerous con- have helped change the landscape of our uni- freshman classes of medical school at either versations with institutions of higher versities and colleges. However, it has not the University of California at San Diego or the learning in my district. changed so much that we are in a position to University of California at Irvine. These admis- There are a lot of folks around that abandon our efforts. While African Americans, sion numbers have implications for the deliv- complain regularly that the Federal Latinos, and Native Americans comprise 30% ery of health care services to underserved Government, specifically the Depart- of the college-age population in the U.S., they communities. It has been shown time and time ment of Education, exercises too much only comprise 18% of college students. The again, that it is primarily persons of color who control over the education of our chil- percentage of women receiving doctorate de- will return to provide medical services for dren. They claim that they are for grees is 39%. However, in male-dominated these communities. We condemn these under- local control in autonomy and edu- fields like mathematics, engineering, and served communities to remain underserved cation. physical science, the percentage falls to 22%, when we do not provide admission to poten- My friends, this amendment pro- 12% and 12% respectively. The percentages tial, qualified applicants who have as their goal motes expanded authority for the Fed- of African Americans receiving PhDs is 4%; to provide health care services to these com- eral Government and takes away deci- Latinos and Asian Americans with PhDs are munities. sion-making power from States and lo- 2% and 6% respectively. These figures are Only one year after the Regents decision to calities, as read by those who are re- dismal and while some progress has been ban all affirmative action policies, the accept- sponsible for education in my district. made, now is not the time to impede this ance rate at Boalt Hall law school at Berkeley My office has been in discussion with progress. It is inconceivable to me that individ- dropped 81%; at UCLA, the rate fell 80%. The university presidents from across my uals are arguing that we no longer need af- message being sent to students of color is district. They represent a broad spec- firmative action programs. Eliminating affirma- that they are not welcomed in the University of trum of schools, small, large, public, tive action denies equal opportunities to many California system, so that even those few of- and private, those who are affected by of our qualified young people who deserve fered admission choose to go elsewhere. For this amendment, and those who are not equal access to a college education. example, no African American students who immediately affected. When the University of California Board of received admissions to Boalt Hall chose to at- In spite of the differences in their Regents considered ending affirmative action tend; only 7 of the Latino students who re- schools, though, all of the university programs several years ago, as a member of ceived admission elected to attend; the two presidents in my district that we spoke the California legislature, I pleaded with them Native American students accepted also de- with were unified in their opposition to not to take such a drastic action because af- clined admission. this amendment. They are worried firmative action was the primary mechanism in In two years of the Regent's policy, we have about this latest potential intrusion by place to insure that qualified students of color begun to see the unraveling of thirty years of the Federal Government in instructing and women were afforded a public university progress. Why would we want to subject the schools on ways in which they must education. Many of us, myself included, pre- rest of the country to this ill-conceived experi- conduct their business. They foresee an dicted that minority admissions and enrollment ment? impact far more draconian and ex- would decline precipitously. Results have been I have heard my colleagues on so many oc- treme than Proposition 209 and the even more stark than we imagined. Let me tell casions talk about how the Department of Hopwood decision. H2904 CONGRESSIONAL RECORD — HOUSE May 6, 1998 The last thing that these folks and ward. The fact is, the days of trying to crimination because they are already their universities that have done such justify fighting prejudice by being prej- illegal. And that is the point. This a fine job educating young people of udiced is a thing of the past. The as- amendment would eliminate diversity west Texas want is more intrusion and sumption that there are only certain in our Nation’s public colleges and uni- regulation from the Federal Govern- groups, by the color of their skin or versities. ment. their gender, who are disadvantaged We have seen what happens when af- I urge my colleagues to listen to when it comes to educational opportu- firmative action in higher education is these voices, to vote no on the Riggs nities is an antiquated concept. eliminated. Minority enrollment plum- amendment, and help prevent a broad- Mr. Chairman, if you walked in my mets, plain and simple. For example, based, far-reaching, intrusive Federal neighborhood, a community in south since the Hopwood case and the pas- prohibition that universities do not San Diego, along the Mexican border sage of Proposition 209, the number of support and students do not want. called Imperial Beach, we could walk racial minorities admitted to public Mr. RIGGS. Mr. Chairman, I yield down, and I could show you where universities in Texas and California myself 11⁄2 minutes. there was a Latino, an African Amer- has decreased dramatically. Mr. Chairman, I just again want to, ican, a Pan Asian, an Anglo. You could At the University of Texas Law for the benefit of all my colleagues, put not tell me that this person’s children School, admissions of Hispanic stu- matters in perspective in terms of what are advantaged, this person’s children dents is down 64 percent. Admission of is taking place in the University of are disadvantaged. African-American students is down 88 California system. The fact is that the great disadvan- percent. And when minority admis- The latest systemwide data released tages in our society today follow more sions decrease so dramatically, there by the University of California shows economic-social lines than any other are so few minority students that those that this fall’s freshman class will con- single denomination; and that happens who are admitted do not choose to at- tain 675 fewer non-Asian minority stu- to have a large, large impact to those tend. At Boalt Law School last year, dents spread over the entire eight cam- who are people of color. I agree with not one of the African Americans ad- puses. So the new freshman admissions that. I think there are opportunities mitted elected to attend. Even minority applications are plum- are 15.4 percent non-Asian minority, for us to have affirmative action. meting. Last year minority applica- interesting that they actually exclude In my county, we had affirmative ac- tions at the University of California at Asians from the minority classifica- tion, and it was declared constitutional San Francisco Medical School fell from tion, compared with 17.6 percent for because we did not have quotas and 722 to 493. Berkeley Chancellor Robert the 1997 freshman class. That is a de- set-asides. We did not judge men and Berdahl has said, ‘‘We have got to take cline of 2.2 percentage points. women based on their gender or people this seriously. Our future as a univer- The drop may be even smaller since based on the color of their skin, but we sity and the future of the State of Cali- the university does not know the eth- did address the issue. nicity of the huge number of admitted fornia is at stake.’’ There are a lot of people that are dis- The Association of American Medical students, 6,346, who declined to list advantaged and need help. That does Colleges has said of this amendment: their ethnicity on application forms not necessarily always follow based on ‘‘HMOs and other large health care or- this year. the color of someone’s skin or some- ganizations are calling for greater So I want to suggest to my col- body’s gender. numbers of physicians who reflect the leagues we have to treat these numbers Mr. Chairman, I think that we can diversity of the patient populations that people are throwing around with a work together on this, but we need to they serve. Today, black, Hispanic, and little bit of caution. The decline of leave the old race-baiting approach and Native American doctors are a crucial black and Hispanic freshman enroll- the gender baiting. We do not fight rac- source of care for the Nation’s burgeon- ment in the 2 percent range is a lot ism by being a racist. We are not going ing minority communities as well as smaller than many people predicted, a to end sexism by being sexist. its poor populations. Ultimately this lot smaller, of course, than those who Mr. Chairman, as somebody who has legislation will undermine decades of are quite up in arms, even hysterical worked on affirmative action for over progress our Nation has made in edu- over the passage and implementation 20 years, we can do better. We do not cating underrepresented minorities for of Proposition 209. need to deny a Filipino girl in San all trades and professions.’’ As I said earlier, what we have seen Diego access to the UC system because Mr. CLAY. Mr. Chairman, I yield 3 now is a spreading effect, more minor- there happen to be so many more Asian minutes to the gentleman from Michi- ity students at the other campuses in Americans who qualify. gan (Mr. BONIOR), the distinguished mi- the University of California system, to I have three daughters and two sons nority whip. the point where, as I quoted earlier, who are alive. I hope to God that some Mr. BONIOR. Mr. Chairman, America Judson King, the provost of the Univer- day in the next century we can stand has always been about opportunity: the sity of California, is acknowledging up and say that our daughters and our opportunity to work hard, the oppor- that we are actually achieving more di- sons, no matter what their gender, no tunity to get ahead, and the oppor- versity, better balance by the end of matter what their race, no matter tunity to achieve everything that our preferences in the University of Cali- their economic opportunities, will have talent and our toil will allow. And in fornia system. equal rights under the Government of today’s competitive economy, the key Mr. Chairman, I yield 21⁄2 minutes to the United States. to that opportunity is a good edu- the gentleman form California (Mr. Mr. CLAY. Mr. Chairman, I yield 2 cation. BILBRAY). minutes to the gentlewoman from New That is what we are talking about Mr. BILBRAY. Mr. Chairman, I think York (Mrs. LOWEY). this evening, ensuring that all Ameri- that we are all talking about the fact (Mrs. LOWEY asked and was given cans have an opportunity for a good that we want to address the fact that permission to revise and extend her re- education, even those who have tradi- everyone who is disadvantaged should marks.) tionally been denied access to our col- have access to their educational oppor- Mrs. LOWEY. Mr. Chairman, I rise in leges and universities. tunities. strong opposition to the Riggs amend- Most colleges and universities seek California is a very progressive ment. This amendment would forbid out students of various talents, per- State. We have been way ahead of the public colleges and universities from spectives, and backgrounds precisely curve so many times in America that considering race, color, national origin, because that diversity makes them now people have just basically ex- ethnicity, or gender at all in the ad- stronger. They admit students on the pected us to do this. I would ask that mission of students. basis of many subjective criteria. Some we talk about working together on this students are admitted because they are b issue. 2045 top scholars, some because they are Californians have recognized that we Now, I oppose quotas and reverse dis- good athletes, some because they are are not talking about turning the clock crimination, but this amendment will children of wealthy alumni, some be- back. We are talking about moving for- not eliminate quotas or reverse dis- cause they are in-State students, some May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2905 because they help create geographic di- race or gender. I will turn the earlier I want to tell my colleagues some- versity. argument of the gentleman from Texas thing that happened to me personally. Factoring in an applicant’s race and (Mr. EDWARDS) on its ear. Is there any- First of all, some background: Asians gender in the admissions process is no one on the other side of the aisle who now are about 38 percent of those ad- different except its purpose, ensuring is willing to stand up tonight, in fact, mitted to Berkeley, 41 percent of those equal opportunity for all Americans, is I think this is the argument the gen- admitted to UCLA. They are the larg- a whole lot more important than re- tleman from California (Mr. COX) made est ethnic group at those two cam- cruiting a winning football team or as well, and contend that any individ- puses. And if we look at people as boosting donations of alumni. Student ual American citizen has a constitu- members of groups, we could say, well, bodies that include men and women of tional right to preferential treatment that is high enough. That group’s per- all backgrounds help produce the diver- solely on the basis of their race or gen- centage is high enough. But that is just sity that we need in America. der? If so, I will hear from them now. I not fair to the individual who is told Now, there are those who argue that will yield to them. that we have reached the limit of affirmative action is no longer nec- The court is clear. What has evolved ‘‘your type.’’ essary. And to them I say, let us look is an unfair system. I had this personal experience, Mr. again, once again this evening, at the The court goes on to say quite the Chairman. When I was a member of the evidence. contrary. ‘‘No individual citizen has California State Senate, a high admin- One year after the University of Cali- that constitutional right to pref- istration official of the University of fornia prohibited all affirmative action erential treatment.’’ And they go on to California came to see me in my office. programs, enrollment for African conclude and say, ‘‘What then is the And he said, we need affirmative action Americans dropped 66 percent, Hispanic personal injury that members of a at Berkeley because, otherwise, ‘‘there enrollment dropped 53 percent. The end group suffer when they cannot seek would be nothing but Asians there.’’ He of affirmative action at the University preferential treatment on the basis of said that to me, in my office. I said to of Texas Law School caused Hispanic their race or gender?’’ him, what is wrong with that? They admissions to drop 64 percent and Afri- So that, I think, is the crux of the would be Americans. Not Asian Ameri- can-American admissions to drop and legal argument. And I guess that is as cans, not Caucasian Americans, not Af- good a segue as any, Mr. Chairman, to to fall by 88 percent. rican Americans. Americans. But this introducing my good friend and fellow So what do these statistics tell us? university official was concerned that That not all Americans are getting Californian. Mr. Chairman, I yield 7 minutes to there would be too many of one par- equal access to educational opportuni- the gentleman from California (Mr. ticular race at the University of Cali- ties. fornia. CAMPBELL). Affirmative action is an effective Mr. CAMPBELL. Mr. Chairman, what When California abolished the use of tool to remedy this. The Riggs amend- do we say, what do we say to the young race in the admissions policy at the ment would take this tool away from Asian-American woman who received a University of California, the group that us. It would undermine opportunity. I letter in 1989 from the University of increased in admissions was Asian. At strongly urge, Mr. Chairman, I strong- California Boalt Hall Law School. I saw the law school at UCLA, the numbers ly urge my colleagues to oppose it. the letter. It said that she was on the of Asians admitted grew 81 percent. Mr. RIGGS. Mr. Chairman, one more waiting list, and there was a blank, and During the time when affirmative ac- inquiry as to how much time is remain- the word ‘‘Asian’’ was written in; that tion was practiced (and I know this be- ing on both sides. she was on the lower third of the cause I interrogated the administra- The CHAIRMAN. The gentleman ‘‘Asian’’ waiting list. What do we say tion officials at the University of Cali- 1 from California (Mr. RIGGS) has 16 ⁄4 to an individual who is told that her fornia) people of higher income were minutes; and the gentleman from Mis- race is going to determine whether she admitted over Asian-Americans of 1 souri (Mr. CLAY) has 16 ⁄2 minutes re- has a good, better, or worse chance of lower income. There was no affirmative maining. getting into the law school of her action for Vietnamese, though they Mr. RIGGS. Mr. Chairman, I yield State, the University of California? came to this country with nothing. No myself such time as I may consume. (The University agreed to stop this affirmative action for them. I want to say to my colleagues that practice.) And the university actually argued we have to look at the results of af- People of good will are on both sides that because they would admit stu- firmative action as has been practiced of this issue tonight, Mr. Chairman. I dents of lower income if they abolished by many institutions of higher learn- recognize that. Every intelligent per- affirmative action, they would have ing around the country. That is why we son does. And I cannot dispute that af- lower academic performance, because have gotten the court ruling in the firmative action, as practiced in this academic performance was correlated Hopwood case; that is why the courts country, has done good for many peo- with income. That, to me, is so wrong, upheld the legality and constitutional- ple. I just cannot accept the price of to say to somebody whose income is ity of the California civil rights initia- the harm it does to those who are kept lower, that nevertheless they are just tive. out. And that is what happens. We can- the wrong race, so they cannot come In fact, the Ninth Circuit Federal not logically include somebody, giving in. Court of Appeals said in upholding preference on the basis of their race, Mr. Chairman, I had a distinct honor Prop. 29 in California, and I quote, without saying that somebody else is to be law clerk to Justice White in ‘‘Where a State denies someone a job, excluded because they were not of that 1978, when Bakke was decided. And I an education, or a seat on the bus be- race. read every word of the civil rights his- cause of her race or gender, the injury The University of California has been tory of the 1964 Act, and I read the to that individual is clear. The person the subject of a lot of the debate to- briefs in the case. And I will never for- who wants to work, study, or ride but night. Statistics about the test scores get that the Sons of Italy and B’nai cannot because she is black or a there were reported in the Wall Street Brith submitted briefs in that case say- woman is denied equal protection’’ Journal in April of this year. They say ing it is not just a generic Caucasian under the law. ‘‘Where, as here,’’ and that the SAT for math was 750 for that we would be taking places from, it referring to the case of Proposition 209 Asian students; for white students, 690; is us; in the two instances I gave, per- in California, ‘‘a State prohibits race for Hispanic, 560; and for black, 510. sons whose interests were represented or gender preferences at any level of What do we say to an Asian American by B’nai Brith and the Sons of Italy government, the injury to any specific who scores 740 on the SAT math and is would be losing places in the class ad- individual is utterly inscrutable.’’ told she cannot get into Berkeley, but mitted to medical school. Inscrutable. That is the word of the that if her race were white, she could? Four justices in that case ruled that appellate court. The danger is, once the State begins there was no difference to the individ- No one contends individuals have a to use race, it is very, very hard to do ual whether they are told they cannot constitutional right to preferential it right, to do it in a fair way, to do it get in because there is an absolute treatment solely on the basis of their in a constitutional way. quota, or they cannot get in because H2906 CONGRESSIONAL RECORD — HOUSE May 6, 1998 they do not have the racial plus factor Why do we not let all high school programming attracts the most of those who were admitted. Two of graduates who qualify to go to college women, and that is 29 percent of fe- those four were Justice Stevens and go to college? Why do we not open up male. Only 12 percent of physics doc- Justice Stewart, nobody’s far right the slots. Why do we not have open ad- torates and 22 percent of mathematics wing members of the Supreme Court. mission and have the Federal Govern- doctorates are awarded to women. For The numbers at the University of ment have a program where we expand minorities, its an even more bleak pic- California are not as good as we would the Pell grants and we expand all the ture. all like. I admit that. But the Univer- Federal aid to the point where open ad- Two-thirds of the new entrants into sity of California has not tried the al- mission would mean that every student the workforce in the year 2000 are ternative. What they should have done, graduating from high school who can going to be women and minorities. Let from the start, is consider people who reach a threshold can go on to college. us train them. Let us give them the op- are willing to work in low-income Because the facts are that those stu- portunity. Let us embellish affirmative neighborhoods upon graduation. Let us dents who have the lower SAT scores action in terms of what our Nation admit people to medical school who are in the minority community, once they stands for. The battle for equal rights willing to go into the neighborhoods go to college, the results, the studies is not yet won. I urge a ‘‘no’’ on the that need them. Let us admit students that are done about results in the med- Riggs amendment. taking into account a promise to do ical schools and results in the law Mr. CLAY. Mr. Chairman, I yield 2 that; not on the basis of their race. schools, they get the same results. minutes to the gentleman from Penn- We should consider income. We They come out at the same level as ev- sylvania (Mr. FATTAH). should consider whether your parents erybody else. Mr. FATTAH. Mr. Chairman, let me graduated from college. We should con- If we want an America which is meet- thank the gentleman for yielding. And sider how many from your high school ing its needs for a large number of edu- let me also concur that there are, I am went on to college. The University of cated professional people, and we are sure, well-meaning people on both sides California never tried those factors. missing the boat here, we have no vi- of this debate. But I think that this They used race because it was the most sion as to what is coming. We have a amendment would move this country convenient; and, hence, the numbers great shortage of teachers right now. in the wrong direction. now are as bad as they are. I suggest We do not seem to recognize what that Harvard University was founded for that it is time to try the alternatives, means. We have a great shortage of in- the sons of landowners, white male because using race has led to unfair- formation technology workers. landowners, and sons of the clergy. And ness to people in my State. Practically every profession is facing when we look at the circumstances of b 2100 the shortage just to meet our domestic higher education in this country and I conclude with this. This is a matter needs. Yet we are the indispensable na- we know that the greatest predictor of shame to me that my State kept tion that offers all kinds of assistance whether a kid would go to college is Chinese from owning property at the to the rest of the world, and our leader- the education of one’s parents, and beginning of this century; told Chinese ship in the world will have a lot to do then we already have heard the history they could not even litigate in civil with our prosperity; and we do not of how certain groups have been ex- courts up until the Second World War. have the educated people in the hopper, cluded, then we know by mere fact that They took Japanese Americans and in the pipeline, to do that. therefore others would be in a deficit said, ‘‘Because you are Japanese, you This amendment is going backwards. position in order to go forward and ma- will be deported from the State of Cali- It is all wrong. triculate at a higher education institu- fornia; your property and business will The CHAIRMAN. The Chair would tion. be seized.’’ It is just not right for my advise, the gentleman from Missouri We know that income is a secondary State to tell them now, ‘‘You are on (Mr. CLAY) has 141⁄2 minutes remaining, factor, and we know where minority the Asian waiting list.’’ and the gentleman from California (Mr. groups fall in the income distribution Mr. Chairman, we cannot do good by RIGGS) has 71⁄4 minutes remaining. scale in this country. We also know doing bad. Let us do good and consider Mr. CLAY. Mr. Chairman, I yield 1 that the third factor is the K-to-12 edu- people as individuals, not as members minute to the gentlewoman from cation. And everywhere we look in this of a class. Maryland (Mrs. MORELLA). country, we will see that minority stu- Mr. CLAY. Mr. Chairman, I yield 2 (Mrs. MORELLA asked and was given dents are in underfunded public edu- minutes to the gentleman from New permission to revise and extend her re- cation systems that disproportionately York (Mr. OWENS). marks.) put them in a situation where they (Mr. OWENS asked and was given Mrs. MORELLA. Mr. Chairman, I cannot compete adequately in some of permission to revise and extend his re- thank the gentleman for yielding the these standardized tests. marks.) time. So if we look at those three factors Mr. OWENS. Mr. Chairman, I mourn I rise in opposition to the Riggs that on their face are nonracial in for the Chinese who were denied the amendment. The amendment, although their characteristics, they have in fact right to own property. I mourn for the it has been altered, is still extreme. It an impact. The other thing that is im- Japanese who were put in concentra- is going to create a two-tiered system portant is that the Riggs amendment, tion camps. But I also mourn much at our Nation’s institutions of higher my colleague from the Committee on more for those descendants of African education. Our private colleges and Education and the Workforce, his slaves who were descendants of people universities can continue their affirm- amendment would allow a university who were not allowed to own property ative action programs, creating diverse like Penn State, where I served on the for 232 years. They were not even rec- and inclusive environments on their board of trustees, or Temple Univer- ognized in marriage. They could not campuses nationwide. But students in sity, to admit, as many do now, foreign get married. Laws were made to pro- public colleges and universities will be students based on preferences and all hibit the teaching of reading to African deprived of all of those benefits and en- kinds of other considerations, giving Americans. richment that diversity brings to the them points in the admissions process, All those injustices do not matter, I educational experience. giving them headway over and above suppose. If we start with a set of wrong While the Riggs amendment would native-born American students who assumptions, we can make a profound encourage the recruitment of women come from groups of Americans who argument about simple-minded mat- and minority students, there is little have been left out of the picture. ters. But let us lay this aside for a mo- indication that this language would be Now, here in this Capitol, we have ment and not discuss the need for af- implemented. Women and minorities some 300 pictures, artistic pieces, firmative action as a matter of justice have been historically underrep- renderings about our history. Not one that is long overdue. Let us just talk resented in many critical fields: picture is of an African American or a about how do we deal with the present science, engineering, technology. I Hispanic American, a Latino. Is the situation and some of the things the could cite the statistics to indicate kind of America we want to paint previous speaker said. that among technology jobs computer where we lock other people out? Do we May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2907 want to return to the day when in law It is good for children to get to know colleges. They use terms such as ‘‘pref- school and medical school it is all other children, not only children of the erential treatment’’ and ‘‘reverse dis- males and no females? same background, but children of dif- crimination’’ in order to obscure what What does that suggest for this coun- ferent backgrounds. And what the is really at stake here. try as we would go forward into the Riggs amendment would do is it would I know that the American people sup- 21st century? resegregate public universities in this port affirmative action. I have heard Mr. CLAY. Mr. Chairman, I yield 1 country. I do not see how that is good stories of countless individuals who minute to the gentlewoman from Flor- for America. have been benefited, who have been ida (Ms. BROWN). I think it is good that we have all helped, who have been given an oppor- Ms. BROWN of Florida. Attack. At- types of people getting to know each tunity that they would not have had tack. Attack. Mr. Chairman, I rise be- other so we can have a brighter future. but for these programs. These are the fore my colleagues today to express my It does not make sense. Private col- success stories of affirmative action opposition to this amendment. leges, as many of our colleagues have which we have not talked enough In fact, I am sick and tired of being stated, could continue to be diversified, about. sick and tired. Why is it that minori- whereas public universities would have These people who had this chance ties in this country are constantly on a stranglehold. overcame odds, surmounted the obsta- attack? One year after the passage of Let us not dictate to the States and cles of discrimination, and they were Proposition 209, California’s most se- tell them what they ought to do or allowed to fulfill their hopes and real- lect universities admit 50 percent fewer what is best for them. We do not need ize their potential, which they would African Americans and Latin American Big Brother. The States know what is not have been able to do without this applicants? Why is it that every time best for themselves. This amendment help. we talk about affirmative action in has constantly been worked and re- The Riggs amendment will create a education we are talking about race? crisis, educational inequality on a What about the football player who worked and reworked and reworked, which means there has been a terrible scale which we thought we had left be- gets affirmative action or the alumnus hind us when we passed the civil rights because of the family’s connection? problem with it. I wish it would be withdrawn. We laws in this country. We need only to How about the banker who has influ- have seen what happened in California look at California’s experience to know ence with the admissions board? This what happened when this new policy amendment is a blatant attempt to and in Texas with Proposition 209. This slides the country backwards. Let us came into being. keep minorities out of our colleges and Under Proposition 209, the California move forward and reject the Riggs universities so that they will never State system has experienced the most amendment. have the opportunity to be successful. significant drop in minority enroll- Mr. CLAY. Mr. Chairman, I yield 3 Affirmative action has never been ment in its freshman classes in the minutes to the distinguished minority about favoritism. It is merely one tool past 2 decades. Proposition 209 has had leader, the gentleman from Missouri to make sure that everybody in this such a devastating impact on edu- (Mr. GEPHARDT). country has an opportunity for edu- cational opportunity for minorities in (Mr. GEPHARDT asked and was cation. California, it has caused even long- given permission to revise and extend Mr. CLAY. Mr. Chairman, I yield 2 time opponents of affirmative action to his remarks.) minutes to the gentleman from New rethink their position. Mr. GEPHARDT. Mr. Chairman, I York (Mr. ENGEL). I remember what it was like in Amer- Mr. ENGEL. Mr. Chairman, I thank rise in opposition to this amendment, ica before we had this kind of affirma- the gentleman for yielding me the and I hope that it will be defeated. tive action that really brought people This amendment would travel us time. into opportunity. I graduated from the down the retrograde road of racial divi- I rise in strong opposition to this University of Michigan Law School in amendment. I am very sorry that this siveness by offering legislation that 1965. And in my class, there was one, amendment is before us today. It is would deny educational opportunity to one, African-American student. In fact, really very divisive. It moves the coun- minorities and women. The Members he was the only African American in try in the wrong direction. I do not who support this amendment wanted the entire law school when I attended think we want to go back to the good America to end the era of diversity and law school at the University of Michi- old days, which were not so good to integration in our public institutions gan. begin with. of higher learning. That classmate was Harry Edwards, I am really amazed because our Re- The Riggs amendment would destroy who is now Chief Judge Edwards of the publican colleagues have traditionally the years of effort and commitment U.S. Circuit Court of Appeals for the said that the Federal Government that this country has made to expand District of Columbia. ought not to intrude in the matter of educational opportunity. All the b education as far as the States go, and progress that we have made, and it is 2115 here we are mandating, intruding, and considerable, could be lost and reversed Last year in the entering class of the saying that the States cannot even with this one vote. University of Michigan Law School, have the ability to decide for them- The Riggs amendment is described by there were 25 African-Americans, and selves what is best for their univer- its proponents as an effort to eliminate 22 percent of the entering class was sities. It makes no sense to me. preferential treatment and discrimina- comprised of students of color. Look If we do not believe that the Federal tion in admissions in public institu- how far we have come. Do we want to Government should come in with a tions that receive funding under the go back to 1965 when there was one Af- sledgehammer, then why are we man- Higher Education Act. But make no rican-American student in the entire dating this on States? The States are mistake, the Riggs amendment is not law school at the University of Michi- intelligent enough. They know what about eliminating preferences and not gan Law School? Or do we want to con- kind of programs they want and what about eliminating discrimination. It is tinue what has been happening today kind of programs are best for their about limiting the ability of public in- because of affirmative action? States. We ought to leave it alone. stitutions to make their own choices I think I know the answer. I think I I was educated at public universities about how to reach out to qualified know the best answer for America and in my State. I think we do very, very students in their application process. for our people. Let us not go back into well. I am not interested in theories. In Like its model, California’s Propo- the past, which was not successful. Let the real world, this country moves for- sition 209, supporters of this amend- us stay with the present. Let us keep ward when people of goodwill work to- ment know that the majority of Amer- affirmative action. Let us keep Amer- gether. We need to stop dividing peo- ican people support affirmative action ica the land of opportunity. Vote ple. We need to bring people together. remedies that seek to be inclusive and against the Riggs amendment. People are benefited when they go to remedy past discrimination, that aim PARLIAMENTARY INQUIRY school with other types of people. That to increase the attendance of minori- Mr. RIGGS. Mr. Chairman, I have a is best for the society as a whole. ties and women at our universities and parliamentary inquiry. H2908 CONGRESSIONAL RECORD — HOUSE May 6, 1998 The CHAIRMAN. The gentleman will of the aisle, they seem to be referring, In conclusion, Mr. Chairman, I urge state it. if I understand their argument, to the all my colleagues to vote no on the Mr. RIGGS. Mr. Chairman, just con- continued existence of racial prejudice Riggs amendment. firming that the gentleman from Mis- in our society as a justification for ra- Mr. CLAY. Mr. Chairman, I yield 1 souri (Mr. CLAY) has the right to close cial preferences. I find that argument minute to the gentlewoman from North debate. utterly baffling. I cannot follow the Carolina (Mrs. CLAYTON). The CHAIRMAN. As a member of the reasoning there, because I do not un- (Mrs. CLAYTON asked and was given reporting committee opposing change derstand how State-based, State-en- permission to revise and extend her re- in the committee position, the gen- forced discrimination based on race, marks.) tleman from Missouri (Mr. CLAY) will which is exactly what my amendment Mrs. CLAYTON. I thank the gen- have the right to close. is intended to ferret out and end, I do tleman for yielding me this time. Mr. RIGGS. I would also like to con- not understand how that State-based, Mr. Chairman, I am in complete op- firm how much time is remaining on position to the Riggs amendment that State-enforced discrimination can help both sides. brings affirmative action to a screech- end discrimination and racism. I do not The CHAIRMAN. The gentleman ing halt in the admission offices in col- think the other side has addressed that from California (Mr. RIGGS) has 71⁄4 leges and universities across this Na- argument tonight. minutes remaining and the gentleman tion. Although the language of this 1 The evidence is unmistakably clear. from Missouri (Mr. CLAY) has 5 ⁄2 min- amendment sounds bland and non- utes remaining. After 25 years of preference, racial threatening, nevertheless the intent of Mr. RIGGS. Mr. Chairman, I yield preferences continue to be a powerful this amendment is to end affirmative myself 3 minutes. I just want to say, source of racism and racial resentment action, those actions which would over- let us not get too hysterical about this in our society. As I said just a moment come past discrimination. The sponsors debate. I go back for the third time in ago, they have poisoned racial rela- of this amendment talk about affirma- the course now of about 2 hours, I want tions at universities and schools across tive action as if they are quotas, which to quote Judson King, provost of the this country. It is time for us to admit is not the case. The goal we are trying University of California, who acknowl- to ourselves, to our fellow Americans to reach is equality of opportunity, not edged that the passage and the imple- that race conscious State action is not based on race. How can we reach this mentation of Proposition 209 has a cure for racism. It is simply a rein- goal when we fail to give opportunities evened out diversity across the Univer- forcement of it. to women and minorities to overcome sity of California system, all eight Mr. Chairman, I reserve the balance past discrimination? campuses, or nine if we include the of my time. I submit, Mr. Chairman, that in order University of California at San Fran- Mr. CLAY. Mr. Chairman, I yield 2 to achieve equality, we must not quit cisco Medical School. John Leo, who minutes to the gentleman from Texas our past endeavors. California and quoted Mr. King, goes on to say in this (Mr. HINOJOSA). Texas both enacted laws that prohibit commentary, ‘‘Though there is no real (Mr. HINOJOSA asked and was given universities and colleges from using af- shortage of hysterical commentary permission to revise and extend his re- firmative action as a legal remedy in about the end of preferences,’’ and we marks.) cases of discrimination, to use affirma- have certainly heard and seen that Mr. HINOJOSA. Mr. Chairman, I tive action to increase campus diver- here tonight, Mr. Chairman, ‘‘very few serve on the Committee on Education sity. Mr. Chairman, this amendment is people have bothered to talk about the and the Workforce. I strongly oppose counterproductive. It puts us further strong positive aspects. For one thing, the Riggs amendment. The elimination away from the goal we are trying to a great burden has been lifted from the of affirmative action programs in Cali- achieve, equality. I urge my colleagues shoulders of the University of Califor- fornia had a devastating effect on new to oppose this amendment, because dis- nia’s black and Hispanic students. No minority student enrollment in the crimination does indeed exist. longer can anybody patronize them or University of California’s graduate and Mr. RIGGS. Mr. Chairman, I yield stigmatize them as unfit for their cam- professional school programs in 1997. myself 15 seconds, to simply say that puses. From now on, all students in the Equally devastating was the effect on as the gentlewoman herself has said, system make it solely on the basis of we must guarantee equality of oppor- the enrollment of the two flagship uni- brains and effort and everybody knows tunity in our society. But we cannot versities in my own State of Texas. Af- it. The end of preferences will help guarantee equality of results. firmative action policies have enabled make campuses far more open and hon- Mr. Chairman, I yield the balance of colleges and universities to champion est places. The deep secrecy that sur- my time to the gentleman from Texas access and equal opportunity for a rounds the campus culture of racial (Mr. ARMEY), the majority leader, for preferences,’’ whether we are talking postsecondary experience for a genera- the purposes of closing debate on our about the University of California, the tion of students. Achieving diversity side. No one has worked harder to cre- University of Texas, the University of on college campuses does not require ate educational opportunity for minor- Michigan or for that matter any other quotas, nor does diversity warrant ad- ity children in this country than the public college or university that en- mission of unqualified applicants. How- majority leader, and he shares my con- gages in racial preferences in making ever, the diversity colleges seek does cern, our concern, that we as a country their admissions, setting their policies require that colleges and universities cannot afford to lose another genera- and in making their admissions deci- continue to be able to reach out and tion of urban school children. sions today, ‘‘has compromised many make a conscious effort to build The CHAIRMAN. The gentleman officials and led to much deceit and healthy and diverse learning environ- from Texas is recognized for 4 minutes. outright lawbreaking. Martin Trow, a ments appropriate for their missions Mr. ARMEY. I thank the gentleman Berkeley professor, spoke at a recent and communities. for yielding me this time. Mr. Chair- academic convention about all the The Nation cannot afford a citizenry man, let me begin by appreciating the coverups and lying that preferences unequipped to participate in the edu- gentleman from California (Mr. RIGGS) have spawned, citing as one minor ex- cational, social, political, cultural and for bringing this amendment to the ample an Iranian student at Berkeley economical processes of society. Until floor. It is not a debate that most of us who said he had been encouraged to list equity for all students is reached, these would want to join. It is a difficult sub- himself as Hispanic in order to qualify opportunities created through affirma- ject, there is no doubt about it, but yet for a preference.’’ You have academics tive action must continue. It is vital it is so important. To bring this sub- themselves, Professor Trow at Berke- that the reauthorization of the Higher ject out as the gentleman has done ley, Professor Cohen at Michigan Education Act ensure access to post- leaves him open to be easily misunder- speaking up and saying this is deeply secondary education for qualified ap- stood, even more easily misjudged and wrong. It is, as I said earlier, anti- plicants. The Riggs amendment would frankly more likely to be American. effectively shut the doors of higher mischaracterized. His courage and Mr. Chairman, the other thing I want education to large numbers of minority commitment to fairness is to be appre- to say to the speakers on the other side students. ciated. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2909 This has been an unusual opportunity need to know that if they get an ap- up in Indiana where I am born and for me. In these days I rarely get to lis- pointment, they got it on their merits. raised, a story about my mom and dad ten to an entire debate on any subject. There is no politics involved in this, no raising me and teaching me values, val- But I did get to hear this whole debate. preference, nothing special. Why did ues about God and faith, values about It is important to me. You see, I do not they need to know that? Because it is giving back to the community and, believe there is anything that we can a daunting task for a young person. therefore, my public service, and val- do as a culture of civilization that can They need to go to that task knowing ues about equality. And my mom and be as important as educating our chil- that they will be respected by the oth- dad always said to me, ‘‘Everybody dren. In that task, I believe there is no ers at the academy and that they have pulls their pants on the same way, and institution that is more important already proven in the selection process you better treat people equally.’’ than the university, because the uni- they have the ability and they can That was a value and a principle in versity gives us our final product and therefore go with the courage and the my household. gives us all our inputs as it trains our confidence they can succeed. Now growing up in predominantly teachers. Does not every young person in white Indiana in a rural community, I Indeed, I labored in the university for America that gains admission to any went to a predominantly white high 20 years, so I retain a great interest in college, any university, any program school. But then I went to the Univer- it. Of all the things that I heard in this deserve the right to know that not he sity of California at San Diego where debate this evening, the thing that I nor anyone else can doubt that he did they value diversity, where most of the found most unfair were the character- it on the basis of their own merit, their class was made up of people of color izations of American universities made own intelligence, their own accom- and different religions. And while I got by those in opposition of this amend- plishment? Or must they live with the a great academic experience, maybe ment. I repeatedly heard people say, shadow of worry and doubt that even if the best experience was the exposure to ‘‘Oh, we can’t do this, because univer- they themselves can get beyond it that this beautiful country, people from all sities will not be fair in their admis- others will not recognize these things different backgrounds and religions sions policies.’’ Do we think so little of and others will think you got it be- and races. And coming from rural Indi- our universities? Do we think so little cause somebody in the government de- ana, one of the best experiences of my of our professors? Do we think so little fined you arbitrarily as a person in a lifetime. Now the UC system has declined its of our admissions officers that we class to be given preference? enrollment for African Americans by 65 think they will not be fair? Without b 2130 percent; Hispanics, by 59 percent. As this, it was argued, the universities the U.S.A. is getting more diverse, will not pursue a policy of diversity. No. A government that can give a Well, I have been there. The univer- child a preference in consideration of some of our colleges are getting less di- sities invented diversity. They are matters extraneous to that child’s vir- verse. Affirmative action, Mr. Chairman, committed to it intellectually and tue and merit is a government that can should never be about quotas, it should emotionally, and they are not going to give a child prejudicial treatment. Is never be about reverse discrimination, walk away from it. I also heard a very America ready to have a government but it should be about what my dad and discouraging assessment of this. How that will insist that each child is mom told me: equal opportunity for little is our imagination? How little is judged by the quality and the char- all. We should make this a value and a our courage? We have seen some testi- acter the child has and the child has exhibited? principle in this great country of ours. mony. Yes, there is progress. There is As the civil rights struggle in the I believe what the gentleman from change. Things are better in America 1960s was about protests, it was about California (Mr. FRANK RIGGS) has asked than they were. We have got shame, we changing laws, the struggle in the new us to do now is to come to a fork in the have got embarrassment about the way century is going to be about access to road, a fork in the road that says: ‘‘Mr. we have treated one another in this Na- education. Savage inequality exists in and Mrs. America, we have faith in tion in the past, and things are chang- education in our inner cities. Colleges your goodness. We believe that you are ing. that consider race for admission should ready to travel the higher road, the Now I think the time has come in be a value and a principle in this great this great Nation, can we dare, can we road of fairness, decency, and respect; country. dare to move forward? I think this is and we don’t believe that we in Wash- And let me close, Mr. Chairman, by what the gentleman from California ington are either qualified or able to this. ‘‘E pluribus unum’’ is written all (Mr. RIGGS) is asking us to address. It dictate to you the terms by which you over this great Capitol; from the many, is not a retrograde road. Do you have should travel that road.’’ one United States of America; from the so little faith in the goodness of the Let us vote yes for this out of consid- many, blacks, Asians, Hispanics, one American people as exhibited in the eration for the young people’s right to United States of America; from Catho- discussions of your lack of faith in be treated with decency and out of re- lics and Protestants and Jews; from American universities that you believe spect for the goodness that we find in the many, one United States of Amer- we will go back to the days of Jim the American people. ica for men, women, and children; from Crow? Or maybe, maybe, America is a Mr. CLAY. Mr. Chairman, I yield the the many, one United States of Amer- Nation that has grown enough in its balance of time to the distinguished ica. goodness that the road that we are gentleman from Indiana (Mr. ROEMER) Let us hold affirmative action that about to take may be a better road? a member of the Committee on Edu- puts principle and value on diversity, The question I think that the gen- cation and the Workforce, to whom we on equality, on justice as a principle tleman from California is asking us to have reserved the right to close debate that is so vital to this great country. address, is America a Nation where we on this very critical and important Let us defeat the amendment offered believe it is right and a Nation that is issue. by the gentleman from California (Mr. capable of living by the idea that every The CHAIRMAN. The gentleman RIGGS). Let us continue to reform and person, every person in this Nation, de- from Indiana is recognized for 21⁄2 min- make affirmative action a value that serves to be treated the same as every- utes. works for all people in the United body else? (Mr. ROEMER asked and was given States of America. One of my great privileges as a Mem- permission to revise and extend his re- Mr. STOKES. Mr. Chairman, I rise in strong ber of Congress is to assist young peo- marks.) opposition to the modified Riggs amendment. ple in obtaining appointments to the Mr. ROEMER. Mr. Chairman, I rise This anti-diversity bill would dismantle affirma- military academies. That is often mis- in opposition to the Riggs amendment, tive action policies in higher learningÐby understood. I can appoint no one, but I and I do so even in respect to the gen- eliminating the ability of public colleges and can nominate. Repeatedly throughout tleman from California (Mr. RIGGS) universities to use gender and race as factors that process to all the young men and who I work with on a host of issues. in their admissions decisions. women who come to me, I emphasize I would like to tell a more personal It would also overturn the Supreme Court's that I want them to know, and they story, a personal story about growing Bakke decision, which allowed postsecondary H2910 CONGRESSIONAL RECORD — HOUSE May 6, 1998 institutions to use race as one of the factors This amendment goes beyond what even often, individual or institutional discrimination, considered in an admissions decision. the courts have said on this issue. It would intentional or not, precludes minorities and Another impact of the Riggs amendment overturn the 1978 Supreme Court decision in women from participating in many levels of our would be the resegregation of public univer- Bakke versus California Board of Regents, society. Not only is that detrimental to the indi- sities across the country. And, the develop- which found it constitutional for schools to use viduals affected, it hurts our nation and our ment of a two-tiered higher education system affirmative action to advance diversity in edu- economy. that would override the authority of states to cation. It would even go beyond the 1996 Fifth Like most things in life, the battle against decide admissions policy. As a consequence, Circuit Court of Appeals ruling in Hopwood discrimination has sometimes resulted in re- large numbers of, otherwise qualified minority versus Texas by prohibiting the use of affirma- verse discrimination. This is counterproductive. students, would be denied access to higher tive action where there is proven discrimina- I welcome the Administration's continuing re- education. tion on the basis of race, sex, color, ethnicity, view of existing affirmative action statutes. Despite the clever machinations of affirma- or national origin. Government should always be willing to re- tive action opponents, affirmative action poli- This amendment's language is so vague view existing laws. However, we must not re- cies are not simple preferences based on and poorly-defined that the only safe course verse efforts toward achieving equality and ad- race, sex, and ethnicity. Nor are they social for colleges or universities would be to make vancement over the last 25 years. engineering policies intended to artificially cre- no effort whatsoever to achieve a student The Hopwood decision in Texas, as well as ate a color-blind society. Rather, affirmative body which mirrors the demographics of the Proposition 209 in California, have slammed action policies are specifically tailored to rem- communities they serve. The amendment fails the door of opportunity for minorities. The edy the compounded effects of discrimination to define ``preferential treatment'', leaving in Riggs amendment would only compound the and privilegeÐwhich have had a profoundly doubt whether basic efforts such as recruit- damage that has already been done. The negative impact on minority communities. The ment, outreach, targeted financial assistance, Congress of the United States should be elimination of these policies in higher learning mentoring, and counseling would be legal. working to create and expand opportunity, not would further exacerbate disparities which al- This is not only bad social and educational to deny it. I urge a no vote on the Riggs ready plague disadvantaged minority commu- policy, but a recipe for endless and costly amendment. nities. legal wrangling. Mr. RIGGS. Mr. Chairman, fundamentally Affirmative action has allowed minorities and Recent experience in my state of Texas un- this debate is about the refusal of my col- women to break through the many barriers of derscores how harmful this amendment would leagues on the other side to give up their discrimination that have contributed to keeping be to minority access to higher education. In Band-AidÐtheir fig leafÐtheir placebo for the them undereducated, unemployed, underpaid, the 1996 Hopwood decision, the Fifth Circuit failure of their great society social programs and in positions of limited opportunity for ad- Court of Appeals ruled that race could no and the failure of the public education system vancement. longer be used as the basis for affirmative ac- in America. The poor in this country, white and The Riggs amendment serves no purpose tion in admission to the University of Texas at black and Hispanic and Asian, were trapped for higher education beyond exacerbating ex- Austin. Subsequently, the Texas Attorney for forty years in a dismal and dysfunctional isting wrongs while maintaining the illusion of General ruled that no colleges in the state welfare system that we have only now begun true equality. We have already begun to wit- could use race as a factor in admissions or fi- to dismantle. They are still trapped in a public ness what the dismantling of affirmative action nancial aid programs. school system that is betraying our nation's policies can do. The precipitous decline in mi- The result has been a devastating decrease childrenÐa public education system that we nority admissions and enrollment experienced in enrollment by minority students. Under- on this side of the aisle have tried again and by the California higher educational system graduate enrollment by African-American again to reform. We've tried with education after the passage of Proposition 209, is a freshman has fallen by 14 percent at the Uni- savings accounts, with parental choice in edu- good example of what can happen. As such, versity of Texas at Austin and by 23 percent cation, with shifting power and responsibility UCLA's law school has seen an 80 percent at Texas A&M University. Hispanic enrollment and accountability from Washington bureauc- drop in the number of African American stu- has dropped by 13 percent at the University of racy and powerful teachers unions to states dents offered admission for next fall. This is Texas and 15 percent at Texas A&M. At the and localities and families. And every one of the lowest number since 1970. And, of the University of Texas Law School, African-Amer- our effortsÐevery oneÐhas been resisted 8,000 students offered admission to the Uni- ican and Hispanic enrollments have decreased tooth and nail by my colleagues on the other versity of California at Berkeley for next fall, by 87 percent and 46 percent respectively. side of the aisle, and by the Clinton adminis- only 191 were African Americans and 434 Medical school enrollment for African-Ameri- tration. They will do nothing to reform primary were Hispanic. This is in comparison to 562 cans has fallen by 40 percent. and secondary education: They did worse African American and 1,045 Hispanic stu- Mr. Chairman, these dramatic declines are than nothing for twenty years to reform wel- dents, respectively, last year. harmful not only to minority students, but to fare. What they will do, is defend to the death Eliminating affirmative action policies serves our society as a whole. African Americans cur- the right of government to discriminate based no purpose beyond fostering the development rently comprise 11.5 percent of the Texas on race and sex. Because that is their Band- of a society based on privilege. Those privi- population, and Hispanics comprise 27.7 per- Aid, their fig leaf, their placebo for a public leged enough to have access to superior aca- cent. In contrast, African Americans and His- education system that traps hundreds of thou- demic institutions are those deemed to have panics number only 9 percent and 18.8 per- sands of young children in unsafe and under- merit. Those who do not, are not. Disadvan- cent, respectively, of the student bodies of performing schools. Our children deserve bet- taged minoritiesÐdue to a long history of sys- state colleges and universities in Texas. ter. And this amendment is part of doing better temic discriminationÐare more likely not to Alarmingly, only 2.9 percent of students ac- for them and by them. Support my amend- have access to these structures. Ending af- cepted for undergraduate studies at the Uni- ment. firmative action would simply assure the per- versity of Texas in Austin for the 1998±99 petuation of this already unfortunate system. school year are African American. Mr. FAZIO of California. Mr. Chairman, Mr. Chairman, I strongly urge my colleagues Clearly, a large segment of society would be today my colleagues and I have the oppor- to vote ``no'' on the modified Riggs ``Anti-Dis- left behind if efforts to equalize opportunity tunity to increase access to higher education crimination in College Admissions'' amend- and diversify the composition of student bod- for all Americans by supporting H.R. 6. ment. The passage of this extreme measure ies are eliminated. When opportunity is elimi- However, a proposed amendment by Con- would threaten the reauthorization of the High- nated, all students are denied the benefits of gressman RIGGS promises to have the oppo- er Education Act, as the President has indi- learning in a diverse environment, which is site effect by eliminating affirmative action and cated that he will veto H.R. 6 if this amend- critical to succeeding in a diverse workplace closing the window of opportunity that higher ment passes. Support for the Riggs amend- and society. Minorities are already under rep- education offers. ment would do more harm than good. resented in professions such as medicine and As Americans, we are committed to equal Mr. BENTSEN. Mr. Chairman, I rise in law. In an increasingly diverse society and opportunity for all, and special treatment for strong opposition to this amendment. This global economy, we ignore this problem at our none. amendment would severely undermine efforts own peril. All of us should have the opportunity to per- to provide opportunity for women and minori- Like other Americans, I want a color and form and prove our capabilities. ties, and its language is so broad and vague gender blind society. However, we cannot Proponents of anti-affirmative action believe that it could even prohibit remedial action in close our eyes and pretend that we live in a that we lower standards when we support cases of proven discrimination. perfect world. Discrimination still persists. Too these particular programs. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2911 On the contrary, I believe that we raise the Mr. PAYNE. Mr. Chairman, I would like to This is why our colleges and universities standard by admitting individuals from diverse voice my adamant opposition to Mr. Riggs' across the country have turned to affirmative backgrounds. amendment. Congressman Riggs and his sup- action. They in turn, will provide the role models to porters believe that the days when affirmative Our institutions of higher education take enrich and properly reflect the American fab- action policies are needed are over. I suppose race and sex into consideration because they ric. they believe that equality has been reached know that a diverse student body benefits ev- We level the playing field by allowing the when only 18 percent of those enrolled in col- eryone and provides an educational setting for under represented population to compete in leges are minorities but African Americans, our students that mimics the real world. arenas historically closed to them. Hispanics and Native Americans make up 30 I think everyone in this chamber would I am concerned about any legislation that percent of the college age population. I guess agree that students learn as much from each eliminates state and local efforts which are de- they believe that diversity is reached when other as they do from their professors and signed to increase opportunities for women only 33 percent of all African American high booksÐand this is all the more true when stu- and minoritiesÐservices like counseling and school graduates attended college in 1993 dents are fortunate enough to be in a richly di- recruiting programs to boost enrollment among compared to nearly 42 percent of whites. verse campus. We must not revert to the days of the edu- minority youth, and math and science pro- Affirmative action is still needed and without cational `haves' and `have nots' and keep grams developed to help girls in secondary it the composition of our colleges and univer- some of our brightest minds from seeking out school. sity campuses will be reminiscent of what they Higher education is filled with preferences. public colleges. looked like 30 years ago. We have seen this If this ill-willed amendment is adopted, some According to the Riggs amendment, it's OK to very thing happen in States such as California grant preferential treatment to sons and students may be able to take the road to pri- and Texas where minority admissions have vate campuses. But, what is most distressing daughters of alumni, to athletes, to other spe- declined because of anti-affirmative action is that many minority students may have no cial talents or one based on geographyÐthey laws. option at allÐand that the cleavages in our are considered legitimate areas for preferential This year the University of California cam- society will continue to expand. treatment. puses report they received more minority ap- The problem here is that the Riggs amend- But the Riggs amendment says that race, plications with stronger academic credentials ment does not really address the problem of sex, color, and ethnicity are not legitimate. than ever before. At the same time, UCLA's discrimination or equality. What it really does Eliminating affirmative action sends the law school saw an 80 percent drop in the is prohibit our public colleges from using the wrong message. number of African-American students offered most effective tools to help remedy past dis- UC Davis, a university in my district, is see- admissions for next fall which is the lowest crimination. ing an alarming decline in enrollment from well number since 1970. Surprisingly the Riggs amendment would qualified minority students. This is a clear indication of how crippling dramatically expand the federal role of edu- The campus now scrambles for outreach to anti-affirmative action laws can be to the edu- cation in an area where states and localities properly reflect California. cation of minority populations. Many minority should have control. We preach about limiting Meanwhile, private colleges in my state are students in California are viewing this anti-af- the federal government's role in educationÐ more engaged than ever in seeking to diver- firmative action law as evidence that the Uni- but what we are doing here is in fact grossly sify their student body. versity of California system does not value di- expanding it. The Republicans preach local controlÐbut versity on their campuses. In a recent letter to members of Congress, only when it's to their advantage. Today they Therefore, they are starting to consider both Attorney General Reno and Secretary want Congress to be the Admissions Office for going out of state for school which is much Riley promised to call for a presidential veto to all of America's public colleges. more expensive. By passing the Riggs amend- HR 6 if the Riggs amendment is included. Let's let educators decide what students ment we will send the same message to all Let us not be fooled by the new Riggs they want, not politicians. minority students nationwide. Additionally, the amendment. I urge my fellow colleagues to Vote no on the Riggs Amendment. take a close look at the fine print in this Mrs. MALONEY of New York. Mr. Chair- loudest battle cry I hear from opponents of af- firmative action is that the practice of using amendment and see how detrimental it will be man, I rise in opposition to the Riggs amend- to our schools and to students. ment which would ban colleges and univer- quotas and set asides is wrong and needs to be eliminated. In my home state of Texas, where affirma- sities that consider race and gender in the ap- tive action has been killed, the University of Congressman RIGGS has chosen the wrong plication process from receiving Higher Edu- Texas law school now has only four entering cation Act funding. area to combat such a belief because under the Supreme Court Bakke (back-ee) decision, African American students, where former Many of America's educational institutions classes had more than thirty. The same holds try to correct past discrimination or to achieve schools are not allowed to use quotas and set asides in their admissions process. true for the California schools where a similar the benefits of a diverse student body by tak- proposal has been adoptedÐthere has been a They may, however, exercise their right to ing race and gender into consideration in ad- significant drop in the number of minority ad- consider race and gender as ONE of the fac- missions. This amendment would force these missions. This is a step backwards and it must tors in their admissions decisions. This is not colleges and universities to choose between be stopped! abandoning these important policies or their discrimination. This is not preferences. This We are talking about the future of an entire participation in any Higher Education Act Pro- ruling simply allows colleges and universities generation of students. We must offer our gram. to have the freedom to choose the students FULL support and help them pursue their edu- In the year after the University of Califor- who become part of their institutions. cational dreams. nia's Board of Regents approved a policy pro- I believe that if this amendment passes it I urge my colleagues to reject this measure hibiting all affirmative action measures in pub- will have a dramatic and adverse effect on the and stand up for diversity and strength. lic universities, the number of African Ameri- minority student population at our colleges and Mrs. KENNELLY of Connecticut. Mr. Chair- cans admitted to UCLA law school dropped by universities. And that, Mr. Chairman, would be man, I rise in strong opposition to the Riggs 80%, and at UC-Berkeley law school by 81%. one of the biggest tragedies I can imagine. I Amendment to eliminate affirmative action in Next fall's UC-Berkeley incoming class has ask my colleagues to consider this when they higher education. This amendment would have dropped 66% for African Americans and 53% cast their vote on this amendment. a devastating effect on efforts to correct past for Hispanics. Mr. RODRIGUEZ. Mr. Chairman, I rise discriminations on our college campuses and When affirmative action is done right it is today in opposition to the Riggs amendment. I would urge my colleagues to oppose this fair and it words. Even after being redrafted by its sponsor, this amendment. It is not quotas. measure punishes minority students and The landmark Supreme Court decision It is not, and I do not favor, rejection or se- shortchanges institutions of higher learning. Bakke v. California Board of Regents recog- lection of any person solely on the base of The amendment assumes we are in a soci- nized the use of affirmative action as a con- gender or race without considering merit and ety that is free from discrimination, and that stitutional means to advance diversity in high- qualifications. Hispanic and African American students have er education. The Riggs amendment would I believe there will be a day when we do not equal opportunity. The fact of the matter is eliminate affirmative action even if the courts need affirmative action, but we are not there that discrimination is alive in our society and ordered it as a remedy where there is proven yet. The statistics show that the job of ending that while much lip service is paid to equal- discrimination on the basis of race, sex, or discrimination in this country is not over. ityÐfor minority students it is far from a reality. ethnicity. H2912 CONGRESSIONAL RECORD — HOUSE May 6, 1998 I have been contacted by Yale University For these reasons and others, I support the quotas in college admission[s].'' My question and the University of Connecticut in my home passage of the Riggs Amendment. is what quotas and preferences? His amend- state, as well as many other academic asso- Ms. PELOSI. Mr. Chairman, I rise in strong ment fails to define them. Is the mere consid- ciations, religious organizations and civil rights opposition to the Riggs amendment to H.R. 6, eration of race as one factor in a complex ad- organizations from across the country who which would prohibit public institutions of high- missions process considered a preference, have joined together to express their strong er education from receiving federal funding if even when there is no specific numerical goal opposition to the Riggs Amendment. It is intru- they use race or gender in making admissions for admission of a particular group? There sive and would dictate college admissions decisions. have been ``preferences'' for white Americans policies to public and private institutions by The status of admissions in California in the since this country was founded. It is only when limiting their ability to select students based on wake of Proposition 209 illustrates the harmful universities engage in legal, valid attempts to the needs of those institutions. Our institutes way in which the Riggs amendment would im- provide a level playing field for minorities that of higher learning strive to provide the best pact the nation. Statistics already show a drop people see a preference problem. educational experience possible for Ameri- of over 50% in undergraduate admissions at Consider that while African Americans, can's students. We should not hinder this ef- UC Berkeley for African Americans, Latinos Latinos, and Native Americans make up 28 fort by restricting a school's ability to promote and Native Americans. percent of the college-age population, they ac- a strong and diverse student body. Acceptance by students is not the only count for only 18 percent of all college stu- The devastating impact of the Riggs amend- place where the elimination of affirmative ac- dents. Only 33 percent of African American ment on minority enrollment is already evident tion has had a crushing impact. It has an im- and 36 percent of Hispanic high school grad- in the California school system where enroll- pact on acceptances by students as well. uates ages 18±24 attended college in 1993, ment by minorities has dropped significantly. Many of the highest-scoring African American compared to 42 percent of whites in this age As we move into the 21st century with a in- students are turning down the University of group. creasingly diverse and global economy we California in favor of private universities. Afri- Recent evidence suggests that the anti-af- must ensure that access to higher education is can American faculty at the university are dis- firmative action initiatives of the past few years not closed off to the young people of this na- couraging prospective African American stu- will only make this situation worse. A year tion. Rather we should welcome the talents of dents from enrolling because the faculty re- after the UC Regents' decision to ban affirma- all our citizens. gard Berkeley as a divisive areas and a na- tive action in the UC system, the number of I urge my colleagues to oppose the Riggs tional laboratory for the dismantling of affirma- African Americans admitted to the UCLA law Amendment. tive action programs in higher education. En- school dropped by 80 percent and the number Mr. MCINTOSH. Mr. Chairman, I support the rollment of African Americans at UC Berkeley admitted to the Berkeley campus dropped by Riggs Amendment to Title XI of H.R. 6, the has dropped 66 percent this year, and enroll- 81 percent. The fall 1997 semester at Boalt Higher Education Re-Authorization Bill, be- ment of Latinos has dropped 53 percent at Law School of UC Berkeley witnessed the ma- triculation of only one Black student in a class cause I believe that it will make America a that university. At the UC Berkeley Boalt Hall of 268. Out of the 468 students in the first- more fair country. law school, none of the African-American stu- I believe that America should be a place year University of Texas Law School class, dents accepted into the class of 1997 chose to where people of merit can get ahead based only four are African American. enroll. upon their own capabilities, and ``not be Statistics on UC undergraduate admissions Affirmative action programs are part of a judged by the color of their skin but by the for the fall 1998 classÐthe first class which larger commitment to student diversity which content of their character'' in the words of the will suffer the full brute force of Prop. 209Ð enriches the educational experience, strength- great Reverend Martin Luther King, Jr. are equally startling. The number of African The American people overwhelmingly op- ens communities, enhances economic com- Americans admitted to UC Berkeley and pose the use of racial quotas in higher edu- petitiveness, and teaches our students how to UCLA dropped 66 percent and 43 percent, cation. Surveys show that 87% of all Ameri- be good leaders. This amendment is another while the number of Latinos dropped 53 per- cans, and a full 75% of African Americans, opportunity to erode decades of progress in cent and 33 percent. feel that race should not be a factor in admis- ensuring that diversity in higher education for Supporters of the Riggs amendment may be sion to a public university. all Americans. It is just another extreme effort, quick to cite today's Los Angeles Times, which Federal appellate courts, including the U.S. as we saw in the transportation bill, to elimi- reports that Boalt Law School at Berkeley has Supreme Court, have repeatedly struck down nate federal programs that provide opportunity admitted more than twice the number of Afri- racial preference systems used by college ad- for women and minorities. can AmericansÐ32Ðfor fall 1998 than were mission offices as unconstitutional. This bipartisan Higher Education bill has admitted last year. This is great news. How- People of color deserve to be proud of their many benefits for our nation's students. The ever, it does not obviate the need to defeat academic credentials. Racial quotas only di- Riggs amendment most certainly is not one of this amendment. The numbers throughout the minish the significance of their accomplish- them. It will have a crushing effect on diversity UC system are still paltry, and adoption of the ments. in higher education. I urge my colleagues to Riggs amendment would replicate the UCLA The statutory law as it currently stands auto- support educational opportunity for all Ameri- and Berkeley minority undergraduate admis- matically presumes that a person of color cans and oppose the Riggs amendment. sions decline nationwide. grew up in disadvantaged circumstances, and Mr. DIXON. Mr. Chairman, I rise in strong The UC admissions statistics provide incon- deserve a ``leg up'' in the admissions process. opposition to the Riggs amendment to H.R. 6 trovertible evidence that the Riggs amendment This is a hard message to accept for many of which would ban the use of affirmative action would jeopardize educational gains for minori- the voters in my district who come from fami- in admissions for public colleges and univer- ties made in the aftermath of the Bakke deci- lies of modest means. sities that receive funding under the Higher sion. In Bakke, the Court held that in certain I would like America to be a color blind soci- Education Act. instances a college or university may consider ety. Unfortunately, this is simply impossible The House should reject this amendment. It race in admissions. Examples include the con- when America's young adults are forced to is another step down the road of educational sideration of race to remedy an institutional confront the differences that the color of their segregation led by California Proposition 209, history of discrimination and the promotion of skin bears upon whether they'll get into the the University of California affirmative action a university's mission to create a diverse stu- college of their choice or not. ban, and the Hopwood decision in the U.S. dent population. If passed, the Riggs amend- This is a period in their lives when they form Court of Appeals for the Fifth Circuit. The ment would force public colleges and univer- the opinions which they will carry with them Riggs amendment overturns the U.S. Su- sities to choose between providing opportuni- throughout adulthood. I am afraid that the frus- preme Court's ruling in Regents of the Univer- ties for minorities and women and receiving trations caused by racial quotas causes too sity of California v. Bakke, which for twenty funds under the Higher Education Act. many of them to be conscious of race in every years has allowed America's universities to The many schools across the nation that setting. provide opportunities for many disadvantaged would be affected by this amendment gen- Racial preferences in college admissions minorities. This amendment is an unfair fed- erally have admissions processes based on violate the principles of freedom and equality eral intrusion into the college and university an array of complex factors. These factors on which the civil rights struggle is based. Ra- admissions process and its passage will likely measure not only an applicant's potential for cial preferences are both immoral and legally result in a veto of this important reauthoriza- individual academic success but also an appli- unconstitutional. tion legislation. cant's ability to contribute positively to the in- The field should be level in college admis- Mr. RIGGS says in his Dear Colleague letter stitution overall. The Riggs amendment rep- sions. Race should not be a factor. that he wants to ``ban all preferences and resents an unfair federal intrusion into those May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2913 processes. We cannot afford to tie the hands We cannot have an effective dialogue on Higher Education Act when it is reauthor- of American's universities at a time when mi- racism and bigotry in this country unless ev- ized on April 22, and norities still lag behind the rest of America in Whereas: Affirmative action programs es- eryone is given an equal chance to attend col- tablish equal opportunity for women and educational attainment. lege and obtain a college degree. The eco- people of color, redress gender, racial, and The Kerner Commission Report thirty years nomic divisions in this country are linked to ethnic discrimination, and encourage diver- ago stated that ``Our Nation is moving toward education levels within any given group. It is sity in the workplace and educational insti- two societies, one black, one whiteÐseparate not a tragedy of circumstance that those mi- tutions; therefore, be it and unequal.'' A new report by the Milton S. norities with the lowest levels of higher edu- Resolved: that the Associated Students of Eisenhower Foundation, ``The Millennium cation attainment are also the poorest people the University of California oppose Congress- man Riggs’ ‘‘Anti-Discrimination in College Breach,'' suggests that the prediction has be- in our country. This ill-conceived amendment come a reality with minorities disproportion- Admissions Act of 1998’’ and urge all Califor- would not only re-segregate our colleges and nia members of the Congress to oppose this ately represented among the poor and an universities, it would have a chilling effect resolution. ever-increasing gap between rich and poor. If, upon the larger society. Mr. THOMPSON. Mr. Chairman, I rise today as I believe it is, education is the key to eco- As a proud alumni of the University of Cali- in opposition of Representative FRANK RIGGS' nomic empowerment, then the Riggs amend- fornia at Berkeley, I am appalled by the H.R. 3330, the ``Anti-Discrimination in College ment will only continue America's progress to- plunge in undergraduate admissions of minor- Admissions Act of 1998'' which will be offered ward economic and social segregation. ity students since the ban on affirmative action as an amendment during the House consider- I urge a ``no'' vote on the Riggs amendment. in California was approved in a state referen- Mr. LANTOS. Mr. Chairman, I rise today to ation of H.R. 6, The ``Higher Education Author- dum. That unfortunate California referendum is ization Act'' of 1998. This amendment would support affirmative action programs in this na- the fundamental idea behind this amendment tion and to oppose strongly this unfortunate prohibit colleges and universities that take that we are considering, and its consequences race, sex, color, ethnicity, or national origin amendment that the House is considering. in California have demonstrated why we must This amendment is an outrageous assault into account in connection with admission(s) oppose it. In California, admissions of Chi- upon the Constitutional responsibilities of from participating in, or receiving funds under cano, Latino, and African American students American colleges and universities. If Amend- any programs authorized by the Higher Edu- for the coming freshman class have dropped ment 73 is adopted, we would face debilitating cation Act of 1965 (HEA). by more than half. In the recent fall class of nation-wide consequences which would de- This amendment will not only have a dev- the Boalt Law School at Berkeley only seven stroy the years of progress our higher edu- astating impact on post secondary admissions African-American students were admitted, and cation system has made in compensating for at both public and private institutions, but also only one chose to enroll. past and present discrimination against discourages institutions from considering race, Mr. Speaker, this ill-conceived amendment women and minorities. even in instances where the purpose is fo- IGGS sends a message to women and Affirmative action programs are still needed. by Mr. R cused on remedying past discrimination. This Years of past discrimination coupled with con- minorities that they are not welcome in institu- piece of legislation is far more sweeping than tinued discrimination have deprived many tions of higher learning. This bill proclaims California's Proposition 209 in that H.R. 3330 women and minorities of equal access to high- loudly that we do not want a just society, that aims to eliminate affirmative action in private, er education. The long shadow of historical we would rather turn our backs and not accept as well as public, colleges and universities. It legal discrimination is still visible in our coun- the existence and legacy of discrimination. will also constrain an institution's ability to sat- I am not alone in decrying the effect of try; this discrimination was propagated and en- isfy constitutional and statutory requirements forced by the federal government. eliminating affirmative action. Mr. Speaker, to eliminate discrimination in post secondary President Clinton has reminded us that sixty-two of our country's most prominent uni- education. there is still no level playing field for women versity presidents oppose this legislation and There is now evidence of what happens and people of color. Mr. Speaker, now is not have placed advertisements in national papers when universities are forced to drop their af- the time to forget that bigotry, inequality, and to emphasize the importance of racial, ethnic, firmative action programs. The University of economic barriers still close doors everywhere and gender diversity in contributing to a strong California's board of Regents banned all af- for women and minorities. Mr. Riggs' amend- entering class. firmative action and the acceptance rate of Af- ment (Amendment 73) would prevent edu- The students of the University of California, rican Americans to UCLA Law School fell by cational institutions from providing disadvan- Berkeley, one of the finest public universities eighty percent. After the Hopwood decision, taged students with scholarships, financial aid, in this country and my alma mater, have taken admission of African-Americans to the Univer- support programs, and outreach programs are it upon themselves to speak out against H.R. sity of Texas School of Law dropped by essential if students from disadvantaged com- 3300 and to speak in support of affirmative ac- eighty-eight percent. It is clear that with the munities are to have access to higher edu- tion. H.R. 3300, introduced by Mr. RIGGS, is passage of this amendment, there will be a re- cation, which is the prerequisite to their eco- the stand-alone version of Amendment 73 segregation of colleges and universities. nomic and social advancement. which we are now considering. In Mississippi the percent of the population In the Bakke decision, the Supreme Court Mr. Speaker, on Wednesday, April 22, the 25 years and older who have a college degree upheld the use of affirmative action to ad- Associated Students of the University of Cali- is 14.7%. Moreover, Mississippi ranks 47th out vance diversity in education. Colleges and uni- fornia (ASUC) unanimously approved a resolu- of fifty states in relation to the percent of the versities voluntarily administer affirmative ac- tion opposing these provisions. I am proud population having a college degree and 47th tion programs to comply with their statutory that the students stand firmly united against out of 50 in comparison to other African Amer- and Constitutional obligations to end discrimi- this harmful measure. Mr. Speaker, I ask that icans in the fifty states. nation in higher education. Certain institutions the statement be included in the RECORD. Let The Riggs amendment is an unnecessary, would be placed in the absurd position of us learn from them. regressive, and dangerous bill that would de- being cut off from federal funding while attend- A BILL OF THE ASSOCIATED STUDENTS OF THE stroy the progress that has been achieved in ing to court-ordered desegregation plans. This UNIVERSITY OF CALIFORNIA IN OPPOSITION the last thirty years. This amendment will legislation would create a serious backlash TO THE ‘‘ANTI-DISCRIMINATION IN COLLEGE merely serve as a tool to increase the dispari- against current legal redress for past discrimi- ADMISSIONS ACT OF 1998’’ (HR 3330) ties in education and income between men nation. Authored and sponsored by: ASUC Exter- and women and whites and blacks. Affirmative nal Affairs Vice-President Sanjeev Bery Action in higher education has clearly estab- Mr. Speaker, if affirmative action admission Whereas: The misnamed ‘‘Anti-Discrimina- programs are banned, we would lose a valu- tion in College Admissions Act of 1998’’ lished significant advances in the area of able tool for combating the existence of igno- (HR3330) would prohibit colleges and univer- equal opportunity for ethnic minorities and rance and prejudice. Attending a diverse cam- sities from using affirmative action in col- women in admissions to colleges and univer- pus gives students the opportunity to confront lege admissions if they receive any federal sities and the workforce. I will continue to sup- face-to-face the stereotypes and harmful as- funds; and port programs which strengthen not tear apart sumptions about difference in our country. The Whereas: If any student at a university re- equal opportunity. If the Higher Education Au- college experience is one of peer exchange. ceives federal loan money or Pell grant thorization Act (H.R. 6) contains the ``Anti-Dis- There are few better ways to break down funds, the university would be prohibited from using affirmative action in admissions; crimination in College Admissions Act of stereotypes of race, ethnicity, and gender in and 1998'', I will vote against H.R. 6. this country than allowing students to live and Whereas: Representative Frank Riggs is Ms. CHRISTIAN±GREEN. Mr. Chairman, I study together in a community of mutual re- the author of this resolution, and is almost rise in strong opposition to the Riggs amend- spect and understanding. certain to offer it as an amendment to the ment. It is an extreme, vindictive political ploy H2914 CONGRESSIONAL RECORD — HOUSE May 6, 1998 which will serve only to prevent innocent chil- A recorded vote was ordered. Jackson-Lee Meeks (NY) Sawyer (TX) Menendez Saxton dren from seeking a better quality of life The vote was taken by electronic de- Jefferson Millender- Schumer through the pursuit of higher educationÐand it vice, and there were—ayes 171, noes 249, John McDonald Scott should be voted down! not voting 13, as follows: Johnson (CT) Miller (CA) Serrano Johnson (WI) Minge Shays My colleagues, the Riggs amendment would [Roll No. 133] say to Black and Latino taxpayers that even Johnson, E. B. Mink Sherman AYES—171 Kanjorski Moakley Sisisky though you, because of these very same pro- Kaptur Mollohan Skeen Aderholt Frelinghuysen Nethercutt grams, help to pay for the cost of public edu- Kelly Moran (KS) Skelton Archer Gallegly Northup Kennedy (MA) Moran (VA) Slaughter cation in your state, college administrators Armey Ganske Norwood Kennedy (RI) Morella Smith (MI) cannot design outreach programs to maximize Bachus Gekas Oxley Kennelly Murtha Smith, Adam Baesler Gillmor Packard opportunities for your children to attend their Kildee Myrick Snowbarger Baker Gingrich Pappas institutions. This is wrong. Kilpatrick Nadler Snyder Ballenger Goodlatte Parker As an African American physician, I want Kind (WI) Neal Souder Barr Goodling Paul King (NY) Ney Spratt you to know that the passage of this ill-con- Bartlett Goss Paxon Kleczka Nussle Stabenow ceived amendment would serve to reduce the Barton Graham Pease Klink Oberstar Stark Bass Granger Peterson (PA) already existing shortage of African-American Klug Obey Stenholm Bereuter Greenwood Petri physicians in this country. Kucinich Olver Stokes Bilbray Gutknecht Pickering In an article entitled, ``Can Black Doctors LaFalce Ortiz Strickland Bilirakis Hall (TX) Pitts LaHood Owens Stupak Survive'', Dr. Jennifer C. Friday of the Joint Bliley Hansen Pombo Lampson Pallone Tanner Center for Political and Economic Studies, Blunt Hastert Porter Lantos Pascrell Tauscher Boehner Hastings (WA) Portman points out that even despite affirmative action Largent Pastor Thompson Bono Hayworth Ramstad programs instituted by medical schools in the LaTourette Payne Thurman Brady Hefley Riggs Lazio Pelosi Tierney 1960's and 1970's African Americans com- Bryant Herger Riley Leach Peterson (MN) Torres prised only 3.1 percent of all the nations phy- Bunning Hill Rogan Lee Pickett Towns Burton Hilleary Rogers sicians in 1980 and still are only 3.6 percent Levin Pomeroy Traficant Callahan Hoekstra Rohrabacher of the total today. This is unacceptable. Lewis (CA) Poshard Turner Calvert Horn Roukema We all know that there is a shameful gap in Lewis (GA) Price (NC) Upton Camp Hostettler Royce Lofgren Pryce (OH) Velazquez the health status of minorities in this country. Campbell Hulshof Ryun Lowey Quinn Vento Increasing the number of minority physicians Canady Hunter Salmon Luther Rahall Visclosky Cannon Hutchinson Scarborough is critical to closing this gap. Maloney (CT) Rangel Walsh Chabot Hyde Schaffer, Bob I am sure there are those among us who Maloney (NY) Redmond Waters Chambliss Inglis Sensenbrenner would say that the action by the Board of Re- Manton Regula Watkins Chenoweth Istook Sessions Markey Reyes Watt (NC) gents of the University system in California Coble Jenkins Shadegg Martinez Rivers Watts (OK) and the ruling in the Hopwood case in Texas Coburn Johnson, Sam Shaw Mascara Rodriguez Waxman Collins Jones Shimkus could have been mitigated by other policies McCarthy (MO) Roemer Weldon (PA) Combest Kasich Smith (NJ) that could be and were put in place in these McCarthy (NY) Ros-Lehtinen Wexler Cook Kim Smith (OR) McDade Rothman Weygand two states. Cooksey Kingston Smith (TX) McDermott Roybal-Allard White My colleagues, I want to make sure that you Cox Knollenberg Smith, Linda McGovern Rush Wise know that this has not been the case. The Crane Kolbe Solomon McHale Sabo Wolf Crapo Latham Spence numbers of African Americans and Hispanic McIntyre Sanchez Woolsey Cubin Lewis (KY) Stearns admissions in the California and Texas Univer- McKinney Sanders Wynn Cunningham Linder Stump Meehan Sandlin Young (AK) sity system, as predicted, have dropped pre- Deal Lipinski Sununu Meek (FL) Sanford cipitously. DeLay Livingston Talent I am totally confounded that anyone could Doolittle LoBiondo Tauzin NOT VOTING—13 think that discrimination no longer exists, or Dreier Lucas Taylor (MS) Bateman Hastings (FL) Shuster that educational opportunities are now equal Duncan Manzullo Taylor (NC) Dunn Matsui Thomas Carson McNulty Skaggs for all races and ethnic groups in this country. Ehrlich McCollum Thornberry Christensen Neumann Yates This is clearly and unfortunately not the Emerson McCrery Thune Doyle Radanovich case. America's children who live in predomi- Everett McHugh Tiahrt Gonzalez Schaefer, Dan nantly minority communities do not receive the Ewing McInnis Wamp same level of funding per student and their Fawell McIntosh Weldon (FL) b 2156 Foley McKeon Weller education is consequently shortchanged. That Fossella Metcalf Whitfield Mrs. MYRICK, and Messrs. is why some of us are frequently on the floor Fowler Mica Wicker GILCHREST, SNYDER, STUPAK and Franks (NJ) Miller (FL) Young (FL) arguing for repair, construction and support for RUSH changed their vote from ‘‘aye’’ our public school system. NOES—249 My colleagues the Riggs amendment should to ‘‘no.’’ be defeated because it would: result in the re- Abercrombie Clement Farr Messrs. COBURN, THUNE and Ackerman Clyburn Fattah GREENWOOD changed their vote from segregation of public universities across the Allen Condit Fazio country; prevent public universities and col- Andrews Conyers Filner ‘‘no’’ to ‘‘aye.’’ leges from remedying past discrimination; Baldacci Costello Forbes So the amendment was rejected. Barcia Coyne Ford produce a two-tiered higher education system Barrett (NE) Cramer Fox The result of the vote was announced which would override the authority of state Barrett (WI) Cummings Frank (MA) as above recorded. governments to decide admissions policy; and Becerra Danner Frost endanger targeted outreach and recruitment Bentsen Davis (FL) Furse b 2200 programs for women and minorities. Berman Davis (IL) Gejdenson Berry Davis (VA) Gephardt PERSONAL EXPLANATION This proposal is an outrage and flies in the Bishop DeFazio Gibbons face of all that America stands for. It is as was Blagojevich DeGette Gilchrest Mr. MATSUI. Mr. Chairman, I ask said in last Thursday's Washington Post, noth- Blumenauer Delahunt Gilman that the RECORD reflect that I voted ing more than political ``grandstanding'' which Boehlert DeLauro Goode the wrong way on the Riggs amend- Bonilla Deutsch Gordon ``demeans the House'' and should be de- Bonior Diaz-Balart Green ment. I intended to vote no. I made a feated. I urge my colleagues to vote no on this Borski Dickey Gutierrez mistake and voted the wrong way. Boswell Dicks Hall (OH) amendment. LIMITING DEBATE TIME ON AMENDMENT NO. 79 The CHAIRMAN. All time having ex- Boucher Dingell Hamilton pired, the question is on the amend- Boyd Dixon Harman Mr. GOODLING. Mr. Chairman, I ask ment offered by the gentleman from Brown (CA) Doggett Hefner unanimous consent that all debate on Brown (FL) Dooley Hilliard Amendment No. 79 and all amendments California (Mr. RIGGS). Brown (OH) Edwards Hinchey The question was taken; and the Burr Ehlers Hinojosa thereto be reduced to 10 minutes, Chairman announced that the noes ap- Buyer Engel Hobson equally divided and controlled by my- peared to have it. Capps English Holden self or my designee and the gentleman Cardin Ensign Hooley RECORDED VOTE from Missouri (Mr. CLAY), or his des- Castle Eshoo Houghton Mr. RIGGS. Mr. Chairman, I demand Clay Etheridge Hoyer ignee, with an additional 90 seconds on a recorded vote. Clayton Evans Jackson (IL) each side for a wrap-up. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2915 The CHAIRMAN. Is there objection chances of getting into the program di- Mr. CAMPBELL. Mr. Chairman, I do to the request of the gentleman from minished on the basis of their race or not know the number. I am offering the Pennsylvania? their religion. I list other things which amendment whose text I read and There was no objection. might be considered as an alternative. which was preprinted. Mr. Chairman, it PARLIAMENTARY INQUIRY Existing law prohibits exclusion of is 76, I am informed. I am informed it Mr. CAMPBELL. Mr. Chairman, I anybody on the basis of their race. And is 76. have a parliamentary inquiry. I want to say ‘‘thank you’’ to several The CHAIRMAN. For the benefit of The CHAIRMAN. The gentleman will colleagues on the Democratic side with all Members, it is the Chairs’ impres- state it. whom I almost had an agreement that sion that amendment intended to be Mr. CAMPBELL. Is it not customary this be accepted. At the last minute it considered now is Amendment No. 76 as to have the Reading Clerk read the was not possible, but I want to thank preprinted. amendment first? the good faith that went into the effort Mr. GOODLING. Mr. Chairman, I The CHAIRMAN. Under the rule, the on that behalf. yield such time as he may consume to amendment will be considered as read. The existing law says we may not ex- the gentleman from California (Mr. The gentleman is offering the amend- clude on the basis of race. I am saying CAMPBELL). ment at this point? that we may not exclude or have the The CHAIRMAN. Without objection, chance of acceptance diminished on the AMENDMENT NO. 79 OFFERED BY MR. CAMPBELL the time limit previously agreed to by basis of race. And I suggest this at unanimous consent will apply to this Mr. CAMPBELL. Mr. Chairman, I least is what all of us could agree on is offer an amendment. debate. what good affirmative action is. Mr. GOODLING. Mr. Chairman, I The CHAIRMAN. The Clerk will des- Mr. CLAY. Mr. Chairman, I rise in ignate the amendment. yield the balance of my time to the opposition to the amendment, and I gentleman from California (Mr. CAMP- The text of the amendment is as fol- yield 2 minutes to the gentleman from lows: BELL). New Jersey (Mr. ANDREWS). Mr. CAMPBELL. Mr. Chairman, I am Amendment No. 79 offered by Mr. CAMP- Mr. ANDREWS. Mr. Chairman, I prepared to close in less than a minute. BELL: thank the gentleman from Missouri At the end of the bill add the following new Existing law answers all of the ques- (Mr. CLAY) for yielding me this time. tions that were put by the gentleman title: Mr. Chairman, I too rise in opposi- from New Jersey (Mr. ANDREWS), my TITLE XI—NONDISCRIMINATION tion to this amendment. I would point good friend and colleague. Existing law PROVISION out to our colleagues, I believe this is says that no person in the United SEC. 1101. NONDISCRIMINATION. essentially the same issue we just de- States shall on the ground of race, (a) PROHIBITION.—No individual shall be ex- feated on the last vote and I would en- color, or national origin be excluded cluded from any program or activity author- courage them to do the same on this from participation in, be denied the ized by the Higher Education Act of 1965, or vote. any provision of this Act, on the basis of I also oppose this because I believe it benefits of, or be subjected to discrimi- race or religion. is a breeder of litigation. I believe that nation under any program or activity (b) RULE OF CONSTRUCTION.—Nothing in receiving Federal financial assistance. subsection (a) shall be construed to preclude this amendment will not breed equal- ity; I believe it will breed litigation. To My proposal says, in addition, it does or discourage any of the following factors not repeal that. It says no individual from being taken into account in admitting understand why, imagine the case of a students to participate in, or providing any student who applies for a job under a shall be excluded from or have a dimin- benefit under, any program or activity de- Federal Work Study program, which is ished chance of acceptance to any pro- scribed in subsection (a): the applicants in- a program authorized under the act, gram or activity authorized by the come; parental education and income; need and the student alleges that he or she Higher Education Act of 1965 or any to master a second language; and instances has been denied the job on the basis of provision of this act on the basis of of discrimination actually experienced by race or religion. that student. race. This amendment does not answer the following questions: It then goes on to say that nothing in The CHAIRMAN. Pursuant to the One, must the student prove that that subsection I just read shall be con- order of the Committee today, the gen- there was discriminatory effect or dis- strued to preclude or discourage any of tleman from Pennsylvania (Mr. GOOD- criminatory intent? Secondly, who has the following factors from being taken LING), or his designee, and the gen- the burden of proof under this amend- into account and admitting students to tleman from Missouri (Mr. CLAY), or ment? Does the student have to prove participation in or providing any bene- 1 his designee, will each control 6 ⁄2 min- that he or she has been the victim of fit under any program or activity de- utes. discrimination or is the burden on the scribed in subsection A: Applicant’s in- The Chair recognizes the gentleman institution to show that the student come, parental education and income, from Pennsylvania (Mr. GOODLING). was not the victim of discrimination? need to master a second language, an Mr. GOODLING. Mr. Chairman, I And finally, what is the quantum of instance of discrimination actually ex- yield 2 minutes to the gentleman from proof? Does the person carrying the perienced by that student. California (Mr. CAMPBELL). burden have to prove this to a prepon- Mr. Chairman, I conclude by saying Mr. CAMPBELL. Mr. Chairman, this derance of the evidence? To a substan- there is no one I think in this body who is what my amendment provides. I tial degree? Beyond a reasonable wants to exclude anyone from a Fed- would like to ask my colleagues’ indul- doubt? eral program on the basis of that per- gence so I can read it, and I am also Those are all questions that I believe son’s race. That is what this amend- going to ask the gentleman from Cali- are not satisfactorily answered in the ment makes clear. It should have been fornia (Mr. HORN) to make the copies amendment. I believe it captures the noncontroversial. I am hoping that it available over to the Democratic side same spirit of the amendment we just is when the vote comes. so that they actually have the text, if defeated, but I also believe it breeds Mr. Chairman, I yield back the bal- he might assist me in that, or the gen- litigation and would cause considerable ance of my time. tleman from New Hampshire (Mr. chaos in higher education programs. Mr. CLAY. Mr. Chairman, I yield 2 BASS). Mr. Chairman, I urge its defeat on minutes to the gentlewoman from Ha- Mr. Chairman, it reads: No individual that basis. waii (Mrs. MINK). shall be excluded from or have a dimin- Mr. GOODLING. Mr. Chairman, I re- Mrs. MINK of Hawaii. Mr. Chairman, ished chance of acceptance to any pro- serve the balance of my time. I thank the gentleman from Missouri gram or activity authorized by the Mr. CLAY. Mr. Chairman, we have 3 (Mr. CLAY) for yielding me this time. Higher Education Act of 1965, or any minutes remaining, and I reserve the Mr. Chairman, this amendment is provision of this act, on the basis of balance of my time. really no different than the amend- race or religion. The CHAIRMAN. Just to clarify for ment that we have already defeated. It Mr. Chairman, there is a second the Clerk, the gentleman from Califor- goes to the very heart of this country’s clause which says that no one shall be nia (Mr. CAMPBELL) is offering Amend- obligation to people who have not had excluded from a program or their ment No. 79 or Amendment No. 76? the same opportunities in education, to H2916 CONGRESSIONAL RECORD — HOUSE May 6, 1998 open up their opportunities by allowing what it means. There is one interesting have done has been for students and them entry into our universities. legal point in terms of discrimination their parents to see that they get a The Riggs amendment said we could on religion. We do not know whether full, equal opportunity to get a college not take into account the necessity of that would mean that religious schools education. I think that is good for diversity in our campuses by giving an could or could not discriminate or pre- America, and I think we passed a good advantage to some group, some racial fer those of its religion. bill. I want to thank all of my col- group, national origin group, so that But there is one thing that we know, leagues for working to make this such they could create a much more diverse and that is we could not remedy noto- a good effort. community in our universities. rious discrimination if this amendment Mr. KILDEE. Mr. Chairman, I yield What this amendment offered by the would pass. Whatever it means, it myself the balance of our time. gentleman from California (Mr. CAMP- would attack valuable programs de- Mr. Chairman, as we conclude debate BELL) says is not the question of admit- signed to address woeful underrep- on this, I would like to recognize the ting but excluding. We cannot exclude. resentation of minorities in certain very hard work of the staff on this leg- What does exclude mean? We already fields. There are only a handful of mi- islation over the last 16 months. have definitions in the law under Title nority Ph.D.’s granted in science every On the Republican side, I want to ac- knowledge the excellent work of Bob VI of the Civil Rights Act that call for year and outreach initiatives to ad- Cochran and Karen Weiss, the personal nondiscriminatory action. The gen- dress this woeful underrepresentation staff of the gentleman from California, tleman is asking this House to inter- aimed at minorities, such as the Ron- and Vic Klatt, Sally Lovejoy, Lynn pret exclusion perhaps from a program ald E. McNair program to encourage Selmser, David Frank, D’Arcy Phillips, minorities to pursue doctorates in as per se discrimination. That is George Conant, and Pam Davidson of science. Those programs would be in wrong. the committee staff. If Members voted against the Riggs jeopardy. But most importantly, I want to rec- Let us keep opportunity open. I urge amendment, they must vote against ognize the absolutely superb efforts of Members to defeat this amendment this amendment also. It is much more Sally Stroup who spearheaded this mischievous. It creates a great confu- just like we defeated the last amend- work on this legislation. She is a gra- sion on Title VI of the Civil Rights ment. cious, thoughtful, and very competent Mr. Chairman, I yield back the bal- Act, and I hope that Members will de- staff person. Everyone in this Chamber ance of my time. feat this amendment. owes her a great debt of gratitude. The CHAIRMAN. Pursuant to the I know that my colleague in speaking On the Democratic side, I want to ex- earlier on the Riggs amendment broke unanimous consent agreement, the press my appreciation to Chris my heart when he talked about Asian gentleman from Pennsylvania (Mr. Mansour and Callie Coffman of my own Americans scoring very high, not being GOODLING) and the gentleman from personal staff, and Gail Weiss, Mark able to get into the university. I feel Missouri (Mr. CLAY) will each be recog- Zukerman, Marshall Grigsby, Alex 1 for those individuals. But I as a human nized for 1 ⁄2 minutes to wrap up. Nock, and Peter Rutledge of the com- being, as an American citizen, I have The gentleman from Pennsylvania mittee staff, as well as Broderick John- an obligation to make sure that our (Mr. GOODLING) is recognized for 90 sec- son, the former committee counsel, public universities have an opportunity onds. now at the White House. Mr. GOODLING. Mr. Chairman, I for everyone. This means to create a Further, while she has moved to the yield myself 45 seconds. Institute of Museum and Library Serv- diverse university with the ability to Mr. Chairman, I merely want to create this we have to have an affirma- ices, I also want to thank Margo thank everyone for their patience. I Huber, who, as a member of the com- tive action program. think we are probably completing one So to adopt this amendment, to say mittee staff, did exceptionally fine of the most important pieces of legisla- that if we exclude someone it is a per work in helping formulate this bill. tion that we will deal with this year. se act of discrimination, we are creat- Perhaps most important, I thank Millions of Americans, young people ing a whole new legion of law and hav- David Evans. For 19 years, David and old, who are going to colleges and ing to bring in the lawyers to interpret served Senator Pell, on the Senate postsecondary schools will certainly this. This is very bad. This is mis- Education Subcommittee, and I per- benefit dramatically. chievous. I urge my colleagues to de- suaded him over a year ago to come feat this amendment. b 2215 here and work on this important reau- thorization bill. He and I have worked The CHAIRMAN. The Chair seeks one I want to thank members of the staff. last clarification. The Chair and the First of all, I want to thank the gen- closely together, and I value very, very much the contributions he has made Parliamentarian are convinced that tleman from California (Mr. MCKEON) and the friendship we have forged. the author intended to offer and read and the gentleman from Michigan (Mr. Finally, we are all grateful for the to the Committee his Amendment No. KILDEE) for their effort to bring this bi- hard work of Steve Cope in the Legisla- 79 as preprinted; is that correct? partisan legislation before us. I want to tive Counsel’s office, Deb Kalcevic at Mr. CAMPBELL. That is correct, Mr. thank Vic Klatt, Sally Stroup, George the Congressional Budget Office, and Chairman. Conant, Sally Lovejoy, Jo Marie St. the staff of the Congressional Research Mr. CLAY. Mr. Chairman, we are now Martin, Jay Diskey, Pam Davidson, Service, particularly Margot Schenet, debating Amendment No. 79? Darcy Phillips, David Evans, Mark Jim Stedman, and Barbara Miles. The CHAIRMAN. The Committee has Zukerman, and Marshall Grisby for the Mr. STOKES. Mr. Chairman, I rise in strong been debating Amendment No. 79 since tremendous job they have done. opposition to the Campbell amendment. This it was offered. Mr. Chairman, I yield 45 seconds to measure is legal minutia that erodes existing Mr. CLAY. Mr. Chairman, I yield the the gentleman from California (Mr. statutes already established to address con- balance of our time to the gentleman MCKEON), the subcommittee chairman, cerns about discrimination in higher education. from Virginia (Mr. SCOTT). who worked long and hard to put this In fact, in many ways, the Campbell amend- Mr. SCOTT. Mr. Chairman, I thank legislation together. ment mimics Title VI of the Civil Rights ActÐ the gentleman from Missouri (Mr. Mr. McKEON. Mr. Chairman, I would which already prohibits institutions of higher CLAY) for yielding me this time. like to join the gentleman from Penn- education that participate in programs, receiv- Mr. Chairman, this started out as a sylvania (Mr. GOODLING), the chairman, ing Federal financial assistance from the De- bipartisan bill designed to expand op- in thanking the members of the staff. partment of Education, from discriminating portunities and I hope it ends up that He named all of the ones I was going to against students on the basis of race, color, or way if we defeat this divisive amend- name. I want to thank all of you, plus national origin. As such, discrimination against ment. my personal staff, Bob Cochran and individual students in the administration of Mr. Chairman, this language either Karen Weiss, for the great work they Higher Education Act programs is already for- means nothing because Title VI al- have done, for all of you for being pa- bidden by law. ready prohibits discrimination or it is tient with us throughout this day. The Campbell amendment takes an addi- different from Title VI and that will This has been a real bipartisan effort. tional step in that it extends this ``anti-discrimi- take years of litigation to interpret The underlying principle in all that we nation'' policy to include religion. The need for May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2917 this added dimension is rather confusing since Riggs Shaw Thomas Hastings (FL) Neumann Skaggs Riley Shimkus Thornberry Hilliard Radanovich Yates there are no programs under the Higher Edu- Rogan Smith (NJ) Thune Largent Schaefer, Dan cation Act in which religion is a consideration. Rogers Smith (OR) Tiahrt McNulty Shuster Rohrabacher Smith (TX) Upton Another issue of concern is that this amend- b 2236 ment would prohibit religious educational insti- Ros-Lehtinen Smith, Linda Wamp Roukema Snowbarger Watkins Mr. ENSIGN and Mr. GIBBONS tutions, which participate in Higher Education Royce Solomon Weldon (FL) Act programs, from considering an applicant's Ryun Spence Weldon (PA) changed their vote from ‘‘aye’’ to ‘‘no.’’ religion in admission. Salmon Stearns Weller Messrs. GREENWOOD, SOLOMON, Sanford Stump White HYDE and UPTON changed their vote Mr. Chairman, I am very concerned about Scarborough Sununu Whitfield the nature and purpose of this initiative. It is Schaffer, Bob Talent Wicker from ‘‘no’’ to ‘‘aye.’’ extremely ambiguous and very confusing. My Sensenbrenner Tauzin Wolf So the amendment was rejected. concerns about the extent of its impact raises Sessions Taylor (MS) Young (AK) The result of the vote was announced Shadegg Taylor (NC) Young (FL) questions about institutions that receive Higher as above recorded. Education Act funding will be prohibited from NOES—227 The CHAIRMAN. Are there any other amendments? participating in affirmative action at any level Abercrombie Goode Oberstar where race or religion is an issue, including Ackerman Gordon Obey If not, the question is on the commit- Allen Green Olver tee amendment in the nature of a sub- admissions. Andrews Gutierrez Ortiz Mr. Chairman, I urge my colleagues to vote stitute, as modified, as amended. Baldacci Hall (OH) Owens The committee amendment in the ``No'' on the Campbell ``nondiscrimination pro- Barcia Hamilton Pallone nature of a substitute, as modified, as vision'' amendment. This is an obscure meas- Barrett (NE) Harman Pascrell Barrett (WI) Hefner Pastor amended, was agreed to. ure that serves only to raise more questions Barton Hinchey Payne Mr. VENTO. Mr. Chairman, I rise today in and puts current statues at risk. Becerra Hinojosa Pelosi Mr. Chairman, I yield back the bal- Bentsen Holden Peterson (MN) support of the Higher Education Reauthoriza- ance of my time. Berman Hooley Pickett tion Act. As a longtime advocate of edu- Berry Houghton Pomeroy cational opportunities for Americans, I have The CHAIRMAN. The question is on Bishop Hoyer Poshard the amendment offered by the gen- Blagojevich Jackson (IL) Price (NC) advocated and fought to ensure that access to quality education and solid job training skills is tleman from California (Mr. CAMP- Blumenauer Jackson-Lee Pryce (OH) Boehlert (TX) Quinn more than a pipedream for working families. BELL). Bonilla Jefferson Rahall Although there are several facets of this legis- The question was taken; and the Bonior John Rangel Chairman announced that the noes ap- Borski Johnson (CT) Redmond lation, there are a few issues in particular that peared to have it. Boswell Johnson (WI) Reyes I would like to highlight. As we prepare to Boucher Johnson, E. B. Rivers enter the 21st Century, America needs smart RECORDED VOTE Boyd Kanjorski Rodriguez Brown (CA) Kaptur Roemer tools, smart technology and most of all a very Mr. CAMPBELL. Mr. Chairman, I de- Brown (FL) Kelly Rothman smart workforce to maintain our competitive mand a recorded vote. Brown (OH) Kennedy (MA) Roybal-Allard edge. A recorded vote was ordered. Burr Kennedy (RI) Rush As we approach the turn of the century, it is The vote was taken by electronic de- Capps Kennelly Sabo Cardin Kildee Sanchez more important than ever to ensure that stu- vice, and there were—ayes 189, noes 227, Castle Kilpatrick Sanders dents have access to the resources they need not voting 16, as follows: Clay Kind (WI) Sandlin to pursue a postsecondary education. I [Roll No. 134] Clayton Kleczka Sawyer Clement Klink Saxton worked my own way through college years AYES—189 Clyburn Kucinich Schumer ago, it was hard than and is more difficult Aderholt Duncan King (NY) Condit LaFalce Scott today. I know that today times have changed Archer Dunn Kingston Conyers LaHood Serrano and without adequate assistance through pro- Costello Lampson Shays Armey Ehrlich Klug grams like work study, grants, and loans most Bachus Emerson Knollenberg Coyne Lantos Sherman Baesler Everett Kolbe Cramer LaTourette Sisisky students would not be able to complete their Baker Fawell Latham Cummings Leach Skeen college education no matter their willness to Ballenger Foley Lazio Danner Lee Skelton work full time as many did in a previous expe- Barr Fossella Lewis (CA) Davis (FL) Levin Slaughter Bartlett Fowler Lewis (KY) Davis (IL) Lewis (GA) Smith (MI) rience. Added to this is the fact that today Bass Franks (NJ) Linder DeFazio Lofgren Smith, Adam most entry-level jobs barely pay a living wage, Bereuter Frelinghuysen Lipinski DeGette Lowey Snyder which is not enough anymore to fund today's Delahunt Luther Souder Bilbray Gallegly Livingston higher tuition rates, the costs of books, and Bilirakis Ganske LoBiondo DeLauro Maloney (CT) Spratt Bliley Gekas Lucas Deutsch Maloney (NY) Stabenow living expenses. This legislation could and Blunt Gilchrest Manzullo Diaz-Balart Manton Stark should ensure that monetary aid would be Boehner Gillmor McCollum Dicks Markey Stenholm available to keep the doors open to all stu- Bono Goodlatte McCrery Dingell Martinez Stokes Brady Goodling McDade Dixon Mascara Strickland dents who otherwise would not have the re- Bryant Goss McHugh Doggett Matsui Stupak sources to fund higher education opportuni- Bunning Graham McInnis Dooley McCarthy (MO) Tanner ties. Edwards McCarthy (NY) Tauscher Burton Granger McIntosh The Pell grants increases and special loan Buyer Greenwood McKeon Ehlers McDermott Thompson Callahan Gutknecht Metcalf Engel McGovern Thurman programs included in this measure H.R. 6 are Calvert Hall (TX) Mica English McHale Tierney the vehicles which and have demonstrated Camp Hansen Miller (FL) Ensign McIntyre Torres Eshoo McKinney Towns their effectiveness and help to meet the need Campbell Hastert Moran (KS) of today and tomorrow's students. Another Canady Hastings (WA) Moran (VA) Etheridge Meehan Traficant Cannon Hayworth Myrick Evans Meek (FL) Turner special aspect to highlight and which I feel is Chabot Hefley Nethercutt Ewing Meeks (NY) Velazquez crucial to the competitiveness of our nation is Farr Menendez Vento Chambliss Herger Northup technology training. H.R. 6 speaks specifically Chenoweth Hill Norwood Fattah Millender- Visclosky Coble Hilleary Oxley Fazio McDonald Walsh to this goal by providing funding for programs Coburn Hobson Packard Filner Miller (CA) Waters designed to promote such initiatives. As tech- Collins Hoekstra Pappas Forbes Minge Watt (NC) Ford Mink Watts (OK) nology advances and touches so many areas Combest Horn Parker of our livesÐfrom the workplace to the mar- Cook Hostettler Paul Fox Moakley Waxman Cooksey Hulshof Paxon Frank (MA) Mollohan Wexler ketplace to the classroomÐit is increasingly Cox Hunter Pease Frost Morella Weygand imperative that today's teachers receive the Furse Murtha Wise Crane Hutchinson Peterson (PA) training to effectively teach students not only Crapo Hyde Petri Gejdenson Nadler Woolsey Cubin Inglis Pickering Gephardt Neal Wynn rudimentary computer skills, but how to em- Cunningham Istook Pitts Gibbons Ney ploy these skills effectively in accessing edu- Davis (VA) Jenkins Pombo Gilman Nussle cational resources. Deal Johnson, Sam Porter According to the Education Testing Service DeLay Jones Portman NOT VOTING—16 Doolittle Kasich Ramstad Bateman Christensen Doyle Assessment, most teachers have been in the Dreier Kim Regula Carson Dickey Gonzalez workforce since before the computer age. H2918 CONGRESSIONAL RECORD — HOUSE May 6, 1998 Shockingly, 90 percent of new teachers, the control of higher education is demonstrated by tionable are those mandating that campuses majority of whom one might assume have numerous provisions in HR 6. Clearly, federal report incidents of arson and report students grown up with computersÐparticularly during funding is being used as an excuse to tighten referred to disciplinary action on drug and al- their years of higher educationÐdo not feel the federal noose around both higher and ele- cohol charges. These officials are concerned prepared to use or effectively teach tech- mentary education. these expanded requirements will lead to the nology skills in their classrooms. Just as a dic- Federal spending, and thus federal control, reporting of minor offenses, such as lighting a tionary may not be used as a resource by are dramatically increased by HR 6. The entire fire in a trash can or a 19-year-old student someone who is unable to read, computers in bill has been scored as costing approximately caught in his room with a six-pack of beer as our classrooms are only useful when teachers $101 billion dollars over the next five years; an campus crimes, thus, distorting the true pic- are able to understand how they work and increase of over 10 billion from the levels a ture of the criminal activity level occurring as confidently apply this know-how in the class- Democrat Congress Congress authorize for campus. room. The Higher Education Act recognizes Higher Education programs in 1991!. Of The association also objects to the require- this problem and provides for programs de- course, actual spending for these programs ment that campus make police and security signed to implement the integration of tech- may be greater, especially if the country expe- logs available to the general public within two nology into teaching and learning. I'm pleased riences an economic downturn which in- business days as this may not allow for an in- to have helped initiate this policy in legislation creases the demand for federally-subsidized telligent interpretation of the impact of the which I've co-sponsored this session. student loans. availability of the information and may com- I specifically voice my opposition to the Mr. Chairman, one particular objectionable promise an investigation, cause the destruc- Riggs amendment which attempts to eliminate feature of the Higher Education Amendments tion of evidence, or the flight of an accomplice. affirmative action this amendment over is that this act creates a number of new fed- Furthermore, reporting the general location, reaches and would bar any legal initiative to eral programs, some of which where added to date, and time for a crime may identify victims achieve diversity in our higher education insti- the bill late at night when few members where against their will in cases of sexual assault, tutions, its wrong and ought to be defeated. present to object. drug arrests, and burglary investigations. The The bottom line is that Americans must have The most objectionable program is ``teacher informed views of those who deal with campus education and training they can afford, for the training.'' The Federal Government has no crime on a daily basis should be given their jobs and futures they merit and it must em- constitutional authority to dictate, or ``encour- constitutional due rather than dictating to them brace the diversity of four US populace. With- age,'' states and localities to adopt certain the speculations of those who sit in Washing- out educational opportunities, America's chil- methods of education. Yet, this Congress is ton and presume to mandate a uniform report- dren face a future of lower employment, lower preparing to authorize the federal government ing system for campus crimes. productivity, lower aspirations, and ultimately, to bribe states, with monies the federal gov- Another offensive provision of the campus a lower standard of living. This is certainly no ernment should never have taken from the crime reporting section of the bill that has way to prepare for a new Century. The federal people in the first place, to adopt teacher raised concerns in the higher education com- government, prompted by Congress, can and training methods favored by a select group of munity is the mandate that any campus dis- will make a difference in meeting the chal- DC-based congressmen and staffers. ciplinary proceeding alleging criminal mis- lenge of change. By supporting higher edu- As HR 6 was being drafted and marked-up, conduct shall be open. This provision may dis- cation, we are investing in people, our nation's some Committee members did attempt to pro- courage victims, particularly women who have most valuable natural resource. tect the interests of the taxpayers by refusing been sexually assaulted, from seeking redress Mr. PAUL. Mr. Chairman, Congress should to support authorizing this program unless the through a campus disciplinary procedures for reject HR 6, the Higher Education Amend- spending was offset by cuts in other pro- fear they will be put ``on display.'' For exam- ments of 1998 because it furthers the federal grams. Unfortunately, some members who ple, in a recent case, a student in Miami Uni- stranglehold over higher education. Instead of might have otherwise opposed this program versity in Ohio explained that she chose to furthering federal control over education, Con- supported it at the Committee mark-up be- seek redress over a claim of sexual assault ``* gress should focus on allowing Americans to cause of the offset. * * through the university, rather than the devote more of their resources to higher edu- While having an offset for the teacher train- county prosecutor's office, so that she could cation by dramatically reducing their taxes. ing program is superior to authorizing a new avoid the publicity and personal discomfort of There are numerous proposals to do this be- program, at least from an accounting perspec- a prosecution * * *'' Assaulting the privacy fore this Congress. For example, the Higher tive, supporting this program remains unac- rights of victimized students by taking away Education Affordability and Availability Act (HR ceptable for two reasons. First of all, just be- the option of a campus disciplinary proceeding 2847), of which I am an original cosponsor, al- cause the program is funded this year by re- is not only an unconstitutional mandate but im- lows taxpayers to deposit up to $5,000 per duced expenditures is no guarantee the same moral. year in a pre-paid tuition plan without having formula will be followed in future years. In fact, This bill also contains a section authorizing to pay tax on the interest earned, thus ena- given the trend toward ever-higher expendi- special funding for programs in areas of so- bling more Americans to afford college. This is tures in federal education programs, it is likely called ``national need'' as designated by the just one of the many fine proposals to reduce that the teacher training program will receive Secretary of Education. This is little more than the tax burden on Americans so they can af- new funds over and above any offset con- central planning, based on the fallacy that om- ford a higher education for themselves and/or tained in its authorizing legislation. nipotent ``experts'' can easily determine the their children. Other good ideas which I have Second, and more importantly, the 10th correct allocation of education resources. supported are the PASS A+ accounts for high- amendment does not prohibit federal control of However, basic economies teaches that a bu- er education included in last year's budget, education without an offset, it prohibits all pro- reaucrat in Washington cannot determine and the administration's HOPE scholarship grams that centralize education regardless of ``areas of national need.'' The only way to proposal, of which I was amongst the few how they are funded. Savings from defunded know this is through the interaction of stu- members of the majority to champion. Al- education programs should be used for edu- dents, colleges, employers, and consumers though the various plans I have supported dif- cation tax cuts and credits, not poured into operating in a free-market, where individuals fer in detail, they all share one crucial ele- new, unconstitutional programs. can decide what higher education is deserving ment. Each allows individuals the freedom to Another unconstitutional interference in of expending additional resources as indicated spend their own money on higher education higher education within HR 6 is the provision by employer workplace demand. rather than forcing taxpayers to rely on Wash- creating new features mandates on institutes Mr. Chairman, the Higher Education Amend- ington to return to them some percentage of of higher education regarding the reporting of ments of 1998 expand the unconstitutional their tax dollars to spend as bureaucrats see criminal incidents to the general public. Once role of the federal government in education by fit. again, the federal government is using its increasing federal control over higher edu- Federal control inevitably accompanies fed- funding of higher education to impose uncon- cation, as well as creating a new teacher train- eral funding because politicians cannot exist stitutional mandates on colleges and univer- ing program. This bill represents more of the imposing their preferred solutions for per- sities. same, old ``Washington knows best'' philoso- ceived ``problems'' on institutions dependent Officials of the Texas-New Mexico Associa- phy that has so damaged American education upon taxpayer dollars. The prophetic sound- tion of College and University Police Depart- over the past century. Congress should there- ness of those who spoke out against the cre- ments have raised concerns about some of fore reject this bill and instead join me in work- ation of federal higher education programs in the new requirements in this bill. Two provi- ing to defund all unconstitutional programs the 1960s because they would lead to federal sions the association finds particularly objec- and free Americans from the destructive tax May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2919 and monetary policies of the past few dec- recognizes the high cost of child care and the available to institutions to help link the assets ades, thus making higher education more impact it has on the overall resources a parent of institutions such as Portland State Univer- readily available and more affordable for mil- has to attend school. sity, attended by many of my constituents, to lions of Americans. In another effort to assist students with the needs of urban communities. This program Mrs. MINK of Hawaii. Mr. Chairman, I rise young children, the bill authorizes $30 million is the only one in the Department of Education today in support of H.R. 6 which reauthorizes for a new program to establish child care cen- that speaks directly to urban institutions and the Higher Education Act of 1965. ters on college campuses. Also, I understand has made a real difference for those institu- Like the G.I. bill which provided a college the Chairman of the Committee has agreed to tions throughout the country. opportunity to the returning WWII vets, the include in his manager's amendment a grants PSU's project is community-based and fo- Higher Education Act has done more to ex- for campus crime prevention. Unfortunately, cuses on urban ecosystems. It serves more pand post-secondary education than any other women on college campuses are victims of than 1,000 schoolchildren and demonstrates factor in our educational system or in society. violent crimes all to often. It is the responsibil- that learning the basics about mathematics, The decision by the Congress in 1965 to ity of the institution to assist in making college science, and social studies can involve ``real make a college education a national priority safe for women. This grant program will assist work'' experiences through community service has contributed to the economic success of in that effort. learning. In this project, curriculum topics arise our nation. Literally millions of students have Of particular concern to the University of from real issues identified by people in the been able to attain a college degree because Hawaii is the International Education programs community. As a result, students perceive of the federal grant and student loan programs in Title VI of this bill. I am pleased we were their classroom experiences as relevant and authorized by the Higher Education Act. Most able to work out a compromise on the issue are more motivated to participate in edu- importantly these programs are targeted to of including both the International Education cational activities. disadvantaged students who would have no and Graduate Education programs in the Some examples of the work students per- alternative means of paying for a college edu- same Title. The International Programs appear formed include: cation. in a separate Part to make clear that there is Building and monitoring bird boxes for the H.R. 6 continues the goal of expanding edu- no intention of consolidation of these pro- Oregon Department of Fish and Wildlife; cational opportunity for all students, it lowers grams. International education plays an in- Discussing Portland's infamous combined the cost of borrowing under the student loan creasingly important role in our society and we sewage overflow problem with residents and program, expands early intervention efforts must prepare our students to work in a global disconnection of downspouts to help alleviate and includes provisions to address the special society. the problem; and needs of women students. Though I am in support of this bill, there are Planting and maintaining a butterfly and bird The cornerstone of the Higher Education provisions that cause grave concernÐspecifi- garden. Act is the Pell Grant program which provides cally the elimination of the Patricia Roberts Parents, the business community, local gov- up to $3,000 to help low-income students pay Harris Fellowship which is designed to give ernment, and nonprofit organizations are in- for college. The bill continues the commitment women and minorities with significant financial volved in and contribute to the program's suc- to the Pell Grant program by raising the au- need opportunities in graduate education, par- cess. Volunteers work with students in an thorized level of the maximum Pell Grant ticularly in the fields of study that women and urban ecosystems environment to apply the award from $3,000 in the school year 1998± minorities have traditionally been under rep- fundamentals of science and math to projects 99 to $5,100 by the year 2002. resented such as the engineering and that make a difference to the community. This The agreement reached on the student loan sciences. program is unique because it addresses mid- interest rate assures that the cost of borrowing Although the committee intends this pro- dle school childrenÐthose who are at an age student loans will be greatly reduced for stu- gram to be consolidated in the Graduate As- when they will either succeed or fail in dents. The new interest rate will be around sistance Areas of National Need or GAANN schoolÐand their families. 5.83% in 1998 for a student in school and a program, I note that the GAANN program as Second, I strongly support the Federal Fi- rate of around 7.43% for a student in repay- amended by this bill has no component which nancial aid provisions in the bill. I am pleased ment. The agreement also assures that finan- assists women and minorities in fields in which the bill ``fixes'' the independent student eligi- cial institutions will continue to participate in they are under represented. The GAANN pro- bility for Pell Grant issue. Last year's revisions the student loan program so that students will gram if focused on provided assistance to to the tax code made one thing clearÐaccess have access to student loans through a variety those individuals who pursue fields of study in to higher education is key to the nation's abil- of lenders. which there is a national need for more stu- ity to maintain economic competitiveness. Early intervention is also a key component dents. It has no focus on women or minority Even more needs to be done to encourage of this legislation. We all know the benefits of students. This is something I hope we can those without financial resources to attend col- existing programs such as TRIO, which as- work out in conference. lege. As Oregon's primary urban university, sists at-risk high school students in achieving Mr. Chairman, this bill moves us forward in Portland State University serves many stu- the academic tools necessary to attend col- expanding educational opportunities for our dents who are independent or who have little lege and providing support services such as students. There has been much effort to make or no family resources for a college education. tutoring and mentoring once they are in col- this a bi-partisan bill that everyone can be At PSU, Federal financial aid means access. lege to assure that they will stay in school. proud of. I urge my colleagues to support the About 8,000 of our students receive financial H.R. 6 includes a strong commitment to the reauthorization of the Higher Education Act. aid, that's more than half of the student popu- TRIO program by increasing the authorization Mr. BLUMENAUER. Mr. Chairman, I rise lation. Clearly, more financial aid will mean to $800 million. Currently TRIO programs are today in support of the Higher Education more students will attend college. funded at $530 million. We now have a goal Amendments of 1998, H.R. 6, and the tremen- I also support the bill's position on lowering to fund this program at its full $800 million au- dous help this bill will provide to our nation's the interest rate on Student loans. PSU stu- thorization level, so that we can expand pro- higher education system. The students of dents are increasing their indebtedness to get grams to reach those areas that do not have today will be the leaders of tomorrow, and we a college degree. Since 1986±87, student bor- the benefit of TRIO. owe it to them to provide the best possible op- rowing at PSU has increased from $7.7 million We also added an important component to portunities for furthering their education be- to $43.9 million. This is due to a number of our early intervention efforts in the adoption of yond high school. In the global economy of factorsÐthe cost of education has risen, fund- the High Hopes program, a Clinton Adminis- today, our children will need more and better ing for grants has not keep pace with inflation, tration initiative which will fund a variety of skills to compete with their counterparts from and loans are now available primarily to mid- early intervention efforts in middle schools in around the world. Congress can significantly dle and upper income students. Although low income areas. This program will help help this effort by providing low-cost loans, loans are made available to families who don't close the gap between college enrollment more scholarship opportunities, and programs have savings or other resources for higher among higher income families and low income that encourage partnerships among all levels education, soaring amounts of debt are still families. of government and educational institutions. placed on our students. The high level of in- H.R. 6 also includes provisions designed There are a few provisions in H.R. 6 I would debtedness now associated with attending col- specifically to address the needs of women like to mention specifically that relate to the lege is of concern to both myself and my con- students. The bill increases the allowance for third district of Oregon which I represent. First stituents. child care expenses in a student's cost of at- is the Urban Community Service Grant pro- I also support continued funding of the State tendance from $750 to $1,500. This provision gram. Under this program, funds are made student Incentive Grants (SSIG) program. This H2920 CONGRESSIONAL RECORD — HOUSE May 6, 1998 program is important because it provides [Roll No. 135] Parker Salmon Talent Pascrell Sanchez Tanner needed financial aid dollars to low- and work- YEAS—414 Pastor Sanders Tauscher ing class students and it leverages state Paxon Sandlin Tauzin Abercrombie Doggett Kaptur Payne Sanford Taylor (MS) funds. While the Federal SSIG funds have de- Ackerman Dooley Kasich Pease Sawyer Taylor (NC) clined, the Federal match is needed to help Aderholt Doolittle Kelly Pelosi Saxton Thomas Allen Dreier Kennedy (MA) states maintain their commitment to providing Peterson (MN) Scarborough Thompson Andrews Duncan Kennedy (RI) state aid for students. At a time when states Peterson (PA) Schumer Thornberry Archer Dunn Kennelly are facing tight budgets, the Federal match Petri Scott Thune Armey Edwards Kildee Pickering Sensenbrenner Thurman has prevented cuts in the states' share of fi- Bachus Ehlers Kilpatrick Pickett Serrano Tiahrt nancial aid. It has often made the difference to Baesler Ehrlich Kim Pitts Sessions Tierney Baker Emerson Kind (WI) Pombo Shadegg Torres state legislatures around the country looking Baldacci Engel King (NY) for ways to trim budgets. Pomeroy Shaw Towns Ballenger English Kingston Porter Shays Traficant However, I am concerned about any provi- Barcia Ensign Kleczka Portman Sherman Turner sion added to the bill which would have the Barr Eshoo Klink Poshard Shimkus Upton Barrett (NE) Etheridge Klug federal government interfere with the ability of Price (NC) Sisisky Velazquez Barrett (WI) Evans Knollenberg Pryce (OH) Skeen Vento colleges and universities to choose students Bartlett Everett Kolbe Quinn Skelton Visclosky as they see fit, regardless of their racial or Barton Ewing Kucinich Rahall Slaughter Walsh ethnic heritage. The Congress should take Bass Farr LaFalce Ramstad Smith (MI) Wamp Becerra Fattah LaHood Rangel Smith (NJ) Waters every precaution to not interfere into policies Bentsen Fawell Lampson Redmond Smith (OR) Watkins of this nature. Admissions policies that take Bereuter Fazio Lantos Regula Smith (TX) Watt (NC) into account racial, ethnic and gender actors Berman Filner Largent Reyes Smith, Adam Watts (OK) Berry Foley Latham have widely been recognized as constitutional Riggs Smith, Linda Waxman Bilbray Forbes LaTourette Riley Snowbarger Weldon (FL) by the Supreme Court, and should not be sub- Bilirakis Ford Lazio Rivers Snyder Weldon (PA) ject to further Congressional meddling. I am Bishop Fossella Leach Rodriguez Solomon Weller hopeful this bill is passed without such harmful Blagojevich Fowler Lee Roemer Souder Wexler Bliley Fox Levin Rogan Spence Weygand provisions. Blumenauer Frank (MA) Lewis (GA) Rogers Spratt White Mr. Chairman, this bill will go a long way to- Blunt Franks (NJ) Lewis (KY) Rohrabacher Stabenow Whitfield wards addressing many students' needs in Boehlert Frelinghuysen Linder Ros-Lehtinen Stark Wicker Boehner Frost Lipinski Rothman Stearns Wise their pursuit of a college degree. It is the least Bonilla Furse Livingston Roukema Stenholm Wolf we can do to prepare our children for the de- Bonior Gallegly LoBiondo Roybal-Allard Stokes Woolsey mands they will face in the real world. I urge Bono Ganske Lofgren Royce Strickland Wynn Borski Gejdenson Lowey my colleagues to support H.R. 6, and hope for Rush Stump Young (AK) Boswell Gekas Lucas Ryun Stupak Young (FL) the bill's speedy passage by the House. Boucher Gephardt Luther Sabo Sununu The CHAIRMAN. Under the rule, the Boyd Gibbons Maloney (CT) Brady Gilchrest Maloney (NY) NAYS—4 Committee rises. Brown (CA) Gillmor Manton Campbell Paul Accordingly, the Committee rose; Brown (FL) Gilman Manzullo Crane Schaffer, Bob and the Speaker pro tempore (Mr. Brown (OH) Goode Markey Bryant Goodlatte Martinez NOT VOTING—14 GILCHREST) having assumed the chair, Bunning Goodling Mascara Bateman Hastings (FL) Schaefer, Dan Mr. GUTKNECHT, Chairman of the Com- Burr Gordon Matsui Carson Lewis (CA) Shuster mittee of the Whole House on the State Burton Goss McCarthy (MO) Christensen McNulty Skaggs of the Union, reported that that Com- Buyer Graham McCarthy (NY) Doyle Neumann Yates Callahan Granger McCollum Gonzalez Radanovich mittee, having had under consideration Calvert Green McCrery the bill (H.R. 6) to extend the author- Camp Greenwood McDade b 2255 ization of programs under the Higher Canady Gutierrez McDermott Cannon Gutknecht McGovern So the bill was passed. Education Act of 1965, and for other Capps Hall (OH) McHale The result of the vote was announced purposes, pursuant to House Resolution Cardin Hall (TX) McHugh as above recorded. 411, he reported the bill back to the Castle Hamilton McInnis A motion to reconsider was laid on Chabot Hansen McIntosh House with an amendment adopted by Chambliss Harman McIntyre the table. the Committee of the Whole. Chenoweth Hastert McKeon f Clay Hastings (WA) McKinney The SPEAKER pro tempore. Under AUTHORIZING THE CLERK TO the rule, the previous question is or- Clayton Hayworth Meehan Clement Hefley Meek (FL) MAKE CORRECTIONS IN EN- dered. Clyburn Hefner Meeks (NY) GROSSMENT OF H.R. 6, HIGHER Is a separate vote demanded on any Coble Herger Menendez Coburn Hill Metcalf EDUCATION AMENDMENTS OF amendment to the Committee amend- Collins Hilleary Mica 1998 ment in the nature of a substitute Combest Hilliard Millender- Mr. MCKEON. Mr. Speaker, I ask adopted by the Committee of the Condit Hinchey McDonald unanimous consent that in the engross- Whole? If not, the question is on the Conyers Hinojosa Miller (CA) Cook Hobson Miller (FL) ment of the bill, H.R. 6, the Clerk be amendment. Cooksey Hoekstra Minge authorized to make technical correc- The amendment was agreed to. Costello Holden Mink Cox Hooley Moakley tions and conforming changes to the The SPEAKER pro tempore. The Coyne Horn Mollohan bill. question is on the engrossment and Cramer Hostettler Moran (KS) The SPEAKER pro tempore (Mr. third reading of the bill. Crapo Houghton Moran (VA) LATHAM). Is there objection to the re- Cubin Hoyer Morella The bill was ordered to be engrossed Cummings Hulshof Murtha quest of the gentleman from Califor- and read a third time, and was read the Cunningham Hunter Myrick nia? third time. Danner Hutchinson Nadler There was no objection. Davis (FL) Hyde Neal f The SPEAKER pro tempore. The Davis (IL) Inglis Nethercutt question is on the passage of the bill. Davis (VA) Istook Ney GENERAL LEAVE The question was taken; and the Deal Jackson (IL) Northup Mr. MCKEON. Mr. Speaker, I ask Speaker pro tempore announced that DeFazio Jackson-Lee Norwood DeGette (TX) Nussle unanimous consent that all Members the ayes appeared to have it. Delahunt Jefferson Oberstar may have 5 legislative days within Mr. GOODLING. Mr. Speaker, on that DeLauro Jenkins Obey DeLay John Olver which to revise and extend their re- I demand the yeas and nays. Deutsch Johnson (CT) Ortiz marks and include extraneous material The yeas and nays were ordered. Diaz-Balart Johnson (WI) Owens on H.R. 6. The vote was taken by electronic de- Dickey Johnson, E. B. Oxley The SPEAKER pro tempore. Is there Dicks Johnson, Sam Packard vice, and there were—yeas 414, nays 4, Dingell Jones Pallone objection to the request of the gen- not voting 14, as follows: Dixon Kanjorski Pappas tleman from California? May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2921 There was no objection. sess where we are and what that of higher learning. We defeated Propo- f means. I am very pleased that the de- sition A in Houston recognizing that bate was not acrimonious but it was once you understood what affirmative APPOINTMENT OF ADDITIONAL truthful. It expresses, I think, the over- action actually stands for, affirma- CONFEREES ON H.R. 2400, BUILD- all commitment of this House to what tively acting, affirmatively reaching ING EFFICIENT SURFACE TRANS- really is equal opportunity and par- out, affirmatively ensuring equal op- PORTATION AND EQUITY ACT OF ticularly in higher education. portunity, that most Americans will 1998 Many times as we have debated the join hands united in recognizing that The SPEAKER pro tempore. Without questions of affirmative action and this is the right way to go. I, too, join objection, the Chair announces the equal opportunity, many voices would in the words of Dr. Martin Luther Speaker’s appointment of the following raise in citation of the words of Dr. King. I wish for a society in which all conferees on H.R. 2400. Martin Luther King, that we should be of us are judged by the content of our As additional conferees from the judged not by the color of our skin but character. But I do not believe that be- Committee on the Budget, for consider- by the character within. Those words cause you come from a Hispanic back- ation of title VII and title X of the distort the value and the purpose of af- ground, an African-American back- House bill and modifications commit- firmative action and equal oppor- ground, because you are a woman, be- ted to conference: tunity. For there is no doubt that we cause you come from a rural back- all strive to an even playing field. That Messrs. PARKER, RADANOVICH, and ground and you need an extra measure even playing field has not arrived, for SPRATT. of help that that in any way diminishes There was no objection. those who would argue that an amend- your character, suggests that you are The SPEAKER pro tempore. The ment that would eliminate the ability not being judged by your character but Clerk will notify the Senate of the to outreach and affirmatively act upon in fact the color of your skin is nega- change in conferees. recruiting and soliciting minority stu- tive and so you are being reached out dents and women to institutions of to because of something negative rath- f higher learning deny the existence of er than something positive. PERSONAL EXPLANATION past discrimination and existing dis- Mr. Speaker, I simply hope that time crimination. after time these kinds of amendments Mr. DAVIS of Illinois. Mr. Speaker, I The Riggs amendment and the Camp- reach the floor of the House, we will was unavoidably detained in my dis- bell amendment were likewise mis- recognize that the right way to go is to trict yesterday, May 5, due to official directed and distorted. My good col- some day to reach a point in America business. As a result, I missed rollcall league from California rose to the floor where there is no discrimination vote numbers 122 through 126. of the House and cited an example of against Native Americans and His- However, had I been present, I would the SAT scores. He started with a score panics, African-American, Asians, have voted no on rollcall 122; aye on in an Asian student that may have had whites, women, but we have not rollcall number 123; aye on rollcall a score of 760. He cited the score of a reached that point. number 124; aye on rollcall number 125; white student, an Hispanic student, These amendments take away from and aye on rollcall number 126. and he concluded with a score of an Af- what the full promise of this country f rican-American student of 510 on the stands for. I will always stand against SATs. With that pronouncement, he them, I will argue with my colleagues b 2300 proceeded to discuss the fact of why and respect them for their difference, SPECIAL ORDERS there should be any extra special effort but each day I will demand that this The SPEAKER pro tempore (Mr. to ensure that those students who did House do the right thing. not have the higher scores be able to As I do that, Mr. Speaker, let me also GILCHREST). Under the Speaker’s an- nounced policy of January 7, 1997, and attend institutions of higher learning. simply conclude by saying I want to under a previous order of the House, I have an answer for him. What is the join very briefly the gentleman from ONYERS) in his opposi- the following Members will be recog- high moral ground? What does this Michigan (Mr. C tion and concern finally for what I nized for 5 minutes each. country stand for? Does it suggest that students who do not have the money to think have been misguided efforts and f pay to go to institutions of higher directions in investigations dealing The SPEAKER pro tempore. Under a learning should become or remain with both Webb Hubbell, Ms. McDougal previous order of the House, the gen- uneducated, foolish, untrainable, the and the whole proceedings investigat- tleman from Illinois (Mr. RUSH) is rec- door of opportunity should be closed? ing the President. ognized for 5 minutes. Does it mean those students who live f (Mr. RUSH addressed the House. His in rural America who might have a The SPEAKER pro tempore. Under a remarks will appear hereafter in the hard time getting transportation to in- previous order of the House, the gen- Extensions of Remarks.) stitutions of higher learning, the door tleman from Michigan (Mr. SMITH) is f should be closed? In every instance, we recognized for 5 minutes. reach out to try to help those who need The SPEAKER pro tempore. Under a (Mr. SMITH of Michigan addressed the extra help, to get the promise of previous order of the House, the gen- the House. His remarks will appear what America stands for. Both the tleman from Oklahoma (Mr. ISTOOK) is hereafter in the Extensions of Re- Riggs amendment and the Campbell recognized for 5 minutes. marks.) amendment missed the boat on what is f (Mr. ISTOOK addressed the House. right and what is the high moral The SPEAKER pro tempore. Under a His remarks will appear hereafter in ground. previous order of the House, the gen- the Extensions of Remarks.) We will continue to have these de- tleman from Texas (Mr. GREEN) is rec- f bates. We have an election in Seattle. ognized for 5 minutes. We recently had an election in Hous- AFFIRMATIVE ACTION ton, Texas where they were attempting (Mr. GREEN addressed the House. His The SPEAKER pro tempore. Under a to eliminate the affirmative action remarks will appear hereafter in the previous order of the House, the gentle- provisions in minority and small and Extensions of Remarks.) woman from Texas (Ms. JACKSON-LEE) women-owned businesses. We have had f is recognized for 5 minutes. one in California. Unfortunately it was, The SPEAKER pro tempore. Under a Ms. JACKSON-LEE of Texas. Mr. I think, misconstrued by the voters previous order of the House, the gen- Speaker, I think it is important after and Proposition 209 passed. But the tleman from Minnesota (Mr. GUT- the conclusion of today’s debate on the tragedy of Proposition 209 is evidenced KNECHT) is recognized for 5 minutes. Higher Education Act and specifically by the sizable diminishing of those stu- (Mr. GUTKNECHT addressed the the debate that we had on both the dents from Hispanic and African-Amer- House. His remarks will appear here- Riggs and Campbell amendment to as- ican backgrounds going to institutions after in the Extensions of Remarks.) H2922 CONGRESSIONAL RECORD — HOUSE May 6, 1998 The SPEAKER pro tempore. Under a very efficiency that Congress should be humiliate Mr. Hubbell because of his previous order of the House, the gen- encouraging. Last year I was one of prior association with the Clinton ad- tleman from Texas (Mr. BENTSEN) is only a handful of Members to vote ministration. recognized for 5 minutes. against the Medicare budget provi- Have we really reached the point (Mr. BENTSEN addressed the House. sions, not because I opposed meaning- where we think it is appropriate to His remarks will appear hereafter in ful reforms in the Medicare program, publicly broadcast intimate conversa- the Extensions of Remarks.) but because, among other reasons, I op- tions, most of which have nothing to f posed a payment system which re- do with the allegations of campaign fi- warded waste and punished efficiency. nance violations, between a man and CHANGES IN MEDICARE DECIMATE I urge my colleagues in the House to his wife? If we are concerned about KANSAS HOME HEALTH CARE join me in calling for an immediate re- family values, Congress should support PROVIDERS view of the home health care provi- the privacy of marital relationships, The SPEAKER pro tempore. Under a sions in the Balanced Budget Act and not make them public. previous order of the House, the gen- to take action necessary to remedy Mr. Speaker, I yield to the gentleman tleman from Kansas (Mr. MORAN) is this crisis. Yesterday legislation was from Pennsylvania. recognized for 5 minutes. introduced in the Senate to limit the Mr. KANJORSKI. I would say to the Mr. MORAN of Kansas. Mr. Speaker, surety bond requirements to new agen- gentleman from Michigan, we know I rise this evening to address an issue cies while strengthening protection that in prior Congresses you had the of critical importance to people of Kan- and oversight for fraud, waste and occasion to chair this committee of the sas and really the entire country. Sev- abuse, and legislation has been intro- House. Can you tell us from your per- eral provisions buried in last year’s duced in both Houses to modify the in- sonal experience of having served in Medicare bill are decimating home terim payment system and provide the Congress more than 30 years any health care providers in Kansas and needed relief for home health care pro- recollection on your part of the con- jeopardizing access to critical health viders. duct of this particular chairman of this care services to the sick and elderly in Mr. Speaker, these are the real re- committee in the investigation of such rural America. forms that the Medicare home health a serious matter? Last year, in the effort to reduce care program desperately needs. I urge Mr. CONYERS. Well, we do not have spending, Congress made three crip- my colleagues to reconsider this issue. enough time to discuss the conduct of pling changes to Medicare reimburse- f the chairman of the committee, but I ment rates and regulations for home can tell you that never in any commit- health care providers. First, the new b 2310 tee can I recall to the Members of the interim payment system has slashed CHAIRMAN BURTON APOLOGIZES body that we went into privacy and reimbursements to all agencies and is FOR HANDLING OF HUBBELL violated the spirit of privacy laws in particularly discriminatory to agencies TAPES BUT REFUSES TO ADMIT the way that they have been done now. who have historically been the lowest ERROR And there was a curious coincidence cost, most efficient providers. between the release of information Second, the unrealistic requirements The SPEAKER pro tempore (Mr. from the special prosecutor and the re- that all agencies, regardless of size, ob- GILCHREST). Under a previous order of lease of these tapes. The chairman, a tain $50,000 surety bond has been dev- the House, the gentleman from Michi- friend, his own chief counsel, advised astating. These bonds are expensive for gan (Mr. CONYERS) is recognized for 5 him not to release the tapes, but he did many agencies and generally unavail- minutes. so anyway. The Speaker of the House able in most parts of the country. Even Mr. CONYERS. Mr. Speaker, today of Representatives publicly stated that the Small Business Administration has we have learned that the Chairman of a third party should screen the tapes acknowledged that there are great dif- the House Committee on Government for privacy issues before further re- ficulties that many small agencies are Reform and Oversight has fired his leases were made. What did the com- experiencing in obtaining these bonds. chief investigator and apologized to his mittee do? It continued to release more Finally, the loss of venipuncture re- fellow Republicans for any embarrass- tapes. imbursement has added to the financial ment caused by his actions in releasing So almost daily, the impression con- difficulties resulting in the closure of distorted summaries of telephone con- tinues to grow that the gentleman many agencies across the country, in- versations between Mr. Hubbell and his from Indiana (Mr. BURTON) or his com- cluding Kansas. In our efforts to cur- wife. mittee is simply out of control. If the tail fraud and wasteful spending, Con- If the chairman now recognizes that chairman’s goal is simply to get at the gress went too far. Surely Congress did the actions taken by his committee truth, then there was no need to doctor not intend to close down reputable and were wrong, the gentleman from Indi- the tapes. efficient providers of home health care ana (Mr. BURTON) also owes an apology Considering all of this, along with services. to Mr. and Mrs. Hubbell as well as the the chairman’s recent public statement In rural Kansas, health care is not President and the First Lady. The re- that he was after, quote-unquote, the just a quality of life issue. It is a mat- lease of those summaries as well as the President, President Clinton, how can ter of survival. A home health care tapes themselves represents something the important investigative work of agency in a rural community is often that may be truly unprecedented in the the committee lead to any findings the sole provider of services, the criti- House of Representatives: the elevation that will be accepted as legitimate by cal link between hospitals and inde- of partisanship over the sanctity of the the public? pendent personal recovery. These agen- privacy of conversations between a I would appeal to the higher instincts cies give seniors the opportunity to re- husband and wife. of the gentleman from Indiana (Mr. cover in their own homes with their This is such a profound affront to BURTON) to apologize to the Hubbells own families and save the Medicare most people’s sensibilities and the val- and to the President and to the First program costly hospital or nursing ues that we hold dear that it raises new Lady. home stays following each illness or in- questions about whether the gentleman f jury. Rural providers and their pa- from Indiana (Mr. BURTON) can or tients are especially hurt by cuts in ought to continue to lead that commit- HIGHLIGHTS OF THE HIGHER payments due to the high cost of pro- tee’s investigation into alleged cam- EDUCATION AMENDMENTS OF 1998 viding these services in a rural setting. paign finance violations. The SPEAKER pro tempore. Under a These cuts threaten to leave seniors Chairman BURTON’s continuing re- previous order of the House, the gen- without adequate care and without lease of the private telephone con- tleman from Pennsylvania (Mr. FOX) is independence of home care. versations of Mr. Hubbell, including recognized for 5 minutes. I wholeheartedly support the goal of conversations with his wife and his at- Mr. FOX of Pennsylvania. Mr. Speak- reforming Medicare. Unfortunately, torney, appear to represent a serious er, I rise tonight to discuss the very the budget agreement penalized the abuse of government power intended to important legislation which was just May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2923 adopted in the House, speaking of the trict a heroine, Connie Cleary, who has of 1996, my observations were that both Higher Education Amendments of 1998 been working for many years to make on the majority and the minority side, which we passed this evening. This will sure that colleges report such security originally there was some expression of reverse the current trend where it has information. Her daughter was trag- intent to do a serious, credible inves- been more difficult for many students ically murdered on a college campus. tigation and examination; not a perse- to get into college because of financial She and her husband have dedicated cution or a politically motivated inves- reasons, and this is because college will their lives to making sure that every tigation, but something that would be more affordable under our new college parent and student knows ex- give insight to the Members of this amendments. It will simplify the stu- actly what the security situation is at House and to the American people of a dent aid system and improve academic each university, so that together we very serious problem, and that problem quality. In doing so, our bill enhances can make our campuses safer and to is the prostitution of the American po- the freedom of Americans to live the make sure that individuals who attend litical system and campaigns, which is American dream, rewards Americans schools have every piece of knowledge fast overwhelming this Nation as expe- who are willing to take responsibility they should know about the campus in rienced in 1996. for themselves in the future and re- making an informed choice. As we met to organize and to identify stores accountability to the Nation’s This bill is a positive bill. I believe it our mission, it seemed that very early higher education programs. is going to help more students attend on many of us on the minority side of Higher education amendments make college and be able to financially afford the committee were fast realizing that college more affordable by rescuing the to achieve their dream and then go on there was an extraordinary power, the student loan program and, in turn, pro- to get the job which best suits the aca- power of subpoena that was going to be viding students with the lowest inter- demic challenges they have met. vested in the Chairman without the est rate in 17 years. Specifically, this f need for clearing a subpoena through provision ensures that private banks The SPEAKER pro tempore. Under a the ranking member or to going to the stay in the student loan program. previous order of the House, the gen- full committee that would normally Without it the student loan program tleman from New York (Mr. HINCHEY) have some input in the exercise of the would eventually collapse and college is recognized for 5 minutes. issuance of a subpoena. I thought that students would be left without the bor- (Mr. HINCHEY addressed the House. was strange, and to my own mind and rowing power which they need to fi- to others I remarked at the time that nance their education. His remarks will appear hereafter in the Extensions of Remarks.) as a result of this unusual power being The higher ed bill makes college vested in the chairman, he would be- more affordable for students from dis- f come the most powerful American citi- advantaged backgrounds. It expands The SPEAKER pro tempore. Under a zen in the United States. No other indi- the Pell grant program which provides previous order of the House, the gentle- vidual in the United States could, by higher education vouchers for needy woman from North Carolina (Mrs. merely signing a subpoena, command students and improves campus-based CLAYTON) is recognized for 5 minutes. the presence, the records, the examina- aid programs like the supplemental (Mrs. CLAYTON addressed the House. tion of all of the personal papers of any education opportunity grants, work- Her remarks will appear hereafter in American citizen. study and the Perkins loans, and the Extensions of Remarks.) We cautioned the chairman that it strengthens international and graduate f may be wise to carry on prior prac- education. tices, both of the Committee of Over- Mr. Speaker, it also brings much b 2320 sight and Investigation, and the experi- needed reforms to the TRIO program to FAULTY PROCEDURES OF THE ences of the Watergate committee, the help disadvantaged children prepare for COMMITTEE ON GOVERNMENT Thompson committee in the Senate, college while still in their teens. Spe- REFORM AND OVERSIGHT and that was that when an individual is cifically the bill increases the maxi- going to be issued a subpoena, it should mum allowable Pell grant for students The SPEAKER pro tempore. Under a come to the full committee to be dis- from the current 3,000 to $4,500 per stu- previous order of the House, the gen- closed, or at least to the ranking mem- dent for academic year 1999, and the tleman from Pennsylvania (Mr. KAN- ber so that a discussion can be had; and grants gradually increase to 5,300 in JORSKI) is recognized for 5 minutes. when agreement was reached, the sub- the year 2003 to 2004. Mr. KANJORSKI. Mr. Speaker, I Furthermore, the bill acknowledges know the hour is late. It is a pleasure poena would issue. If there was dis- sacrifices rendered by making college to follow my good friend from Michi- agreement, it would come to the full more affordable for those who serve in gan (Mr. CONYERS), the former chair- committee and the full committee the U.S. Armed forces. Specifically it man of the House Operations Commit- would cast a vote with the majority of exempts veterans’ benefits from being tee, now the Committee on Govern- the committee controlling the outcome counted against students when they ment Reform and Oversight of the as to whether the subpoena should apply for financial aid. House of Representatives. issue. This legislation holds colleges and On the same issue that the gen- Instead of doing that, the chairman universities accountable for tuition in- tleman from Michigan (Mr. CONYERS) received, without limitation, by vote of creases. Under the bill, colleges and recently addressed the House on, I the majority of the committee, that he universities are required to develop would just like to spell out some of my in his own right, without consultation clear standards for reporting college thoughts in regards to the exercise of and without consent from the commit- costs and prices for both undergraduate the authority of the committee and the tee, and without contest by the rest of and graduate education. chairing of the committee, particularly the committee, could issue at will sub- It also simplifies the student aid sys- in the last several months. poenas to many citizens in the coun- tem. The Higher Education Amend- Mr. Speaker, the House of Represent- try. ments of 1998, which we just voted atives, in passing the resolution direct- Mr. Speaker, I think nearly 1,000 upon, offers students a way out by ing the Committee on Government Re- such subpoenas were issued. Some of making the student aid process more form and Oversight to examine the them were so grossly and improperly user-friendly, incorporating sales man- election practices in the presidential issued that because the surname of the agement principles into student aid and congressional elections of 1996, in- individual who was named in the sub- programs, and cutting red tape and bu- vested in the Committee on Govern- poena was of Chinese American origin, reaucracy. ment Reform and Oversight a very un- there was a professor at the University One of the most important parts of usual power and instruction. I dare of Georgetown that had his bank this bill, Mr. Speaker, was the Foley say, although this was a political issue records seized, even though he had amendment which requires that crime from the standpoint it involved politi- nothing to do with the campaign and statistics be available to those who cal campaigns and supposedly both par- was, in fact, an entirely different per- apply to colleges. I have in my own dis- ties that were engaged in the campaign son. We called that very strongly to H2924 CONGRESSIONAL RECORD — HOUSE May 6, 1998 the attention of the chairman and he law, Lieutenant General Hussein pipeline since the Pressler amendment dismissed that. Kamel, who ran Iraq’s secret weapons was invoked, was shipped to Pakistan. About 5 months ago, we had a vote to program. There is also the specter of U.S. F–16s, immunize six witnesses before the com- The Pakistani Government has de- the delivery of which were also held up mittee. At that time we were assured nied the report and the IAEA has not by the Pressler amendment, being de- that they would offer testimony that yet made any determination, but this livered to Pakistan. was necessary to the committee. In report is part of a very troubling pat- Mr. Speaker, in conclusion, I want to fact, that immunization of those wit- tern involving Pakistan in efforts to say that Pakistan has continued to nesses allowed an individual to escape obtain nuclear weapons and delivery take actions that destabilize the region prosecution by getting immunity from systems or to share this technology and the world. Providing and obtaining that committee with unstable regimes. weapons and nuclear technology from f Recently, Pakistan tested a new mis- authoritarian, often unstable regimes, sile known as the Ghauri, a missile is a pattern of Pakistani policy that is ROLE OF PAKISTAN IN THE with a range of 950 miles, sufficient to unacceptable to U.S. interests and the TRANSFER AND PROLIFERATION pose significant security threats to goal of stability in Asia. OF NUCLEAR WEAPONS AND DE- India and to launch a new round in the Pakistan is a country that faces se- LIVERY SYSTEMS south Asian arms race. I am pleased vere development problems and really The SPEAKER pro tempore. Under a that the recently elected Government they should not be involved in this con- previous order of the House, the gen- of India has demonstrated considerable tinued proliferation of nuclear weap- tleman from New Jersey (Mr. PALLONE) restraint in light of this threatening ons. is recognized for 5 minutes. new development. Its people would be much better served if Mr. PALLONE. Mr. Speaker, I want While I welcome the sanctions their leaders focused on growing the econ- to stress my concern this evening over against North Korea, I remain very omy, promoting trade and investment and fos- the continued role of Pakistan in the concerned that China is also known to tering democracy. U.S. policy needs to be transfer and proliferation of nuclear have transferred nuclear technology to much stronger in terms of discouraging the weapons and delivery systems. Pakistan. Our administration has cer- continued trend toward destabilization and Last month, the U.S. State Depart- tified that it will allow transfers of nu- weapons proliferation that the Pakistani gov- ment determined that sanctions should clear technology to China, a move I ernment continues to engage in. be imposed on Pakistan pursuant to continue to strongly oppose. f the Arms Export Control Act, and this Mr. Speaker, for years many of our ACTIONS TAKEN BY THE BURTON decision comes in the wake of a deter- top diplomatic and national security COMMITTEE mination that entities in Pakistan and officials have advocated a policy of ap- North Korea have engaged in missile peasement of Pakistan, citing that The SPEAKER pro tempore. Under a technology proliferation activities. country’s strategic location. But I previous order of the House, the gen- According to the notice published in think the time has long since passed tleman from Wisconsin (Mr. BARRETT) the Federal Register on May 4 of this for us to reassess our relationship with is recognized for 5 minutes. year, Khan Research Laboratories in Pakistan. The two developments I cite Mr. BARRETT of Wisconsin. Mr. Pakistan and the North Korean Mining today are only the latest develop- Speaker, the hour is late. There has Development Trading Corporation are ments. North Korea, the last bastion of been much fanfare this week in Wash- subject to sanctions, including denial Stalinism, is also one of the most po- ington over the Burton committee, and of export licenses, a ban on U.S. Gov- tentially dangerous nations on Earth the actions that were taken by the ernment contracts with these entities, and the U.S. has been trying to pursue chairman of that committee. I just and a ban on importation to the U.S. of policies to lessen the threat of nuclear want to reflect on those actions and re- products produced by these two enti- proliferation from North Korea, but flect on that committee which I have ties. The sanctions are in effect for 2 now we see that Pakistan is cooperat- served on for the last 51⁄2 years. years. ing with North Korea on missile tech- My first two years, I served under the Now, although these sanctions seem nology. gentleman from Michigan (Mr. CON- relatively modest, I still want to ap- Mr. Speaker, we do not need to be re- YERS), who is here with us tonight and plaud the Clinton administration for minded of American concerns over who has spoken about this issue ear- imposing the sanctions on these com- Saddam’s regime in Iraq. Now credible lier. For two years Mr. CLINGER headed panies. I hope that enforcement efforts reports have surfaced suggesting the the committee and the gentleman from against these and other firms involved possibility of nuclear cooperation be- Indiana (Mr. BURTON) has headed this in the proliferation of missile tech- tween Iraq and a top Pakistani sci- committee for the last year and a half. nology will remain strong. entist. Concerns about Pakistani nu- Earlier this week and late last week As if this recent disclosure, though, clear weapons proliferation efforts there was much criticism of the 19 about Pakistani nuclear missile tech- have been a concern for U.S. policy- Democrats on that committee who had nology with North Korea was not makers for more than a decade. In 1985 voted against immunity. I was one of shocking enough, there are reports this the Congress amended the Foreign As- those Democrats and I am 100 percent week that the International Atomic sistance Act to prohibit all U.S. aid to comfortable with my vote. There are Energy Agency, or the IAEA, is inves- Pakistan if the President failed to cer- many times when it is difficult when tigating whether a leading Pakistani tify that Pakistan did not have nuclear legislators have to think about wheth- scientist offered Iraq plans for nuclear explosive devices. er they are doing the right thing or the weapons. The information, first re- wrong thing, and believe it or not, leg- b ported in Newsweek Magazine, has 2330 islators sometimes actually think been confirmed by the IAEA. According This is known as the Pressler amend- about this and they are concerned to the report, in October of 1990, prior ment. And it was invoked in 1990 by about whether they are doing the right to the Persian Gulf War, but after the President Bush when it became impos- thing or the wrong thing. Iraqi invasion of Kuwait, while our sible to make such a certification. The I am very confident that what we did troops were massing in Saudi Arabia law has been in force since, but we on that committee was the right thing under Operation Dessert Shield, a have seen ongoing efforts to weaken to do. And I just want to take a minute memorandum from Iraqi’s intelligence the Pressler amendment, including a to explain the concerns that I and service to its nuclear weapons direc- provision in the fiscal year 1998 For- other Members of that committee have torate mentioned that Abdul Qadeer eign Operations Appropriations Bill had. Khan, the Pakistani scientist, offered that carves out certain exemptions to First, I have to go back a year and a help to Iraq to ‘‘manufacture a nuclear the law. half when the committee was formed weapon.’’ The document was among Several years ago, $370 million worth and started this investigation. We ar- those turned over by Iraq after the 1995 of U.S. conventional weapons to Paki- gued that there were problems, and defection of Saddam Hussein’s son-in- stan, which had been tied up in the that there are problems, but those May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2925 problems did not occur exclusively on Last year one of the leading employ- other religious organizations and edu- the Democratic side of the aisle and if ees on that committee left because of cation groups, known as the Coalition we were going to have a true investiga- the tactics of the committee. As was to Preserve Religious Liberty, are op- tion, it should be an investigation in mentioned earlier, the head legal coun- posing the Istook amendment because the fund-raising practices of both the sel of the committee earlier this week it will harm religious freedom in Amer- Democrats and the Republicans. advised Chairman BURTON not to re- ica. We were realistic because we realized lease the tapes, the Hubbell tapes and In my opinion, Mr. Speaker, the that the gentleman from Indiana (Mr. he did. I respect Mr. Bennett, who is Istook amendment is the worst piece of BURTON), who had a reputation of being the lead counsel, and I think he was legislation that I have seen in 15 years highly partisan, would not go along trying to do the right thing. in public office. It is dangerous because with that. And we recognized that he But any doubts that anyone could it threatens our core religious rights was the man who held the gavel and have over whether we did the right and literally tears down its 200-year- that he could do what he wanted, so we thing in voting against immunity I old wall that our Founding Fathers had to live with that. And I understand think had to be really put to the side built to protect religion from intrusion that and I accept that. when we talk about the actions that by government. But I expected and I think that the took place this last weekend. When That is why I have been active and other committee members expected the Chairman BURTON released portions of will continue to be active in the bipar- one thing that is imperative for any tapes and only those portions that tisan coalition of House Members and committee chairman in this building, tended to incriminate the President or religious leaders to defeat this ill-de- and that is that the person is fair. And tried to incriminate the President, but signed measure. that is where this committee has failed did not release portions of the tapes Mr. Speaker, the Istook amendment miserably because I do not think that that would have showed the other side would allow satanic prayers, it would the chairman or the committee have of the story, he showed not only to the allow animal sacrifices to be performed run a fair investigation. committee members, not only to the in public schoolrooms, even in elemen- We have had other complaints over members of this body, but he showed to tary schools with small children. It the last year and a half, but time and the entire American public that this is would step on the rights of religious time again the chairman said, well, not a search for the truth because if it minorities and allow government fa- this is the way that I am going to run were a search for the truth he would cilities to become billboards for reli- the committee, and basically squashed have released all relevant parts of gious cults. the complaints of the minority. Again, those telephone conversations. He Mr. Speaker, America already has a we lived with that because we under- would not have excluded those portions religious freedom amendment. It is stand the rules. of the conversations that tended to ex- called the First Amendment to the But it was two weeks ago when the onerate the President. But again that U.S. Constitution. It is the first pillar chairman made a statement in his was not the purpose and that has never of the Bill of Rights. It is the sacred home town that was the straw that been the purpose of this committee, foundation of all our freedoms. broke this camel’s back, because he and that is why I feel comfortable with The first amendment begins with used a phrase in describing the Presi- what we are doing. these cherished words: Congress shall dent that I frankly am not comfortable f make no law respecting an establish- in mentioning in public. And he said, ment of religion or prohibiting the free ‘‘That is why I am out to get the Presi- RELIGIOUS FREEDOM THREAT- exercise thereof. dent.’’ ENED BY PROPOSED CONSTITU- For over two centuries that simple Now, when someone is a member of TIONAL AMENDMENT but profound statement has been the the committee and walks into that The SPEAKER pro tempore. Under guardian of religious liberty, which is committee room and knows that the the Speaker’s announced policy of Jan- perhaps the greatest single contribu- chairman’s goal is to get the President, uary 7, 1997, the gentleman from Texas tion of the American experiment in de- they lose all belief in the system that (Mr. EDWARDS) is recognized for half mocracy. he is running because he has basically the time between now and midnight as b 1140 publicly said that he is not interested the designee of the minority leader. in running an investigation to look for Mr. EDWARDS. Mr. Speaker, I am To tamper with the First Amend- truth. What he is interested in is get- here tonight to discuss an issue that is ment of our Bill of Rights has profound ting the President. of critical importance to our Nation implications. In the name of furthering Back in October before he made those and to every American family. The religion, the Istook amendment would statements, I and every other Member issue is religious freedom. Specifically, harm religion. In the name of protect- of that committee, every other Demo- I want to comment on Federal legisla- ing religious liberty, it would damage crat on that committee, had voted for tion that I believe will do great damage religious freedom. immunity for several witnesses. As it to our Bill of Rights and to the cause With no disrespect intended, if I must turned out, one of those witnesses of religious liberty. choose between Madison, Jefferson, and should not have received immunity be- The gentleman from Oklahoma (Mr. our Founding Fathers versus the gen- cause of other legal problems that he ISTOOK) has introduced a constitutional tleman from Oklahoma (Mr. ISTOOK) on had. But we went along with the com- amendment that, if passed into law, the issue of protecting our religious mittee chairman because we felt that would for the first time in our Nation’s liberty, I shall stand with Madison, we had to be acting in good faith and history amend our cherished Bill of with Jefferson, and our Founding Fa- we had to act fairly. Rights, which has for over 200 years thers. I shall stand in the defense of But when the committee chairman protected Americans’ religious, politi- our Bill of Rights. says that he is out to get the Presi- cal and individual rights. Mr. Speaker, if history has taught us dent, from the perspective of this Mem- The House could vote on this amend- nothing else, it has taught us that the ber all the credibility of that commit- ment as early as next month. The gen- best way to ruin religion is to politi- tee is gone. It is impossible for me to tleman from Oklahoma has mislabeled cize it. Our Founding Fathers did not have confidence in this committee, his work the Religious Freedom mention God in our Constitution, not when I know that the goal of this com- Amendment. More appropriately, it out of disrespect, but out of total rev- mittee chairman is to get the Presi- should be called the Religious Freedom erence. It is that same sense of rev- dent. Destruction Amendment. erence that should move us in this It is not an attempt to find the truth, That is why so many religious orga- House to protect the First Amendment, it is not an attempt to be fair, it is not nizations such as the Baptist Joint not dismantle it. an attempt to listen to all Members, Committee, the American Jewish Con- Some have suggested that the Istook and I think what we have seen with gress and the United Methodist Church amendment is necessary because they some of the committee staff reflects are strongly opposing the Istook allege that ‘‘God has been taken out of that. amendment. In fact, these and many public places and schoolhouses.’’ I H2926 CONGRESSIONAL RECORD — HOUSE May 6, 1998 would suggest those people must not Frankly, I would have hoped that, hand, you allow 10-year-old children in share my belief that no human has the prior to any vote on amending the Bill elementary schools to be the censors power to remove an all-powerful ever- of Rights, this Congress would have and selectors of permissible prayers present God from any place on this had hearings more extensive than any and the guardians of America’s reli- Earth. other hearings past or present in the gious rights. The fact is that there is no law in history of the Congress. Under the Istook amendment, would America that prohibits all prayers in Unfortunately, that has not hap- 10-year-olds set up prayer selection our school. It has been said that ‘‘as pened. In fact, in 1998, and this is hard committees? Would 10-year-olds create long as there are math tests, there will to believe, in 1998, there has only been prayer appeals committees? Would be prayers in school.’’ I agree. Under one day of hearings on the Istook eight, nine, and 10-year-olds be ex- present law, schoolchildren may pray amendment to amend the Bill of Rights pected to balance majority views with silently in school or even out loud, as for the first time in our country’s his- minority rights as written in our Con- long as they do not disturb the class tory. stitution through the Bill of Rights? work of others or participate in gov- Regardless of one’s view on the What if one’s religion, such as the ernment-sanctioned prayer. Istook amendment to have a vote Santerias, involves animal sacrifices? Children can say grace over their changing the Bill of Rights with less Would that be allowed, cutting off the school lunches and, if they wish, pray review than Whitewater, campaign fi- heads of chickens in the classrooms as around the flagpole before and after nance, or even the Branch Davidian part of a prayer ritual? Which 10-year- school. In fact, before and after school, hearings I believe would be an injustice olds would be forced or allowed to prayer groups have been established at to our Bill of Rights, our Founding Fa- make that decision in our public hundreds of schools all across America, thers, and all who cherish religious lib- schools? Could school administrators and these numbers are increasing every erty. be allowed to override that 10-year-old day. It would be tragic to set a precedent student’s decision? If so, where do we The April 27 copy of Time Magazine in this House that amending the Bill of then draw the line on government offi- of this year documents that voluntary Rights deserves a less careful review cials reviewing what is and is not a prayer is alive and well in American than any other issue before this Con- permissible prayer? schools. Mr. Speaker, I include that ar- gress or any Congress. Mr. Speaker, until these and hun- ticle in the record this evening. As Mr. ISTOOK and his supporters try dreds of other questions are answered Under the Bill of Rights, as it should to meet their burden of proof in argu- concerning the Istook amendment, I be, government resources cannot be ing that the Bill of Rights is flawed, I would suggest we would do well to fol- used to force religion upon our school- hope they will follow the Ninth Com- low the wisdom of Jefferson, Madison, children against the wishes of their mandment. and our Founding Fathers and protect, parents or against the wishes of the For example, many proponents of not dismantle, the First Amendment to students themselves. What the Bill of this measure have failed to point out our Bill of Rights. I think Thomas Jefferson said it bet- Rights does prohibit is government- the Ellen Pearson school bus story ter than I could ever imagine when he sponsored prayer, and thank goodness about a student who was told that she said this in his letter to the Danbury it does. could not read a Bible or bring a Bible Baptists, ‘‘Religion is a matter which Our Founding Fathers were wise to on the school bus. They use that as a lies solely between man and his God; separate church and State in the very reason to amend the Bill of Rights, but that he owes account to none other for First Amendment, in the very first yet they forget to point out that that his faith or worship; that the legisla- words of the Bill of Rights. Religious problem was solved with one phone call tive powers of government reach ac- freedom flourishes in America today to a school principal in 1989, hardly a reason to amend a bill of rights in 1998. tions only and not opinions.’’ precisely because of our wall of separa- I contemplate with sovereign rev- tion between church and State. Mr. Speaker, I believe the American people have the right to know that, erence that act of the whole American Islamic fundamentalism seen in the people which declared that their legis- Middle East today is a clear example of under the Istook amendment, seven, eight, nine, ten-year-old schoolchildren lature should ‘‘make no law respecting how religious rights are trampled upon an establishment of religion or prohib- when government gets involved in reli- could be subjected to satanic prayers in their public schools. iting the free exercise thereof, thus gion. building a wall of separation between In the weeks ahead, I urge Americans Let me read an example of what our children could be exposed to under the church and State.’’ to look beyond the sound bite rhetoric Mr. Speaker, I think it is interesting of the Istook amendment and to ask Istook amendment, a satanic prayer: I am a born satanist. I am a happy little that the other day the gentleman from yourselves this question: Should prayer Oklahoma (Mr. ISTOOK) in supporting be an individual right or a government blob of custard and you cannot nail me to any wall; in fact, I would pull those nails out his constitutional amendment that, in program? and aim them at you. Tell me how negative my opinion would destroy an impor- Whether I am in office for 2 more I am. Tell me how I am filled with hate. You tant part of the Bill of Rights, he sug- years or 10 more years, there never has are not just stupid. You are wrong. Dracula gested that those who were opposing been and never will be an issue more loved his bride. Dr. Frankenstein loved his his amendment of the Bill of Rights important to me than protecting reli- monster. My satanic love burns fiercely. It is were ‘‘demagogues’’. gious liberty by defeating the Istook perfect and uncompromising. Let me suggest, I do not know about amendment. Maybe Mr. ISTOOK would not mind whom the gentleman from Oklahoma Our Bill of Rights is one of the great- his children being exposed to that sa- was suggesting, but if you want to call est political documents in the history tanic prayer and others like it in our those demagogues opposing the Istook of the world. We cannot allow the gen- public schools, our tax-supported amendment, you are going to have to tleman from Oklahoma (Mr. ISTOOK) in schools, but I would be offended if my include the Baptists, you are going to sound bite politics or anything else, for two young sons someday are exposed to have to include the Methodists, you are that matter, to dismantle it. witchcraft, satanic, or cult prayers in going to have to include Jewish organi- First, let me say, too, that there the public schools of Waco, Texas. zations across America, and dozens and should be an enormous burden of proof Therein lies the unanswered di- dozens of other devout religious organi- placed upon anyone wanting to amend lemma, the unanswerable, in fact, di- zations who oppose the Istook amend- the first words of the First Amendment lemma of the Istook amendment that ment specifically because of their be- of our Bill of Rights. The document has allows student-initiated prayer. Either lief in the reverence of religious liberty not been amended even a single time you expose young impressionable chil- in America. since its adoption, as I said, over two dren in first and second and third and centuries ago. fourth and fifth grades in public school b 2350 There can be no more sacred freedom classrooms to satanic and all other On April 22, just a few days ago, the than the freedom of religion. To tam- types of prayers from thousands of reli- Baptist Standard said this: ‘‘The Bap- per with it is a grave undertaking. gious sects and cults, or, on the other tist Standard remains a strict advocate May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2927 of the separation of church and State. 1st grade classrooms and 5th grade school campuses, although with some state- The first amendment has served us classrooms and 12th grade classrooms, imposed limitations. Available statistics are well. We don’t need the Religious Free- public classrooms in America’s schools. approximate, but they suggest that there are So for those reasons, Mr. Speaker, clubs in as many as 1 out of every 4 public dom Amendment.’’ schools in the country. In some areas the Finally, Mr. Speaker, and there are and for many, many more that I will tally is much higher: evangelicals in Min- so many other issues that I hope we have the privilege to discuss in the neapolis-St. Paul claim that the vast major- can discuss on the floor of this House weeks ahead, I would urge the Members ity of high schools in the Twin Cities region in the weeks leading up to a vote on of this Congress and the American peo- have a Christian group. Says Benny Proffitt, the Istook amendment, and I would ple to think carefully before we buy a Southern Baptist youth-club planter: ‘‘We urge the other side to agree to our rec- into the sound-bite rhetoric of the had no idea in the early ’90s that the re- ommendation or request that we have Istook constitutional amendment; that sponse would be so great. We believe that if an open debate, it seems to me the we should think seriously before we we are to see America’s young people come to Christ and America turn around, it’s least we owe, the Congress to the change what our Founding Fathers going to happen through our schools, not our American people, is to have an open carefully designed as the very first 16 churches.’’ Once a religious scorched-earth dialogue, an open discussion and not words of our Bill of Rights, to defend zone, the schoolyard is suddenly fertile just one person’s debate in the late religious freedom. ground for both Vine and Branches. hours of the evening, which the other I think this will be the most impor- The turnabout culminates a quarter-cen- side has been doing recently to discuss tant debate of this Congress, and I hope tury of legislative and legal maneuvering. the pros and cons of amending the first this Congress will give it serious con- The 1963 Supreme Court decision and its broad-brush enforcement by school adminis- 16 words of the Bill of Rights. sideration and ultimately the defeat trators infuriated conservative Christians, My concern about this Istook amend- that it deserves. who gradually developed enough clout to ment, among many other things, goes [From Time, Apr. 27, 1998] force Congress to make a change. The result- to a statement that was made right SPIRITING PRAYER INTO SCHOOL ing Equal Access Act of 1984 required any federally funded secondary school to permit here on the floor of this House last (By David Van Biema) evening when the gentleman from religious meetings if the schools allowed On an overcast afternoon, in a modest Oklahoma (Mr. ISTOOK) and the gen- other clubs not related to curriculum, such room in Minneapolis, 23 teenagers are in ear- as public-service Key Clubs. The crucial rule tleman from Georgia (Mr. KINGSTON) nest conversation with one another—and was that the prayer clubs had to be vol- were discussing this amendment. The with the Lord. ‘‘Would you pray for my untary, student-run and not convened during gentleman from Oklahoma had listed a brother so that he can raise money to go [on class time. series of Federal Court decisions where a preaching trip] to Mexico?’’ asks a young Early drafts of the act were specifically he disagreed with the judge’s opinion woman. ‘‘Our church group is visiting juve- pro-Christian. Ultimately, however, its argu- that we should, in Thomas Jefferson’s nile-detention centers, and some are scared ment was stated in pure civil-libertarian words, have separation of church and to go,’’ explains a boy. ‘‘Pray that God will terms; prayers that would be coercive if re- lay a burden on people’s hearts for this.’’ quired of all students during class are pro- State in America. The gentleman from ‘‘Pray for the food drive,’’ says someone. tected free speech if they are just one more Georgia (Mr. KINGSTON) then replied in ‘‘There’s one teacher goin’ psycho because after-school activity. Nevertheless, recalls this way. He said, ‘‘Mr. Speaker, there kids are not turning in their homework and Marc Stern, a staff lawyer with the Amer- is no doubt in my mind that there is a stuff. She’s thinking of quitting, and she’s a ican Jewish Congress, ‘‘there was great fear special place in hell for a number of real good teacher.’’ that this would serve the base for very intru- Federal court judges, as I am sure ‘‘We need to pray for all the teachers in sive and aggressive proselytizing.’’ Accord- there will be for Members of Congress.’’ the school who aren’t Christians,’’ comes a ingly, Stern’s group and other organizations I hope the gentleman from Georgia voice from the back. challenged the law—only to see it sustained, And they do. Clad in wristbands that read 8 to 1, by the Supreme Court in 1990. Bill will come to the floor of this House and W.W.J.D. (‘‘What Would Jesus Do?’’) and T Clinton apparently agreed with the court. explain that statement, because it ap- shirts that declare UPON THIS ROCK I WILL The President remains opposed to compul- pears to me that in the context in BUILD MY CHURCH, the kids sing Christian sory school prayer. But in a July 1995 speech which it was given, he was suggesting songs, discuss Scripture and work to memo- he announced that ‘‘nothing in the First that because certain Federal judges rize the week’s Bible verse, John 15: 5 (‘‘I am Amendment converts our public schools into happen to disagree with the gentleman the vine and you are the branches’’). Hours religion-free zones or requires all religious from Oklahoma and the gentleman pass. As night falls, the group enjoys one last expression to be left at the schoolhouse from Georgia, and happen to agree with mass hug and finally leaves its makeshift door.’’ A month later Clinton had the De- chapel—room 133 of Patrick Henry High partment of Education issue a memo to pub- Thomas Jefferson and James Madison, School. Yes, a public high school. If you are lic school superintendents that appeared to that somehow there would be a special between ages 25 and 45, your school days expand Equal Access Act protections to in- place in hell reserved for not only were not like this. In 1963 the Supreme Court clude public-address announcements of reli- those Federal judges but perhaps for issued a landmark ruling banning compul- gious gatherings and meetings at lunchtime Members of Congress that would agree sory prayer in public schools. After that, any and recess. with our Founding Fathers that the worship on school premises, let alone a pray- Evangelicals had already seized the mo- best way to protect religion is to keep er club, was widely understood as forbidden. ment. Within a year of the 1990 court deci- sion, prayer clubs bloomed spontaneously on government out of religious affairs. But for the past few years, thanks to a subse- quent court case, such groups not only have a thousand high school campuses. Fast on Mr. Speaker, I think it is this kind of been legal but have become legion. their heels came adult organizations dedi- thinking that will create divisive de- The clubs’ explosive spread coincides with cated to encouraging more. Proffitt’s Ten- bate around this country if the pro- a more radical but so far less successful nessee-based organization, First Priority, ponents of the Istook amendment movement for a complete overturn of the founded in 1995, coordinates interchurch would continue to suggest, as they did 1963 ruling. On the federal level is the Reli- groups in 162 cities working with clubs in last night, that if we agree with cer- gious Freedom amendment, a constitutional 3,000 schools. The San Diego-based National tain views of church and State issues, revision proposed by House Republican Er- Network of Youth Ministries has launched somehow we have a special place in nest Istook of Oklahoma, which would rein- ‘‘Challenge 2000,’’ which pledges to bring the state full-scale school prayer. It passed the Christian gospel ‘‘to every kid on every sec- heaven; and somehow if we disagree Judiciary Committee, 16 to 11, last month ondary campus in every community in our with those people’s opinions, somehow but will probably fare less well when the full nation by the year 2000.’’ It also promotes a we will have a special place in hell re- House votes in May. One of many local bat- phenomenon called ‘‘See You at the Pole,’’ served for us. tlefields is Alabama, where last week the encouraging Christian students countrywide I do not think this country needs state senate passed a bill mandating a daily to gather around their school flagpoles on that kind of religious divisiveness, and moment of silence—a response to a 1997 fed- the third Wednesday of each September; last I would suggest, Mr. Speaker, that eral ruling voiding an earlier state pro- year, 3 million students participated. Adult kind of divisiveness that was part of school prayer law. Governor Fob James is groups provide club handbooks, workshops the debate on the floor of this House expected to sign the bill into law, triggering for student leaders and ongoing advice. Net- the inevitable church-state court challenge. work of Youth Ministries leader Paul last night will be replicated in thou- But members of prayer clubs like the one Fleischmann stresses that the resulting sands of schoolhouses across America at Patrick Henry High aren’t waiting for the clubs are ‘‘adult supported,’’ not adult-run. as we have fights over who gets how conclusion of such epic struggles. They have ‘‘If we went away,’’ he says, ‘‘they’d still do many minutes to give which prayer in already brought worship back to public it.’’ H2928 CONGRESSIONAL RECORD — HOUSE May 6, 1998 The club at Patrick Henry High certainly so many kids are praying legally in the pub- fiscal house in order, and held Washington's would. The group was founded two years ago lic schools now, why would you possibly feet to the fire to balance the budget. with encouragement but no specific stage want to amend the Constitution?’ ’’ While President Clinton paraded a long list managing by local youth pastors. This after- For now, the prospects for prayer clubs noon its faculty adviser, a math teacher and seem unlimited. In fact, the tragic shooting of new spending totaling at least $46Ð$48 bil- Evangelical Free Church member named of eight prayer-club members last December lion in new programsÐwe believe that a top Sara Van Der Werk, sits silently for most of in West Paducah, Ky., by 14-year-old Michael priority should be returning the budget surplus the meeting, although she takes part in the Carneal provided the cause with matyrs and to America's families as additional middle- final embrace. The club serves as an emo- produced a hero in prayer-club president Ben class tax relief. tional bulwark for members dealing with life Strong, who persuaded Carneal to lay down This Congress has given more tax relief to at a school where two students died last year his gun. Strong recalls that the club’s daily the middle class and working poor than any in off-campus gunfire. Today a club member meetings used to draw only 35 to 60 students requests prayer for ‘‘those people who got in out of Heath High School’s 600. ‘‘People Congress of the last half century. that big fight [this morning].’’ Another asks didn’t really look down on us, but I don’t I think the issue of the marriage penalty can the Lord to ‘‘bless the racial-reconciliation know if it was cool to be a Christian,’’ he best be framed by asking these questions: Do stuff.’’ (Patrick Henry is multiethnic; the says. Now 100 to 150 teens attend. Strong has Americans feel its fair that our tax code im- prayer club is overwhelming white.) Just be- since toured three states extolling the value poses a higher tax penalty on marriage? Do fore Easter the group experienced its first of Christian clubs. ‘‘It woke a lot of kids First Amendment conflict: whether it could Americans feel its fair that the average mar- up,’’ he says. ‘‘That’s true everywhere I’ve ried working couple pays almost $1,400 more hang posters on all school walls like other spoken. This is a national thing.’’ in taxes than a couple with almost identical in- non-school-sponsored clubs. Patrick Henry f principal Paul McMahan eventually decreed come living together outside of marriage? Is it that putting up posters is off limits to every- ANNOUNCEMENT BY THE SPEAKER right that our tax code provides an incentive to one, leading to some resentment against the PRO TEMPORE get divorced? Christians. Nonetheless, McMahan lauds In fact, today the only form one can file to them for ‘‘understanding the boundaries’’ be- The SPEAKER pro tempore (Mr. tween church and state. GILCHREST). In the absence of a des- avoid the marriage tax penalty is paperwork In Alabama, the new school-prayer bill at- ignee of the majority leader, the gen- for divorce. And that is just wrong! tempts to skirt those boundaries. The legis- tleman from Texas was permitted to Since 1969, our tax laws have punished lation requires ‘‘a brief period of quiet reflec- continue. married couples when both spouses work. For tion for not more than 60 seconds with the f no other reason than the decision to be joined participation of each pupil in the class- in holy matrimony, more than 21 million cou- room.’’ Although the courts have upheld CONGRESS MUST ELIMINATE ples a year are penalized. They pay more in some moment-of-silence policies, civil lib- MARRIAGE TAX PENALTY NOW ertarians say they have struck down laws taxes than they would if they were single. Not featuring pro-prayer supporting language of (Mr. WELLER asked and was given only is the marriage penalty unfair, it's wrong the sort they discern in Alabama’s bill. In permission to address the House for 1 that our tax code punishes society's most the eyes of many church-club planters, such minute and to revise and extend his re- basic institution. The marriage tax penalty fracases amount to wasted effort. Says Doug marks.) exacts a disproportionate toll on working Clark, field director of the National Network Mr. WELLER. Mr. Speaker, why is it women and lower income couples with chil- of Youth ministries: ‘‘Our energy is being poured into what kids can do voluntarily and so important that we pass the Marriage dren. In many cases it is a working women's on their own. That seems to us to be where Tax Elimination Act of 1998? I think a issue. God is working.’’ series of questions best illustrates why. Let me give you an example of how the Reaction to the prayer clubs may depend Do Americans feel that it is fair that marriage tax penalty unfairly affects middle on which besieged minority one feels part of. the average working married couple class married working couples. In the many areas where Conservative Chris- pays higher taxes just because they are For example, a machinist, at a Caterpillar tians feel looked down on, they welcome the married? Do Americans feel that it is emotional support for their children’s faith. manufacturing plant in my home district of Jo- Similarly, non-Christians in the Bible Belt fair that 21 million married working liet, makes $30,500 a year in salary. His wife may be put off by the clubs’ evangelical fer- couples pay on the average $1,400 more is a tenured elementary school teacher, also vor; members of the chess society, after all, just because they are married? Do bringing home $30,500 a year in salary. If they do not inform peers that they must push Americans feel that it is right that our would both file their taxes as singles, as indi- pawns or risk eternal damnation. Not every- Tax Code actually provides an incen- viduals, they would pay 15%. one shares the enthusiasm Proffitt recently tive to get divorced? expressed at a youth rally in Niagara Falls, Of course not. Americans recognize MARRIAGE PENALTY EXAMPLE IN THE SOUTH SUBURBS N.Y.: ‘‘When an awakening takes place, we that the marriage tax penalty is un- see 50, 100, 1,000, 10,000 come to Christ Can Machinist School Couple you imagine 100, or 300, come to Christ in fair. Twenty-one million married work- teacher ing couples pay on the average $1,400 your school? We want to see our campuses Adjusted gross income ...... $30,500 $30,500 $61,000 come to Christ.’’ Watchdog organizations more just because they are married. Less personal exemption and standard like Americans United for the Separation of That is real money for real people. One deduction ...... 6,550 6,550 11,800 Taxable income ...... 23,950 23,950 49,200 Church and State report cases in which such year’s tuition at Joliet Junior College Tax liability ...... 3,592.5 3,592.5 8,563 zeal has approached harassment of students in the south suburbs of Chicago equals Marriage penalty ...... 1,378 and teachers, student prayer leaders have $1,400. Fourteen hundred dollars is 3 seemed mere puppets for adult evangelists, months of child care at a local day care But if they chose to live their lives in holy and activists have tried to establish prayer center in Joliet as well. That is real matrimony, and now file jointly, their combined clubs in elementary schools, where the de- income of $61,000 pushes them into a higher scription ‘‘student-run’’ seems disingenuous. money for real people. Nevertheless, the Jewish committee’s Let us make elimination of the mar- tax bracket of 28 percent, producing a tax Stern concedes that ‘‘there’s been much less riage tax penalty our number one pri- penalty of $1400 in higher taxes. controversy than one might have expected ority in this year’s budget. Let us On average, America's married working from the hysterical predictions we made.’’ eliminate the marriage tax penalty. couples pay $1,400 more a year in taxes than Americans United director Barry Lynn notes Let us eliminate it now. individuals with the same incomes. That's seri- that ‘‘in most school districts, students are ous money. Everyday we get closer to April spontaneously forming clubs and acting upon Mr. Speaker, I rise today to highlight what is their own and not outsiders’ religious agen- arguably the most unfair provision in the U.S. 15th more married couples will be realizing das.’’ A.C.L.U. lobbyist Terri Schroeder also tax code: the marriage tax penalty. I want to that they are suffering the marriage tax pen- supports the Equal Access Act, pointing out thank you for your long term interest in bring- alty. that the First Amendment’s Free Exercise ing parity to the tax burden imposed on work- Particularly if you think of it in terms of: A clause protecting religious expression is as ing married couples compared to a couple liv- down payment on a house or a car, one years vital as its Establishment Clause, which pro- ing together outside of marriage. tuition at a local community college, or several hibits government from promoting a creed. In January, President Clinton gave his State months worth of quality child care at a local The civil libertarians’ acceptance of the day care center. clubs owes something to their use as a de- of the Union Address outlining many of the fense against what they consider a truly bad things he wants to do with the budget surplus. To that end, Congressman DAVID MCINTOSH idea: Istook’s school-prayer amendment. A surplus provided by the bipartisan budget and I have authored the Marriage Tax Elimi- Says Lynn: ‘‘Most reasonable people say, ‘If agreement which: Cut waste, put America's nation Act. May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2929 It would allow married couples a choice in look at how this money is spent. I wel- AIDS Foundation, whose total compensation filing their income taxes, either jointly or as in- come AIDS patients to discuss this was $162,000. dividualsÐwhich ever way lets them keep with this body. The tax information also shows some ex- ecutives getting large pay increases at a more of their own money. Mr. Speaker, I submit for the RECORD time when, Petrelis says government funding Our bill already has the bipartisan cospon- the following article from the April 26 for AIDS is increasingly scarce. sorship of 238 Members of the House and a San Francisco Examiner about the ac- In the case of the Washington, D.C., meal similar bill in the Senate also enjoys wide- countability project. program, Food and Friends, tax returns show spread support. [From the San Francisco Examiner, April 26, that Executive Director Craig Schniderman It isn't enough for President Clinton to sug- 1998] got a 62 percent raise in 1996, from $63,000 to $102,000. gest tax breaks for child care. The President's TRACKING THE FUNDS FOR AIDS JUDGING THE COMPENSATION child care proposal would help a working cou- (By Erin McCormick) Dan Langen of the National Charities In- ple afford, on average, three weeks of day Michael Petrelis wants to know what hap- care. Elimination of the marriage tax penalty formation Bureau, which monitors tax-ex- pened to the $1.5 billion the United States empt organizations, said the issue of how would give the same couple the choice of pay- spent on AIDS last year. much they should pay their executives is ing for three months of child careÐor address- The 39-year-old AIDS patient, and a grow- often controversial. ing other family priorities. After all, parents ing number of activists like him, have been On one hand, he said, if a multimillion-dol- know better than Washington what their family willing to bang on locked boardroom doors, lar charity hires a manager who doesn’t needs. rifle through file cabinets and generally know how to handle money, it may see reve- raise hell to make sure money raised for We fondly remember the 1996 State of the nues—and services—disappear fast. But AIDS goes to fight the deadly disease and ‘‘there should be a difference between for- Union address when the President declared not to overhead expenses and high salaries emphatically that, quote ``the era of big gov- profit compensation and nonprofit. These for charity executives. people might be able to make a lot of money ernment is over.'' Now they are taking their crusade public on Wall Street, but when they choose to We must stick to our guns, and stay the with an Internet Web site that will allow do- work for a charity, they have chosen a dif- course. nors and people with AIDS to follow the ferent lifestyle.’’ There never was an American appetite for money that goes to the dozens of charity re- The National Charities Bureau says non- big government. lief efforts around the country. profits should spend at least half of their But there certainly is for reforming the exist- ‘‘There’s a new phenomenon of people with budgets on the charity mission, not on fund AIDS living longer, which means we’re ask- raising or administrative costs. It’s a goal ing way government does business. ing more questions about services,’’ Sid And what better way to show the American exceeded by all groups on the Web site. Petrelis, who said since he started prodding That doesn’t satisfy Petrelis. people that our government will continue along organizations for financial information he He questions spending by Visual Aid, a the path to reform and prosperity than by has been banned from receiving full services small charity that helps artists suffering eliminating the marriage tax penalty. at three Bay Area AIDS charities. from devastating diseases by providing art Ladies and Gentlemen, we are on the verge ‘‘We’re now questioning where the money supplies and organizing exhibitions. Petrelis of running a surplus. It's basic math. goes from the AIDS Walk, the AIDs Ride and noted that the group reported spending only It means Americans are already paying the AIDS Dance-athon because we would like 21 percent of its $159,000 budget on grants for to have services like hot meals and hous- more than is needed for government to do the artists’ supplies, while much of the rest went ing,’’ he said. to salaries and overhead. job we expect of it. The Accountability Project Web site Visual Aid Executive Director Jim Fisher What better way to give back than to begin (www.accountabilityproject.com), which re- said without its two staff members, the orga- with mom and dad and the American familyÐ veals IRS tax filings and other financial in- nization would be unable to put on exhibits, the backbone of our society. formation about major U.S. AIDS charities solicit donations of supplies or do any fund We ask that President Clinton join with Con- and other nonprofits, makes it possible for raising. gress and make elimination of the marriage internet surfers to get instant information ‘‘We’re about motivating people with ill- tax penaltyÐa bipartisan priority. about how they spend their money. nesses to start working again,’’ he said. ‘‘The Of all the challenges married couples face The project, an offshoot of the in-your-face Michael Petrelises of the world like to yell AIDS activist group, ACT UP Golden Gate, is at us tiny people, who are just trying to in providing home and hearth to America's also pushing for laws to require open board build a base.’’ children, the U.S. tax code should not be one meetings, democratic management and Petrelis said his pet peeve is the campaign of them. greater financial scrutiny for the nation’s for a $3.7 million Memorial AIDS Grove in Lets eliminate The Marriage Tax Penalty rapidly growing nonprofit sector. Gold Gate Park, which solicited donors to and do it now! ‘‘Nonprofits are a trillion-dollar industry pay $10,000 to sponsor a boulder and $15,000 f in the U.S.,’’ said project member Jeff Getty, for a park bench. who has lobbied to get City Hall to pass laws Petrelis said he doesn’t understand how, at THE AIDS ACCOUNTABILITY requiring more public accountability from a time when people are still dying of AIDS, PROJECT nonprofits that get city funds. ‘‘Our country groups can be raising $10,000 for a boulder. But project director Tom Weyand said the (Mr. COBURN asked and was given is creating a [p.8] huge sector that’s some- times replacing government and is spending grove serves a vital purpose for those who permission to address the House for 1 government money, but has no elected offi- have lost loved ones to AIDS and is not minute and to revise and extend his re- cials and no taxpayer accountability.’’ meant to compete with programs helping those fighting the disease. ‘‘It’s about memo- marks.) TAX RETURNS IN PUBLIC EYE Mr. COBURN. Mr. Speaker, with the ries,’’ he said. So far, the Accountability Project Web site availability of powerful new drug While no nonprofit groups protest having has published the tax returns of 28 nonprofits their IRS reports on the Accountability therapies, many with HIV infection from around the nation, ranging from the Project Web site, some recoil at the group’s now have hope. The cost of that hope is San Francisco AIDS Foundation and New efforts to get them to make public all finan- anywhere from $10,000 to $40,000 a year. York’s Gay Men’s Health Crisis to Walden cial records and board meetings. I believe it is unconscionable to deny House, a substance abuse recovery program The San Francisco AIDS Foundation said drugs to this group of people who are that devotes only a portion of its resources it’s happy to have its tax filings posted but living with HIV, and I commend this to people with AIDS. opposes measures that would require addi- body for the money that we have raised And while, on the whole, the documents tional paperwork. show a vast array of lifesaving work being Petrelis said the cooperative treatment and allocated for this purpose. done on behalf of AIDs patients, Petrelis program run by the AIDS Foundation, the However, I have been shocked to says, they also raise questions about some San Francisco AIDS Health Project and the learn that many AIDS organizations charities’ priorities. Shanti Project barred him from group ther- pay their executives excessive salaries For instance, the reports show that 21 ex- apy sessions and group events after he got at the expense of those living with ecutives who worked at 10 of the charities, another piece of information and put it on HIV. Medically necessary care is being had pay packages exceeding $100,000. the Web site; a transcript of an AIDS Foun- severely curtailed while these execu- The highest salary and benefits package dation focus group in which patients were tives line their pockets with Federal went to Walden House Executive Director interviewed about the quality of services. Alfonso Acamporo, who made $186,000 in 1996. Petrelis said the foundation charged he dollars. Jerome Radwin, a director of the American had stolen the transcripts and banished him I would advise the Members of this Foundation for AIDS Research in New York, from group sessions as punishment for com- body and the public in general to look received the second highest, $181,000, fol- promising the confidentiality of survey par- at www.accountabilityproject.com. to lowed by Pat Christen of the San Francisco ticipants. H2930 CONGRESSIONAL RECORD — HOUSE May 6, 1998

The AIDS Foundation and the Shanti of the week, on account of the birth of Mr. WEYGAND in two instances. Project said confidentiality rules barred a child. Mr. KUCINICH in two instances. them from commenting on Petrelis’ status f Mrs. TAUSCHER in two instances. as a client. Ms. DUNN. But, while Petrelis and other Accountabil- SPECIAL ORDERS GRANTED Mr. VISCLOSKY. ity advocates are criticized for being Mr. PACKARD. confrontational, the movement to require By unanimous consent, permission to Mr. MCDERMOTT. more scrutiny of nonprofits has caught fire. address the House, following the legis- ‘‘The bigger nonprofits get, the more lative program and any special orders Mr. FOSSELLA. chance they get out of touch with their con- heretofore entered, was granted to: Mr. GREEN. stituencies,’’ said Supervisor Tom Ammiano, (The following Members (at the re- Mr. KIND. Mr. BARRETT of Wisconsin. who plans to introduce legislation Monday quest of Mr. EDWARDS) to revise and ex- Mr. SCHUMER on H.R. 6 in the Com- requiring more openness from nonprofits get- tend their remarks and include extra- mittee of the Whole today. ting city money. neous material:) ‘‘We need to make sure the accountability f is there so we aren’t kept in the dark about Mr. RUSH, for 5 minutes, today. what these organizations are doing to earn Ms. JACKSON LEE of Texas, for 5 min- ADJOURNMENT their keep,’’ Ammiano said. utes, today. Mr. CONYERS. Mr. Speaker, I move Mr. GREEN, for 5 minutes, today. TOP-EARNING CHARITY EXECUTIVES that the House do now adjourn. Mr. BENTSEN, for 5 minutes, today. These executives earned the highest com- The motion was agreed to; accord- pensation packages of the 28 AIDS charities Mr. CONYERS, for 5 minutes, today. ingly (at 11 o’clock and 55 minutes and other nonprofits that have so far pro- Mr. HINCHEY, for 5 minutes, today. p.m.), the House adjourned until to- vided IRS information to Project Account- Mrs. CLAYTON, for 5 minutes, today. morrow, Thursday, May 7, 1998, at 10 ability. Mr. KANJORSKI, for 5 minutes, today. a.m. AIDS Healthcare Foundation-Los Angeles, Mr. PALLONE, for 5 minutes, today. f $30 million annual budget: Michael Mr. BARRETT of Wisconsin, for 5 min- Weinstein, President, $126,548. utes, today. REPORTS OF COMMITTEES ON AIDS Project Los Angeles, $16 million an- (The following Members (at the re- PUBLIC BILLS AND RESOLUTIONS nual budget: James Earl Loyce Jr., Execu- tive director, $144,227; William Misenhimer, quest of Mr. McCrery) to revise and ex- Under clause 2 of rule XIII, reports of Chief financial officer, $114,321; Allen Car- tend their remarks and include extra- committees were delivered to the Clerk rier, Director, $109,915. neous material:) for printing and reference to the proper American Foundation for AIDS Research- Mr. GUTKNECHT, for 5 minutes, today. calendar, as follows: New York, $17 million annual budget: Je- Mr. MORAN of Kansas, for 5 minutes, Mr. BLILEY: Committee on Commerce. rome Radwin, Chief operating officer, today. H.R. 2217. A bill to extend the deadline under $181,443; John Logan, General counsel, Mr. COBURN, for 5 minutes, today. the Federal Power Act applicable to the con- $104,391; Ellen Cooper, MD MPH, Vice presi- Mr. FOX of Pennsylvania, for 5 min- struction of FERC Project Number 9248 in dent, $157,597; Sally Morrison, Vice presi- utes, today. the State of Colorado, and for other purposes dent, $100,186. f (Rept. 105–509). Referred to the Committee of Food and Friends, Washington DC meal the Whole House on the State of the Union. program, $4 million annual budget: Craig EXTENSION OF REMARKS Mr. BLILEY: Committee on Commerce. Shniderman, Executive director, $102,125. H.R. 2841. A bill to extend the time required Gay Men’s Health crisis-New York, $28 mil- By unanimous consent, permission to for the construction of a hydroelectric lion annual budget: Mark Robinson, Execu- revise and extend remarks was granted project (Rept. 105–510). Referred to the Com- tive director, $153,565; Addie Guttag, Deputy to: mittee of the Whole House on the State of director, $139,337; Michael Isbel, Deputy di- (The following Members (at the re- the Union. rector, $139,337. quest of Mr. EDWARDS) and to include Mr. GOSS: Committee on Rules. House Lambda Legal Defense and Education extraneous matter:) Resolution 420. Resolution providing for con- Fund-New York, $4 million annual budget: Mr. KIND. sideration of the bill (H.R. 3694) to authorize Kevin Cathcart, Executive director, $138,591. appropriations for fiscal year 1999 for intel- Mr. GEJDENSON. Los Angeles Gay and Lesbian Community ligence and intelligence-related activities of Services, $17 million annual budget: Name Mr. ROTHMAN. the United States Government, the Commu- not provided, Executive director, $127,803. Mr. VISCLOSKY. nity Management Account, and the Central San Francisco AIDS Foundation, $16 mil- Mr. HILLIARD. Intelligence Agency Retirement and Disabil- lion annual budget: Pat Christen, Executive Mr. FRANK of Massachusetts. ity System, and for other purposes (Rept. director, $162,294; Jane Breyer, Development Ms. EDDIE BERNICE JOHNSON of Texas. 105–511). Referred to the House Calendar. director, $117,633; Lance Henderson, Finance Mr. BLUMENAUER. Mr. SHUSTER: Committee on Transpor- director, $110,465; Rene Durazzo, Program di- tation and Infrastructure. House Concurrent Mr. KUCINICH. rector, $100,362. Resolution 262. Resolution authorizing the Walden House-San Francisco substance Mr. TOWNS. 1998 District of Columbia Special Olympics abuse program, $14 million annual budget: Mr. MARKEY. Law Enforcement Torch Run to be run Alfonso Acampora, Chief executive officer, Mr. BARRETT of Wisconsin in two in- through the Capitol Grounds; with an $185,810. stances. amendment (Rept. 105–512). Referred to the Whitman-Walker Clinic-Washington DC, Mr. MOAKLEY. House Calendar. $16 million annual budget: James Graham, Mr. STARK. Mr. SHUSTER: Committee on Transpor- Executive director, $141,548; Harold Hawley, Mr. BROWN of California. tation and Infrastructure. House Concurrent Medical director, $117,860. Resolution 265. Resolution authorizing the Mr. BLAGOJEVICH. Source: summaries of charities’ most re- use of the East Front of the Capitol Grounds cent IRS 990 forms posted on the Account- Mr. GREEN. for performances sponsored by the John F. ability Project Web site. Some charities’ re- Mr. PALLONE. Kennedy Center for the Performing Arts ports cover the fiscal year 1995–96, while oth- Mr. BORSKI. (Rept. 105–513). Referred to the House Cal- ers cover calendar year 1996. Mr. RAHALL. endar. f (The following Members (at the re- Mr. SHUSTER: Committee on Transpor- quest of Mr. MCCRERY) and to include tation and Infrastructure. House Concurrent LEAVE OF ABSENCE extraneous matter:) Resolution 263. Resolution authorizing the use of the Capitol Grounds for the seven- By unanimous consent, leave of ab- Mr. GILMAN. teenth annual National Peace Officers’ Me- sence was granted to: Mr. WELLER. morial Service: with an amendment (Rept. Ms. CARSON (at the request of Mr. Mr. ARMEY. 105–514). Referred to the House Calendar. GEPHARDT) for today, on account of of- Mr. PITTS. f ficial witness. Mr. MCHUGH. Mr. DOYLE (at the request of Mr. Mr. WALSH. PUBLIC BILLS AND RESOLUTIONS GEPHARDT) for today after 6:00 p.m., on (The following Members (at the re- Under clause 5 of Rule X and clause 4 account of family business. quest of Mr. EDWARDS) and to include of Rule XXII, public bills and resolu- Mr. RADANOVICH (at the request of extraneous matter:) tions were introduced and severally re- Mr. ARMEY) for today and the balance Mr. YATES. ferred, as follows: May 6, 1998 CONGRESSIONAL RECORD — HOUSE H2931 By Mr. MENENDEZ: ADDITIONAL SPONSORS H.R. 3001: Mr. GREENWOOD, Mr. WAXMAN, Mr. BACHUS, and Ms. MILLENDER-MCDONALD. H.R. 3798. A bill to amend section 258 of the Under clause 4 of rule XXII, sponsors Communications Act of 1934 to protect tele- H.R. 3048: Mr. BLUNT. phone consumers against ‘‘cramming’’ of were added to public bills and resolu- H.R. 3067: Mr. TRAFICANT and Mr. KILDEE. charges on their telephone bills; to the Com- tions as follows: H.R. 3099: Mr. KLECZKA and Mr. MCHUGH. mittee on Commerce. H.R. 339: Mr. GREENWOOD. H.R. 3110: Mrs. EMERSON, Mr. MURTHA, and By Mr. MICA (for himself, Mr. H.R. 530: Mrs. JOHNSON of Connecticut and Mr. PETERSON of Pennsylvania. PORTMAN, Mr. HASTERT, Mr. SOUDER, Mr. SOLOMON. H.R. 3131: Mr. TORRES and Mr. HOBSON. Mr. MCCOLLUM, Ms. ROS-LEHTINEN, H.R. 538: Mr. FROST. H.R. 3176: Mr. INGLIS of South Carolina. and Mr. GOSS): H.R. 628: Mr. KENNEDY of Rhode Island. H.R. 3189: Mr. BAKER, Mr. STUMP, Mr. CAN- ADY of Florida, and Mr. RIGGS. H.R. 3799. A bill to establish programs de- H.R. 633: Mr. HOUGHTON. H.R. 3206: Mr. NORWOOD. signed to bring about drug free teenage driv- H.R. 678: Mr. BURTON of Indiana, Mr. H.R. 3234: Mr. ARMEY. ing; to the Committee on Transportation and FOSSELLA, Mr. HANSEN, Mrs. KELLY, Mr. H.R. 3284: Mr. MORAN of Kansas and Mr. Infrastructure. PARKER, Mr. TIAHRT, Mr. HERGER, Mr. CANADY of Florida. By Mr. ANDREWS: MCKEON, Mr. DICKEY, Mrs. CHENOWETH, and Mr. REYES. H.R. 3304: Mr. DREIER, Ms. ROS-LEHTINEN, H.R. 3800. A bill to amend the Foreign As- H.R. 696: Mr. MORAN of Virginia. and Mr. BLILEY. sistance Act of 1961 to require that assist- H.R. 814: Mr. MARTINEZ. H.R. 3342: Mr. CLAY. ance provided to a foreign country under H.R. 859: Mr. JENKINS. H.R. 3351: Mrs. EMERSON. part I of that Act, other than assistance pro- H.R. 944: Mr. LARGENT. H.R. 3396: Mr. PASTOR, Mr. STEARNS, Mrs. vided on a cash transfer basis, shall be in the H.R. 950: Mr. MEEKS of New York. FOWLER, Mr. BALLENGER, Mr. REGULA, Mr. form of credits redeemable only for the pur- H.R. 953: Mr. HILLIARD and Mr. SCHUMER. SOLOMON, Ms. PRYCE of Ohio, Mrs. chase of United States goods and services; to H.R. 979: Mr. HAYWORTH, Mrs. CAPPS, and CHENOWETH, Mr. MANZULLO, Mr. NUSSLE, Mr. the Committee on International Relations. Mr. BARRETT of Nebraska. FAZIO of California, Mrs. JOHNSON of Con- By Mr. ANDREWS: H.R. 1126: Mr. JOHN and Mr. SABO. necticut, Mr. SMITH of New Jersey, Mr. H.R. 3801. A bill to amend title 11 of the H.R. 1173: Mr. SCOTT, Mr. JEFFERSON, and LATOURETTE, and Mr. NETHERCUTT. United States Code to modify the application Mr. GUTIERREZ. H.R. 3400: Mr. LANTOS. of chapter 7 relating to liquidation cases; to H.R. 1219: Mrs. CAPPS. H.R. 3410: Mr. METCALF, Mr. PICKETT, Mr. the Committee on the Judiciary. H.R. 1231: Ms. DANNER. NETHERCUTT, Mr. BARRETT of Nebraska, Mr. By Mrs. LOWEY (for herself, Mr. H.R. 1289: Mr. DIAZ-BALART and Mr. SHAW. BISHOP, Mr. BOYD, Mr. BRYANT, Mr. CALVERT, EVANS, Mr. KENNEDY of Rhode Island, H.R. 1376: Mrs. CAPPS and Mr. LAMPSON. Mr. CANADY of Florida, Mr. CHAMBLISS, Mr. Mrs. MORELLA, Mr. FRANK of Massa- H.R. 1492: Mr. ROGAN. COBLE, Mr. CONDIT, Ms. DUNN of Washington, chusetts, Mr. OLVER, Ms. WOOLSEY, H.R. 1524: Mr. SANDERS. Mrs. EMERSON, Mr. FOLEY, Mrs. JOHNSON of Mr. MCGOVERN, Mr. KUCINICH, Mrs. H.R. 1628: Mr. SHAW and Mr. NADLER. Connecticut, Mr. MCCRERY, Mr. MCHUGH, Mr. H.R. 1671: Ms. PELOSI. MALONEY of New York, Mr. SANDERS, NORWOOD, Mr. PAXON, Mr. PICKERING, Mr. H.R. 1706: Mr. BARRETT of Wisconsin. Mr. HALL of Ohio, Mr. WAXMAN, Ms. POMBO, Mr. SOLOMON, and Mr. SMITH of H.R. 1766: Mr. BASS, Ms. BROWN of Florida, SLAUGHTER, Mr. TOWNS, Mr. VENTO, Michigan. Mr. COOKSEY, Mr. CRAPO, Mr. FORD, Mr. GIL- Mr. BLAGOJEVICH, Mr. YATES, Ms. H.R. 3433: Mr. HOUGHTON, Mr. NUSSLE, Mr. MAN, Mr. JONES, Mrs. MCCARTHY of New ROYBAL-ALLARD, Mr. LUTHER, Mr. WELLER, Mr. MCDERMOTT, and Mr. LEVIN. York, Mr. MCCRERY, Mr. MEEKS of New STUPAK, and Mr. SERRANO): H.R. 3466: Mr. HINCHEY, Mrs. MALONEY of York, Mr. OBERSTAR, Ms. PRYCE of Ohio, and H.R. 3802. A bill to prohibit the provision of New York, and Mr. HILLIARD. Mr. THUNE. defense services and training under the Arms H.R. 3475: Mr. SHAYS, Mr. MALONEY of Con- H.R. 1813: Mr. GONZALEZ and Ms. FURSE. Export Control Act or any other Act to for- necticut, Mr. NADLER, and Mr. HYDE. H.R. 1913: Mr. BENTSEN. H.R. 3494: Mr. HASTERT and Ms. LOFGREN. eign countries that are prohibited from re- H.R. 2077: Mr. HINCHEY and Mr. MARKEY. H.R. 3504: Mr. DUNCAN. ceiving international military education and H.R. 2183: Mr. TAUZIN. H.R. 3517: Mr. ENGLISH of Pennsylvania, training under chapter 5 of part II of the H.R. 2273: Mr. MOLLOHAN, Mr. BARCIA of Mr. LAFALCE, Mr. HILLIARD, Mr. DEFAZIO, Foreign Assistance Act of 1961; to the Com- Michigan, Mr. HOLDEN, Mr. SNYDER, Mr. Mr. UNDERWOOD, Mr. FALEOMAVAEGA, Mr. mittee on International Relations. CAMPBELL, Mr. LEWIS of Kentucky, Mr. GEKAS, Mrs. CLAYTON, and Ms. ESHOO. By Mr. REYES: UNDERWOOD, Mr. LEACH, Mr. BILIRAKIS, Mr. H.R. 3523: Mr. YOUNG of Alaska, Mr. H.R. 3803. A bill to amend the National COYNE, Mrs. CAPPS, Mr. DEUTSCH, Mr. KAN- CHRISTENSEN, Mrs. CAPPS, Mr. WELLER, Mr. Trails System Act to designate El Camino JORSKI, and Mr. MOAKLEY. ABERCROMBIE, Mr. POMEROY, Mr. LAHOOD, Real de Tierra Adentro as a National His- H.R. 2275: Mr. RUSH, Mrs. MALONEY of New and Mr. LUCAS of Oklahoma. toric Trail; to the Committee on Resources. York, Mr. RANGEL, and Mr. BALDACCI. H.R. 3524: Mr. ENGEL. By Mr. SCARBOROUGH: H.R. 2313: Mr. KING of New York. H.R. 3531: Mr. EVANS, Mr. SANDERS, and H.R. 3804. A bill to require that any H.R. 2377: Mr. COBLE, Mr. GILCHREST, Mr. Ms. FURSE. amounts appropriated in a fiscal year for the MCCRERY, Mr. PICKETT, Mrs. THURMAN, and H.R. 3534: Mr. RILEY, Mr. ADERHOLT, Mr. House of Representatives for members’ rep- Mr. METCALF. HOBSON, Mr. MCHUGH, Mr. BLUNT, Mr. SEN- resentational allowances which remain unex- H.R. 2408: Mr. SHERMAN and Mrs. SENBRENNER, Mr. GILLMOR, Mr. BARR of Geor- pended after all payments are made under TAUSCHER. gia, Mr. MCINTOSH, Mr. LEWIS of Kentucky, such allowances for the fiscal year shall be H.R. 2409: Mr. RUSH. Mr. HAYWORTH, Mr. THORNBERRY, Mr. MAN- used to repay amounts borrowed from the H.R. 2454: Mr. MEEKS of New York. ZULLO, Mr. LAHOOD, Mr. ENGLISH of Pennsyl- old-age, survivors, and disability insurance H.R. 2457: Mr. MEEKS of New York. vania, Mr. ROGAN, Mr. SUNUNU, and Mr. BE- programs under title II of the Social Secu- H.R. 2500: Mr. ADERHOLT. REUTER. rity Act; to the Committee on House Over- H.R. 2504: Mr. FILNER. H.R. 3547: Mr. GOODE and Mr. WAMP. sight. H.R. 2523: Mr. BONIOR. H.R. 3561: Ms. SLAUGHTER. By Mr. ARMEY: H.R. 2547: Mr. OLVER. H.R. 2593: Mr. ROTHMAN and Mr. WYNN. H.R. 3566: Mr. FRANKS of New Jersey. H. Con. Res. 272. Concurrent resolution ex- H.R. 2733: Mrs. MALONEY of New York, Mr. H.R. 3567: Mrs. EMERSON, Mr. KILDEE, and pressing the sense of the House on health ENGLISH of Pennsylvania, Mr. BEREUTER, Mr. Mr. ALLEN. care quality; to the Committee on Com- KILDEE, Ms. STABENOW, Mr. ORTIZ, Mr. H.R. 3570: Mr. KENNEDY of Massachusetts, merce. BONIOR, Mr. GEKAS, Ms. SLAUGHTER, Mr. Mr. MEEHAN, and Ms. LEE. IL By Mr. BRADY (for himself, Mr. G - ROGERS, and Mr. ETHERIDGE. H.R. 3577: Mr. ENGEL and Ms. PELOSI. MAN, Mr. GALLEGLY, Mr. ACKERMAN, H.R. 2748: Mr. JENKINS and Mr. BOEHLERT. H.R. 3604: Mr. DOOLEY of California, Ms. Mr. SMITH of New Jersey, Mr. MENEN- H.R. 2804: Mr. RUSH, Mr. FALEOMAVAEGA, PELOSI, Mr. SHERMAN, Mr. FILNER, Mr. BER- DEZ, Mr. BALLENGER, Mr. MARTINEZ, Mr. ETHERIDGE, and Mr. STUPAK. MAN, Mrs. TAUSCHER, and Mr. FARR of Cali- Mr. SANFORD, and Mr. DAVIS of Flor- H.R. 2898: Ms. SLAUGHTER and Mrs. LOWEY. fornia. ida): H.R. 2935: Mr. LEWIS of Georgia. H.R. 3613: Mr. LEWIS of California and Mr. H. Res. 421. A resolution expressing the H.R. 2938: Mr. LATOURETTE. STUPAK. sense of the House of Representatives deplor- H.R. 2942: Mr. HILLEARY, Mr. ENSIGN, Mr. H.R. 3624: Mr. LANTOS and Mrs. CLAYTON. ing the tragic and senseless murder of Bishop WATTS of Oklahoma, Mr. FOLEY, Mr. ORTIZ, H.R. 3626: Mr. BONILLA. Juan Jose Gerardi, calling on the Govern- Mr. DEAL of Georgia, and Mrs. MYRICK. H.R. 3629: Mr. JONES. ment of Guatemala to expeditiously bring H.R. 2951: Mr. JEFFERSON, Mr. MANZULLO, H.R. 3632: Mr. DIAZ-BALART, Mr. SOLOMON, those responsible for the crime to justice, Mr. WEYGAND, Mr. UPTON, Mr. MCGOVERN, Mr. LATOURETTE, Mr. KING of New York, Mr. and calling on the people of Guatemala to re- Mr. WYNN, Mr. BARRETT of Nebraska, and MCHUGH, Mr. NEY, Mr. LOBIONDO, Mr. affirm their commitment to continue to im- Mr. KILDEE. LAHOOD, Mr. KILDEE, Mr. BLUMENAUER, Mr. plement the peace accords without interrup- H.R. 2960: Mr. STENHOLM. ANDREWS, Ms. FURSE, and Mr. FORBES. tion; to the Committee on International Re- H.R. 3000: Mr. THOMAS and Mr. HALL of H.R. 3636: Ms. NORTON, Mr. STARK, and Mr. lations. Texas. PETRI. H2932 CONGRESSIONAL RECORD — HOUSE May 6, 1998

H.R. 3644: Mr. MATSUI. telligence shall submit a report to the Con- port to the Members of Congress specified in H.R. 3682: Mr. ADERHOLT. gress that describes the level of cooperation subsection (d) containing the information H.R. 3686: Mrs. CAPPS, Ms. SLAUGHTER, and and assistance provided to domestic Federal described in subsection (b). The first such re- Mrs. MALONEY of New York. law enforcement agencies by the intelligence port shall be submitted not later than 30 H.R. 3707: Mr. MCINTOSH, Mr. LEWIS of Ken- community during such fiscal year relating days after the date of the enactment of this tucky, Mr. BARTLETT of Maryland, Mr. to the effort to stop the flow of illegal drugs Act and subsequent reports shall be submit- HERGER, Mr. HOSTETTLER, Mr. DOOLITTLE, into the United States through the United ted annually thereafter. Each such report Mr. ARCHER, Mr. ROYCE, Mr. SHADEGG, Mr. States-Mexico border and the United States- shall be submitted in classified form and SESSIONS, Mr. BRADY, Mr. COMBEST, Mr. Canada border. shall be in the detail necessary to serve as a SMITH of Texas, Mr. DELAY, Mr. PAUL and H.R. 3694 basis for determining appropriate corrective Mr. KASICH. OFFERED BY: MS. WATERS action with respect to any transfer within H.R. 3713: Mr. BECERRA. AMENDMENT NO. 4: At the end of title IV, the meaning of subsection (b). H.R. 3734: Mrs. EMERSON, Mr. LOBIONDO, add the following new section: Mr. KING of New York, Mr. COMBEST, Mr. (b) IDENTIFICATION OF FOREIGN ENTITIES BLUNT, Ms. PRYCE of Ohio, Mr. INGLIS of SEC. 404. REVIEW OF 1995 MEMORANDUM OF UN- TRANSFERRING ITEMS OR TECHNOLOGIES.— DERSTANDING REQUIRING THE CIA South Carolina, Mr. REDMOND, Mr. JONES, Each report shall identify each covered en- TO REPORT TO THE ATTORNEY GEN- Mr. DOOLITTLE, Mr. SESSIONS, Mr. ROYCE, Mr. ERAL INFORMATION REGARDING tity which during the preceding 2 years TALENT, Mr. GOODE, Mr. FORBES, Mr. DRUG TRAFFICKING INVOLVING ITS transferred a controlled item to another en- SOUDER, Mr. POMBO, Mr. BURTON of Indiana, FORMER OR CURRENT OFFICERS, tity for use in any of the following: Mr. FRANKS of New Jersey, Mrs. LINDA SMITH STAFF EMPLOYEES, CONTRACT EM- (1) A missile project of concern (as deter- of Washington, Mr. BRADY, Mr. DELAY, and PLOYEES, ASSETS, OR OTHER PER- mined by the Director of Central Intel- Ms. DUNN of Washington. SON OR ENTITY PROVIDING SERV- ligence). ICE TO OR ACTING ON BEHALF OF H.R. 3775: Mr. LIVINGSTON. (2) Activities to develop, produce, stock- ANY AGENCY WITHIN THE INTEL- H.R. 3783: Mr. LAZIO of New York. LIGENCE COMMUNITY. pile, or deliver chemical or biological weap- H.J. Res. 108: Mr. LUTHER. (a) REVIEW OF 1995 MEMORANDUM OF UNDER- ons. H. Con. Res. 65: Mrs. CAPPS. STANDING REGARDING REPORTING OF INFORMA- (3) Nuclear activities in countries that do H. Con. Res. 203: Mr. STUPAK. TION CONCERNING FEDERAL CRIMES.—The At- not maintain full scope International Atom- H. Con. Res. 229: Mrs. LOWEY and Mr. PACK- torney General shall review the 1995 ‘‘Memo- ic Energy Agency safeguards or equivalent ARD. randum of Understanding: Reporting of In- full scope safeguards. H. Con. Res. 239: Ms. KAPTUR. formation Concerning Federal Crimes’’ be- (c) DEFINITIONS.—For the purposes of this H. Con. Res. 249: Mr. ABERCROMBIE. tween the Attorney General, Secretary of section: H. Con. Res. 254: Mr. BARTLETT of Mary- Defense, Director of Central Intelligence, Di- land. (1) CONTROLLED ITEM.—(A) The term ‘‘con- rector of National Security Agency, Director H. Con. Res. 258: Mr. LUTHER, Mr. KUCINICH, trolled item’’ means any of the following of Defense Intelligence Agency, Assistant Mr. MENENDEZ, Mr. EVANS, Mr. DIXON, Ms. items (including technology): Secretary of State, Intelligence and Re- LOFGREN, Mrs. MALONEY of New York, Mr. (i) Any item on the MTCR Annex. search, and Director of Office of Non-Pro- SABO, Mr. HOBSON, Mr. HYDE, Mr. KENNEDY of (ii) An item listed for control by the Aus- liferation and National Security, Depart- Massachusetts, Ms. PELOSI, Mr. DELAHUNT, tralia Group. ment of Energy. This review shall determine Mr. HOYER, Mr. STUPAK, and Mr. SERRANO. (iii) Any item listed for control by the Nu- whether the 1995 Memorandum of Under- H. Con. Res. 267: Mr. BATEMAN and Mr. clear Suppliers Group. standing requires: WEXLER. (B) AUSTRALIA GROUP.—The term ‘‘Aus- (i) REPORT TO THE ATTORNEY GENERAL.— H. Con. Res. 271: Mr. KENNEDY of Massachu- tralia Group’’ means the multilateral regime Whenever the Director of Central Intel- setts, Mr. MEEHAN, Mr. MCGOVERN, Mrs. in which the United States participates that ligence has knowledge of facts or cir- MALONEY of New York, Mr. TORRES, Mrs. seeks to prevent the proliferation of chemi- cumstances that reasonably indicate any KENNELLY of Connecticut, Mr. RUSH, Mr. cal and biological weapons. former or current officers, staff employees, BONIOR, Ms. PELOSI, Mr. FOX of Pennsyl- (C) MTCR ANNEX.—The term ‘‘MTCR contract employees, assets, or other person vania, and Mr. SHERMAN. Annex’’ has the meaning given that term in or entity providing service to, or acting on H. Res. 212: Mr. BLUMENAUER, Mr. BROWN of section 74 of the Arms Export Control Act (22 behalf of, any agency within the intelligence California, Mr. BONIOR, Mrs. CAPPS, Mr. U.S.C. 2797c). community has been involved with, is in- CUNNINGHAM, Mr. ENGEL, Ms. FURSE, Mr. (D) NUCLEAR SUPPLIERS’ GROUP.—The term volved with, or will be involved with drug GEJDENSON, Mr. GORDON, Mr. JEFFERSON, Mr. ‘‘Nuclear Suppliers’ Group’’ means the mul- trafficking or any violations of U.S. drug JENKINS, Mrs. MYRICK, Mr. NORWOOD, Mr. tilateral arrangement in which the United laws, the Director shall report such informa- POMEROY, Mr. SABO, Mr. ADAM SMITH of States participates whose purpose is to re- tion to the Attorney General of the United Washington, Mr. SMITH of New Jersey, Mr. strict the transfers of items with relevance States. THOMPSON, and Mr. TORRES. to the nuclear fuel cycle or nuclear explosive (ii) DUTY OF INTELLIGENCE EMPLOYEES TO H. Res. 392: Mr. FALEOMAVAEGA and Mr. applications. REPORT.—Each employee of any agency ROYCE. (2) COVERED ENTITY.—The term ‘‘covered within the intelligence community who has entity’’ means a foreign person, corporation, H. Res. 418: Mr. OBEY, Mr. BONIOR, Mr. KIL- knowledge of facts or circumstances that DEE, Mr. LEVIN, Mr. ENGLISH of Pennsyl- business association, partnership, society, reasonably indicate any former or current trust, or other nongovernmental organiza- vania, Ms. KILPATRICK, Mr. SAWYER, Mr. officers, staff employees, contract employ- MCHUGH, and Mr. LATOURETTE. tion or group or any government entity oper- ees, assets, or other person or entity provid- ating as a business. Such term includes any f ing service to, or acting on behalf of, any successor to any such entity. AMENDMENTS agency within the intelligence community (3) MISSILE PROJECT.—(A) The term ‘‘mis- has been involved with, is involved with, or sile project’’ means a project or facility for Under clause 6 of rule XXIII, pro- will be involved with drug trafficking or any the design, development, or manufacture of a posed amendments were submitted as violations of U.S. drug laws, shall report missile. follows: such information to the Director of Central (B) The term ‘‘missile’’ has the meaning H.R. 3694 Intelligence. given that term in section 74 of the Arms Ex- (b) PUBLIC REPORT.—Upon completion of port Control Act (22 U.S.C. 2797c). OFFERED BY: MR. TRAFFICANT review, the Attorney General shall publicly AMENDMENT NO. 3: In title III of the bill, report its findings. (d) SPECIFIED MEMBERS OF CONGRESS.—The add at the end the following new section: H.R. 3694 Members of Congress referred to in this sub- section are the following: SEC. 305. ANNUAL REPORT ON INTELLIGENCE OFFERED BY: MR. WELDON OF PENNSYLVANIA COMMUNITY COOPERATION WITH (1) The chairman and ranking minority MENDMENT O DOMESTIC FEDERAL LAW ENFORCE- A N . 5: At the end of title III, party member of the House Permanent Se- MENT AGENCIES. add the following new section: lect Committee on Intelligence. Not later than 90 days after the end of each SEC. 305. PROLIFERATION REPORT. (2) The chairman and ranking minority fiscal year ending after the date of the enact- (a) ANNUAL REPORT.—The Director of Cen- party member of the Senate Select Commit- ment of this Act, the Director of Central In- tral Intelligence shall submit an annual re- tee on Intelligence. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, SECOND SESSION

Vol. 144 WASHINGTON, WEDNESDAY, MAY 6, 1998 No. 55 Senate The Senate met at 9:30 a.m. and was hoped that the Senate will make good form the Internal Revenue Service, and for called to order by the President pro progress on the IRS bill today in an ef- other purposes. tempore (Mr. THURMOND). fort to finish this important legislation The Senate resumed consideration of by tonight or Thursday. the bill. PRAYER Senators should expect rollcall votes Mr. ROTH addressed the Chair. Sovereign Lord, help us to see our throughout today’s session on amend- work here in government as our divine ments to the IRS bill, or any other leg- The PRESIDENT pro tempore. The calling, our mission. Whatever we are islative or executive items cleared for Senator from Delaware. called to do today, we want to do our action. Mr. ROTH. Mr. President, I further very best for Your glory. Our desire is I thank my colleagues for their at- ask that at the conclusion or yielding not just to do different things, but to tention. back of time the Senate proceed to do the same old things differently: with f vote on the Roth amendment followed freedom, joy and excellence. Give us UNANIMOUS CONSENT by a vote on the Kerrey amendment. new delight for matters of drudgery, AGREEMENT—H.R. 2676 The PRESIDING OFFICER (Mr. new patience for people who are dif- Mr. ALLARD. Mr. President, I ask ALLARD). Without objection, it is so or- ficult, new zest for unfinished details. unanimous consent that after Senator dered. Be our lifeline in the pressures of dead- ROTH offers his amendment regarding Mr. ROTH. Mr. President, before we lines, our rejuvenation in routines, and offsets, the amendment be temporarily begin debate today, I would like to our endurance whenever we feel ex- set aside; further, that Senator KERREY offer some comments about the con- hausted. May we spend more time talk- then be recognized to offer his amend- sent agreement that governs the offer- ing to You about issues than we do ment regarding offsets and there then ing of amendments. Basically, amend- talking to others about issues. So may be a total of 1 hour equally divided for ments that are to be in order must be our communion with You give us deep debate on both amendments. relevant to the purpose of the IRS re- convictions and high courage to defend The PRESIDENT pro tempore. With- form legislation, which covers three them. Spirit of the living God, fall out objection, it is so ordered. major areas. afresh on us so we may serve with fresh Mr. KERREY. Mr. President, I won- First, it reorganizes, restructures, dedication today. In the Lord’s Name. der if the chairman of the Finance and re-equips the IRS to make it more Amen. Committee would mind. We don’t have customer friendly in its tax-collecting f the amendment quite prepared. We mission. may need to modify it slightly in order RECOGNITION OF THE ACTING Second, it protects taxpayers from to deal with the difficulty we are hav- MAJORITY LEADER abusive practices and procedures of the ing. I wonder if the UC can be modified IRS. The PRESIDENT pro tempore. The so we could be allowed to modify our able acting majority leader is recog- amendment. Third, it deals with the management nized. Mr. President, I ask unanimous con- and conduct of IRS employees. f sent that the unanimous consent re- These are the main purposes of the SCHEDULE quest be modified so that we be allowed bill. While there are provisions dealing to modify our amendments with a rel- with electronic filing and congres- Mr. ALLARD. Mr. President, this evant modification. sional oversight, that is basically what morning the Senate will resume con- The PRESIDENT pro tempore. With- this bill does. sideration of H.R. 2676, the IRS reform out objection, it is so ordered. bill. Under the previous order, Senator Title 6 of the bill is an entirely dif- f ROTH will be immediately recognized ferent matter. That title contains tech- to offer his so-called ‘‘pay for’’ amend- INTERNAL REVENUE SERVICE RE- nical amendments that run the breadth ment. It is hoped that after the Roth STRUCTURING AND REFORM ACT of the tax code. In the House of Rep- amendment is offered Senator KERREY OF 1998 resentatives, this title was reported by will offer his ‘‘pay for’’ amendment and The PRESIDENT pro tempore. The the Ways and Means Committee as a a short-time agreement can be worked clerk will report the pending business. separate bill—which, in fact, it is. out with respect to both amendments. The assistant legislative clerk read Title 6 is unrelated to IRS reform. It As a reminder, an agreement was as follows: contains only technical corrections to reached yesterday limiting the bill to A bill (H.R. 2676) to amend the Internal previously enacted tax legislation that relevant amendments. Therefore, it is Revenue Code of 1986 to restructure and re- meet the following criteria:

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

S4379

.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4380 CONGRESSIONAL RECORD — SENATE May 6, 1998 First, they carry out the original in- ‘‘(I) any amount included in gross income operating losses that are eligible for a tent of Congress in enacting the provi- under subsection (d)(3) shall not be taken special ten year carry back. Congress sion being amended. into account, and intended this treatment to be limited Second, by definition, the technical ‘‘(II) any amount included in gross income to a narrow category of activities. This by reason of a required distribution under a correction does not score as a revenue provision described in paragraph (5) shall not proposal simply clarifies the types of gain or loss. be taken into account for purposes of sub- losses eligible for this special treat- Third, the policy has been approved paragraph (B)(i).’’ ment. This proposal is noncontrover- by the Treasury Department, the Joint (b) EFFECTIVE DATE.—The amendment sial. Committee on Taxation, and the ma- made by this section shall apply to taxable The second new revenue raiser re- jority and minority of both the House years beginning after December 31, 2004. lates to the rollover rules for Roth Ways and Means Committee and the SEC. 5009. EXTENSION OF INTERNAL REVENUE IRAs. Under current law, individuals or Senate Finance Committee. SERVICE USER FEES. Subsection (c) of section 10511 of the Rev- married couples with adjusted gross in- As a consequence, amendments which enue Act of 1987 is amended by striking ‘‘Oc- come over $100,000 cannot rollover a are relevant because of provisions in tober 1, 2003’’ and inserting ‘‘October 1, 2007’’. traditional IRA into a Roth IRA. For title 6 must meet a more difficult The PRESIDING OFFICER. Under purposes of the $100,000 test, minimum standard under the consent agreement. the previous order, the amendment is distributions which are required when They must not only be relevant, but 1 now set aside. an IRA beneficiary reaches 70 ⁄2 are must be cleared but the two managers Does the Senator from Nebraska wish counted as income. and the two leaders. And in clearing to offer his amendment? This second new raiser would modify provisions that relate to title 6, I will AMENDMENT NO. 2340 current law by excluding minimum dis- apply the same criteria that the provi- tributions from the $100,000 test. The sions of title 6 had to meet to become (Purpose: To ensure compliance with Federal budget requirements) effect of this proposal is to allow more part of that title. 1 Mr. KERREY. Mr. President, I send taxpayers, at age 70 ⁄2 and above, to I hope this explanation provides a an amendment to the desk. rollover from a traditional IRA to a clearer understanding of the applica- The PRESIDING OFFICER. The Roth IRA. This proposal will enlarge tion of the consent agreement to pos- clerk will report. the group of taxpayers who can enjoy sible amendments. The assistant legislative clerk read the benefits of the Roth IRA. AMENDMENT NO. 2339 as follows: The third new raiser would extend (Purpose: To ensure compliance with Federal The Senator from Nebraska (Mr. KERREY) the current law user fees charge by the budget requirements) proposes an amendment numbered 2340. IRS for private letter rulings. This ex- Mr. ROTH. Mr. President, I send an Mr. KERREY. Mr. President, I ask tension would be effective for four amendment to the desk. unanimous consent that reading of the years. The PRESIDING OFFICER. The amendment be dispensed with. Let me note that the IRS restruc- clerk will report. The PRESIDING OFFICER. Without turing bill uses the balance on the pay- The assistant legislative clerk read objection, it is so ordered. go scorecard of $406 million in the last as follows: (The text of the amendment is print- five years as an offset. We have been The Senator from Delaware (Mr. ROTH) ed in today’s RECORD under ‘‘Amend- informed by the Budget Committee proposes an amendment numbered 2339. ments submitted.’’) staff that the use of the pay-go balance Mr. ROTH. Mr. President, I ask unan- Mr. ROTH addressed the Chair. is appropriate in this instance. imous consent that reading of the The PRESIDING OFFICER. The Sen- Finally, this amendment modifies an amendment be dispensed with. ator from Delaware. effective date of a revenue raiser in the The PRESIDING OFFICER. Without The Senator from Delaware has 30 Finance Committee bill. The proposal objection, it is so ordered. minutes under his control. modified is the proposal to limit the The amendment is as follows: AMENDMENT NO. 2339 carry back period of the foreign tax On page 401, strike line 3, and insert: ‘‘be- Mr. ROTH. Mr. President, I yield my- credit. Under this amendment, the ef- ginning after December 31, 1998’’. self 5 minutes. fective date of the foreign tax credit On page 415, between lines 16 and 17, insert: Mr. President, under the Senate’s raiser has been moved out one year to SEC. 5007. CLARIFICATION OF DEFINITION OF tax years beginning after 1998. SPECIFIED LIABILITY LOSS. budget rules, the first year, first five years, and second five years of revenue Now, Mr. President, some on the (a) IN GENERAL.—Subparagraph (B) of sec- other side may criticize the most sig- tion 172(f)(1) (defining specified liability loss) losses in a tax bill must be offset with is amended to read as follows: either mandatory savings or revenue nificant new revenue raiser in this ‘‘(B) Any amount (not described in sub- increases. package. The target of their criticism paragraph (A)) allowable as a deduction When the Finance Committee is the proposal to allow more older tax- under this chapter which is attributable to a marked up the underlying bill, the first payers to convert to Roth IRAs. liability— five years of revenue loss were offset. As I see it, those criticizing the roll- ‘‘(i) under a Federal or State law requiring The second five years of revenue loss over provision have the objective of the reclamation of land, decommissioning of limiting retirement savings choices for a nuclear power plant (or any unit thereof), were not fully offset. The IRS Restruc- dismantlement of an offshore drilling plat- turing bill was short in excess of $9 bil- taxpayers who reach the end of their form, remediation of environmental con- lion in the last five years. During the working years. For taxpayers who tamination, or payment of workmen’s com- markup, I indicated that I would work reach 701⁄2, the opponents of the roll- pensation, and with the Budget Committee to attempt over provision are saying those tax- ‘‘(ii) with respect to which the act (or fail- to find offsets so that the bill would be payers should fall under a more restric- ure to act) giving rise to such liability oc- fully paid for over the last five years. tive rule than those taxpayers under curs at least 3 years before the beginning of Finding offsets was not an easy task. 701⁄2. the taxable year.’’ If you are over 701⁄2 and you are a (b) EFFECTIVE DATE.—The amendment Every major revenue raiser I consid- made by this section shall apply to net oper- ered brought forth opposition from dif- middle income person who has a ating losses arising in taxable years begin- ferent members. After several weeks of healthy IRA or pension plan, the oppo- ning after the date of the enactment of this reviewing options, I have developed a nents of the rollover provision are ar- Act. package, in consultation with the lead- guing you should not have the choice SEC. 5008. MODIFICATION OF AGI LIMIT FOR ership. of a Roth IRA. CONVERSIONS TO ROTH IRAS. Mr. President, this pay-for package Alan Greenspan says America’s most (a) IN GENERAL.—Section 408A(c)(3)(C)(i) contains three new revenue raisers and important economic problem is its low (relating to limits based on modified ad- a change to a revenue raiser in the un- savings rate. It is a problem that we justed gross income) is amended to read as follows: derlying bill. must address. The rollover provision in ‘‘(i) adjusted gross income shall be deter- The first revenue raiser comes from this amendment is a small step toward mined in the same manner as under section the Administration’s budget. This pro- resolving our number 1 economic prob- 219(g)(3), except that— posal would tighten the definition of lem.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4381 Mr. President, I ask unanimous con- Description of proposal 50 percent of the required distribution ap- sent that a technical description of Under the proposal, specified liability plies to the extent a required distribution is this amendment, and a revised revenue losses would be defined and limited to in- not made. table for the IRS restructuring bill, clude (in addition to product liability losses) Under present law, all or any part of prepared by the Joint Committee on only amounts allowable as a deduction that amounts held in a deductible or nondeduct- are attributable to a liability that arises ible IRA may be converted into a Roth IRA. Taxation, be printed in the RECORD. There being no objection, the mate- under Federal or State law for reclamation Only taxpayers with adjusted gross income of land, decommissioning of a nuclear power (‘‘AGI’’) of $100,000 or less are eligible to con- rial was ordered to be printed in the plant (or any unit thereof), dismantlement of vert an IRA into a Roth IRA. In the case of RECORD, as follows: an offshore oil drilling platform, remediation a married taxpayer, AGI is the combined DESCRIPTION OF ROTH FINANCING AMENDMENT of environmental contamination, or pay- AGI of the couple. Married taxpayers filing a TO THE INTERNAL REVENUE SERVICE RE- ments arising under a workers’ compensa- separate return are not eligible to make a STRUCTURING AND REFORM ACT OF 1998 AS tion statute, if the act (or failure to act) giv- conversion. REPORTED BY THE SENATE COMMITTEE ON ing rise to such liability occurs at least 3 Description of proposal FINANCE years before the beginning of the taxable A. FOREIGN TAX CREDIT CARRYBACK AND year. No inference regarding the interpreta- The proposal would modify the definition CARRYOVER PERIODS (SEC. 5002 OF THE BILL) tion of the specified liability loss carryback of AGI to exclude required minimum dis- Under the bill, the provision is effective rules under current law would be intended by tributions from the taxpayer’s AGI solely for with respect to credits arising in taxable this proposal. purposes of determining eligibility to con- vert from an IRA to a Roth IRA. As under years ending after the date of enactment. Effective date present law, the required minimum distribu- Under the modification, the provision would The proposal would be effective for net op- be effective with respect to credits arising in tion would not be eligible for conversion and erating losses arising in taxable years begin- taxable years beginning after December 31, would be includible in gross income. ning after the date of enactment. 1998. Effective date C. MODIFICATION OF MINIMUM DISTRIBUTION RE- B. RESTRICT SPECIAL NET OPERATING LOSS QUIREMENTS TO DETERMINE AGI FOR ROTH IRA The proposal would be effective for taxable CARRYBACK RULES FOR SPECIFIED LIABILITY CONVERSIONS years beginning after December 31, 2004. LOSSES Present law Present law D. EXTENSION OF IRS USER FEES Under present law, that portion of a net Under present law, uniform minimum dis- Present law operating loss that qualifies as a ‘‘specified tribution rules generally apply to all types of tax-favored retirement vehicles, including The IRS provides written responses to liability loss’’ may be carried back 10 years questions of individuals, corporations, and rather than being limited to the general two- qualified retirement plans and annuities, in- dividual retirement arrangements (‘‘IRAs’’) organizations relating to their tax status or year carryback period. A specified liability the effects of particular transactions for tax loss includes amounts allowable as a deduc- other than Roth IRAs, and tax-sheltered an- nuities (sec 403(b)). purposes in the form of ruling letters, deter- tion with respect to product liability, and mination letters, opinion letters, and other also certain liabilities that arise under Fed- Under present law, distributions are re- similar rulings or determinations. The IRS is eral or State law or out of any tort of the quired to begin no later than the partici- directed by statute to establish a user fee taxpayer. In the case of a liability arising pant’s required beginning date (sec. program with respect to such rulings and de- out of a Federal or State law, the act (or 401(a)(9)). The required beginning date means terminations. Pursuant to this statutory au- failure to act) giving rise to the liability the April 1 of the calendar year following the thorization, the IRS establishes a schedule of must occur at least 3 years before the begin- later of (1) the calendar year in which the user fees. The statutory authorization for ning of the taxable year. In the case of a li- employee attains age 701⁄2, or (2) the calendar the IRS use fee program is in effect for re- ability arising out of a tort, the liability year in which the employee retires. In the must arise out of a series of actions (or fail- case of an employee who is a 5-percent owner quests made before October 1, 2003 (P.L. 104– ures to act) over an extended period of time (as defined in section 416), the required be- 117). a substantial portion of which occurred at ginning date is April 1 of the calendar year Description of proposal least 3 years before the beginning of the tax- following the calendar year in which the em- The proposal would extend the IRS user fee 1 able year. A specified liability loss cannot ployee attains age 70 ⁄2. The Internal Rev- program for requests made before October 1, exceed the amount of the net operating loss, enue Service has issued extensive Regula- 2007. and is only available to taxpayers that used tions for purposes of calculating minimum an accrual method throughout the period distributions. In general, minimum distribu- Effective date that the acts (or failures to act) giving rise tions are includible in gross income in the The proposal would be effective on the date to the liability occurred. year of distribution. An excise tax equal to of enactment. ESTIMATED REVENUE EFFECTS OF H.R. 2676, THE ‘‘INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT OF 1998,’’ AS REPORTED BY THE SENATE COMMITTEE ON FINANCE AND MODIFIED BY THE ROTH FINANCING AMENDMENT [Fiscal Years 1998–2007, in millions of dollars]

1998– 2003– Provision Effective 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2002 2007

Title I. Executive Branch Governance ...... No Revenue Effect Title II. Electronic Filing ...... No Revenue Effect Title III. Taxpayer Bill of Rights 3: A. Burden of Proof ...... eca DOE (1) ¥221 ¥232 ¥243 ¥256 ¥269 ¥282 ¥295 ¥311 ¥326 ¥953 ¥1,483 B. Proceedings by Taxpayers: 1. Expansion of authority to award costs and certain fees at pre- 180da DOE ...... ¥14 ¥15 ¥16 ¥17 ¥20 ¥21 ¥22 ¥23 ¥25 ¥62 ¥111 vailing rate and CFR rule 68 provision with net worth limitation (includes outlay effects). 2. Civil damages with respect to unauthorized collection actions (in- DOE ¥2 ¥15 ¥25 ¥50 ¥30 ¥25 ¥25 ¥25 ¥25 ¥25 ¥122 ¥125 cludes outlay effects). 3. Increase in size of cases permitted on small case calendar to pca DOE No Revenue Effect $50,000. 4. Expand Tax Court jurisdiction to include responsible person pen- pca DOE ¥11 ¥15 ¥13 ¥7 ¥7 ¥7 ¥7 ¥8 ¥8 ¥8 ¥53 ¥38 alties. 5. Actions for refund with respect to certain estates which have rfa DOE Negligible Revenue Effect elected the installment method of payment. 6. Provide Tax Court jurisdiction to review adverse IRS determination pfa DOE (1) ¥5 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥11 ¥10 of a bond issuer’s tax-exempt status. C. Relief for Innocent Spouses and Persons with Disabilities: 1. Innocent spouse relief—innocent spouses would be able to elect iaa & ulb DOE ¥58 ¥350 ¥288 ¥273 ¥346 ¥480 ¥608 ¥773 ¥910 ¥1,071 ¥1,315 ¥3,842 to be liable only for tax attributable to their income (assumes no interaction with any other proposal; includes anti-abuse rule; not innocent if have actual knowledge of understatement of tax). 2. Reports on collection activity against spouses ...... bi 1999 No Revenue Effect 3. Suspension of statute of limitations on filing refund claims dur- (2) ¥10 ¥70 ¥35 ¥15 ¥16 ¥17 ¥18 ¥19 ¥20 ¥21 ¥146 ¥95 ing periods of disability. 4. Require the IRS to send separate notification to both spouses by ¥nma DOE No Revenue Effect certified mail. D. Provisions Relating to Interest and Penalties: 1. Elimination of interest rate differential on overlapping periods of cqba DOE ¥(1) ¥9 ¥28 ¥42 ¥54 ¥57 ¥60 ¥63 ¥66 ¥69 ¥134 ¥315 interest on income tax overpayments and underpayments. 2. Increase refund interest rate to Applicable Federal Rate (‘‘AFR’’) cqba DOE ¥5 ¥51 ¥54 ¥56 ¥59 ¥62 ¥65 ¥69 ¥72 ¥76 ¥225 ¥344 + 3 for individual taxpayers (includes outlay effects) 3. 3. Elimination of penalty on individual’s failure to pay during in- iapma DOE ¥29 ¥272 ¥287 ¥302 ¥317 ¥338 ¥354 ¥372 ¥390 ¥410 ¥1,207 ¥1,864 stallment agreements (for individuals and timely filed returns only). 4. Mitigations of failure to deposit penalty cascading (all taxpayers) dma 180da DOE ...... ¥47 ¥64 ¥64 ¥65 ¥66 ¥66 ¥67 ¥68 ¥68 ¥240 ¥335

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4382 CONGRESSIONAL RECORD — SENATE May 6, 1998 ESTIMATED REVENUE EFFECTS OF H.R. 2676, THE ‘‘INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT OF 1998,’’ AS REPORTED BY THE SENATE COMMITTEE ON FINANCE AND MODIFIED BY THE ROTH FINANCING AMENDMENT—Continued [Fiscal Years 1998–2007, in millions of dollars]

1998– 2003– Provision Effective 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2002 2007

5. Suspend accrual of interest and penalties if IRS fails to contact tyea DOE ...... ¥358 ¥428 ¥482 ¥514 ¥609 ¥615 ¥622 ¥628 ¥1,268 ¥2,988 taxpayer within 12 months after a timely-filed return (except for fraud and criminal penalties). 6. Notices of interest and penalties must show computation ...... na 180da DOE No Revenue Effect 7. Require management to approve non-computer generated pen- pa 180da DOE Negligible Revenue Effect alties (excluding failure to file, pay, or estimated tax payment). E. Protections for Taxpayers Subject to Audit or Collection: 1. Due process for IRS collection actions ...... caia 6ma DOE ...... ¥45 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥48 ¥5 2. Extend the attorney client privilege to accountants and other tax DOE (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (5) (5) practitioners for tax advice of accountant and other tax practi- tioners. 3. Expand the Taxpayer Advocate’s authority to issue taxpayer as- DOE (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (4) (4) sistance orders. 4. Limitation on financial status audit techniques ...... DOE No Revenue Effect 5. IRS summons of computer source code ...... sia DOE & pfsib DOE ...... ¥26 ¥32 ¥39 ¥45 ¥53 ¥61 ¥66 ¥72 ¥74 ¥142 ¥326 6. Prohibition on extension of statute of limitations for collection be- (6) ¥6 ¥44 ¥38 ¥31 ¥25 ¥25 ¥25 ¥25 ¥25 ¥25 ¥144 ¥125 yond 10 years with estate tax exception. 7. Notice of deficiency to specify deadlines for filing Tax Court peti- nma 12/31/98 Negligible Revenue Effect tion. 8. Refund or credit of overpayments before final determination ...... DOE Negligible Revenue Effect 9. Prohibition on improper threat of audit activity for tip reporting .. DOE No Revenue Effect 10. Codify existing IRS procedures relating to appeal of examina- DOE No Revenue Effect tions and collections and increase independence of appeals func- tion. 11. Appeals videoconferencing alternative for rural areas ...... DOE No Revenue Effect 12. Require IRS to notify taxpayer before contacting third parties re- 180da DOE ...... (4) (4) (4 (4) (4) (4) (4) (4) (4) (5) (5) garding IRS examination or collection activities with respect to the taxpayer (does not apply for criminal cases). F. Disclosures to Taxpayers: 1. Explanation of joint and several liability ...... 180da DOE No Revenue Effect 2. Explanation of taxpayers’ rights in interviews with IRS ...... 180da DOE ...... ¥13 (1) (1) (1) (1) (1) (1) (1) (1) (5) (4) 3. Disclosure of criteria for examination selection ...... 180da DOE No Revenue Effect 4. Explanations of appeals and collection process ...... 180da DOE No Revenue Effect 5. Require IRS to explain reason for denial for refund ...... 180da DOE No Revenue Effect 6. Statement to taxpayers with installment agreements ...... 180da DOE No Revenue Effect G. Low-Income Taxpayer Clinics H. Other Taxpayer Rights Provisions: 1. Cataloging complaints of IRS employee misconduct ...... DOE No Revenue Effect 2. Archive of records of IRS ...... DOE No Revenue Effect 3. Payment of taxes to the U.S. Treasury3 ...... DOE No Revenue Effect 4. Clarification of authority of Secretary relating to the making of DOE No Revenue Effect elections. I. Studies: 1. Study of penalty and interest administration and implementation 9ma DOE No Revenue Effect 2. Study of confidentiality of tax return information ...... 1ya DOE No Revenue Effect J. Limits on Seizure Authority: 1. IRS to implement approval process for liens, levies, or seizures ... caca DOE No Revenue Effect 2. Prohibit the IRS from selling taxpayer’s property for less than the Soa DOE No Revenue Effect minimum bid. 3. Require the IRS to provide an accounting and receipt to the tax- soa DOE Negligible Revenue Effect payer (including the amount credited to the taxpayer’s account) for property seized and sold. 4. Require the IRS to study and implement a uniform asset disposal DOE & 2 years No Revenue Effect mechanism for sales of seized property to prevent revenue offi- cers from conducting sales. 5. Increase the amount exempt from levy to $10,000 for personal cata DOE (1) ¥5 ¥5 ¥5 ¥5 ¥6 ¥6 ¥6 ¥6 ¥6 ¥21 ¥30 property and $5,000 for books and tools of trade, indexed for in- flation. 6. Require the IRS to immediately release a levy upon agreement lia DOE Negligible Revenue Effect that the amount is not collectible. 7. Codify IRS administrative procedures for seizure of taxpayer’s DOE No Revenue Effect property. 8. Suspend collection by levy during refund suit ...... tyba 12/31/98 Negligible Revenue Effect 9. Require District Counsel review of jeopardy and termination as- taa DOE Negligible Revenue Effect sessments and jeopardy levies. 10. Codify certain fair debt collection procedures ...... DOE No Revenue Effect 11. Ensure availability of installment agreements ...... DOE No Revenue Effect 12. Increase superpriority dollar limits ...... DOE Negligible Revenue Effect 13. Permit personal delivery of section 6672(b) notices ...... DOE No Revenue Effect 14. Allow taxpayers to quash all third-party summonses ...... ssa DOE Negligible Revenue Effect 15. Permit service of summonses by mail or in person ...... ssa DOE No Revenue Effect 16. Provide new remedy for third parties who claim that the IRS has DOE Negligible Revenue Effect filed an erroneous lien. 17. Waive the 10% early withdrawal penalty when IRA or qualified la DOE ¥1 ¥3 ¥4 ¥4 ¥4 ¥4 ¥5 ¥5 ¥5 ¥5 ¥17 ¥24 plan is levied. 18. Prohibit seizure of residences in small deficiency cases ...... DOE Negligible Revenue Effect 19. Require the IRS to exhaust all payment options before seizing a aa DOE No Revenue Effect business or principal residence. K. Offers-in-Compromise: 1. Rights of taxpayers entering into offers-in-compromise ...... DOE (1) (4) (1) (1) (1) (1) (1) (1) (1) (1) (5) (4) 2. Prohibit IRS rejection of low-income taxpayer’s offer-in-com- osa DOE No Revenue Effect promise based on amount of offer. 3. Prohibit IRS rejection of an offer-in-compromise solely based on a osa DOE No Revenue Effect dispute as to liability because the taxpayer’s file cannot be lo- cated by the IRS. 4. Prohibit the IRS from requiring a financial statement for offer-in- DOE No Revenue Effect compromise based solely on doubt as to liability. 5. Suspend collection by levy while offer-in-compromise is pending tao/a 60da DOE Negligible Revenue Effect 6. Rejected offers-in-compromise and requests for installment oara DOE No Revenue Effect agreements to be reviewed. 7. Appeals review of rejected offers-in-compromise ...... osa DOE No Revenue Effect L. Additional Items: 1. Prohibit using tax enforcement results to evaluate IRS employees DOE No Revenue Effect 2. IRS notices must contain name and telephone number of IRS em- 60da DOE No Revenue Effect ployee to contact. 3. Require approval of use of pseudonyms by IRS employees ...... DOE No Revenue Effect 4. National Office conferences without field personnel ...... DOE No Revenue Effect 5. Require the IRS to end the use of the illegal tax protestor label .. DOE No Revenue Effect 6. Modify section 6103 to allow the tax-writing committees to obtain DOE No Revenue Effect data from IRS employees regarding employee and taxpayer abuse. 7. Publish telephone numbers for local IRS offices ...... 1/1/99 No Revenue Effect 8. Alternative to Social Security numbers for tax return preparers .... DOE No Revenue Effect 9. Expand Alternative Dispute Resolution; binding arbitration pilot DOE No Revenue Effect program. 10. Treasury can not implement 98–11 regulations for 6 months, DOE ¥8 ¥36 ¥10 ¥6 ¥3 ¥3 ¥2 ¥1 ¥1 ¥1 ¥63 ¥8 with no inference about transition rules. 11. Require IRS to notify all partners of any resignation of the tax tyba 12/31/98 (7) (7) (7) (7) (7) (7) (7) (7) (7) ¥1 ¥1 matters partner that is required by the IRS, and of the identity of any successor tax matters partner who was appointed to fill the vacancy created by such resignation.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4383 ESTIMATED REVENUE EFFECTS OF H.R. 2676, THE ‘‘INTERNAL REVENUE SERVICE RESTRUCTURING AND REFORM ACT OF 1998,’’ AS REPORTED BY THE SENATE COMMITTEE ON FINANCE AND MODIFIED BY THE ROTH FINANCING AMENDMENT—Continued [Fiscal Years 1998–2007, in millions of dollars]

1998– 2003– Provision Effective 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2002 2007

Subtotal of Taxpayer Protections ...... ¥137 ¥1,251 ¥1,499 ¥1,592 ¥1,742 ¥1,957 ¥2,225 ¥2,442 ¥2,635 ¥2,849 ¥6,223 ¥12,110

Title IV. Congressional Accountability for the IRS ...... No Revenue Effect Title V. Revenue Offsets: A. Repeal Schmidt Baking with Respect to Vacation and Severance Pay ... tyea DOE 603 1,141 1,160 141 148 156 163 172 180 189 3,193 860 B. Allow Taxpayers to use foreign Tax Credits to Reduce Income for 1 ftcai tyba 12/31/98 ...... 84 546 487 454 424 394 271 267 263 1,571 1,619 Year Back and Carryforward 7 years. C. Clarify and Expand Math Error Procedures ...... tyea DOE ...... 12 25 26 27 28 29 39 31 32 90 150 D. Freeze Grandfathered Status of Stapled or Paired-Share REITs ...... tyea 3/26/98 (8) 1 3 6 10 14 19 26 35 45 20 139 E. Make Certain Trade Receivables Ineligible for Mark-to-Market Treat- tyea DOE 33 317 500 333 117 70 73 77 81 85 1,300 386 ment With Spread. F. Add Vaccines Against Rotavirus Gastroenteritis to the List of Taxable vpa DOD ...... 1 2 3 4 5 6 6 6 7 10 30 Vaccines ($0.75 per dose). G. Authorize the Federal Government to Offset a Federal Income Tax Re- rda DOE 2 2 3 3 3 3 3 4 4 4 13 18 fund to Satisfy a Past Due, Legally Owing State Income Tax Debt. H. Restrict Special Net Operating Loss Carryback Rules for Specified Li- NOLgi tyba DOE ...... 15 32 42 43 41 40 41 42 89 207 ability Losses. I. Disregard Minimum Distributions in Determining AGI for IRA Conver- tyba 12/31/04 ...... 2,362 2,854 2,812 ...... 8,028 sions to a Roth IRA. J. Extend Fee for IRS Letter Rulings ...... 10/1/03 ...... 64 67 71 75 ...... 277 Subtotal of Revenue Offsets ...... 638 1,558 2,254 1,031 805 743 792 3,055 3,570 3,554 6,286 11,714

Title VI. Tax Technical Corrections ...... No Revenue Effect Title VII. Pay-Go Surplus3 ...... 29 61 93 97 126 ...... 406 Net total ...... 501 307 755 ¥561 ¥937 ¥1,185 ¥1,372 706 1,032 831 63 10 1 Los of less than $1 million. 2 Effective for periods of disability before, on or after the date of enactment but would not apply to any claim for refund or credit which (without regard to the proposed provision) 3 Estimate provided by the congressional Budget Office 4 Loss of less than $5 million. 5 Loss of less than $25 million. 6 Effective for requests to extend the statute of limitations made after the date of enactment and to all extensions of the statute of limitations on collections that are open 180 days after the date of enactment. 7 Loss of less than $500,000. 8 Gain of less than $500,000. Legend for ‘‘Effective’’ column: aa=actions after; bi=beginning in; caca=collection actions commenced after; caia=collection actions initiated after; cata=collection actions taken after; cqba=calendar quarters beginning after; dma=deposits made after; DOE=date of enactment; eca=examinations commencing after; ftcal=foreign tax credits arising in; iapma=installment agreement payments made after; la=levies after; laa=liability arising after; lia=levies im- posed after; na=notices after; NOLgi=net operating losses generated in; nma=notices mailed after; oara=offers and requests after; osa=offers-in-compromise submitted after; pa=penalties after; pca=processings commencing after; pfa=petitions filed after; pfsib=protection for summonses issued before; tia=penalties imposed after; rda=refunds due after; rfa=refunds filed after; sia=summonses issued after; soa=seizures occurring after; Soa=sales occurring after; ssa=summonses served after; taa=taxes assessed after; tao/a=faxes assess on or after; tyba=taxable years beginning after; tyea=taxable years ending after; ulb=unpaid liability before; vpa=vaccines purchased after; 1ya=1 year after; 6ma=6 months after; 9ma=9 months after; 60da=60 days after; and 180da=180 days after. Note.—Details may not add to totals due to rounding. Source: Joint Committee on Taxation.

AMENDMENT NO. 2340 These taxes expired a couple of years sion of the Superfund taxes is their Mr. ROTH. Mr. President, I would ago. If the taxes are extended, they will Superfund bill. now like to turn to the amendment of- provide the necessary resources for As chairman, let me be clear—I fered by the Senator from Nebraska, Superfund cleanup activities. pledge to work with Senators SMITH Mr. KERREY. It is important to maintain the ‘‘con- and CHAFEE on Superfund with respect Senator KERREY is offering an alter- nection’’ between the Superfund taxes to the issues within Finance Com- native pay-for package. I must oppose and the Superfund program. It is the mittee jurisdiction. Senator KERREY’s package. view of our Senior Republican col- It is my hope that will move forward The Kerrey amendment contains rev- leagues on the Environment and Public with a viable Superfund reform pro- enue raisers similar to the Roth Works Committee that this connection posal. The recent progress made by the amendment. There are a few additional is important for both the politics and Environment and Public Works Com- items that I had considered in crafting policy of Superfund. mittee is encouraging. my pay-for amendment. Our distinguished colleagues from If you are for Superfund reform, as I There, is, however, one very con- the Committee on Environmental and am, you need to support Senators troversial revenue raiser in the Kerrey Public Works, in particular, Senator SMITH and CHAFEE. For this reason, I amendment. I think it is important SMITH and Senator CHAFEE, have respectfully urge my colleagues to op- that my colleagues focus their atten- worked long and hard on Superfund re- pose the Kerrey amendment. tion on it. form legislation. I reserve the remainder of my time. Rather than modifying the rollover They produced a bill, passed it out of The PRESIDING OFFICER. Who rules for Roth IRAs, which would allow committee, and have asked me to ex- seeks recognition? more taxpayers to enjoy the benefits of tend the expired Superfund taxes to Mr. KERREY addressed the Chair. the Roth IRA, the Kerrey amendment cover the authorization period. Sen- The PRESIDING OFFICER. The Sen- would reinstate the expired Superfund ators SMITH and CHAFEE should be com- ator from Nebraska. taxes. mended for moving Superfund forward, Mr. KERREY. Mr. President, first of It is an undisputable fact that the not undercut here on the Senate floor. all, the choice that the Senate will be present Superfund program needs im- I intend to support Senators SMITH making today really is, the first choice mediate, substantial reform. I am a and CHAFEE’s efforts. As they have we have to make is do we want to put longstanding supporter of the Super- communicated to me, unless the Super- another $9 billion of spending in this fund program. It is critical that Super- fund taxes are enacted directly in con- bill. That is what the Finance Com- fund sites be cleaned up. It is a shame nection with a Superfund reform bill, mittee did. And as a consequence we that the program has floundered over any hope for the long-needed changes are now trying to find a pay-for of the past several years. Every Senator in this environmental program would some kind. I believe it is a perfectly should feel the responsibility to get the be dashed. good bill without that $9 billion worth Superfund program back up and run- In deference to Senators SMITH and of additional expenditure, but that is ning at full speed. CHAFEE, the Finance Committee did the threshold question. Do you want to The Superfund trust fund received its not include an extension of the Super- spend an additional $9 billion? And if revenues from excise taxes on domestic fund taxes in either the IRS Reform you do, the question is, how do you get crude oil and imported petroleum prod- bill that passed our committee unani- the money? Where do you get the ucts, certain chemicals and imported mously or in the Roth amendment. I money to pay for it? derivative products, and a corporate agree with Senators SMITH and CHAFEE What we have done in our amend- environmental tax. that the appropriate vehicle for exten- ment is included two provisions that

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4384 CONGRESSIONAL RECORD — SENATE May 6, 1998 were included by the chairman of the REVENUE ESTIMATION ASSUMPTIONS heirs of very wealthy Americans are Budget Committee. The Chairman of The proposal targets a fairly narrow, well- going to be receiving income on which the Budget Committee, Senator defined taxpaying population who have at- they are paying no tax. That is what 1 DOMENICI, has advocated these two pro- tained or will attain age 70 ⁄2 during the this is all about. This is not about visions as reasonable provisions, and budget period. For purposes of the revenue Americans who are under the gun. Re- estimate, it is assumed that the proposal we have included them as a pay-for. would be utilized by a subset of this popu- member, of all of the nearly 40 million The alternative must be described here lation. Two classes of taxpayers who become Social Security beneficiaries, almost 70 in a little more detail. eligible for the conversion to a Roth IRA as percent of them have 50 percent of It is essentially an accounting gim- a result of the proposal have been identified. their income being Social Security mick that will be used by people over (1) Taxpayers who are currently over age 701⁄2, only; that is $745 a month. are taking a minimum required distribution, and the age of 701⁄2 that will basically en- This is about people over the age of who have AGI in excess of $100,000. When the 701⁄2 with retirement incomes over able them to pass to their heirs, tax proposal becomes effective, some taxpayers free, assets that they currently own. whose AGI would fall below $100,000 if the $100,000 taking an IRA, converting it to That is what it is. Members need to minimum required distributions were dis- a Roth IRA, paying, on an average, know who will be affected by this. regarded would convert to a Roth IRA. In ad- $47,000 per person for taxes so their I ask unanimous consent a letter dition, some taxpayers whose AGI would not heirs don’t have to pay any taxes at from the Joint Committee on Taxation fall below $100,000 under the proposal but the very moment that this Senate is be printed in the RECORD. who have income that could be shifted easily going to be facing cutting back on ben- There being no objection, the memo- from one tax year to another would convert efits to the middle-income Americans. to a Roth IRA. It is assumed for estimating randum was ordered to be printed in purposes that some of these taxpayers would That is the choice that this proposal the RECORD, as follows: utilize this income shifting technique under presents to us. JOINT COMMITTEE ON TAXATION, present law to take advantage of the conver- We are saying, first of all, on this Washington, DC, May 5, 1998. sion to a Roth IRA; however, taxpayers side we would prefer that we not add to To: Mark Patterson. whose minimum required distributions are the cost of the bill. We have. Second, if From: Lindy L. Paull. substantial would be less able to utilize this we are saying we are going to add to Subject: Estimated revenue effects of pro- technique under present law. the cost of the bill, let’s find something posal included in Roth financing amend- (2) Taxpayers whose AGI exceeds $100,000 and that is more appropriate than pro- ment to modify rules relating to Roth who will attain age 701⁄2 during the budget win- IRA conversions. dow. These taxpayers are currently not eligi- viding a tax break to people right now Included in the proposed Roth Financing ble to convert to a Roth IRA; some of these who, frankly, not only are they not Amendment to the IRS Restructuring bill taxpayers have income which could be shift- asking for a tax break, I think it is currently pending on the Senate floor is a ed easily from one tax year to another and very difficult to justify that they need proposal to modify the definition of adjusted might be expected to do such income shifting one. Our offset includes a provision gross income (‘‘AGI’’) for purposes of deter- in order to make a conversion to a Roth IRA that was recommended by the chair- mining the income limitation of conversions under present law. Other taxpayers would man of the Budget Committee. of IRA balances to Roth IRAs, effective for not be able to shift income easily and would In addition, our proposal, our amend- not be able to utilize the conversion to a taxable years beginning after December 31, ment, includes some requests. 2004. The following describes the analysis of Roth IRA under present law. the staff of the Joint Committee on Taxation Approximately 500,000 taxpayers would be I ask unanimous consent a letter in preparing estimated revenue effects of eligible for the conversion under the pro- sent to the chairman of the Finance this proposal. posal during the budget years 2005 through Committee from Commissioner DESCRIPTION OF PROPOSAL 2007. Of those eligible, we estimate that ap- Rossotti be printed in the RECORD. proximately 170,000 taxpayers would convert There being no objection, the letter Under present law, uniform minimum dis- to a Roth IRA. tribution rules generally apply to all types was ordered to be printed in the of tax-favored retirement vehicles, including Mr. KERREY. The Joint Committee RECORD, as follows: qualified retirement plans and annuities, on Taxation said, as we all know, it DEPARTMENT OF THE TREASURY, IRAs other than Roth IRAs, and tax-shel- only affects Americans with retirement INTERNAL REVENUE SERVICE, tered annuities (sec. 403(b)). income over $100,000 a year. That is Washington, DC, March 31, 1998. Distributions are required to begin no later who is affected. So ask yourself how Hon. WILLIAM V. ROTH, Jr., than the participant’s required beginning many people in your State have in- Chairman, Committee on Finance, date (sec. 401(a)(9)). The required beginning comes over $100,000 a year, because U.S. Senate, Washington, DC. date means April 1 of the calendar year fol- that is who it is going to affect. The DEAR MR. CHAIRMAN: I am writing to pro- lowing the later of (1) the calendar year in vide the Senate Finance Committee informa- 1 Joint Committee on Taxation is saying which the employee attains age 70 ⁄2, or (2) tion about provisions under consideration as the calendar year in which the employee re- 170,000 of those individuals—that is part of the IRS restructuring bill which, in tires. In the case of an employee who is a 5- what they are saying, 170,000 of those order to implement, will require changes in percent owner (as defined in section 416), the individuals—will convert to a Roth IRS computer information systems. required beginning date is April 1 of the cal- IRA. What does that mean? That As is noted in one of the provisions of the endar year following the calendar year the means they are going to pay $50,000 restructuring bill, it is essential that the 1 employee attains age 70 ⁄2. In general, min- each to convert. In order to get $8 mil- work needed to make the IRS computer sys- imum distributions are includible in gross tems comply with the Century Date Change income in the year of distribution. lion, you have to have an average of be given priority. If these changes are not Under present law, all or any part of $50,000 of taxes paid by each of these made and tested successfully, computer sys- amounts in a deductible or nondeductible 170,000 people to convert. tems on which the IRS directly depends for IRA may be converted into a Roth IRA. Only You ask yourself, why are they doing accepting and processing tax returns and tax taxpayers with AGI of $100,000 or less are eli- it? Love America? Love their country? payments will cease to function after De- gible to convert an IRA into a Roth IRA. In Get teary-eyed when they watch the cember 31, 1999. In order to accomplish this the case of a married taxpayer, AGI is the flag go by? No, sir. What they are doing change, a massive effort is underway now combined AGI of the couple. Married tax- is saying they would rather pay that and will continue through January 2000. This payers filing a separate return are not eligi- extra $50,000 because they know their project, one of the largest information sys- ble to make a conversion. tems challenges in the country today, is esti- If a taxpayer is required to take a min- heirs will not pay any tax on this asset mated to cost approximately $850 million imum required distribution from an IRA, the when it is transferred. That is what through FY 1999 and requires updating and amount of the required distribution is in- happens. It is a substantial reduction testing of about 75,000 computer applications cludible in gross income, and cannot be in tax revenue in the 10- to 15-year pe- programs, 1400 minicomputers, over 100,000 rolled over into a Roth IRA. riod at the very moment that this Sen- desktop computers, over 80 mainframe com- The proposal would modify the definition ate and this Congress is going to be puters and data communications networks of AGI to exclude the required minimum dis- facing a tremendous problem of grow- comprising more than 50,000 individual prod- tribution from the taxpayer’s AGI solely for ing entitlements. They are going to uct components. In addition, the data entry purposes of determining eligibility to con- system that processes most of the tax re- vert from an IRA to a Roth IRA. As under force us into a situation where we will turns must be replaced. present law, the required minimum distribu- have to be reducing the cost of entitle- Most of the work to repair or replace these tion would not be eligible for conversion and ment programs. While we are reducing individual components must be done prior to would be includible in gross income. the cost of entitlement programs, the the tax season that begins in January 1999,

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4385 and thus is at its peak during calendar 1998. of access by telephone to 7 days a week, 24 The effective date for many of these During this peak period, the IRS must also hours a day. The assignment of a particular changes is January 31, 2000. Given that all of make the changes necessary to implement employee for a taxpayer contact could actu- these changes must be made compatible with the provisions of the Taxpayer Relief Act of ally increase the level of taxpayer frustra- the Century Date Change, we believe we will 1997 which are effective in tax year 1998. tion as the named employee may be on an- need the month of January 2000 to ensure all These changes are still being defined in de- other phone call, working a diffrent shift, or the Century Date Changes are successful be- tail but are currently estimated to require handling some other taxpayer matter when fore implementing the provisions listed about 800 discrete computer systems taxpayers call. In addition, consistent with below. changes. private sector practices, we are currently in- Allow the taxpayers to designate deposits The most critical systems to which these stalling a national call router designed to for each payroll period rather than using the changes must be made are systems that were ensure that when a taxpayer calls with a first-in-first-out (FIFO) method that results originally developed in the 1960’s, 1970’s and question, the call can be routed to the next in cascading penalties. Effective imme- 1980’s, and many are written in old computer available customer service representative for diately for taxpayers making the designation languages. A limited number of technical the fastest response possible. at time of deposit. Effective July 31, 2000 for staff have sufficient familiarity with these Proposal: Require that the IRS adopt best taxpayers making the designation after de- programs to make changes to them. Further- practices for customer service with regard to posit. more, the IRS suffered attrition of 8% of this notices and correspondence, as exemplified Overhaul the innocent spouse relief re- staff during FY 97, which attrition has con- by the private sector. Require that the IRS quirements and replace with proportionate tinued at the same or higher rate until re- report to Congress on an annual basis on liability, etc. Effective date: July 31, 2000. cently. In part, this attrition reflected the these private sector best practices, the com- The IRS has no way of administering propor- very tight market for technical professionals parable state of IRS activities, and the spe- tionate liability with our current systems. as well as a perceived lack of future opportu- cific steps the IRS is taking to close any gap This provision would require significant nities at the IRS. between its level and quality of service and complex changes to our systems and is likely This extraordinary situation has required that of the private sector. Furthermore, the to be cumbersome and error-prone for both the IRS to commit every available technical IRS could be required to put employee names taxpayers and the IRS. and technical management resource to these on individual correspondence; it could re- Require each notice of penalty to include a critical priorities and to defer most other re- quire all employees to provide taxpayers computation of penalty. Effective date: No- quests for systems changes at least during with their names and employee ID numbers; tices issued more than 180 days after date of calendar year 1998. and, finally, it could record, in the computer enactment. For these reasons, it will not be feasible to system, the ID number of the employee who Develop procedures for alternative to writ- make any significant additional changes to takes any action on a taxpayer account. ten signature for electronic filing. The IRS is the IRS systems prior to the 1999 filing sea- 2. The proposal would suspend the accrual already preparing a pilot project for filing son, pushing the start of all additional work of penalties and interest after one year, if season 1999. Subsequent roll out of alter- to about the second quarter of calendar 1999. the IRS has not sent the taxpayer a notice of natives to written signatures for electronic Furthermore during 1999, a major amount of deficiency within the year following the date filing will depend on the success of the pilot. additional work will be required to perform which is the later of the original date of the Develop procedures for a return-free tax the testing to ensure that all the repaired or return or the date on which the individual system for appropriate individuals. This pro- replaced components work as expected prior taxpayer timely filed the return. vision should be interpreted as a study of the Concern: We agree with the objective of the to January 1, 2000. Given the magnitude of requirements of a return-free tax system and proposal to encourage the IRS to proceed ex- the changes, it is likely that additional work the target segment of taxpayers. Actual im- peditiously in any contact with taxpayers, will be required to repair defects and prob- plementation will be based on the findings however, our systems are currently unable lems that will be uncovered during the test- and conclusions of the study. to accommodate some of the data require- ing in the second half of 1999. Thus, while Increase the interest rate on overpayments ments with the speed necessary to make this some capacity to make systems changes is for non-corporate taxpayers from the federal proposal workable. In addition, we are con- projected to exist in 1999, there is consider- short-term interest +2% to +3%. Effective cerned that the proposal could have the per- able uncertainty about how much capacity date: July 31, 1999. verse incentive of encouraging taxpayers to will in fact be available even during calendar Do not impose the failure to pay penalty actually drag out their audit proceedings while the taxpayer is in an installment 1999. rather than work with the IRS to bring them With this context in mind, we have at- agreement. Effective date: January 31, 2000. to a speedy conclusion. Our administrative tempted to identify the provisions in the re- Require the IRS to provide notice of the appeals process, which is designed to resolve taxpayer’s rights (if the IRS requests an ex- structuring bill that require significant cases without the taxpayer and the govern- changes to computer systems and estimate tension of the statute of limitations). Re- ment incurring the cost and burden of a quire Treasury IG to track. Effective date: how much staff time would be needed to im- trial, could also become a vehicle for tax- plement these changes. Based on this very January 31, 2000. payers to delay issuance of a deficiency no- Require IRS to provide on each deficiency preliminary analysis, we have prepared a list tice. of recommended effective dates if these pro- notice the date the IRS determines is the Proposal: Require the IRS to set as a goal last day for the taxpayer to file a tax court visions are adopted. In all cases, we would the issuance of a notice of deficiency within opinion. A petition filed by the specified date strive to implement the provisions sooner if one year of a timely filed return. Mandate would be deemed timely filed. Effective date: possible. In addition, two provisions entail that the IRS provide a report to the Congress both significant systems and policy issues. January 31, 2000. on an annual basis that specifies: progress Require the Treasury IG to certify that the For these items, which are discussed first, the IRS has made toward meeting this goal, IRS notifies taxpayers of amount collected we suggest an alternative approach. measures the IRS has implemented to meet from a former spouse. Effective date: Janu- this goal, additional measures it proposes to- ALTERNATIVE APPROACH ary 31, 2000. 1. Require that all IRS notices and cor- ward the same end, and any impediments or Require the IRS to provide notice to the problems that hinder the IRS’ ability to respondence contain a name and telephone taxpayer 30 days (90 days in the case of life meet the goal. In addition, the proposal number of an IRS employee who the tax- insurance) before the IRS liens, levies, or could reemphasize the requirement that the payer may call. Also, to the extent prac- seizes a taxpayer’s property. Effective date: IRS abate interest during periods when there ticable and where it is advantageous to the 30 days after date of enactment for seizures; is a lapse in contact with the taxpayer be- taxpayer, the IRS should assign one em- January 31, 2000 for liens and levies. cause the IRS employee handling the case is ployee to handle a matter with respect to a Require the IRS to immediately release a unable to proceed in a timely manner. The taxpayer until that matter is resolved. levy upon agreement that the amount is IRS could be required to provide information Concern: We agree with the objectives of ‘‘currently not collectible.’’ Effective date: on the number of cases in which there is in- this proposal, but are concerned because it January 31, 2000. would entail a total redesign of customer terest abatement each year in the report. Waive the 10% addition to tax for early service systems and would actually move the EFFECTIVE DATES withdrawal from an IRA or other qualified IRS away from the best practices found in We propose the following effective dates plan if the IRS levies. Effective date: Janu- the private sector. We do support the pro- for specific provisions. These dates are driv- ary 31, 2000. posal that the IRS should assign one em- en by the capacity of our information tech- The taxpayer would have 30 days to request ployee to handle a matter with respect to nology systems, not the impact of the policy. a hearing with IRS Appeals. No collection the taxpayer where it is both practicable and Some of these provisions would be fairly activity (other than jeopardy situations) where it is advantageous to the taxpayer. easy to implement, but in total—and in con- would be allowed until after the hearing. The The proposal would affect the Masterfile, junction with all the other demands on our taxpayer could raise any issue as to why col- Integrated Data Retrieval System (IDRS), information technology resources—it is sim- lection should not be continued. Effective and any system supported by IDRS (includ- ply not feasible to implement them until the date: January 31, 2000. ing AIMS and ACS). In addition, the proposal dates proposed. If the situation changes, we IRS to implement approval process for is likely to decrease the customer service we will strive to implement the provisions soon- liens, levies, and seizures. Effective date: im- are trying to improve through our expansion er. plement procedures manually 60 days after

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4386 CONGRESSIONAL RECORD — SENATE May 6, 1998 date of enactment; implement system for IG We have an offset in here that has tee’s report will be complete. There are tracking and reporting January 31, 2000. been endorsed by the chairman of the differences on the bill. But I think The following items were proposed in the Budget Committee. We have an offset clearly no one should be of the opinion Administration’s FY 1999 Budget. In con- junction with the other proposals in this bill, that does not have us saying to people that we should use Superfund taxes; they will also require significant systems with retirement incomes over $100,000 a that is, the environmental income tax changes: year here is a way for you to shelter and the oil and chemical excise tax, for Eliminate the interest rate differential on that income for your heirs. And we anything other than to reform that overlapping periods of interest on income have a provision in here that enables program. tax overpayments and underpayments. Senators to say we have taken a step I don’t want to get into a full debate Prohibit the IRS from collecting a tax li- to make certain that at least the IRS now on the problems associated with ability by levy if: (1) an offer-in-compromise Superfund. I will have that opportunity is being processed; (2) within 30 days fol- is not, in the year 2000, going to cause lowing rejection of an offer; and (3) during all kinds of additional hardships to the when we get the bill to the floor. But I appeal of a rejection of an offer. American taxpayers as a consequence just want to say, when Congress estab- Suspend collection of a levy during refund of not having their computer system lished this program in 1980, the con- suit. and their software Y2K compliant. sensus was it would take a few billion Allow equitable tolling of the statute of The PRESIDING OFFICER. Who dollars to clean up what we thought limitations on filing a refund claim for the yields time? were around 400 sites. In order to fund period of time a taxpayer is unable to man- this program, revenues were collected age his affairs due to a physical or mental Mr. ROTH. I yield 5 minutes to the disability that is expected to result in death distinguished Senator from New Hamp- through these taxes. We reauthorized or last more than 12 months. Tolling would shire. the program in 1986, extending the tax- not apply if someone was authorized to act The PRESIDING OFFICER. The Sen- ing authority. What has happened is we on these taxpayers’ behalf on financial af- ator from New Hampshire. spent $20 billion of taxpayers’ money fairs. Mr. SMITH of New Hampshire. Mr. and we have only cleaned up about 160 Ensure availability of installment agree- President, I thank the distinguished sites; that is 160 sites were removed ments if the liability is $10,000 or less. chairman of the Finance Committee, from the NPL. Finally, we would attempt to immediately These folks who pay the environ- implement the cataloging of taxpayer com- Senator ROTH, No. 1, for recognizing plaints of employee misconduct and would me, but more importantly for sup- mental income taxes, who pay the oil stop any further designation of ‘‘illegal tax porting the provision that we should and chemical excise taxes, rightfully protesters.’’ However, there may be some not use these environmental income say this program isn’t working. We are systems issues with regard to these pro- taxes, and oil and chemical excise paying all this tax money and it is posals that could delay certain changes until taxes, for anything but Superfund. I going to lawyers and it is being wasted some time in early 1999. and we are not cleaning up sites. Our I look forward to working with you, the Fi- know it was a difficult decision. I sup- port the Senator fully on the IRS re- Superfund bill clearly expedites clean- nance Committee, and the Congress as we up, gets the money away from lawyers strive to restructure the Internal Revenue form which he has done such a tremen- Service. dous job on, and on which he has ex- and towards cleanup. To take that Sincerely, erted such great leadership. I commend money away from this program and CHARLES O. ROSSOTTI. him for understanding, also, there is provide it for some other use is simply Mr. KERREY. Our amendment in- another issue here with Superfund. unconscionable. Although maybe well cludes something that I urge my col- This, essentially, with the greatest intended, it is a serious mistake in leagues to consider. My hope is Senator respect to my colleague from Ne- terms of the bipartisan consensus that MOYNIHAN will offer this as a free- braska, will just totally destroy the we have to fix a broken program. standing amendment later. Mr. Superfund reform that we have worked So I am hopeful—I wish the Senator would reconsider his amendment and I Rossotti, quite appropriately, says we on for some 31⁄2 years. In order to make have about 600 days before the 31st of the things happen that we need to hope this will be defeated. Mr. KERREY addressed the Chair. December 1999. No one is more eloquent make happen in the Superfund Pro- The PRESIDING OFFICER. The Sen- than the Senator from Utah, Senator gram, these taxes would have to be re- ator from Nebraska. BENNETT, talking about the problems instituted and used strictly and exclu- Mr. KERREY. First of all, as to ‘‘un- that the year 2000 is going to create as sively for the Superfund Program. So I conscionable,’’ we are just following a consequence of having to rewrite all vehemently oppose the Kerrey amend- the lead of the chairman of the Budget of our computer codes. The computers ment. Committee who apparently is uncon- will think it is the year 1900 and every- I am certain the majority of this scionable as well. He had the same pro- thing is going to end up getting shut body, and I think the majority of the posal in his budget. down, a huge problem for the IRS. Mr. American people agree that IRS and Second, let me say this is not to fund Rossotti is very much worried. Right Superfund have a similarity. They are the operation of the IRS. This basically now the IRS is a bit behind. He sent us both badly broken. They both need to funds a tax cut. That is what we are a letter asking us to delay some of be fixed. But they don’t have to go talking about. We have new innocent these provisions. against each other to do that. These spouse provisions in this bill and a bur- We have not been able to get these are two separate and distinct issues. den of proof shift that will result in a scored yet from Joint Tax. I regret I support the IRS reform the distin- reduction of taxes of some American that. It takes a little longer out of guished chairman is pursuing and I taxpayers. That is what this pay-for is Joint Tax than we would like. We will also support reforming the Superfund set up to do. get that scored before we are through Program. It is inappropriate to utilize Let me say these taxes are not im- with this debate and we will be able to Superfund taxes to pay for the cost of posed until the year 2002. This gives reduce some of the offsets in other IRS. Superfund taxes should be used to the Environment and Public Works areas. But I am urging Members have fix Superfund. Committee nearly 3 additional years. an opportunity to put themselves on For those who have been anxiously They had 31⁄2 years now already since the side of honoring the request of Mr. waiting for the reform of the program, this bill expired. My presumption is 3 Rossotti, who is saying we are not help is on the way, I hope, if the Senate years is plenty. I can find an additional going to be able to meet that year 2000 will be supportive. Working with the offset, perhaps, and push it back to 2003 problem if a whole series of additional distinguished chairman of the Environ- if you want an additional year to get things are imposed upon us that we ment and Public Works Committee this bill authorized. have to do. who is on the floor, Senator CHAFEE, This takes care of a second 5-year Understand, we pass the law but the and through his leadership we were problem. Again, I say to colleagues, we IRS has to implement it. We change able to pass a bill out of committee. I are having to deal with this because the law, whether it is a Tax Code or am hopeful the majority of our col- the Finance Committee decided to some other area of the tax law, and the leagues will allow that bill to be spend $9 billion more, and that $9 bil- IRS is the one that has to organize brought to the floor and fully debated. lion is being spent to reduce some peo- human beings to get the job done. Within the next few days the commit- ple’s taxes who are going to pay higher

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4387 taxes as a result of the innocent spouse was reported out in really a nearly par- manager’s amendment to the under- provision and the burden-of-proof issue. tisan vote by 11 to 7 with only one lying bill, while creative and it meets We are reducing taxes in one area Democratic Senator in support. How- the technical requirements of the budg- and we have to find an offset. It seems ever, there is bipartisan consensus that et rules, it is also very misleading. The to me, Mr. President, that Senator the Superfund has to be reformed. rollover provisions in the managers’ DOMENICI’s recommendation is correct. There wasn’t, obviously, agreement amendment do raise $8 billion in the By delaying this until 2002, we take with the way the Republicans on the first 5 years that the provision will be away the argument the distinguished committee wanted to proceed, but, in effect, but that same provision loses Senator from New Hampshire had nonetheless, there is agreement that $7 billion in the second 5 years—a clear about destroying the Superfund Pro- the Superfund legislation needs to be revenue loss. gram. This gives the Environment and reformed. Indeed, I see the ranking Here we are in the underlying amend- Public Works Committee 31⁄2 years to member of the committee now, and he ment saying, ‘‘OK, early on, we’ll raise finish their job. devoted many hours of his time to this the revenue,’’ but we don’t tell the rest Mr. CHAFEE addressed the Chair. effort for reform. of the world, particularly the Congress The PRESIDING OFFICER. Who He also knows it will be necessary to and Senators who are voting on this, yields time? offset the spending in any Superfund that we are going to lose $7 billion in Mr. ROTH. Mr. President, I yield 10 reform by reimposing these Superfund the next 5 years. minutes to the distinguished Senator taxes. This was the case when Senator Part of our efforts in the Congress, I from Rhode Island. BAUCUS chaired the committee and re- hope, have been truth in budgeting not The PRESIDING OFFICER. The Sen- ported a Superfund bill in 1994, and it just in the first 5 years, but also be- ator from Rhode Island. still remains the case today. If we are yond, in the next 5 years. Too often, Mr. CHAFEE. Mr. President, I thank going to have Superfund reform, we are this Congress has, unfortunately, hood- the distinguished chairman of our Fi- going to need these moneys that now winked people—the President has been nance Committee for yielding me some are apparently being seized or attempt- part of it, both administrations, in the time on this matter. ing to be seized by Senator KERREY to last 10 to 15 years—by saying, ‘‘OK, we I rise to oppose the amendment of- use for this other purpose; namely, the will meet the budget requirements in fered by the Senator from Nebraska. IRS changes. the first 5 years, but we won’t tell ev- This amendment offers the Senate an The Kerrey amendment would pre- erybody what we are doing in the next alternative to the Finance Commit- clude any meaningful reform of the 5 years,’’ and often in the next 5 years, tee’s plan to pay for the tax relief pro- Superfund Program. In other words, if not disastrous, it is inimical to the vided in the IRS reform bill, but the re- how are we going to pay for the thing? American people because it tends to in- ality is that the Kerrey amendment We wouldn’t be able to if this Kerrey crease deficits rather than decrease. would prevent meaningful Superfund amendment is adopted. That is a fact. To the credit of this ad- reform. The amendment, I believe The real issue before us is whether ministration, it has tried to be truthful strongly, should be rejected. the Senate wants to abandon Super- not only in the first 5 years, but also I oppose this amendment, obviously, fund reform. If we do, then go ahead the next 5 years, and so has the Con- but let me tell you what I do support. and vote for the Kerrey amendment. If gress. Here we are with an underlying I support reimposition of the Super- you don’t, if you want Superfund to amendment which goes totally against fund taxes. I also support reasonable take place and do something about the that effort on the part of good, solid Superfund reform. We will need to re- brownfields redevelopment, for exam- statesmanlike Senators to be truthful impose the three Superfund taxes— ple, we have to have these moneys. not only in the first 5 years, but the namely, the corporate environmental There aren’t other revenues around income tax, the excise taxes on crude next 5 years. that we can use. The Kerrey amend- This amendment increases the deficit oil and the excise tax on chemical feed- ment would preempt reform. The because it costs $7 billion more in the stock—to provide the revenue to pay amendment would frustrate any Super- next 5 years. That is not right. We for a fairer Superfund Program. fund reform efforts. I believe it is bad shouldn’t be doing that. That is what Why do I keep talking about Super- public policy to take these taxes and this amendment does. This is a gim- fund? Mr. President, the Committee on use them to pay for tax relief in the ab- mick. It is purely and simply a gim- Environment and Public Works re- sence of Superfund reform. mick, and that is why it is a bad idea. ported a Superfund bill to the floor 6 Mr. President, I strongly hope this The Kerrey amendment, on the other weeks ago. Just yesterday, the com- amendment will be rejected and that hand, raises revenue in several ways. mittee received CBO’s estimate on the we can all agree we are saving these One is by postponing some of the effec- bill. As we expected, we will need to re- Superfund taxes. They will have to be tive dates of the provisions. Why is impose the Superfund taxes in order to reimposed at sometime when we get a that important? Not only because it pay for the Superfund reforms and the reauthorization of the Superfund legis- raises revenue, that is only of minor Superfund reauthorization. In other lation, but let’s save them for that pur- importance, but the major reason is be- words, if we gobble up this money now pose, the purpose they have been used cause we all know, Mr. President, this in connection with the IRS reforms, for in the past and the purpose I be- country faces a massive problem in the the money won’t be there for the lieve they should be used for in the fu- next year or two with the fancy term Superfund bill which we are moving ture. Y2K. It is computer conversion to the along now and which has used in the I thank the Chair, and I urge my col- next millennium. past these very funds; in other words, leagues to support the ROTH amend- We know that most computers in our these are Superfund taxes. ment and to reject the Kerrey amend- country, whether it is in the IRS, The Kerrey amendment, if adopted, ment. whether it is in the companies, have a would prevent meaningful reform of Mr. BAUCUS addressed the Chair. system where they have two digits for the Superfund Program. I could discuss The PRESIDING OFFICER (Mr. the date, two digits for the month, and at length the numerous problems that ENZI). Who yields time? two digits for the year. What is today? plague Superfund. There is no question Mr. KERREY. I yield such time as Today is May 6, 1998. So it would be 05– it has a lot of difficulties. I am pre- necessary to the Senator from Mon- 06–98. pared to explain the solutions we pro- tana. That is how the computers record to- pose in our comprehensive Superfund The PRESIDING OFFICER. The day’s date. All computers do that. So bill that is on the floor now, but it is Chair recognizes the Senator from we get to December 1999—12–30–99, 12– not necessary to do that today. Montana. 31–99, and next is 01–01–00. Now, we like While the Environment and Public Mr. BAUCUS. Mr. President, I thank to think that is January 1, 2000, but Works Committee reported our Super- my friend from Nebraska. most computers today will record that fund bill on an 11-to-7 vote—there are I strongly support the Kerrey amend- as January 1, 1900, because two zeros 18 members of our committee, 10 Re- ment for several reasons. First, the are treated as 1900, not 2000. Massive publicans and 8 Democrats—the bill funding mechanism provided for in the problems.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4388 CONGRESSIONAL RECORD — SENATE May 6, 1998 It is going to cost the IRS, to convert with $7 billion more revenue than oth- pen. My guess is the majority will all these computers just to meet this con- erwise is the case because we are wid- vote for the Roth amendment and that version problem, $1 billion—$1 billion ening the budget deficit, not decreasing will pass. And if it does pass, I will not just to convert. That is to say nothing it in the second 5 years. insist on a rollcall vote on the alter- of all the other costs to comply with Also, on that amendment—let me say native amendment. There are other al- new changes in the law. it again. First is the underlying ternatives that we can come up with. So the Kerrey amendment is very, amendment. It further complicates the The baseline question is going to be very logical. It is safe. Maybe a little conversion problem. It is a gimmick. for us, after the Roth amendment is ac- on the conservative side. It says, let us That is one choice. The other choice is cepted: How comfortable do you feel delay the effective dates of some of to enact a revenue measure which is with the provisions in it? So, you will these new provisions. Why? Because we not a gimmick and which will not fur- have rejected the alternative amend- do not want to further complicate the ther complicate the conversion prob- ment, fine. Let us reject the alter- conversion problem. lem. That is the case. native amendment. But remember this: This IRS restructuring bill is going Mr. President, I think the choice is This law now is going to contain a pro- to further complicate the conversion pretty simple. I think it is pretty vision in there that is going to do problem—further complicate it—not straightforward. I think, accordingly, something for certain taxpayers. Ap- lessen, but further complicate it. So we should put politics aside. I know the proximately 170,000 taxpayers will be Senator KERREY says, well, let us not majority party is going to vote for the affected by this provision in the law. do the gimmick, let us delay the effec- amendment because that is what they How will they be affected? That is tive date a little bit, and let us also are told to do. That is the drill. You the question we have to ask ourselves. delay the effective date to take care of vote for that one. But if you step back The answer is, they are going to be en- the Y2K problem, the conversion prob- and think a little bit about what is titled to pay more taxes early on, ap- lem. really going on here, I hope both par- proximately—the estimate is $47,000 The underlying amendment, the ties can find a way to come together, per taxpayer. They will pay about $8 manager’s amendment—I have the find a way not to further complicate billion total. And then they will not highest regard for my friend from Dela- the conversion problem and to pass a pay any taxes in the outyears. When ware, the chairman of the committee— revenue-raising measure that is not a they convert, they will not pay any does not delay, therefore, further gimmick. taxes. We are trying to ascertain what causes a problem for the IRS to con- Believe me, Mr. President, the the outyear costs are going to be for vert and is much more expensive. It Kerrey amendment is certainly the be- this program, Mr. President. also comes up with a way to get rev- ginnings of that. Maybe with further I ask unanimous consent that a re- sponse from Joint Tax to this question enue, which is a gimmick. modifications we can come together to be printed in the RECORD. Some on the floor have said that ex- finally get this thing passed. There being no objection, the mate- tending the Superfund tax will prevent Mr. KERREY addressed the Chair. rial was ordered to be printed in the the enactment of Superfund. That is The PRESIDING OFFICER. The RECORD, as follows: not true, just basically is not true. Chair recognizes the Senator from Ne- What is the advantage of using the ex- braska. CONGRESS OF THE UNITED STATES, tension of the Superfund tax? I will Mr. KERREY. I thank you, Mr. Presi- JOINT COMMITTEE ON TAXATION, Washington, DC, May 5, 1998. give you several. dent. To: Mark Patterson. One, it is not a gimmick. It is First, I want to make it clear again From: Lindy L. Paull. straight. It is right there. People know what we are doing here. We are trying Subject: Revenue Request. what it is. It is not a gimmick. Second, to come up with an offset for $9 billion This is in response to your telephone re- it is a tax that everybody knows about, worth of additional cost that the Sen- quest of May 5, 1998, for a revenue estimate is comfortable with. Sure, it expired a ate bill has that the House bill does of a proposal which would expand the eligi- couple years ago, but everybody knows not. It is $9 billion worth of additional bility for conversions to Roth individual re- tirement arrangements (‘‘IRAs’’) who pays the tax, what the tax is; and loss of revenue, $9 billion of loss of rev- Under present law, uniform minimum dis- it would be extended I think to the enue that occurs as a consequence of tribution rules generally apply to all types year 2000, which means that the rev- changes that we are making in the tax of tax-favored retirement vehicles, including enue is there. law. Somebody will pay less taxes. qualified retirement plans and annuities, Let us say Congress does enact That is essentially what this amounts IRAs other than Roth IRAs, and tax-shel- Superfund. And I sure hope it does. I to. tered annuities (sec 403(b)). Distributions are required to begin no later say, Mr. President, we have been work- Mr. President, we tried to ascertain than the participant’s required beginning ing on Superfund for a long time. Let who was going to benefit from these date (sec. 401(a)(9)). The required beginning us say we enact Superfund. I hope we changes. I think it is very important as date means April 1 of the calendar year fol- do. That does not mean it cannot be we look at our tax law that we ask our- lowing the later of (1) the calendar year in enacted because previously we ex- selves—since the vast majority of our which the employee attains age 701⁄2, or (2) tended the Superfund tax. Not at all. taxes come from middle-income Ameri- the calendar year in which the employee re- The Superfund tax we talk about here cans and there is a significant concern tires. In the case of an employee who is a 5- on their part as to whether or not they percent owner (as defined in section 416), the is not offset against the Superfund. It required beginning date is April 1 of the cal- is not offset against—it is there. It is are paying their fair share, we tried to endar year following the calendar year the revenue and held in a pot to pay for the get some distributional analysis on employee attains age 701⁄2. the Internal Rev- bill. this thing to find out who is going to enue Service has issued extensive regula- We can still enact Superfund. And, benefit from the innocent spouse provi- tions for purposes of calculating minimum frankly, the underlying tax bill still sions, the burden of proof shifts, and distributions. In general, minimum distribu- pays part of Superfund. The Superfund the Tax Court. Not many Americans go tions are includible in gross income in the bill will still go to the Finance Com- to Tax Court. There is a provision in year of distribution. Under present law, all or any part of mittee. The Finance Committee is here as well that has to do with inter- amounts in a deductible or nondeductible pretty creative in figuring out ways to est being accumulated. IRA may be coverted into a Roth IRA. Only find the additional revenue, which will Unfortunately, Joint Tax was not taxpayers with adjusted gross income not be very much, basically to pay for able to give us a distributional anal- (‘‘AGI’’) of $100,000 or less are eligible to con- the orphan share, the effect of the later ysis. So we are flying a little bit blind vert an IRA into a Roth IRA. In the case of date. There is no rocket science in the and not able to describe who is going to a married taxpayer, AGI is the combined choice of the standards we have before benefit from these provisions. The un- AGI of the couple. Married taxpayers filing a us. derlying issue for us, though, is we now separate return are not eligible to make a conversion. On the one hand it is the underlying have to find $9 billion. If a taxpayer is required to take a min- amendment, which is a gimmick, We have a proposal. Chairman ROTH imum required distribution from an IRA for which is deceiving the taxpayers, has a proposal. I alert colleagues, by a year, the amount of the required distribu- which will require this body to come up the way, what I think will likely hap- tion

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4389 is includible in gross income, and cannot be retirement of 77 million Americans This is the tip of the iceberg. The tax rolled over into a Roth IRA. called baby boomers. If you look at the only scores 10 years out. They are say- The proposal would modify the definition cost, the outyear cost of our manda- ing, yes, Americans with over $100,000 of AGI to exclude the required minimum dis- tribution from the taxpayer’s AGI for the tory programs, you can see clearly in retirement income converting to a year of the conversion for purposes of deter- what is going to happen. Roth IRA pay $47,000 in taxes each, and mining eligibility to convert from an IRA to In order to fund a tax cut for Ameri- that will add to $2.6 billion by year 1, 2, a Roth IRA. The required minimum distribu- cans who have $100,000 a year of retire- 3, but after that it starts to cost more tion would not be eligible for conversion. ment income and up, because their and more money as the individuals The proposal would be effective for years heirs or whoever is converting and not convert and don’t pay any tax on their beginning after December 31, 1997. We esti- going to pay any taxes on this income, income. That is basically what will mate that the proposal would change Federal in order to fund a growing tax cut for happen—and it grows. fiscal year budget receipts as follows: Fiscal Years: these individuals, we are going to be I say to the Senator from North Da- Billions cutting programs for middle-income kota, not only are you exactly right, 1998 ...... (*) Americans. It is an inescapable thing but in the fourth year it costs $900 mil- 1999 ...... $2.6 that we will be facing. lion and in the 10th year it is $1.7 bil- 2000 ...... 3.1 lion. It is going up. This is less taxes 2001 ...... 3.1 So, again, I want my colleagues to 2002 ...... ¥0.9 understand, issue No. 1 is, do you want that upper-income Americans will pay 2003 ...... ¥1.0 to spend another $9 billion to reduce on these retirement accounts. As I 2004 ...... ¥1.2 the taxes of Americans who have been said, it is apt to be the heirs. ¥ 2005 ...... 1.4 affected by innocent spouses who go to Who will pick up the slack? We know 2006 ...... ¥1.5 who will pick up the slack. If this 2007 ...... ¥1.7 Tax Court or who have other problems 1998–2002 ...... 7.8 that are identified in this bill? If the amendment is accepted, which I sus- 1998–2007 ...... 1.1 answer is yes, then you have to find an pect it will, I hope colleagues will look (*) Gain of less than $50 million. offset. And what we have is the chair- at the details of it. If you want to Note: Details do not add to totals due to rounding. man’s proposal to reduce the taxes of spend another $9 million in the second CONGRESS OF THE UNITED STATES, upper-income Americans, or more like- 5 years to pay for all the things that we JOINT COMMITTEE ON TAXATION, ly their heirs, at some point out in the added in the Senate Finance Com- Washington, DC, May 5, 1998. mittee, most of which are good and To: Nick Giordano and Maury Passman. future, and that point is the very point when our mandatory programs are reasonable, if you want to add those From: Lindy L. Paull. provisions, the question is how will you Subject: Request for Distributional Effects. going to be squeezing all of our discre- This is in response to your request dated tionary programs even worse than they pay for it. My hope is that we will find April 23, 1998, for the distributional effects of are today. an alternative to this. Mr. DORGAN. If the Senator will provisions contained in H.R. 2676, the ‘‘Inter- My expectation is the majority will yield, I think I understood the Senator nal Revenue Service Restructuring and Re- come down and vote for the amend- form Act of 1998’’ relating to: (1) the burden to say you were not able to get any ment that the Senator from Delaware of proof; (2) innocent spouse relief; and (3) burden tables or distribution tables to has offered, the chairman of the Fi- the suspension of accrual of interest and pen- determine who gets the benefit of this nance Committee. As I said, I will not alties if the Internal Revenue Service proposal. That is troublesome because insist on a rollcall vote on ours. (‘‘IRS’’) fails to contact the taxpayer within when ideas are brought to the floor as 12 months after a timely filed return. Colleagues, I hope both Republican late as this, you are unable to get in- We can not provide analyses of the dis- and Democrats will look at this pay- formation about who this is going to tributional effects of these types of pro- for. It will not be too late for us to benefit and how. posals. In general, the information used to change it. We can still change it on prepare estimates for these types of pro- Mr. KERREY. The Senator is right. posals does not come from statistical sam- this floor. We can change it in con- Title 3 of the bill is called the tax- ples of taxpayer return information, but ference. I don’t think when you exam- payer rights provision. I worked very from various operational data bases within ine the details of this pay-for that you hard on those provisions. We extended the IRS collectively referred to as adminis- will be very comfortable going home to lots of new taxpayer rights. In the bill trative data. Administrative data does not Nebraska or other States, first of all, that Senator GRASSLEY and I intro- contain the type of taxpayer income infor- finding somebody who has over $100,000 duced in the Finance Committee—and I mation necessary to prepare a distributional worth of retirement income and say- voted for it—we added some additional analysis. Moreover, often the data are in an ing, ‘‘Congratulations, your heirs won’t aggregate form so that individual taxpayers rights. can not be identified. As a result, there pay any taxes on whatever asset you The problem is we don’t know who would be an enormous amount of uncer- convert to a Roth IRA.’’ will benefit from those tax reductions. tainty involved in characterizing the income Mr. DORGAN. Will the Senator We know three principal provisions distribution of taxpayers contained in this yield? cost us money. One is the shifting of type of data. Should you wish to discuss this Mr. KERREY. I am happy to yield to burden of proof in Tax Court. For citi- request any further, please feel free to con- the Senator. zens, they need to ask themselves, do tact me. Mr. DORGAN. I venture to say most they go to Tax Court? If they don’t go Mr. KERREY. Mr. President, what Members of the Senate are not very fa- to Tax Court and don’t have the experi- happens is that in the first 5 years that miliar with this issue because the bill ence on a regular basis in Tax Court, this provision is in effect, Joint Tax is was brought to the floor and a mecha- they will not bill. estimating there will be $2.6 billion of nism to pay-for—it is brought to the The second provision is called inno- additional revenue coming in year 1; floor this morning; I guess it was dis- cent spouse relief. They have to ask, $3.1 billion in year 2; $3.1 billion in year closed yesterday. will that affect me? Seventy percent of 3. Americans with incomes over As I looked at it, it seems to me it is Nebraskans do not itemize their deduc- $100,000, who are 70.5 years of age or exactly as the Senator from Nebraska tions. They will not be impacted by the older, $100,000 of retirement income or described. But even more than that, it second one. more, they will be converting existing is a device by which you bring some The third one, the suspension of the accounts into Roth IRA accounts, and money here and say this is really paid accrual of interest and penalties if the paying, on average, $47,000 for the for but. In fact, the cost in the out- IRS fails to contact the taxpayer with- privilege of doing that. In the year years is very substantial. in 12 months after a timely filed re- 2002, we will lose $1 billion; in 2003, we It is just a timing issue, kind of a turn. Again, ask yourself who will be will lose $1 billion; in 2004, it goes to clever timing issue, but in my judg- affected by this? We were unable, I re- $1.2 billion we lose; in 2005, we lose $1.4 ment not a very thoughtful way to do gret, to get from the Joint Tax Com- billion; in 2006, we lose $1.5 billion; and this bill. mittee an answer to that. We don’t in 2007, we lose $1.7 billion. The trend Mr. KERREY. The Senator from know who will benefit from those three line is up. North Dakota is exactly right. additional provisions, but that is what I remind my colleagues, in the year I hope colleagues will look at this is costing us the money. That is why 2010, we will see the beginnings of the letter from the Joint Tax Committee. we have to find some kind of an offset.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4390 CONGRESSIONAL RECORD — SENATE May 6, 1998 As I said, I understand the die is like- their regular IRA into a Roth IRA as have to have an estate over a million ly to be cast and we will probably have long as the taxpayer and the taxpayer’s dollars in order to generate $100,000 55 votes for the Roth amendment and spouse have adjusted income of $100,000 worth of income. 45 votes against. I will not ask for a or less. Again, let me repeat, older Please don’t tell me that tax lawyers rollcall vote on our alternative, but I Americans are now required to receive and tax advisers can’t figure out a way appeal both to Republicans and Demo- minimum distribution from their reg- to transfer this to your heirs. If that crats on the floor to examine what it is ular IRA on an annual basis beginning assertion is made by a colleague, let’s we are about to do and ask ourselves, in the year following the year they at- bring a tax adviser in before one of our do we want to open up a hole in rev- tain the age of 701⁄2. Those required dis- committees and ask them. It darn sure enue in the outyears as a consequence tributions must be counted, under cur- can, and they darn sure will. of these conversions that will benefit a rent law, as part of the older taxpayer- This provides a benefit for a very relatively small number of Americans adjusted gross income, which in some small amount of Americans, and, who have retirement income in excess instances will cause these older Ameri- frankly, it is very difficult to make the of $100,000 a year. cans to become ineligible to roll over case that they need a benefit. They are Mr. President, I yield the floor. their IRAs. not treating them in a fashion that is The PRESIDING OFFICER. The My amendment gives these older tax- equal; they are treating them un- Chair recognizes the Senator from payers the opportunity to roll over equally with other Americans who are Delaware. their IRAs into Roth IRAs by not in the workforce and might be looking AMENDMENT NO. 2339 counting these required minimum dis- to retirement accounts as well. Mr. ROTH. Mr. President, as I men- tributions toward $100,000 adjusted Mr. President, this pay-for ought to tioned earlier, Alan Greenspan says growth income. be rejected by this body; it is going to that America’s most important eco- It is only fair, in my judgment, that be accepted nonetheless. I hope we nomic problem is its low savings rate. these older taxpayers are given the have some ‘‘morning after’’ doubts With that, I agree. As a practical mat- same ability to roll over their IRAs about this, after examining whom it is ter, I have done my very best the last and not be penalized because they must going to benefit and the dilemma it several years to try to build the kind of take distribution from their regular will pose to us down the road. I don’t incentives into the tax picture that IRA solely because of their age. know how many in this body expect to would promote savings on the part of Let’s be clear here, the revenue cost be here 6, 7, 8 years from now, but if the American people. The rollover pro- by this provision comes from taxpayers you are here, one of the questions you vision in this amendment is a small who will pay tax on their regular IRA are going to have to answer is: Why did step toward resolving our No. 1 eco- when they convert to the Roth IRA. you give away $2 billion a year back in nomic problem. These conversions are entirely vol- 1998 to less than 1 percent of the Amer- Just let me point out what we are untary on the part of the taxpayers. ican public, who are not struggling, saying. What we are proposing is let- Mr. President, I ask the Members of who are not foraging in the alley for ting older people keep the money that this distinguished body to support the food, and they are not trying to figure they have saved. We are not asking Roth amendment because I think it out how to make ends meet? They will them to do anything that others are brings equity into the picture and only use this change in the law to transfer not able to do. As a practical matter, treats the senior citizens the same as an asset to heirs, and their heirs won’t the way the system now works, it dis- the younger. pay any taxes as a consequence. criminates against the older people. Mr. KERREY addressed the Chair. Mr. President, as I say, I know when The problem is that if you are under The PRESIDING OFFICER. The Sen- it is time, if not to accept defeat, to ac- the age of 701⁄2, there is no requirement ator from Nebraska is recognized. knowledge it. I expect 55 Republican that you make withdrawals from your Mr. KERREY. Mr. President, as I votes for this amendment. I do not in- IRA. It is only when you reach 701⁄2 said, the die is cast on this thing. This tend to ask for a rollcall vote on the that you are required to do so under amendment is going to be accepted. substitute, but I hope my colleagues, the deductible IRA. So there is a built- The question is, Will we have any reex- as they begin to examine what this in discrimination against the senior amination moment? We will reexamine amendment does, will ask that we citizens. I think that is wrong. what we are about to do? come back and revisit the pay-for for Again, let me emphasize what we are Again, this affects people with in- the second 5 years. talking about. What we are proposing comes over $100,000 in retirement in- I yield back whatever time I have. is to treat these older Americans, those come. To get $100,000 in retirement in- AMENDMENT NO. 2340, AS MODIFIED that are over 701⁄2, to have the same come, I am probably going to have to Mr. KERREY. Mr. President, as I in- kind of treatment as those that are have a million or more dollars in liquid dicated earlier, I have to ask for one younger than 701⁄2. As I said, if you are assets that are earning this income. I modification. It is a date on page 2, under 701⁄2 there is no requirement of would probably have tax-exempt bonds line 2. In the earlier unanimous con- withdrawals, and of course the basic that I own as well. This is a very select sent request, I indicated that I might problem is that if you have income in group of people. We are not penalizing need to modify our amendment. excess of $100,000 you are not entitled them; we are treating them like every- I send the modified amendment to to this benefit. body else. I am capable of feeling sym- the desk, as described. Let me correct one further point that pathy for low- and moderate-income The PRESIDING OFFICER. The has been made. My distinguished friend seniors who are struggling to pay for amendment is so modified. and colleague, Senator KERREY, has health care bills, and about making The amendment (No. 2340), as modi- said that the purpose of the IRA roll- certain that Americans have the oppor- fied, is as follows: over provision is to allow heirs to es- tunity to save. But we are not helping Beginning on page 277, line 4, strike all cape payment of estate taxes. That is Americans who are struggling to save through page 279, line 25. just not the case. If the IRA is part of with this. These are Americans who On page 280, line 1, strike ‘‘3105’’ and insert the estate, then the individual who have accumulated a substantial ‘‘3104’’. On page 282, line 11, strike ‘‘ ’’ and in- passes on is subject to the estate tax. If amount of wealth. 3106 sert ‘‘3105’’. he or she tries to give it during the If we want to help struggling Ameri- On page 286, line 1, strike ‘‘3107’’ and insert lifetime to someone else, and it is a cans, we ought to cut the payroll tax, ‘‘3106’’. permanent irrevocable gift, then it is as Senator MOYNIHAN is proposing, giv- On page 309, lines 7 and 8, strike ‘‘the date subject to the gift tax. So there is no ing Americans an $800 billion cut in of the enactment of this Act’’ and insert escaping of estate taxes by this provi- taxes; that would go immediately into ‘‘September 1, 1998’’. sion. savings. That is exciting to me. And On page 399, line 24, strike ‘‘the date of the enactment of this Act’’ and insert ‘‘Decem- Let me just say, as we all know, the 98.5 percent of Americans die with es- ber 31, 2001’’. Roth IRA has become a very popular tates under $600,000. We are talking On page 400, lines 4 and 5, strike ‘‘the date savings vehicle. A taxpayer, as I said, about 1.5 percent of the American peo- of the enactment of this Act’’ and insert who has a regular IRA may convert ple who have estates over $600,000. You ‘‘December 31, 2001’’.

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On page 415, between lines 16 and 17, insert: ‘‘(C) ASSUMPTION.—For purposes of this (B) becomes subject to a lease after such SEC. 5007. CLARIFICATION OF DEFINITION OF paragraph, in determining the amount of any date which was not in effect on such date. SPECIFIED LIABILITY LOSS. liability assumed, the rules of section In the case of property to which paragraph (a) IN GENERAL.—Subparagraph (B) of sec- 357(c)(4) shall apply.’’ (2) applies, the amendment shall only apply tion 172(f)(1) (defining specified liability loss) (2) SECTION 1031.—The last sentence of sec- with respect to periods on and after the date is amended to read as follows: tion 1031(d) is amended— the property becomes tax-exempt use prop- ‘‘(B) Any amount (not described in sub- (A) by striking ‘‘assumed a liability of the erty or subject to such a lease. paragraph (A)) allowable as a deduction taxpayer or acquired from the taxpayer prop- SEC. 5012. EXTENSION OF REPORTING FOR CER- under this chapter which is attributable to a erty subject to a liability’’ and inserting ‘‘as- TAIN VETERANS PAYMENTS. liability— sumed (as determined under section 357(c)(4)) The last sentence of section 6103(l)(7) (re- ‘‘(i) under a Federal or State law requiring a liability of the taxpayer’’, and lating to disclosure of return information to the reclamation of land, decommissioning of (B) by striking ‘‘or acquisition (in the Federal, State, and local agencies admin- a nuclear power plant (or any unit thereof), amount of the liability)’’. istering certain programs) is amended by dismantlement of an offshore drilling plat- (d) CONFORMING AMENDMENTS.— striking ‘‘September 30, 2003’’ and inserting form, remediation of environmental con- (1) Section 351(h)(1) is amended by striking ‘‘September 30, 2008’’. tamination, or payment of workmen’s com- ‘‘, or acquires property subject to a liabil- On page 260, line 14, strike ‘‘shall develop’’ pensation, and ity,’’. and insert ‘‘shall, not later than January 1, ‘‘(ii) with respect to which the act (or fail- (2) Section 357 is amended by striking ‘‘or 2000, develop’’. ure to act) giving rise to such liability oc- acquisition’’ each place it appears in sub- On page 305, lines 3 and 4, strike ‘‘the date curs at least 3 years before the beginning of section (a) or (b). of the enactment of this Act’’ and insert the taxable year.’’ (3) Section 357(b)(1) is amended by striking ‘‘June 30, 2000’’. (b) EFFECTIVE DATE.—The amendment ‘‘or acquired’’. On page 305, lines 10 and 11, strike ‘‘the made by this section shall apply to net oper- (4) Section 357(c)(1) is amended by striking date of the enactment of this Act’’ and insert ating losses arising in taxable years begin- ‘‘, plus the amount of the liabilities to which ‘‘June 30, 2000’’. ning after the date of the enactment of this the property is subject,’’. On page 308, line 13, strike ‘‘the date of the Act. (5) Section 357(c)(3) is amended by striking enactment of this Act’’ and insert ‘‘June 30, SEC. 5008. PROPERTY SUBJECT TO A LIABILITY ‘‘or to which the property transferred is sub- 1999’’. TREATED IN SAME MANNER AS AS- ject’’. On page 309, lines 7 and 8, strike ‘‘the date SUMPTION OF LIABILITY. (6) Section 358(d)(1) is amended by striking of the enactment of this Act’’ and insert (a) REPEAL OF PROPERTY SUBJECT TO A LI- ‘‘or acquisition (in the amount of the liabil- ‘‘December 31, 1999’’. ABILITY TEST.— ity)’’. On page 310, strike line 19, and insert ‘‘De- (1) SECTION 357.—Section 357(a) (relating to (e) EFFECTIVE DATE.—The amendments cember 31, 1999’’. assumption of liability) is amended by strik- made by this section shall apply to transfers On page 312, lines 15 and 16, strike ‘‘the ing ‘‘, or acquires from the taxpayer prop- after the date of the enactment of this Act. date of the enactment of this Act’’ and insert erty subject to a liability’’ in paragraph (2). SEC. 5009. EXTENSION OF INTERNAL REVENUE ‘‘December 31, 1999’’. (2) SECTION 358.—Section 358(d)(1) (relating SERVICE USER FEES. On page 314, lines 3 and 4, strike ‘‘the 180th to assumption of liability) is amended by Subsection (c) of section 10511 of the Rev- day after the date of the enactment of this striking ‘‘or acquired from the taxpayer enue Act of 1987 is amended by striking ‘‘Oc- Act’’ and insert ‘‘December 31, 2000’’. property subject to a liability’’. tober 1, 2003’’ and inserting ‘‘October 1, 2007’’. On page 315, line 11, strike ‘‘June 30, 2000’’ (3) SECTION 368.— SEC. 5010. EXTENSION OF HAZARDOUS SUB- and insert ‘‘December 31, 2000’’. (A) Section 368(a)(1)(C) is amended by STANCE SUPERFUND TAXES. On page 324, strike lines 9 through 12, and striking ‘‘, or the fact that property acquired (a) EXTENSION OF TAXES.— insert: is subject to a liability,’’. (1) ENVIRONMENTAL TAX.—Section 59A(e) is (e) EFFECTIVE DATE.—The amendments (B) The last sentence of section 368(a)(2)(B) amended to read as follows: made by this section shall apply to collec- is amended by striking ‘‘, and the amount of ‘‘(e) APPLICATION OF TAX.—The tax imposed tion actions initiated after December 31, any liability to which any property acquired by this section shall apply to taxable years 1999. from the acquiring corporation is subject,’’. beginning after December 31, 1986, and before On page 343, after line 24, insert: (b) CLARIFICATION OF ASSUMPTION OF LI- January 1, 1996, and to taxable years begin- (c) EFFECTIVE DATE.—This section shall ABILITY.—Section 357(c) is amended by add- ning after December 31, 2001, and before Jan- apply to collection actions initiated after ing at the end the following new paragraph: uary 1, 2008.’’ December 31, 1999. ‘‘(4) DETERMINATION OF AMOUNT OF LIABIL- (2) EXCISE TAXES.—Section 4611(e) is On page 345, lines 6 and 7, strike ‘‘the date ITY ASSUMED.—For purposes of this section, amended to read as follows: of the enactment of this Act’’ and insert section 358(d), section 368(a)(1)(C), and sec- ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE ‘‘December 31, 1999’’. tion 368(a)(2)(B)— SUPERFUND FINANCING RATE.—The Hazardous On page 348, line 6, strike ‘‘December 31, ‘‘(A) a liability shall be treated as having Substance Superfund financing rate under 1998’’ and insert ‘‘December 31, 1999’’. been assumed to the extent, as determined this section shall apply after December 31, On page 351, lines 13 and 14, strike ‘‘the on the basis of facts and circumstances, the 1986, and before January 1, 1996, and after De- date of the enactment of this Act’’ and insert transferor is relieved of such liability or any cember 31, 2001, and before October 1, 2008.’’ ‘‘December 31, 1999’’. portion thereof (including through an indem- (b) EFFECTIVE DATES.— On page 357, lines 6 and 7, strike ‘‘the date nity agreement or other similar arrange- (1) INCOME TAX.—The amendment made by of the enactment of this Act’’ and insert ment), and subsection (a)(1) shall apply to taxable years ‘‘December 31, 1999’’. ‘‘(B) in the case of the transfer of any prop- beginning after December 31, 2001. On page 357, lines 9 and 10, strike ‘‘the date erty subject to a nonrecourse liability, un- (2) EXCISE TAX.—The amendment made by of the enactment of this Act’’ and insert less the facts and circumstances indicate subsection (a)(2) shall take effect on January ‘‘December 31, 1999’’. otherwise, the transferee shall be treated as 1, 2002. On page 357, strike lines 16 and 17, and in- assuming with respect to such property a SEC. 5011. MODIFICATION OF DEPRECIATION sert: ratable portion of such liability determined METHOD FOR TAX-EXEMPT USE (B) December 31, 1999. on the basis of the relative fair market val- PROPERTY. On page 362, lines 12 and 13, strike ‘‘the ues (determined without regard to section (a) IN GENERAL.—Subparagraph (A) of sec- 60th day after the date of the enactment of 7701(g)) of all assets subject to such liabil- tion 168(g)(3) (relating to tax-exempt use this Act’’ and insert ‘‘December 31, 1999’’. ity.’’ property subject to lease) is amended to read On page 370, lines 17 and 18, strike ‘‘the (c) APPLICATION TO PROVISIONS OTHER THAN as follows: date of the enactment of this Act’’ and insert SUBCHAPTER C.— ‘‘(A) TAX-EXEMPT USE PROPERTY.—In the ‘‘January 1, 1999’’. (1) SECTION 584.—Section 584(h)(3) is amend- case of any tax-exempt use property, the re- On page 371, line 11, insert: ‘‘This sub- ed— covery period used for purposes of paragraph section shall apply only with respect to (A) by striking ‘‘, and the fact that any (2) shall be equal to 150 percent of the class taxes arising after June 30, 2000, and any li- property transferred by the common trust life of the property determined without re- ability for tax arising on or before such date fund is subject to a liability,’’ in subpara- gard to this subparagraph.’’ but remaining unpaid as of such date.’’ after graph (A), (b) EFFECTIVE DATE.—The amendment the end period. (B) by striking clause (ii) of subparagraph made by this section shall apply to prop- On page 374, lines 4 and 5, strike ‘‘180 days (B) and inserting: erty— after the date of the enactment of this Act’’ ‘‘(ii) ASSUMED LIABILITIES.—For purposes of (1) placed in service after December 31, and insert ‘‘July 1, 2000’’. clause (i), the term ‘assumed liabilities’ 1998, and On page 379, line 15, insert ‘‘, on and after means any liability of the common trust (2) placed in service on or before such date July 1, 1999,’’ after ‘‘shall’’. fund assumed by any regulated investment which— On page 382, line 2, strike ‘‘60 days after company in connection with the transfer re- (A) becomes tax-exempt use property after the date of the enactment of this Act’’ and ferred to in paragraph (1)(A). such date, or insert ‘‘on January 1, 2000’’.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4392 CONGRESSIONAL RECORD — SENATE May 6, 1998 On page 383, line 14, insert ‘‘, except that Mr. KERREY. I move to lay that mo- It will also go a long way toward the removal of any designation under sub- tion on the table. making the agency more effective in section (a)(2)(A) shall not be required to The motion to lay on the table was its policy mission and more responsive begin before January 1, 1999’’ after ‘‘Act’’. agreed to. to budget constraints. We have all wit- On page 385, lines 7 and 8, strike ‘‘the date of the enactment of this Act’’ and insert VOTE ON AMENDMENT NO. 2340 nessed the $4 billion debacle of the IRS ‘‘January 1, 2000’’. The PRESIDING OFFICER. Under computer modernization effort and AMENDMENT NO. 2339 the previous order, the question occurs want to ensure resources are allocated The PRESIDING OFFICER. The Sen- on amendment No. 2340. responsibly in the future. The amendment (No. 2340) was re- As ranking member of the Treasury ator from Delaware has 4 minutes re- jected. Appropriations Subcommittee, I have maining. Mr. ROTH. Mr. President, I move to had the opportunity to meet the Com- Mr. ROTH. Is the Senator ready to reconsider the vote. missioner of the IRS, Mr. Rossotti, and yield the balance of his time? Mr. KERREY. I move to lay that mo- am encouraged by his strong back- Mr. KERREY. Yes, sir. tion on the table. ground in management and informa- Mr. ROTH. Mr. President, I yield the The motion to lay on the table was tion technology. The legislation before balance of my time. agreed to. us will provide the Commissioner with The PRESIDING OFFICER. All time Mr. BYRD addressed the Chair. tools to put together a high-quality is yielded back. The PRESIDING OFFICER. May we team to run the agency, and award Mr. KERREY. Mr. President, I ask please have order. The Senator from those who do their jobs well. for the yeas and nays. West Virginia is recognized. This bill also includes new sources of The PRESIDING OFFICER. Is there a Mr. BYRD. Mr. President, this re- outside oversight of the agency, such sufficient second? quest has been cleared with the leaders as the Oversight Board and the new There is a sufficient second. on both sides. Treasury IG’s Office for Tax Adminis- The yeas and nays were ordered. I ask unanimous consent that the tration. Coming from the business The PRESIDING OFFICER. Under distinguished Senator from Texas, Mrs. world, I know the importance of ac- the previous order, the question is on HUTCHISON, and I may proceed for not countability and constant self-exam- agreeing to the ROTH amendment No. to exceed 35 minutes as in morning ination. Management and employees 2339. business for the purpose of introducing should always be looking for ways to The yeas and nays have been ordered. a bill and speaking thereon. do their jobs more effectively and be The clerk will call the roll. The PRESIDING OFFICER. Without open to constructive criticism. The legislative clerk called the roll. objection, it is so ordered. The Senator But for too long, the IRS has oper- Mr. NICKLES. I announce that the from West Virginia is recognized. ated as if it were a class by itself, Senator from North Carolina (Mr. (The remarks of Mr. BYRD and Mrs. somehow above the standards of effi- HELMS) is necessarily absent. HUTCHISON pertaining to the introduc- ciency and customer service that any Mr. FORD. I announce that the Sen- tion of S. 2036 are located in today’s American business must follow to sur- ator from Hawaii (Mr. AKAKA) is absent RECORD under ‘‘Statements on Intro- vive. due to a death in the family. duced Bills and Joint Resolutions.’’) We have witnessed the effects of this The PRESIDING OFFICER (Mr. Mr. BYRD. Mr. President, I under- problem in my home state of Wis- FRIST). Are there any other Senators in stand that Senator KOHL wishes a few consin. For the past two and a half the Chamber desiring to vote? minutes on another matter. years, we have worked to address alle- The result was announced—yeas 56, Whatever remaining time remains gations of misconduct and discrimina- nays 42, as follows: under our request, I ask that the Sen- tion at the Milwaukee-Waukesha IRS [Rollcall Vote No. 120 Leg.] ator from Wisconsin, Mr. KOHL, have Offices. These allegations were dis- YEAS—56 the remaining time. cussed at length at the Committee The PRESIDING OFFICER. Without Abraham Faircloth McConnell hearings last week, and were so serious Allard Frist Moseley-Braun objection, it is so ordered. that some IRS employees felt the need Ashcroft Gorton Murkowski The Senator from Wisconsin is recog- to sneak into my office in Milwaukee Bennett Gramm Nickles nized. to report on abuses. Biden Grams Roberts Mr. KOHL. Thank you, Senator Bond Grassley Roth Employees feared retaliation and al- Brownback Gregg BYRD. leged again and again that manage- Santorum Mr. President, I rise today in strong Burns Hagel Sessions ment was allowing, if not promoting, a Campbell Hatch Shelby support of the IRS Reform bill. There Chafee Hutchinson hostile work environment. Such a de- Smith (NH) is no doubt that this bill will count Coats Hutchison plorable situation of fear and intimida- Smith (OR) Cochran Inhofe among the most important pieces of tion is unacceptable, must be stopped, Collins Jeffords Snowe legislation that we will pass in the Specter and must be prevented from happening Coverdell Kempthorne 105th Congress. A great deal of thanks Craig Kyl Stevens in the future. D’Amato Lott Thomas and appreciation is due to Senators This bill sets up a confidential means DeWine Lugar Thompson ROTH and MOYNIHAN for their work through which honest employees can Domenici Mack Thurmond sheperding this bill through the Fi- report allegations of abuses. In addi- Enzi McCain Warner nance Committee, and most especially tion, I am offering an amendment with NAYS—42 to my friend from Nebraska, Senator my colleague, Senator FEINGOLD, to en- Baucus Feinstein Leahy BOB KERREY, whose efforts on the Re- sure that oversight of the Milwaukee Bingaman Ford Levin structuring Commission and tireless office is a top priority of the new IG. Boxer Glenn Lieberman Breaux Graham Mikulski advocacy brought us here today. This legislation will prevent abuses in Bryan Harkin Moynihan We have all been struck by the sto- the future, but we must also be vigi- Bumpers Hollings Murray ries of abuse of taxpayers by over- lant in dealing with serious problems Byrd Inouye Reed zealous or self-serving IRS employees. that have yet to be resolved in the Cleland Johnson Reid Conrad Kennedy Robb And all of us have received calls of con- present. Daschle Kerrey Rockefeller cern and outrage from constituents Mr. President, while taking time to Dodd Kerry Sarbanes who feel they have been treated un- mention only a few of the many impor- Dorgan Kohl Torricelli fairly by an agency that wields a tre- tant provisions of this bill, I want to Durbin Landrieu Wellstone Feingold Lautenberg Wyden mendous amount of power in the daily urge my colleagues to support this leg- lives of Americans. islation. NOT VOTING—2 We have also learned of retaliation We have a historic opportunity to Akaka Helms against honest IRS employees who right future wrongs and be party to the The amendment (No. 2339) was agreed worked hard and wanted to do the right creation of a more consumer-friendly, to. thing by speaking out against abuses. efficient and responsible IRS. Let us Mr. ROTH. Mr. President, I move to This legislation will go a long way to- seize that opportunity with enthusiasm reconsider the vote. wards addressing these problems. and without further delay.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4393 Mr. BYRD. Mr. President, I yield I offer today establishes the framework the IRS will be uniquely qualified to back the balance of the time. to accomplish that goal. provide critical perspective and feed- Mr. BOND addressed the Chair. Mr. President, my amendment cre- back to the Treasury Department in The PRESIDING OFFICER. The Sen- ates an independent, full-time Board of crafting future tax proposals. ator from Missouri is recognized. Governors for the IRS, which will exer- Similarly, the bill’s part-time board Mr. BOND. Mr. President, I will rise cise top-level administrative manage- would have no responsibility or author- to introduce an amendment, but I will ment over the agency. The Board of ity over specific IRS law enforcement defer to my colleague from Delaware if Governors will have full responsibility, activities or personnel actions. he wishes to ask for a time agreement. authority, and accountability for the These restrictions fly in the face of Mr. ROTH. Mr. President, I say to IRS’ enforcement activities, such as the testimony that the Finance Com- the distinguished Senator that I do examinations and collections, which mittee received just last week, not to want to ask for an agreement on the 40 are often at the heart of taxpayer com- mention to committee’s hearings last minutes, but I have to wait for Senator plaints about the IRS. In addition, the fall. Each of us was shocked by the tax- KERREY to return. I will raise that Board will oversee the Office of the payers and IRS employees who came when he comes. Taxpayer Advocate and the new inde- forward with accounts of poor service Mr. BOND. Mr. President, I rise in pendent appeals function required by and abuse, and many of these cases in- support of the Internal Revenue Serv- the bill. volved IRS examination or collection ice Restructuring and Reform Act that Under my amendment, the Board of activities. Moreover, these horror sto- we are now considering. Over the past Governors will consist of five members ries merely echo the countless letters several months Senator ROTH and his appointed by the President and con- and calls that each of us receives from Finance Committee have done an ex- firmed by the Senate, each with a stag- taxpayers embroiled in disputes with emplary job of reviewing the legisla- gered five-year term. Four of the mem- the IRS in our home states. tion sent to us by the House and identi- bers will be drawn from the private sec- Can any of us suggest, with a fying ways to improve and strengthen tor. Overall these members will bring straight face, that creating a part-time that bill. And it’s been well worth the private-sector experience critical to advisory board will ‘‘fix’’ the IRS when wait. I also commend my colleague the management of an agency like the that board cannot know about or ad- from Delaware and his committee for IRS. Of equal importance, they will dress specific enforcement or personnel including a number of the proposals bring the perspective of the diverse problems? While I am not suggesting that I introduced as part of my Putting group of taxpayers the IRS must serve, that the IRS board should address the Taxpayer First Act, earlier this including individuals and small and every taxpayer grievance, the board year. They represent suggestions that I large businesses. The fifth member of should be able to take action with re- received from Missourians and small the Board will be the Commissioner of spect to specific types of examination business owners across the country, Internal Revenue, who will also serve and collection problems and those that who have called, written, and stopped as the Chairman of the Board of Gov- involve IRS personnel. me on the street to stress the need for ernors. Some will argue that the expansion IRS reform and greater taxpayer The board I envision through this of the taxpayer-confidentiality rules rights. amendment corrects the major weak- addresses this issue. I must disagree. While I believe we have made sub- nesses of the bill’s part-time advisory The information that the part-time stantial progress toward that goal, one board. First, my full-time Board of board will receive under this provision aspect of this bill continues to trouble Governors is a permanent solution to is dependent on the discretion of the me—the creation of the so-called over- the management difficulties that have Commissioner and the Treasury Inspec- sight board. As currently proposed, a plagued the IRS for years. It seems like tor General. For too long, ‘‘section majority of this board will consist of little more than a token gesture to cre- 6103’’ has been a convenient shield for six individuals who must split their ate an oversight board for the IRS and the IRS to hide behind, and it will be time between watching over the IRS have it expire after 10 years, as set out too easy for that practice to continue and running their private-sector busi- in the bill. If a board is expected to leaving the board in the dark about the nesses—each of which can be more than turn the IRS around, wouldn’t it make types of problems described all too a full-time job. And even if these indi- sense to continue the reason for that clearly in the Finance Committee’s viduals can dedicate sufficient time, success story? hearings. In addition, limited access to their ability to make real changes for Second, my full-time Board of Gov- taxpayer information won’t help the the benefit of taxpayers amounts to lit- ernors will have real authority to board address personnel problems in tle more than advice to the Commis- make a difference. The Board’s direc- the agency, which is critical if we are sioner, which he may or may not de- tion is to ‘‘oversee the Internal Rev- to restore credibility to the term cide to take. enue Service in the administration, ‘‘service’’ in its name. Despite these issues, the creation of a management, conduct, direction, and My amendment resolves this prob- part-time board has been portrayed by supervision of the execution and appli- lem. As full-time employees, the four many as the linchpin of solving the cation of the internal revenue laws or members of the Board of Governors problems at the IRS. But when has related statutes and tax conventions to drawn from the private sector will have such a part-time advisory board ever which the United States is a party.’’ access to the same information avail- turned around a governmental agency The only exception to this broad au- able to the Commissioner. Moreover, as vast as the IRS and with such a poor thority is that the Board will have the Board under my amendment will record of service to millions of Ameri- only a consultative role in developing have authority to address personnel cans? I have searched for a comparable tax policy. issues. As a result, their hands will not success story within our government, In contrast, the part-time advisory be tied when it comes to restoring tax- and came up dry. And while some point board recommended by the Finance payer service and respect in all IRS en- to Canada’s Revenue Office as an exam- Committee starts with broad authority forcement activities. ple, Canada’s part-time board is still on but is quickly whittled down essen- The bill’s part-time advisory board the drawing board. Consequently, I tially to an advisory role. For instance, also starts out with authority to re- think we are placing too much reliance the part-time board would have no re- view and approve reorganization plans on the untested and unproven concept sponsibility or authority with respect for the IRS. Yet tucked away at the of a part-time board to bring funda- to tax policy. In my view, good tax pol- end of the effective date section is a mental change to the IRS. icy must take into account more than provision barring the part-time board If we are going to create a board to just revenue and collections; it must from approving the current plan to re- steer the IRS back on course, let’s do consider the burdens that the law im- organize the IRS along customer lines. more than add some window dressing poses on the taxpayers and the cor- This contradiction simply defies rea- to this troubled agency. America’s tax- responding burdens involved in admin- son. payers deserve a well-managed agency istering and enforcing those laws. A I am a strong advocate of reorga- committed to service. The amendment full-time Board of Governors managing nizing the IRS into divisions that serve

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4394 CONGRESSIONAL RECORD — SENATE May 6, 1998 particular taxpayers with similar tor. In addition, I think most of my dressing on the current management needs, like individual taxpayers and colleagues would agree that he has structure, a full-time, full authority, small business owners, and I included done an exceptional job during his full accountability Board of Governors such a plan in my Putting the Tax- short tenure at the helm of the IRS. is the answer. payer First Act that I introduced. IRS This criticism also rings rather hol- A part-time advisory board will not Commissioner Rossotti has also em- low when we look at the individuals make a difference in how the agency is braced this approach. With so much who have served on similar full-time run. If we need a board, we need a full- support, why should we restrict even a boards and commissions throughout time board. We don’t need a part-time part-time advisory board from approv- the government, like the Federal Re- advisory board. Otherwise, if we do not ing such a fundamental restructuring serve, the Federal Trade Commission, want to have a full-time board, let’s of the IRS but require its review and and the Securities and Exchange Com- leave the agency’s management alone, approval for all future plans? The full- mission, to name a few. I’ve never because when has a part-time advisory time Board of Governors under my heard it suggested that we scrape the board ever turned an agency around? I amendment would be required to evalu- bottom of the barrel to find people suggest never. ate and sign-off on all plans to reorga- qualified to serve in these full-time po- AMENDMENT NO. 2341 nize the agency—it only makes sense! sitions. Just the opposite is true. As (Purpose: To strike the Internal Revenue Mr. President, besides giving the IRS Commissioner Rossotti, Treasury Sec- Service Oversight Board and establish a board real authority to run the agency retary Rubin, and many others have full-time Board of Governors for the Inter- and make critical changes, my amend- demonstrated, there are business lead- nal Revenue Service) ment also ensures that the members of ers in this country who are willing to Mr. BOND. Mr. President, I send my the Board of Governors are sufficiently take leave from their private-sector amendment to the desk. committed to the task. Having been lives to serve the public. The PRESIDING OFFICER. The governor of my state of Missouri, I Others have argued that the IRS clerk will report. have some appreciation of the time and Commissioner doesn’t need a full-time The assistant legislative clerk read energy it takes to run a large organiza- board to run the agency, especially as follows: tion. But I can’t begin to imagine how since the bill gives the Commissioner The Senator from Missouri (Mr. BOND) pro- I could have hoped to make a dif- broader authority to bring in senior poses an amendment numbered 2341. ference if I spent only a few days a year management talent. If that’s true, why Mr. BOND. Mr. President, I ask unan- commuting to our capital, Jefferson do we need a board at all? Why not imous consent that reading of the City, to govern the state, and spent the have just Alan Greenspan run the Fed- amendment be dispensed with. rest of my time running a successful eral Reserve or Arthur Levitt oversee The PRESIDING OFFICER. Without business or even a not so successful law the securities markets? Surely the objection, it is so ordered. practice. That is the trap we will cre- same arguments would apply to those (The text of the amendment is print- ate with a part-time advisory board for boards and those commissions. ed in today’s RECORD under ‘‘Amend- the IRS. I believe there is value in having a ments Submitted.’’) The IRS has over 100,000 employees core group of individuals who bring im- Mr. ROTH. Mr. President, as I indi- spread across the country and around portant talents and experience to com- cated before the distinguished Senator the world. The agency has a budget of plement the Commissioner’s manage- from Missouri spoke, we had a ten- over $7 billion, and it collects more ment of an agency like the IRS. Just as tative agreement of 40 minutes for this than $1 trillion each year from millions with other boards and commissions amendment, with 20 minutes to a side. of taxpayers. It is an imposing task for throughout the government, these indi- I ask that we unanimously agree to even a full-time Board of Governors to viduals can share the top-level man- that with the time that the distin- reform an institution of this size— agement burdens and allow the Com- guished Senator used to discuss the common-sense suggests it is an impos- missioner to focus on the most pressing amendment being deducted from the 20 sible task for a part-time advisory issues completely and quickly. minutes. I understand that is roughly board. A third issue raised by my opponents 13 minutes. Is that satisfactory? What’s more, the proponents of the is that a full-time board with real au- Mr. BOND. I ask for 10 minutes, be- bill contend that its part-time board thority will make the IRS too inde- cause there are others on this side who will improve accountability within the pendent. So what exactly is the prob- may wish to speak. IRS. But take, for example, a part-time lem? Sadly, there have been allega- Mr. KERREY. Mr. President, I won- board member who is an executive in a tions in recent years that the IRS is der if the Senator from Delaware would major corporation headquartered on being used for politically-motivated agree—Senator REID has an amend- the west coast. He flies to Washington audits. Whether true or not, such as- ment he wants to bring right after several times a year as part of his IRS sertions severely undercut any efforts this—that we stack these votes, and oversight responsibilities. How can he to instill confidence in our tax-admin- have a UC to have both of these votes be accountable for the daily actions of istration system. While I applaud the stacked. this enormous organization when he is provision in the bill that prohibits Ex- Mr. ROTH. That would be fine. little more than a hostage to its bu- ecutive Branch influence over taxpayer The PRESIDING OFFICER (Mr. reaucracy on his occasional visit to audits, we can further ensure that re- BURNS). Is there objection? Washington? If we are going to make sult by establishing a board with rep- Mr. KERREY. We would have to get a changes to the IRS’ management struc- resentatives of both political parties, time agreement. ture, we should give them a real chance as my amendment requires. In the end, Mr. ROTH. Let’s agree on the Bond for success and give the taxpayers con- there should be nothing partisan about amendment first; the agreement being fidence that reform can be achieved. helping taxpayers to comply with the 40 minutes divided between the two Mr. President, while not everyone tax laws in the least burdensome man- sides, and that Senator BOND would will agree with my proposal, let’s take ner possible. have the remaining 10 minutes. a moment to look at some arguments Mr. President, my amendment offers Mr. BOND. That is correct. Mr. Presi- I’ve heard so far. Some have com- a straight forward, common-sense solu- dent, 20 minutes for the side in opposi- mented that we won’t get the best peo- tion for the management of this trou- tion, and 10 minutes. ple to serve on the IRS board if they bled agency and it cures the inherent Mr. ROTH. And no second-degree have to leave their private-sector jobs weaknesses of the part-time advisory amendments. for a tour of government service. As an board called for in the bill. With a vast The PRESIDING OFFICER. Could I example that just the opposite is true, number of agencies across this city, in- ask the Senator to restate the unani- I point to our current IRS Commis- cluding the city itself, managed under mous consent request. sioner. In my assessment, Commis- full-time boards and commissions, we Mr. ROTH. Mr. President, what we sioner Rossotti has outstanding cre- have ample evidence that this struc- are proposing for unanimous consent is dentials and has been very successful ture can work for the IRS. In my opin- 40 minutes for consideration of the as a business owner in the private sec- ion, if we want more than window amendment to be divided between the

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4395 two sides, that it be agreed that the making it more independent. We de- What the IRS needs is guidance from distinguished Senator has 10 minutes cided that it needed more independ- people who come from the real world of remaining on his side of the 20 min- ence. Next, we had to decide how the work, people outside the beltway, peo- utes. independent operation should be gov- ple who are real Americans. It needs The PRESIDING OFFICER. Is there erned. To answer this, we came up with experts in business, management and objection? Without objection, it is so the Oversight Board. customer service. It needs people who ordered. So I thank Senator BOND for his ad- are willing to take the time in the Mr. ROTH. And I would also add vocacy for small business and his con- name of public service to help guide there would be no second-degree cern about this important legislation. the IRS, through this recovery period amendment. But at the same time I think I must it is now in. The IRS does not need peo- The PRESIDING OFFICER. Without rise in opposition to this amendment. ple who consider the full-time job of objection, it is so ordered. The Commission came up with this being on the IRS board a good career Mr. KERREY. Could we modify it so idea of having an oversight board for move. The fact is the people we want to we go to Senator REID’S amendment the IRS after months and months of serve on this board will not give up next and have rollcall votes not before discussion and consideration. It was a their full-time jobs to do it. 1:15? recommendation that we on the Com- This bill is not intended to create Mr. ROTH. Let’s wait on the rollcall mission put in our report because we more bureaucracy. We have too much votes. We can go ahead with the Reid thought it would keep the IRS on track bureaucracy already. This is generally amendment. and improving in the right direction. true throughout Government. But we The PRESIDING OFFICER. Without The Senator from Nebraska and I made found it is definitely the case in the this board one of the centerpieces of objection, it is so ordered. IRS. A full-time board would just be our legislation, S. 1096, which, of Mr. BOND. President, I ask for the one more layer in an organization with course, was the first comprehensive yeas and nays on this amendment. way too many layers of bureaucracy al- IRS reform legislation introduced in The PRESIDING OFFICER. Is there a ready. For these reasons, I ask my col- the Senate. sufficient second? There appears to be leagues to join me in opposing this a sufficient second. The National Commission on Re- structuring of the IRS—Senator amendment. If we want the IRS to be The yeas and nays were ordered. customer friendly, like a corporation Mr. BOND. Mr. President, I ask unan- KERREY and I, two members of the House of Representatives, and 13 other must be, we must give it a corporate- imous consent that there be a minute people served on this Commission. Ten like board. on each side for the proponents and op- of the members were nongovernmental, I thank the Chair. I yield back the ponents to state their case on the private sector people who knew about remainder of my time to be reserved. amendment since the vote is going to the problems that the private sector The PRESIDING OFFICER. Who be stacked later. was having with the IRS. We fully con- yields time? Mr. ROTH. That is fine. sidered adopting a full-time oversight Mr. ROTH. I yield 5 minutes to the The PRESIDING OFFICER. Without board at one time, but we came to the distinguished Senator from Nebraska. objection, it is so ordered. The PRESIDING OFFICER. The Sen- conclusion that it was not an advisable Mr. ROTH. I yield 10 minutes to the thing to do. We decided that this part- ator from Nebraska is recognized. distinguished Senator from Iowa. Mr. KERREY. Mr. President, let me time board would be more effective, The PRESIDING OFFICER. The Sen- first do as the Senator from Iowa did, and I will give you the reasons for that. ator from Iowa is recognized for 10 First of all, the purpose of the board Senator GRASSLEY, and compliment minutes. is to be advisory, not to manage the the intent of the distinguished Senator Mr. GRASSLEY. Mr. President, I, un- IRS. It is meant to function like a cor- from Missouri. I started out exactly fortunately, oppose the amendment by poration’s board of directors. It is not where the Senator from Missouri is, the Senator from Missouri. I say ‘‘un- intended to get involved in the day-to- considering that a full-time board fortunately’’ because the Senator from day operations of the IRS because the would be best. What I have concluded is Missouri has good motives in offering IRS already has a leader—the commis- that over time, examining what this his amendment. They come from the sioner. And by the way, this is the first board is going to be doing—and let no- fact that he has been an outspoken ad- nonlawyer and more specifically body doubt, by the way, this board has vocate for small business in the Sen- nontax lawyer who has been head of substantial powers. This is not an advi- ate. He has made a career of promoting the IRS. Mr. Rossotti, or somebody sory board. There are a number of an environment very good to small with his background from private sec- things that we specifically say they business, and obviously we all know tor management, brings to the man- cannot do, in order to avoid conflict of that sometimes the Internal Revenue agement of the IRS a person who is interest with procurement and with Service is one Government agency that consumer oriented, customer oriented. personnel and with confidentiality, but tends to be anti-small business. We had His own private sector corporation had this board oversees the IRS in its ad- a lot of information coming out of our to satisfy his consuming public for the ministration, its management, its con- hearings that IRS agents are told to go services that he sold or he would not duct, its direction, and its supervision after the small people—forget about have been in business. He would not of the execution and application of the the bigger, wealthier people—because have developed a successful business. IRS law. smaller people do not have the re- So to have a nontax attorney for the It has substantial powers in making sources to fight. first time running the IRS is very, very recommendations to the President as That is particularly true of small good because it brings somebody in to who the Commissioner ought to be business where you have accumulated there who knows that organization and has the power to recommend the some wealth in a small business but ought to serve the taxpayers and not be Commissioner ought to be terminated. you do not necessarily have a lot of in- a master of the taxpayers. He has al- I urge colleagues to look at section 1102 come. And so you do not have the re- ready led the organization in some im- of the proposed legislation. sources to fight the IRS. So I do not portant changes and I have great con- I share the conclusion Senator find fault with the motives behind fidence that he will continue to make GRASSLEY has just iterated in his oppo- what Senator BOND is trying to do. productive changes. He will do a better sition to this amendment; that is, that I definitely believe this bill we have job because of this legislation. a full-time board would actually re- before us, including the provisions for In addition, it seems to me that a strict our capacity to go out and get an advisory board, has been well full-time board would not attract the the people with the kind of talent that thought out. The National Commission people who we want to attract to this we need to be on this board in the first on the Restructuring of the IRS cre- board. A full-time board too often in place. There are an awful lot of Ameri- ated the concept of this Board. We as- this town attracts inside-the-beltway, cans who have expertise in manage- sessed the various pros and cons of sep- Washington career people. That is not ment, have expertise in computers, arating the IRS from the supervision of the type of person we want on the have expertise in the operation of a the Secretary of the Treasury and board. large organization. They especially

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4396 CONGRESSIONAL RECORD — SENATE May 6, 1998 have expertise in restructuring, which to get people to serve on the IRS board full-time, independent board in place is going to be a very, very important than it would be to serve on the FTC to run the agency is the best way to do piece of work that Mr. Rossotti will board or on the SEC? These are issues that. I say to those people who really have the authority to do, restructuring that I think are very closely related. If want reform, if you really believe a and changing the nature an organiza- we can’t get good people to serve on board is essential to restructuring the tion. that board, I would be very much sur- IRS, then I say let’s get out and run We need people with all those kinds prised. We would not see a part-time with the big dogs; let’s get a full time, of expertise. And if you require the in- advisory board dealing with actual independent board. Otherwise, get back dividual to serve full time, my conclu- cases of taxpayer abuse. They would up on the porch, because a part-time sion, strongly felt, is you will exclude have to do so only when the Commis- advisory board is not going to even large numbers of citizens who would sioner or the Treasury Inspector Gen- have a large bark; it will have a minor say: If it is part time, I’m prepared to eral said they could. meow. sit on this Board as a consequence of Let’s just take an example—the If we are going to put some teeth my desire to improve the way this IRS alarming revelation last week that into it, we need to have the teeth that is operated. My desire to improve it is former Secretary Howard Baker and a full-time, independent board gov- strong enough to serve part time, but I former Congressman James Quillen erning the IRS can give to managing can’t possibly do it full time. We are were the targets of a vendetta by a the agency, to make sure it does not going to reduce the list if we make it rogue IRS agent. Even more troubling, abuse taxpayers. full time, of citizens who could serve more troubling is that the agent’s ac- Mr. President, I reserve the remain- this in this way. tivities were covered up by numerous der of my time and yield the floor. In addition, I point out this board officials in the IRS district office. Mr. SHELBY. Mr. President, I rise in This case clearly demonstrates a pat- sunsets in 2002; thus, Congress would support of Senator BOND’s amendment tern of bad behavior in one office, but have the opportunity to revisit and to establish a full-time IRS Board of it may be indicative of structural or make a determination as to whether or Governors. I firmly believe that over- procedural defects throughout the not, as a result of the experience that sight of an agency with the equivalent agency. Are we really going to tie the we have had, this board needs to be full of 100,000 full-time employees, a re- hands of the IRS board and only permit time. quested fiscal year 1999 budget of al- it to review such problems as the Com- So I urge those who were concerned most $8.2 billion, and a history of wast- missioner or the Treasury IG permit about this board being part time, on ing $4 billion in an attempt to mod- it? I say not. If we are going to do the the one hand to consider we are going ernize the tax collection system, is, job, we ought to do it right. Without to restrict our ability to get the kind without question, a full time job. this authority, the board will only find of expertise that is needed on this Furthermore, rigorous oversight will out about the problems like the rest of board, and, second, we will have an op- be critical to ensuring that the reforms us—when the press points them out or that Congress has in store for the agen- portunity, after 5 years, to revisit this when we have to go through a congres- issue. If the experience of this board is sional hearing. cy will be carried out effectively and that they are recommending to us that The problems of the IRS are well expeditiously. I think the prudent full time would be better than part known. Now we need to make sure we strategy is to keep the agency on very time, we will have ample opportunity fix them, not just tinker around the short leash given the shocking stories to make that judgment. edges. The Bond amendment replaces that have come to light from the re- I urge my colleagues, with great re- the IRS management structure of a cent Finance Committee hearings. I spect to the Senator from Missouri and Commissioner plus a part-time limited have my own ideas as to how to lib- his intent, to vote against this amend- authority board with an independent erate the taxpayer from the IRS— ment. full-time board of governors, including namely the implementation of my flat- The PRESIDING OFFICER. Who the Commissioner. It is not an acci- tax proposal. But short of comprehen- yields time? dent, as I have said earlier, that the sive tax simplification, I strongly sup- Mr. BOND. Mr. President, I yield my- SEC, the FTC, the Federal Reserve, are port Senator BOND’s efforts. self such time as I may require. I thank all run by boards or commissions. Mr. President, the IRS is a very trou- my colleagues from both Iowa and Ne- These agencies carry out sensitive reg- bled agency that demands the highest braska for their very thoughtful com- ulatory and enforcement duties, and level of scrutiny. I strongly urge my ments. As I said earlier, I appreciate so they must be insulated from political colleagues to support this amendment. much the excellent work the Finance motives. Insulation from political mo- I feel we owe it to the American tax- Committee has done on restructuring tives is one of the objectives we must payer. of the IRS. Truly, it is a very impor- achieve in this IRS restructuring. The Mr. ROTH addressed the Chair. tant issue. American taxpayer deserves the same The PRESIDING OFFICER. The Sen- Primarily, I hear them raising the level of protection as the people who ator from Delaware. point that we can’t get people to serve are governed by and are subject to the Mr. ROTH. Mr. President, how much if we have a full-time board. We are rules and regulations of the SEC and time do I have? making it a small board. We need four the FTC and the FCC. The PRESIDING OFFICER. The Sen- individuals who want to serve. Who has not heard of the allegations ator from Delaware has 10 minutes. Some say you can have part-time that the IRS has targeted out-of-favor Mr. ROTH. Mr. President, I yield my- people who can come in and get the big groups or those who seem to have noth- self such time as I may use. picture authority. The problem is, we ing in common but their opposition to Mr. President, I, too, join my col- need them to work on specific law en- various White House policies? No leagues in paying my respects to the forcement activities and personnel ac- American should have the enforcement distinguished Senator from Missouri. tions. We are not talking about some- powers of the IRS unleashed on them He brings a wealth of background and body giving them the big picture; we because they don’t agree with the experience, so his comments are always are talking about somebody taking White House on an issue. I think that welcomed and listened to with great management responsibility. If individ- is simply why my amendment is so care. While I completely agree that the uals would serve, is their question. necessary. Under the current bill, the IRS oversight board must be ade- They say we can’t get good individuals only way the part-time board would quately structured, I respectfully urge to serve. have known about the abuses we my colleagues to oppose this amend- We have the Commissioner of the learned about last week is the same ment which would make the IRS over- IRS. He came from the private sector. way the rest of us did when we watched sight board a full-time board. He was willing to move in. Private-sec- Senator ROTH’s hearing on television. In my judgment, the board should be tor individuals have served, and have That is how limited the authority of a part-time board. The purpose of the served with great distinction, in re- the part-time board is. board is to provide ‘‘big picture’’ over- lated areas, where they do an excellent We need real reform of how the IRS sight over the IRS, provide specific ex- job. Why should we think it is harder does its business. I believe putting a pertise to IRS management to ensure

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4397 accountability at the IRS, as well as to Mr. ROTH. Yes, Mr. President, I am with the Internal Revenue Service. ensure that taxpayers are being treated pleased at this time to yield back the Also, that same day in the Chamber and served properly. remainder of our time. was CHARLES GRASSLEY of Iowa, a long- The purpose of the board is not to Mr. BOND. I yield back the remain- time proponent of changes within the micromanage the IRS. Commissioner der of time on our side. I thank the dis- Internal Revenue Service. Rossotti is a management expert, un- tinguished Senator from Delaware. I received a note from Senator Pryor like his predecessors who were experts The PRESIDING OFFICER. All time after I finished my remarks that a page in tax law. As I have said many times has been yielded back. delivered to me, indicating he wanted on the floor, I think we are very fortu- Mr. ROTH. Mr. President, I ask unan- to work with me on the legislation nate in having an individual of his imous consent that following the expi- that I talked about. That same day, I qualifications, his expertise, not only ration or yielding back of time on the received word from Senator GRASSLEY in management but high tech as well. I pending Bond amendment, it be tempo- he wanted to work with me. believe we should support the manager rarily set aside and a vote occur on, or This was bipartisan legislation. The and provide a board that will help him in relation to, the Bond amendment at bill that I wrote, the Taxpayer Bill of turn the troubled agency around. 1:15 p.m. today. Rights—because of these two Senators; It is my judgment a full-time board The PRESIDING OFFICER. Is there the Senator from Arkansas, the Sen- would destroy the delicate balance we objection? Without objection, it is so ator from Iowa; a Democrat and a Re- tried to include in this legislation. The ordered. publican—we were able to move this Commissioner, not the board, should Mr. ROTH. Mr. President, I suggest bill through the Senate. It passed in manage the IRS. the absence of a quorum. 1988 and became law. It was really a A full-time board would bog down in The PRESIDING OFFICER. The significant change. The Taxpayer Bill details, diffuse accountability, and I clerk will call the roll. of Rights changed the way the tax- fear very much probably not include The legislative clerk proceeded to payers dealt with the tax collectors. It the type of individuals, the experts, the call the roll. put the taxpayer on a more equal foot- background, and vision that are nec- Mr. REID. Mr. President, I ask unan- ing with the tax collector. It was the essary on the board. Also, I have to say imous consent that the order for the beginning of some major changes in the that I would doubt that Commissioner quorum call be rescinded. way we deal with the Internal Revenue Rossotti might remain with the IRS if The PRESIDING OFFICER. Without Service. the board were full time. objection, it is so ordered. The Taxpayer Bill of Rights No. 2, in The very basic question is what PRIVILEGE OF THE FLOOR 1996, was also a change. But we are here would be the point? While I agree with Mr. REID. I also ask unanimous con- now because of H.R. 2676, the IRS Re- my colleague’s objectives, I do not be- sent that a congressional fellow, Alan structuring and Reform Act of 1997. I lieve that a full-time board would en- Easterling, be allowed privileges of the say to the chairman of the full com- hance the prospect of turning this floor during this issue that is now be- mittee, the senior Senator from Dela- agency around. In fact, making the fore the Senate. ware, I appreciate his working hard on board full time could very well under- The PRESIDING OFFICER. Without this issue. I think the hearings have mine the purpose of this legislation. objection, it is so ordered. been informative to the American pub- As my distinguished colleague, the AMENDMENT NO. 2342 lic and indicate that we need to do Senator from Nebraska, has pointed (Purpose: To amend the Internal Revenue more. The Taxpayer Bill of Rights No. out, the board is sunsetted. There will Code of 1986 to eliminate payments for de- 1 and No. 2 were important, but we be an opportunity in the future to see tection of underpayments and fraud) need to go further. how this board is functioning, whether Mr. REID. Mr. President, I send an I was one of those initial sponsors of it is working in the manner that we amendment to the desk. this legislation in the Senate. Senator hope and believe it will. The PRESIDING OFFICER. The KERREY of Nebraska, Senator GRASS- I urge my colleagues, Mr. President, clerk will report. LEY of Iowa, and I held a press con- to vote against the full-time board. I The legislative clerk read as follows: ference where we talked about this leg- reserve the remainder of my time. The Senator from Nevada [Mr. REID] pro- islation. At that time we didn’t have a Mr. BOND addressed the Chair. poses an amendment numbered 2342. lot of support. But the support has The PRESIDING OFFICER. The Sen- Mr. REID. Mr. President, I ask unan- built, and now we have support from ator from Missouri. imous consent that reading of the the administration, and it is once Mr. BOND. Mr. President, I, again, amendment be dispensed with. again bipartisan legislation. commend my colleague from Delaware The PRESIDING OFFICER. Without I look forward to the opportunity to for his outstanding leadership. I will objection, it is so ordered. speak in favor of the speedy passage of only say that Commissioner Rossotti is The amendment is as follows: this much needed and long overdue re- going to leave sometime. I think it is At the end of subtitle H of title III, add the form. important for us to make a structure following: What I want to talk about today in which gives us the possibility of real SEC. . ELIMINATION OF PAYMENTS FOR DETEC- my amendment is one of the things reform in the IRS. An advisory board, TION OF UNDERPAYMENTS AND that leads to the bad press, the bad in my experience in dealing with advi- FRAUD. feelings that the American public has sory boards, cannot and will not make (a) IN GENERAL.—Subchapter B of chapter about the IRS. What I want to prohibit a difference in the day-to-day manage- 78 is amended by striking section 7623. the IRS from doing in the future is (b) CONFORMING AMENDMENT.—The table of ment, the selection of IRS audits and sections for subchapter B of chapter 78 is continuing with a program that I refer the running of the agency which is the amended by striking the item relating to to as the ‘‘Reward for Rats Program.’’ issue on the minds of American tax- section 7623. This is a program where the IRS, in ef- payers. We need to do the job right, (c) EFFECTIVE DATE.—The amendments fect, has a contingent fee, much like a and I believe we need to make the made by this section shall take effect on the lawyer gets in a personal injury case. change now. date of enactment of this Act. They say, ‘‘If you have somebody who Mr. President, if the distinguished Mr. REID. Mr. President, as Members will snitch on a neighbor, an ex-wife, or manager of the bill has no further peo- of this body know, I have worked long business partner, and this will lead to ple wishing to speak—the ones who and hard with other Members of this our collecting money, then we will give wanted to speak in support of the body to change how the IRS functions. you part of that money.’’ amendment are otherwise occupied—I The first speech I gave on the Senate I believe anyone who owes money to am prepared to yield back the remain- floor after being elected in 1986, was on the Internal Revenue Service should der of my time. We have 1 minute on the Taxpayer Bill of Rights. As I pre- pay it. But I think it should be col- each side prior to the vote. If the man- sented my remarks that day, presiding lected in a way that is in keeping with ager is finished with his speakers, I was Senator David Pryor of Arkansas. the American system, not go into peo- will join him in yielding back whatever At the time, he was chairman of the ple’s personal lives, where you have a time remains. Subcommittee on Finance that dealt wife—former wife or former husband

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4398 CONGRESSIONAL RECORD — SENATE May 6, 1998 who just completed a long divorce, and the wronged partner, the odds of seeing [From the Los Angeles Times, Apr. 15, 1998] the IRS contacts one of them and says, that payday may appear better than IRS ‘‘REWARDS-FOR-SNITCHES’’ PROGRAM ‘‘Hey, if you can give us a little infor- anything the State can offer. This pro- COMES UNDER FIRE mation on your ex-spouse, then we will gram is unethical, it is contrary to tax- (By Ralph Vartabedian) give you part of the money we collect.’’ payer privacy, and inconsistent with WASHINGTON.—Americans voluntarily hand I think this is wrong, and I think we the spirit of the Taxpayer Bill of over most of the $1.3 trillion owed to the In- should stop it. There is nothing specifi- Rights. ternal Revenue Service each year, but a tiny fraction of tax collections depends on an ob- cally in the statute which allows this. Let’s assume that someone comes to The problem is, there is nothing that scure and increasingly controversial IRS an accountant with a tax problem— program of using paid informants. disallows it. That is what this amend- under the present law, there is no con- Motivated by a combination of greed and ment would do. It is a practice which, fidentiality; we are trying to change revenge, informants are typically business if it isn’t corrected, will be permitted that, of course—comes to an account- associates, employees, acquaintances, neigh- under this legislation now before the ant with a tax problem, thinking, of bors or ex-spouses of tax cheats. Many ex- body. course, you have to get this thing perts say the program is one of the most un- Last week, the Senate Finance Com- worked out with your accountant; and seemly parts of the U.S. tax system. However, IRS officials say they exercise mittee, under the leadership of the sen- the accountant walks out after the ior Senator from Delaware, conducted great care in handling the informants, weed- meeting and calls the IRS and says, ‘‘I ing spurious allegations, and that the re- hearings in the cases of abusive prac- have somebody you can get a real good wards play an important role in the nation’s tices by employees of the IRS. Wit- chunk of money from, but of course I tax enforcement system. nesses before that committee provided get 15 percent of it.’’ The IRS pays the informants up to 15% of testimony which describes an organiza- I think that is wrong. It is contrary the taxes it recovers from their tips—up to a tion prepared, I am sorry to say, to use maximum of $2 million—though the vast ma- to taxpayer privacy and inconsistent virtually any means to collect this Na- jority of informants end up empty-handed. with the spirit of the Taxpayer Bill of tion’s taxes. After a series of recent congressional dis- Again, I think the taxes should be Rights which was passed previously. closures about widespread taxpayer abuses, collected but it should be in a fair way. The IRS would have you believe that watchdog groups are growing concerned these programs—this snitch program is about the ethics of the agency’s informant An organization apparently prepared to reward program. take advantage of individual greed or warranted because of the millions of ‘‘We should refocus our efforts on good desire for revenge to identify, rightly dollars it is able to collect through the citizenry, not bribing people to answer ques- or wrongly, citizens who have failed to snitches. This simply demonstrates tions,’’ said John Berthoud, president of the pay their taxes is something we need to that the IRS is relying upon others to nonpartisan National Taxpayers Union, who do away with. do its work. It shouldn’t be up to called on the IRS to end the program in an Last week, we learned of a restaurant friends, families, coworkers, and neigh- interview with The Times. owner whose life was ruined on the bors to ensure taxes are being paid; it The program has been sharply criticized by is up to the IRS. We should not be pay- individuals who say they were victimized by basis of no more than a tip from a bogus allegations, and even by informants, vengeful informant. As recently re- ing private citizens to perform the job such as Mary Case of Sherman Oaks, who say ported in the press, we learned of a tax the IRS employees are expected to the IRS has stiffed them on their rewards. accountant who snitched on a client, carry out. The Senate Finance Committee, which has motivated only by the expectation of I think this program should come to been broadly investigating IRS abuses over payment for betraying a confidential an end. To that purpose, I propose this the last year, is expected to unveil new evi- relationship. In both cases that I have amendment, which will eliminate the dence later this month that taxpayers have been devastated by aggressive IRS investiga- just provided, the information was payments for detection of under- tions based on phony information from false. payment and fraud. The amendment to snitches. Such informants, most of the time, eliminate the reward of greed and ONE TAX ACCOUNTANT SNITCHED ON HIS CLIENT are not acting in some sense of civic invasive action against honest tax- duty. They don’t act from a selfless in- Tax attorneys and accountants generally payers should pass. decry the informant reward system, assert- terest in the Nation’s well-being. They I propose that in the process of re- ing that the government is on thin ice in of- act against friends, relatives, employ- forming and restructuring the Internal fering money to taxpayers to turn each other ers, and associates because the IRS Revenue Service, we join together to in. They argue that a cornerstone of the U.S. pays them to do so. eliminate the ‘‘Reward for Rats Pro- tax system is the protection of taxpayer pri- Under section 7623 of the Internal gram.’’ It is time that this snitch pro- vacy and that the IRS is wrong to encourage Revenue Code of 1986, they are author- people to breach confidential business or gram be eliminated and that we restore family relationships. In one case, a St. Louis ized to pay sums, as required, to in- greater civic order to the manner in formants in order to bring to trial vio- tax accountant informed on his own client. which the IRS conducts itself. ‘‘It smacks of communism, turn in your lators of Internal Revenue laws. In The amendment is considered impor- parents if you catch them cheating,’’ said plain English, the IRS pays snitches to tant because it reforms the IRS, it fun- San Francisco tax attorney Frederick Daily, act against associates, employers, rel- damentally overhauls the manner in author of the book ‘‘Stand up to the IRS.’’ atives, and others—whether motivated Bruce Hockman, a top Los Angeles tax at- which they conduct business, and it by greed or revenge—in order to collect torney whose clientele includes the rich and serves the customers and also allows a taxes. I find this activity unseemly, famous, refuses to help clients snitch to the more orderly way of collecting money. distasteful, and just wrong. IRS. ‘‘I have had people come in and ask me Under the current IRS program, This amendment addresses an uneth- to take them downtown to IRS district head- quarters,’’ Hockman said. ‘‘I say no way. The these informants are paid up to 15 per- ical and destructive program employed by the IRS in the collection of reve- Nazis did it, turn people in. It is unseemly.’’ cent of the money recovered as a result Of course, Congress authorized the IRS to of their tips, but no less than $100. In a nues. In that the amendment elimi- nates the program, it must be consid- create the informant reward program in the recent change to the so-called Snitch first place. Former IRS historian Shelley Program, the Service increased the ered consistent with the spirit of this Davis says her research indicates that in- maximum allowable reward to $2 mil- bill. formant rewards date back to the Civil War lion—a powerful incentive to anyone I ask unanimous consent to have ear. interested in becoming rich at the ex- printed in the RECORD a story from the Tipsters are one of the important parts of the IRS toolbox for enforcing tax compli- pense of a neighbor, former business as- Los Angeles Times dated April 15, 1998, entitled ‘‘Rewards-for-Snitches Pro- ance, says Thomas J. Smith, assistant IRS sociates or business associate, former commissioner for examination and chief of wife, former husband. gram Comes Under Fire,’’ which illus- the agency’s informant reward program. trates what the problem is we are try- As if the desire for revenge alone 93% OF SNITCHES’ TIPS END UP IN TRASH CAN ing to correct. hasn’t been responsible enough for ru- IRS figures for 1996, the last year for which ined lives, the Service has a $2 million There being no objection, the article data are available, show that 9,430 Ameri- jackpot to sweeten the payoff. For the was ordered to be printed in the cans sought rewards. Of those, the IRS acted nosy neighbor, the alienated spouse, or RECORD, as follows: on just 650—meaning that 93% of the tips

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4399 ended up in the IRS garbage can. The IRS made any changes to his tax returns, about the larger nationwide fraud ring. The paid out about $3.5 million in rewards and re- Colaprette said. He has a $20-million suit manuscript, a copy of which was provided to covered $103 million in taxes. against the IRS. The Times, includes a variety of internal ‘‘If you look at the last three years, we ‘‘Why do we have an agency that nobody IRS documents, in which criminal division have had 2,000 cases closed, resulting in taxes controls?’’ Colaprette asked. agents downplayed his role in the case. of $797 million,’’ Smith said. ‘‘So, in terms of It isn’t unusual for the IRS to deal with in- ‘‘He felt the $11,000 didn’t even cover his dollars, most people would judge that as rea- formants who violate confidential relation- expenses,’’ said Mathew D. Pinnavaia, his sonably significant. It does supply a very ships. Like Colaprette’s bookkeeper, when son. ‘‘They tried to deny he played any role.’’ useful source of information for us.’’ St. Louis tax accountant James Checksfield The PRESIDING OFFICER. The Sen- The IRS has a national informant hotline informed on his own client in 1989, he was ator from Nebraska. (1–800–829–0433), though many informants discredited. The government dropped its tax Mr. KERREY. First of all, let me say walk in or call in to the IRS’ 33 district of- evasion case against the client and the ac- to the Senator from Nevada, long be- fices or 10 regional service centers, Smith countant lost his license. fore I got on this issue of taxpayer said. Smith, the IRS chief of exams, said he rights, the Senator was there, working With little fanfare and with no expla- could not discuss any specific cases because nation, the IRS last year decided to substan- of privacy laws. But he said the IRS care- on Taxpayer Bill of Rights 1 and Tax- tially boost the maximum allowable award fully screens allegations and is mindful of payer Bill of Rights 2. This legislation to $2 million from $100,000. It also set a min- the potential for bogus information. in title III is a continuation of your imum reward of $100, eliminating a lot of ‘‘It is a concern that we take very seri- work. And I appreciate very much your penny ante payments. ously,’’ Smith said. ‘‘We absolutely try to be early support of this bill that enabled In 1996, the agency’s largest award was a very careful about looking at returns with us to fashion this legislation in a bipar- jackpot-size $1.06 million. (The agency does the greatest probability of error.’’ Smith not disclose who gets the awards or what tisan way, which I think allows us to added that 89% of the returns examined as a make certain that we can extend the cases they involve.) The agency’s smallest result of a tip end up with changes. was just $18—less than the typical reward ad- While it isn’t surprising that the targets of rights and power and authority to the vertised in newspapers for lost dogs. allegations feel abused, informants also are taxpayer and stop abuses that we see Under the new guidelines, rewards range often frustrated over how the agency treats within the IRS’s capacity to collect from 1% to 15% of the tax recovered, depend- their claims. money that this Congress authorizes is ing on the assistance provided by the in- IF CASE ISN’T CLOSED, NO REWARD IS PAID to be collected. former. But all awards are at the ‘‘discre- I appreciate, specifically, the prob- tion’’ of IRS officials, who make their deci- Case, the Sherman Oaks woman, tipped the sions behind closed doors. Of course, the re- IRS in 1985 to Stanley D. Hexom, a San Jose lem you are identifying with your wards are taxable income. real estate broker later accused of swindling amendment. It is a problem that, The IRS takes a low-key approach, not millions of dollars from elderly California in- thanks to Chairman ROTH, we heard be- seeking to send the message that the federal vestors in fraudulent real estate deals. She fore our committee. We saw the prob- government is actively recruiting paid stool has never received a reward from the IRS, lems that can occur when you offer pigeons. The agency does not make Form but neither has the agency closed her case. somebody, essentially, a reward to in- As Hexom’s bookkeeper, Case provided IRS 211, which informants must fill out to claim form; you can get abuse from that. As a reward, widely available. It isn’t even kept agents boxes of evidence, including copies of in the IRS national headquarters lobby, doctored tax returns and locations of bank the Senator knows, as I have heard him where the agency has almost every form on accounts, as well as testifying to a federal talk about this as well, the dilemma is, display. grand jury. how far do you go? We have this mech- Asked if the IRS encourages Americans to Under IRS guidelines, an informant who anism being used throughout law en- inform on others, Smith said he could offer provides such specific information is sup- forcement and there are many times no advice and suggested that individuals do posed to get 15% of the back taxes. But a big when it works and when it is not abuse. what they feel is right. But former IRS offi- caveat is that the IRS has to actually collect I am wondering if the Senator would cials are more blunt. the back taxes. So, if the agency comes up allow to us modify his amendment so it empty-handed, so does the informant. GARBAGE INFORMATION COMES STREAMING IN can require the commissioner to do a ‘‘Informants rewards are pretty distasteful There is no doubt that the IRS went after Hexom, who was convicted on two counts of thorough analysis of this problem. to everybody except the person who gets Commissioner Rossotti has had this one,’’ said Phillip Brand, a tax expert at bank fraud and one count of preparing a false KPMG Peat Marwich LLP and former IRS tax return. IRS agents tried to collect from brought to his attention. It would re- chief of compliance. ‘‘People have a different Hexom’s wife, though she may have escaped quire him to do a thorough analysis of feeling about informing when they do it as assessment by claiming she was an innocent this problem and then come back to us good citizens.’’ spouse, said Richard Blos, Hexom’s attorney and say, how can we change the law so Another problem with paying for informa- in San Jose. as to make certain that you are able to tion is that the IRS gets a lot of garbage in- Hexom was released from prison in 1993 and is currently living in the Phoenix area. He use this system when appropriate, but formation. Brand recalled a tipster once we can get rid of some of the abuses sought a reward for the disclosure that a sec- could not be reached for comment. retary of State was dealing drugs to Queen Smith acknowledged that the agency is that are quite obviously not the intent Elizabeth II and not reporting the sales on often criticized for taking too long time to of this Congress. his taxes. pay rewards, but he added that 13 years is an Mr. REID. Mr. President, I say to my But week allegations are less humorous abnormally long time for an informant to be friend from Nebraska that I appreciate when the IRS pursues them against innocent kept waiting. the kind comments about my work on taxpayers. That apparently happened to Other informants say the agency’s crimi- the Internal Revenue Service tax issues John Colaprette of Virginia Beach, Va., nal investigation division takes all the cred- it for big money cases and undermines the generally in the past. I also want to whose home and two restaurants were raided say that but for the Senator from Ne- in 1994 by armed IRS agents after his book- role played by informants. keeper, Deborah A. Shofner, made phony al- Joseph Pinnavaia, an Oceanside gemstone braska, we would not be on the floor legations. expert, helped the IRS crack a tax fraud ring today. The people of Nebraska should The bookkeeper was later arrested and in the early 1980’s, in which worthless stones understand, as I am sure they do, the charged with stealing from a Colaprette res- were being donated to museums for big tax tenaciousness of the senior Senator taurant, the Jewish Mother. She was sen- write-offs. from Nebraska. The work that he has tenced to 6 years and 11 months in Virginia. Pinnavaia died last November, but not be- done on this issue—when the history fore completing a manuscript, entitled, ‘‘The ‘‘This case was investigated for just one books are written about tax reform in and a half days before they obtained a search Most Corrupt Agency in the Federal Govern- warrant, which was then executed 12 hours ment: The Internal Revenue Service,’’ which this country, one of the chapters has to later,’’ said Colaprette, who is expected to detailed how the agency mishandled his case. be dedicated to him. I personally ap- testify this month before the Senate Finance With Pinnavaia’s help, the IRS went after preciate, on behalf of my constituents Committee’s hearings on IRS abuses. a doctor in Florida who had donated an al- from the State of Nevada, the work Although the committee is saying little legedly worthless blue topaz gem to the that you have done on this issue. I also about its planned hearings, it is expected to Smithsonian Institution. By 1979, the IRS think the work done on the underlying focus on the IRS’ criminal investigation di- was receiving 10,000 tax returns a year with legislation, giving the commissioner of vision, which handles most of the paid in- deductions for gemstones, it was later dis- formants and conducts a wide range of un- covered. the Internal Revenue Service the power dercover operations. Though Pinnavaia was awarded $11,000 for to do some things for a change will Since the raid on the Jewish Mother, the his help in the case, he asserted that the IRS allow the commissioner to take a good IRS has never assessed any back taxes or cheated him by claiming it already knew look at this program and make some

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4400 CONGRESSIONAL RECORD — SENATE May 6, 1998 suggestions, which in the past fell on Mr. REID. If the Senator from Dela- This comes from a constituent in deaf ears because he had no power and ware will yield. I say to the manager of Moses Lake, Washington. She says: authority to do anything. So I think the bill, I think also that we focused We are people who obey the law. If there we have a good commissioner. I am attention, through the hearings that were things on our tax return which were in willing to have my amendment modi- you have held, newspaper articles writ- error or were questionable, we have no prob- fied. I think it is a step in the right di- ten, and through this amendment, on lem with being called to account for it. Nor rection. There may be some things that this practice that I am sure the com- do we take issue with paying more taxes if I don’t understand having only got- missioner will have enough informa- we legitimately owed more. However, the way we were treated by a representative of ten—— tion to come back to us as to whether the IRS should never be allowed in any coun- Mr. ROTH. Mr. President, if the Sen- or not this practice should be contin- try, let alone ours, which is supposed to be ator yield. I find it very difficult to ued, modified in some way or, as I said, based on presumption of innocence. hear what the distinguished Senator is eliminated. So I would be happy to Another letter comes from a con- saying. modify this amendment so that the stituent in Seattle: Mr. REID. Mr. President, I am happy commissioner could report back to us to talk a little louder. I say to my within a reasonable period of time. In 1993, my husband and I bought a fran- friend from Delaware that this has al- Mr. ROTH. Mr. President, I think I chise and opened our business as sole propri- ways been one of my habits. I can re- etors. (If we had incorporated, our suffering will make a point of order that a would be over now). My husband, Craig, had member when I first started trying quorum is not present and try to reach plenty of knowledge and experience in car- case, there was a judge named Mar- agreement on the specific language. pentry and built a strong, thriving closet re- shall—and Las Vegas only had 3 or 4 I suggest the absence of a quorum. modeling business. He did not, however, have judges at the time—and he was hard of The PRESIDING OFFICER. The business tax and accounting training, and he hearing. I would get up and talk to the clerk will call the roll. made mistakes in the paying of taxes and jury and he could not hear what I was The legislative clerk proceeded to filling our paperwork to the IRS. As soon as saying, so he would get upset at me. He call the roll. he recognized his mistake, he alerted the thought I was saying things I didn’t Mrs. MURRAY. Mr. President, I ask IRS and began to try to make amends. It seemed he had awakened a vicious sleep- want him to hear. That wasn’t the case unanimous consent that the order for ing dog. then and it’s not the case now. I will the quorum call be rescinded. try to be more direct to the Senator The PRESIDING OFFICER. Without He goes on to say: from Delaware. objection, it is so ordered. Along with everything else, the IRS ran- What I was saying is that I think this Mrs. MURRAY. Mr. President, I rise domly cleaned out our bank accounts, as underlying legislation gives the com- today in strong support of H.R. 2676, well as those of our children. missioner of the IRS power he didn’t the Internal Revenue Service Restruc- It seems the IRS has an incentive program turing and Reform Act. We have waited for their employees which persuades them to have before, which is good. One of the take quick, harsh action, trying to ‘‘get problems we have had in the past is too long for the opportunity to debate what they can’’ and ask questions of the that the commissioner of the IRS has this issue and move this legislation. ‘‘customer’’ later. had no power to make changes in the Senate action is coming six months Finally, from a constituent in way the Service operates. This legisla- after the House overwhelmingly passed Kirkland, WA: tion certainly gives him power to do this legislation and almost a year after that. the Kerrey/Portman Commission issued For the past seven years both my husband So, as I said to my friend from Ne- and I have lived our lives under the tor- their recommendations for improving menting cloud of the IRS. braska, and I say again, I am willing and reforming the IRS. We had a lien put on our home and the let- for my amendment to be modified to It is no wonder the American tax- ters began to come of companies wanting to have the commissioner report back to payer is frustrated and angry. What help us with our troubles with the IRS. This us within a reasonable time as to kind of penalty or interest would the was so devastating as we were just starting whether or not this program should be IRS levy against a taxpayer who was what we thought would be a beautiful life to- terminated in its entirety, or whether six months late in filing their taxes? gether. One day I came home to 12 different it should be modified. There may be in- Mr. President, the IRS is an agency notices from the IRS I needed to sign for at stances when there may be a need for out of control. I hear this from people the Post Office. That is a great way to spend taxpayers’ money, don’t you think? some type of a contingent fee. I am not all across my state. They want the IRS aware of any, but there may be. I have reformed. And they want it done now. These heavy-handed tactics by the enough confidence in the underlying What has this six month delay meant IRS are not acceptable. legislation, which will be in effect in a to taxpayers? Since November 5, 1997 But this is not the first time I have few weeks, we hope, and in the commis- the date the House voted on H.R. 2676, heard from constituents about prob- sioner of the IRS that I am willing to more than 17 million taxpayers have lems with the IRS. I knew reform was allow my amendment to be modified. received a collection notice from the long overdue. It was not until the re- Mr. ROTH. Mr. President, I say to IRS; more than 34 million Americans lease of the Kerrey/Portman Commis- the distinguished Senator from Nevada have contacted the IRS to request as- sion report that I realized that it was that that is a very positive step, a very sistance or information—of these calls, not just a few bureaucrats abusing sound way of addressing the problem. more than 16 million did not go their position, but rather an agency It has been the practice in Govern- through and close to 2 million Ameri- out of control. An agency with man- ment, as he well knows, that contin- cans did not get correct answers. agement practices that encouraged gent fees are sometimes made avail- This is unacceptable. Had we acted abuse of taxpayers; managers who re- able, not only in the IRS, but I believe back in November, the impact on these warded the most aggressive and un- in other areas of activity as well. As we families would have been dramatically bending employees; and an agency that all witnessed last week, this practice different. We did not need more hear- viewed taxpayers as the enemy. was used in an extremely abusive man- ings, we needed action. Why is it so critical to enact IRS re- ner—a manner that should be dealt Since November 1997 I have heard form? We can all name many reasons with. So I can understand the Senator’s from close to 1,200 taxpayers from my why reform is necessary and impor- concern and interest in this matter. state who have written in support of tant, but I think we all have to remem- I appreciate it and would find it ac- systemwide reforms at the IRS. They ber that taxpayers are only trying to ceptable, as far as I am concerned, if he have told me of their experiences and meet their responsibilities in a demo- would modify this to make a study, frustrations—and I have to say, some cratic society. They are not turning to and within a limited time come back. I are quite disturbing. the IRS to apply for benefits or for as- think we do have a new commissioner Mr. President, I want to read some sistance. They are attempting to honor that is very effective and is bringing excerpts from a few of these letters— their financial obligation and commit- about change. This would help give him which have come from every corner of ment to a democratic and progressive direction, and we think this is a matter my state. They really highlight the society. They are not asking for any- of critical importance. abuses taking place by the IRS. thing in return but to be treated fairly.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4401 Unfortunately, this is not the experi- Mr. KERREY. Mr. President, I ask same period of time that the IRS now ence of most taxpayers. This frustra- unanimous consent that reading of the keeps these documents on CD-ROM for tion with the IRS jeopardizes compli- amendment be dispensed with. Congressional offices. With these com- ance with the tax code and undermines The PRESIDING OFFICER. Without mon sense requirements, the IRS will the faith taxpayers have in our system. objection, it is so ordered. be able to enhance its web page with Currently, honest taxpayers and The amendment is as follows: comprehensive tax guidance in a mat- businesses pay an average of $1,600 per On page 262, after line 14, add the following ter of days at little cost to taxpayers person for those who do not meet their new paragraph: under our bipartisan bill. In fact, the financial obligations. An estimated ‘‘In the case of taxable periods beginning Congressional Budget Office has scored after December 31, 1998, the Secretary of the $120 billion a year goes uncollected. We Treasury or the Secretary’s delegate shall our legislation as adding no new direct do not need to add to this by encour- establish procedures for all Tax Forms, In- spending. aging more taxpayers to give up. structions, and Publications created in the Thomas Jefferson observed that, ‘‘In- The great thing about this legisla- most recent 5-year period to be made avail- formation is the currency of democ- tion is that it keeps the taxpayer’s in- able electronically on the Internet in a racy.’’ Let’s harness the power of the terest in mind. It simply levels the searchable database not later than the date information age to make the IRS a playing field between the taxpayer, such records are available to the public in truly democratic institution, open to both large and small, and the IRS. printed form. In addition, in the case of tax- all our citizens all the time. We strong- able periods beginning after December 31, What’s more effective than forcing the 1998, the Secretary of the Treasury or the ly believe that the IRS must prepare IRS to work in a more fair and even- Secretary’s delegate shall, to the extent itself for the next millennium now. handed manner? practicable, established procedures for other I thank Senator ASHCROFT for his I am particularly pleased this legisla- taxpayer guidance to be made available elec- support and urge my colleagues to sup- tion provides relief for ‘‘innocent tronically on the Internet in a searchable port our amendment. spouses’’ who find themselves liable for database not later than the date such guid- The PRESIDING OFFICER. Without taxes, interest, or penalties because of ance is available to the public in printed objection, the amendment is agreed to. actions by their spouse. This has be- form.’’ The amendment (No. 2343) was agreed come a severe problem for many Mr. LEAHY. Mr. President, I com- to. women and children. Following a di- mend Chairman ROTH and Senator Mr. KERREY. I suggest the absence vorce many women are left to fight the MOYNIHAN for their outstanding work of a quorum. IRS to save their homes and their chil- on legislation to reform the Internal The PRESIDING OFFICER. The dren’s future. Spouses who engaged in Revenue Service (IRS). It is time for clerk will call the roll. illegal activities or misrepresented the IRS to deliver better service to the The bill clerk proceeded to call the their income to the IRS simply flee and American people. Our nation’s tax- roll. leave. The IRS then attempts to collect payers deserve no less. Mr. REID. Mr. President, I ask unan- from the innocent spouse—who is often Today, Senator ASHCROFT and I are imous consent that the order for the easier to locate—as she has custody of offering an amendment to H.R. 2676 quorum call be rescinded. the children. It is a little difficult to based on the Taxpayers Internet As- The PRESIDING OFFICER. Without hide when you have children. sistance Act of 1998, S. 1901. Our bipar- objection, it is so ordered. The IRS then aggressively pursues tisan legislation requires the IRS to AMENDMENT NO. 2342, AS MODIFIED these innocent spouses for a debt that provide taxpayers with speedy access Mr. REID. Is the Reid amendment they never knew about. If only we to tax forms, publications and other still the pending business? could be as aggressive in tracking down published guidance via the Internet. The PRESIDING OFFICER. The Reid the billions of dollars in uncollected Mr. President, I want to praise the amendment is the pending business. child support. Senate Finance Committee, Chairman Mr. REID. I send a modification to I urge the Senate to do the right ROTH, Senator MOYNIHAN, Senator the desk. thing today and pass this legislation. KERREY and Senator GRASSLEY for The PRESIDING OFFICER. The No more delays and no more excuses. their leadership in moving the IRS re- amendment will be modified. The American taxpayer deserves bet- form legislation to the full Senate. I The amendment (No. 2342), as modi- ter. strongly support the bill approved by fied, is as follows: Thank you, Mr. President. I yield the the Finance Committee. At the end of subtitle H of title III, add the floor. As the Senate prepares to debate IRS following: Mr. President, I suggest the absence reforms, we must use technology to SEC. . STUDY OF PAYMENTS MADE FOR DETEC- of a quorum. make the IRS more effective for all TION OF UNDERPAYMENT AND The PRESIDING OFFICER (Mr. taxpayers. What better way to do that FRAUD. Not later than 1 year after the date of en- GREGG). The clerk will call the roll. then to require the IRS to maintain online access to the latest tax informa- actment of this Act, the Secretary of the The bill clerk proceeded to call the Treasury shall conduct a study and report to roll. tion. Every citizen in the United Congress on the use of section 7623 of the In- Mr. KERREY. Mr. President, I ask States, no matter if he or she lives in ternal Revenue Code of 1986 including— unanimous consent that the order for a small town or big city, should be able (1) an analysis of the present use of such the quorum call be rescinded. to receive electronically the latest section and the results of such use, and The PRESIDING OFFICER. Without published tax guidance or download the (2) any legislative or administrative rec- objection, it is so ordered. most up-to-date tax form. ommendations regarding the provisions of such section and its application. AMENDMENT NO. 2343 The IRS web page at >http:// (Purpose: To provide electronic access to In- irs.ustreas.gov< provides timely serv- Mr. KERREY. Mr. President, this ternal Revenue Service information on the ice to taxpayers by increasing elec- amendment addresses a very important Internet) tronic access to some tax forms and problem that we saw in the oversight Mr. KERREY. Mr. President, I send publications. I commend the IRS for its hearings that the chairman conducted, an amendment to the desk, an amend- use of Internet technology to improve and that is sometimes the payment ment offered by Senator LEAHY and its services. More information and made to induce an individual to pro- Senator ASHCROFT. It has been cleared services should be offered online and vide evidence against a taxpayer who is on both sides. I ask that this amend- not just as a passing fad. Our legisla- violating the law becomes an incentive ment be agreed to. tion is needed to build on this elec- to provide evidence that is faulty and The PRESIDING OFFICER. The tronic start and lock into the law for the taxpayers end up being abused as a clerk will report the amendment. today and tomorrow comprehensive on- consequence. Normally, a request for a The bill clerk read as follows: line taxpayer services. study would not necessarily go very The Senator from Nebraska [Mr. KERREY], For Tax Forms, Instructions and far. In this case, Commissioner for Mr. LEAHY, for himself and Mr. Publications, our legislation provides Rossotti has already launched an in- ASHCROFT, proposes an amendment num- for online posting of documents created vestigation by the Criminal Investiga- bered 2343. during the most recent five years, the tion Division, using Mr. Webster,

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4402 CONGRESSIONAL RECORD — SENATE May 6, 1998 former FBI Director, as the lead who of people the Commissioner needs to We held a number of meetings. In one has indicated he wants to get to the serve on this board. of the meetings, we had a presentation bottom of this problem as well. So I be- The PRESIDING OFFICER. The that was really disturbing—two presen- lieve this modification is a good modi- question is on agreeing to the Bond tations, in fact. The first was a fellow fication. I am prepared to accept it on amendment. The yeas and nays have who practiced tax law and tax prepara- this side. been ordered. The clerk will call the tion for over 27 years who brought in a Mr. ROTH. Mr. President, we have re- roll. memo, an actual memo that he had viewed the proposed change in this The bill clerk called the roll. taken off the desk of an agent. And the amendment. As I understand it, it re- Mr. FORD. I announce that the Sen- memo stated very bluntly that the IRS quires a study to be made on informant ator from Hawaii (Mr. AKAKA) is absent agents in that arena, in that area, were payment, that the study must be com- due to a death in the family. to collect a specific amount of dollars. pleted within a year. As I said earlier, The PRESIDING OFFICER. Are there Not only were they to collect a specific we found there are some serious prob- any other Senators in the Chamber amount of dollars, but they were to lems in this area, and the modified who desire to vote? collect a specific amount of dollars The result was announced—yeas 25, amendment is satisfactory to this side. every month. In fact, it went further. nays 74, as follows: The PRESIDING OFFICER. Without It said how much they were supposed objection, the amendment is agreed to. {Rollcall Vote No. 121 Leg.} to collect every day, almost down to The amendment (No. 2342), as modi- YEAS—25 every hour—how much money the fied, was agreed to. Abraham Faircloth McConnell agents in that area were supposed to Ashcroft Frist Nickles collect. It was not collection on the AMENDMENT NO. 2341 Bond Gramm Shelby basis of people who legitimately owed The PRESIDING OFFICER. The Burns Hollings Smith (NH) question recurs on the BOND amend- Campbell Hutchinson Stevens taxes; it was collection on the basis of ment with 2 minutes equally divided. Coverdell Inhofe Thomas a quota system. It was outrageous that Craig Kempthorne Thurmond such a memo should exist or such di- Mr. BOND addressed the Chair. D’Amato Kyl The PRESIDING OFFICER. The Sen- DeWine McCain rection should occur with this agency. The second instance, which was even ator from Missouri. NAYS—74 Mr. BOND. Mr. President, we all more disturbing because it led to a Allard Ford Lugar death, involved a fairly well known know the problems of the IRS. They Baucus Glenn Mack are well known. This is a troubled Bennett Gorton Mikulski case now in New Hampshire of Mrs. agency. It needs to be turned around. Biden Graham Moseley-Braun Barron and Mr. Barron. Mrs. Barron’s This is a good bill, but I think we need Bingaman Grams Moynihan husband was essentially driven to sui- Boxer Grassley Murkowski to do one thing to make it better. Breaux Gregg cide as a result of the abusive and to- Murray tally inappropriate tactics that the When has a part-time board ever Brownback Hagel Reed turned around a troubled agency? A Bryan Harkin Reid Service, and a specific member of the Bumpers Hatch Robb Service, used in pursuing Mr. Barron part-time board will not do the job. We Byrd Helms Roberts Chafee Hutchison for collection of taxes that were owed. need a full-time board if they want to Rockefeller Cleland Inouye It was so terrible and so outrageous change the culture of the agency. A Roth Coats Jeffords that it did lead to Mr. Barron’s death full-time board such as the FTC, the Santorum Cochran Johnson and has disrupted and destroyed really SEC, even the Federal Reserve, can Sarbanes Collins Kennedy Mrs. Barron and her family. As of draw the people from all walks of life Conrad Kerrey Sessions Smith (OR) today—in fact, I believe it will be an- across the country to make sure the Daschle Kerry Dodd Kohl Snowe nounced today—Mrs. Barron has now culture of the IRS is changed. Specter Domenici Landrieu finally received, after 5 or 6 years, If you want to do something about Dorgan Lautenberg Thompson some slight recompensation from the the IRS, you have to put into the field Durbin Leahy Torricelli Enzi Levin Warner Internal Revenue Service in that they a big dog that can back up his bark. Feingold Lieberman Wellstone have dropped all action against her and Otherwise you have a little puppy on Feinstein Lott Wyden against her husband’s estate, and stat- the porch that is meowing with the NOT VOTING—1 ed that they will no longer pursue the cats. It is not going to change the IRS Akaka liability which they originally alleged to put a toothless puppy in as an advi- The amendment (No. 2341) was re- was due and which drove this family sory board. I believe a full-time board into such despair. The manner of the can give us the strength we need for jected. Mr. ROTH. I move to reconsider the collection was just horrific. The way in vital reform. I ask for support of my which they proceeded was horrific. amendment. vote. Mr. KERREY. I move to lay that mo- Of course, we have seen testimony Mr. KERREY addressed the Chair. before the Senate committee on which The PRESIDING OFFICER. The Sen- tion on the table. The motion to lay on the table was Chairman ROTH has been holding hear- ator from Nebraska. agreed to. ings which reflected agents coming Mr. KERREY. I was concerned as to Mr. GREGG addressed the Chair. into slumber parties and forcing young where that animal analogy was going The PRESIDING OFFICER (Mr. children to get dressed in front of to go. Again, I appreciate very much BURNS). The Senator from New Hamp- them, at gunpoint essentially, and what the Senator from Missouri is try- shire. throwing a household into chaos in ing to do. I think the intent is shared Mr. GREGG. Mr. President, I know that manner. both by myself and the chairman of the there are a number of Members who Even a former majority leader of this committee. We believe very strongly wish to speak, so I will keep my com- Senate, Senator Baker, was subject to that this amendment would actually ments brief. But first I want to con- what amounted to extortion as a result reduce the President’s ability to find gratulate the chairman of the com- of the activities of what I think was qualified people to come and bring mittee, Chairman ROTH, for bringing then a rogue agent pursuing Senator their considerable expertise to assist forward this really excellent bill to try Baker. the Commissioner who will be granted to address what have been some ex- The instances go on and on. And al- new authority to manage the Internal traordinary abuses which have been most every Member of this Senate, I Revenue Service to restructure and im- testified to before his committee and suspect, has cases in their home State prove customer service, improve the testified to in other arenas. of abuse, of action taken by specific use of technology, and increase the sat- In my own case, I held a meeting in agents which went beyond anything isfaction that customers of the IRS New Hampshire—a number of meet- which we in a democracy should tol- get. ings, and found that we have had over erate. So although it is well intended—I ac- 75 cases involving complaints involving Thus, this bill is absolutely appro- tually started out where the Senator the Internal Revenue Service since I priate because this bill puts the tax- from Missouri is—I believe it will make have been in the Senate, which is an payer back on a level playing field. In- it more difficult for us to get the kind extremely high percentage. stead of treating the taxpayers as if

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4403 they are guilty until proven innocent— The PRESIDING OFFICER. The Sen- est degree of public confidence in their just the exact opposite of the way our ator from Colorado is recognized. integrity, efficiency, and fairness. culture proceeds—this bill puts the Mr. ALLARD. Mr. President, I rise in When this fundamental trust is burden back on the Internal Revenue support of H.R. 2676. breached, taxpayers must have ade- Service, where the taxpayer can Mr. President, I also want to talk quate recourse. present a reasonable case. about reform of the Internal Revenue The Senate IRS reform bill gives In addition, this bill says to the Service. The Senate Finance Com- them the necessary recourse. spouse, who is just a bystander, that mittee examined this issue last year, Taxpayers would have expanded abil- they will not end up being treated un- and they recently conducted a careful ity to collect damages and expenses fairly or abused as a result of the mis- reexamination. I commend my col- when they are the target of improper deeds of their husband. And in most in- leagues, particularly the chairman of IRS actions. Also, agents who take improper ac- stances where the spouse simply signs the Finance Committee, for their vigi- tions, such as improper seizures we the return, the innocent spouse lan- lance on this issue. have heard on this floor, false state- guage in this bill is very, very appro- They have worked very hard to iden- ments under oath, which was heard in priate. And the chance to recover from tify problems with the Internal Rev- the IRS for damages which are caused the committee, falsifying documents, enue Service and to craft legislation to we heard those before, violation of tax- as a result of excessive activity on the correct the problems that were pointed part of agents who may act outside the payer confidentiality, and even out during committee hearings. harassing a taxpayer, would be termi- reasonable course of collection of taxes As we saw in the hearings last fall, is also very appropriate in this bill. nated under the Senate bill. the IRS has lacked accountability for While it is important to make whole So this is truly a strong bill. It is years. The most recent hearings re- dedicated to the purpose of trying to those who have been injured by the mind us of the importance of reforming IRS, it is even more important to pre- rein in the Internal Revenue Service this institution. management activities and make the vent abuses from ever happening. No one can dispute the fact that we Senator ROTH’s bill would provide Internal Revenue Service a more re- must end business as usual at the IRS. this important protection for tax- sponsible agency as it deals with our We must bring accountability and in- payers. citizenry. Because the bottom line, tegrity back to the IRS. Innocent spouses could no longer be quite honestly, in our tax collection American citizens should not live in held liable for the tax debts of their service, in our tax collection system as fear of their government. spouse, and spousal liability would be a democracy, is that people have to Certainly most IRS employees work limited on joint returns. have confidence; they have to have diligently and honestly to insure that Thanks to this bill, taxpayers will fi- confidence in the system. They have to they administer the nation’s tax laws nally receive due process in their deal- have confidence that when they pay accurately and fairly. ings with the IRS, which I think is a their taxes, they are paying, No. 1, But as we have seen, the IRS as an significant part of this bill. their fair share and, No. 2, they are institution has fostered a culture that IRS agents would have to follow spe- going to get fair treatment in the man- tolerates and at times even encourages cific procedures before seizing assets or ner in which their taxes are reviewed. those few who operate outside the law. filing liens, and they would be pre- And as people lose that confidence, we We desperately need reforms to bring vented from seizing someone’s home will lose compliance. to justice those agents and elements for a minor tax liability. What we have seen basically is that within the IRS that have so far flauted The IRS would also be subject to the people have lost their confidence in the the law. same Fair Debt collection standards manner in which the Internal Revenue The best way to curtail the power of that all other bill collectors in Amer- Service pursues the collection of taxes the IRS is to simplify our nation’s tax ica are required to follow. in this country. This bill will hopefully laws. This year I have met with citizens in move a large step down the road to- Congress is the principal entity re- all 63 counties of Colorado. wards reestablishing faith in the col- sponsible for the tax code. In many of those meetings I had, I lection process that we pursue in this Frankly, I believe Congress should constantly heard about how frustrating Nation for our tax obligations. scrap the current tax system and start and intimidating it can be to deal with It does not get to the underlying the IRS. The Senate IRS reform bill problem, of course, which is that the fresh with a simple and fair system. The federal tax burden on hard work- would make it easier for citizens to tax laws have become far too complex, ing Americans is excessive and overly communicate with the IRS. far too intricate, have gotten to a The bill would require all IRS notices intrusive, and reform is long overdue. point of legal mumbo jumbo that very and correspondence to include the By striking at the heart of the prob- few people can understand what the tax name, phone number, and address of an lem with a fairer, flatter tax system, laws actually say or can even comply IRS employee that the taxpayer should Congress will put an end to abusive with them without the assistance of contact regarding the notice. professionals. That issue we also need IRS practices. It would also be easier to contact the to address as a Congress. Until Congress is able to pass sub- IRS with general questions since they We need to simplify, make fairer, stantive changes to the nation’s tax would finally be required to publish make flatter our tax system; make it a system that the President is willing to local phone numbers and addresses in more comprehensible and understand- sign, we must reform the IRS. the phone book. able tax system. Pending doing that, Senator ROTH’s bill would create an Unfortunately a few agents have which I hope we will do in the next independent oversight board that elected to use the IRS as their personal year or so, this bill is a major stride would redefine IRS accountability. weapon, but the abuse of taxpayers forward in giving the taxpayers fairer The board would provide desperately must stop. and better treatment under the Inter- needed oversight of the management The IRS must recommit itself to nal Revenue Service procedures and al- and operation of the IRS, as well as its serving the taxpayers. lowing taxpayers to be treated like enforcement and collection activities. The Senate IRS reform bill is a sig- citizens of a democracy rather than Taxpayers have a right to expect nificant step towards that goal. citizens of a police state. honesty and integrity in their dealings According to Judge William Downes, Mr. President, I yield back such time with the IRS. The conduct of our Nation’s affairs always as I may have. In fact, the mission statement of the demands that public servants discharge their The PRESIDING OFFICER. Who IRS calls on its employees to perform duties under the Constitution and the laws yields time? in a manner warranting the highest de- of this Republic with fairness and a proper gree of public confidence in their integ- spirit of subservience to the people whom Mr. ROTH. I ask Senator ALLARD, do they are sworn to serve. Respect for the law you want to proceed with your com- rity, efficiency, and fairness. Let me can only be fostered if citizens believe that ments? repeat that. The mission statement of those responsible for implementing and en- Mr. ALLARD. Thank you, Mr. Chair- the IRS calls on its employees to per- forcing the law are themselves acting in con- man. form in a manner warranting the high- formity with the law.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4404 CONGRESSIONAL RECORD — SENATE May 6, 1998 I conclude by saying Congress must foreign-controlled corporations doing transactions between related corpora- pass this legislation to end abusive business in the United States pay zero tions? Well, you take all their trans- practices and restore American con- in Federal income taxes. actions and try to put them back to- fidence in the IRS. Now when they come here and com- gether and measure whether they are I yield the floor. pete against a U.S. corporation that priced in a way that would represent The PRESIDING OFFICER. The Sen- does business only here and must pay fair market prices. That is like taking ator from North Dakota. taxes only here, they are engaged in two plates of spaghetti and trying to AMENDMENT NO. 2344 unfair competition because they do attach the ends of the spaghetti. It (Purpose: To examine the transfer pricing business here tax free while our domes- cannot be done. The result is billions enforcement efforts of the Internal Rev- tic business pays a tax to our country. and billions and billions of dollars— enue Service) This deals with tax enforcement. some estimates are over $40 billion a Mr. DORGAN. Mr. President, I rise to The reason I offer this amendment is year—are lost to the U.S. Treasury offer an amendment on behalf of my- I want to just describe in a moment through massive tax avoidance, while self and Senator REID from Nevada. I how tax avoidance occurs in this area we are worried about whether people believe the amendment has been and why it is important to have an In- who go to work every day pay their worked out. ternal Revenue Service that is making taxes—and they do pay them because Let me describe it briefly. As I de- sure these corporations pay their fair they don’t have any flexibility; they scribe this amendment, let me say that share of taxes in this country as well. can’t get out of it and they can’t over- the issue that is addressed in this bill There have been a number of stud- price tweezers to $18 and tractor tires dealing with the behavior of the Inter- ies—a GAO study, a Treasury study, an to $7.60. They pay their tax. nal Revenue Service is an important IRS study, a study by two professors I want the IRS to worry about en- issue. Stories with respect to hearings from Florida, Pak and Zdanowicz. Let forcement of our tax laws with respect that have been held here in recent me show Members what these studies to those who are doing business here to months, stories of abuse and taxpayer have told us. Corporations, in this case the tune of tens of billions of dollars, harassment, are stories that reflect foreign corporations doing business in earning income here to the tune of tens horrible mismanagement, in my judg- this country, can simply inflate the of billions of dollars, and paying zero ment, at the Internal Revenue Service. cost of what they are selling to their to this country in taxes. American This bill serves notice that that kind U.S. subsidiary that they wholly own, firms that do business here must pay of behavior will not ever be tolerated and when they inflate the cost of the taxes; so too should foreign companies. at the Internal Revenue Service. This product they are selling to their wholly The amendment I offered is very sim- piece of legislation gives taxpayers owned subsidiary, their subsidiary in ple. It simply requires the Internal some muscle to fight back when and if the United States ends up doing a lot Revenue Service Oversight Board that this occurs, and this piece of legisla- of business but ends up paying no taxes we are creating to conduct a study of tion makes some management changes because they say they made no profits. whether the IRS has the resources at the Internal Revenue Service, some Let me give you an example of pric- needed to prevent the tax avoidance by structural changes, to make sure the ing. Tweezers. A pair of tweezers for these companies. In other words, do mismanagement does not occur again. $218. You have been to a drugstore or a they have the resources to enforce in Now, there is another issue, however, grocery store and bought tweezers. Did this area, No. 1; and No. 2, to analyze that is important and this issue has you pay that for tweezers? I don’t how much we are losing in this area of not been the subject of hearings. That think so. Tweezers are priced at $218 so tax avoidance. is the issue of enforcement. You must that a foreign corporation can over- It is, in my judgment, scandalous. I have a tax system to collect the money charge to the domestic subsidiary and, refer anybody who is interested to the to do the things we need to do as a therefore, take all the profit out of study by Pak and Zdanowicz, released country—provide for our common de- that subsidiary and claim they made not long ago. They are two Florida doc- fense, to pay for roads, to pay for no profit in the United States. tors who say that the U.S. Government health research, to pay for food safety, How about safety pins for $29 each? was cheated out of $42.6 billion in tax to pay for environment protection. So That is $29 for a safety pin. That is an- revenues in 1997. That is a huge area. who pays those taxes? What kind of other way to price your profit out of I heard all this discussion on the agency collects them and who pays the the United States and show no income floor about the IRS targeting low-in- taxes? and pay no taxes to the United States. come folks. That represents a different We want to make sure our tax laws How about a toothbrush imported sort of enforcement. That deals with are enforced sufficiently so that some into the United States from France for the earned-income tax credit. That is of the largest economic interests are $18 apiece? Has anybody here bought a why that is happening. What about tar- not getting by paying zero taxes while toothbrush for $18 apiece lately? geting the folks doing business here the working families, who get out, go There is another way to do this, by and not paying taxes here, who are to work and work all day, and have a the way, which is that corporations earning billions of dollars every year in salary or a wage and have withholding can have a foreign subsidiary in an- the United States in profits and using taken out of their check, pay their other country and they underprice price transfers to price their income taxes because they have no choice and their export to that foreign subsidiary, out of this country and shield it from no flexibility. and that tends to move profits away the U.S. taxpayer? Shouldn’t they have A recent study done by the GAO says from the United States as well. to pay income tax on their profit as foreign-controlled corporations doing Let me tell you what they do there. well? business in the United States and not How about a piano, selling a piano to a My amendment requires the over- paying taxes equal 73 percent of all for- company in Brazil for $50? Or what sight board to do certain things and re- eign corporations doing business here. about tractor tires, selling a tractor port back to Congress within a year. I Let me say that another way. If you tire to France for $7.69? Do you think hope that perhaps this will stimulate think of the brand names of foreign U.S. farmers are able to buy a tractor some activity to take a look at this products that you purchase in this tire for $7.69? How about a bulldozer for area and to see if we can’t get the taxes country, just the most common brand $551? You all know what a bulldozer that are owed this country by foreign names of companies who sell billions of looks like. Do you think you can buy corporations doing business in this dollars’ worth of products in this coun- that for $551? How about a missile- country, making a great deal of money try, and make billions of dollars in net rocket launcher for $58? That is the and paying nothing—literally zero—in income in this country, you can be sure way you move income around and end Federal income taxes. My under- that some of those names you just up not paying income tax to the United standing is that this amendment has thought of are part of this 73 percent States of America, when all the rest of been cleared on both sides and, if so, I who do business here, make money the taxpayers here pay the tax. would only need a voice vote. here, and pay no taxes here—none, My point is very simple. How do you Mr. KERREY. Mr. President, we are none at all. Seventy-three percent of enforce what is called arms-length prepared to accept this amendment. It

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4405 requires a study to be done. I think it ator GRAHAM of Florida is going to ture, risking all of the resources that is a very important amendment. I ap- offer an amendment, and we would like she had, while also having to provide preciate the Senator bringing it onto to keep moving on the bill. Do you for her other children. Nevertheless, this bill and bringing it to our atten- have a period of time in mind? she was bound and determined to pro- tion. There is a problem with non- Mr. REED. I will finish within 10 vide for Morgan. compliance; it is a big problem. Indeed, minutes, or maybe much less. Fortunately, this story has a happy there is a problem in the IRS with non- Mr. KERREY. Fifteen minutes is fine ending. About a month after pleading compliant taxpayers, and Americans with me. by Mrs. Smith, and by others, the in- believe a problem with the IRS is that Mr. REED. Mr. President, it will be surance company relented and she was people who are complying are being way under that. granted permission to have the treat- harassed by the IRS. We have spent a f ment conducted in Boston. And the child is doing very well. lot of time, as is appropriate, dealing MANAGED CARE with the second category. I appreciate That is merely one example of the what the Senator is asking for very Mr. REED. Mr. President, today we stories we are hearing constantly much. are engaged in a very important debate about managed care and its inability at Mr. ROTH. Mr. President, likewise, I about the reform of the IRS, but there times to provide the kind of care that am willing to accept the amendment of is another very crucial debate that we most parents think they should get the Senator from North Dakota. also must consider and recognize, and when they pay good money, or their The PRESIDING OFFICER (Mr. that is the debate about the future of employer pays good money, for these HUTCHINSON). Will the Senator call up our health care system in the United managed care plans. his amendment? States—particularly the managed care There have been studies in parts of Mr. DORGAN. Mr. President, I send health care system, which is becoming the country suggesting that the man- an amendment to the desk and ask for so prominent in America today. aged care plans are not best suited, in its immediate consideration. I am particularly concerned that many cases, for children. A study in The PRESIDING OFFICER. The children should also be part of this de- California by Elizabeth Jameson at the clerk will report. bate and that they deserve the same University of California compared The assistant legislative clerk read consumer protections that many have managed care plans with the State’s as follows: talked about in the context of adult Medicaid plan for children. Medicaid plans are sometimes stereotyped as the The Senator from North Dakota [Mr. DOR- health care plans. Managed care, as we low-cost and, by inference, low-quality GAN], for himself and Mr. REID, proposes an all recognize, plays a very important amendment numbered 2344. and critical role in our health care de- health care. This study, however, found that in many respects children in Cali- Mr. DORGAN. Mr. President, I ask livery system and has provided many fornia’s Medicaid Program were get- unanimous consent that reading of the benefits. But we also hear repeatedly ting better pediatric care than those amendment be dispensed with. about instances in which patients—par- enrolled in managed care plans in the The PRESIDING OFFICER. Without ticularly children—are not served as State. objection, it is so ordered. well as they should be by managed care. The study found, for example, that The amendment is as follows: some of the managed care plans im- On page 394, between lines 15 and 16, insert: I recall one child who was brought to posed restrictions on referrals to pedi- SEC. 3803. STUDY OF TRANSFER PRICING EN- my attention in Rhode Island. A young FORCEMENT. child, Morgan Smith, was born in atric specialists. They also found that many plan providers were attempting (1) IN GENERAL.—The Internal Revenue Rhode Island November of 1993. Shortly to deal with very complicated pediatric Service Oversight Board shall study whether after her fourth birthday, Morgan was the Internal Revenue Service has the re- conditions with which they had little diagnosed with Rhabdomyosarcoma, a sources needed to prevent tax avoidance by experience. companies using unlawful transfer pricing cancer that attacks any smooth muscle As a result of the anecdotal evidence, methods. in the body, including blood vessels. as a result of the statistical studies (2) ASSISTANCE.—The Internal Revenue They detected this cancer in Morgan’s and surveys that have been done in Service shall assist the Board in its study by brain. She was indeed faced with a crit- parts of the country, I have introduced analyzing and reporting to the Board on its ical, life-threatening brain tumor. S. 1808, the Children’s Health Insurance enforcement of transfer pricing abuses, in- We are fortunate in Rhode Island be- cluding a review of the effectiveness of the Accountability Act. It is designed to cause we have an excellent children’s provide an opportunity for children’s current enforcement tools used by the Inter- hospital, Hasbro Children’s Hospital in nal Revenue Service to ensure compliance health to be considered and focused on under section 482 of the Internal Revenue Providence, which is the hospital in a managed care plan. This act would Code of 1986 and to determine the scope of where Morgan was diagnosed. The pedi- provide common sense protections for nonpayment of United States taxes by rea- atric oncologists there determined that children in managed care plans—pro- son of such abuses. the best treatment for Morgan would tections, for example, that would en- (3) REPORT.—The Board shall report to be to go to the New England Regional sure that a family has access to nec- Congress, not later than 12 months after the Medical Center in Boston for special- date of enactment of this act, on the results essary pediatric services; that they ized chemotherapy. Now, her mother, would have appeal rights and special of the study conducted under this sub- obviously, was willing to do anything section, including recommendations for im- conditions with respect to children; proving the Internal Revenue Service’s en- to treat her child and have the best that they would have quality programs forcement tools to ensure that multinational benefits for her child. that measure outcomes with respect to companies doing business in the United At that point, the insurance com- children and not just to adults; that States pay their fair share of United States pany denied her the ability to bring her there would be utilization review rules taxes. child to Boston and requested that that be geared toward children and not Mr. DORGAN. Mr. President, I urge they get a second opinion. They got just to adults; that there would be adoption of my amendment. that second opinion; it was the same as child-specific information in terms of The PRESIDING OFFICER. Without the first opinion. However, the HMO the sale of these plans on care provided objection, the amendment is agreed to. still refused to authorize the treatment to children. The amendment (No. 2344) was agreed necessary for that 4-year-old child to There are so many parents who buy to. receive life-saving therapy in Boston. plans and think they have coverage for Mr. REED. Mr. President, I ask unan- Mrs. Smith literally had to wage war their kid, only to discover in a time of imous consent to proceed as in morn- against the HMO to make her point. At crisis that the coverage is not what ing business. the time, she was absolutely crushed they thought it was. My legislation The PRESIDING OFFICER. Is there by the prospect of her young child would put that information up front. objection? being stricken with a life-threatening What I have done with respect to Without objection, it is so ordered. brain tumor. She determined on her children is consistent with a much Mr. KERREY. I wonder if the Senator own to go to Boston regardless of the broader class of legislation that is at- would specify an amount of time. Sen- consequences, risking her financial fu- tempting to reform managed care for

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4406 CONGRESSIONAL RECORD — SENATE May 6, 1998 the entire population of patients. The AMENDMENT NO. 2347 nal Revenue Service and, if necessary, Health Care Bill of Rights, for example, (Purpose: To require 1 member of the Inter- the Congress, for appropriate changes introduced by my Democratic col- nal Revenue Service Oversight Board to be in law. leagues, is one such plan. My legisla- a representative of small business) The distinguished chairman of the tion is consistent with this overall Mr. GRAHAM. Mr. President, I rise Small Business Committee, Senator thrust to ensure that managed care for the purpose of offering an amend- BOND, joins me in this effort. I want to continues to operate for the benefit of ment on behalf of myself and Senator commend him for his thorough anal- patients, that operates by allowing BOND. ysis of the IRS bill as it affects small physicians to provide advice, and not Yesterday, I spoke at some length business and for including this provi- accountants, to control the diagnosis about the issue of small business and sion in his legislation. and the application of health care. the Internal Revenue Service. In that So, Mr. President, I send to the desk With respect to children, again, the statement I pointed out that small an amendment which would add to the American people are strongly sup- business is a peculiarly affected part of requirements for those persons who are portive of proposals to give better ac- the American economy as it relates to serving on the IRS Oversight Board cess through managed care for pedi- the Internal Revenue Service. that there be included expertise in the atric services. In a February 1998 poll Small business, as we know, is the needs and concerns of small business. by the firm of Lake, Sosin, Snell, Perry fastest growing sector of our economy. The PRESIDING OFFICER. The and Associates and the Tarrance Typically, management has multiple clerk will report. Group—two pollsters, one Democrat responsibilities and does not have the The assistant legislative clerk read and one Republican—it was found that kind of access to a panoply of expertise as follows: 89 percent of adults surveyed favored in accounting and law as a larger busi- having ‘‘Congress require HMOs and The Senator from Florida [Mr. GRAHAM] ness would have. Oftentimes the small proposes an amendment numbered 2347: other insurance companies to allow businessperson and those associated On page 176, between lines 4 and 5, insert parents to choose a pediatrician as with the small business are in their the following: their child’s primary care physician.’’ own learning curve as to what require- ‘‘(vii) The needs and concerns of small And 90 percent favored having ‘‘Con- ments of compliance might be. businesses. gress require HMOs and other insur- Therefore, it is my feeling as we look Mr. GRAHAM. I thank the Chair. ance companies to allow parents of at this reform of the IRS that we I ask for immediate consideration of children with special care needs, like should pay some special attention to this amendment. cerebral palsy, cystic fibrosis, or severe how this will evolve in terms of its ap- Mr. KERREY addressed the Chair. asthma, to choose a pediatric specialist plication to small businesses. As we The PRESIDING OFFICER. The dis- to be their child’s primary care physi- know, one of the principal elements of tinguished Senator from Nebraska. cian.’’ this reform is the establishment of an Mr. KERREY. Mr. President, we There is overwhelming public support would be prepared on this side to ac- for these provisions that will allow par- IRS Oversight Board. This oversight cept what I consider to be a very, very ents to truly and wisely choose cov- board has the responsibility of being good amendment. The idea of this erage for their children and have the both the window of the Government board is to give the President author- ability to have pediatric specialists onto the taxpayer, and the taxpayer care for their children. back to the Government. So it serves ity to select from a wide range of expe- Again, this is consistent with a an especially important role of under- riences that will assist the Commis- theme, a message, and a responsibility standing and communication. sioner of the Internal Revenue Service that we all have; that is, to move in The legislation is written so that in managing the agency, and the Com- this time decisively, with determina- three of the members of the nine-mem- missioner has already indicated—in- tion, to ensure that we reform the ber oversight board are ex officio—the deed, we are going to help him follow managed care system, that we provide Secretary of the Treasury, the IRS through—his preference to manage the the benefits of managed care in terms Commissioner, and a representative of IRS much differently than it currently of preventive services; in terms of ac- IRS employees. The other six ap- is. cess to physicians, that we do it in a pointees are Presidential appoint- The IRS is currently managed using way that physicians know they are pro- ments, and according to the current a three-tiered system that we adopted viding the best care for their patients draft of the legislation these six ap- in 1952. There are regional and district and that the consumers of health care pointees must possess expertise in the offices, multiple offices, and you have know that they can have access to following areas: management of large all different kinds of taxpayer needs good-quality care. service organizations, customer serv- taken care of in each one of these dis- The time to act is now. I join many ice, Federal tax laws, information trict offices. of my colleagues on an almost daily technology, organization development, What the Commissioner has indi- basis in urging that we take up this and needs and concerns of taxpayers. cated he wants to do is reorganize matter quickly and that we move for- The amendment that I am offering along functional lines. Function No. 1 ward decisively and pass comprehen- will add an additional category of ex- is large business of which I believe sive managed care for all of our citi- pertise to be represented among the six there are 7- or 800,000, individual tax- zens, but particularly for our children. Presidential appointees and that is the payers would be function No. 2, small I thank you, Mr. President. I yield needs and concerns of small business. business No. 3, and nonprofits No. 4. my time. It is the expectation that the President So what the Commissioner is already Mr. ROTH. Mr. President, I suggest would appoint six individuals, and his attempting to do, and this law would the absence of a quorum. responsibility would be to assure that direct him, is to entirely or completely The PRESIDING OFFICER. The those six had a sufficient range of eliminate the three tiers in favor of clerk will call the roll. this kind of functional organization. The assistant legislative clerk pro- backgrounds that they would be able to ceeded to call the roll. cover the six and, if this amendment is But what he is already recognizing is Mr. GRAHAM. Mr. President, I ask added, the seventh requirement. that taxpayer needs vary not according unanimous consent that the order for I think it is extremely important to their geography but according to the the quorum call be rescinded. that among the six people who are ap- category of the taxpayer. One of the The PRESIDING OFFICER. Without pointed as Presidential appointees to largest and most important categories objection, it is so ordered. the oversight board for the Internal of radically different needs than the Revenue Service there be represented f other three is small business. in that six one or more individuals who So what the Senator from Florida is INTERNAL REVENUE SERVICE RE- understand the needs and concerns of doing is adding to the list of require- STRUCTURING AND REFORM ACT small businesses of America and can ments the President would have to con- OF 1998 assure that those concerns are effec- sider when making a selection, and The Senate continued with the con- tively communicated to the manage- that would be some small business ex- sideration of the bill. ment and administration of the Inter- perience which reinforces very much

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4407 the other section of this bill, which di- Chief Justice John Marshall said: The IRS has suffered from years of rects the Commissioner to eliminate, ‘‘The power to tax involves the power neglect and lack of focus. The spotlight as much as possible, the three-tier sys- to destroy.’’ It is our duty as Senators that has been turned on the Service, by tem in favor of this functional system to make sure this country does not use the IRS Restructuring Commission and of organization. its power in that fashion. by the series of hearings we have held So I think it is a very good amend- Running the IRS is a study in careful in the Senate Finance Committee, has ment. It is one of these amendments balances. And I believe that the IRS already had a positive effect on the that just has a few words in it. There is has somehow lost its ability to main- IRS. a lot more to this amendment than tain one side of the equation over the The Service is expanding hours and meets the eye. I think with the addi- years. people for its telephone answering serv- tion of a small business experience, Many tax collectors, in their zeal to ice. Taxpayers got 13 million fewer this board is much more likely to be catch those among us who don’t pay busy signals this year when they called able to carry out its function, and that their taxes, seem to have lost sight of IRS to ask questions about their taxes. is to provide the kind of consistent the most important truth about our Toll-free calls are being answered 91% oversight and advice the Commissioner tax system—that citizens have rights of the time—a huge improvement. Last needs to manage this very important that must be protected. year callers only got through 66% of Anything less undermines our ability agency. the time, and only 39% of the time the to make a system of voluntary tax- Mr. ROTH. Mr. President, I think we year before. This year, phone lines are ation work. are all in agreement as to the impor- being answered 18 hours a day. And for tance of small business. Certainly, the Here’s a graphic example of how the system has gotten out of whack. It’s the first time, the IRS is open on Sat- current success of our economy has de- urdays. pended in large part on the contribu- contained in a recent letter from one of my constituents. It’s a plea for help: People answering the phones are also tion of small business. For that reason, getting better. One group of Baltimore from this side I agree that we should The problem with the IRS started in 1997. John [not his real name] and I had just IRS workers gave correct advice to accept the amendment, and so do. bought a house. I was a semester away from 100% of recent random test calls. Na- The PRESIDING OFFICER. If there graduating from college, and we thought the tionally, accuracy scores are up to 93% be no further debate, the question is on [failed] business was behind us. The last this year, from only 63% as recently as agreeing to the amendment. week in July 1997, I returned home after a 1989. The amendment (No. 2347) was agreed day of working at my part-time job to find a So more taxpayers are able to get nasty note on my front door from [an IRS to. through to the IRS when they have a Mr. GRAHAM. Mr. President, I move agent] stating that he had ‘tracked’ us down question, and more of the answers they to reconsider the vote. and expected a phone call or action would be Mr. KERREY. I move to lay that mo- taken. I promptly called him to find out the will get will be the right ones. IRS has a webpage where taxpayers tion on the table. reasoning behind the note. He was very rude and reluctant to give me any information, can download documents and forms. The motion to lay on the table was because I [was not my husband]. I explained agreed to. Now taxpayers don’t have to run all that I was his wife and he began talking to over town just to find the right paper- The PRESIDING OFFICER (Mr. SES- me in a degrading manner. He said, ‘‘Your SIONS). The Senator from Montana. husband owes tax, and I expect to collect it work. Mr. BAUCUS. Mr. President, during in full.’’ When I asked him to explain, he And the Service has had a series of the last couple of months, in every very quickly said it was for [my husband’s ‘‘Problemsolving Days’’ around the household across the country, Ameri- failed business] and began treating me as a country, where taxpayers can come in cans went through an annual rite. They criminal who was running from the IRS. and get their problems taken care of. We feel we have not been treated fairly in The last ‘‘Problemsolving Day’’ in my sat down at the kitchen table, pulled this situation. We have attempted to make all their financial records together, and good on all other situations regarding this home state of Montana was in Billings figured out what they owed the Gov- [failed] business and have not been hiding in January. More than half of all the ernment in taxes. from the IRS. [The IRS agent] has been ex- taxpayers who participated walked out Nobody likes doing their taxes. And tremely rude and unsympathetic toward us. with their problems taken care of on people dislike paying them even more. He has put a tax lien on everything we own. the spot. Many of the rest have been Yet the vast majority of our citizens do He has also made comments to our account- resolved in the succeeding weeks. ant indicating that he has been tracking our But there are still problems at the pay their taxes. And they pay them personal lives and mentioning purchases and honestly. other personal matters. In [the IRS agent’s] IRS, as our hearings—and my constitu- In short, Americans expect their eyes we are criminals cheating the govern- ent’s letter and plea for help—have money to be used to pay for all of the ment. In our eyes the government is cheat- clearly identified. And many of the im- things that help make this nation ing us by never giving us a fair chance to provements planned by our new IRS great. In return, though, the American make good. This whole situation has cost us Commissioner, Charles Rossotti, re- people want their Government to do over $700 in accounting fees and is still unre- quire legislative action in order to go solved. We are turning to you as a final at- forward. two things. tempt to resolve this problem. We hope you First, the American people want can help us in making the government work The bill before us is a very good be- their Government to treat them with for the people not against them. ginning. It addresses the first expecta- respect and dignity as the revenue is That letter sums up this issue in a tion the American people share—mak- being collected. They expect to have nutshell: Make the Government work ing sure the Government treats them their privacy respected, and to be for the people, not against them. Make with respect and dignity as the revenue treated fairly. Government responsive to taxpayers’ is being collected. It does this through Second, Americans expect that ev- needs. Make service the priority of the a series of provisions. eryone else who enjoys the benefits Internal Revenue Service. Make the First, the bill creates a board, made taxes pay for will shoulder their share IRS treat taxpayers fairly—and with up chiefly of private citizens, to over- of the burden. That their neighbor respect. That’s what my constituent see the direction the IRS is going. The down the street isn’t hiding part of his wants. And that’s what I want. Board will keep an eye on the Service’s income, and thus avoiding paying his We certainly don’t want to tie IRS’s budget, to make sure enough resources fair share of the tax. That everyone is hands so much that tax cheats are en- are being dedicated to customer serv- filing returns, and that the amounts couraged. The rest of us end up picking ice. It will help define long-term goals, claimed on those returns are accurate up the tab when someone cheats. At and make sure the Service stays on and true. the same time, we also can’t have IRS track to meet those goals. The Board Mr. President, I truly believe the harassing innocent citizens, assuming will ferret out problems at the IRS, American people have the right to have everyone is guilty the minute they and help craft solutions to those prob- both of these expectations met. And I walk in the door. lems. believe we here in the Senate shoulder I believe this legislation will help The bill creates significant new per- a great deal of the responsibility for IRS find its way back to the reasonable sonnel flexibilities to make it easier making sure of it. balance that our tax system requires. for Commissioner Rossotti to get his

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4408 CONGRESSIONAL RECORD — SENATE May 6, 1998 own team on board and reward employ- This bill requires that every tax bill blowers, harassment of innocent indi- ees who are doing well. It requires the in the future be accompanied by an viduals, all carried out by a Govern- IRS to submit an employee training analysis of whether it will further com- ment agency oftentimes operating out- plan to Congress, to help employees plicate the Code. How hard it will be side the bounds of the law and with improve the quality of their work. The for taxpayers to comply with the new seemingly limitless authority. A bill requires IRS to tell Congress about law. As we strive to achieve fairness in premise played out within the pages of taxpayer complaints of misconduct by our Tax Code, we sacrifice simplicity. the latest popular novel? Not exactly. employees, and to take disciplinary ac- With this bill, we will be able to clear- These examples, unearthed during re- tion against ‘‘bad apples’’. The bill also ly understand the extent of that sac- cent hearings here in the Senate, are makes it easier for IRS employees to rifice. taken directly from the playbook of provide confidential information to the I believe that one of the hardest the Internal Revenue Service. Finance and Ways and Means Commit- things to do when restructuring any The hearings, and the abuses they tees to report allegations of employee agency, and particularly one as sen- highlighted, have focused the nation’s misconduct or taxpayer abuse. sitive as this one, is to find that deli- attention on the ‘‘IRS Restructuring The bill will reorganize the IRS, cate balance between giving the Gov- and Reform Act’’ that is now before the much as IBM was reorganized when ernment too much power and giving it Senate. Included within the legislation they realized they couldn’t compete too little. are many good provisions that would against newcomers like Microsoft. Give it too much power, and innocent protect taxpayer rights and restrict Right now, IRS is organized hori- citizens will be abused. This is, obvi- the power of the agency. Key provi- zontally, by function. This means ously, unacceptable in a civilized soci- sions would limit interest and pen- every time a taxpayer has a question ety. Even one single instance of tax- alties on delinquent taxes and shift the or a problem that crosses the Services’ payer abuse is one too many. burden of proof from the taxpayer to functional lines, they are handed off to Law abiding taxpayers should not the IRS in tax disputes. a different person in an entirely dif- fear the taxman. Before I continue, Mr. President, I ferent department. No one has final re- But clipping the Government’s wings would like to take this opportunity to sponsibility to getting the taxpayer’s too closely presents its own dangers. commend Senator ROTH, the Chairman problem solved. Americans expect us to make sure ev- of the Finance Committee, for his tre- There is no accountability. eryone is sharing the burden of paying mendous efforts to reform the IRS and This bill reorganizes the agency by for the services our Government pro- his leadership on tax relief. type of taxpayer. There will be a sepa- vides. And it is clear some of us are I also commend the Chairman for rate division for individuals, one for not. IRS estimates the ‘‘tax gap’’, holding the series of oversight hearings small businesses, one for large corpora- which is the measure of tax avoidance, that exposed the abuses upon taxpayers tions, and one for tax exempt organiza- now is almost $200 billion a year. This carried out by the IRS. All of us are tions. Employees within these divisions amounts to more than $1,600 per year greatly indebted to Senator ROTH for will be responsible for just about every for every tax return filed by the rest of that. He has done an outstanding job to type of problem their assigned group of us. formulate a sound and responsible IRS taxpayers could have. They will stick This, too, must stop. Our entire sys- restructuring plan. with the taxpayer until his problem is tem of collecting revenue would un- If enacted, these reform provisions solved. ravel if taxpayers stop paying their fair before us today would improve IRS No more passing the buck. share because they believe everyone service, make the agency more ac- The bill also adds important new tax- else is cheating. countable, and provide better protec- payer protections to the law, to help The bill before us today is not per- tions for the taxpayers. I fully agree protect citizens against arbitrary ac- fect. with Senator ROTH that the goal of IRS tions of IRS agents. It does not address the problem of reform should be to make the IRS ‘‘a The bill will allow taxpayers to sue tax non-compliance. We have left that service-oriented agency instead of a for negligent actions by IRS agents. challenge for another day. law-enforcement agency.’’ Today they must meet a very high There are provisions in it that may Still, Mr. President, a fundamental treshold by proving any abuse was in- seem good at first blush, but may cause question remains: can the IRS really be tentional. more harm than good. We should try to fixed by reform without scrapping the The bill expands the offers-in-com- fix these as the bill goes through the Tax Code? To answer this, we need to promise program. It makes it harder legislative process. take a closer look into the problems for IRS to turn down legitimate offers. But I firmly believe we must not let with the IRS. The bill also requires IRS to leave tax- the perfect be the enemy of the good. The passage in 1913 of the 16th payers with more money to live on We must not let yet another tax season amendment to the Constitution grant- when they enter into repayment agree- go by without the taxpayer protections ed Congress the power to impose an in- ments. this bill provides. come tax. A tiny division of the Bureau In our hearings, taxpayers com- Passing a solid restructuring bill will of Internal Revenue Service was cre- plained about the difficulty of using in- do more to get the IRS on track than ated to collect the taxes. Eighty-five nocent spouse protections. The House a hundred hearings where we sit, pos- years later, this division, now known and Senate bills take different ap- ture, pontificate and play politics. as the IRS, has grown to become the proaches to solving this problem. Both It is our responsibility to the Amer- most powerful agency in the entire make it easier for truly innocent ican people to get this job done quick- Federal Government. spouses to be protected from the tax ly, and to get it done right. I want to The IRS today employs more inves- debts their guilty spouses have accu- be able to go back to the constituent tigative agents than the FBI and the mulated. who wrote me that letter and say, Yes, CIA combined, and boasts a total work- These are only a few examples of the we fixed your problem. And, Yes, the force of more than 100,000. It is hard to taxpayer protections built into the leg- Government works for you, not against believe, but more employees work at islation. you. the IRS than in all but the 36 largest Finally, the bill before us today Thank you, Mr. President. corporations in this country. The deci- takes a first step toward addressing Mr. GRAMS addressed the Chair. sions its bureaucrats make daily affect what may be the biggest contributor to The PRESIDING OFFICER. The Sen- every American who takes home a pay- taxpayer problems with our Tax Code— ator from Minnesota. check. Congress itself. Witness after witness Mr. GRAMS. Mr. President, I rise The agency’s job is to administer and at our hearings complained about the today to speak briefly about IRS re- enforce the Nation’s tax laws and col- complexity of the Code. Witness after form and overall reform of the tax sys- lect tax revenue for the Government. witness complained about how hard it tem. To ensure that all Americans pay their is to keep up with frequent changes we Paramilitary-style raids, attempted taxes, Congress has given the agency make in the law. And they are right. frame-ups, retaliation against whistle almost unlimited power—power that

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4409 goes beyond the authority granted to structure the IRS, all its problem will that I ve been telling for the last 2 days any other agency in the Federal Gov- be solved and there will be no need to on the Senate floor. And in their front ernment. reform our tax system. Unfortunately, page story, they pointed out, ‘‘On the By law, the IRS can audit individuals as the history books reveal, it is not Northern Plains, Free-Market Farming or businesses. It can impose penalties that easy. Yields Pain, Upheaval. After Deregula- and impose a lien on a taxpayer’s prop- We have tried to overhaul the IRS in tion, Drop In Wheat Prices Compels erty or bank accounts, or seize them the past, and somehow the agency al- Many Growers to Quit. The Effect altogether. Average taxpayers and ways comes back more powerful and Spreads South.’’ small business owners have few little more abusive than ever before. At least Mr. President, the article in the Wall administrative or legal remedies two versions of a ‘‘taxpayer bill of Street Journal goes on to report that: against such a powerful agency. rights’’ previously enacted into law Cheap wheat and bad weather are doing to Its unlimited power has made the have had little effect in taming the Nathan Johnson what they couldn’t do to IRS a wasteful, arrogant, incompetent, IRS. Even after last year’s IRS abuse three preceding generations of his farming intrusive, and abusive agency. The IRS hearings, which resulted in promised family. They are defeating him. is driven by illegal quotas and collec- reforms, the abuses continue. tion goals. It has targeted the under- Mr. President, let me make this Mr. President, this is a story from privileged for audits. It has mistreated clear: it is vitally important that we northwestern Minnesota, but it is iden- hundreds of thousands of innocent tax- continue our efforts to reform the IRS, tical to what is happening right across payers. Clearly, this is an agency out and I strongly support Chairman the border in northern North Dakota. This story goes on to say: of control, an agency in need of a com- ROTH’s work and his legislation. My plete overhaul. point is that we should not let this de- Last year, a disease called scab wiped out half the wheat [that Mr. Johnson] planted on But let us not forget how the IRS bate delay or derail real tax reform—to reached this troubled point. Congress the land around his family’s 1887 homestead delay us from carrying out the de- near the Canadian border. And now, a glut of deserves much of the blame for the mands of the taxpayers to scrap the foreign wheat is pushing down the grain’s present state of our hostile tax system, Tax Code and replace it with one that price at the local elevator to an unprofitable for it is Congress that created the IRS is simpler, flatter, fairer, and friend- $3 a bushel. These days, Mr. Johnson is try- in the first place. lier. ing to rent out his land and looking for work Congress grants the IRS its unlim- This Chamber already passed a reso- in the city. ited power. Congress writes the com- lution to sunset the Tax Code. Now we Mr. President, the article goes on to plicated Tax Code that taxes Ameri- should set a date to establish a new tax say: cans’ income over and over and pro- system. Once we have eliminated the Across the Northern Plains, the long mi- vides loopholes to thousands of special Tax Code, there will be little, if any, gration away from agriculture is turning groups, making the Tax Code too com- need for the IRS and its playbook or its into a stampede. From Montana to Min- plicated for even most attorneys and abuses. nesota, thousands who made their living tax accountants to fully understand. Thank you very much, Mr. President. growing wheat are quitting the prairie. A Congress requires the IRS to squeeze blizzard of barnyard auctions is sending I yield the floor. chills down the Main Streets of the towns more tax money out of the taxpayers Mr. CONRAD addressed the Chair. that live off farmers. so that Congress has more to spend. On The PRESIDING OFFICER. The Sen- One man is quoted as saying: top of that, Congress does not have ator from North Dakota. time to fully exercise its IRS oversight ‘‘We’re doing a sale every day,’’ says Brad Mr. CONRAD. I ask unanimous con- Olstad of Steffes Auctioneers Inc. in Fargo, responsibilities. Even while it talks re- sent to be able to speak as in morning N.D. ‘‘Wheat is a dying crop.’’ form, Congress is making the Tax Code business for 12 minutes. And wheat, of course, is the com- ever more burdensome—since last year, The PRESIDING OFFICER. Without modity that goes to make bread, to Congress has added 185 new sections objection, it is so ordered. make pasta; and they are talking here and 824 changes to the Tax Code. Mr. DORGAN. Mr. President, I cer- about it being a dying commodity. Most IRS employees are decent, tainly would not object, but I ask the hardworking people who face an impos- Bad years are nothing new around here. chairman if I might be able to speak Wheat prices were lower in 1990, when a simi- sible task: interpreting and applying for 8 minutes by unanimous consent lar coincidence of bumper harvests around the hundreds of thousands of pages of following Senator CONRAD. the globe swamped the market. The drought the Tax Code and its related regula- Mr. ROTH. A total of 20 minutes of 1988 destroyed wheat fields. But none of tions. A recent study shows that more then. The manager has no objection. that was as deadly to farmers as what is hap- than 8 million Americans each year re- The PRESIDING OFFICER. Without pening now: deregulation. ceive incorrect bills or refunds due to objection, it is so ordered. Two years ago, Uncle Sam began with- IRS errors. Each year, Money magazine Mr. CONRAD. I thank the Chair. holding from the decades-old business of pro- hires 50 professional tax preparers to tecting farmers against the vagaries of f weather and markets. Grain and cotton calculate a return for a sample family. farmers no longer receive ‘‘deficiency’’ pay- No two preparers have ever had the THE FARM CRISIS IN NORTH DAKOTA ments when prices are below target levels. same result; answers can vary by thou- Shelved, too, was the disaster-aid program sands of dollars. It just shows that the Mr. CONRAD. Mr. President, I rose 2 that pumped $18 million into Kennedy— Tax Code is confusing and arbitrary, days ago to alert my colleagues to the This is a small town in Minnesota and this in turn encourages waste, har- economic disaster that is befalling that is being reported on in the Jour- assment, corruption and abuse. North Dakota with a dramatic drop in nal article— Tinkering with the system by merely farm income. And I showed this chart; and the rest of Kittson County after the 1988 restructuring the IRS will not solve its the headline: ‘‘North Dakota Farm In- drought. fundamental flaws. It is clear that the comes Washed Away In 1997,’’ that * * * * * * real problem with the IRS is not man- showed from 1996 to 1997 farm income The bottom line: Many of Kittson County’s agement, or administration, but the dropped 98 percent in North Dakota. farmers are suffering their biggest financial Tax Code on which all IRS decisions In fact, in 1997, the total farm income losses ever. ‘‘Deregulation is turning into a are based. This is such an ugly agency in the entire State of North Dakota, disaster for us,’’ says Duane A. Lyberg, presi- it is hard to make it pretty by reforms. one of the most agricultural States in dent of the Northwestern State Bank. We can replace the IRS management, the Nation, was down to only $15 mil- Now, that tells you something about we can improve its service, crack down lion—$15 million—of farm income the depths of this disaster. It is not on abuses, increase its efficiency, and spread among 30,000 farmers. That was just farmers reporting on it, not just, reduce its waste, but the fundamental a farm income per farm of only $500. as I reported yesterday, implement problems will not go away. Reorga- Mr. President, the Wall Street Jour- dealers or other suppliers to farmers; nizing the IRS without real reform of nal yesterday had a front page article but now the bankers are reporting to the Tax Code will send a false signal to entitled ‘‘Off the Land,’’ and they con- us what a financial disaster they are the American people that once we re- firmed the basic outlines of the story facing.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4410 CONGRESSIONAL RECORD — SENATE May 6, 1998 In fact, I just completed 2 weeks of ing the Senate’s attention to the Wall run a farm. It was a hard, tough life, I meetings across the State of North Da- Street Journal article, and, more im- am sure. Farming is not easy. They kota. And in every small town where I portantly, to the plight of our farmers live out in the country. They have a went, the bankers took me aside and in the northern Great Plains. yard light burning at night. Farmers said, ‘‘Senator, there is something The article mentioned Montana and get up in the morning to do chores, and radically wrong in agriculture. Our Minnesota. The Senator is absolutely they work all day. If they have enough farmers are not cash flowing. And correct. I have never seen it this bad. money to put in a spring crop and they’re not going to cash flow.’’ Just last weekend when I was home a plant some seeds, they wonder whether In North Dakota, the Journal article banker pulled me aside and said vir- the grasshoppers will come, whether reports: tually what you said, Senator; namely, crop disease will come, whether it will So many are throwing in the towel that it is getting so bad the bankers are get- hail and wipe out their crop. Maybe state officials got a federal grant last month ting worried about their loans and none of that will happen and they will to retrain hundreds of growers for other jobs. whether they will be repaid. It is true, raise a crop and that crop will come ‘‘I’ve never seen it as bad as this,’’ says the farmers can’t cash flow. It is grim. out of the ground. Then they will com- Roger Johnson, North Dakota Commissioner I urge farm organizations to dig down bine it in the fall and they wonder, will of Agriculture. deep, put their heads together and there be a price so they can sell the They go on in this article to quote come up with a solution that we, the crop at something more than it cost to the former Secretary of Agriculture of Congress, can help with. produce. the United States, and he says the fol- We passed Freedom to Farm. Most The answer, sadly, except for one lowing: farmers in my State supported it at the year in the past 20 years has been no. Unless the bankers get worried, nothing time because the wheat price was high There is no price for your crop above will get changed in Congress, says Bob and the initial payments were high. We the full economic costs of production. Bergland, Agriculture Secretary during the all knew the day would come when we You do what you love to do and you Carter administration, who lives in nearby would be paying the price for adopting lose money. Roseau, where his family grows wheat. ‘‘The that bill but it has come a lot earlier. hourglass is running out for a lot of farmers The article in the Wall Street Jour- around here.’’ It has come this year rather than a nal referenced today by Senator CON- couple, 3 years from now and with RAD talks about these farmers who de- That is the truth. We are in des- much more strength. It is hurricane cide they can’t do this anymore. They perate trouble in the northern plains. force and will drive more farmers off Let me just conclude with a final just quit. They have to quit. the land. Small towns in eastern Mon- I had a banker call me about two paragraph from the Wall Street Jour- tana are drying up. People are leaving. hours ago and he said, ‘‘You know we nal article. You see shops on the main street only call when there are real problems, Jim Tunhelm, the state legislator here, boarded up. It is because the price of and you know I have one of the most sits at his dining-room table, pointing all around him, in the direction of farmers he wheat, barley, and durum is so low and conservative banks in the state.’’ He knows who are quitting. ‘‘Arnold, Lamar, has been so low at a time when our said, ‘‘The fact is I am now turning Troy,’’ he says. He stops at eight. ‘‘They Government has not done what it away good farmers. Year after year should have called it ‘Freedom to go broke.’ should be doing. after year I have given them operating [As he referred to the so-called Freedom to This is true of all administrations— loans to go into the field in the spring. Farm bill we passed here in Congress in 1996.] to open up foreign markets, get those I can’t do it this year because they We’re going to disappear at this rate,’’ [he countries to reduce their barriers so we can’t cash flow. And they will have to concludes.] can sell more overseas. I am thinking quit farming.’’ He said, ‘‘That is what That is the hard reality of what is particularly of China. China does not is happening out here in rural Amer- happening in my home State. A 98-per- take Pacific Northwest wheat. It has ica.’’ cent reduction in farm income in 1 not for years because of a bogus claim. One might ask, why does it matter? year. Thousands of farmers leaving the That is one of the many examples of And some people in this Chamber think land. countries erecting trade barriers that it doesn’t matter who farms. Why does I started this series of reports 3 days make it difficult for us to sell a prod- it matter that we have a family farmer ago. I pointed out that North Dakota uct. out on the land? Well, you can have had experienced this enormous drop in I very much thank the Senator for corporate agrifactories gassing up their farm income. Yesterday, I reported on raising this issue. I urge Senators to big tractors and farming coast to coast what others are saying who are close to listen to the Senator’s statement be- and you won’t have anybody living out the farm economy. Today, I am able to cause we are going to be facing this in rural America. report the Wall Street Journal is con- issue here in the Senate fairly soon. I Is there a difference between having firming, in this front page story, pre- hope this is constructive in addressing a network of family farms, and farm cisely what I have been saying. the problems that the Senator men- families that dot the landscape of this The fact is, we have a stealth dis- tions. It is happening in spades, today, country, versus having corporate aster in North Dakota. It is brought on in Montana, particularly eastern Mon- agrifactories that gather up land by by low prices, by disease, and by weak tana. the sections and the townships and the Federal policy, a farm bill that does I thank the Senator and I yield the counties and then farm as far as the not sustain farmers in the bad times, floor. eye can see forever? Is there a dif- or at least allow them to continue, and The PRESIDING OFFICER (Ms. COL- ference? It seems to me there is a huge the lack of disaster program. The only LINS). Under the previous order, the difference for this country. disaster program we have now is low- Senator from North Dakota, Senator For social and economic reasons, this interest loans. DORGAN, is recognized. country ought to care about having a So the Federal Government is saying Mr. DORGAN. Madam President, network of families out on the farms in to those farmers, those family farmers Senator CONRAD has raised the farm this country being able, year after who dot the countryside, ‘‘If you are in issue the last several days on the floor year, to produce food for this country. trouble, go deeper into debt.’’ That of the Senate, and I appreciate the If we continue to go in the direction we can’t be the answer. We must do better. comments he has made, as well as the are headed, we will see thousands and I urge my colleagues to pay attention comments of the Senator from Mon- thousands of family farmers leaving because this isn’t just a matter for tana. the land. It is because we have a farm North Dakota. Yes, we are in the first This is not just about dollars and policy that says you can’t make a liv- trench, but it is just a matter of time cents. And it is not just a lesson in eco- ing out there. It tells family farmers before others experience what we are nomics. My great-grandmother home- you can’t make it. Then this country experiencing now. steaded in North Dakota when her hus- will have lost something significant. I thank the chair. band died. She took six kids and home- The seedbed of family values in this Mr. BAUCUS. I very much thank the steaded on the prairie, pitched a tent, country that we hear so much about Senator from North Dakota for draw- homesteaded 160 acres, and began to has always been the family farm. These

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4411 values roll in from the seedbed of the erybody talks about economics and ever that marketplace happens to be. family farm into small towns and into dollars and cents. This isn’t just about There are those who think this is fine, America’s cities. We will lose some- dollars and cents. This is not about because after all they think it is a free thing important in this country if we knowing the cost of something. This is marketplace. I hope they come to un- do not decide family farms are impor- about knowing the value of something. derstand that the marketplace is not tant and that we will do something to We need to know the true value of fam- free. It has never been free. try to protect them. ily farmers in this country. We can’t have farmers compete Some say in this Chamber, let farm- I am enormously frustrated. This ar- against unfair trade. We can’t have ers operate in the free market. Well, ticle in the Wall Street Journal chron- farmers compete in a marketplace there is no free market. Do you think icles what we see and what we know dominated by millers who want low farmers can raise a cow and ship it to every day in the streets of North Da- prices in the marketplace and grocery China? I think not. Can they raise a pig kota, in our small towns, and out on manufacturers who want lower prices and sell it in China? I don’t think so. the country roads, and the same is true in the marketplace. We can’t ask them Do you think farmers can compete in Montana. We have heard it farmers to compete against scab disease that against Canada, which sends unfairly who come to our meetings and stand will wipe out the crop yield and crop subsidized durum into our markets? up. One farmer comes to mind who quality. We can’t ask them to compete Can farmers compete against the Euro- came to a meeting of mine. He was a against a railroad that will haul their pean communities that subsidize their big, burly guy and had kind of a beard. grain to market but charge them 20 or commodities at 8, 10, and even 12 times It was not a long beard, but kind of a 30 or 40 percent more than is justifi- the level of U.S. subsidies in recent short beard. He had friendly eyes. He able. years in trying to get foreign markets stood up. He was a tall fellow. He said, If somebody thinks that is a free for European wheat? Is that fair? Is ‘‘My granddad farmed, my dad farmed, marketplace, then somebody doesn’t that free? I don’t think so. Yet, we tell and I have farmed for 23 years.’’ And know what ‘‘free’’ or ‘‘marketplace’’ our farmers, you just go ahead and op- then his chin began to quiver. He got really means. We can do better than erate in that marketplace. We will just tears in his eyes, and he said, ‘‘But I that. There are enough of us here to call it free. have to quit this year because I don’t raise enough dust to require that we do What happens in this free market- have the money to continue. I’m out of better, so that in the coming days place? What happens is that the people business.’’ some of this policy can change to be who haul the grain make record prof- He was the third generation in the helpful to family farmers. its. family to farm. He was going out of Mr. CONRAD. Will the Senator yield The people who process the grain business because this country has a for a question? make record profits. The people who farm policy that says we are going to Mr. DORGAN. I am happy to yield. trade the grain make record profits. pull the safety net out from under fam- Mr. CONRAD. I don’t know if the The only people who suffer the losses ily farmers. Now, we had better recon- Senator noticed in the Wall Street year after year, sufficient so that they nect that safety net if this country Journal article, former Secretary of are now going out of business in record cares about having a family farmer left Agriculture Bob Bergland said, ‘‘Unless numbers, are the people who buy the in its future. the bankers get worried, nothing will tractors, get up in the morning and Senator CONRAD, myself, Senator get changed in Congress.’’ plant the seed in the ground, harvest BAUCUS, Senator DASCHLE, Senator Isn’t it the case that you and I just the crop in the fall, and try to sell it. WELLSTONE, and so many others on met yesterday morning with the bank- Those are the people who are losing both sides of the aisle, care about the ers from our State and those bankers money. future of family farmers. We must, it are worried? We had banker after bank- You go to your grocery store and ask seems to me, convince the rest of this er from across the State of North Da- yourself a question. When the price of Congress that this current approach is kota tell us they are going to wind up wheat was $4.50 or $5.50 a bushel and it an approach that leads to failure. farming. We just got a report that, for plummeted to $3.30 a bushel, ask your- Let me read a paragraph in the Wall the first time in anyone’s memory, self what happened to the price of a Street Journal article: land in the Red River Valley of North Dakota, which is the richest farmland loaf of bread in the grocery store. Did The situation in Kittson County suggests you see that price come down? I don’t that deregulation— in the world, will not be farmed this think so. How about when the price of year; it will not be farmed. Which is the description of the cur- beef plummeted? Did you go to the Isn’t it the case, Senator DORGAN, rent farm policy, which I voted against meat counter in your grocery store and when we talked to our bankers, they proudly— see that the price of beef came down? I told us they anticipate thousands of don’t think so. is staying, and for a grim reason: Farmers farmers leaving the land this year in What does it say about this economic are giving up. Nobody is organizing the type North Dakota and a much more serious of protests that attracted national attention system of ours when we say to the peo- the last time so many farmers here were in situation next year unless we take ac- ple who do the hard work, the people trouble. That was in the mid-1980s debt cri- tion? who wear the work clothes, and start sis, when Randy Swenson would travel from Mr. DORGAN. That is exactly the the tractor, and plow the ground, and his Kittson County farm to Fargo and Bis- case. I just hope that as we finish these plant the seed, and harvest: ‘‘You can’t marck to join demonstrators demanding a comments now, we will all understand make any money. It is everybody else federal bailout. Now, the 46-year-old grower that there is work to do. When you see in this process who can make record is just quitting. reports like this—reports that don’t profits. But if you grow the seed, you I say to those out there on the family surprise us because we have been hear- lose money.’’ farm who have struggled, who risk ev- ing it for some long while—we should When they take that wheat into a erything in trying to make a living understand that while part of this processing plant and puff it up and sell every single day—and I hope my col- country is doing quite well and there is it on the grocery store shelf as puffed leagues will join me in this—that they a lot of good economic news, there are wheat breakfast food, they can charge ought not to give up hope. There are also troubled spots in our economy more for the puff than the farmer is plenty of us in Congress who under- that are causing enormous hurt and going to get from the wheat. One suf- stand that family farming is a way of pain to people who don’t deserve it. fers and goes out of business, and the life that this country ought to nurture America’s family farmers are won- other makes a record profit. and protect and help in its future. derful people. They are the people in If this Congress and this country I hope, as we proceed to discuss this this country who work, who grow, who doesn’t start caring a bit about wheth- in the coming weeks, that we can im- risk, who come together, neighbor to er we have family farmers in our fu- press the need for a change upon those neighbor, to help each other. But they ture, this country is going to lose who were the architects of this farm can’t help each other when they go to something very important. When we program. The current program puts the market and discover that the price talk about this subject around here, ev- farmers into the marketplace, what- of wheat is $3 or $3.30, or when they go

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4412 CONGRESSIONAL RECORD — SENATE May 6, 1998 to the field and discover that scab As the United States contemplates Second, the FDA is required to de- wiped out half the quantity of their total elimination of CFCs and removal velop criteria by which ‘‘essential use’’ grain, or when they go to the railroad of the essential use designation for in- allowances for CFC-propelled inhalers and discover that the price to haul the halers, we face several issues. will be removed. These criteria shall wheat to market is vastly inflated, or First of all, how fast should we phase require that a range of alternatives are when they go to the border up in Can- out CFC inhalers and will patients’ available for each medication type, and ada and discover unfair shipments of health be jeopardized? It is my under- that they are comparable in terms of grain that undercut their prices, or standing that the amount of CFCs re- dosage strength, delivery systems and when they say, I would like to sell my leased by metered-dose inhalers ac- safety and efficacy. Furthermore, the wheat to China, or my beef to China, counts for less than 1.5 percent of the alternatives must be available in suffi- but you can’t get wheat or meat into total amount emitted into the atmos- cient numbers to meet consumer de- China in any meaningful quantity be- phere. Is the environmental benefit of mand. cause we don’t have open markets phasing out inhalers without taking Finally, the Asthma Inhaler Protec- overseas. into account the full needs of patients tion Act includes steps to ensure that It is not fair to put farmers in that worth placing lives in danger? manufacturers will begin to transition position, and we should not. It seems As a member of the Senate Environ- away from inhalers that employ CFCs. to me that we have a responsibility to ment and Public Works Committee and Under the bill, no new applications for provide a basic safety net if we want to the Senate Labor and Human Re- products containing CFCs will be con- protect a network of family farmers to sources Committee, I support the goal sidered by the FDA after 1998 unless be present in this country’s future. I of ridding our environment of ozone de- they represent a significant advance in think we ought to do that. I think it is pleting chemicals. technology. Any new approvals, how- a priority for us in this Congress, and I However, from a patient perspective, ever, will be subject to the same cri- any transition to CFC-free alternatives hope that a number of us can work to- teria as I described earlier. that does not take into account the gether on a bipartisan basis to see that Madam President, the transition to needs of all patients will do more harm this occurs in the coming weeks and non-CFC propelled inhalers in the than good. United States must be well-planned months. Under the FDA’s initial proposal, a Madam President, I yield the floor. and take into account both patient and whole class of inhalers could be re- Mr. HUTCHINSON. Madam Presi- environmental concerns. It is clear moved from the market if only three dent, what is the pending business? that the FDA needs to rethink its ap- alternatives exist. The method by The PRESIDING OFFICER. The proach. We knew this last year after which the FDA has grouped inhaler pending business is H.R. 2676, the IRS the FDA published its proposal and was medications into classes assumes that reform legislation. flooded by more than 10,000 comments they are medically and therapeutically Mr. HUTCHINSON. Madam Presi- from concerned patients, providers, equivalent. I suggest to my colleagues dent, I ask unanimous consent to speak state medical boards, and advocacy this is FALSE. for up to 10 minutes as in morning Inhalers vary in terms of formula- groups. These concerns were again business. tion, dosage strength, delivery of medi- raised last month during a Senate The PRESIDING OFFICER. Is there cation, and their effectiveness for pa- Labor and Human Resources Com- objection? tients. Patients frequently test several mittee hearing which Chairman JEF- Without objection, it is so ordered. inhalers under physician supervision FORDS held at my request. The Senator is recognized for 10 min- before they find the inhaler that works The Asthma Inhaler Protection Act utes. best for them. To deny patients their will ensure that the FDA balances pa- f inhaler without a suitable range of al- tients needs with environmental con- cerns, and above all, does not jeop- ASTHMA INHALERS ternatives could potentially put their lives at risk. ardize the lives of millions of Ameri- Mr. HUTCHINSON. Madam Presi- Another concern that cannot be over- cans who depend on CFC metered-dose dent, today, as you may be aware, is looked is how the removal of existing inhalers. Asthma Awareness Day. I rise to dis- products and their generic counter- It is simply a matter of ensuring that cuss the issue of CFC-propelled asthma parts will influence the marketplace. A the 30 million Americans currently de- inhalers. decrease in competition has obvious pendent upon these inhalers—and all of CFC-propelled inhalers are a nec- consequences in terms of cost and the us have seen them; these little can- essary tool for proper management of availability of drugs on the shelf. isters that asthmatics carry with them asthma and other respiratory illnesses. Finally, the FDA should take into every day everywhere they go—we sim- Over 30 million Americans depend on account other countries’ strategies for ply must ensure that as the FDA moves these inhalers in order to function nor- phasing out CFCs in inhalers in order forward that they will do so in a way mally in their daily lives. In many to ensure that the U.S. takes the best that ensures that patients all across cases, they are literally the difference and most responsible approach. I know this country are not allowed to go between life and death. that Canada, for example, has rejected without medical care that they so des- I recently joined my colleague, Sen- the class approach taken by the FDA perately need; and that the policy of ator DEWINE, in introducing S. 2026, and proposed a policy that will require the FDA will be such that these pa- the Asthma Inhaler Protection Act. a proper range of alternatives to exist tients will know that they are not This bill is a revised version of legisla- for each medication type. It also pro- going to have less choice than they tion that I introduced last year in re- vides for a transition period so patients have now; that the particular peculiar sponse to the Food and Drug Adminis- can ease off of their current medica- medical needs that asthmatics and oth- tration’s announcement of its plans to tion and make sure that there is a new ers of respiratory diseases have will be issue a rule that will phase out the pro- product that accommodates their met; that they will be assured that the duction of CFC-propelled inhalers. needs. needs that they have can be addressed; The FDA’s announcement to phase- The Asthma Inhaler Protection Act and, that the FDA will take those con- out metered-dose inhalers was prompt- addresses all of these issues by includ- cerns into account as they move for- ed by the Montreal Protocol agreement ing three requirements. First, before ward. to eliminate ozone depleting chemi- any further rulemaking, the FDA must I believe the FDA will be responsive. cals, including CFCs. In the U.S., the conduct assessments and report to Con- This legislation, though, is there, and I manufacture of CFCs was discontinued gress on the health and environmental am looking forward to working with in January of 1996. CFCs may still be risks associated with its initial pro- Senator DEWINE, Congressman PATRICK used, however, as long as their use posal. It must also consider whether KENNEDY and Congressman MARK qualifies as an ‘‘essential use.’’ Cur- any measures adopted by the meeting FOLEY on the House side to ensure that rently, inhalers are considered as ‘‘es- of the Montreal Protocol this Novem- as the FDA moves forward with its sential use’’ and are exempt from the ber will facilitate the United States’ rulemaking that it will do so in a way CFC ban. transition away from CFC inhalers. that is going to ensure that 30 million

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4413 Americans are cared for and are not food industry where the conglomerates UNANIMOUS CONSENT AGREEMENT left in the lurch worried that their have muscled their way to the dinner Mr. ROTH. Madam President, I ask very lives might be in danger. table exercising raw economic power unanimous consent that the following I hope all of us on this day, the first over farmers, consumers, taxpayers, list of amendments that I send to the Asthma Awareness Day, will do our and family farmers. Wheat farmers, desk be the only remaining first-degree part to educate the American people corn growers and other farmers—vis-a- amendments in order to H.R. 2676, and about the serious health impact, par- vis these large companies that they that they be subject to relevant sec- ticularly upon our children, that asth- deal with don’t have very much clout ond-degree amendments. ma is having, and the dramatic in- at all. I further ask unanimous consent that crease that we have seen in asthma in This was a good bill for some of the following the final vote on the bill, the this country, and that the FDA in big grain companies. There are only a Senate insist on its amendment, re- their, I think, well-motivated goal of few. But it was not a good bill for fam- quest a conference with the House on removing these chemicals from our en- ily farmers. the disagreeing votes, and the Chair be vironment will do so in a way that the Now, in northwest Minnesota, a com- authorized to appoint conferees on the health and safety of the American peo- bination of dealing with scab disease, part of the Senate. ple is protected. wet weather over the last several The PRESIDING OFFICER. Is there I yield the floor. years, and, most important of all, this objection? Mr. WELLSTONE addressed the Freedom to Farm bill, which has driv- Mr. BAUCUS. I checked with the mi- Chair. en prices down, which doesn’t give the nority side. It is my understanding this The PRESIDING OFFICER. The Sen- farmers a loan rate to have some lever- has been agreed to by both sides, and ator from Minnesota is recognized. age in the market, which doesn’t give his request is consistent with the un- Mr. WELLSTONE. Madam President, them a safety net, is driving farmers derstanding on this side as well. I ask unanimous consent for 5 minutes off the land. Mr. ROTH. That is correct. to speak as if in morning business. We need to take some action. The The PRESIDING OFFICER. If there The PRESIDING OFFICER. Without Secretary of Agriculture supports lift- is no objection, without objection, it is objection, it is so ordered. ing the cap on the loan rate. And we so ordered. Mr. WELLSTONE. Madam President, can legislatively try to raise that loan The list of amendments follow: I thank my colleagues for their gra- rate so that we can give farmers a price REPUBLICAN AMENDMENTS TO IRS REFORM ciousness, and I especially thank Sen- in the marketplace. Roth—Effective Dates. I just want to say to my colleagues, ator GRAMM of Texas. I appreciate it. Roth—Relevant. I told you so. That is the way I will put DeWine—Tech. Correction to Sec. 1059 of f it. I told you so. And northwest Min- the Code. FARM CRISIS nesota is just a harbinger of what is DeWine—Tax Payer Compliance. Collins—Reporting Requirements for Uni- Mr. WELLSTONE. Madam President, going to happen across this country. Prices are low. Farmers are being driv- versities. my colleagues from North Dakota, Thompson—Relevant. Senator CONRAD and Senator DORGAN, en off the land. There is a tremendous Sessions—IRS Oversight Board. said it well moments ago when they amount of economic pain. And it is not B. Smith—Upward Reviews of Employees. were speaking about the Wall Street just the farmers. It is the communities Stevens—Modify tools of trade exemption. where they live, where they go to Craig—Taxpayer notification. Journal piece that came out yesterday, Craig—Taxpayer notification. Tuesday, May 5 regarding what has to church or to synagogue, where they buy their products, where they send Craig—Taxpayer notification. be described as a farm crisis. In this Ashcroft—electronic verification. piece, former Secretary of Agriculture their kids to school. Coverdell—Random Audits. We have a serious crisis in northwest Bob Bergland is quoted. Jim Tunheim, Coverdell—Tax Clinics. Minnesota. I am hearing from farmers a State legislator from northwest Min- Coverdell—Tax Clinics. in other parts of my State as well. I Coverdell—Employees. nesota, is also quoted. think rural America is going to go Coverdell—Mathematical and Clerical Er- I want to talk about what is hap- through some economic convulsions as rors. pening in my State of Minnesota be- a result, in part, of this legislation Domenici—Spanish IRS Help Line. cause I believe it will be incumbent Domenici—Live Person Help Line Option. that we passed. We have to give farm- Domenici—Suspend Interest in Penalties. upon all of us here in the Senate and in ers a fair price in the marketplace. We the House of Representatives as well to Gramm—Lawsuit Waivers. secured them some loan funding in the Gramm—Burden of Proof. take some action. disaster appropriations bill we passed Gramm—Relevant. I was at a gathering in Crookston, last week, which gives them at least Enzi—Charitable Contribution Technical MN some weeks ago. As I walked into some loan assistance for spring oper- Corrections. the school, there was a sign posted out- ations. But it doesn’t make that much Burns—Income Averaging for Farmers. Bond—Electronic Filing. side that said, ‘‘Farm Crisis Meeting’’. difference long-term. It can keep them It brought back awful memories of the Mack—Tip Reporting. going for awhile, but if they don’t get Mack—Treasury Secy. mid-1980s when I went to probably hun- a decent price in the marketplace, they Grams—Disasters. dreds of farm crisis meetings. What I don’t have a prayer. Lott—Relevant. saw then all across Minnesota were That is what this piece in the Wall Faircloth—Relevant. foreclosures; people being driven off Street Journal is about. That is why I DEMOCRATIC AMENDMENTS TO IRS their farms where they not only lived come to the floor of the Senate. I look RESTRUCTURING but where they worked as well. I saw a forward to working with my col- Moynihan—Delay effective dates of certain lot of broken dreams and a lot of bro- leagues, Democrats and Republicans provisions to allow IRS to address Y2K prob- ken lives and a lot of broken families. alike, who come from farm States. We lems, per Rossotti request. This is now happening again. have to do something. We are here to Kerrey—Require annual meeting between Finance and Oversight Board chair. This very fine piece in the Wall try to do well for people. We have to do Street Journal talks about this farm Kerrey—Authorize Treasury Secretary to better for family farmers in Minnesota waive signature requirement for electronic crisis in very personal terms. and across our country. filing. I want to say to colleagues that I I thank my colleague from Texas Kerrey—Require study of willful tax non- know of no other way to say it. Some again for his graciousness, and I yield compliance by Joint Tax, Treasury, and IRS 2 years ago, when we passed what was the floor. Commissioner. Kerrey—Require IRS to review certain called the Freedom to Farm bill, I f called it then the Freedom to Fail bill. stats on success rate of Criminal Investiga- And I think that is exactly what is INTERNAL REVENUE SERVICE RE- tion Div. Kerrey—Require report on fair debt collec- happening. All of the discussion about STRUCTURING AND REFORM ACT OF 1998 tion provisions. the market presupposes that we have Kerrey—Encourage private/public sector Adam Smith’s invisible hand in agri- The Senate resumed consideration of cooperation, not competition, on electronic culture. But what we have instead is a the bill. filing.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4414 CONGRESSIONAL RECORD — SENATE May 6, 1998 Graham/Nickles—Interest netting. Ms. DURGIN. Um, I’m not aware of any. in fact, with all of the concerns that Graham—Innocent spouses. The reporter asks the next question. were raised last year, with all of the Bingaman—Relevant. Daschle—Reduce potential for tax compli- Reporter O’CONNOR. Do you know how statements that were made about ance problems. many reprimands have been given in the last wrongdoing, little evidence exists that Daschle—Relevant. year? any individuals who had accusations Bumpers—Taxpayer protection. Ms. DURGIN. I don’t. made against them in those hearings or Kohl—Prioritizing cases in Treasury IG. Reporter O’CONNOR. Do you know how related to those hearings has had any Feingold—Milwaukee office of IRS. many employees have been suspended? corrective action taken. Durbin—Relevant. Ms. DURGIN. I don’t. Feinstein—Relevant. Reporter O’CONNOR. Fired? As I said at the hearing, and it is Mr. GRAMM addressed the Chair. Ms. DURGIN. I don’t. We don’t keep those something that I will certainly repeat The PRESIDING OFFICER. The Sen- statistics. tomorrow in offering this and other ator from Texas is recognized. Reporter O’CONNOR. Why would you not amendments, my concern with the In- Mr. GRAMM. Madam President, since know that if you’re the head of— ternal Revenue Service is not that you no one is here to speak, I thought I Before she can say ‘‘tax compliance,’’ get some bad people when you hire would go ahead and say a few words. I Ms. Durgin says, ‘‘because I don’t 100,000 people. I mean, people are hu- have several amendments I am going to count them.’’ mans. They make mistakes. Some peo- be offering, and I will, obviously, speak Now, I intend to send this to the In- ple seem to be more prone to them at that time. But I wanted to let my ternal Revenue Service this afternoon than others. And very smart people colleagues know about a story that ran and ask them to check this out, but from time to time do very dumb on the 4th of this month, which was 2 this is exactly the kind of answer that things. With the IRS employing 100,000 days ago, on KTVT, Channel 11, a CBS we have gotten over and over and over people we ought not to be surprised affiliate in Dallas. from the Internal Revenue Service. that we have some people who do bad What struck me about this story is And I intend to offer an amendment, things and some people who do dumb how symptomatic the story is of what probably tomorrow, that will give the things. But that is not what alarms me we saw consistently in our hearings be- head of the Internal Revenue Service about our current situation at the In- fore the Finance Committee and how the power to terminate any employee ternal Revenue Service. consistently this kind of thing is hap- of the Internal Revenue Service who What alarms me is we seem to have a pening all over the country. fails to file a tax return that should be system where people who do bad things The story was the lead story on the filed or who willfully violates the tax never have bad things happen to them. 10 o’clock news on the 4th of May. The laws of this country. We have a system where, when people story is about tax collectors who aren’t Now, I don’t know what is behind do good things like going to their su- paying taxes. Basically, what happened this story. I have obviously not verified pervisors and saying that other people is an investigative reporter asked the what has been said by this reporter. are violating the law or violating the Internal Revenue Service for records But I would have to say that if 4,000 procedures of the Internal Revenue related to tax collectors who them- IRS employees last year either didn’t Service, bad things tend to happen to selves were violating the Tax Code, and file a return or didn’t pay taxes, that is those good people. The difference be- did this ever happen, and, if so, what a very, very serious charge. And I tween a good system and a bad system did the IRS do about it and what kind think the head of the IRS ought to is not that under the good system you of records were kept. It is the kind of have the ability to terminate the em- don’t have people who do bad things. request that government at all levels ployment of somebody whose job it is You do. But under a good system, peo- gets every day from the media. Govern- to collect taxes from other people and ple who do bad things end up being ment officials do not always like to at the same time they don’t pay their punished; people who do good things produce the requested information but, own taxes. end up being rewarded, and as a result, nonetheless, it is produced. Now, as you can imagine, this story people learn from rewards and pen- Well, the bottom line is, as you interviews a businessperson who had alties and so you get more good behav- might have guessed, the Internal Rev- their assets frozen, had all kinds of ior and you get less bad behavior. That enue Service stated that it has no such problems because there was a charge is the hallmark of a good institution. data. Then an IRS employee slipped a that he had not paid his taxes, and that Looking at all the abuses that we document to the TV reporter, and the is contrasted against the assertion that heard about during the Finance Com- document showed that last year nearly 4,000 IRS agents last year either didn’t mittee hearings, the amazing thing to 4,000 IRS employees did not file or pay file a tax return or didn’t pay their me was not that these things happened. taxes. The amazing thing is it doesn’t appear Collectively, according to reporter taxes. I think this is a very serious matter. that bad things ever happened to the O’Connor in this story, they owe Uncle We ought to have a provision in the people who did the bad things. It Sam more than $10 million. And this reporter said that this information new law that says without regard to doesn’t appear that people who vio- coming into their hand forced the IRS any other provision of law, if you work lated the law, violated procedures, to break this down into local numbers. for the Internal Revenue Service and abused taxpayers, abused their fellow The reporter then says, ‘‘We have you willfully violate the Tax Code, you employees, were penalized. It appeared learned that in north Texas, between ought to lose your job. as if—based on the testimony that we 1993 and 1996, 137 IRS employees did not I think that is something that is heard—the IRS system was set up to file or pay their taxes. Last year alone, needed. I think it is a provision that we protect its senior people or to provide 14 IRS agents owed $400,000’’ in unpaid were already looking at, but I wanted an environment in which you reward taxes in north Texas. to make my colleagues aware of this unproductive and undesirable behavior. Then what I wanted to call to my story on the CBS affiliate in Dallas You would have to conclude that the colleagues’ attention is an extraor- night before last and about this ex- structure has historically been one dinary, at least in my mind, interview traordinary interview with Mary aimed at protecting its own versus pro- which sounds exactly like the testi- Durgin who, although she is the Chief tecting the taxpayer instead of cre- mony our committee heard over and of Tax Compliance at the IRS, doesn’t ating a system that tries to reward over and over again. Listen to this. The know if any action has ever been taken productive behavior. reporter is asking Mary Durgin, who is at any time, in any place, under any I think this is something we need to Chief of Tax Compliance for the IRS— circumstances, against any agent who deal with. I think the bill that is before the reporter is asking the Chief of Tax violated the Tax Code. us is a dramatic improvement over the Compliance for the IRS the following That seems to me to be extraor- bill in the House. I congratulate Chair- questions and let me just read the dinary, and, quite frankly, I would man ROTH. I think he has done an out- transcript. have trouble believing it had we not standing job. I think when we started Reporter O’CONNOR. You know of no Fed- had exactly the same thing and the these hearings many people were skep- eral liens ever being filed against an IRS em- same answers given to very similar tical about them. I certainly was skep- ployee? questions before our committee where, tical. But I think the hearings have

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4415 brought to light real abuses. And the tigator, prosecutor, judge, and jury all Not only is that fair, but that is important thing, obviously, for a legis- wrapped into one so that we have no ef- going to change behavior, because we lative body, is not just to find out what fective checks and balances. As the an- are going to make this data public, we is wrong but to try to do something cient Greeks once observed, power cor- are going to list publicly and report to about it. rupts. That is basically our problem in the Congress on the instances where I think we have a good bill before us. the Internal Revenue Service. the IRS has had to pay people these I don’t think it solves all the problems. We have not fixed that problem, in costs. We are going to force the Inter- I would have to say I am very skeptical my opinion. But the way we tried to nal Revenue Service to make better about this advisory board. I don’t un- get at it is to at least give you one judgments about whom to go after and derstand an advisory board that is sup- thing you have if you are accused of whom not to go after. posed to advise the Secretary of the being a common criminal, basically A final wrinkle on this, which I think Treasury and the IRS Director, and the saying if you are a taxpayer you ought is very, very helpful, is that if you offer Secretary of the Treasury is a member to have rights at least equivalent to a to settle with the Internal Revenue of the advisory board. I don’t under- common criminal in dealing with your Service and you, say, offer to pay stand how you advise yourself. It seems Government. The right that we want to $15,000 to settle this dispute, and the to me that gives the Secretary of the guarantee is that the burden of proof is IRS says, ‘‘No, we won’t take your Treasury two bites out of the apple, on the IRS to prove that you did some- $15,000; we are going to take you to and that is probably a mistake. thing wrong, whereas now it is literally court,’’ if at the end of the proceedings There are very real ethical problems true that if you are accused by the In- you are found to owe less than $15,000, ternal Revenue Service of violating the that have been raised by the relevant not counting penalty and interest built Code, the burden of proof is on you. agencies of Government that deal in up during the time where the dispute Here is the innovative way we have ethics in having the head of the Treas- exists, then the IRS will have to pay ury Employees Labor Union as a mem- tried to protect our ability to collect taxes and guarantee this right as well. your legal and accounting costs from ber of this advisory board, since that the time you made the offer until a member, by the very nature of his job I thank Senator ROTH for working with me on this and for the solution that he final settlement is eventually reached. and source of employment, has a con- This is a long way from the checks stant conflict of interest. I don’t under- and his staff have come up with. The way the bill works is, if the In- and balances we have in the criminal stand how you can change the ethics ternal Revenue Service accuses you of justice system. I would like to go fur- rules of the Government to put people violating the law or violating the rules ther in separating the functions of the in a position where they constantly with regard to the collection of taxes, IRS so that we have more checks and have a conflict of interest and expect if you present to them on a timely balances, but I think our bill is a dra- much to come out of this advisory basis the financial data that a reason- matic improvement over the House board. So, frankly, I know many people able person could be expected to have bill. I am very proud of what we have are talking about the advisory board. I kept, if you turn it over to them when done. I hope we can do more. I con- know they have high hopes for it. I requested, at the point that the tax- gratulate our chairman. have very little in the way of high payer has demonstrated compliance I understand that Senator THOMPSON hopes that we are going to get much with those requirements, and only is here, so I yield the floor. out of this advisory board. then, the burden of proof shifts from Mr. THOMPSON addressed the Chair. But what I think we are doing in this the taxpayer to the Internal Revenue The PRESIDING OFFICER. The Sen- bill that will dramatically change be- Service. ator from Tennessee is recognized. havior is, No. 1, we are shifting the bur- I think that answers all the concerns den of proof in disputes between tax- AMENDMENT NO. 2356 that were raised by IRS, all the legiti- (Purpose: Striking the exemptions from payers and the IRS. We are going to mate concerns that were raised by law have some people who will say that in criminal conflict laws for board member professors around the country about from employee organization) doing so we are jeopardizing our ability shifting the burden of proof. There to collect taxes because the taxpayer is Mr. THOMPSON. Madam President, I were other concerns that this would send an amendment to the desk. the only person who has access to the produce endless hearings and rulings financial data and records that sub- The PRESIDING OFFICER. The before courts. But we have dealt with clerk will report the amendment. stantiate the claims made on the indi- that concern. vidual tax return. I think we have Another reform contained in the bill The bill clerk read as follows: come up with an innovative way of re- and which I think is very important, The Senator from Tennessee (Mr. THOMP- solving this. Let me give you the argu- and is something that I have been a SON), for himself and Mr. SESSIONS, proposes an amendment numbered 2356. ment for shifting the burden of proof, champion of along with our chairman, and then describe the innovation that I On page 180, beginning with line 7, strike is strengthening the principle that if all through page 181, line 17. think answers those concerns. you are audited, either in your family’s If you commit a crime, the police tax return or your business tax return, Mr. THOMPSON. Madam President, come out and investigate the crime, and you had to go out and hire lawyers the amendment I am offering, with they gather evidence, they turn the and accountants to defend yourself— Senator SESSIONS and with the support evidence over to the prosecutor, the and you may spend thousands of dol- of Chairman ROTH, strikes the provi- prosecutor evaluates the evidence, and lars defending yourself—that at the sion of title I of the bill which provides in doing so, evaluates not only whether end of the day if you are found to have for a special waiver of the criminal a crime was committed but evaluates complied with the law, that the IRS is conflict of interest laws for the em- the work of the police department and responsible for reimbursement of the ployee organization representative on any abuse it might have committed costs you have incurred in defending the newly organized oversight board. along the way. And if the prosecutor is yourself. As chairman of the Governmental Af- convinced there might be a case, he So if I am an honest taxpayer and I fairs Committee, I have a specific in- takes it before a grand jury that evalu- paid my taxes and the IRS audits me terest in the application of Govern- ates the work of the police, the work of and I have to go out and hire an ac- ment ethics laws and any waivers of the prosecutor, and the facts. Then, if countant and a lawyer to defend my- these criminal statutes which might be the grand jury indicts a person for a self, and we go through 18 months of granted to Federal employees. crime, they go into court where people contention, and finally there is a rul- During markup of the measure, the have a jury of their peers, they gen- ing that says I didn’t violate the law, Finance Committee adopted an amend- erally have an elected judge or an ap- under our bill now, the Internal Rev- ment adding a member to the oversight pointed judge, and they have an inde- enue Service will now find it more dif- board who would be a representative of pendent prosecutor. ficult to avoid having to compensate an employee organization representing Our problem with the Internal Rev- me for my cost of hiring a lawyer and substantial numbers of IRS employees. enue Service is that we are dealing hiring accountants and defending my- However, because of the inherent con- with one agency that is literally inves- self. flict of interest in the new member’s

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4416 CONGRESSIONAL RECORD — SENATE May 6, 1998 position, the committee adopted a sub- elimination would leave this individual ex- amendment just offered by the Senator sequent amendment waiving four es- tremely vulnerable to charges of criminal from Tennessee and the Senator from sential ethics laws as they would apply conduct for carrying out many Oversight Alabama striking the provision in title to this particular board member. Board actions or for carrying out his or her I concerning the oversight board and private duties for the employee organization. specifically concerning the employee It is this specific provision that I pro- The fact this vulnerability exists exposes the pose to strike. Under the waivers as pervasiveness of the conflicts for an officer representative on that board, and even granted, the employee organization or employee of an employee organization to more specifically the language that representative would not be subject to serve on the Oversight Board. will enable that board member to func- the same ethics rules as the other Rather, we recommend the elimination of tion on the board; that is to say, lan- members of the oversight board and the position on the Board that creates such guage which, by the way, is not prece- would not be subject to the same ethics inherent conflicts. The elimination of the dent setting. that apply to other public employees. position could be coupled with a requirement There are many other cases where that the Board consult with employee orga- The bill, as reported, exempts the em- people have been given protection from nizations. While we think a reasonable Board very specific areas of conflict of inter- ployee organization representative would consult without that requirement, re- from key ethics laws when the rep- quiring consultation might provide some as- est in order to be able to do their work. resentative is acting on behalf of his or surance to the various employee organiza- In this case, the only protection her organization. tions that they will be heard. against conflict of interest charges is The Office of Government Ethics re- The criminal conflict of interest laws postemployment, since the individual viewed these waivers and found them should not be viewed as impediments to good selected from the Department of Treas- very troubling. In a letter addressed to Government. They are there for a purpose ury is working for the IRS. and should not be waived for mere conven- Certainly, we want the law to be the majority leader, Senator LOTT, mi- ience. Some may point out that certain pro- nority leader Senator DASCHLE, and the written so they are able to go back to visions of these laws are waived by agencies work with the IRS or do whatever work floor managers of this bill, the Director quite frequently. That is true. Some of the of the Office of Government Ethics, laws anticipate circumstances where a re- they had in connection with the em- Stephen Potts, described these conflict striction could be waived and set forth the ployee’s representative association of interest waivers as unprecedented standards that must be met to issue waivers. without being prevented from doing so. and inadvisable and antithetical to Agencies can and do issue such waivers, but So that is the only protection that this sound Government ethics policies and, the waivers must meet the tests set forth in language provides. the statutes. For those conflicts laws that do There are really three sort of thresh- thus, to sound Government. provide for waivers (not all do), we believe old questions that Members have to I ask unanimous consent to have that it would be extremely difficult for a rea- both ask and answer as they deliberate printed in the RECORD the referenced sonable person to determine that the inter- this particular amendment. The first is letter. ests this individual Board Member will un- one that the Senator from Texas just There being no objection, the letter doubtedly have through his or her affiliation raised a minute ago, which is skep- was ordered to be printed in the with the organization could meet those waiv- ticism about the nature of this board. RECORD, as follows: er tests. In order to meet our recommendation, we Is this board going to be able to get U.S. OFFICE OF GOVERNMENT ETHICS, believe the provisions of Subtitle B, sec. the job done? I believe strongly it is. It Washington, DC, May 1, 1998. 1101(a) should be amended to eliminate pro- is not an advisory board. It is a board Hon. TRENT LOTT, posed sections 7802(b)(1)(D), (b)(3)(A)(ii) and with a considerable amount of power Majority Leader, U.S. Senate, Washington, DC. (b)(3)(D). All other references to an indi- DEAR MR. LEADER: This Office has reviewed and authority to guide the Commis- vidual appointed under section 7802(b)(1)(D) H.R. 2676, the Internal Revenue Service Re- sioner of the Internal Revenue Service. should be removed and wherever a number of structuring and Reform Act of 1998, as it has It is a board that has been put to- members of the Board is indicated (such as a been reported by the Finance Committee Board composed of nine members or five gether, under statute, to have the and, we understand, is soon to be taken up members for a quorum) that number should skills necessary to be able to advise the by the Senate. At the request of both the be altered to reflect the elimination of this Commissioner on a variety of different majority and minority, we provided tech- position. things and to give the Commissioner nical assistance to the Finance Committee We appreciate the opportunity to express input. The board will be making a staff with regard to drafting the language of our concerns and our recommendations. provisions setting forth the ethical consider- budget recommendation to the Treas- These are the views of the Office of Govern- ury Secretary. That is a considerable ations for the Members of the Internal Rev- ment Ethics and not necessarily those of the enue Service Oversight Board. We believe amount of power. Administration. We are available to answer The board will forward three names those provisions are written in a clear and any questions you or any other Member of technically correct manner. the Senate may have with regard to this let- to be Commissioner of the Internal However, one provision of the bill, the pro- ter or the conflict of interest laws. We are Revenue Service to the President. The posed 26 U.S.C. § 7802(b)(3)(D), provides for sending identical letters to Senators board can also instruct the President waivers of applicable conflict of interest Daschle, Roth and Moynihan. they believe the Commissioner should laws for one Member of that Board. We be- Sincerely, be removed from office. There are lieve that this provision is antithetical to STEPHEN D. POTTS, sound Government ethics policy and thus to other powers enumerated in title I. Director. sound Government. Such across-the-board Certainly one can be skeptical, as one statutory waivers for someone other than a Mr. THOMPSON. Madam President, always needs to be with any kind of a mere advisor is unprecedented and, we be- waiving these conflict of interest stat- board. I may be proven wrong. I think lieve, inadvisable. utes establishes a very bad precedent. this board will provide a substantial We understand and agree that the employ- We have an opportunity here to avoid a amount of guidance and assistance to ees of the Internal Revenue Service should serious conflict of interest pitfall, and the Commissioner. I think the powers have an opportunity to be heard in any deci- I hope all Senators will agree and ap- that we have given this board are sions that may affect them. As we stated in a letter to the Finance Committee, there are prove adoption of this amendment. right. standard ways of allowing input from inter- Thank you, Madam President. I believe it is as well important to re- ested parties without allowing the interested Mr. KERREY. Madam President, I member that what this legislation is party to be the actual decision-maker in a suggest the absence of a quorum. attempting to do is create some bal- Governmental matter. It is the latter role The PRESIDING OFFICER. The ance in oversight. The executive over- that is fundamentally at odds with the con- clerk will call the roll. sight organization, this new board, cept that Government decisions should be The bill clerk proceeded to call the should give taxpayers a sense that the made by those who are acting for the public roll. IRS is more accountable, along with interest and not those acting for a private Mr. KERREY. Madam President, I the taxpayer advocate provisions that interest. The one private interest that is ask unanimous consent that the order are also contained in title I. However, being waived in each case for this Board Member is the one most fundamentally in for the quorum call be rescinded. it is important for us to make certain conflict with his or her duties to the public. The PRESIDING OFFICER. Without that Congress has the right amount of On the other hand, we cannot recommend objection, it is so ordered. oversight. that the waivers be eliminated for the indi- Mr. KERREY. Madam President, I The Restructuring Commission that vidual appointed to such a position. That would like to speak for a minute on the met for over a year—Senator GRASSLEY

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4417 and I were both on that Commission— The Senator from Alabama is on the do, there is going to be a lot of per- we heard time after time after time the floor. He and I started this thing back sonnel decisions that have to be made. taxpayers, and the providers that are in 1995 with our oversight efforts in ap- As we heard in the Restructuring assisting the taxpayers, saying that propriations. We saw that nearly $4 bil- Commission, if you are going to make the biggest problem is Congress. There lion had been wasted in the tax system that kind of tough Restructuring Com- is inconsistent oversight. There are six modernization. Every witness, public mission, you are better off having a committees to whom the Commis- and private, that came before the Re- personnel representative on the board. sioner must come to report. The IRS is structuring Commission said the rea- That is why the employee representa- not Sears and Roebuck; they have 535 son, No. 1, is you do not know what you tive is on the board. We are not putting elected Members who are the board of want to use the technology for. You do an employee representative on the directors. not get shared consensus. You do not board for political reasons, but putting One of the great tests to discover get to a point where you agree—the one on the board to make sure you whether or not we understand what the Congress and the executive branch— have an individual who can sell and IRS is doing is asking yourself the what the purpose of the technology is who can persuade and can help get question: Do we know what the IRS going to be. And as the man said, ‘‘If these kinds of restructuring decisions budget is? Do you know how much we you don’t know where you’re going, implemented and make certain that appropriate on an annual basis? It is any road will take you there.’’ there is going to be a minimal amount about $7 billion this year, against That is exactly what the IRS has of resistance on the employees’ side. about $1.6 trillion of tax revenue. They been doing. They have been deploying We heard most eloquently from the collect 95 percent of all the revenue technology in a very dysfunctional or- new tax authorities in Australia that that this Congress authorizes. We au- ganization, and as a consequence the went through a very similar restruc- thorize the moneys that are to be spent technology will not do what they turing as we are doing here. And we and we specify with our tax laws how promised us it was going to do. took their example, as well as many that money is to be collected and who So threshold question No. 1 is, do you other private sector people who talked is to be exempted. think this new oversight board is going about what happens when you restruc- I made the point many times that we to get the job done? I think it will. I ture, to say that we ought to have an talk a great deal on this floor about think it will dramatically change the employee representative on the board. the need for simplification. One of the kind of accountability taxpayers get, Now remember, this board lasts for 10 most powerful witnesses that the Fi- and especially if we combine that with years. It sunsets after 10 years. Con- nance Committee had before us was an new oversight requirements on the part gress may decide that it does not need individual, a tax lawyer who helps tax- of the Congress. I am confident that the board at all anymore, may revisit payers, who was pointing out some oversight board—in combination with threshold question No. 1 and threshold abuse in our Tax Code. He was saying new oversight requirements of the Con- question No. 2. The composition of the to us, as long as you tax income, as gress—I am confident that oversight board can be revisited at that time as long as you have a tax on income, it is board will increase the accountability well. We may, after these restructuring likely, as income becomes more and and the operating efficiency and pro- decisions are made, after you have the more complicated, and more and more vide the Commissioner the kinds of IRS reorganized along functional lines, complex, it is likely the IRS is going to guidance that the Commissioner needs. and after the technology has been fully become more and more involved in Threshold question No. 2 is, who do invested in and implemented, this Con- making determinations whether or not you want to be on the board? What sort gress may decide that there is no need an individual has voluntarily reported of composition? What sort of makeup? to have the representative of the em- the right amount of income. There is very little disagreement. As I ployees’ association on this board. I And we change our Tax Code. I guess hear from colleagues, we ought to have feel very strongly going in that we 2 or 3 weeks ago, when the Coverdell people with private sector expertise. need it. That is a threshold question. IRS bill was passed—I do not want to The Senator from Florida earlier came You may find you don’t want it. You reargue that bill, but no one can argue to the floor and asked for some change may have a legitimate belief that, no, that that increased not only the com- in the bill to put somebody with small that ought not to happen. Fine. But if plexity of the Code and requires the business experience on this board. I you are going to have that person on IRS to work harder, but we have asked think it is very important that we do the board—and I believe a majority of them to now rewrite the Code. That is so. Both Chairman ROTH and I agreed this Senate wants an employee rep- the 63rd change since 1986. to accept that. That has been altered, resentative on the board—if you are In addition to that, the IRS is going accepted, incorporated into the lan- going to have an employee representa- to have to make certain that people guage. tive on the board, make it possible for who claim that deduction, claim to be But in addition, Mr. President, we that individual to do the job. able to use that educational IRA, they also heard from people who have gone Why would you put somebody on the are going to have to provide receipts. through the restructuring that the IRS board and then neuter him with a stat- Because the law says that you can use is going to go through. And make no ute that says there will be a conflict of the education IRA for any expense that mistake about it, Mr. Rossotti, with interest? That is what this conflict of is connected to the education of the the new powers that Chairman ROTH interest language does. It does not re- child in the school, and thus we are has written into this bill that he will move this representative from all the going to have to have the IRS out have, Mr. Rossotti has a lot of work to other conflict of interest laws in every there if something is claimed and they do. He is going to go from a three-tier one of the other private sectors that can be audited and have to produce all geographical system that has 10 re- people have to abide by. It is not a those records and produce proof. They gional centers and 33 district offices—I precedent. There are hundreds of indi- are not being required to produce the mean a tremendously complicated geo- viduals throughout Government who proof and records by accident, Mr. graphical organization that started in have been given similar kinds of pro- President. They are being asked to 1952—he is going to go from that to an tection in order to be able to do their produce the records and proof because organization that is along functional job. we wrote a law that said they had to do lines: Small business, individual busi- I urge colleagues, as they come down it. ness, large taxpayer and nonprofit; four and consider this, because it will be So one of the things we are trying to different functional categories. one of the complicated legal, constitu- get with this oversight board is some There is going to be a lot of per- tional issues, you have to walk your- balance and get to a point where both sonnel decisions to be made and a lot of self through three questions: the executive branch and the legisla- personnel changes that have to be No. 1, do you think this oversight tive branch can reach agreement on made. In addition, if he deploys the board will do the job? If you don’t sup- what we want the mission of the IRS to technology correctly, as we insist he port the oversight board, it almost be so they can make good investments do, and as the electronic filing section doesn’t matter what the composition in tax system modernization. of this title of this bill allows him to is.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4418 CONGRESSIONAL RECORD — SENATE May 6, 1998 No. 2, do you think you ought to have that is a policy decision that we have An excellent example of this oc- an employee representative on there to to make. We have to decide, Do you curred last year when the Internal Rev- be able to get the support needed to do want an employee representative on? I enue Service attempted to increase the tough personnel decisions that this say yes. Once you have the employee taxes through the regulatory process. Commissioner will have? Look seri- rep, we write the law so the individual In this instance, the IRS disqualified a ously at new authorities we are giving is able to do the job. That is what we taxpayer from being considered a lim- the Commissioner. They are almost un- are attempting to do with the language ited partner if they ‘‘participated in precedented. We are giving this Com- that the distinguished Senator from the partnership’s business for more missioner of the Internal Revenue Tennessee and the distinguished Sen- than 500 hours during the taxable Service, I think quite appropriately, ator from Alabama are proposing to year.’’ The effect of this redefinition new authorities to be able to hire, new strike. would have been to make these individ- authorities to be able to fire. I hope this amendment is defeated. I uals subject to a 2.9 percent Medicare The distinguished Senator from yield the floor. tax. President Clinton had included the Texas earlier indicated he was going to Mr. SHELBY. What is the pending identical provision in his universal offer an amendment adding to the list business? health care legislation in 1994. When of reasons that an employee can be The PRESIDING OFFICER (Mr. the administration’s plan failed, the fired. There are specific lists—I think FAIRCLOTH). The amendment proposed IRS attempted to subject limited part- it is five or six items—that if an em- by the Senator from Tennessee and the nerships to the same tax increase by ployee of the IRS does something, they Senator from Alabama. using its regulatory powers. can be fired for cause. You don’t have Mr. SHELBY. Mr. President, just for I believe the intent of the Founding to go through the normal personnel a few minutes I will also talk about the Fathers was to put the power to lay procedures. Just on the face of it, say if IRS reform legislation and a sugges- and collect taxes in the hands of the an employee does something like that, tion that I have that I think would im- elected Members of Congress and no they ought to be terminated. prove it. I am at this point in time well one else—not in the hands of the bu- The Commissioner has substantial aware that the pending business is an- reaucrats who are shielded from public new authority. They will need the full other amendment, so I will only speak accountability, but in the hands of participation and cooperation of the on this subject if I can. Congress, who is accountable to the employees of the IRS in order to be I think perhaps the most important American people. able to get it done. power given to Congress in the Con- The proposed Stealth Tax Prevention I come to the threshold question No. stitution is bestowed to Congress in ar- Act that I want to see become law 2 and say absolutely yes, we ought to ticle I, section 8, the power to tax. This would be particularly helpful in low- have an employee representative on authority is vested in Congress, as the ering the tax burden on small business, this board. If you answer that question President and Senate know, because as which suffers disproportionately from yes, you have to make certain that the elected representatives, Congress re- IRS regulations. I believe Americans laws are written so the individual can mains accountable to the public, and are paying a higher share of their in- do the job. when they determine tax policy, this come to the Federal Government cur- What we will have, unfortunately, is should be more so. rently than at any time since the end a debate about the conflict of interest Unfortunately, the Internal Revenue of World War II. Allowing bureaucrats stuff before we have done whether or Service effectively has the power to to increase taxes even further at their not the person ought to be on the raise taxes through the use of its inter- own discretion through the regulatory board. It is far better for us to take up pretive authority. Therefore, what I process, through interpretation of the the amendment that will be offered by want to talk to the Senate and my col- Tax Code, I believe is intolerable. some that we not have a Treasury em- leagues about this afternoon for a few I believe this legislation is right and ployee representative on the board at minutes is an amendment, which I am should be passed, and it is clearly in all. not offering now but I will in a future the spirit of the IRS reform legislation. If that is your position, if that time, which will build upon past legis- This type of legislation would help rein amendment is successful, we strike the lative initiatives that afforded protec- in the power of the Internal Revenue employees representative, the conflict tions to taxpayers from attempts by Service and would leave the tax policy of interest thing is irrelevant. But if the Internal Revenue Service to bypass where it belongs, to elected Members of we end up with an employee represent- Congress and raise taxes through the Congress, not unelected and not unac- ative on the board—to pass this amend- regulatory decrees. countable IRS bureaucrats. I strongly ment, which would make it impossible In 1996, Congress passed the Congres- urge my colleagues to get with me, to for that representative to do their job sional Review Act, which provides that join me in the future in an effort to —it seems to me to put the cart before when a major agency rule takes effect, join the National Federation of Inde- the horse and do something I think no Congress has 60 days to review it. Dur- pendent Business, NFIB, and the Na- Member wants to do, which is basically ing this time period, Congress has the tional Taxpayers Union, as well as a creating something that will not be option to pass what we call a dis- lot of my colleagues who would be sup- able to do the job that we wanted to approval resolution. The Stealth Tax porting this type of legislation. do. Prevention Act would expand the defi- The bottom line is that the stealth I hope Members will vote against the nition of a ‘‘major rule’’ to include any tax legislation that I have been talking Thompson-Sessions amendment. I hope IRS regulation which increases Federal about would improve accountability they will listen to the arguments that revenue. and it would put it where it belongs— will be offered in detail by many people For example, if the Office of Manage- in the hands of Congress and not bu- who have great experience with con- ment and Budget finds that the imple- reaucrats. I think it is something we flict of interest law. Listen to the argu- mentation and the enforcement of a have to consider and I believe we will ments of Senator LEVIN. Listen to the rule has resulted in an increase of Fed- consider in the future. I have talked to arguments of Senator GLENN. Listen to eral revenues over current practices for the chairman of the Finance Com- the arguments of those who understand revenues anticipated from the rule on mittee about this, as well as other how it is that we deal with conflicts of the date of the enactment of the stat- members of the Finance Committee, interest. We deal with them all the ute under which the rule is promul- and they seem to be very interested in time. gated, the rule will be found to be this. I am going to try to work with This language is in response to the major in scope. Therefore, the amend- them in the future. Office of Government Ethics concerns ment, or the legislation that I would I yield to the chairman. about this position. They, frankly, like to see us adopt, sooner rather than Mr. ROTH. Mr. President, I say to take the position they don’t want an later, would be to allow Congress to re- the distinguished Senator from Ala- employee representative on there view the regulation and to prevent bama that I appreciate the fact that he under any circumstances, no matter back-door tax increases on hard-work- is not raising it on this legislation be- what you do. Take that position, but ing Americans. fore us, because it is not relevant. But

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4419 I also sympathize very much with the abuse taxpayers than when the IRS no, that is not what Congress intended; problem he has identified. I, indeed, raises taxes through the back door, by this is what they intended. Then he would be happy to work with him be- the regulatory process, and then we changes it. We don’t have a process for cause I do not think it is appropriate think, how did they do this or why did reviewing that. This legislation will to legislate by regulation. I think that they do this? Why did we give them the give a process for that review. But we is what he seeks, and that is what I authority to do this? Yet, ultimately, will not find ourselves in a position of would be pleased to work with him on Mr. President, we are accountable to having to correct something that is in the future. the voters, as we should be. contrary to congressional intent, but Mr. SHELBY. Mr. President, I appre- I think this is relevant. I am not also with the idiotic situation that we ciate the chairman’s statement. I have going to offer it now in deference to somehow have to come up with revenue worked with him before. I just think it the chairman and the Senator from Ne- to offset a change of policy that we is very, very important for the Amer- braska. But I want to make it clear never intended in the first place. ican people that we, as Members of the that this is just the beginning of this So I applaud the Senator and thank U.S. Senate and House, should be the fight because this makes a lot of sense him for not bringing it up at this point. people who lay taxes, or reduce taxes, to the American people. I yield the floor. according to the Constitution. But that Mr. GRASSLEY addressed the Chair. Mr. SESSIONS addressed the Chair. is not what is happening. The Internal The PRESIDING OFFICER. The The PRESIDING OFFICER. The Revenue Service is doing it through Chair recognizes the distinguished Sen- Chair recognizes the distinguished Sen- the back door. We should do things ator from Iowa. ator from Alabama. through the front door because that is Mr. GRASSLEY. Mr. President, I Mr. SESSIONS. Mr. President, first, I the American way, and I think it is ac- would like to speak to the point that would like to say that I appreciate countable. I have worked with the dis- the Senator from Alabama just raised. very much Senator SHELBY’s sugges- tinguished Senator from Nebraska on That point would be one of agreement. tion for reform of the unilateral ability of IRS to increase taxes. I would like this for several years and got some of It would be to say that I have had the to ask my fellow Senator from Ala- this going at his suggestion. experience myself of having to get cor- I yield to the Senator from Nebraska. rective legislation through. People bama if he would allow me to be a co- Mr. KERREY. Mr. President, I agree would be surprised to know that a cer- sponsor of that. Mr. SHELBY. Will the Senator from with Senator ROTH. This is a very im- tain tax law that was in place legally portant matter and issue, and I pledge for a long period of time was changed Alabama yield to the other Senator my full cooperation to work with the by a faceless bureaucrat, who increased from Alabama? Mr. SESSIONS. Yes. distinguished Senator from Alabama as the revenue and taxed somebody in a Mr. SHELBY. I would be happy to do well. way where they hadn’t been taxed be- that. I think what we need to do in the I call to your attention, with the Na- fore. And then we have a situation next few weeks, working together with tional Taxpayer Advocate, I think, we where those of us who want to correct some of my colleagues like Senator are going to get pretty close to this what this faceless bureaucrat did find KERREY and others on the other side of issue. In addition, by organizing—and ourselves not only getting the bill the aisle, is to let our colleagues know the law requires it—the IRS along written, finding all of the cosponsors what this is and what it does. If we functional lines, we will now have that one needs, but also, then, when pass this legislation in the future, it is small business organized as a single you actually get to the point of offer- going to be another step toward ac- category. ing the amendment, you have to come countability for us with the American One of the things Mr. Rossotti has al- up with an offset because there is sup- people. I think it is very possible. I will ready indicated is that he is likely to posedly a cost, not from the original be glad to add the Senator on. take some of the secondary rec- legislation, but because some faceless Mr. SESSIONS. I thank the Senator ommendations that our Commission bureaucrat is reinterpreting a tax law, very much. made. We have large numbers of rel- which reinterpretation brings more Mr. President, I would like to first atively small businesses out there who revenue in; and then, if we want to go congratulate Senator ROTH and his expend a lot of money and don’t pay back to where Congress originally was, committee on their effort to reform any taxes at all. They have to comply we have to dig up revenue and have an the Internal Revenue Service. I think with the code. He believes there may be offset to correct something that Con- they have made great progress, and the some opportunity for us to signifi- gress never intended in the first place. bill is to be greatly praised, is long cantly relieve a number of individ- So you can see that what the Senator needed, and I am delighted to see where uals—millions, in his words—that from Alabama is trying to do is just to we are discussing this matter. might otherwise have to fill out a bring a little common sense to the I do, however, feel that it is impor- form. So I think what the Senator has Washington nonsense. I applaud him tant to join with Senator FRED THOMP- brought to our attention is a very im- for doing it and also applaud him for SON of Tennessee, who spoke earlier portant problem; it is taxation without not doing it on this bill. I commit my- this afternoon on his proposal to not representation. It is frustrating. I self to working with him. I would like waive applicable conflicts of interest think we are going to get more ac- to, at this point, ask him to see that I laws with regard to individuals who sit countability with this law, and we are am added as a cosponsor to the original on the IRS Oversight Board. I do not going to have vehicles through the tax- bill he put in, which has a number al- believe this is the appropriate thing to payer advocate to do the very thing the ready. do. I believe we need to deal with this Senator is talking about. I appreciate Mr. SHELBY. Will the Senator yield? forthrightly. It should not be allowed it, and I pledge my full cooperation to Mr. GRASSLEY. Yes. to happen. work with him on this. Mr. SHELBY. I would be glad to add Mr. President, I spent almost 15 Mr. SHELBY. Mr. President, I will you as a cosponsor. I believe we are years as a Federal prosecutor. I pros- wrap it up on this point at this time. I going to pick up a lot of Senators on ecuted criminal cases on a regular am certainly not going to wrap up this both sides of the aisle, I hope. basis. I personally tried judges and issue. I think this issue is just now be- Mr. GRASSLEY. Mr. President, we public officials for fraud and corrup- coming ventilated here and shared with are just talking about common sense. tion. My office did many of those cases. my colleagues here in the Senate. A lot In other words, Congress passes a law. It was an insidious thing as it oc- of us have known this for a long time. We want to tax at a certain level and a curred. But the IRS reform bill that Senator certain group of people. A lot of times We have crafted over the years a se- ROTH and Senator KERREY have been those laws have been in place for a long ries of laws that are designed in such a pushing here is about, among other period of time. Congressional intent way that those laws protect the public things, the agency overstepping its au- was followed for a long period of time. from conflicts of interest and other thority and, in a lot of instances, there And then there is somebody sitting in types of unhealthy relationships that are horror stories of abusing taxpayers. some bureaucracy—in this case, the would put that person in office in a po- But I can’t think of a worse way to Treasury Department—that says, oh, sition in which his total fidelity is to

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4420 CONGRESSIONAL RECORD — SENATE May 6, 1998 anything other than the government the communications are made with in- sure that what we are doing is con- which he represents. That is what we tent to influence. sistent with the highest possible stand- are looking for. Somewhere in the It makes it a crime to make certain ards of ethics and law in this nation. Book of Ecclesiastes the preacher said communications to an official of Gov- The Office of Government Ethics ‘‘A bribe corrupts the mind.’’ A conflict ernment on behalf of any other person took the extraordinary step on May 1st of interest corrupts the mind. The per- if they are made with the intent to in- of writing a letter dealing with this son is torn. You cannot serve two mas- fluence. This section is a dangerous special project; this very special thing. ters. You can only serve one master. A section for any board member who is This is what they said. member of a board of the oversight of an officer of the union. It was designed First of all, they said the criminal the Internal Revenue Service ought to really to deal with post-employment conflict of interest laws should not be have a clear mind with one motive, and communications. But in this instance viewed as impediments to good govern- that is to improve and enhance the ef- he would obviously be making commu- ment. What does that mean? Criminal fectiveness of that institution which is nications both ways. conflict of interest laws should not be fundamentally necessary. At least Title 18, section 208, is the general viewed as an impediment to good gov- under the present Tax Code it is nec- conflict of interest provision for the ernment. In other words, what they are essary. United States. It makes it a crime for saying is the criminal ethics laws are So I believe this is an important mat- a Federal employee to participate for good government. They are not try- ter. I would like to share with the ‘‘personally and substantially’’ in any ing to stop good government. They are Members of this body the Code sections way in a matter where he himself, his trying to stop conflicts of interest that of the law that would apparently be family, a partner or others have ‘‘a fi- lead people in the position that they violated and could potentially clearly nancial interest.’’ cannot effectively carry out their du- be violated by an appointment of the This individual is paid by the union. ties. kind suggested here; that is, a member It is in his financial interest to do the They go on to say—I am quoting di- of the Internal Revenue Service Union best bargaining he can, the most rectly—these laws ‘‘are there for a pur- on the oversight board. money and benefits he can for his pose and should not be waived for mere This is suggested in this fashion: It union members. Yet he is serving on convenience.’’ follows under the rubric of bribery, the offer side, the board, that is sup- Mr. President, I totally agree. I know graft, and conflict of interest in the posed to be protecting the public inter- it sounds like, well, we just have a United States Code. It is title 18 U.S. est. problem. This is just a technical thing. Code, section 203. It makes it a crime I would say, first of all, that I see We can just pass this law and exempt to seek himself or agree to receive any there is a real danger that this mem- this board member from it, and that compensation as an agent or attorney ber, if appointed as suggested, would in will be the only board member on the for a third party when a person is fact be in violation of any one or per- Commission exempt from the ethics working as an officer for the Federal haps all four of those criminal stat- law, the only one, but we will just do Government. utes. If any of these violations are that because, well, it is convenient. We We are talking about appointing a committed—and there are penalties of would like him to be on the Board, and member to the board representing the up to 1 year in jail for violation of we will just waive the ethics law. But Federal Government helping us to de- them, and if any of them were done you can’t do that and expect it to go velop an effective Internal Revenue willfully the penalties go up to 5 years away. There is a conflict of interest Service while at the same time receiv- in jail, and are a felony. What is will- that the law legitimately was set up to ing compensation as a union official in ful? It is knowingly and with intent to prohibit to make sure that we have an an organization that may well have a violate the law. I would say, first of all, uncorrupted individual on that board. conflict of interest with the Internal we have four potential violations of A member who does not have influ- Revenue Service. They are advocates. criminal law by this appointment. ences on them financially or otherwise There is nothing wrong with that. The Finance Committee to its credit that would cause them to do acts that Union members are advocates. Their recognized there was a problem. Well, are not in the public interest. I believe commission, their heart and soul is they should have. There is a problem. very sincerely that we have to deal committed to getting the maximum re- And it is not theoretical. It is very real with this issue and that it will not go turn for their members. It is not the because the member they want to put away. same interest as a member of the board on this board has a conflict of interest. We must not do this. It would be a should have, which is in the public in- They say, ‘‘Well, let’s just change downward slope, a retreat from high terest. You can’t serve two masters. this law. Let’s pass as part of our bill standards of ethics—actually, a retreat I suggest that is a potential violation a proposal to exempt them from it, and from basic ethics. This isn’t some gray of the law if this member were to be on just say it won’t apply to this nominee area; this is flatly prohibited by the board. It is not theoretical. We are to the board. And that would solve all present criminal law for which you can talking about real conflict. of our problems.’’ Well, I wish it were get 5 years in the slammer. U.S. attor- Section 205 of title 18 of the Criminal so simple that we could do that. You neys are prosecuting people who do Code makes it a crime for any Federal can call a cat a dog but it is still a cat. these kinds of things with these kinds employee to appear as an agent or at- You can say there is no conflict of in- of conflicts. To pass a law to say every- torney on behalf of anyone in a pro- terest but it is still there under these body else has to adhere to them except ceedings to which the United States is circumstances. That is what the law for one individual because he or she is a party. was passed for. special is a big mistake. In other words, you can’t have a Fed- I think we need to give some real I can see how people may have not eral employee of the Government ap- credit to the Office of Government Eth- thought it through. I hope all Members pearing in an action against the Gov- ics. of this body will give it most serious ernment. Frequently the union is con- Mr. President, I serve on the Senate thought. It would be a mistake for us testing with the Government. So now Ethics Committee. We hear complaints to blithely go along and think this we have a person on one side of the periodically. Many of them are not waiver of the ethics law is just a mere lawsuit supposedly having his respon- well founded at all. But we go over technicality and see it as somehow an sibilities solely to the best interest of them one by one. Staff people analyze impediment to good Government. As the public of the United States at the them. We read the Code and we see if the Government Ethics Office said, it is same time being paid to represent his we have a conflict of interest. If we do, not an impediment to good Govern- union members who may well be stand- we deal with that. A lot of Senators ment; it is good Government. And it is ing against what that interest is. have been severely damaged because of put there for a purpose and should not Title 18 of section 207 makes it a founded ethics complaints against be waived for mere inconvenience. crime to make certain communications them over the years. Mr. President, I certainly know that to an official of the Federal Govern- But I would just say to you that it is the members of this committee, the Fi- ment on behalf of any other person if important for this institution to make nance Committee, who worked so hard,

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4421 are determined to reform the Internal nization want real change at the IRS. laws. We are making this policy to Revenue Service. I know they want to The IRS employees care about where make this person an effective member do what they can. I know they want they work and how they serve the peo- of the IRS Oversight Board. the influence of the IRS’s members ple. They want the IRS to run smooth- I conclude by saying that the conflict who have insight into how this enter- ly and their customers to be happy of interest laws are designed to allevi- prise ought to be operated. They have with the service they receive. They are ate hidden conflicts of interest. Now, some good insight, and they have made caught up today in this culture of in- this employee representative has no some good, constructive comments to timidation, a culture that says, ‘‘We hidden agenda. We know who he works this legislation. But there are other don’t care anything about the tax- for. And guess what. The employee rep- ways, as the Government Ethics Office payers, we don’t care how we treat the resentative on the board works for an suggested, to allow them to have input. taxpayers,’’ whether as a taxpayer or organization that represents employ- There are other ways to allow them to just as an American citizen who is ees. Again, the issue is not waiver of be able to shape any kind of rules, reg- doing business with them. I believe laws. The issue is having an employee ulations or reforms that are made. they want to take pride in where they representative being able to serve, and There are ways to do this without giv- work and the actions of the Internal effectively serve, on the oversight ing up the fundamental principle that a Revenue Service. The employee rep- board. This, of course, is a back-door man or woman can only serve one mas- resentative will help ensure that the way, if this amendment were to be ter, not two, and should not be holding oversight board makes this happen. adopted, to get rid of the employee rep- public office with a clear conflict of in- For this reason, Senator KERREY and resentative. Or, if he wasn’t gotten rid terest. I included an employee representative of, it would be making him an ineffec- I thank the Chair. I urge my fellow on the IRS Oversight Board when we tive member of the oversight board, Senators to vote against this proposal. introduced the first IRS restructuring gutting the main intent that we have Mr. GRASSLEY addressed the Chair. bill last July, S. 1096. For this reason, of his inclusion on the board, because The PRESIDING OFFICER. The we offered the amendment that put the we think there can be a contribution, a Chair recognizes the distinguished Sen- employee representative back on the real contribution, made. ator from Iowa. oversight board during the Finance So, in my opinion, if my colleagues Mr. GRASSLEY. Mr. President, I find Committee debate because the chair- would accept my year’s work on this myself this afternoon speaking against man’s mark did not have this in it. issue, being a member of this IRS Re- a lot of my friends with whom I gen- Now, remember, the House of Rep- structuring Commission, I ask my col- erally agree most of the time, and so I resentatives passed their bill by a vote leagues to vote against the Thompson am somewhat chagrined that I have to of 426 to 4—426 to 4—and that bill in the amendment. After my work on the Na- oppose my good friend from Alabama House had an employee representative tional Commission on Restructuring, I and the position he has just taken as serving on the oversight board. We think, regarding the bill we have, and he spoke in favor of the Thompson have strong support for this principle. even a much stronger bill that we have amendment. I rise in opposition to it. If we are going to have an employee now because of the work of the Senator This amendment is not about conflict representative then on the oversight from Delaware on the legislation, im- of interest laws. That is not its intent. board, we need to let him do more than proving it very much as a result of the It is about having an employee rep- just serve the coffee while the meet- committee hearings, we need to move resentative serve on the oversight ings are going on, because if we do not forward. This would really cause prob- board. I believe very strongly that we have this language in the bill that the lems if this person is not able to serve must have the employee representative Thompson amendment wants to take on this board. on this oversight board. As you have out, he would not have the same power So I emphasize again, this was in the already heard Senator KERREY say, he that we give to other members of that House Ways and Means bill. It was ap- agrees with that. We both had the oversight board. Otherwise, we lose the proved by the House of Representatives honor of serving on this National Com- benefit of that expertise. Otherwise, we by 426 to 4, to have an employee rep- mission on the Restructuring of the lose the benefit of the enthusiasm of resentative on the board. IRS. We were the only two Senators to the organization and its representative I think all the arguments are very do so. I think our year’s experience to make real change at the Internal strong. I make no apologies for those there taught us something, and that is Revenue Service. Let me say, in short, arguments and would want to have this the value of having people who speak otherwise, we are just simply wasting amendment defeated, the Thompson for and work with the employees, other our time. This is a part-time advisory amendment. than in a management capacity, to board. Consequently, it is a good place I yield the floor. show their good intent, that they want to use his advice. The PRESIDING OFFICER. The Government to function in an efficient The bill before us, as drafted, sets up Chair recognizes the Senator from manner and to serve the customers additional requirements that the em- Delaware. well. ployee representative must meet. I Mr. ROTH. Mr. President, first, I That would be true of Rob Tobias, would like to read from the committee would like to say I regret I cannot who is the current President of the Na- report. agree, on this particular issue, with my tional Treasury Employees Union. He The employee representative is subject to distinguished friend from Iowa, for served with us on this Commission. I the same public financial disclosure rules as whom I have the greatest respect. We was very impressed with him and with a private life board member. In addition, the are, more often than not, on the same his work. With his hard work and sup- employee organization is required to provide side of an issue. But, because of the an annual financial report with the House port, the Commission, by a very strong Ways and Means Committee and the Senate overwhelming arguments, at least in majority—we probably would have had Finance Committee. Such report is required my judgment, to the contrary, I must a majority otherwise, but such a slim to include the compensation paid to the indi- rise in strong support of the amend- majority that I don’t feel we would be vidual employee by the employee organiza- ment offered by the Senators from Ten- here with such a strong piece of legisla- tion and membership dues collected by that nessee and Alabama. tion as we do now—issued a report that organization. This amendment would strike the calls for far-reaching reforms at the In addition, this person must have special waiver of all the criminal con- IRS. The employees organization and been confirmed by the Senate of the flict of interest laws that were nec- their representative contributed sub- United States before serving on the essary to accommodate having an IRS stantially to this report and to making IRS Oversight Board. These laws have employee representative on the IRS sure there were strong, substantive been waived for similar purposes be- oversight board. Let me say that what recommendations. fore. This is not new; it is not land- I say today in no way is in disrespect I believe that he or another employee mark. The point being made— that ev- to the individual who would probably representative will have the same ef- erybody should abide by the same be the employee representative, Mr. fect while serving on the IRS Oversight laws—albeit true, but remember, as Tobias. By all reports, he is a most Board. He and the members of his orga- Senator KERREY said, we make those dedicated, informed man. But, as I

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4422 CONGRESSIONAL RECORD — SENATE May 6, 1998 said, the problem is that this amend- being waived in each case for this Board trust includes imprisonment of up to 5 ment would strike the special waiver of Member is the one most fundamentally in years and penalties of up to $250,000. all the criminal conflict of interest conflict with his or her duties to the public. The severity of the penalties reflects On the other hand, we cannot recommend laws that were necessary to accommo- that the waivers be eliminated for the indi- the critical importance that these laws date having such a representative, and vidual appointed to such a position. That play in our Government. They serve to waiving all the conflict of interest laws elimination would leave this individual ex- protect the public’s trust in Govern- is bad policy. It establishes very bad tremely vulnerable to charges of criminal ment employees and the laws are de- precedent. conduct for carrying out many Oversight signed to prevent Government employ- When this issue was debated during Board actions or for carrying out his or her ees from taking actions that could the Finance Committee markup ses- private duties for the employee organization. jeopardize this public trust. sion, the Deputy Director of the Office The fact this vulnerability exists exposes the pervasiveness of the conflicts for an officer Let me give a few real-life examples of Government Ethics, the office that or employee of an employee organization to of what could happen if the conflict of was set up and created to ensure that serve on the Oversight Board. interest laws are waived for the IRS conflicts of interest do not arise in the Rather, we recommend the elimination of employee representative. Just suppose Government, testified that she was not the position on the Board that creates such that a representative of the IRS em- aware of any case where all the crimi- inherent conflicts. The elimination of the ployees union serves on the oversight nal conflict of interest laws have been position could be coupled with a requirement board and the union files a lawsuit that the Board consult with employee orga- statutorily waived for a single person. against the oversight board. If the con- Last Friday, the Director of the Of- nizations. While we think a reasonable Board would consult without that requirement, re- flict of interest laws are waived, the fice of Government Ethics, in identical quiring consultation might provide some as- union representative could work with letters to the majority leader, the mi- surance to the various employee organiza- the union in preparing the lawsuit and nority leader, Senator MOYNIHAN, the tions that they will be heard. at the same time—at the same time— ranking member, and myself, said that The criminal conflict of interest laws work with the oversight board in de- should not be viewed as impediments to good waiving the conflict of interest laws for fending against the lawsuit. Taxpayers one board member, ‘‘is antithetical to Government. They are there for a purpose and should not be waived for mere conven- would be outraged by this conduct, and sound Government ethics policy and ience. Some may point out that certain pro- rightfully so. thus to sound Government. Such visions of these laws are waived by agencies Just suppose the union is asked to across-the-board statutory waivers for quite frequently. That is true. Some of the make a formal presentation to the someone other than a mere advisor is laws anticipate circumstances where a re- oversight board. The union representa- unprecedented and, we believe, inadvis- striction could be waived and set forth the tive can make the formal presentation able.’’ standards that must be met to issue waivers. and then participate in the oversight Agencies can and do issue such waivers, but Let me repeat, this statement that it board’s deliberations with respect to is inadvisable comes from the Office of the waivers must meet the tests set forth in the statutes. For those conflicts laws that do the presentation. What message does Government Ethics. provide for waivers (not all do), we believe this send to the taxpayer? What does I ask unanimous consent a copy of that it would be extremely difficult for a rea- this do to the public trust in Govern- this letter be printed in the RECORD. sonable person to determine that the inter- ment employees and in what Congress There being no objection, the letter ests this individual Board member will un- is trying to do to improve the IRS? was ordered to be printed in the doubtedly have through his or her affiliation Let me quote again from the letter RECORD, as follows: with the organization could meet those waiv- by the Office of Government Ethics: er tests. U.S. OFFICE OF The criminal conflict of interest laws GOVERNMENT ETHICS, In order to meet our recommendation, we believe the provisions of Subtitle B, sec. should not be viewed as impediments to good Washington, DC, May 1, 1998. Government. They are there for a purpose Hon. TRENT LOTT, 1101(a) should be amended to eliminate pro- posed sections 7802(b)(1)(D), (b)(3)(A)(ii) and and should not be waived for mere conven- Majority Leader, ience. U.S. Senate, Washington, DC. (b)(3)(D). All other references to an indi- DEAR MR. LEADER: This Office has reviewed vidual appointed under section 7802(b)(1)(D) Mr. President, the criminal conflict H.R. 2676, the Internal Revenue Service Re- should be removed and wherever a number of of interest laws should not and must structuring and Reform Act of 1998, as it has members of the board is indicated (such as a not be waived for a single individual. been reported by the Finance Committee Board composed of nine members or five To do so would seriously erode the sa- and, we understand, is soon to be taken up members for a quorum) that number should be altered to reflect the elimination of this cred trust that the public has placed in by the Senate. At the request of both the its employees to do what is in the Na- majority and minority, we provided tech- position. nical assistance to the Finance Committee We appreciate the opportunity to express tion’s best interests. For these reasons, staff with regard to drafting the language of our concerns and our recommendations. I strongly support this amendment and provisions setting forth the ethical consider- These are the views of the Office of Govern- I urge my colleagues to do the same. ations for the Members of the Internal Rev- ment Ethics and not necessarily those of the I yield the floor. enue Service Oversight Board. We believe Administration. We are available to answer Mr. KERREY addressed the Chair. those provisions are written in a clear and any questions you or any other Member of The PRESIDING OFFICER. The technically correct manner. the Senate may have with regard to this let- ter or the conflict of interest laws. We are Chair recognizes the distinguished Sen- However, one provision of the bill, the pro- ator from Nebraska. posed 26 U.S.C. § 7802(b)(3)(D), provides for sending identical letters to Senators waivers of applicable conflict of interest Daschle, Roth and Moynihan. Mr. KERREY. Mr. President, again, I laws for one Member of that Board. We be- Sincerely, say to colleagues there is a three-part lieve that this provision is antithetical to STEPHEN D. POTTS, test that one has to go through in this sound Government ethics policy and thus to Director. regard: A, do you want an oversight sound Government. Such across-the-board Mr. ROTH. Senators note impor- board; B, who do you want on the statutory waivers for someone other than a tantly, I think, how we are a nation of board; and, C, how are you going to mere advisor is unprecedented and, we be- laws and we are, indeed, a nation of deal with apparent conflicts of inter- lieve, inadvisable. laws. When it comes to Government We understand and agree that the employ- est? ees of the Internal Revenue Service should service, perhaps the most important The conflict of interest issue is a have an opportunity to be heard in any deci- set of laws is the criminal conflict of very serious issue and, indeed, our sions that may affect them. As we stated in interest laws. Many of these laws trace committee, in order to confirm Mr. a letter to the Finance Committee, there are their origins back to the Civil War era. Rossotti, had to deal with that. We standard ways of allowing input from inter- They were enacted in the 1860s in re- wrote an agreement, a letter, I believe, ested parties without allowing the interested sponse to misconduct in the procure- of understanding between Mr. Rossotti, party to be the actual decision-maker in a ment process. These laws embodied the a private sector individual with signifi- Governmental matter. It is the latter role principle that a Government servant, cant private sector interests who was that is fundamentally at odds with the con- cept that Government decisions should be even a part-time servant, has an over- willing to come in and serve his coun- made by those who are acting for the public riding responsibility to serve the best try in the Government. interest and not those acting for a private interests of the American public. The I talk to colleagues all the time interest. The one private interest that is punishment for violating this public about one of the problems we have in

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4423 Government today is it is getting hard- Lastly, I will say if this individual is Let me repeat this, because there is er and harder to get anybody to serve. guilty of a conflict of interest, there an inference in some of the statements Why? Because there is a perception will be charges filed against him or her down here that somehow we are that as soon as you come in and work and, indeed, every single member of waiving all conflict of interest rules. for the Government that somehow you this board is going to have to file an Not true. This individual is going to be are going to be the crook. annual report indicating what their fi- subject to the same ethical conduct I would be real careful with some of nancial holdings are in order to avoid a rules as private-life board members. the rhetoric on this particular issue. conflict of interest. However, the bill modifies the otherwise We made an exception with Mr. Again, we all understand it is getting applicable ethical conduct rules so that they Rossotti as a consequence and concerns increasingly difficult to get people to do not preclude the employee representative about conflict of interest, and we serve because of the invasive nature of from carrying out his or her duties as a didn’t ask the Office of Government the examination. Talk to a friend of Board member and his or her duties with re- Ethics to comment on him, but we did yours who has had an FBI background spect to the employee organization. on this one because many in the com- investigation. Gosh, they are out there That is all we are doing. We say there mittee don’t like this idea of having an talking to people you knew in the is an overriding interest. We have to employee representative on the board, fourth grade. You wouldn’t want to make sure the employee can carry out nor does Government Ethics. talk to people I knew in the fourth their job, so we provide specifically Let me talk about this idea of con- grade to find out whether I am going to language in here that enables them to flict of interest. According to the Of- be able to serve on some board or com- do it. Otherwise, why put them on the fice of Government Ethics, at least 609 mission. board? exemptions under section 208(d)(1) were Let me just list for colleagues who In particular, the employee representative granted in 1997. Why? It is very impor- are worried about this conflict of inter- is not prohibited from (1) representing the tant to understand. Why did we grant est—we decided there is an overriding interests of the employee organization be- an exemption? The answer is because interest to have an employee rep- fore the Federal Government; (2), acting on a we have an interest. There is an impor- Board matter because the employee organi- resentative on there as a consequence zation has a financial interest in the matter. tant interest involved here, something of the tremendous and traumatic that we want to do. So we find our- changes that are going to occur over They are precluded from conflicts selves saying the interest is not so sub- the next couple of years as the new au- dealing with procurements. They are stantial as to be deemed likely to af- thorities of this Commissioner are used precluded from taking bribes. They are fect the integrity of the services which to reorganization and restructure the precluded from all the other things a government may expect from such of- IRS. that other board members are pre- ficer or employee. That is the standard In addition, this representative is cluded from doing. All the rest of the we use. going to be required to have full, pub- things that all the board members are There were 609 exemptions granted lic, financial disclosure by the em- precluded from doing, this individual because we have an interest in making ployee organization represented. All will be as well. Indeed, in the footnote, certain that something gets done. That members of this oversight board will be it says: is what we have here. One of the worst required to do that. In addition, the Certain limitations to this exception to excuses—I used to be in business before employee organization is required to the otherwise applicable ethical rules would apply. I got into politics. One of the reasons I file detailed financial information with got into politics is I got worn out lis- the House Ways and Means Committee The rules pertaining to bribery would tening to people say, ‘‘I know what you and the Senate Finance Committee. continue to apply. In addition, the rep- are asking for is right, but, gosh, if I The information would include mem- resentative would be acting on a mat- have to do it for you, then I have to do bership dues and compensation of all ter in which he or she has a financial it for everybody.’’ employees. interest. There is nothing more frustrating In addition, it requires the employee If some U.S. attorney, some pros- than to have somebody say, ‘‘I don’t representative to be subject to all the ecutor wants to bring charges against want to set a dangerous precedent conflict of interest statutes applicable any member of this board for violating here.’’ to special Government employees, ex- conflict of interest statutes, they are We need to decide what is right. Is it cept to the extent they apply to the going to be able to do it. Everybody in the Nation’s interest in an effort to employee organization. who has asked, whether it is by this restructure the IRS that is going to re- Mr. President, as Members no doubt President or future Presidents, ‘‘Gee, quire significant and, I argue, trau- know, we have a bill and a thing called Mr. and Mrs. Jones, would you be will- matic personnel decisions, to have a a report. It says, ‘‘The Internal Rev- ing to serve on this board?’’ They un- representative of the Treasury employ- enue Service Restructuring and Reform derstand what is at stake. They under- ees’ association on there? They rep- Act of 1998, April 22, 1998.—Ordered to stand the nature of American politics resent 95 percent of over 100,000 em- be printed; Mr. ROTH, from the Com- today. They understand if you walk ployees. And we answered yes. The mittee on Finance, submitted the fol- into the arena willing to serve your House answered yes. The Restructuring lowing Report.’’ country, you may find yourself saying, Commission answered yes, because This report describes the rationales ‘‘God, I wish I never said yes. All of a there is an interest that we have. and reasons for doing all these things. sudden I am more miserable than I Do we waive all conflict of interest Let me read to colleagues who are won- thought I ever would be, because some- requirements? Members should remem- dering about this thing and really body has an ax to grind or grudge to ber, every member of this board has to whether or not you want an employee fulfill is going after me all of a sud- be recommended by the President and representative on this board. As I said, den.’’ confirmed by the Senate. We all know if you do, you have to give that indi- We have made a decision that we around here, you can file a hold on vidual the authority and power to be think as a result of the tremendous de- anybody for any reason you want. If able to do something, and we have cisions that are going to have to be there is a conflict of interest, file a made a judgment as a consequence of made by the Commission to restruc- hold. That individual is likely never to that overriding interest that we are ture an organization that has 100,000 get confirmed. In addition, for cause going to write language in here that human beings—these are family people; this individual can be removed at any deals with apparent conflict. It doesn’t these are people who have good jobs time. The President can remove the in- waive all other conflicts, as I have just and are trying to get the job done. All dividual from the board as a con- tried to address. But even the report they are doing is trying to execute our sequence of something they see they does that. Let me read it to you: law. don’t like, something they see they In general, the bill provides that the em- One of the most amusing things down view as a perception of a conflict of in- ployee representative or Board member is here is to hear people talk about the terest, let alone a real conflict of inter- subject to the same ethical conduct rules as IRS as if they think it is a Sears and est. private-life Board members. Roebuck or some private organization.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4424 CONGRESSIONAL RECORD — SENATE May 6, 1998 It is like the kiss of the Spider Woman. Again, what Mr. Rossotti got was a United States. I hope that is unprece- We are the creator of the IRS. We write specific agency waiver under section dented. And my complaint, I say to the the laws here. 208. To get a specific agency waiver chairman, just simply is this—to say In response to the OGE’s concerns, under section 208, the employee must that I understand what the Senators we put language in here, and even OGE disclose the situation which gives rise have been trying to do. I understand says we have adequately taken care of to the conflict, and the agency need their good intent. But I think we are it. They just don’t want an employee only to determine that the conflict— confusing ourselves with the law of the representative on there at all, no mat- and I quote—‘‘is not so substantial to United States. This is a very bad thing. ter what you do with the law. No mat- affect the integrity of the services It is a very bad policy. It should not ter what you do with the language of which the Government may expect happen. And we need to vote on it. I ap- the law, they are going to take the po- from the employee.’’ preciate the chairman yielding. sition that an employee representative The problem with the IRS employee Mr. KERREY. Mr. President, I don’t shouldn’t be on there. representative is that the conflicts are know on what basis the distinguished Fine, let them take that decision. We so substantial and pervasive that the Senator from Delaware answers the made the decision we want that em- representative would almost never question that, yes, it is like giving an ployee representative on there, and qualify for a waiver. And that is not exemption to bribery law. In our own once we made that decision, we have to my conclusion, that is the conclusion report, we say the rules related to brib- make certain we deal in a reasonable of the Office of Government Ethics. ery would continue to apply. I mean, way so that with the law, that indi- Quoting from their letter dated March that is a red herring, raising the issue vidual can do what we have asked them 27, 1998, the director wrote: of bribery. Look, I feel like I am argu- to do. While section 208 does contain a waiver ing the red queen here. I have great respect for the Senator provision, it applies only where the financial We made a decision as a consequence from Alabama and the Senator from interest involved is ‘‘not so substantial’’ as of an overriding interest that we want Tennessee and, obviously, the distin- to be deemed likely to affect an employee’s a Treasury employee representative on guished chairman of our committee. I service. We believe that it would be almost this board. Why? What is the interest? hope this amendment will be rejected. impossible for an officer of a union to legiti- Do you want to get the restructuring I ask if the chairman—we have had mately meet the test set forth in the statute done or not? No? You are opposed to it? because of his own and the union’s financial two votes today, and we have, I think, interest that would be affected by the mat- Fine. Say no. But our Commission somewhere in the neighborhood of 50 ters before the Board. heard from people, both in the private amendments that we are likely to deal The director repeated this point in sector and the public sector, that have with. The majority leader indicated he his letter dated May 1, 1998, saying: done this sort of thing. They said, would like to wrap this up tomorrow ‘‘Folks, if you want to get the job For those conflicts laws that do provide for night. I am wondering if we can get a waivers (not all do), we believe that it would done’’—understand we’re talking about time agreement. We have a couple oth- be extremely difficult for a reasonable per- traumatic changes in how people work. ers that are fairly contentious that it son to determine that the interests this indi- You can imagine, we would want a Sen- seems to me we need to get down here. vidual Board Member will undoubtedly have ate representative on a board that was I would hazard the guess that noth- through his or her affiliation with the orga- going to be restructuring this place. Do ing I have just said is going to persuade nization could meet those waiver tests. you think anybody would say, ‘‘Gee, anybody one way or the other. This is The quoted language also raises a we’ve got a conflict. We can’t sit on a one where everybody has pretty well second important point, which is that board that might reduce the number of made their minds up. Maybe they will some of the conflict of interest laws do people here from 100 to 80″? I don’t be persuaded because of the eloquence not provide for waivers at all. think so. I think one of us would want and the logical manner of the chair- Mr. President, the bottom line is to be on that board. And we would man, but I think this is one where peo- this: A statutory waiver of all the write to the Office of Government Eth- ple have made up their minds. So let us criminal conflict of interest laws for ics and say, ‘‘To heck with you. We’ll insert our statements in the RECORD one person is simply wrong, it is very figure out a way to get it done.’’ and go to a rollcall vote so we can get bad policy, and it establishes a dan- That is what we are talking about to the final passage of the bill, as the gerous precedent. here. The employee representative will majority leader wants to, by tomorrow Mr. SESSIONS addressed the Chair. enable us to get the job done. We have night. The PRESIDING OFFICER. The Sen- to have a substantial reduction in Mr. ROTH addressed the Chair. ator from Alabama. forces as a consequence of this restruc- The PRESIDING OFFICER (Mr. Mr. SESSIONS. Will the Senator turing. It is going to be traumatic. It is ABRAHAM). The Senator from Delaware. yield for a question? going to be difficult. And over and over Mr. ROTH. Let me say, on this ques- Mr. ROTH. Yes. I will be happy to. I have said we heard from both public tion of completion of consideration of Mr. SESSIONS. I say to the chair- and private sector people: Get some- this legislation, I strongly agree that man, do you see what we are doing body who’s going to have to sell this we want to move as expeditiously as here, as a matter of principle, any dif- thing on this board. possible. It is my intent that we will ferent than if this body were to pass a So now you are left with the ques- complete the legislation tomorrow, law to exempt an individual from the tion, how do I do that? Obviously, they staying as late as may be necessary. bribery laws? still represent the employee’s union. Mr. President, I would like to re- Mr. KERREY. I hope the answer is Obviously, they still have a job respon- spond to some of the earlier comments no, for gosh sakes. We understand what sibility out there in some fashion. made on the granting of waivers to the the nature of bribery is. Well, we have to deal with that specific conflict of interest laws. I would like Mr. ROTH. Yes. A bribery law is part conflict. It is not a carte blanche, to point out that the waiver granted of the criminal code. I would not ex- broad-based waiver that includes such Mr. Rossotti was made by the same Of- empt it. things as bribery. Come on. fice of Ethics that made a very persua- Mr. SESSIONS. This is a criminal If you do not want a Treasury rep- sive argument here that we should not provision. We have been using the word resentative on there, don’t put him on waive the criminal conflicts of interest ‘‘ethics,’’ but it is really a criminal there. If you think the law is going to as has been done under the legislation. provision, isn’t that right, Mr. Chair- produce a conflict, well then, file a Let me point out that there is a man? complaint, and go down to the Govern- major difference between receiving a Mr. ROTH. That is correct. ment Ethics Office and say this indi- specific agency waiver under section Mr. SESSIONS. Criminal law of the vidual has a conflict. Any citizen is 208 of the ethics law, which is what the United States. And I can see, therefore, going to have the opportunity to do Senator was referring to, and a whole- why the Ethics Committee would sug- that. sale statutory waiver of all the conflict gest it was unprecedented that the U.S. But I caution Members. That is why of interest laws, which is what is con- Congress would pass a law to exempt we are having a tough time getting templated in the IRS bill. someone from the criminal law of the anybody to serve. We go through this

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4425 nominating process all the time around lieved that would help restructuring mind my colleagues, when this bill here, and we find ourselves with friends work. passed the House 426–4, there were no saying, ‘‘My gosh, I don’t want to serve Why? Because so many of the prob- restrictions; there was no waiver provi- in that capacity. Look at all the things lems that we have with the IRS, most sion in the bill. They just said, OK, I’ve got to go through in order to be a of the problems that were documented have an employee. Well, we have im- public servant today.’’ at the Finance Committee hearings, proved the bill by rewriting this provi- Mr. Rossotti is a very good case in are employee problems—that is, rogue sion. point—a very good case in point. A employees, employees who were cov- I remind my colleagues, all the con- strict interpretation of the ethics rules ering up, employees doing this or that. flict of interest statutes apply to the would have caused us to say, ‘‘Mr. Also problems with managers—some of employee representative, except for the Rossotti, I understand that you are them were doing their job, some were very narrowly tailored situation where willing to say yes to the President, but not. conflicts arise because of his status as we have to respectfully say no. We are Obviously, an employee who is on the employee representative. That is, be- just not going to do it. We’re not going Board will be able to tell the Board cause the employees he represents to allow you. You have all this private what is going on, what is not going on, work for the IRS and he or she is com- sector experience, all this management what the views of the employees are, pensated by the employee organization. experience, but it’s a conflict. You’ve and so forth. Otherwise, all conflict of interest stat- got ownership of stock in a company Now some suggest that the Board utes apply. that does business with the IRS, there- should just consult with employees. The comparison was raised about fore, you’re disqualified.’’ That will not work. You need some- these waivers being like waiving viola- That is what we are dealing with body there on the Oversight Board who tions for bribery, a criminal offense. Of here. The Commissioner of the IRS has will be able to not only report to the course, bribery is a criminal offense. a company that does business with the employees what is going on, but be able That is irrelevant. Murder is a criminal IRS. Now, can we deal with that? The to send back to employees what board offense too. There are all kinds of answer is absolutely yes, because it is policy is if we are going to get restruc- criminal offenses in our criminal law. a compelling interest to get it done. turing to work. That is totally irrelevant to what we Likewise, there is a compelling inter- We need teamwork here. We don’t are talking about here. est as a result of the traumatic change. need an adversarial relationship. We The narrow, technical question here I ask any Member here, again, if are not talking about Board versus em- is: Are the provisions and the safe- there was a board out there that was ployees. We are talking about a Board guards that are written into this stat- going to make a decision that could re- which will make restructuring work. ute, in the committee report, sufficient duce in force the number of people in Just think about it. An employee on to make sure that the employee rep- the Senate from 100 to 80, would we the Board will help make this work. resentative does a good job and rep- say, ‘‘Well, we don’t need to have a rep- If you want an employee, you want a resents the public interest? Of course, resentative on there because we have a good employee; right? You want a good that assumes you want an employee on conflict’’? I don’t think so. representative on the Board. How do the Board in the first place. We asked to be on the board, and we you make sure you get a good, solid Frankly, I do believe that most of deal with the Office of Government employee on the Board? First, you those who are arguing to remove the Ethics, and we figure out a way to have the President appoint the em- waiver are really arguing to remove make certain that conflict is narrowly ployee. That is the what the bill pro- the employee. It is a back-door way to drawn, because of the overriding inter- vides. Obviously, the President will ap- get the employee off the Board. That is est of the employee representative on point somebody he or she thinks is a what is going on here. That is what the the board who will make these deci- person who will do a very good job be- argument is really all about. It is just sions. cause it is in his interest to make IRS a back-door way to accomplish an ob- If you don’t want the board, fine; I restructuring work. jective instead of dealing with it understand that. The Senator from What is another check? Confirmation frontally, instead of saying, ‘‘We don’t Texas is skeptical about the board. by the Senate. I say to my colleagues, want an employee representative on Skepticism in many ways is deserved. if you don’t like the employee rep- the Board.’’ You never know if the board will be resentative that the President nomi- I feel very strongly that if we want great or not. I think it will be great. If nates to the Board, you can vote this restructuring Board to work, it you don’t want an employee represent- against him or her. During the con- makes sense to have an employee rep- ative, fine; say so. But please don’t get firmation process, you have an oppor- resentative on it. There are lots of down here and say that we are doing tunity to check into the background of checks to make sure this employee is something comparable to waiving the this appointee. You can check to see performing public service instead of bribery statute. That is not what we whether this is a good or bad person. some private interest. are doing. That is a real good check which will The amendment before the Senate, if We are going to have a very, very dif- enable you to get a sense whether this it passes, will make it very, very dif- ficult time if this degenerates into a is a person who has conflicts or who ficult for any employee to serve on the debate about loosening up our ethics will be a public servant—who will be Board. I don’t think that is what we law to allow all kinds of criminal con- narrowly representing his or her pri- want to do. It is not good for the coun- duct. We are not doing that. It is a nar- vate interests or his or her organiza- try. rowly drawn exception to enable the tion. You can get a sense of these mat- The PRESIDING OFFICER. The Sen- individual to do a job we want the indi- ters through the confirmation hear- ator from Tennessee. vidual to do. ings. Mr. THOMPSON. It seems the criti- Mr. BAUCUS. Essentially, the In addition to that, the President can cism of the amendment, first of all, is amendment offered by the Senator remove any Board member, including that there is no conflict anyway with from Tennessee is an amendment to the employee representative, at will— regard to these employees serving on take an employee off the board. That is that is, without cause, at will. this board. Of course, if that is the the point. The real question we have to Finally, the employee representative case, there was no reason for the ex- ask ourselves is: Do we want this re- is subject to the same restrictions as emption. So by having the exemption structuring to work or not? We create the private life Board members; exam- in there, it is an open admission there a Board, give the Board certain powers, ples are the disclosure requirements is an inherent and obvious conflict of and the Restructuring Commission, led and the 1-year restriction after service interest. by Senator GRASSLEY from Iowa and on the board. The question is whether we want to Senator KERREY of Nebraska, con- Now, the main point here is: If you do something about it. Do we want to cluded there should be among board are going to have an employee on the single out this particular individual members an employee representative. Board, how do you make sure that and say, ‘‘With regard to you—nobody That was their conclusion. They be- there are no conflicts of interest? I re- else, but with regard to you—these

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4426 CONGRESSIONAL RECORD — SENATE May 6, 1998 conflict of interest provisions will not or if they are appearing as an agent on have not exempted this individual from apply; we don’t care if you have a clear behalf of anybody else who has a mat- all other conflicts of interest—only the and obvious conflict of interest’’? ter before the board, or if they are conflict that deals with the fact that Secondly, it is said that this is very, making communications with intent to he works for the IRS. That is what we very narrow as far as the exemption is influence when they are on the payroll are trying to deal with here. If you concerned, but the bill, as reported, ex- of somebody else, this basically has to have some specific ways you want to empts a union representative from four do with whether or not it is a good idea deal with that so you can get the job key ethic laws when the representative to put somebody on the board to make done, we can do it. To stand out here is acting on behalf of his or her union. decisions with regard to themselves and say, gee, we are making an excep- Those four laws are a part of chapter and their fellow employees, who they tion, as if that is remarkable, yes, we 11, title 18, United States Code, enti- represent. Certainly, they would have are and we are trying to deal with an tled ‘‘Bribery, Graft, and Conflicts of the ability to give their input in lots of exceptional circumstance, as we did Interest.’’ different ways. with Mr. Rossotti in the first place. What are those provisions that we But as far as decisions are concerned, So, again, I say to colleagues that are exempting here? Generally speak- we have seen the problems that we there is a threshold decision here. Do ing, title 18, section 203, makes it a have had with regard to IRS employ- you want an IRS representative on the crime to ‘‘demand, seek, receive, ac- ees. Do we think we should place a rep- board at all? If you do, you have to cept, or agree to receive or accept’’ any resentative of the IRS employees on deal with the concerns OGE has raised. compensation as an agent or attorney this board to make decisions as to That is what we have done. for a third party when a person is what to do with the people with the Mr. THOMPSON. Mr. President, I working as an officer or employee of problem? Certainly they should be refer to the position of the Office of the Federal Government. heard, but should they be on the board? Government Ethics on this. They have That is one of the things we would be Number one, OK, put them on the considered this matter and wrote to exempting this employee from. board; number two, should we exempt the minority leader. One provision of The other section, section 205 of title them from all of the ethical rules, or the bill provides for waivers of applica- 18, which is the criminal title, makes it these four particular ethical conflict of ble conflict of interest laws for one a crime for any Federal employee to interest provisions? I think we should member of that board. I am quoting appear as an agent or attorney on be- not. now: half of anyone in a proceeding to which I yield the floor. We believe that this provision is antithet- the United States is a party. Mr. KERREY. Mr. President, first of ical to sound Government ethics policy and So that is the second thing we would all, let me once again say that we thus to sound Government. Such across-the- be exempting this particular member make exceptions in order to accom- board statutory waivers for someone other from. plish something that we believe is im- than a mere advisor is unprecedented and, Thirdly, section 207, makes it a crime portant to accomplish. We accommo- we believe, inadvisable. to make certain communications to an date the exception in order to stay So the comparisons to Mr. Rossotti, official of the Federal Government on within the guidelines of the Office of who formerly had a position in the pri- behalf of any other person if the com- Government Ethics. We did that for vate sector, are inapplicable. As far as munications are made ‘‘with the intent Mr. Rossotti. He would not be the com- this body is concerned, we spent a to influence.’’ missioner of the IRS if we took a strict great deal of time answering to per- This is the third exemption that interpretation of the conflict of inter- ceived conflict of interest situations. I would apply. est law. We just would not do it. He doubt if we would ever be in a situation Lastly, section 208, which is a general would be disqualified, as would any- of exempting ourselves from any of conflict-of-interest provision which body with any real private sector inter- those considerations here. makes it a crime for a Federal em- est or any real private sector experi- So this is a very narrowly tailored ployee to participate ‘‘personally and ence. provision. I understand the sentiment substantially’’ in any way in a matter It is ridiculous, it seems to me, to of having some input, having as broad where he, himself, his family, a part- suggest that we never make excep- an input as possible. Hopefully, there ner, or certain others have ‘‘a financial tions. This is an exceptional case. We would be a way to have that kind of interest.’’ make them all the time. We measure it input from the employees on perhaps a So, one just has to make a decision carefully, and we take care to make less formalbasis. But there is an over- as to whether or not you feel that this certain that the other applicable parts riding issue here, Mr. President. I don’t particular employee on this particular of the conflict of interest law are still think we can willy-nilly say that any board—whether or not you feel the em- enforced. That is what we have done time we want to make an exception to ployee ought to be on the board or not; here. The Senator from Tennessee is the ethics rules because we want to get we are not taking them off the board quite right when he says, gee, you are the thing done. We can say that in al- by this amendment; presumably, there making an exception of this individual. most every situation. are some things that this member Yes, we are. Why? He is the only em- So I must agree with the ethics letter could decide that would not present a ployee representative. If there were 7 that has been made part of this conflict of interest—but you simply employee representatives on the board, RECORD, which says it is unprecedented have to decide whether or not you want we would be doing the same thing for and antithetical to good Government to take this particular employee and everybody. That is what is going on. ethics policy and therefore to good treat him or her differently than any- We have one representative because Government. body else in the Government. This is there are going to be traumatic I yield the floor. the sort of thing that we have spent changes in the IRS as a result of new Mr. KERREY. Mr. President, I ask substantial time in Governmental Af- authorities we are granting the com- unanimous consent that the amend- fairs on with regard to the ethics provi- missioner in title I. Look at the new ment be temporarily laid aside so we sions and their applicability to em- authorities we are granting. can deal with an amendment to be of- ployees. I draw a parallel to this body. If we fered by the Senators from Wisconsin, I do not think it would be a good pol- were granting some board authority to Mr. KOHL and Mr. FEINGOLD, who have icy to have this exemption. As I say, if make reductions around here, we would an amendment that both sides have there is no particular conflict with re- want to be on that board. We would agreed to. gard to any particular matter that is want to participate in that decision. The PRESIDING OFFICER. Is there before the board, all this is irrelevant And somebody would say we have a objection? anyway. There is no need for the ex- conflict, but we would figure out a way Mr. SESSIONS. I object, briefly. I emption anyway. But if, in fact, they to deal with that, rest assured, if that wanted to clarify something. are on the board and they are seeking were the case. That is what we have The PRESIDING OFFICER. Objec- compensation from a third party while done here. We have not exempted this tion is heard. The Senator from Ne- working for the Federal Government, individual. Just look at the statute. We braska is recognized.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4427 Mr. KERREY. Mr. President, I ask H.R. 2676, the House IRS reform bill financial disclosure information with unanimous consent that the Senator that passed that body by a vote of 426– the Senate Finance and House Ways from New York be able to speak as in 4. and Means Committees. morning business. The Senate Finance Committee’s Will receive a waiver of conflict of in- The PRESIDING OFFICER. Is there version of the IRS bill, which we are terest laws along the lines of those objection? now considering; and granted in over 1000 cases a year, where Mr. SESSIONS. I object. I would like The recommendation of the Adminis- the public benefit of the individual’s to have 2 minutes. tration. participation in government decision- The PRESIDING OFFICER. Has the That an employee representative has making outweighs the potential benefit Senator from Nebraska yielded the been deemed an essential part of the arising out of that participation. floor? proposed oversight board in par- In short, Mr. President, the union The Senator from Alabama—— ticular—and IRS reform in general— representative will face greater scru- Mr. D’AMATO. Mr. President, I have should not be surprising. tiny than any other member of the never objected to a person going for- The IRS is an enormous agency of Board; such scrutiny will ensure that ward for a minute or 2 minutes, but over 100,000 employees. The IRS reform this representative will discharge his there is a way to try to accomplish bill we are now considering gives the or her duties diligently and respon- this. proposed oversight board significant sibly. Moreover, the House and the I yield the floor. authority to review and approve plans Senate Finance Committee have deter- The PRESIDING OFFICER. The Sen- for this agency’s operation—its stra- mined that the public benefit of having ator from Alabama. tegic plans, its reorganization plans, an employee representative on the Mr. SESSIONS. Mr. President, with its budget requests, and other funda- Board outweighs the potential conflict regard to my raising the question of mental operational matters. by having him or her on the Board. I bribery as being the same in principle Without the cooperation and input of think this determination is indis- as what we are discussing here, I would the IRS’ employees in this process, how putably correct, and should not be dis- like to make a statement. Maybe I was can we possibly expect the Board’s re- turbed by the full Senate. misunderstood. I would like to just say sponsibilities to be discharged in a In closing, let me make a few re- that, fundamentally, we are waiving manner that will make the oversight marks about federal employees in gen- the applicability of sections 203, 205, 207 board an effective instrument of re- eral. of the United States Criminal Code. form? It has become all to fashionable in The bribery section is section 201 1. Let us not forget that IRS employees recent years for Congress to berate fed- As a matter of principle, I just want- have been instrumental in bringing to eral employees and to denigrate the ed to make the point that what we are light much of the information that has many contributions they make to our being asked to do here is to waive the caused Congress to undertake the re- nation. criminal law of the United States with form efforts before us now. Federal employees render invaluable regard to this particular individual, Let us also recall that IRS employees service to this nation. They work hard and the Ethics Committee has said it is have expertise in the operation of the and are proud of that work. Many of unprecedented. That means this body agency that is unique and irreplace- them are highly educated and skilled. has never done this in its entire his- able. This expertise is absolutely inte- In short, they bring a great deal of ex- tory. This is a legal mistake. I am not gral to effecting the kinds of changes pertise and dedication to their roles as here concerning myself with the indi- that we in Congress—and more impor- civil servants. viduals who make up the board. I am tant, the American people—want and Such dedication ought to be recog- here because it was called to my atten- expect. nized, applauded, and, most important tion that this problem existed. I am a Mr. President, the idea of having em- in this context, utilized to help the former Federal prosecutor and a mem- ployee input in the basic management government’s efforts become more re- ber of the Ethics Committee of this decisions of major enterprises is not a sponsive to our constituents. We are body, and I believe this is a legal mis- novel one. In fact, the placement of an now engaged in such an effort. To re- take—a legal mistake we should not employee representative on the IRS move federal employees from the over- make. That is why I am making my oversight board mirrors similar steps sight board would be shortsighted and comments now. I am very sorry to in- taken in several private sector busi- a disservice to the nation. I therefore terrupt the Senator from New York, nesses. For example: urge my colleagues to preserve the cur- but it was important to clarify the Northwest Airlines has a union rep- rent composition of the oversight record, I thought. resentative on its Board of Directors; board and to defeat any amendment Mr. BAUCUS. How long will the Sen- Similarly, the steelworkers union that would change that composition by ator from New York speak? holds a position on the Boards of Direc- removing the employee representative. Mr. D’AMATO. No longer than 5 min- tors of several of our nation’s biggest Mr. KERREY addressed the Chair. utes. steel companies. The PRESIDING OFFICER. The Sen- (By unanimous consent, the remarks Thus, both the private sector and—in ator from Nebraska. of Mr. D’AMATO are printed in today’s this legislation—the public sector have Mr. KERREY. Mr. President, I ask RECORD under ‘‘Morning Business.’’) recognized the value of having em- unanimous consent the pending amend- Mr. SARBANES. Mr. President, while ployee input and participation in the ment be laid aside. I support H.R. 2676, the Internal Rev- management of major enterprises. The PRESIDING OFFICER. Without enue Service restructuring bill that is Those who seek to eliminate em- objection, it is so ordered. now before the Senate, I would like to ployee participation on the oversight AMENDMENT NO. 2357 express my opposition to any amend- board charge that a union representa- (Purpose: To provide for an independent re- ment that would seek to remove an tive on the board will have conflicting view of the investigation of the equal em- IRS employee representative from the interests that will hinder the board’s ployment opportunity process of the Inter- citizens oversight board established in effectiveness. Mr. President, My col- nal Revenue Service offices located in the that legislation. leagues should note that this union area of Milwaukee and Waukesha, Wis- Mr. President, the idea of having an representative: consin, and for other purposes) employee representative on the over- Is subject to nomination by the Mr. KERREY. Mr. President, I send sight board is hardly a novel one. In President and confirmation by the Sen- an amendment to the desk. fact, that idea has been incorporated ate; The PRESIDING OFFICER. The into virtually every IRS reform pro- Must make full financial disclosure clerk will report. posal that has been made in the last in accordance with current laws, like The assistant legislative clerk read couple of years, including: all other Board members; as follows: The recommendation of the bipar- Is, unlike other Board members, sub- The Senator from Nebraska (Mr. KERREY), tisan Commission to Restructure the ject to additional disclosure require- for Mr. KOHL, and Mr. FEINGOLD, proposes an Internal Revenue Service; ments, including requirements to file amendment numbered 2357.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4428 CONGRESSIONAL RECORD — SENATE May 6, 1998 Mr. KERREY. Mr. President, I ask issues facing the hundreds of commu- Mr. President, during these obviously unanimous consent that reading of the nities in North Carolina and other difficult times in tobacco country, amendment be dispensed with. states that are economically dependant squadrons of politicians in Washington The PRESIDING OFFICER. Without on the tobacco industry. Mr. President, and elsewhere are eager for headlines objection, it is so ordered. it’s unfortunate that this issue has be- back home at the expense of the farm- The amendment is as follows: come so politicized that usually ration- ers. No one knows what will happen On page 229, insert between lines 15 and 16 al members of Congress have been to- with the McCain bill, nor with any the following new section: tally irrational in their exaggeration of other tobacco legislation that may SEC. 1106. REVIEW OF MILWAUKEE AND the entire situation. come forward. But I can promise you WAUKESHA INTERNAL REVENUE Moreover, Mr. President, it is not this: there will continue to be a num- SERVICE OFFICES. anywhere in recorded history that any- ber of special interest groups that will (a) IN GENERAL.— one ever began smoking because a gun try to exploit the fears of the tobacco (1) REVIEW.—The Commissioner of Internal had been leveled at his or her head farmer for their own gain. Revenue shall appoint an independent expert with orders to smoke, or else. There is I can counsel our folks back home to in employment and personnel matters to conduct a review of the investigation con- no Senator who doesn’t support efforts avoid being disillusioned. If we work ducted by the task force, established by the to curtail youth smoking, and not one together and in good faith, the tobacco Internal Revenue Service and initiated in parent has come forward asserting that farmers of America will continue to January 1998, of the equal employment op- Joe Camel and the Marlboro Man have have a future, no matter the threats portunity process of the Internal Revenue more control over their children than and pleadings from the political cho- Service offices located in the area of Mil- they do. rus—which is becoming a little more waukee and Waukesha, Wisconsin. But all the pious, exaggerated polit- discordant with every passing day. (2) CONTENT.—The review conducted under ical nonsense aside, farmers must con- Mr. President, I thank the Chair. paragraph (1) shall include— tinue to grow their legal crop in order Mr. KERREY. Mr. President, I want (A) a determination of the accuracy and to provide for the livelihood of their to say to the Senator from North Caro- validity of such investigation; and (B) if determined necessary by the expert, families. lina, independent of the subject matter a further investigation of such offices relat- Sometime back, I promised the farm to which he just spoke, that I see him ing to— leaders of North Carolina that I would and the way he lives, and he is one (i) the equal employment opportunity meet with the chief executives of all tough bird. I admire his courage and I process; and tobacco companies to encourage them admire the way he keeps after it. (ii) any alleged discriminatory employ- to buy the maximum amount of U.S. I just wish him the best of health. ment-related actions, including any alleged tobacco possible in 1998. I have kept Mr. HELMS. I thank the Senator. violations of Federal law. that commitment. I have indeed met Mr. KERREY. Mr. President, I sug- (b) REPORT.—Not later than July 1, 1999, with the leaders of all companies, one gest the absence of a quorum. the independent expert shall report on the The PRESIDING OFFICER. The review conducted under subsection (a) (and by one. Their concern for tobacco farm- ers, and for all other citizens who earn clerk will call the roll. any recommendations for action) to Con- The assistant legislative clerk pro- gress and the Commissioner of Internal Rev- their livings ‘‘in tobacco’’, was imme- enue. diate, impressive and sincere. ceeded to call the roll. Mr. ASHCROFT. Mr. President, I ask Mr. KERREY. Mr. President, this There is no doubt in my mind, as a result of these meetings, that leaders unanimous consent that the order for amendment has been cleared on both the quorum call be rescinded. sides. We believe it is a good amend- of the tobacco companies do indeed in- tend to purchase as much U.S. tobacco The PRESIDING OFFICER. Without ment. objection, it is so ordered. I urge its adoption. as possible this marketing season. In fact, some CEOs assured me that f The PRESIDING OFFICER. Is there they plan to purchase more U.S. to- further debate? If there is no objection, INTERNAL REVENUE SERVICE RE- bacco this marketing season than they the amendment is agreed to. STRUCTURING AND REFORM ACT purchased in 1997. One company leader OF 1998 The amendment (No. 2357) was agreed emphasized his company’s plans to in- to. crease its purchases of U.S. leaf every The Senate continued with the con- Mr. KERREY. Mr. President, I sug- year through 2002. sideration of the bill. gest the absence of a quorum. The tobacco companies understand AMENDMENT NO. 2343 The PRESIDING OFFICER. The the need to purchase at least this Mr. ASHCROFT. Mr. President, I clerk will call the roll. year’s effective quota in order to pre- thank Senator ROTH and Senator MOY- The assistant legislative clerk pro- vent another substantial decrease in NIHAN for having accepted the Leahy- ceeded to call the roll. quota next year. There will be a lot of Ashcroft amendment which will pro- Mr. HELMS. Mr. President, I ask personal bankruptcies in North Caro- vide electronic access to the IRS infor- unanimous consent that the order for lina if our farmers are faced with an- mation on the Internet. This amend- the quorum call be rescinded. other 10 to 17 percent reduction in ment will require the IRS to maintain The PRESIDING OFFICER. Without quota. But I am confident—and I do ex- its web site with current forms, in- objection, it is so ordered. pect—that the tobacco companies will structions and publications so people f honor their commitment to me and the anywhere with access to the Internet can have access to those forms. IN THIS TIME OF HOT AIR TO- tobacco farmers of this country to pur- chase U.S. tobacco this marketing sea- To allow the public to have easy, effi- BACCO FARMERS SHOULD KEEP cient electronic access to all the IRS COOL son. Mr. President, everyone in the to- information that may be needed to ade- Mr. HELMS. Mr. President, it’s fair bacco community—particularly the to- quately prepare a tax filing is a real to say that the so-called tobacco ‘‘de- bacco companies—realizes that the to- benefit to the people, and I thank Sen- bate’’—and I characterize most of the bacco farmers should have been in- ator ROTH and Senator MOYNIHAN for rhetorical chatter as ‘‘so-called’’ be- cluded in the so-called ‘‘National To- accepting the Leahy-Ashcroft amend- cause it (1) has amounted to little more bacco Settlement’’ in the first place. ment which will provide electronic ac- than posturing, and (2) has created Tobacco farmers and manufacturers cess to the IRS information on the enormous uncertainty and unease for are at a crossroads that may very well Internet. And I thank Senator LEAHY the thousands of fine Americans who define their destiny. They can either for his involvement in that measure. earn their living in the tobacco indus- choose to work in good faith, or they Mr. President, I am pleased that the try. can choose not to. If they choose to bipartisan amendment introduced by The public health community (and harbor ill-will and mistrust, the de- Senator LEAHY and me has been adopt- its ‘‘Amen corner’’ in Congress) would struction rampant in this industry will ed into the current legislation. This delight in putting the tobacco compa- be far greater than anything Congress amendment will give individuals the nies out of business rather than seri- could ever levy by politics or legisla- ability to access a great deal of mate- ously and honestly addressing the tion. rial from the IRS. Revenue rulings,

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4429 treasury regulations, internal revenue would deem a minimum level of secu- those who file electronically would be bulletins, and IRS general counsel rity of a personal identification num- to repudiate hundreds of years of legal memorandum are just a few of the doc- ber code assigned each taxpayer for tradition, in terms of those seeking to uments that will routinely be made purposes of electronic filing as actually prove up documents, that they prove available in an easy to use format. This more binding than an analog signature. the signature when they prove up the information should provide for an easi- Let me just sort of put that in ordi- document. er and more understandable approach nary language. Ordinarily, it is the re- Madam President, the Finance Com- to tax planning and preparation. Indi- sponsibility of the IRS in seeking to mittee version of this bill would estab- viduals will be able to see rulings that act upon a tax return to prove that the lish a presumption against taxpayers may be similar to a situation they are signature is actually the signature of filing electronically signed tax returns in currently and plan accordingly. the person who purportedly signed it. which does not exist for paper returns A central idea that I have carried For those individuals signing electroni- and which could have devastating con- from the time I was elected as a U.S. cally, this provision would be reversed sequences. Unless the Senate strikes Senator was that the federal govern- so that a person who signs electroni- this presumption, and opposes a simi- ment be open and accessible to the pub- cally would be discriminated against as lar provision in the House-passed lic. I spent time traveling around Mis- compared to an individual who signs in version of this legislation, we will be souri, and visited every county, to analog form. leaving open the very real possibility demonstrate to students how they That is a problem, but it is really not that taxpayers who have been the vic- could access information about the fed- nearly the problem that comes when tims of electronic identity theft will eral government through my website. you just open the door to the legal find themselves presumed guilty. Do To rural and urban areas the power of nightmare for taxpayers who might be we really want the innocent victim of a the Internet is tremendous—so much victims of electronic identity theft, malicious computer hacker, forging that was far from reach is now acces- where their identity is stolen electroni- spouse, a conniving business partner, sible. This amendment moves IRS in- cally, whose pin codes or real elec- or an embezzling accountant, to be formation closer to the public in an or- tronic signature is fraudulently used. confronted with a potentially insur- derly educational way. And secondly, not only does it subject mountable evidentiary hurdle when As has been mentioned here, the tax people to that kind of risk, but it they assert that they either did not code has become increasingly complex makes very bad technology policy. As sign a tax document, or that the docu- and onerous. My wife is a tax attorney, we begin to welcome the use of tech- ment has been materially altered since she even teaches tax law at Howard nology to alleviate the kind of burden they signed it? What is worse is that University, and we do not even prepare that is both on taxpayers and on the this provision only places this burden our own tax forms. My hope is that this individuals in the bureaucracy, it is on those who file electronically—an- modest effort will provide the public time for us to welcome the kind of other bias against technology. with timely, reliable information that technology which would provide valid Electronic tax filing is clearly the may assist in their efforts to prepare authentication but not to switch to in- wave of the future and is the best their taxes. dividuals who provide their tax returns method for both the IRS and tax- The effort is clearly a first step, that via the Internet or via electronic filing payers. For tax year 1997 24.2 million along with the rest of the provisions of a kind of discrimination which would returns—one in five—were filed elec- this piece of legislation should provide be a disincentive for them to use the tronically, up from 19 million in the the taxpayer with much more protec- program. preceding year. Electronic filing is tion than they currently enjoy. Again, The IRS is wedded to technology that more efficient and accurate for all par- I thank the Finance Committee for its is decades old. The kind of things they ties, but taxpayers should not be asked work, and Senator LEAHY for his advo- are talking about, the PIN code system to give up rights in order to use this cacy on this issue. would only make matters worse. A PIN better technology. Certainly we did not Mr. President, I ask that the pending code that anyone can type is not a se- ask for a greater burden to be placed amendment be set aside and that I be cure means of authenticating docu- on taxpayers who use a typewriter in- allowed to send an amendment to the ments. As we proceed into the future of stead of a pen to prepare their taxes. desk for consideration. electronic signatures with the use of a This language in the IRS bill is the The PRESIDING OFFICER. Is there wide variety of technologies that will first federal statutory language dealing objection? Without objection, it is so provide for authentication, it is impor- with the authentication of electronic ordered. tant that we not, in the law, place this interaction between citizens and the AMENDMENT NO. 2348 prejudice against the use of tech- Federal government. It is very impor- (Purpose: Striking the presumption that nology. tant that we set the right precedent. electronic verifications are treated as ac- Currently, the Internal Revenue But this presumption is completely at tually submitted and subscribed by a per- Service plans to implement electronic odds with the view of legal experts on son) filing by means of a taxpayer PIN code electronic commerce and evidence and Mr. ASHCROFT. I send the amend- that would actually be more authori- would set precisely the wrong prece- ment to the desk. tative than a written signature, so the dent. If this presumption becomes law The PRESIDING OFFICER. The person filing with a written signature inevitable ‘‘horror stories’’ will result. clerk will report the amendment. would not undertake some of the re- For many Americans, electronic au- The legislative clerk read as follows: sponsibilities and liabilities people do thentication of their tax returns will The Senator from Missouri [Mr. with the electronic filing. That dis- be their first experience with an all- ASHCROFT], for himself and Mr. LEAHY, pro- parity in the way people are treated is electronic transaction. We must be poses an amendment numbered 2348. not reasonable, it is not appropriate, careful that we do not permit situa- Mr. ASHCROFT. Mr. President, I ask and it is counterproductive. The IRS tions to occur which will cause the unanimous consent that reading of the should use the best technology avail- public to feel that electronic commerce amendment be dispensed with. able for protection of such sensitive in- and transactions should be avoided if The PRESIDING OFFICER. Without formation and help to ensure the fu- they want to preserve their rights. objection, it is so ordered. ture of electronic commerce. This presumption is antithetical to The amendment is as follows: So we offer this Ashcroft-Leahy the jurisprudence developing in the On page 261, strike lines 4 through 7, and amendment which simply would strike area of cyberlaw. There are several insert ‘‘and subscribed’’. the one-sentence provision that re- measures being considered in Congress Mr. ASHCROFT. Mr. President, the verses, in terms of signatures on the dealing with broad issues of electronic amendment which I have just sent to Internet, the normal burdens of proof signatures, and none of them proposes the desk, known as the Ashcroft-Leahy and the normal responsibility of the to set such an adverse evidentiary amendment, would strike a one-sen- person proving up the document to standard against those who employ tence provision that holds taxpayers as prove the authenticity of the signa- electronic authentication. The drafting guilty until proven innocent. The IRS ture. To change in this respect for committee of the National Conference

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4430 CONGRESSIONAL RECORD — SENATE May 6, 1998 of Commissioners on Uniform State petrated in the future, as the malicious zens Against Higher Taxes, Regulatory Laws, which is laboring to produce a spouse would simply have to type their Policy Center, and the Seniors Coali- model Electronic Authentication Act marriage partner’s PIN number on an tion. These are groups that have had for consideration by state legislatures, electronic return rather than forge the vision to look to the future of elec- has just voted to delete any presump- their signature on paper. And the vic- tronic commerce and electronic inter- tions pertaining to electronic signa- timized spouse would be worse off, be- action with our government and have tures from that civil law measure. The cause they would have to overcome an seen that bad precedent now will se- Committee on Cyberspace Law of the evidentiary presumption which does verely damage efforts in the future. I American Bar Association’s Business not exist for an ink signature. This also want to thank Senator LEAHY and Law Section discussed this IRS pre- presumption is dangerous. his staff for their quick response and sumption at their last meeting and We have not only failed to require solid work on this important provision. voted to authorize communications to that the IRS utilize only secure and re- This may seem like an esoteric issue. the Senate opposing the provision. Ad- liable authentication methodologies, It is an evidentiary concern within a ditionally, the Working Groups on Evi- but we have also given it carte blanche tax bill regarding procedures and tech- dence and on Law and Regulation of to determine what burden a taxpayer nologies with which most of us are not the Information Security Committee of must bear to overcome this evidentiary yet very familiar. But a massive shift the ABA’s Science and Technology Sec- hurdle. This is completely at odds with to electronic commerce, transactions, tion recommended that no presump- other provisions of the bill which seek authentication and evidence is under- tions as to identity and intent should to alter the burden of proof in tax dis- way which will soon revolutionize the attach to an electronic signature. putes in favor of taxpayers. It has been manner in which the public and private With many of the experts in this de- observed that proving a negative can sectors conduct their business. That is veloping legal area reaching consensus be an impossible task. Yet this provi- why it is so important that we take the that presumptions should not operate sion would let the IRS require tax- correct first steps. I urge my col- against electronic signatories even in a payers to somehow prove that they did leagues to join me and act to delete civil law context, how can we justify not place their PIN number, not a dig- this dangerous presumption from the establishing one which can be utilized ital signature, on a tax document IRS bill. This legislation will only ful- against taxpayers in criminal prosecu- which they may well have never seen. fill our goal of enhancing taxpayer tions? Striking this presumption will in no rights if we adopt the principle that Let’s be clear on what this legisla- way diminish the ability of the IRS to those rights should be identical regard- tion does in its present form. It author- rapidly implement an all-electronic tax less of whether taxpayers file physical izes the IRS to develop procedures for system. It will simply compel the IRS or virtual documents. the acceptance of signatures in digital to choose secure and reliable authen- I want to especially thank the Sen- and electronic form so that electroni- tication technologies and associated ator from Vermont, Senator LEAHY, for cally filing taxpayers no longer have to procedures for signing tax documents his involvement in these issues and his send a signed paper form 8453 to the which create strong evidence of iden- sensitivity to the need to have a for- IRS. That is good policy. It establishes tify and intent. Electronic signatures ward-looking, future-oriented policy the principle that an electronically do not require any assist from an evi- expressed towards electronics, elec- signed tax document shall be treated dentiary presumption to meet the legal tronic data transmission, the filing for all civil and criminal purposes as a requirements of a binding signature. electronically of tax returns. I person- paper document. And that too is good To the contrary, electronic and digital ally thank Senator BURNS of Montana, policy. But it permits the IRS to pro- signature technologies are already who has asked that he be added as an vide for alternative means of sub- available which provide better evidence original cosponsor of the Ashcroft- scribing to electronic documents until than an ink signature on paper. Fur- Leahy amendment. I ask unanimous consent that Sen- it adopts procedures for digital and ther, these technologies not only pro- ator BURNS be included as an original electronic signatures. And it would vide superior authentication, but they also accomplish something that no pen cosponsor of the amendment. allow any IRS-authorized method of The PRESIDING OFFICER (Mrs. subscription to create a presumption on ink signature can—they provide ir- HUTCHISON). Without objection, it is so refutable evidence as to non-repudi- that the taxpayer actually submitted ordered. and subscribed to the tax document—a ation by demonstrating that not a sin- Mr. ASHCROFT. I yield the floor. presumption in both civil and criminal gle word on a document has been al- The PRESIDING OFFICER. The Sen- cases. tered, added, or deleted since the time ator from Vermont. Worse yet, the legislative history of it was signed. With such technologies Mr. LEAHY. Madam President, I this provision, in both the House and readily available at reasonable cost, strongly support the amendment of- Senate bills, is silent as to the min- why should we permit the use of inse- fered by my friend from Missouri and imum standards for authentication cure and unreliable methodologies cou- commend the Senator from Missouri technologies that can be adopted by pled to an anti-taxpayer presumption? for what he has just said. the IRS as well as to the evidentiary After striking this presumption an I am proud to cosponsor this effort. burden which must be overcome by electronic tax document will still have It strikes the one sentence in this IRS taxpayers who allege that they have the same legal standing as a paper doc- reform bill that I believe takes away been victims of identity theft. What, in ument. It will still constitute prima the rights of a taxpayer. I know that is fact, is the IRS planning to use for au- facie evidence as an authentic and reli- not the intent of the sponsors of this thentication of electronic tax docu- able writing. But, if questions arise re- legislation. They have done a very good ments? Their plans are public, and they garding the genuineness of an elec- job trying to reform the IRS. I think consist of issuing a PIN number to tax- tronic signature, or under the current we can correct this error. payers and relying on that as the pri- IRS plan a mere PIN number, and the The bill as currently written would mary means of electronic authentica- intent with which it was attached, they create a rebuttable presumption by the tion through the year 2007. A PIN num- will be resolved on the basis of the Internal Revenue Service that any tax ber is not generally recognized as an available evidence and will not be pre- return which has been signed by elec- electronic or digital signature for elec- judged by a presumption against a tax- tronic or digital means has actually tronic commerce purposes, and it is payer. been submitted by the person associ- certainly not secure or reliable. This amendment is already supported ated with the virtual signature. That is The Finance Committee recently by several groups, including the Elec- a rebuttable assumption that is unnec- held hearings on the plight of innocent tronic Frontier Foundation, Americans essary. It is adverse to the taxpayers’ spouses, many of whom were caught up for Tax Reform, Eagle Forum, Citizen’s interests. But worse, it is likely to in tax disputes when their spouse For A Sound Economy, National Tax- deter taxpayers from accepting all- forged their name on a fraudulent tax payer’s Union, the Chamber of Com- electronic tax filing. return. This provision would make it merce, the Association of Concerned More and more things are being done easier for such a fraud to be per- Taxpayers, Black America’s PAC, Citi- online, more and more things are being

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4431 done electronically, and more and ported by such diverse groups as the his tax return electronically instead of more taxpayers are getting used to U.S. Chamber of Commerce, the Elec- putting it in an envelope? It is just un- doing a lot of their commercial trans- tronic Frontier Foundation, and Amer- productive. actions electronically. And they should icans for Tax Reform. If we are not supposed to look to the be able to do the same with the one So I hope my colleagues will support future, then what are we supposed to be thing that every one of us has to do at the Ashcroft-Leahy-Burns amendment. doing around here? Are we not sup- least once a year, and that is file a tax Madam President, I yield the floor. posed to make our Federal Government return. We may or may not order from Mr. BURNS addressed the Chair. friendlier and more accessible to the an electronic catalog, we may or may The PRESIDING OFFICER. The Sen- taxpayer? I would say yes, we are. Are not buy things over the Internet, but ator from Montana. we not supposed to have a visionary sometime during the year we have to Mr. BURNS. Madam President, I con- agenda regarding the IRS? I say we pay our taxes. If we are used to using gratulate my colleagues, Senator should. things electronically, we should be able ASHCROFT and Senator LEAHY. Senator We in Congress should strive for a to file our tax return electronically. LEAHY and I have been on many issues consistent treatment for functionally But unless the sentence we are talk- with regard to the Internet. I think equivalent transactions, and I believe ing about is removed from this bill, a Senator LEAHY, whenever we talk this will be one of our most significant taxpayer filing an all-electronic tax about this issue, what we want to do challenges as we move into the next document will face a greater evi- with it, also understands another issue century. dentiary burden in any subsequent dis- called encryption and how important More and more businesses, and com- pute with the IRS than a taxpayer who security is. We have been around to see munications generally, will be trans- signed a paper return with pen and ink. this thing grow and blossom. They go acted over the Internet. That is why I An electronic signature should have no hand in hand, basically, as we use this am a cosponsor of this amendment. It less and no greater status in the tax technology more. will level the playing field for all tax- context than a physical signature. My friend from Missouri being very payers, regardless of the method they The presumption would provide unin- interested in this, as chairman of the choose in filing their taxes. tended assistance to perpetrators of Subcommittee on Communications, we The Internet offers unlimited oppor- tax frauds, forgeries, and electronic will continue to work on these kind of tunity to both business and personal identity thefts such as the ‘‘innocent issues. This should be an easy amend- transactions. We need to foster those spouse’’ cases recently reviewed by the ment for this body to support—in fact, opportunities. We need to make it easi- Finance Committee. It could even re- for this Congress to support. If you er for taxpayers to file their taxes. verse the presumption of innocence and want to continue to use the same bur- Our antiquated understanding of how due process of taxpayers in criminal densome and bureaucratic methods transactions have to be treated histori- prosecutions by the IRS. None of us that we have used in the past, then cally is not the way we can do things want to do that. don’t support this amendment. Don’t in the future. This is why I am an advo- We have laws regarding authentica- support this amendment if you like the cate of a variety of different measures tion of electronic and digital signa- status quo. If we, as a voice of our con- that would foster and encourage com- tures, but they are in their infancy. stituents, are truly interested in IRS merce and communication over the Several States, including my home reform for taxpayers, then we need to Internet, including the Internet Tax State of Vermont, are crafting legisla- support it. More and more Americans Freedom Act. And the use of tion to promote secure and reliable are becoming Internet savvy, and the encryption comes into this also, be- digital signatures. Senator ASHCROFT day is not far off when most of the cause the technology itself will never and I, by working together to craft bi- business and personal transactions will bloom until we can have some con- partisan Federal legislation on digital take place on the Internet. We are al- fidence in the security of the informa- signatures, are trying to do precisely ready banking; we are handling finan- tion that we send over the Internet. We that. Congress should not be giving the cial transactions on the Internet. So have to work on that just as much. The Internal Revenue Service unrestricted why should this not be one that we can continuing buildout of broadband infra- authority in this emerging area of use, at least once a year? structure is very important. We will cyberspace law. The Internet is just not for surfing continue to develop that to make sure If you adopt the Ashcroft-Leahy anymore. If you want to surf, I guess that it is accessible to every American amendment, then, if you have an elec- you can go to California. But in Mon- and not just a chosen few, regardless of tronically authenticated tax document, tana and rural areas, our connection to geographic location. it will still be treated under the bill, these kinds of services is going to come Madam President, I ask support of for all civil and criminal purposes, the through that medium. this amendment because I think it is same as a paper return. That principle We need electronic commerce. It is very important if we are really serious of equality is the correct standard. going to be the future of the new way, about changing the way the IRS does Citizens should not be required to for- and we have to accept that and learn to business. feit rights to use new technology. use it. I thank the Chair. I yield the floor. If somebody is used to using the Adopting this amendment will en- Mr. KERREY addressed the Chair. Internet, if they are used to using their courage the American taxpayer that The PRESIDING OFFICER. The Sen- computers in electronic commerce, we are interested in reforming the way ator from Nebraska. they should not suddenly have a road- the IRS does business. There is no rea- Mr. KERREY. Madam President, in block go up to say, ‘‘But not on your son to treat electronic tax filers any spite of what the Senator from Mon- tax returns. You have to go the old- different than taxpayers using the tra- tana just said, I continue to support his fashioned way.’’ If people are going ditional filing methods. amendment. There is no rebuttable into the computer and digital age, they The deployment of electronic com- presumption on my part. I believe it is ought to be able to do that for their merce will ultimately save American a good amendment, and I am prepared tax returns, too. taxpayers not only time, but it will to accept it. I commend what Senator ROTH, the save them money. Such discriminating I want to comment before the distin- distinguished chairman of the Finance treatment makes no sense and has a guished chairman of the committee Committee, and Senator KERREY and far-reaching negative impact in delay- rises to accept the amendment. I call Senator MOYNIHAN and Senator GRASS- ing the benefits to both the U.S. Gov- to your attention that this title I con- LEY have done here to bring us into the ernment and citizens in conducting sider to be one of the most important electronic age and to bring us to a business electronically. ones in the bill. I appreciate this may more modern system with the IRS. The amendment at issue is a perfect be the only amendment on this title. What the Senator from Missouri, Mr. example of that. What possible jus- Congressman Portman and I put a lot ASHCROFT, and I are trying to do is to tification is there in placing the pre- of time and attention into it. I call to make sure we go even further into the sumption upon the taxpayer improving your attention that it starts off by say- modern age. Our amendment is sup- a case simply because he chose to file ing:

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4432 CONGRESSIONAL RECORD — SENATE May 6, 1998 It is the policy of the Congress that— them so we can finish this bill. If we URGING PRESIDENT CLINTON TO (1) paperless filing should be the preferred don’t, it is likely there will be an ex- RETRACT ULTIMATUM TO ISRAEL and most convenient means of filing tax and tremely late session tomorrow night. information returns, and Mr. D’AMATO. Mr. President, the (2) it should be the goal of the Internal Most of the controversial items on this reason I rise at this time is because Revenue Service to have at least 80 percent piece of legislation really have been certain matters have come to my at- of all such returns filed electronically by the dealt with. We have the Treasury em- tention and they are disturbing. Today, year 2007. ployees representative amendment to I have sent a letter to the President of The House actually mandates 80 per- be dealt with tomorrow. We have the the United States in regard to this. cent. This just says the goal. Later, I Treasury Secretary to be dealt with to- Mr. President, Israel is our closest will try to get an amendment, and I morrow. Most of the controversial stuff ally, it is our most trusted friend urge you to look at it—I will get you has already been resolved. I hope Mem- among the nations of the Middle East. copies of it—which will add a third bers who have amendments will come We have a long history of working to- item which would say ‘‘the Internal down here with them as quickly as pos- gether and supporting one another for Revenue Service should work coopera- sible so we can finish this important the benefit of both nations and all of tively and not competitively with the piece of legislation tomorrow. our people. private sector to increase electronic Mr. ROTH. I want to underscore what Now as we celebrate the 50th anniver- filing of such returns consistent with the distinguished Senator just said. It sary of Israel’s independence, we the Office of Management and Budget is important that we complete consid- should reaffirm our commitment to Circular A–76.’’ eration of this legislation tomorrow. their peace and security and our sup- If this is going to develop correctly, I But in order to do so, it is of critical port for their continuation as a strong, believe the IRS has to manage the importance that those with amend- reliable, independent nation. competition with the private sector. ments come down early so that we can I am proud of what Israel has accom- We have to write the rules so the pri- dispose of them expeditiously. plished over 50 years. I am proud of vate sector can be called upon to an- their commitment to freedom and jus- f swer the questions of how to use the tice. Israel should be praised for what technology correctly. I hope we can get MORNING BUSINESS it has accomplished and for doing so an amendment adopted which will in- Mr. ROTH. Madam President, I ask over a very long period of time in struct the IRS not to compete but to unanimous consent there now be a pe- which it has faced terrorism from with- work cooperatively with the private riod for the transaction of morning in and without its own borders. sector to get this done. business, with Senators permitted to Israel has always fought its own bat- Mr. ROTH. Madam President, as my tles. Its young have shed much blood to distinguished colleague indicated, this speak for up to 10 minutes each. The PRESIDING OFFICER. Without protect their freedom and they con- matter has been cleared with both objection, it is so ordered. tinue to this day to defend their right sides. The amendment is acceptable. to exist. And their very right to exist The PRESIDING OFFICER. If there f is being threatened. Nations hostile to is no objection, the amendment is Israel throughout the region are a con- NATIONAL EATING DISORDER agreed to. tinuing threat to Israel’s existence. AWARENESS DAY The amendment (No. 2348) was agreed And the Palestinian Authority to this to. Mr. REID. Mr. President, I want to day has yet to recognize Israel’s legiti- UNANIMOUS CONSENT AGREEMENT extend my appreciation to every Mem- mate right to exist. Mr. ROTH. Madam President, I ask ber of this Senate for unanimously It is wrong for the Clinton adminis- unanimous consent that notwith- passing a resolution that dedicates tration to pressure Israel to forgo its standing the previous consent agree- today to be National Eating Disorder own security needs at this critical ment, the following amendments also Awareness Day. time. It is just wrong. It is counter- be considered in order to H.R. 2676, the The purpose is to raise awareness and productive. It is dangerous to a legiti- IRS reform bill, with all other provi- educate others so that we can end the mate peace effort. The brave Israeli sions of the previous agreement still in silence that has shrouded eating dis- citizens who stand ready to defend effect: Grassley, refund offset; Grass- orders for so long. The reason this is their nation should be supported by us ley, Iowa pilot project; Grassley, tax- important is, this affects 8 million peo- in every fashion. To place an ulti- payer advocate council; Nickles, rel- ple. Eight million people in this coun- matum on Israel at this time under- evant. I ask unanimous consent for try have eating disorders; the vast ma- mines the peace process and it denies a these additions. jority of them are women. good friend the right to determine its The PRESIDING OFFICER. Is there A recent study of a group of fourth own security needs. It is not just bad objection? Without objection, it is so graders reveals that 50 percent of these policy; it is wrong. ordered. little students believed they were over- I urge President Clinton in the Mr. ROTH. Mr. President, I ask unan- weight. Eighty-one percent of the girls strongest terms to retract his ulti- imous consent that at 9:30 a.m. on in the same group reported that they matum to Israel and to return America Thursday, the Senate resume consider- had already been on diets. These are 9- to our proper role as a friendly medi- ation of the Thompson amendment No. year-old kids. ator in the search for peace and secu- 2356, and that the time until 10 o’clock Today, younger and younger children rity for all nations in the Middle East. a.m. be equally divided in the usual are adopting restrictive eating proce- Mr. President, I yield the floor. form. I further ask unanimous consent dures and patterns. What begins as ab- that at 10 o’clock a.m., the Senate pro- normal behavior toward food and f ceed to a vote on, or in relation to, the weight control may develop into ano- Thompson amendment, and that no rexia, bulimia, and other forms of dis- U.S. FOREIGN OIL CONSUMPTION amendments be in order to the Thomp- ordered eating. FOR WEEK ENDING APRIL 24TH son amendment prior to its disposition. As with any illness, I believe it is Mr. HELMS. Mr. President, the Amer- The PRESIDING OFFICER. Without wise to invest in resources and pro- ican Petroleum Institute’s report for objection, it is so ordered. grams working toward prevention. By the week ending April 24, that the U.S. Mr. KERREY. Madam President, the heightening awareness and increasing imported 8,287,000 barrels of oil each distinguished chairman of the Finance education, we can save many young day, an increase of 304,000 barrels over Committee, Senator ROTH, and I will children before they become trapped in the 7,983,000 imported each day during try to manage this bill so we can get it a life-threatening cycle of an eating the same week a year ago. done tomorrow. There are what, 15 disorder. Americans relied on foreign oil for amendments approximately now on I extend my appreciation to the en- 56.3 percent of their needs last week. both sides. In order to get it done, tire Senate for allowing this resolution There are no signs that the upward spi- Members who have amendments, I hope to pass. It sends a message to the coun- ral will abate. Before the Persian Gulf after we have our vote tomorrow morn- try that we care about the 8 million War, the United States obtained ap- ing, will stay on the floor and offer people who have eating disorders. proximately 45 percent of its oil supply

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4433 from foreign countries. During the much-needed perspectives of teenagers, Society says that our job is school. Manda- Arab oil embargo in the 1970s, foreign drawing attention to not only their daily tory. We do that, too. We go, learn, try to oil accounted for only 35 percent of lives but to the heart of many teen issues— learn, and try to learn again. Sometimes we America’s oil supply. the adult society in which they live and give up but not too often. The dropout rate grow. at Lake Region union High School is less Politicians had better give consider- than 2 percent, according to Lake Region ation to the economic calamity sure to TEENS DEFEND THEMSELVES AGAINST STEREOTYPES Annual Report, Jan. 15, 1997. We might not occur in America if and when foreign We present ourselves not as problems to be in the top 10 percent of the world’s smart- producers shut off our supply—or dou- society, but as we really are, 32 teens look- est kids, but do we really need to be? Society ble the already enormous cost of im- ing at themselves and society. Not statistics, is a problem to us sometimes, too. If you ported oil flowing into the U.S.—now but the real thing, us. We would like to want to separate society into parts, we, as 8,287,000 barrels a day. present what we do that we are proud of, feel teens and citizens, are not responsible for we have accomplished, and what we have the pollution of the world, the genocide in f given to others. We come from all social and most corners, poverty, houseless people, por- nography, gridlock and the corruption of our THE VERY BAD DEBT BOXSCORE economic backgrounds and come together each day in our town school. We have our ups national leaders. Drugs are everywhere. Do Mr. HELMS. Mr. President, at the and downs with each other, but get along we manufacture them or smuggle them into close of business yesterday, Tuesday, more often than we do not. Life is not per- the country? Society has taught us from the May 5, 1998, the federal debt stood at fect, but neither is yours. first time we viewed a sporting event that $5,486,129,027,438.95 (Five trillion, four If you knew us, lived with us, celebrated beer is where it’s at. How are we to sort out the mixed messages we are bombarded with? hundred eighty-six billion, one hundred and grieved with us there would be no need for this response. However, it is our experi- We listen weekly to the adults in the news twenty-nine million, twenty-seven who compare us unfavorably with the test thousand, four hundred thirty-eight ence that most adults simply ignore, dis- regard or fear teens. How many adults can scores of other countries. We do not make dollars and ninety-five cents). you see in any given line at a movie even nod the movies rated PG–13 that include more One year ago, May 5, 1997, the federal recognition of a teen’s humanity, much less profanity than we would ever think of using. debt stood at $5,332,472,000,000 (Five start a short conversation? We want to start Where are the everyday role models that you trillion, three hundred thirty-two bil- that conversation. would like us to emulate? lion, four hundred seventy-two mil- Hey Mister, did you know that some of us Our advice—get to know a teen up front and personal. We don’t like the word scape- lion). do barn chores before we even go to school every morning. We do evening chores, too. In goat for anyone. It makes it too easy to cast Five years ago, May 5, 1993, the fed- the first stone. eral debt stood at $4,243,813,000,000 between, we go to school, make honor roll on occasion, play sports, participate in band f (Four trillion, two hundred forty-three and chorus and ride the roller coaster of ado- billion, eight hundred thirteen mil- lescence. MESSAGES FROM THE PRESIDENT lion). Some of us have part-time jobs to earn the Messages from the President of the Ten years ago, May 5, 1988, the fed- money we want for things. We shovel snow, United States were communicated to eral debt stood at $2,516,506,000,000 (Two mow lawns, baby-sit and clean houses for less than minimum wage. We’ve saved our the Senate by Mr. Williams, one of his trillion, five hundred sixteen billion, secretaries. five hundred six million). money for a few years to get what we want- Fifteen years ago, May 5, 1983, the ed. We also earn money to buy some of our EXECUTIVE MESSAGES REFERRED own clothing, sports equipment and enter- As in executive session the Presiding federal debt stood at $1,255,471,000,000 tainment. Some of us even earn money to (One trillion, two hundred fifty-five Officer laid before the Senate messages contribute to family necessities. Imagine from the President of the United billion, four hundred seventy-one mil- that. lion) which reflects a debt increase of We have a sense of community. Who do you States submitting sundry nominations more than $4 trillion— see picking up the trash along our roads and which were referred to the appropriate $4,230,658,027,438.95 (Four trillion, two fields during Green Up Day? Who is col- committees. hundred thirty billion, six hundred lecting bottles for a class trip? Who are the (The nominations received today are crossing guards so younger children won’t fifty-eight million, twenty-seven thou- printed at the end of the Senate pro- get hit by cars? Whose clothes have thought- ceedings.) sand, four hundred thirty-eight dollars fully been gone through and chosen with and ninety-five cents) during the past care to give to clothing centers, or victims of f 15 years. fires? We have given our clothes, our bicy- cles, games, money and music to others in REPORT CONCERNING THE PRO- f need just because we were asked. POSED AGREEMENT FOR CO- ‘‘YOUTH HEALTH ISSUES’’ We, the 32 teens of the eighth grade of Bar- OPERATION BETWEEN THE ton, have volunteered to carry elders’ gro- UNITED STATES OF AMERICA Mr. LEAHY. Mr. President, I rise cery bags just because we saw them strug- AND UKRAINE CONCERNING today to recognize a commendable gling. We also volunteer to shovel out our PEACEFUL USES OF NUCLEAR group of Vermont teens. Oftentimes, grandparents’ dooryards, and even accept the ENERGY—MESSAGE FROM THE society shortchanges teenagers by money they insist we take because we know PRESIDENT—PM 122 placing unfair stereotypes upon them it makes them feel good, too. We march and and by not listening to what they have play our musical instruments in Memorial The PRESIDING OFFICER laid be- to say. The eighth grade students of Day and Veterans Day parades in honor of fore the Senate the following message those who served. Sometimes we go to local from the President of the United Barton Academy have written an arti- nursing homes and play our instruments or cle to prove that they, as teens, are States, together with an accompanying sing. Sometimes we go just to share and report; which was referred to the Com- vital members of their community and talk. of society as a whole. I was particu- Most of us have family responsibilities mittee on Foreign Relations: larly impressed with not only the mes- that we honor. We split wood and stack it; To the Congress of the United States: sage but with the eloquence of this ar- and move it from one place to another. We I am pleased to transmit to the Con- ticle. I ask unanimous consent that the trudge through snow and mud to gather sap gress, pursuant to sections 123b. and and help sugar. We do the laundry for the article be printed in the CONGRES- family, set the table, cook some meals, and 123d. of the Atomic Energy Act of 1954, SIONAL RECORD so that all Senators clean up afterward and empty the trash. We as amended (42 U.S.C. 2153 (b), (d)), the may read the words of these fine teen- grumble, but we do the chores. We watch our text of a proposed Agreement for Co- agers. younger brothers and sisters. For the most operation Between the United States of There being no objection, the article part, we think we are pretty helpful. Some of America and Ukraine Concerning was ordered to be printed in the us were even responsible for bringing the Peaceful Uses of Nuclear Energy, with RECORD, as follows: possibility of recycling into our homes. accompanying annex and agreed Did you know that teens in our community [From the 1997 Vermont Kids Count] minute. I am also pleased to transmit volunteer to tutor younger children? Some YOUTH HEALTH ISSUES of the teens at Lake Region Union High my written approval, authorization, The following article, written by a class of School coach our junior hoop program and and determination concerning the Barton eighth graders, introduces this sec- referee our games. Most of us would gladly agreement, and the memorandum of tion on youth health issues. It provides the lend a hand if we were asked. the Director of the United States Arms

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4434 CONGRESSIONAL RECORD — SENATE May 6, 1998 Control and Disarmament Agency with constitute a submittal for purposes of EC–4766. A communication from the Ad- the Nuclear Proliferation Assessment both sections 123b. and 123d. of the ministrator of the Agricultural Marketing Statement concerning the agreement. Atomic Energy Act. My Administra- Service, Department of Agriculture, transmittng, pursuant to law, the report of a The joint memorandum submitted to tion is prepared to begin immediately rule entitled ‘‘Marketing Order Regulating me by the Secretary of State and the the consultations with the Senate For- the Handling of Spearmint Oil Produced in Secretary of Energy, which includes a eign Relations and House International the Far West; Revision of the Salable Quan- summary of the provisions of the Relations Committees as provided in tity and Allotment Percentage for Class 3 agreement and various other attach- section 123b. Upon completion of the (Native) Spearmint Oil for the 1997–98 Mar- ments, including agency views, is also 30-day continuous session period pro- keting Year’’ (Docket FV98–905–2 IFR) re- enclosed. vided for in section 123b., the 60-day ceived on May 4, 1998; to the Committee on Agriculture, Nutrition, and Forestry. The proposed agreement with continuous session provided for in sec- EC–4767. A communication from the Acting Ukraine has been negotiated in accord- tion 123d. shall commence. Assistant Secretary of Defense for Reserve ance with the Atomic Energy Act of WILLIAM J. CLINTON. Affairs, transmitting, pursuant to law, no- 1954, as amended by the Nuclear Non- THE WHITE HOUSE, May 6, 1998. tice of the delay of the report on military technical positions; to the Committee on Proliferation Act of 1978 and as other- f wise amended. In my judgment, the Armed Services. MESSAGES FROM THE HOUSE EC–4768. A communication from the proposed agreement meets all statu- Secretay of Defense, transmitting, notices of tory requirements and will advance the At 3:55 p.m., a message from the military retirements; to the Committee on nonproliferation and other foreign pol- House of Representatives, delivered by Armed Services. icy interests of the United States. The Mr. Hays, one of its reading clerks, an- EC–4769. A communication from the Gen- agreement provides a comprehensive nounced that the Speaker appoints the eral Counsel of the Department of Defense, framework for peaceful nuclear co- following Members as additional con- transmitting, a draft of proposed legislation ferees in the conference on the dis- entitled ‘‘Authority to Fund Inspector Ex- operation between the United States penses From the Organization for the Prohi- and Ukraine under appropriate condi- agreeing votes of the two Houses on bition of Chemical Weapons’’; to the Com- tions and controls reflecting our com- the amendment of the Senate to the mittee on Armed Services. mon commitment to nuclear non- bill (H.S. 2400) entitled ‘‘An Act to au- EC–4770. A communication from the Execu- proliferation goals. thorize funds for Federal-aid highways, tive Director of the Civil Air Patrol, trans- The proposed new agreement with highway safety programs, and transit mitting, pursuant to law, the annual report programs, and for other purposes’’: As of the Civil Air Patrol for fiscal year 1997; to Ukraine permits the transfer of tech- the Committee on the Judiciary. nology, material, equipment (including additional conferees from the Com- EC–4771. A communication from the Chair- reactors), and components for nuclear mittee on Ways and Means, solely for man of the Sentencing Commision, transmit- research, and nuclear power produc- consideration of title XI of the House ting, amendments to the sentencing guide- tion. It provides for U.S. consent rights bill and title VI of the Senate amend- lines, policy statements, and official com- to retransfers, enrichment, and reproc- ment and modifications committed to mentary; to the Committee on the Judiciary. EC–4772. A communication from the Chief essing as required by U.S. law. It does conference: Mr. NUSSLE, Mr. HULSHOF, Justice of the Supreme Court of the United not permit transfers of any sensitive and Mr. RANGEL. States, transmitting, pursuant to law, the nuclear technology, restricted data, or The message further announced that report of amendments to the Federal Rules sensitive nuclear facilities or major the House has passed the following bill, of Appellate Procedure; to the Committee on critical components of such facilities. in which it requests the concurrence of the Judiciary. In the event of termination, key condi- the Senate: EC–4773. A communication from the Chief Justice of the Supreme Court of the United tions and controls continue with re- H.R. 567. An act to amend the Trademark States, transmitting, pursuant to law, the Act of 1946 to provide for the registration spect to material and equipment sub- report of amendments to the Federal Rules ject to the agreement. and protection of trademarks used in com- of Evidence; to the Committee on the Judici- Ukraine is a nonnuclear weapon state merce, in order to carry out provisions of ary. party to the Treaty on the Non- certain international conventions, and for EC–4774. A communication from the Chief proliferation of Nuclear Weapons other purposes. Justice of the Supreme Court of the United (NPT). Following the dissolution of the The message also announced that the States, transmitting, pursuant to law, the Soviet Union, Ukraine agreed to the re- House has agreed to the following con- report of amendments to the Federal Rules current resolution, in which it requests of Civil Procedure; to the Committee on the moval of all nuclear weapons from its Judiciary. territory. It has a full-scope safeguards the concurrence of the Senate: EC–4775. A communication from the Chief agreement in force with the Inter- H. Con. Res. 220. Concurrent resolution re- Justice of the Supreme Court of the United national Atomic Energy Agency garding American victims of terrorism. States, transmitting, pursuant to law, the (IAEA) to implement its safeguards ob- f report of amendments to the Federal Rules ligations under the NPT. Ukraine was of Criminal Procedure; to the Committee on MEASURES REFERRED the Judiciary. accepted as a member of the Nuclear The following bill was read the first EC–4776. A communication from the Direc- Suppliers Group in April 1996, and as a and second times by unanimous con- tor of the Administrative Office of the U.S. member of the NPT Exporters Com- sent and referred as indicated: Courts, transmitting, pursuant to law, the mittee (Zangger Committee) in May wiretap report for calendar year 1997; to the 1997. H.R. 567. An act to amend the Trademark Committee on the Judiciary. I have considered the views and rec- Act of 1946 to provide for the registration EC–4777. A communication from the Direc- and protection of trademarks used in com- ommendations of the interested agen- tor of Operations and Finance, the American merce, in order to carry out provisions of Battle Monuments Commission, transmit- cies in reviewing the proposed agree- certain international conventions, and for ting, pursuant to law, the report under the ment and have determined that its per- other purposes; to the Committee on the Ju- Freedom of Information Act for calendar formance will promote, and will not diciary. year 1997; to the Committee on the Judici- constitute an unreasonable risk to, the The following concurrent resolution ary. common defense and security. Accord- was read and referred as indicated: EC–4778. A communication from the Attor- ney General, transmitting, pursuant to law, ingly, I have approved the agreement H. Con. Res. 220. Concurrent resolution re- and authorized its execution and urge a report on the U.S. Parole Commission for garding American victims of terrorism; to 1998; to the Committee on the Judiciary. that the Congress give it favorable con- the Committee on Foreign Relations. EC–4779. A communication from the Com- sideration. f missioner of the Immigration and Natu- Because this agreement meets all ap- ralization Service, Department of Justice, plicable requirements of the Atomic EXECUTIVE AND OTHER transmitting, pursuant to law, the report of Energy Act, as amended, for agree- COMMUNICATIONS a rule entitled ‘‘Amendment of the Defini- ments for peaceful nuclear coopera- The following communications were tion of Arriving Alien’’ (RIN1115–AE87) re- tion, I am transmitting it to the Con- laid before the Senate, together with ceived on April 22, 1998; to the Committee on the Judiciary. gress without exempting it from any accompanying papers, reports, and doc- EC–4780. A communication from the Com- requirement contained in section 123a. uments, which were referred as indi- missioner of the Immigration and Natu- of that Act. This transmission shall cated: ralization Service, Department of Justice,

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4435 transmitting, pursuant to law, the report of EC–4792. A communication from the Direc- Copyright Treaty and the WIPO Perform- a rule entitled ‘‘Screening Requirements of tor of the Office of Rulemaking Coordina- ances and Phonograms Treaty, to provide Carriers’’ (RIN1115–AD97) received on April tion, Department of Energy, transmitting, limitations on copyright liability relating to 29, 1998; to the Committee on the Judiciary. pursuant to law, the report of an administra- material online, and for other purposes; from EC–4781. A communication from the Acting tive directive regarding In-House Energy the Committee on the Judiciary; placed on Assistant Attorney General (Office of Legis- Management received on April 21, 1998; to the calendar. lative Affairs), transmitting, pursuant to the Committee on Energy and Natural Re- By Mr. CHAFEE (for himself, Mr. BAU- law, the report of settlements (Property sources. CUS, and Mr. WARNER) (by request): Damage and Personal Injury) for calendar EC–4793. A communication from the Direc- S. 2038. A bill to amend the John F. Ken- year 1997; to the Committee on the Judici- tor of the Office of Rulemaking Coordina- nedy Center Act to authorize appropriations ary. tion, Department of Energy, transmitting, for the John F. Kennedy Center for the Per- EC–4782. A communication from the Asso- pursuant to law, the report of an administra- forming Arts and to further define the cri- ciate Attorney General, transmitting, pursu- tive directive regarding suspect and counter- teria for capital repair and operation and ant to law, the report under the Freedom of feit items received on April 21, 1998; to the maintenance; to the Committee on Environ- Information Act for calendar year 1997; to Committee on Energy and Natural Re- ment and Public Works. the Committee on the Judiciary. sources. By Mr. BINGAMAN: EC–4783. A communication from the Direc- EC–4794. A communication from the Sec- S. 2039. A bill to amend the National Trails tor of the Office of Surface Mining Reclama- retary of Energy, transmitting, pursuant to System Act to designate El Camino Real de tion and Enforcement, Department of the In- law, a report entitled ‘‘A Role for Federal Tierra Adentro as a National Historic Trail; terior, transmitting, pursuant to law, the re- Purchasing in Commercializing New Energy- to the Committee on Energy and Natural Re- port of two rules: ‘‘Texas Regulatory Pro- Efficient and Renewable-Energy Tech- sources. gram and Abandoned Mine Land Reclama- nologies’’; to the Committee on Energy and f tion Plan (Recodification)’’ (TX–040–FOR), Natural Resources. SUBMISSION OF CONCURRENT AND ‘‘Pennsylvania Regulatory Program (Coal EC–4795. A communication from the Sec- refuse disposal)’’ (PA–112–FOR) received on retary of Energy, transmitting, pursuant to SENATE RESOLUTIONS April 21, 1998; to the Committee on Energy law, a report entitled ‘‘Building Energy Effi- The following concurrent resolutions and Natural Resources. ciency Standards Activities’’; to the Com- and Senate resolutions were read, and EC–4784. A communication from the Direc- mittee on Energy and Natural Resources. referred (or acted upon), as indicated: tor of the Office of Surface Mining Reclama- EC–4796. A communication from the Sec- By Mr. MURKOWSKI (for himself and tion and Enforcement, Department of the In- retary of Energy, transmitting, pursuant to terior, transmitting, pursuant to law, the re- Mr. STEVENS): law, the report under the Metal Casting S. Res. 223. A resolution commending the port of a rule entitled ‘‘Maryland Regulatory Competitiveness Research Act for fiscal year Program (Bond liability for remined lands)’’ Prince William Sound Community College 1997; to the Committee on Energy and Nat- on twenty years of education service; to the (MD–042–FOR) received on April 16, 1998; to ural Resources. the Committee on Energy and Natural Re- Committee on the Judiciary. EC–4797. A communication from the Sec- By Mr. STEVENS (for himself, Mr. sources. retary of Energy, transmitting, pursuant to EC–4785. A communication from the Assist- COCHRAN, Mr. CHAFEE, Mr. HOLLINGS, law, the report on the Strategic Petroleum Mr. INOUYE, and Mr. MURKOWSKI): ant Secretary of the Interior for Land and Reserve for calendar year 1997; to the Com- Minerals Management, transmitting, pursu- S. Res. 224. A resolution expressing the mittee on Energy and Natural Resources. sense of the Senate regarding an inter- ant to law, the report of a rule entitled ‘‘Na- EC–4798. A communication from the Ad- tional Forest Exchanges’’ (RIN1004–AC97) re- national project to evaluate and facilitate ministrator of the Energy Information Ad- the exchange of advanced technologies; con- ceived on April 28, 1998; to the Committee on ministration, Department of Energy, trans- sidered and agreed to. Energy and Natural Resources. mitting, pursuant to law, a report relative to EC–4786. A communication from the Assist- By Mr. ABRAHAM (for himself and Mr. the uranium industry for calendar year 1997; ant Secretary of the Interior for Land and LIEBERMAN): to the Committee on Energy and Natural Re- S. Con. Res. 94. A concurrent resolution Minerals Management, transmitting, pursu- sources. supporting the religious tolerance toward ant to law, the report of a rule entitled EC–4799. A communication from the Ad- Muslims; to the Committee on the Judiciary. ‘‘Royalties on Gas, Gas Analysis Reports, Oil ministrator of the Energy Information Ad- and Gas Production Measurement, Surface f ministration, Department of Energy, trans- Commingling, and Security’’ (RIN1010–AC23) mitting, pursuant to law, a report entitled STATEMENTS ON INTRODUCED received on May 1, 1998; to the Committee on ‘‘International Energy Outlook 1998: With BILLS AND JOINT RESOLUTIONS Energy and Natural Resources. Projections Through 2020’’; to the Committee EC–4787. A communication from the Com- By Mr. BYRD (for himself and on Energy and Natural Resources. missioner of the Bureau of Reclamation, De- Mrs. HUTCHISON): partment of the Interior, transmitting, pur- f S. 2036. A bill to condition the use of suant to law, a modification report relative REPORTS OF COMMITTEES appropriated funds for the purpose of to the safety of dams; to the Committee on an orderly and honorable reduction of Energy and Natural Resources. The following report of committees U.S. ground forces from the Republic of EC–4788. A communication from the Acting was submitted: Assistant Secretary of the Interior for Fish Bosnia and Herzegovina; to the Com- By Mr. HATCH, from the Committee on and Wildlife and Parks, transmitting, pursu- mittee on Foreign Relations. the Judiciary, without amendment: ant to law, a report on threatened national THE BOSNIA FORCE REALIGNMENT ACT S. 2037. An original bill to amend title 17, historic landmarks; to the Committee on En- United States Code, to implement the WIPO Mr. BYRD. Mr. President, the bill ergy and Natural Resources. Copyright Treaty and the WIPO Perform- that I introduce today, on behalf of the EC–4789. A communication from the Acting ances and Phonograms Treaty, to provide distinguished Senator from Texas, Mrs. Deputy Chief of Operations, Forest Service, limitations on copyright liability relating to Department of Agriculture, transmitting, HUTCHISON, and myself, is an attempt material online, and for other purposes. pursuant to law, the report of a rule entitled to reduce the American portion of the ‘‘Notice, Comment, and Appeal Procedures f NATO deployment to Bosnia and for National Forest System Projects and Ac- Herzegovina. It does so in a carefully tivities’’ received on April 20, 1998; to the INTRODUCTION OF BILLS AND staged manner over the next 2 years, Committee on Energy and Natural Re- JOINT RESOLUTIONS going from the administration-planned sources. The following bills and joint resolu- force size of 6,900 ground troops at the EC–4790. A communication from the Acting tions were introduced, read the first end of this June, to 2,500 troops in Feb- Associate Chief of the Forest Service, De- partment of Agriculture, transmitting, pur- and second time by unanimous con- ruary, 2000. In the interim, the amend- suant to law, the report of a rule entitled sent, and referred as indicated: ment calls for a force size of 5,000 U.S. ‘‘Smith River National Recreation Area’’ By Mr. BYRD (for himself and Mrs. troops to be arrived at by February (RIN0596–AB39) received on April 20, 1998; to HUTCHISON): 1999, and 3,500 by July 1999. the Committee on Energy and Natural Re- S. 2036. A bill to condition the use of appro- This is a gradual drawdown to a level sources. priated funds for the purpose of an orderly which more accurately approximates EC–4791. A communication from the Direc- and honorable reduction of U.S. ground the size of the forces of France and tor of the Office of Rulemaking Coordina- forces from the Republic of Bosnia and Germany at this time. The United tion, Department of Energy, transmitting, Herzegovina; to the Committee on Foreign pursuant to law, the report of Financial As- Relations. States would continue to honor its sistant Letter 98–02 received on April 16, 1998; By Mr. HATCH: commitment to NATO to play an ap- to the Committee on Energy and Natural Re- S. 2037. An original bill to amend title 17, propriate role in the Bosnia stabiliza- sources. United States Code, to implement the WIPO tion force, but the amendment provides

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4436 CONGRESSIONAL RECORD — SENATE May 6, 1998 crucial leverage on our allies in Europe focus of the Senate and the administra- Senator from Texas, Mrs. HUTCHISON, to assume the leadership role that is tion and of all Americans. These events and myself and I ask that the title be appropriate for them in an operation demonstrate my point. We may well stated. near their borders in Europe. have a catastrophe in the making, and The PRESIDING OFFICER. The The current plan by the administra- the question of heading off, or at least clerk will state the title. tion, including the requirement for containing ethnic unrest in Kosovo The bill clerk read as follows: meeting a series of general benchmarks must be addressed by the administra- A bill to condition the use of appropriated in the areas of democratization, an tion, as well as by NATO. I don’t see funds for the purpose of an orderly and hon- independent press and judiciary, and any evidence that the administration orable reduction of U.S. ground forces from other reforms, could keep the United is moving in the direction of providing the Republic of Bosnia and Herzegovina. States with the leading force in Bosnia that kind of address. There may be Mr. BYRD. Mr. President, the distin- for an indefinite period. I do not be- steps that we need to take right now to guished Senator from Texas and I ex- lieve the American people will support prepare for worst-case eventualities. pect this bill to be referred to the ap- the proposition of a semi-permanent The administration needs to inform the propriate committee. deployment with no end-game. Never- Senate in detail on its policy regarding The PRESIDING OFFICER. The bill theless, this year, for the first time, the possible scenarios involving the sit- will be appropriately referred. Mr. BYRD. As of now, Mr. President, the President has said that there is no uation in Kosovo. definite end-game, or exit schedule The amendment offered by Senator I yield the remainder of whatever time I would have had to Mrs. HUTCHISON, which he would propose. Thus, the HUTCHISON and myself does provide pressure is off our allies to pick up that the forces which we move out of that she may add it to the amount of more of the leading role, and our allies Bosnia proper can be redeployed to the time that she would have had under are perfectly content to keep the periphery of that troubled region—into the request. Let me express my appreciation for United States spending some $1.8 bil- Hungary, for instance, and particularly her cosponsorship of this amendment. lion per year on this operation, in addi- into Macedonia, in an effort to dem- She will work hard on its behalf as I tion to the funds we contribute to onstrate to the Serbs and other parties will, and I feel honored and fortunate NATO on an annual basis. that NATO will not stand for the to have her as cosponsor of the bill. I My good friend from the state of spreading of the ethnic conflict beyond Michigan, the ranking member of the yield the floor. the borders of Bosnia and Serbia. But The PRESIDING OFFICER. The Sen- Armed Services Committee, Mr. LEVIN, the spread of the ethnic conflict in ator from Texas is recognized. has also been concerned over the per- Kosovo is a separate issue which must Mrs. HUTCHISON. Thank you, Mr. manent nature of the American deploy- be addressed by the administration, President. ment and the lack of leadership being and I hope that the administration will Mr. President, how much time is left displayed by our European partners. He get busy and give us just such an ad- on our amendment? has offered a proposal, as a provision in dress. Everything possible should be The PRESIDING OFFICER. Twenty- the supplemental appropriations bill, done to forestall a spread of the ethnic four minutes. which was approved by the conference conflict in Kosovo. Bosnia and its vio- Mrs. HUTCHISON. Thank you, Mr. committee on that bill, to urge the lent disposition must be contained and President. President to reach an agreement on the must not be allowed to infect the rest Mr. President, I want to say how deadlines for closure on the various of Europe. We cannot countenance the pleased I am to be working with my benchmarks in the President’s report. spread of the ethnic violence into the colleague, the senior Senator from This is a good amendment by Mr. southern Balkans, and we must do ev- West Virginia, who was honored last LEVIN, and it is a very good starting erything that we can to forestall the night on the Senate floor for having point, and I am supportive of it, but I involvement of Greece and Turkey in cast the most number of votes of any am afraid that it does not contain the future instabilities caused by the Bos- Senator in the history of our country— kind of pressure that would cause the nia and Kosovo situations. 15,000. It was quite awesome. I am administration to act decisively with The reduction in U.S. forces over a pleased to have someone of his stature our allies on the matter of sharing the two-year period arranges a sure but and experience to take the lead on this burden of leadership in Bosnia. I do not gentle glidepath during which a recon- very important act that we hope the think that the Levin amendment, figuration of the composition of allied Senate will pass in the form of an which, as I say, I strongly support, goes forces can be accomplished without amendment to the defense authoriza- far enough. opening up vulnerabilities for U.S. tion bill, or failing that, the appropria- The administration seems not to forces or causing uncertainties on the tions bill, because it is time that Con- work very effectively, except under the part of Serbian elements as to the gress step up to the line and fulfill its pressure of explicit deadlines and an staying power of NATO, while Bosnian constitutional responsibility for allo- explicit schedule with specific num- unrest remains a threat to the peace of cating the military dollars. bers, dates, and goals. This specificity the continent. Yet, history must move Mr. President, as the senior Senator is provided by the amendment which in Europe, and the role of leadership on from West Virginia has stated, our bill Mrs. HUTCHISON and I presently intend the ground, through the presence of will begin the orderly and honorable to offer to the fiscal year 1999 Depart- American armies, must transition to withdrawal of U.S. ground forces from ment of Defense authorization bill one where a healthier balance of re- the Republic of Bosnia and when it comes to the floor. I hope that sponsibility is created. This transition Herzegovina. my colleagues will have a careful look is especially important in light of the U.S. forces in Bosnia have accom- at the details of the amendment. I be- recent developments in Kosovo. In the plished the military mission assigned lieve that it deserves strong bipartisan long run, in an era where new states to them. They were sent to enforce the support. It is a responsible approach, are being incorporated into NATO, and Dayton peace accords by keeping the and it provides the time and the impe- new practices of consensus-building warring factions separated. We all owe tus for our allies to get their acts to- and peacekeeping must be developed our troops a debt of gratitude for hav- gether and begin to take responsibility among the states of the alliance, Eu- ing done this with no combat loss of for the peace of the European Con- rope must begin to get a surer grasp of life to any American. tinent. The United States will continue its own destiny through a spirit of I have just returned this weekend to play an important supporting role in close cooperation among its European from my seventh trip to the Balkans. I this effort, but I hope we will begin to NATO partners. saw a well-trained professional force wean our allies from the overdepend- Mr. President, I hope that my col- capable of performing any mission that ence upon the United States that they leagues will review the details of the we would give them as long as we give currently exhibit. amendment, and will choose to co- them the support they need. But I also Reports over the last few days on the sponsor it. saw a force on a mission with no clear very disturbing developments in the Mr. President, I send the bill to the direction and certainly no exit strat- Serbian province of Kosovo need the desk on behalf of the distinguished egy. It has no end date. These troops

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4437 have been spending more and more The Congress alone has the power. We Why is our legislation needed? What time away from home than at any have the responsibility to provide the does it have to do with military readi- other point in their careers. money for our military and to look at ness? Just last week this Congress ap- The continuing and open-ended com- the big picture. proved adding a half a billion dollars to mitment of U.S. ground forces in Bos- The big picture, Mr. President, is the Bosnia operation. This brings our nia is subject to the oversight author- that our troops are being flung around total to $8 billion. The President has ity of Congress. When we narrowly the world in police missions and peace- asked for another $2 billion for the voted to support this mission in 1995, I keeping missions, and we are losing the next year. That makes a $10 billion op- voted against it because I was afraid edge that a superpower must have to be eration, five times the original esti- what would happen is exactly what is able to act when no one else can or no mate this administration gave Con- happening. We are now in an open- one else will. gress. ended mission. This was not supposed Senator BYRD and I do not want Con- Where is this money coming from? It to be an open-ended mission. It was gress to ever shrink from its constitu- is coming from future readiness. We supposed to be a 1-year commitment. tional responsibility. And it is Senator are borrowing from the future to pay That deadline was missed and the next BYRD who understands the Constitu- for a mission that is clearly capable of deadline was missed. tion better than anyone on this floor. being performed by countries other It is very important that we have an But I, as a new Member, am trying to than the world’s only superpower. If exit strategy. The Secretary of De- see things in a way that our Founding they can do this, the United States can fense, and the Chairman of the Joint Fathers intended and to remain true to be ready to respond in other areas Chiefs, have said an exit strategy and the balance of power that they at- where we have mutual security threats an exit date is most important if we tempted to create. with our allies, such as the Middle East are not going to have mission creep. Our bill is aimed at getting our Euro- and Asia. But, in fact, what I fear is that we do pean allies to start taking a greater There are ample indications that our have mission creep in Bosnia, and as a share of the responsibility for their readiness has begun to suffer as we matter of fact, we also have deadline own regional security matters. This have drawn forces and resources off to creep. will free the United States to respond support regional conflicts. In the U.S. NATO forces have increased their where our allies cannot or will not and Pacific Command, the commander in participation in police activities, some- where the United States is the only chief testified before Congress that thing for which they are not trained. power that is capable of doing so. some forces required for long-term General Joulwan has said our military It is in the interest of our allies that commitments in the Asia-Pacific area forces are not trained for police mis- we maintain the capability to keep the of responsibility are now positioned in sions, and yet that is what they are world safe from threats that would en- the Persian Gulf. He further reports doing more and more. danger our mutual security. The that the Pacific fleet is short over 1,900 U.S. commanders in NATO have stat- United States has nearly twice the sailors in key technical ratings. ed on several occasions that, in accord- number of troops on the ground as our In the Pacific Air Forces, the F–16 ance with the Dayton peace accords, next closest ally, Great Britain. We cannibalization rate is 12.8 percent—a the principal responsibility for law en- have three times more than the French more than 100 percent increase since forcement rests with the parties to the and German allies. 1995 due to lack of spare parts. Dayton agreement—the Serbs, the Our bill provides for a gradual-phased The Army faces similar shortfalls. A Croats, and the Muslims. timetable of reduction of the level of recent Army Times report revealed In a recent letter to Congress, Presi- U.S. troops so that by February in the that while the 1st Armored Division dent Clinton identified a host of addi- year 2000 the American ground combat was staffed at 94 percent, its combat tional missions that seem to go well level would not exceed 2,500. This time- support and service support specialties beyond the peacekeeping scope of the table is consistent with the stated ob- were filled at below 85 percent, and U.S. forces in Bosnia and are aimed jectives of the Clinton administration. captains and majors were filled at 73 really at nation-building. These in- In a recent letter to several Senators, percent. Noncommissioned officers are clude—and I quote from his letter— President Clinton said, ‘‘The deploy- also in short supply in the divisions, ‘‘supporting * * * the conduct of elec- ment will not be open-ended. . .SFOR particularly sergeants. In the 10th Di- tions and the installation of elected of- will be progressively reduced. vision, 24 of 162 infantry squads were ficials,’’ and ‘‘supporting * * * media Mr. President, the Senator from West not fully or only minimally filled. reform efforts.’’ Virginia and I hope to aid the adminis- According to Major General Carl During our recent trip we were tration by offering a credible and or- Ernst, commanding general of the briefed that establishing a rule of law derly timetable for such reductions so Army’s premier infantry training post and a judiciary were also among the that we can provide the ability to fi- at Fort Monroe, VA, this is having a criteria that must be established prior nance the mission with some sense serious negative impact on the Army. to our troops’ withdrawal. that we will know what to expect. General Ernst recently told a congres- Mr. President, these are goals that Our bill provides 6,900 troops by June sional panel at Fort Monroe, ‘‘We are could take 50 years to achieve, and 30, 1998; 5,000 by February 2, 1999; 3,500 now dangerously close to the breaking they define a mission without an exit by June 30, 1999; and 2,500 by February point.’’ strategy. I would just say that the dis- 2, 2000. What about the Air Force? In the Air tinguished Senator who is presiding at Our bill exempts from these totals Force, only 29 percent of the pilots eli- this moment was also in the meetings those forces that are needed to protect gible for a $60,000 bonus to sign up for we had in Bosnia this weekend. I think the U.S. troops as the drawdowns pro- 5 more years signed up. That is half the I speak for all of us who were there in ceed. We also exempt those forces nec- number that took that bonus last year. saying that what we were told about an essary to protect U.S. diplomatic fa- Our military is stretched to the end date is a recipe for a mission with cilities. Most important, we exempt breaking point. Our military cannot no exit strategy. Congress has had lit- any U.S. ground forces which may be continue to provide peacekeeping oper- tle to say, as the President has author- deployed as part of NATO containment ations all over the world. This causes ized an ever-longer commitment of operations in regions surrounding the them to lose the skills for which they troops for an ever-growing number of Republic of Bosnia and Herzegovina. have been trained and dulls their fight- missions. It is my belief that one of our prin- ing edge. We are letting it happen be- I believe that exceeds the war power cipal objectives in the Balkans should cause the operations tempo is too high authority of the President, although be to prevent the conflict in Bosnia and the amount of money we have is fi- this is debatable and I cannot say that from spilling over into neighboring Eu- nite. it is totally clear. But while the Con- ropean countries. Should the President What is suffering is the quality of life stitution leaves some issues unsettled propose to establish a NATO contain- of our military. We are losing our most regarding war powers, there is no such ment perimeter around Bosnia, our bill experienced people. Also our mod- conflict over the power of the purse. would permit that. ernization suffers as we try to keep our

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4438 CONGRESSIONAL RECORD — SENATE May 6, 1998 best planes in the air, with the parts Mr. President, in order that Senators sponsibility for such law enforcement and that they need to function, and, per- may be well informed as to the sub- police activities lies with the Bosnian par- haps most important, the systems that stance of the bill which the Senator ties themselves. we will need to meet the future secu- from Texas and I are introducing, I ask SEC. 3. LIMITATIONS ON THE USE OF FUNDS. rity risks of our country and those of unanimous consent it be printed in the (a) Funds appropriated or otherwise made all of our allies. This includes the available for the Department of Defense for RECORD. any fiscal year may not be obligated for the threat of an incoming ballistic missile There being no objection, the bill was ground elements of the United States Armed with a nuclear, chemical, or biological ordered to be printed in the RECORD, as Forces in the Republic of Bosnia and weapon. We know that 30 countries in follows: Herzegovina except as conditioned below; the world have ballistic missile capa- S. 2036 (1) The President shall continue the ongo- bilities, yet we are not deploying as Be it enacted by the Senate and House of Rep- ing withdrawal of American forces from the quickly as possible any defenses. resentatives of the United States of America in NATO Stabilization Force in the Republic of What the Senator from West Virginia Congress assembled, Bosnia and Herzegovina such that U.S. and I are asking is that our allies, who ground forces in that force or the planned SECTION 1. SHORT TITLE. multi-national successor force shall not ex- are perfectly capable of performing This Act may be cited as the ‘‘Bosnia ceed: these peacekeeping missions as well as Force Realignment Act’’. (i) 6900, by June 30, 1998; anyone can, take that responsibility. SEC. 2. FINDINGS. (ii) 5000, by February 2, 1999; Let the United States build our forces (a) The Congress finds the following: (iii) 3500, by June 30, 1999, and; through modernization and technology (1) United States Armed Forces in the Re- (iv) 2500, by February 2, 2000. and develop missile defense systems so public of Bosnia and Herzegovina have ac- (b) EXCEPTIONS.—The limitation in sub- that we can be there if there is a real complished the military mission assigned to section (a) shall not apply— them as a component of the Implementation (1) to the extent necessary for U.S. ground threat to our mutual security. We can- and Stabilization Forces. forces to protect themselves as the not have a military that is unable to (2) The continuing and open-ended commit- drawdowns outlined in sub-paragraph (a)(1) respond. We must not have a military ment of U.S. ground forces in the Republic of proceeds; that is not respected by our allies, nor Bosnia and Herzegovina is subject to the (2) to the extent necessary to support a our adversaries. oversight authority of the Congress; limited number of United States military The Senator from West Virginia has (3) Congress may limit the use of appro- personnel sufficient only to protect United stood for the constitutional responsi- priated funds to create the conditions for an States diplomatic facilities in existence on bility of Congress. I hope to follow in orderly and honorable withdrawal of U.S. the date of the enactment of this Act; or his footsteps in always reminding our troops from the Republic of Bosnia and (3) to the extent necessary to support non- Herzegovina; combat military personnel sufficient only to Senate of the importance that we up- (4) On November 27, 1995, the President af- advise the commanders North Atlantic Trea- hold our one-third of the balance of firmed that United States participation in ty Organization peacekeeping operations in power in our Government. Our one- the multinational military Implementation the Republic of Bosnia and Herzegovina; and third is that we must be the stewards Force in the Republic of Bosnia and (4) to U.S. ground forces that may be de- of the funds. Only Congress was em- Herzegovina would terminate in about one ployed as part of NATO containment oper- powered to declare war. I do not believe year. ations in regions surrounding the Republic of that our Founding Fathers intended for (5) The President declared the expiration Bosnia and Herzegovina. us to be sending troops abroad in oper- date of the mandate for the Implementation (c) CONSTRUCTION OF SECTION.—Nothing in Force to be December 20, 1996. this section shall be deemed to restrict the ations other than war. They intended (6) The Secretary of Defense and the Chair- authority of the President under the Con- it to be a tough decision, to put our man of the Joint Chiefs of Staff expressed stitution to protect the lives of United troops in harm’s way. confidence that the Implementation Force States citizens. Mr. President, I am going to stand would complete its mission in about one (d) LIMITATION ON SUPPORT FOR LAW EN- for the U.S. Senate’s responsibility to year. FORCEMENT ACTIVITIES IN BOSNIA.—None of assure that we do not fling our troops (7) The Secretary of Defense and the Chair- the funds appropriated or otherwise made around the world in operations other man of the Joint Chiefs of Staff expressed available to the Department of Defense for than war and dissipate our resources the critical importance of establishing a any fiscal year may be obligated or expended and our readiness. I am proud to co- firm deadline, in the absence of which there after the date of the enactment of this Act is a potential for expansion of the mission of for the: sponsor with the Senator from West U.S. forces; (1) Conduct of, or direct support for, law Virginia the bill that will begin the or- (8) On October 3, 1996, the Chairman of the enforcement and police activities in the Re- derly and responsible exit from Bosnia, Joint Chiefs of Staff announced the inten- public of Bosnia and Herzegovina, except for with our allies, as a team, coming to- tion of the United States Administration to the training of law enforcement personnel or gether and sharing this burden in a delay the removal of United States Armed to prevent imminent loss of life. way that meets the regional test and Forces personnel from the Republic of Bos- (2) Conduct of, or support for, any activity meets our responsibility in the world nia and Herzegovina until March 1997. in the Republic of Bosnia and Herzegovina (9) In November 1996 the President an- that may have the effect of jeopardizing the to do that which no one else can. nounced his intention to further extend the primary mission of the NATO-led force in I thank the Senator from West Vir- deployment of United States Armed Forces preventing armed conflict between the Fed- ginia for his leadership in this area. I in the Republic of Bosnia and Herzegovina eration of Bosnia and Herzegovina and the hope we will have the strongest bipar- until June 1998. Republika Srpska (‘Bosnian Entities’). tisan support for our bill so that we (10) The President did not request author- (3) Transfer of refugees within the Republic can make this law, so that our allies ization by the Congress of a policy that of Bosnia and Herzegovina that, in the opin- will know that when we say we are would result in the further deployment of ion of the commander of NATO Forces in- going to do something—whether it is United States Armed Forces in the Republic volved in such transfer— (A) has as one of its purposes the acquisi- something they like or don’t like—that of Bosnia and Herzegovina until June 1998. (11) Notwithstanding the passage of two tion of control by a Bosnian Entity of terri- we will keep our word. That is in their previously established deadlines, the reaffir- tory allocated to the other Bosnian Entity best interests as well as ours. mation of those deadlines by senior national under the Dayton Peace Agreement; or I yield the floor. security officials, and the endorsement by (B) may expose United States Armed Mr. BYRD. How much time remains? those same national security officials of the Forces to substantial risk to their personal The PRESIDING OFFICER. Six and a importance of having a deadline as a hedge safety. half minutes. against an expanded mission, the President (4) Implementation of any decision to Mr. BYRD. I thank the distinguished announced on December 17, 1997 that estab- change the legal status of any territory Senator from Texas for a very knowl- lishing a deadline had been a mistake and within the Republic of Bosnia and edgeable and forceful statement, well that U.S. ground combat forces were com- Herzegovina unless expressly agreed to by all articulated, and one which shows a mitted to the NATO-led mission in Bosnia signatories to the Dayton Peace Agreement. great deal of wisdom with respect to for the indefinite future; SEC. 4. PRESIDENTIAL REPORT. the impact upon the readiness of our (12) NATO military forces have increased (a) Not later than December 1, 1998, the their participation in law enforcement, par- President shall submit to Congress a report military forces, the impact caused by ticularly police, activities; on the progress towards meeting the draw- having our forces in Europe under the (13) U.S. Commanders of NATO have stated down limit established in section 2(a). circumstances which we have de- on several occasions that, in accordance with (b) The report under paragraph (a) shall in- scribed. the Dayton Peace Accords, the principal re- clude an identification of the specific steps

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4439 taken by the United States Government to cess to works to decide whether or not has so far been unable to forge a com- transfer the United States portion of the to acquire them. The current version of prehensive agreement on guidelines for peacekeeping mission in the Republic of Bos- the bill permits libraries to circumvent the application of fair use to digital nia and Herzegovina to European allied na- tions or organizations. access prevention technologies in order distance learning. The issue is an im- to make a good faith determination of portant one, and I commend Senator By Mr. HATCH: whether or not it would like to buy a ASHCROFT for his attention to this mat- S. 2037. An original bill to amend copy of a work. If the library decides ter. title 17, United States Code, to imple- that it wishes to acquire the work it We made tremendous strides in ment the WIPO Copyright Treaty and must negotiate with the copyright charting the appropriate course for up- the WIPO Performances and owner just as libraries do today. dating the Copyright Act to permit the Phonograms Treaty, to provide limita- Third, the Chairman, Senator use of copyrighted works in valid dis- tions on copyright liability relating to ASHCROFT and I crafted an amendment tance learning activities. The Chair- material online, and for other pur- to provide for the preservation of dig- man, Senator ASHCROFT and I joined poses; from the Committee on the Judi- ital works by qualified libraries and ar- together to ask the Copyright Office to ciary; placed on the calendar. chives. The ability of Libraries to pre- facilitate discussions among interested DIGITAL MILLENNIUM COPYRIGHT ACT serve legible copies of works in digital library and educational groups and Mr. LEAHY. Mr. President, the Dig- form is one I consider critical. Under content providers with a view toward ital Millennium Copyright Act, which present law, libraries are permitted to making recommendations that could the Senate Judiciary Committee is re- make a single facsimile copy of works be incorporated into the DMCA at the porting today, is important for our in their collections for preservation April 30 mark up. The Copyright Office economy, for our creative industries purposes, or to replace lost, damaged did just that, once again providing a and for the future of the Internet. This or stolen copies of works that have be- valuable service to this Committee. legislation is based on the WIPO imple- come commercially unavailable. This Based on the Copyright Office’s rec- menting legislation, S. 1121, rec- law, however, has become outmoded by ommendations, we incorporated into ommended by the Administration and changing technology and preservation the DMCA a new Section 122 requiring introduced last year by the Chairman, practices. The bill ensures that librar- the Copyright Office to make broader Senators THOMPSON and KOHL and me. ies’ collections will continue to be recommendations to Congress on dig- Following intensive discussions with available to future generations by per- ital distance education within six a number of interested parties, includ- mitting libraries to make up to three months. Upon receiving the Copyright ing libraries, universities, small busi- copies in any format—including in dig- Office’s recommendations, it is my nesses, online and Internet service pro- ital form. This was one of the proposals hope that the Senate Judiciary Com- viders, telephone companies, computer in the National Information Infrastruc- mittee will promptly commence hear- users, broadcasters, content providers ture Copyright Protection Act of 1995, ings on the issue and move expedi- and device manufacturers, the Com- which I sponsored in the last Congress. tiously to enact further legislation on mittee was able to reach unanimous The Register of Copyrights, among oth- the matter. I know that my fellow agreement on certain modifications ers, has supported that proposal. members on this Committee are as and additions incorporated into the bill In addition, the bill would permit a anxious as I am to complete the proc- and making this bill a product of which library to transfer a work from one ess that we started in Committee of up- we can all be proud. digital format to another if the equip- dating the Copyright Act to permit the Significant provisions were added to ment needed to read the earlier format appropriate use of copyrighted works the bill in Title II to clarify the liabil- becomes unavailable commercially. in valid distance learning activities. ity for copyright infringement of on- This change addresses a problem that This step should be viewed as a begin- line and Internet service providers. should be familiar to anyone whose of- ning—not an end, and we are com- These provisions set forth ‘‘safe har- fice has boxes of eight-inch floppy mitted to reaching that end point as bors’’ from liability for ISPs and OSPs disks tucked away somewhere. quickly as possible. under clearly defined circumstances, These provisions go a long way to- Senator FEINSTEIN had sought to which both encourage responsible be- ward meeting the concerns that librar- clarify when a university would be held havior and protect important intellec- ies have expressed about the original responsible for the actions of its em- tual property rights. In addition, dur- bill, S. 1121, introduced to implement ployees in connection with its eligi- ing the Committee’s consideration of the WIPO treaties. bility for the safe harbors spelled out this bill, an Ashcroft-Leahy-Hatch Another issue that the bill addresses in title II of the bill. Chairman HATCH, amendment was adopted to ensure that is distance learning. When Congress en- Senator ASHCROFT and I agreed with computer users are given reasonable acted the present copyright law it rec- Senator FEINSTEIN that the best way to notice of when their Web sites are the ognized the potential of broadcast and address this issue is to have the Copy- subject of infringement complaints, cable technology to supplement class- right Office examine this issue in a and to provide procedures for computer room teaching, and to bring the class- comprehensive fashion, because of its users to have material mistakenly room to those who, because of their importance, complexity, and implica- taken down put back. disabilities or other special cir- tions for other online service providers, This bill contains a number of provi- cumstances, are unable to attend class- including libraries and archives. sions designed to help libraries and ar- es. At the same time, Congress also Amendments sponsored by Senators chives. First, libraries expressed con- recognized the potential for unauthor- ASHCROFT, HATCH and I were also craft- cerns about the possibility of criminal ized transmissions of works to harm ed to address the issues of reverse engi- sanctions or potentially ruinous mone- the markets for educational uses of neering, ephemeral recordings and to tary liability for actions taken in good copyrighted materials. In the present clarify for broadcasters the use of faith. This bill makes sure that librar- Copyright Act, we struck a careful bal- copyright management information in ies acting in good faith can never be ance and crafted a narrow exemption. the course of certain analog and digital subject to fines or civil damages. Spe- But as with so many areas of copyright transmissions. cifically, a library is exempt from mon- law, the advent of digital technology Legislative language was incor- etary liability in a civil suit if it was requires us to take another look at the porated into the bill to clarify that the not aware and had no reason to believe issue. law enforcement exemptions apply to that its acts constituted a violation. In I recognize that the issue of distance all government agencies which conduct addition, libraries are completely ex- learning has been under consideration law enforcement and intelligence work, empt from the criminal provisions. for the past several years by the Con- as well as to government contractors Second, the bill contains a browsing ference on Fair Use (CONFU) that was engaging in intelligence, investigative, exception for libraries. Libraries have established by the Administration to or protective work. indicated that in an online environ- consider issues relating to fair use in Chairman HATCH, Senator ASHCROFT ment dominated by encrypted works it the digital environment. In spite of the and I agreed to language to assuage the may be impossible for them to gain ac- hard work of the participants, CONFU concerns of the consumer electronics

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4440 CONGRESSIONAL RECORD — SENATE May 6, 1998 manufacturers, and others, that the tween all of the interested parties—in- the leaking roof—were undertaken in bill might require them to design their cluding the copyright industry, tele- response to threatening conditions. products to respond to any particular phone companies, libraries, univer- The Board of Trustees, with the sup- technological protection measure. We sities and device manufacturers. And port of the Park Service, therefore set also agreed to incorporate provisions every major concern raised during that out to achieve a more effective long- into the bill clarifying that nothing in process was addressed. For these rea- term approach to management of the the bill will prevent parents from con- sons, it earned the unanimous support facility, with one entity responsible for trolling their children’s access to the of the Judiciary Committee. Of course, both the care of the physical plant and Internet or individuals from protecting as with any legislation, some tinkering the staging of performance activities. personal identifying information. may still be needed. In 1994, therefore, Congress approved By reaching agreement on this bill, I am confident that this bill has the and the President signed the John F. this Committee is helping to create best approach for stopping piracy and Kennedy Center Act Amendments American jobs, protect American inge- strengthening one of our biggest export (Public Law 103–279). That Act author- nuity, and foster an ever more vibrant industries. It deserves our support. ized the transfer of all capital repair, Internet. In short, the WIPO treaties operations, and maintenance of the fa- and this implementing legislation are By Mr. CHAFEE (for himself, Mr. cility from the Park Service to the important to America’s economic fu- BAUCUS, and Mr. WARNER) (by Board of Trustees. ture. The bill addresses the problems request): The Act also directed the Board to caused when copyrighted works are dis- S. 2038. A bill to amend the John F. develop a comprehensive, multi-year seminated through the Internet and Kennedy Center Act to authorize ap- plan for the restoration and ongoing other electronic transmissions without propriations for the John F. Kennedy maintenance of the Kennedy Center. In the authority of the copyright owner. Center for the Performing Arts and to 1995, the Board delivered the Com- By establishing clear rules of the road, further define the criteria for capital prehensive Building Plan, which set this bill will allow electronic com- repair and operation and maintenance; forth a long-term, two-stage program merce to flourish in a way that does to the Committee on Environment and for the remediation of substandard not undermine America’s copyright Public Works. building conditions, as well as contin- community. THE JOHN F. KENNEDY CENTER FOR THE uous maintenance for the future. Phase In a recent letter about the DMCA, PERFORMING ARTS I, scheduled for Fiscal Years 1995 Secretary Daley said, ‘‘The United Mr. CHAFEE. Mr. President, today I through 1998, has concluded success- States must lead the way in setting a am introducing the John F. Kennedy fully. During this time, several major standard that will protect our creative Center for the Performing Arts Author- projects were completed, including the industries and serve as a model for the ization Act. I am introducing this bill installation of a new, energy-efficient rest of the world. And we need to act as at the request of the Kennedy Center heating and cooling system, replace- quickly as possible.’’ Board of Trustees, in my capacity as ment of the leaking roof and roof ter- This bill is a well-balanced package Chairman of the Committee on Envi- race, and the major renovation of the of proposals that address the needs of ronment and Public Works. Joining me Concert Hall. Phase II is scheduled to creators, consumers and commerce as cosponsors of the bill are the chair- take place over the next eleven fiscal well into the next century. I urge all of man and ranking member of the Sub- years, through Fiscal Year 2009. This my colleagues to support the Digital committee on Transportation and In- stage will involve the massive ‘‘Center Millennium Copyright Act and work frastructure, Senators WARNER and Block’’ project, during which the Opera for its prompt passage. BAUCUS. House will be overhauled, as well as Mr. KOHL. Mr. President, I rise to The concept of a national center for projects to make improvements to the express my support for the Digital Mil- the performing arts originated during plaza, improve accessibility to the the- lennium Copyright Act of 1998. In my the administration of President Dwight aters, install fire and other safety tech- view, we need this measure to stop an D. Eisenhower. President Eisenhower nology, and make a host of other re- epidemic of illegal copying of protected envisioned a national cultural center pairs designed to ensure that the facil- works—such as movies, books, musical in the nation’s capital, and in 1958, ity meets life safety standards. recordings, and software. The copy- with the support of Congress, he signed That brings us to the legislation I am right industry is one of our most thriv- into law the National Cultural Center introducing today. For the major ing businesses. But we still lose more Act, which established the Center as an Phase II projects to get underway, Con- than $15 billion each year due to for- independently administered bureau of gress must revise the 1994 Act to au- eign copyright piracy, according to the Smithsonian Institution. Following thorize appropriate funding for the some estimates. the death of President Kennedy, the next several fiscal years. The bill I am This foreign piracy is out of control. Congress in 1964 renamed the Center in introducing today authorizes signifi- For example, one of my staffers inves- honor of the late president. cant funding levels for the next eleven tigating video piracy on a trip to China The Kennedy Center was opened to fiscal years for maintenance as well as walked into a Hong Kong arcade and the public in September 1971. The re- capital repair work. bought three bootlegged computer sponse was overwhelming—so much so Over the next several weeks, I and games—including ‘‘Toy Story’’ and that the Center’s Board of Trustees re- other members of the Committee on ‘‘NBA ’97’’—for just $10. These games quested help from Congress in main- Environment and Public Works intend normally sell for about $100. Indeed, taining and operating the Center, for to review carefully the planned repair the manager was so brazen about it, he the benefit of the millions of visitors. activities and the authorization re- even agreed to give a receipt. In 1972, Congress authorized the Na- quest. The Kennedy Center is a living Illegal copying has been a long- tional Park Service to provide mainte- Presidential memorial and a national standing concern to me. I introduced nance, security, and other services nec- monument, and as such demands a high one of the precursors to this bill, the essary to maintain the facility. For the standard of maintenance and upkeep. Motion Picture Anti-Piracy Act, which next two decades, the Park Service re- As an ex-officio member of the Board, in principle has been incorporated into ceived federal appropriations for the and Chairman of the authorizing Com- this measure. And I was one of the maintenance and operation of the Pres- mittee, I am dedicated to the appro- original cosponsors of the original pro- idential monument. priate restoration and preservation of posed WIPO implementing legislation, In the early part of this decade, how- the facility, which millions of Ameri- the preliminary version of this meas- ever, it became clear that the Kennedy cans have enjoyed for more than a ure. Center facility—which had not seen quarter of a century. Nevertheless, it is In my opinion, this bill achieves a comprehensive capital repair since its Congress’ duty on behalf of the tax- fair balance by taking steps to effec- opening—had deteriorated signifi- payers to scrutinize this request close- tively deter piracy, while still allowing cantly due to both age and intensive ly. I look forward to working with my fair use of protected materials. It is the public use. Those repairs that had colleagues in the Senate, the Adminis- product of intensive negotiations be- taken place—such as the 1977 repair of tration, and the Kennedy Center Board

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4441 to ensure that we allocate federal re- can still be seen today in the ethnic tary occupation of a large area of the border- sources in an effective and responsible and cultural traditions of the south- land was made possible by El Camino Real, manner. western United States. the historical period of which extended from In the 17th century, caravans of wag- 1598 to 1882; By Mr. BINGAMAN: ons and livestock struggled for months (8) American Indians, European emigrants, S. 2039. A bill to amend the National miners, ranchers, soldiers, and missionaries to cross the desert and bring supplies used El Camino Real during the historic de- Trails System Act to designate El Ca- up El Camino Real to missions, mining velopment of the borderland, promoting cul- mino Real de Tierra Adentro as a Na- towns and settlements in New Mexico. tural interaction among Spaniards, other tional Historic Trail; to the Committee On one section known as the Jornada Europeans, American Indians, Mexicans, and on Energy and Natural Resources. del Muerto, or Journey of Death, they Americans; and THE EL CAMINO REAL DE TIERRA ADENTRO traveled for 90 miles without water, (9) El Camino Real fostered the spread of NATIONAL TRAIL ACT shelter, or firewood. Wagons heading Catholicism, mining, an extensive network Mr. BINGAMAN. Mr. President, I rise south carried the products of New Mex- of commerce, and ethnic and cultural tradi- today to introduce a bill to amend the tions including music, folklore, medicine, ico to markets in Mexico. foods, architecture, language, place names, National Trails System Act to des- El Camino Real became an integral irrigation systems, and Spanish law. ignate El Camino Real de Tierra part of an international network of SEC. 3. AUTHORIZATION AND ADMINISTRATION. Adentro as a National Historic Trail. commerce between Europe, the United Section 5(a) of the National Trails System This legislation is important to New States, New Mexico and other prov- Act (16 U.S.C. 1244(a)) is amended— Mexico and contributes to the national inces of the Mexican republic. The (1) by designating the paragraphs relating dialogue on the history of this country route is a symbol of the commercial to the California National Historic Trail, the and who we are as a people. exchange and cultural interaction be- Pony Express National Historic Trail, and In history classes across the country, tween nations and diverse ethnic the Selma to Montgomery National Historic children learn about the establishment Trail as paragraphs (18), (19), and (20), respec- groups that led to the development of tively; and of European settlements on the East the southwestern United States. It is (2) by adding at the end the following: Coast, and the east to west migration also a proud symbol of the contribu- ‘‘(21) EL CAMINO REAL DE TIERRA ADENTRO.— which occurred under the banner of tions of Hispanic people to the develop- ‘‘(A) IN GENERAL.—El Camino Real de Tier- Manifest Destiny. We in New Mexico, ment of this great country. ra Adentro (the Royal Road of the Interior) however, also know the story of the As we enter the 21st century, it’s es- National Historic Trail, a 404 mile long trail northward exploration and settlement sential that we embrace the diversity from the Rio Grande near El Paso, Texas to of this country by the Spanish, a little of people and cultures that make up San Juan Pueblo, New Mexico, as generally known but important piece of Amer- our country. It is the source of our dy- depicted on the maps entitled ‘United States Route: El Camino Real de Tierra Adentro’, ica’s history. namism and strength. I look forward to contained in the report prepared pursuant to My legislation recognizes a proud helping to advance our understanding subsection (b) entitled ‘National Historic chapter in American history; the of our rich cultural history through Trail Feasibility Study and Environmental northward exploration and settlement this initiative. Assessment: El Camino Real de Tierra of the Southwest by the Spanish. Mr. President I ask unanimous con- Adentro, Texas-New Mexico’, dated March Building upon a network of trade sent that the text of the bill be printed 1997. routes used by the indigenous Pueblos in the RECORD. ‘‘(B) MAP.—A map generally depicting the along the Rio Grande, Spanish explor- There being no objection, the bill was trail shall be on file and available for public inspection in the Office of the National Park ers established a migration route into ordered to be printed in the RECORD, as Service, Department of the Interior. follows: the interior of the continent which ‘‘(C) ADMINISTRATION.—The trail shall be they called ‘‘El Camino Real de Tierra S. 2039 administered by the Secretary of the Inte- Adentro,’’ the Royal Road of the Inte- Be it enacted by the Senate and House of Rep- rior. rior. My bill will amend the National resentatives of the United States of America in ‘‘(D) LAND ACQUISITION.—No land or inter- Trails System Act to designate El Ca- Congress assembled, est in land outside the exterior boundaries of mino Real de Tierra Adentro as a Na- SECTION 1. SHORT TITLE. any federally administered area may be ac- tional Historic Trail, and give the Na- This Act may be cited as the ‘‘El Camino quired by the United States for the trail ex- tional Park Service a mandate to de- Real de Tierra Adentro National Historic cept with the consent of the owner of the Trail Act’’. land or interest in land. velop interpretive displays explaining SEC. 2. FINDINGS. ‘‘(E) VOLUNTEER GROUPS; CONSULTATION.— the importance of the trail during the Congress finds that— The Secretary of the Interior shall— Spanish settlement of the southwest (1) El Camino Real de Tierra Adentro (the ‘‘(i) encourage volunteer trail groups to United States. Royal Road of the Interior), served as the participate in the development and mainte- This legislation is especially appro- primary route between the colonial Spanish nance of the trail; and priate in this year of the capital of Mexico City and the Spanish pro- ‘‘(ii) consult with affected Federal, State, Cuartocentenario, which commemo- vincial capitals at San Juan de Los Cabal- and tribal agencies in the administration of rates the 400th anniversary of the es- leros (1598–1600), San Gabriel (1600–1609) and the trail. ‘‘(F) COORDINATION OF ACTIVITIES.—The tablishment of the first Spanish capital Santa Fe (1610–1821); (2) the portion of El Camino Real in what Secretary of the Interior may coordinate at San Juan Pueblo, the first terminus is now the United States extended between with United States and Mexican public and of the El Camino Real de Tierra El Paso, Texas, and present San Juan Pueb- non-governmental organizations, academic Adentro. lo, New Mexico, a distance of 404 miles; institutions, and, in consultation with the In 1598, almost a decade before the (3) El Camino Real is a symbol of the cul- Secretary of State, the government of Mex- first English colonists landed at tural interaction between nations and ethnic ico and its political subdivisions, for the pur- Jamestown, Virginia, Don Juan de groups and of the commercial exchange that pose of exchanging trail information and re- On˜ ate led a Spanish expedition which made possible the development and growth search, fostering trail preservation and edu- established the northern portion of El of the borderland; cational programs, providing technical as- sistance, and working to establish an inter- Camino Real de Tierra Adentro. The (4) American Indian groups, especially the Pueblo Indians of the Rio Grande, developed national historic trail with complementary road was the main route for commu- trails for trade long before Europeans ar- preservation and education programs in each nication and trade between the colo- rived; nation.’’. nial Spanish capital of Mexico City and (5) in 1598, Juan de On˜ ate led a Spanish f the Spanish provincial capitals at San military expedition along those trails to es- Juan de Los Caballeros, San Gabriel tablish the northern portion of El Camino ADDITIONAL COSPONSORS and then Santa Fe, New Mexico. Real; S. 10 From 1598 to 1821 El Camino Real de (6) during the Mexican National Period and At the request of Mr. GRAMS, his Tierra Adentro facilitated the explo- part of the United States Territorial Period, name was withdrawn as a cosponsor of El Camino Real facilitated the emigration of ration, conquest, colonization, settle- people to New Mexico and other areas that S. 10, a bill to reduce violent juvenile ment, religious conversion, and mili- were to become part of the United States; crime, promote accountability by juve- tary occupation of the borderlands. (7) the exploration, conquest, colonization, nile criminals, punish and deter violent The Spanish influence from that period settlement, religious conversion, and mili- gang crime, and for other purposes.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4442 CONGRESSIONAL RECORD — SENATE May 6, 1998 S. 263 (Mr. KERREY) and the Senator from In- SENATE CONCURRENT RESOLUTION 75 At the request of Mr. MCCONNELL, diana (Mr. LUGAR) were added as co- At the request of Mr. FEINGOLD, the the name of the Senator from Missouri sponsors of S. 1334, a bill to amend title names of the Senator from Montana (Mr. ASHCROFT) was added as a cospon- 10, United States Code, to establish a (Mr. BURNS), the Senator from Cali- sor of S. 263, a bill to prohibit the im- demonstration project to evaluate the fornia (Mrs. BOXER), the Senator from port, export, sale, purchase, possession, feasibility of using the Federal Em- Hawaii (Mr. AKAKA), the Senator from transportation, acquisition, and receipt ployees Health Benefits program to en- Ohio (Mr. DEWINE), the Senator from of bear viscera or products that con- sure the availability of adequate health North Carolina (Mr. HELMS), the Sen- tain or claim to contain bear viscera, care for Medicare-eligible beneficiaries ator from New Jersey (Mr. TORRICELLI), and for other purposes. under the military health care system. the Senator from Georgia (Mr. S. 831 S. 1525 CLELAND), the Senator from North At the request of Mr. GRASSLEY, his At the request of Mr. SPECTER, the Carolina (Mr. FAIRCLOTH), the Senator name was added as a cosponsor of S. names of the Senator from Vermont from Nebraska (Mr. KERREY), the Sen- 831, a bill to amend chapter 8 of title 5, (Mr. LEAHY) and the Senator from New ator from Rhode Island (Mr. REED), the United States Code, to provide for con- York (Mr. D’AMATO) were added as co- Senator from Florida (Mr. GRAHAM), gressional review of any rule promul- sponsors of S. 1525, a bill to provide fi- the Senator from Montana (Mr. BAU- gated by the Internal Revenue Service nancial assistance for higher education CUS), and the Senator from Kentucky that increases Federal revenue, and for to the dependents of Federal, State, (Mr. FORD) were added as cosponsors of other purposes. and local public safety officers who are Senate Concurrent Resolution 75, a S. 1002 killed or permanently and totally dis- concurrent resolution honoring the ses- abled as the result of a traumatic in- quicentennial of Wisconsin statehood. At the request of Mr. ABRAHAM, the name of the Senator from Arizona (Mr. jury sustained in the line of duty. SENATE RESOLUTION 216 MCCAIN) was added as a cosponsor of S. S. 1679 At the request of Mr. LIEBERMAN, the 1002, a bill to require Federal agencies At the request of Mr. SARBANES, the names of the Senator from North Da- to assess the impact of policies and name of the Senator from Massachu- kota (Mr. CONRAD), the Senator from regulations on families, and for other setts (Mr. KENNEDY) was added as a co- Oklahoma (Mr. INHOFE), the Senator purposes. sponsor of S. 1679, a bill to modify the from Hawaii (Mr. INOUYE), and the Sen- conditions that must be met before cer- OHL S. 1141 ator from Wisconsin (Mr. K ) were tain alternative pay authorities may added as cosponsors of Senate Resolu- At the request of Mr. JOHNSON, the be excerised by the President with re- name of the Senator from Nebraska tion 216, a resolution expressing the spect to Federal employees. sense of the Senate regarding Japan’s (Mr. HAGEL) was added as a cosponsor S. 1693 of S. 1141, a bill to amend the Energy difficult economic condition. At the request of Mr. THOMAS, the Policy Act of 1992 to take into account f name of the Senator from Alaska (Mr. newly developed renewable energy- MURKOWSKI) was added as a cosponsor SENATE CONCURRENT RESOLU- based fuels and to equalize alternative of S. 1693, a bill to renew, reform, rein- TION 94—SUPPORTING RELIGIOUS fuel vehicle acquisition incentives to vigorate, and protect the National TOLERANCE TOWARD MUSLIMS increase the flexibility of controlled Park System. fleet owners and operators, and for Mr. ABRAHAM (for himself and Mr. other purposes. S. 1929 LIEBERMAN) submitted the following At the request of Mrs. HUTCHISON, the S. 1180 concurrent resolution; which was re- name of the Senator from Mississippi ferred to the Committee on the Judici- At the request of Mr. KEMPTHORNE, (Mr. LOTT) was added as a cosponsor of ary: the name of the Senator from Ken- S. 1929, a bill to amend the Internal tucky (Mr. MCCONNELL) was added as a S. CON. RES. 94 Revenue Code of 1986 to provide tax in- Whereas the American Muslim commu- cosponsor of S. 1180, a bill to reauthor- centives to encourage production of oil ize the Endangered Species Act. nity, comprised of approximately 5,000,000 and gas within the United States, and people, is a vital part of our Nation, with S. 1252 for other purposes. more than 1,500 mosques, Islamic schools, At the request of Mr. DODD, his name S. 1959 and Islamic centers in neighborhoods across was added as a cosponsor of S. 1252, a At the request of Mr. COVERDELL, the the United States; bill to amend the Internal Revenue name of the Senator from Iowa (Mr. Whereas Islam is one of the great Code of 1986 to increase the amount of Abrahamic faiths, whose significant con- GRASSLEY) was added as a cosponsor of tributions throughout history have advanced low-income housing credits which may S. 1959, a bill to prohibit the expendi- be allocated in each State, and to index the fields of math, science, medicine, law, ture of Federal funds to provide or sup- philosophy, art, and literature; such amount for inflation. port programs to provide individuals Whereas the United States is a secular na- At the request of Mr. GRAHAM, the with hypodermic needles or syringes tion, with an unprecedented commitment to name of the Senator from Nevada (Mr. for the use of illegal drugs. religious tolerance and pluralism, where the REID) was added as a cosponsor of S. S. 1981 rights, liberties, and freedoms guaranteed by the Constitution are guaranteed to all citi- 1252, supra. At the request of Mr. HUTCHINSON, zens regardless of religious affiliation; S. 1283 the names of the Senator from Virginia Whereas Muslims have been subjected, At the request of Mr. BUMPERS, the (Mr. WARNER) and the Senator from simply because of their faith, to acts of dis- name of the Senator from Maryland Missouri (Mr. ASHCROFT) were added as crimination and harassment that all too (Mr. SARBANES) was added as a cospon- cosponsors of S. 1981, a bill to preserve often have led to hate-inspired violence, as sor of S. 1283, a bill to award Congres- the balance of rights between employ- was the case during the rush to judgment in sional gold medals to Jean Brown ers, employees, and labor organizations the aftermath of the tragic Oklahoma City Trickey, Carlotta Walls LaNier, Melba which is fundamental to our system of bombing; Patillo Beals, Terrence Roberts, Gloria collective bargaining while preserving Whereas discrimination against Muslims Ray Karlmark, Thelma Mothershed intimidates American Muslims and may pre- the rights of workers to organize, or vent Muslims from freely expressing their Wair, Ernest Green, Elizabeth Eckford, otherwise engage in concerted activi- opinions and exercising their religious be- and Jefferson Thomas, commonly re- ties protected under the National liefs as guaranteed by the first amendment ferred collectively as the ‘‘Little Rock Labor Relations Act. to the Constitution; Nine’’ on the occasion of the 40th anni- S. 1985 Whereas American Muslims have regret- versary of the integration of the Cen- At the request of Mr. HATCH, the tably been portrayed in a negative light in tral High School in Little Rock, Ar- name of the Senator from California some discussions of policy issues such as kansas. issues relating to religious persecution (Mrs. FEINSTEIN) was added as a co- abroad or fighting terrorism in the United S. 1334 sponsor of S. 1985, a bill to amend Part States; At the request of Mr. BOND, the L of the Omnibus Crime Control and Whereas stereotypes and anti-Muslim rhet- names of the Senator from Nebraska Safe Streets Act of 1968. oric have also contributed to a backlash

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4443 against Muslims in some neighborhoods when the Puritans fled to America INOUYE, and Mr. MURKOWSKI) submitted across the United States; and seeking the religious freedom that was the following resolution; which was Whereas all persons in the United States denied them in England, our nation has considered and agreed to: who espouse and adhere to the values of the cherished religious pluralism and in- founders of our Nation should help in the S. RES. 224 fight against bias, bigotry, and intolerance grained in its people the value of allow- Whereas currently in the post Cold-War in all their forms and from all their sources: ing every person to worship according world, there are new opportunities to facili- Now, therefore, be it to the dictates of his or her own con- tate international political and scientific co- Resolved by the Senate (the House of Rep- science. When the Framers drafted the operation on cost-effective and advanced in- resentatives concurring), That— Constitution, they saw this principle as novative nuclear waste technologies; (1) Congress condemns anti-Muslim intol- so important, so sacrosanct, that they Whereas there is increasing public interest erance and discrimination as wholly incon- enshrined religious freedom not once, in monitoring and remediation of nuclear wastes; and sistent with the American values of religious but twice, in the Bill of Rights’ very tolerance and pluralism; Whereas it is in the best interest of the (2) while Congress respects and upholds the first Amendment. Perhaps because of United States to explore and develop options right of individuals to free speech, Congress this constitutional mandate, or per- with the international community to facili- acknowledges that individuals and organiza- haps because of the resulting tolerance tate the exchange of evolving advanced nu- tions that foster such intolerance create an the First Amendment has engendered clear waste technologies: Now, therefore, be it atmosphere of hatred and fear that divides in our society, our nation has in the Resolved, That it is the sense of the Senate the Nation; more than 200 years since it began be- that—the President should instruct the Sec- retary of Energy, in consultation with the (3) Congress resolves to uphold a level of come a haven for those seeking both political discourse that does not involve Secretary of State, the Secretary of Defense, making a scapegoat of an entire religion or refuge from religious persecution and a the Administrator of the Environmental drawing political conclusions on the basis of society accepting and nurturing of a Protection Agency, and other officials as ap- religious doctrine; and pluralism in religious beliefs. propriate, to consider the Advanced Tech- (4) Congress recognizes the contributions Indeed, like millions of their coreli- nology Research Project (known as ‘‘ATRP’’) of American Muslims, who are followers of gionists, my own grandparents came to and report to the Committee on Energy and one of the three major monotheistic reli- the United States from Central and Natural Resources of the Senate on: gions of the world and one of the fastest Eastern Europe early this century, in (1) whether the United States should en- growing faiths in the United States. part to escape the discrimination they courage the establishment of an inter- Mr. ABRAHAM. Mr. President, I rise national project to facilitate the evaluation suffered on account of their Jewish and international exchange of data (includ- today to introduce S. Con. Res. 94, faith and heritage. They and those of ing cost data) relating to advanced nuclear which encourages religious tolerance us who descended from them ulti- waste technologies, including technologies toward Muslims in America. I am mately found an acceptance in this for solid and liquid radioactive wastes and proud to join my colleague, Senator country that is virtually unparalleled contaminated soils and sediments; JOE LIEBERMAN, in co-sponsoring this in history. As a result of this country’s (2) whether such a project could be funded legislation. S. Con Res. 94 calls upon continued willingness to welcome peo- privately through industry, public interest, Congress to lead the effort in con- ple of different faiths like my grand- and scientific organizations and adminis- demning anti-Muslim intolerance and tered by an international non-governmental, parents, both we and American society nonprofit organization, with operations in discrimination. have been enriched. the United States, Russia, Japan, and other Many may ask why a resolution such Unfortunately, the traditional Amer- countries that have an interest in developing as this needs to be introduced in Con- ican values of religious tolerance and such technologies; and gress. The answer is, unfortunately, acceptance thus far too often have been (3) any legislation that the Secretary be- that some Muslims in America have denied to a more recent group of arriv- lieves would be required to enable such a been subjected to discrimination and als and their descendants. Despite the project to be undertaken. harassment based simply upon their re- tremendous contributions Muslim f ligious beliefs. This, Mr. President, is Americans are making to American so- AMENDMENTS SUBMITTED inimical to the protections of our Con- ciety, and despite the fact that Islam stitution, and to our long-held, funda- shares a common origin—and common mental beliefs concerning religious tol- values—with America’s two other pre- THE INTERNAL REVENUE SERVICE erance and pluralism. dominant monotheistic religions, RESTRUCTURING AND REFORM It is important to note that Islam is Americans of Islamic faith have been ACT OF 1998 one of the three great monotheistic re- subjected to harassment and discrimi- ligions based upon the teachings of nation solely on account of their reli- Abraham. The American Muslim com- gion and heritage. This must end. It is ROTH AMENDMENT NO. 2339 munity, numbering close to 5 million, time for us to reaffirm our commit- Mr. ROTH proposed an amendment to is a vibrant part of our nation. The ment to religious pluralism and toler- the bill (H.R. 2676) to amend the Inter- many mosques, Islamic schools and ance. It is time for us to loudly pro- nal Revenue Code of 1986 to restructure centers across America serve to remind claim that a diversity of religious be- and reform the Internal Revenue Serv- us all that Islam has contributed to ad- liefs and traditions enriches rather ice, and for other purposes; as follows: vancements in the fields of mathe- than diminishes our society because re- On page 401, strike line 3, and insert: ‘‘be- matics, science, medicine, law, philos- ligion—including Islam—is a great ginning after December 31, 1998’’. ophy, art and literature. Furthermore, source of values and good deeds in our On page 415, between lines 16 and 17, insert: many Americans of the Muslim faith democracy. It is time for us to extend SEC. 5007. CLARIFICATION OF DEFINITION OF are leaders in their communities, and to our Muslim citizens in practice the SPECIFIED LIABILITY LOSS. successes in their professions. promise of our nation’s ideals: toler- (a) IN GENERAL.—Subparagraph (B) of sec- It is my sincere hope that our col- ance of and gratitude for their reli- tion 172(f)(1) (defining specified liability loss) leagues will join us in taking a stand is amended to read as follows: gious beliefs. I hope the resolution we ‘‘(B) Any amount (not described in sub- against anti-Muslim intolerance and are submitting today puts us one step paragraph (A)) allowable as a deduction discrimination by co-sponsoring this closer to achieving that ideal. under this chapter which is attributable to a legislation. f liability— I yield the floor. ‘‘(i) under a Federal or State law requiring Mr. LIEBERMAN. Mr. President, I SENATE RESOLUTION 224—EX- the reclamation of land, decommissioning of am proud to join Senator ABRAHAM in PRESSING THE SENSE OF THE a nuclear power plant (or any unit thereof), submitting this resolution recognizing SENATE REGARDING AN INTER- dismantlement of an offshore drilling plat- the need—indeed the obligation—for NATIONAL PROJECT TO EVALU- form, remediation of environmental con- our nation to show greater tolerance ATE AND FACILITATE THE EX- tamination, or payment of workmen’s com- pensation, and towards Americans of Muslim faith. CHANGE OF ADVANCED TECH- NOLOGIES ‘‘(ii) with respect to which the act (or fail- Tolerance for people of all faiths was ure to act) giving rise to such liability oc- among the founding principles of our Mr. STEVENS (for himself, Mr. COCH- curs at least 3 years before the beginning of nation. Since the early 17th Century, RAN, Mr. CHAFEE, Mr. HOLLINGS, Mr. the taxable year.’’

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(b) EFFECTIVE DATE.—The amendment (2) SECTION 358.—Section 358(d)(1) (relating SEC. 5009. EXTENSION OF INTERNAL REVENUE made by this section shall apply to net oper- to assumption of liability) is amended by SERVICE USER FEES. ating losses arising in taxable years begin- striking ‘‘or acquired from the taxpayer Subsection (c) of section 10511 of the Rev- ning after the date of the enactment of this property subject to a liability’’. enue Act of 1987 is amended by striking ‘‘Oc- Act. (3) SECTION 368.— tober 1, 2003’’ and inserting ‘‘October 1, 2007’’. SEC. 5008. MODIFICATION OF AGI LIMIT FOR (A) Section 368(a)(1)(C) is amended by SEC. 5010. EXTENSION OF HAZARDOUS SUB- CONVERSIONS TO ROTH IRAS. striking ‘‘, or the fact that property acquired STANCE SUPERFUND TAXES. (a) IN GENERAL.—Section 408A(c)(3)(C)(i) is subject to a liability,’’. (a) EXTENSION OF TAXES.— (relating to limits based on modified ad- (B) The last sentence of section 368(a)(2)(B) (1) ENVIRONMENTAL TAX.—Section 59A(e) is justed gross income) is amended to read as is amended by striking ‘‘, and the amount of amended to read as follows: follows: any liability to which any property acquired ‘‘(e) APPLICATION OF TAX.—The tax imposed ‘‘(i) adjusted gross income shall be deter- from the acquiring corporation is subject,’’. by this section shall apply to taxable years beginning after December 31, 1986, and before mined in the same manner as under section LARIFICATION OF ASSUMPTION OF LI- (b) C January 1, 1996, and to taxable years begin- 219(g)(3), except that— ABILITY.—Section 357(c) is amended by add- ning after December 31, 2001, and before Jan- ‘‘(I) any amount included in gross income ing at the end the following new paragraph: uary 1, 2008.’’ under subsection (d)(3) shall not be taken ‘‘(4) DETERMINATION OF AMOUNT OF LIABIL- (2) EXCISE TAXES.—Section 4611(e) is into account, and ITY ASSUMED.—For purposes of this section, amended to read as follows: ‘‘(II) any amount included in gross income section 358(d), section 368(a)(1)(C), and sec- ‘‘(e) APPLICATION OF HAZARDOUS SUBSTANCE by reason of a required distribution under a tion 368(a)(2)(B)— provision described in paragraph (5) shall not SUPERFUND FINANCING RATE.—The Hazardous ‘‘(A) a liability shall be treated as having Substance Superfund financing rate under be taken into account for purposes of sub- been assumed to the extent, as determined paragraph (B)(i).’’ this section shall apply after December 31, on the basis of facts and circumstances, the 1986, and before January 1, 1996, and after De- (b) EFFECTIVE DATE.—The amendment transferor is relieved of such liability or any made by this section shall apply to taxable cember 31, 2001, and before October 1, 2008.’’ portion thereof (including through an indem- (b) EFFECTIVE DATES.— years beginning after December 31, 2004. nity agreement or other similar arrange- SEC. 5009. EXTENSION OF INTERNAL REVENUE (1) INCOME TAX.—The amendment made by ment), and subsection (a)(1) shall apply to taxable years SERVICE USER FEES. ‘‘(B) in the case of the transfer of any prop- Subsection (c) of section 10511 of the Rev- beginning after December 31, 2001. erty subject to a nonrecourse liability, un- (2) EXCISE TAX.—The amendment made by enue Act of 1987 is amended by striking ‘‘Oc- less the facts and circumstances indicate tober 1, 2003’’ and inserting ‘‘October 1, 2007’’. subsection (a)(2) shall take effect on January otherwise, the transferee shall be treated as 1, 2002. assuming with respect to such property a KERREY AMENDMENT NO. 2340 SEC. 5011. MODIFICATION OF DEPRECIATION ratable portion of such liability determined METHOD FOR TAX-EXEMPT USE Mr. KERREY proposed an amend- on the basis of the relative fair market val- PROPERTY. ment to the bill, H.R. 2676, supra; as ues (determined without regard to section (a) IN GENERAL.—Subparagraph (A) of sec- follows: 7701(g)) of all assets subject to such liabil- tion 168(g)(3) (relating to tax-exempt use ity.’’ property subject to lease) is amended to read Beginning on page 277, line 4, strike all as follows: through page 279, line 25. (c) APPLICATION TO PROVISIONS OTHER THAN ‘‘(A) TAX-EXEMPT USE PROPERTY.—In the On page 280, line 1, strike ‘‘3105’’ and insert SUBCHAPTER C.— case of any tax-exempt use property, the re- ‘‘3104’’. (1) SECTION 584.—Section 584(h)(3) is amend- On page 282, line 11, strike ‘‘3106’’ and in- ed— covery period used for purposes of paragraph sert ‘‘3105’’. (A) by striking ‘‘, and the fact that any (2) shall be equal to 150 percent of the class On page 286, line 1, strike ‘‘3107’’ and insert property transferred by the common trust life of the property determined without re- ‘‘3106’’. fund is subject to a liability,’’ in subpara- gard to this subparagraph.’’ On page 309, lines 7 and 8, strike ‘‘the date graph (A), (b) EFFECTIVE DATE.—The amendment of the enactment of this Act’’ and insert (B) by striking clause (ii) of subparagraph made by this section shall apply to prop- ‘‘lllll, 1998’’. (B) and inserting: erty— On page 399, line 24, strike ‘‘the date of the ‘‘(ii) ASSUMED LIABILITIES.—For purposes of (1) placed in service after December 31, enactment of this Act’’ and insert ‘‘Decem- clause (i), the term ‘assumed liabilities’ 1998, and ber 31, 2001’’. means any liability of the common trust (2) placed in service on or before such date On page 400, lines 4 and 5, strike ‘‘the date fund assumed by any regulated investment which— of the enactment of this Act’’ and insert company in connection with the transfer re- (A) becomes tax-exempt use property after ‘‘December 31, 2001’’. ferred to in paragraph (1)(A). such date, or On page 415, between lines 16 and 17, insert: ‘‘(C) ASSUMPTION.—For purposes of this (B) becomes subject to a lease after such SEC. 5007. CLARIFICATION OF DEFINITION OF paragraph, in determining the amount of any date which was not in effect on such date. SPECIFIED LIABILITY LOSS. liability assumed, the rules of section In the case of property to which paragraph (a) IN GENERAL.—Subparagraph (B) of sec- 357(c)(4) shall apply.’’ (2) applies, the amendment shall only apply tion 172(f)(1) (defining specified liability loss) (2) SECTION 1031.—The last sentence of sec- with respect to periods on and after the date is amended to read as follows: tion 1031(d) is amended— the property becomes tax-exempt use prop- ‘‘(B) Any amount (not described in sub- (A) by striking ‘‘assumed a liability of the erty or subject to such a lease. paragraph (A)) allowable as a deduction taxpayer or acquired from the taxpayer prop- SEC. 5012. EXTENSION OF REPORTING FOR CER- under this chapter which is attributable to a erty subject to a liability’’ and inserting ‘‘as- TAIN VETERANS PAYMENTS. liability— sumed (as determined under section 357(c)(4)) The last sentence of section 6103(l)(7) (re- ‘‘(i) under a Federal or State law requiring a liability of the taxpayer’’, and lating to disclosure of return information to the reclamation of land, decommissioning of (B) by striking ‘‘or acquisition (in the Federal, State, and local agencies admin- a nuclear power plant (or any unit thereof), amount of the liability)’’. istering certain programs) is amended by dismantlement of an offshore drilling plat- (d) CONFORMING AMENDMENTS.— striking ‘‘September 30, 2003’’ and inserting form, remediation of environmental con- (1) Section 351(h)(1) is amended by striking ‘‘September 30, 2008’’. tamination, or payment of workmen’s com- ‘‘, or acquires property subject to a liabil- On page 260, line 14, strike ‘‘shall develop’’ pensation, and ity,’’. and insert ‘‘shall, not later than January 1, ‘‘(ii) with respect to which the act (or fail- (2) Section 357 is amended by striking ‘‘or 2000, develop’’. ure to act) giving rise to such liability oc- acquisition’’ each place it appears in sub- On page 305, lines 3 and 4, strike ‘‘the date curs at least 3 years before the beginning of section (a) or (b). of the enactment of this Act’’ and insert the taxable year.’’ (3) Section 357(b)(1) is amended by striking ‘‘June 30, 2000’’. (b) EFFECTIVE DATE.—The amendment On page 305, lines 10 and 11, strike ‘‘the ‘‘or acquired’’. made by this section shall apply to net oper- date of the enactment of this Act’’ and insert (4) Section 357(c)(1) is amended by striking ating losses arising in taxable years begin- ‘‘June 30, 2000’’. ‘‘, plus the amount of the liabilities to which ning after the date of the enactment of this On page 308, line 13, strike ‘‘the date of the the property is subject,’’. Act. enactment of this Act’’ and insert ‘‘June 30, (5) Section 357(c)(3) is amended by striking 1999’’. SEC. 5008. PROPERTY SUBJECT TO A LIABILITY ‘‘or to which the property transferred is sub- TREATED IN SAME MANNER AS AS- On page 309, lines 7 and 8, strike ‘‘the date SUMPTION OF LIABILITY. ject’’. of the enactment of this Act’’ and insert (a) REPEAL OF PROPERTY SUBJECT TO A LI- (6) Section 358(d)(1) is amended by striking ‘‘December 31, 1999’’. ABILITY TEST.— ‘‘or acquisition (in the amount of the liabil- On page 310, strike line 19, and insert ‘‘De- (1) SECTION 357.—Section 357(a) (relating to ity)’’. cember 31, 1999’’. assumption of liability) is amended by strik- (e) EFFECTIVE DATE.—The amendments On page 312, lines 15 and 16, strike ‘‘the ing ‘‘, or acquires from the taxpayer prop- made by this section shall apply to transfers date of the enactment of this Act’’ and insert erty subject to a liability’’ in paragraph (2). after the date of the enactment of this Act. ‘‘December 31, 1999’’.

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On page 314, lines 3 and 4, strike ‘‘the 180th ‘‘(2) QUALIFICATIONS.—Members of the ‘‘(B) plans for outsourcing or managed day after the date of the enactment of this Board described in paragraph (1)(A) shall be competition, and Act’’ and insert ‘‘December 31, 2000’’. appointed solely on the basis of their profes- ‘‘(C) plans for training and education. On page 315, line 11, strike ‘‘June 30, 2000’’ sional experience and expertise in 1 or more ‘‘(3) MANAGEMENT.—To— and insert ‘‘December 31, 2000’’. of the following areas: ‘‘(A) recommend to the President can- On page 324, strike lines 9 through 12, and ‘‘(A) The needs and concerns of taxpayers. didates for appointment as the Commis- insert: ‘‘(B) Organization development. sioner of Internal Revenue and recommend (e) EFFECTIVE DATE.—The amendments ‘‘(C) Customer service. to the President the removal of the Commis- made by this section shall apply to collec- ‘‘(D) Operation of small businesses. sioner, tion actions initiated after December 31, ‘‘(E) Management of large businesses. ‘‘(B) recommend to the Secretary of the 1999. ‘‘(F) Information technology. Treasury 3 candidates for appointment as On page 343, after line 24, insert: ‘‘(G) Compliance. the National Taxpayer Advocate from indi- (c) EFFECTIVE DATE.—This section shall In the aggregate, the members of the Board viduals who have— apply to collection actions initiated after ‘‘(i) a background in customer service as December 31, 1999. described in paragraph (1)(A) should collec- tively bring to bear expertise in these enu- well as tax law, and On page 345, lines 6 and 7, strike ‘‘the date ‘‘(ii) experience in representing individual of the enactment of this Act’’ and insert merated areas. ‘‘(3) TERMS.—Each member who is de- taxpayers, ‘‘December 31, 1999’’. ‘‘(C) recommend to the Secretary of the On page 348, line 6, strike ‘‘December 31, scribed in paragraph (1)(A) shall be ap- Treasury the removal of the National Tax- 1998’’ and insert ‘‘December 31, 1999’’. pointed for a term of 5 years, except that of On page 351, lines 13 and 14, strike ‘‘the the members first appointed— payer Advocate, ‘‘(D) oversee the operation of the Office of date of the enactment of this Act’’ and insert ‘‘(A) 1 member who is affiliated with the the Taxpayer Advocate and the Internal Rev- ‘‘December 31, 1999’’. same political party as the President shall On page 357, lines 6 and 7, strike ‘‘the date be appointed for a term of 1 year, enue Service Office of Appeals, of the enactment of this Act’’ and insert ‘‘(B) 1 member who is not affiliated with ‘‘(E) review and approve the Commis- ‘‘December 31, 1999’’. the same political party as the President sioner’s selection, evaluation, and compensa- On page 357, lines 9 and 10, strike ‘‘the date shall be appointed for a term of 2 years, tion of Internal Revenue Service senior ex- of the enactment of this Act’’ and insert ‘‘(C) 1 member who is affiliated with the ecutives who have program management re- ‘‘December 31, 1999’’. same political party as the President shall sponsibilities over significant functions of On page 357, strike lines 16 and 17, and in- be appointed for a term of 3 years, and the Internal Revenue Service, sert: ‘‘(D) 1 member who is not affiliated with ‘‘(F) review and approve the Commis- (B) December 31, 1999. the same political party as the President sioner’s plans for reorganization of the Inter- On page 362, lines 12 and 13, strike ‘‘the shall be appointed for a term of 4 years. nal Revenue Service, and 60th day after the date of the enactment of ‘‘(G) review and approve procedures of the A member of the Board may serve on the Internal Revenue Service relating to finan- this Act’’ and insert ‘‘December 31, 1999’’. Board after the expiration of the member’s On page 370, lines 17 and 18, strike ‘‘the cial audits required by law. term until a successor has taken office as a date of the enactment of this Act’’ and insert ‘‘(4) BUDGET.—To— member of the Board. ‘‘January 1, 1999’’. ‘‘(A) review and approve the budget request On page 371, line 11, insert: ‘‘This sub- ‘‘(4) REAPPOINTMENT.—An individual who is of the Internal Revenue Service prepared by section shall apply only with respect to described in paragraph (1)(A) may be ap- the Commissioner, taxes arising after June 30, 2000, and any li- pointed to no more than two 5-year terms on ‘‘(B) submit such budget request to the ability for tax arising on or before such date the Board. Secretary of the Treasury, and but remaining unpaid as of such date.’’ after ‘‘(5) VACANCY.—Any vacancy on the ‘‘(C) ensure that the budget request sup- the end period. Board— ports the annual and long-range strategic On page 374, lines 4 and 5, strike ‘‘180 days ‘‘(A) shall not affect the powers of the plans of the Internal Revenue Service. after the date of the enactment of this Act’’ Board, and ‘‘(5) TAXPAYER PROTECTION.—To ensure the and insert ‘‘July 1, 2000’’. ‘‘(B) shall be filled in the same manner as proper treatment of taxpayers by the em- On page 379, line 15, insert ‘‘, on and after the original appointment. ployees of the Internal Revenue Service. July 1, 1999,’’ after ‘‘shall’’. Any member appointed to fill a vacancy oc- The Secretary shall submit, without revi- On page 382, line 2, strike ‘‘60 days after curring before the expiration of the term for sion, the budget request referred to in para- the date of the enactment of this Act’’ and which the member’s predecessor was ap- graph (4) for any fiscal year to the President insert ‘‘on January 1, 2000’’. pointed shall be appointed for the remainder who shall submit, without revision, such re- On page 383, line 14, insert ‘‘, except that of that term. quest to Congress together with the Presi- the removal of any designation under sub- ‘‘(6) REMOVAL.— dent’s annual budget request for the Internal section (a)(2)(A) shall not be required to ‘‘(A) IN GENERAL.—A member of the Board Revenue Service for such fiscal year. begin before January 1, 1999’’ after ‘‘Act’’. may be removed at the will of the President. ‘‘(e) BOARD PERSONNEL MATTERS.— On page 385, lines 7 and 8, strike ‘‘the date ‘‘(B) COMMISSIONER OF INTERNAL REVENUE.— ‘‘(1) COMPENSATION OF MEMBERS.—Each of the enactment of this Act’’ and insert An individual described in paragraph (1)(B) member of the Board who is described in sub- ‘‘January 1, 2000’’. shall be removed upon termination of em- section (b)(1)(A) shall be compensated at an ployment. annual rate equal to the rate for Executive BOND AMENDMENT NO. 2341 ‘‘(c) GENERAL RESPONSIBILITIES.— Schedule IV under title 5 of the United States Code. The Commissioner shall receive Mr. BOND proposed an amendment to ‘‘(1) IN GENERAL.—The Board shall oversee the Internal Revenue Service in the adminis- no additional compensation for service on the bill, H.R. 2676, supra; as follows: tration, management, conduct, direction, the Board. Beginning on page 174, strike line 10 and and supervision of the execution and applica- ‘‘(2) STAFF.—The Chairperson of the Board all that follows through page 192, line 25, and tion of the internal revenue laws or related shall have the authority to hire such per- insert the following: statutes and tax conventions to which the sonnel as may be necessary to enable the SEC. 1101. INTERNAL REVENUE SERVICE BOARD United States is a party. Board to perform its duties. OF GOVERNORS. ‘‘(2) CONSULTATION ON TAX POLICY.—The ‘‘(3) PROCUREMENT OF TEMPORARY AND (a) IN GENERAL.—Section 7802 (relating to Board shall be responsible for consulting INTERMITTENT SERVICES.—The Chairperson of the Commissioner of Internal Revenue) is with the Secretary of the Treasury with re- the Board may procure temporary and inter- amended to read as follows: spect to the development and formulation of mittent services under section 3109(b) of title ‘‘SEC. 7802. INTERNAL REVENUE SERVICE BOARD Federal tax policy relating to existing or 5, United States Code. OF GOVERNORS. proposed internal revenue laws, related stat- ‘‘(f) ADMINISTRATIVE MATTERS.— ‘‘(a) ESTABLISHMENT.—There is established utes, and tax conventions. ‘‘(1) CHAIR.— within the Department of the Treasury the ‘‘(d) SPECIFIC RESPONSIBILITIES.—The Board ‘‘(A) TERM.—The Commissioner of Internal Internal Revenue Service Board of Governors shall have the following specific responsibil- Revenue shall serve as the chairperson of the (in this title referred to as the ‘Board’). ities: Board. ‘‘(b) MEMBERSHIP.— ‘‘(1) STRATEGIC PLANS.—To review and ap- ‘‘(B) POWERS.—Except as otherwise pro- ‘‘(1) COMPOSITION.—The Board shall be prove strategic plans of the Internal Revenue vided by a majority vote of the Board, the composed of 5 members, of whom— Service, including the establishment of— powers of the Chairperson shall include— ‘‘(A) 4 shall be individuals who are ap- ‘‘(A) mission and objectives, and standards ‘‘(i) establishing committees, pointed by the President, by and with the ad- of performance relative to either, and ‘‘(ii) setting meeting places and times, vice and consent of the Senate, and ‘‘(B) annual and long-range strategic plans. ‘‘(iii) establishing meeting agendas, and ‘‘(B) 1 shall be the Commissioner of Inter- ‘‘(2) OPERATIONAL PLANS.—To review and ‘‘(iv) developing rules for the conduct of nal Revenue. approve the operational functions of the In- business. Not more than 2 members of the Board ap- ternal Revenue Service, including— ‘‘(2) MEETINGS.—The Board shall meet at pointed under subparagraph (A) may be af- ‘‘(A) plans for modernization of the tax least once each month and at such other filiated with the same political party. system, times as the Board determines appropriate.

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‘‘(3) QUORUM; VOTING REQUIREMENTS; DELE- (b) CONFORMING AMENDMENT.—The table of ing records, statements, and special returns) GATION OF AUTHORITIES.—3 members of the sections for subchapter B of chapter 78 is is amended— Board shall constitute a quorum. All deci- amended by striking the item relating to (1) by striking ‘‘Every’’ and inserting sions of the Board with respect to the exer- section 7623. ‘‘(a) IN GENERAL.—Every’’, and cise of its duties and powers under this sec- (c) EFFECTIVE DATE.—The amendments (2) by adding at the end the following new tion shall be made by a majority vote of the made by this section shall take effect on the subsection: members present and voting. A member of date of enactment of this Act. ‘‘(b) SPECIAL RULE FOR RECORDS RELATING the Board may not delegate to any person TO NET OPERATING LOSSES.— the member’s vote or any decisionmaking LEAHY (AND ASHCROFT) ‘‘(1) IN GENERAL.—If, within 5 years of fil- authority or duty vested in the Board by the AMENDMENT NO. 2343 ing, the Secretary has not examined any re- provisions of this section. turn of tax for a taxable year in which a net ‘‘(4) REPORTS.—The Board shall each year Mr. KERREY (for Mr. LEAHY, for operating loss (as defined in section 172(c)) report with respect to the conduct of its re- himself and Mr. ASHCROFT) proposed an arises, the taxpayer may request the Sec- sponsibilities under this title to the Presi- amendment to the bill, H.R. 2676, retary to— dent, the Committees on Ways and Means, supra; as follows: ‘‘(A) enter into a formal record retention Government Reform and Oversight, and Ap- On page 262, after line 14, add the following agreement with respect to records relating propriations of the House of Representatives, new paragraph: to such taxable year, or and the Committees on Finance, Govern- ‘‘In the case of taxable periods beginning ‘‘(B) if an agreement under subparagraph mental Affairs, and Appropriations of the after December 31, 1998, the Secretary of the (A) cannot be mutually agreed upon, conduct Senate.’’. Treasury or the Secretary’s delegate shall an examination of such return. (b) CONFORMING AMENDMENTS.— establish procedures for all Tax Forms, In- ‘‘(2) TIME FOR ACTION.— (1) Section 5315 of title 5, United States structions, and Publications created in the ‘‘(A) IN GENERAL.—The Secretary shall Code, is amended by adding at the end the most recent 5-year period to be made avail- have 90 days from receipt of a request to following new item: able electronically on the Internet in a enter into the agreement under paragraph ‘‘Members, Internal Revenue Service Board searchable database not later than the date (1)(A). If an agreement cannot be reached of Governors.’’ such records are available to the public in within such 90-day period, the Secretary printed form. In addition, in the case of tax- shall immediately schedule the date for the (2) Section 7701(a) (relating to definitions) able periods beginning after December 31, examination under paragraph (1)(B). is amended by inserting after paragraph (46) 1998, the Secretary of the Treasury or the ‘‘(B) EXAMINATION.—Any examination the following new paragraph: Secretary’s delegate shall, to the extent under paragraph (1)(B) shall be completed ‘‘(47) BOARD.—The term ‘Board’ means the practicable, establish procedures for other within 1 year of the close of the 90-day period Board of Governors of the Internal Revenue taxpayer guidance to be made available elec- under subparagraph (A) unless the taxpayer Service.’’ tronically on the Internet in a searchable and the Secretary mutually agree to an ex- (3) The table of sections for subchapter A database not later than the date such guid- tension of the 1-year period. of chapter 80 is amended by striking the item ance is available to the public in printed ‘‘(C) EFFECT OF FAILURE.—If the Secretary relating to section 7802 the inserting the fol- form.’’ fails to meet any deadline under this para- lowing new item: graph, the net operating loss for the taxable ‘‘Sec. 7802. Internal Revenue Service Board DORGAN (AND REID) AMENDMENT year at issue shall be the amount included of Governors.’’ NO. 2344 on the return of tax. (c) EFFECTIVE DATE.— Mr. DORGAN (for himself and Mr. ‘‘(3) PAYMENT.—The Secretary may assess a fee of up to $10,000 on any taxpayer filing (1) IN GENERAL.—The amendments made by REID) proposed an amendment to the a request under this subsection in order to this section shall take effect on the date of bill, H.R. 2676, supra; as follows: the enactment of this Act. defray the Secretary’s expenses under this On page 394, between lines 15 and 16, insert: (2) INITIAL NOMINATIONS TO INTERNAL REV- subsection.’’ ENUE SERVICE BOARD OF GOVERNORS.—The SEC. 3803. STUDY OF TRANSFER PRICING EN- (b) DECLARATORY JUDGMENT PROCEEDING.— President shall submit nominations under FORCEMENT. (1) IN GENERAL.—Part IV of subchapter C of section 7802 of the Internal Revenue Code of (1) IN GENERAL.—The Internal Revenue chapter 76 is amended by adding at the end 1986, as added by this section, to the Senate Service Oversight Board shall study whether the following new section: not later than 6 months after the date of the the Internal Revenue Service has the re- ‘‘SEC. 7480. DECLARATORY JUDGMENT INVOLV- sources needed to prevent tax avoidance by enactment of this Act. ING NET OPERATING LOSS DEDUC- companies using unlawful transfer pricing TION. (3) EFFECT ON ACTIONS PRIOR TO APPOINT- methods. ‘‘(a) CREATION OF REMEDY.—In a case of ac- MENT OF BOARD OF GOVERNORS.—Nothing in (2) ASSISTANCE.—The Internal Revenue tual controversy involving a determination this section shall be construed to invalidate Service shall assist the Board in its study by by the Secretary of the correctness of a net the actions and authority of the Internal analyzing and reporting to the Board on its operating loss under section 172(c) under an Revenue Service prior to the appointment of enforcement of transfer pricing abuses, in- examination (or administrative appeal there- the members of the Internal Revenue Service cluding a review of the effectiveness of the of) pursuant to section 6001(b), upon the fil- Board of Governors. current enforcement tools used by the Inter- ing of an appropriate pleading, the Tax Court On page 194, line 14, strike ‘‘Oversight’’. may make a declaration with respect to the On page 195, line 2, strike ‘‘Oversight’’. nal Revenue Service to ensure compliance On page 197, lines 11 and 12, strike ‘‘Over- under section 482 of the Internal Revenue correctness of such deduction. Any such dec- sight’’. Code of 1986 and to determine the scope of laration shall have the force and effect of a On page 202, line 2, strike ‘‘Oversight’’. nonpayment of United States taxes by rea- decision of the Tax Court and shall be re- On page 212, line 13, strike ‘‘Oversight son of such abuses. viewable as such. Board’’ and insert ‘‘Board of Governors’’. (3) REPORT.—The Board shall report to ‘‘(b) LIMITATIONS.— On page 217, line 10, strike ‘‘Oversight Congress, not later than 12 months after the ‘‘(1) PETITIONER.—A pleading may be filed Board’’ and insert ‘‘Board of Governors’’. date of enactment of this Act, on the results under this section only by a taxpayer who On page 217, lines 22 and 23, strike ‘‘Over- of the study conducted under this sub- filed a request under section 6001(b). sight Board’’ and insert ‘‘Board of Gov- section, including recommendations for im- ‘‘(2) EXHAUSTION OF ADMINISTRATIVE REM- ernors’’. proving the Internal Revenue Service’s en- EDIES.—The court shall not issue a declara- On page 220, line 12, strike ‘‘Oversight forcement tools to ensure that multinational tory judgment or decree under this section Board’’ and insert ‘‘Board of Governors’’. companies doing business in the United in any proceeding unless it determines the On page 220, line 17, strike ‘‘Oversight States pay their fair share of United States petitioner has exhausted all administrative Board’’ and insert ‘‘Board of Governors’’. taxes. remedies within the Internal Revenue Serv- On page 235, line 2, strike ‘‘Oversight ice. A petitioner shall be deemed to have ex- Board’’ and insert ‘‘Board of Governors’’. hausted its administrative remedies as of the On page 258, line 8, strike ‘‘Oversight DEWINE AMENDMENTS NOS. 2345– close of the period described in section Board’’ and insert ‘‘Board of Governors’’. 2346 6601(b)(2)(B). (Ordered to lie on the table.) ‘‘(3) TIME FOR BRINGING ACTION.—No pro- REID AMENDMENT NO. 2342 Mr. DEWINE submitted two amend- ceeding may be initiated under this section Mr. REID proposed an amendment to ments intended to be proposed by him unless it is filed before the 91st day after the the bill, H.R. 2676, supra; as follows: to the bill, H.R. 2676, supra; as follows: last day of the period under section At the end of subtitle H of title III, add the AMENDMENT NO. 2345 6601(b)(2)(B).’’ following: On page 291, between lines 6 and 7, insert: (2) CONFORMING AMENDMENT.—The table of sections for part IV of subchapter C of chap- SEC. ll. ELIMINATION OF PAYMENTS FOR DE- SEC. 3108. PROCEEDINGS TO REDUCE COMPLI- TECTION OF UNDERPAYMENTS AND ANCE BURDENS RELATING TO NET ter 76 is amended by adding at the end the FRAUD. OPERATING LOSSES. following new item: (a) IN GENERAL.—Subchapter B of chapter (a) ADMINISTRATIVE PROCEEDINGS.—Section ‘‘Sec. 7480. Declaratory judgment involving 78 is amended by striking section 7623. 6001 (relating to notice or regulations requir- net operating loss deduction.’’

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4447 AMENDMENT NO. 2346 of the taxpayers represented by the clinic SHELBY (AND SESSIONS) On page 312, strike lines 1 through 6 and in- have incomes which do not exceed 250 per- AMENDMENT NO. 2355 cent of the poverty level, as determined in sert: Mr. SHELBY (for himself and Mr. (b) AMENDMENT RELATED TO SECTION 1011 accordance with criteria established by the SESSIONS) proposed an amendment to OF 1997 ACT.—Subsection (d) of Section 1059 Director of the Office of Management and of the 1986 Code is amended by adding at the Budget. the bill, H.R. 2676, supra; as follows: end the following paragraph: At the appropriate place in the bill insert ‘‘(7) EXCEPTION FOR EXCESS LOSS AC- AMENDMENT NO. 2352 the following new section: COUNTS.—Except as provided in regulations Beginning on page 377, line 20, strike all SEC. ll. CONGRESSIONAL REVIEW OF INTER- prescribed by the Secretary after March 26, through page 378, line 14, and insert: NAL REVENUE SERVICE RULES THAT INCREASE REVENUE. 1998, subsection (a) shall not apply to any ex- ‘‘(4) CRITERIA FOR AWARDS.—In determining (a) SHORT TITLE.—This section may be traordinary dividend to the extent that the whether to make a grant under this section, cited as the ‘‘Stealth Tax Prevention Act’’. regulations prescribed under section 1502 re- the Secretary— (b) IN GENERAL.—Section 804(2) of title 5, quire the creation or increase of an excess ‘‘(A) shall consider— United States Code, is amended to read as loss account. ‘‘(i) the numbers of taxpayers who will be follows: served by the clinic, including the number of ‘‘(2) The term ‘major rule’— taxpayers in the geographical area for whom GRAHAM AMENDMENT NO. 2347 ‘‘(A) means any rule that— English is a second language, ‘‘(i) the Administrator of the Office of In- ‘‘(ii) the existence of other low income tax- Mr. GRAHAM proposed an amend- formation and Regulatory Affairs of the Of- payer clinics serving the same population, ment to the bill, H.R. 2676, supra; as fice of Management and Budget finds has re- ‘‘(iii) the quality of the program offered by follows: sulted in or is likely to result in— the low income taxpayer clinic, including On page 176, between lines 4 and 5, insert ‘‘(I) an annual effect on the economy of the qualifications of its administrators and the following: $100,000,000 or more; qualified representatives, and its record, if ‘‘(vii) The needs and concerns of small ‘‘(II) a major increase in costs or prices for any, in providing service to low income tax- businesses.’’ consumers, individual industries, Federal, payers, and State, or local government agencies, or geo- ‘‘(iv) alternative funding sources available graphic regions; or to the clinic, including amounts received ASHCROFT (AND LEAHY) ‘‘(III) significant adverse effects on com- from other grants and contributions, and the AMENDMENT NO. 2348 petition, employment, investment, produc- endowment and resources of the institution tivity, innovation, or on the ability of Mr. ASHCROFT (for himself and Mr. sponsoring the clinic, and United States-based enterprises to compete LEAHY) proposed an amendment to the ‘‘(B) shall give preference to any clinic in with foreign-based enterprises in domestic bill, H.R. 2676, supra; as follows: existence on the date of the enactment of and export markets; or this section. On page 261, strike lines 4 through 7, and ‘‘(ii)(I) is promulgated by the Internal Rev- insert ‘‘and subscribed’’. enue Service; and COVERDELL (AND OTHERS) ‘‘(II) the Administrator of the Office of In- COVERDELL AMENDMENTS NOS. AMENDMENT NO. 2353 formation and Regulatory Affairs of the Of- 2349–2353 fice of Management and Budget finds that (Ordered to lie on the table.) the implementation and enforcement of the (Ordered to lie on the table.) Mr. COVERDELL (for himself, Mr. rule has resulted in or is likely to result in Mr. COVERDELL submitted four COCHRAN, Mr. FRIST, Mr. HAGEL, and any net increase in Federal revenues over amendments intended to be proposed Mr. INHOFE) submitted an amendment current practices in tax collection or reve- by him to the bill, H.R. 2676, supra; as intended to be proposed by them to the nues anticipated from the rule on the date of follows: bill, H.R. 2676, supra; as follows: the enactment of the statute under which the rule is promulgated; and On page 342, after line 24, add: AMENDMENT NO. 2349 ‘‘(B) does not include any rule promulgated At the appropriate place insert the fol- SEC. 3418. PROHIBITION OF RANDOM AUDITS. under the Telecommunications Act of 1996 lowing: (a) IN GENERAL.—Section 7602 (relating to and the amendments made by that Act.’’. SEC. . FAIRNESS WHEN COLLECTING A TAX DUE examination of books and witnesses), as TO MATHEMATICAL AND CLERICAL amended by section 3417, is amended by add- ing at the end the following new subsection: THOMPSON (AND OTHERS) ERRORS. AMENDMENT NO. 2356 (a) IN GENERAL.—Section 6404(d) of the In- ‘‘(f) LIMITATIONS ON AUTHORITY TO EXAM- ternal Revenue Code of 1986 (relating to INE.— Mr. THOMPSON (for himself, Mr. abatements) is amended to read as follows: ‘‘(1) IDENTIFICATION OF PURPOSE AND BASIS SESSIONS, and Mr. FAIRCLOTH) proposed ‘‘(d) ABATEMENT OF INTEREST, PENALTY, FOR EXAMINATION REQUIRED.—In taking any an amendment to the bill, H.R. 2676, ADDITIONAL, AMOUNT, AND ADDITION TO TAX action under subsection (a), the Secretary supra; as follows: ATTRIBUTABLE TO CERTAIN MATHEMATICAL, shall identify in plain language the purpose and the basis for initiating an examination On page 180, beginning with line 7, strike OR CLERICAL ERRORS.—In the case of an as- all through page 181, line 17. sessment of additional tax attributable to a in any notice of such an examination to any mathematical or clerical error (as defined in person described in subsection (a). section 6213(g)(2)), the Secretary shall abate ‘‘(2) RANDOM AUDITS PROHIBITED.—The Sec- KOHL (AND FEINGOLD) any interest, penalty, additional amount, retary shall not base, in whole or in part, the AMENDMENT NO. 2357 initiation of an examination of a return and addition to tax with respect to such as- Mr. KERREY (for Mr. KOHL, for him- sessment if, within 60 days after notice of under subsection (a) on the use of a statis- tically random return selection technique self, and Mr. FEINGOLD) proposed an such assessment is sent under section amendment to the bill, H.R. 2676, 6213(b)(1) by certified mail or registered from a population or subpopulation.’’ mail, the taxpayer pays, or files a request for (b) EFFECTIVE DATE.—The amendments supra; as follows: an abatement of, such assessment.’’. made by this section shall apply to examina- On page 229, insert between lines 15 and 16 (b) EFFECTIVE DATE.—The amendment tions initiated after April 29, 1998. the following new section: made by this section shall apply to notices SEC. 1106. REVIEW OF MILWAUKEE AND WAUKESHA INTERNAL REVENUE filed after the date of the enactment of this STEVENS AMENDMENT NO. 2354 Act. SERVICE OFFICES. (Ordered to lie on the table.) (a) IN GENERAL.— (1) REVIEW.—The Commissioner of Internal AMENDMENT NO. 2350 Mr. STEVENS submitted an amend- Revenue shall appoint an independent expert After ‘‘misconduct.’’ on page 252, line 18, ment intended to be proposed by them in employment and personnel matters to insert: to the bill, H.R. 2676, supra; as follows: conduct a review of the investigation con- ‘‘Such a terminated employee shall be On page 344, strike lines 7 through 9 and in- ducted by the task force, established by the barred from employment in the Federal serv- sert in lieu thereof the following: Internal Revenue Service and initiated in ice.’’ (b) BOOKS, ETC.—Section 6334(a)(3) (relat- January 1998, of the equal employment op- ing to books and tools of a trade, business, or portunity process of the Internal Revenue AMENDMENT NO. 2351 profession) is amended by striking ‘‘$1,250 in Service offices located in the area of Mil- On page 376, strike lines 3 through 15, and value’’ and inserting ‘‘$5,000 in value, and waukee and Waukesha, Wisconsin. insert: any permits issued by a State and required (2) CONTENT.—The review conducted under ‘‘(B) REPRESENTATION OF LOW INCOME TAX- under State law for the harvest of fish or paragraph (1) shall include— PAYERS.—A clinic meets the requirements of wildlife in the trade, business, or profession (A) a determination of the accuracy and subparagraph (A)(ii)(I) if at least 90 percent of the taxpayer’’. validity of such investigation; and

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4448 CONGRESSIONAL RECORD — SENATE May 6, 1998 (B) if determined necessary by the expert, SUBCOMMITTEE ON FORESTS AND PUBLIC LAND experienced a remarkable turn around. a further investigation of such offices relat- MANAGEMENT It is now better capitalized and better ing to— Mr. ROTH. Mr. President, I ask unan- positioned to serve farmers than ever (i) the equal employment opportunity imous consent that the Subcommittee before in its history. Congress played a process; and on Forests and Public Land Manage- (ii) any alleged discriminatory employ- role in this turn around by providing ment-related actions, including any alleged ment of the Committee on Energy and Farm Credit with a loan not a grant. violations of Federal law. Natural Resources be granted permis- The principal and interest on the loan (b) REPORT.—Not later than July 1, 1999, sion to meet during the session of the made possible under the 1987 legisla- the independent expert shall report on the Senate on Wednesday, May 6, for pur- tion is being repaid by the System sev- review conducted under subsection (a) (and poses of conducting a subcommittee eral years ahead of schedule. any recommendations for action) to Con- hearing which is scheduled to begin at Bruce Bohnsack’s interest in farm gress and the Commissioner of Internal Rev- 2:30 p.m. The purpose of this hearing is enue. policy issues is also reflected in his to receive testimony on S. 94, a bill to f service on the St. Paul District Farm provide for the orderly disposal of Fed- Credit Council and national Farm AUTHORITY FOR COMMITTEES TO eral lands in Nevada, and for the acqui- Credit Council boards of directors. As MEET sition of certain environmentally sen- chairman of these two boards, Bruce COMMITTEE ON ARMED SERVICES sitive lands in Nevada, and for other was as an advocate for Farm Credit in Mr. ROTH. Mr. President, I ask unan- purposes; and H.R. 449, a bill to provide the halls of Congress and in North Da- imous consent that the full Committee for the orderly disposal of certain Fed- kota. While he no longer serves on on Armed Services be authorized to eral lands in Clark County, Nevada, these boards, you can bet he will con- meet on Wednesday may 6, 1998, and and to provide for the acquisition of tinue to be active in North Dakota Thursday May 7, 1998, at 10 a.m. in environmentally sensitive lands in the Farmers Union, North Dakota State closed session, to mark up the Depart- State of Nevada. Township Officers Association, his ment of Defense Authorization Act for The PRESIDING OFFICER. Without local Lutheran church and other farm Fiscal Year 1999. objection, it is so ordered. and community groups. The PRESIDING OFFICER. Without f On behalf of North Dakota farmers, I objection, it is so ordered. ADDITIONAL STATEMENTS would like to thank Bruce Bohnsack COMMITTEE ON INDIAN AFFAIRS for his years of service to the Farm Mr. ROTH. Mr. President, I ask unan- Credit System and American agri- imous consent that the Senate Com- TRIBUTE TO BRUCE BOHNSACK culture. We wish him well in the years mittee on Indian Affairs be authorized ∑ Mr. CONRAD. Mr. President, I rise ahead.∑ to meet to conduct a hearing on today to give a brief tribute to Mr. Wednesday, May 6, 1998 at 10:00 a.m. on Bruce Bohnsack from my home state of f Tribal Sovereign Immunity, focusing North Dakota. Mr. Bohnsack operates on torts. The hearing will be held in a grain and soybean farm which has FIRST LIEUTENANT JOSEPH VAN room 106 of the Dirksen Senate Office been in his family for more than 100 OOSTERHOUT RETIRES FROM Building. years. As a producer, Bruce has a keen MICHIGAN STATE POLICE The PRESIDING OFFICER. Without interest in farm policy issues and has ∑ objection, it is so ordered. been active in the affairs of a farmer Mr. ABRAHAM. Mr. President, I rise SELECT COMMITTEE ON INTELLIGENCE owned credit cooperative—the Farm today to honor First Lieutenant Jo- Mr. ROTH. Mr. President, I ask unan- Credit System. seph Van Oosterhout, Post Commander imous consent that the Select Com- Bruce’s active involvement in Farm of the Michigan State Police. He is re- mittee on Intelligence be authorized to Credit has been on various levels. He is tiring from the State Police after 23 meet during the session of the Senate a member of the Federal Land Credit years and 9 months of dedicated serv- on Wednesday, May 6, 1998 at 11:30 am Association of Fargo and has served as ice. to hold closed mark-up on the FY 99 In- director of that association for 18 First Lieutenant Van Oosterhout telligence Authorization. years. Bohnsack joined the board of the joined the Michigan State Police after The PRESIDING OFFICER. Without St. Paul Farm Credit Bank in 1987—at serving in the United States Navy dur- objection, it is so ordered. a time of crisis for the bank and the ing the Vietnam War from 1967 to 1971. SPECIAL COMMITTEE ON AGING Farm Credit System as a whole. After serving in the military, he at- Mr. ROTH. Mr. President, I ask unan- The Farm Credit System of the mid- tended Western Michigan University imous consent that the Special Com- 1980s was fighting a battle for survival. where he worked towards the Bach- mittee on Aging be permitted to meet One of the things that saved the Sys- elor’s Degree he later earned while on May 6, 1998 at 2:00 p.m. for the pur- tem was the leadership of Farm Credit with the State Police. He was enlisted pose of conducting a hearing. board members like Bruce Bohnsack. in the Michigan State Police in 1974, The PRESIDING OFFICER. Without Bruce and his colleagues in St. Paul first stationed at the Benton Harbor objection, it is so ordered. made a number of sound business deci- Post and later to the Detroit Post and SUBCOMMITTEE ON COMMUNICATIONS sions of critical importance to the in- White Pigeon Post. In 1982, Van Mr. ROTH. Mr. President, I ask unan- stitutions and the farmers they serve. Oosterhout was promoted to Sergeant imous consent that the Communica- One such decision was to combine the in the Traffic Services Division in Lan- tions Subcommittee of the Senate St. Paul and St. Louis Farm Credit sing. In 1987, he was assigned as Assist- Committee on Commerce, Science, and Banks to create AgriBank, FCB. This ant Post Commander at the Ypsilanti Transportation be authorized to meet first voluntary merger of Farm Credit Post. In 1992, he was promoted to Post on Wednesday, May 6, 1998, at 9:30 a.m. banks in the history of the System Commander at the Iron Mountain Post. on oversight of the Common Carrier helped to ensure the efficiency and ef- Also in 1992, he was transferred to the Bureau. fectiveness of the wholesale bank while Negaunee Post as Post Commander The PRESIDING OFFICER. Without retaining local accountability at the where he has served ever since. objection, it is so ordered. association level. Throughout his career, First Lieu- SUBCOMMITTEE ON EUROPEAN AFFAIRS Bruce and other farmer elected lend- tenant Van Oosterhout has received a Mr. ROTH. Mr. President, I ask unan- ers in the System also provided helpful great deal of recognition for his excel- imous consent that the Subcommittee input to the Committee on Agriculture lent service. In 1988, he was recognized on European Affairs be authorized to when we drafted the Agricultural Cred- as being the police officer in Michigan meet during the session of the Senate it Act of 1987. The 1987 Act is one of the who had contributed most to traffic on Wednesday, May 6, 1998 at 2:00 p.m. great success stories in recent years for safety. He received one Departmental to hold a hearing. which Congress and the Farm Credit Award for breaking a crime ring and The PRESIDING OFFICER. Without System can both be justifiably proud. another for making a drug bust that objection, it is so ordered. Since 1987 the Farm Credit System has had ties to several states.

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — SENATE S4449 Van Oosterhout, husband to Becky For similar reasons, I supported an Clinton and the Democrats in the Bal- and father to Leah, Sarah, Joe and An- amendment offered by Senator GORTON anced Budget Act which allows parents drew, will be remembered for his excel- to give states the option of (1) con- to save $500 a year for college expenses. lent service and dedication to the De- tinuing to receive federal education The Balanced Budget Act, which was partment of State Police, friendly de- programs under the current funding signed into law by the President, does meanor and concern for those he system; (2) receiving federal education not differentiate between private and worked with. I extend my warmest con- programs as a block grant going di- public colleges. It is inconsistent to gratulations to him on his retirement.∑ rectly to the state without federal reg- subsidize a more limited number of col- f ulations; or (3) receiving federal edu- lege students and not offer the same cation programs in a block grant going benefit in K–12 education. MICHIGAN SPORTS HALL OF FAME directly to the local education agency Senator MOSELY-BRAUN offered an INDUCTEES without federal regulations. By allow- amendment to eliminate the Coverdell ∑ Mr. ABRAHAM. Mr. President, I rise ing local education agencies to receive A+ Savings accounts and to use the today to honor five men who have been federal resources without federal red money instead to create a federal newly elected to the Michigan Sports tape and bureaucracy, we will be put- school construction program. While I Hall of Fame. Earvin ‘‘Magic’’ John- ting more power and flexibility in the recognize the need for adequate school son, one of basketball’s all time great- hands of the people most closely in- construction, I believe the Coverdell est players who began his career with volved with educating children. As a bill more adequately addresses the Michigan State University and gained safe-guard to ensure that an appro- needs for school construction through further fame as a Los Angeles Laker; priate level of federal funding con- a provision included in the legislation Leonard ‘‘Red’’ Kelly, one of the Red tinues, Senator GORTON’s amendment offered by Senator GRAHAM. This provi- Wings greatest players who was re- insists that if future funding dips below sion fosters public private partnerships cently named one of the 50 greatest the current level of funding, the pro- for school construction and maintains players in NHL history; Bob Reynolds, grams would be forced back into the the function of school construction at the legendary sports broadcaster at the current categorical funding. the local level. The bill provides for $3 radio station WJR in Detroit; Isiah I also supported an amendment of- billion in tax-exempt bond funding for Thomas, possibly the greatest Detroit fered by Senators MACK and D’AMATO school construction. Piston of all time; and George Webster, which would allow states to use exist- I voted against an amendment of- All American linebacker from Michi- ing block grant funds under the Ele- fered by Senator KENNEDY which would gan State University. mentary and Secondary Education Act forgive a maximum of $8,000 in student In addition to the inductees, Peter to fund teacher testing and merit pay loans for teachers entering ‘‘high need Karmanos, Jr., Chairman of the programs in the state. I believe this areas or subjects’’ and would pay for Compuware Corporation and owner of amendment would allow states to de- this provision by eliminating the A+ the Carolina Hurricanes of the Na- velop important programs to help en- Savings Accounts. I opposed this tional Hockey League will receive the sure quality teachers in the classroom amendment because the Higher Edu- Gerald R. Ford Sports Person of the and to pay those teachers accordingly. cation Reauthorization Act approved Year Award. All of these men will be Finally, I supported an amendment by the Senate Labor Committee con- honored at the 44th Annual Induction that was offered by Senator KAY BAI- tains similar incentives of student loan Dinner of the Michigan Sports Hall of LEY HUTCHISON which clarified the fed- forgiveness for teachers entering inner- Fame on Wednesday evening, May 20, eral position on same-sex schools. This city or rural teaching environments. 1998 at Detroit’s Cobo Center. amendment would allow same-sex I opposed an amendment offered by I want to extend my sincerest con- classrooms and schools to be eligible to Senator BOXER which would create a gratulations to all of these men. I am receive federal funding as long as com- new $250 million federal after-school confident that the event will be a great parable education opportunities are of- program. While I support after-school success.∑ fered for students of both sexes. I be- mentoring and tutoring programs for f lieve the federal government must children, I believe these programs allow states and communities to find COVERDELL A+ SAVINGS AC- should be operated at the local level. In creative solutions to meeting the edu- addition, the federal government al- COUNTS BILL—EXPLANATION OF cational needs of their children. VOTES ready funds 4 after-school care pro- Again, I support the philosophy be- grams and 19 existing federal programs ∑ Mr. ABRAHAM. Mr. President, the hind the Coverdell bill and the Gorton that provide tutoring and mentoring Senate recently voted on an important amendment which places control, re- for students on a one-on-one basis. piece of legislation, the Coverdell A+ sources, and decision making with par- I am encouraged by the Senate’s ac- Savings Account bill. I believe it is im- ents and local communities. Unfortu- tion on the Coverdell A+ Savings bill portant to clarify my position on sev- nately, most of the amendments of- and the amendment offered by Senator eral amendments offered to this bill. fered by Democrats, while noble ideas, GORTON. I look forward to additional In general, I believe the best way to fund their programs by eliminating the debate on education issues and new and ensure effective education policy is to education savings accounts and by fo- innovative proposals to place greater direct as many dollars and resources as cusing the programs and power at the control and resources at the local possible to the local level. By giving lo- federal level. While there were many level.∑ calities the resources and flexibility interesting ideas debated, such as the f they need, I am confident that commu- amendment offered by Senator LEVIN nities and parents will best direct which would increase the lifetime REGARDING INTERNATIONAL those funds to meet the unique and di- learning education credit for teachers PROJECT EVALUATING AND FA- verse needs of their children. For this or the amendment offered by Senator CILITATING INTERNATIONAL EX- reason, I support the Coverdell A+ Sav- LANDRIEU to provide incentive grants CHANGE OF ADVANCED TECH- ings Account bill. This legislation, puts for Blue Ribbon Schools, each proposal NOLOGIES resources at the most local level: with was paid for by defunding the A+ Sav- Mr. ROTH. Madam President, I ask parents. Parents will now have the ings Accounts. For that reason, I could unanimous consent that the Senate ability to save for and meet the edu- not support these weakening amend- proceed to the immediate consider- cational needs of their children. ments. ation of S. Res. 224, submitted earlier Whether it means hiring a tutor for Senator GLENN offered an amend- by Senator STEVENS and others. their child, buying a home computer, ment which would eliminate the abil- The PRESIDING OFFICER. The finding an alternative educational set- ity of parents to use their tax-free sav- clerk will report. ting, or saving for college, parents will ings to pay for private school tuition The legislative clerk read as follows: be in the position to take positive steps or homeschooling expenses. The provi- A resolution (S. Res. 224) expressing the towards providing a positive edu- sion included in the A+ bill is identical sense of the Senate concerning an inter- cational future for their children. to the provision supported by President national project to evaluate and facilitate

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4450 CONGRESSIONAL RECORD — SENATE May 6, 1998 the international exchange of advanced tech- The resolution (S. Res. 224) was morning at 9:30 a.m., the Senate will nology. agreed to. resume consideration of the Thompson- The PRESIDING OFFICER. Is there The preamble was agreed to. Sessions amendment to H.R. 2676, the objection to the immediate consider- The resolution, with its preamble, is IRS reform bill. Under the previous ation of the resolution? as follows: order, the time between 9:30 and 10 will There being no objection, the Senate S. RES. 224 be equally divided for debate on the proceeded to consider the resolution. Whereas currently in the post Cold-War Thompson-Sessions amendment. Fol- world, there are new opportunities to facili- lowing the conclusion or yielding back Mr. STEVENS. Madam President, of the time, the Senate will proceed to last spring, the Duma Chairman of the tate international political and scientific co- operation on cost-effective and advanced in- vote on or in relation to the amend- Committee on the Problems of the Rus- novative nuclear waste technologies; ment. sian North, Vladimir Goman, met with Whereas there is increasing public interest Senators are reminded that a unani- Senator COCHRAN and myself to ask us in monitoring and remediation of nuclear for our participation in a new project wastes; and mous consent agreement was reached which would help facilitate Russia’s ef- Whereas it is in the best interest of the limiting amendments to the IRS bill. It forts in the remediation of nuclear United States to explore and develop options is hoped that following the 10 a.m. wastes. with the international community to facili- vote, Senators will come to the floor to tate the exchange of evolving advanced nu- offer their amendments under short Since that meeting, the Russian clear waste technologies: Now, therefore, be Duma has passed a Resolution pledging time agreements. The cooperation of it all Members will be necessary in order funding and infrastructure for the Ad- Resolved, That it is the sense of the Senate vanced Technology Research Project for the Senate to complete action on that—the President should instruct the Sec- this very important piece of legisla- (ATRP). In Europe, industry and key retary of Energy, in consultation with the decision makers of the European Par- Secretary of State, the Secretary of Defense, tion. Therefore, rollcall votes will liament, the German Bundestag, the the Administrator of the Environmental occur throughout Thursday’s session Union of European Labor Parties, and Protection Agency, and other officials as ap- with respect to the IRS reform bill or several national nuclear waste manage- propriate, to consider the Advanced Tech- any other legislative or executive nology Research Project (known as ‘‘ATRP’’) items cleared for action. ment and research and development in- and report to the Committee on Energy and stitutions, including the Swiss Natural Resources of the Senate on: f NAGRA, have all pledged their support (1) whether the United States should en- ADJOURNMENT UNTIL 9:30 A.M. for the ATRP. courage the establishment of an inter- TOMORROW This ATRP, originally proposed by national project to facilitate the evaluation and international exchange of data (includ- Mr. ROTH. Madam President, if there the Russian Duma, with participation ing cost data) relating to advanced nuclear is no further business to come before from academia, private industry and waste technologies, including technologies the Senate, I now ask unanimous con- governmental and public organizations, for solid and liquid radioactive wastes and sent that the Senate stand in adjourn- is a privately funded, neutral organiza- contaminated soils and sediments; ment under the previous order. tion. It will facilitate information ex- (2) whether such a project could be funded There being no objection, the Senate, change on nuclear waste management privately through industry, public interest, and scientific organizations and adminis- at 6:21 p.m., adjourned until Thursday, technologies, and the development of a May 7, 1998, at 9:30 a.m. worldwide nuclear waste management tered by an international non-governmental, nonprofit organization, with operations in f technology marketplace. It is the goal the United States, Russia, Japan, and other of this project to advance self suffi- countries that have an interest in developing NOMINATIONS ciency in nuclear waste management in such technologies; and Executive nominations received by Russia and to globally provide ad- (3) any legislation that the Secretary be- the Senate May 6, 1998: vanced and affordable solutions to nu- lieves would be required to enable such a clear waste. project to be undertaken. CENTRAL INTELLIGENCE AGENCY ATRP will be entirely privately fund- f L. BRITT SNIDER, OF VIRGINIA, TO BE INSPECTOR GEN- ERAL, CENTRAL INTELLIGENCE AGENCY, VICE ed through private industry, public in- APPOINTMENTS BY THE VICE FRDERICK PORTER HITZ, RESIGNED. terest, and scientific organizations. PRESIDENT This Private-Public Partnership will be The PRESIDING OFFICER. The IN THE ARMY implemented through ATRP’s global Chair, on behalf of the Vice President, THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT nuclear waste technology clearing- IN THE UNITED STATES ARMY TO THE GRADE INDICATED pursuant to 22 U.S.C. 276d–276g, as UNDER TITLE 10, U.S.C., SECTION 624: house, database, conferences, work- amended, appoints the following Sen- shops, and trade shows worldwide. The ators as members of the Senate Delega- To be major general objective is advanced, safer, and effi- tion to the Canada-U.S. Inter- JOHN P. ABIZAID, 0000 cient nuclear waste management at the parliamentary Group during the Sec- JOSEPH W. ARBUCKLE, 0000 lowest possible cost. ond Session of the 105th Congress, to be BARRY D. BATES, 0000 WILLIAM G. BOYKIN, 0000 The management of nuclear waste is held in Nantucket, Massachusetts, May CHARLES C. CAMPBELL, 0000 one of the world’s most pressing con- 14–18, 1998: The Senator from Iowa (Mr. JAMES L. CAMPBELL, 0000 cerns and perhaps Russia’s greatest ec- GRASSLEY); the Senator from Min- GEORGE W. CASEY, JR., 0000 DEAN W. CASH, 0000 ological threat. ATRP will help Russia nesota (Mr. GRAMS). DENNIS D. CAVIN, 0000 help itself by developing an inter- f JOSEPH M. COSUMANO, JR., 0000 national market for technology ex- PETER M. CUVIELLO, 0000 change. It will also benefit United ORDERS FOR THURSDAY, MAY 7, ROBERT F. DEES, 0000 1998 JOHN C. DOESBURG, 0000 States and all other nuclear nations by JAMES E. DONALD, 0000 making nuclear waste management Mr. ROTH. Madam President, I ask BENJAMIN S. GRIFFIN, 0000 unanimous consent that when the Sen- DENNIS K. JACKSON, 0000 technology more readily available in JAMES T. JACKSON, 0000 the international market place. ate completes its business today, it WILLIAM J. LENNOX, JR., 0000 I hope that my colleagues will join stand in adjournment until 9:30 a.m. on ALBERT J. MADORA, 0000 me in supporting this Resolution which Thursday, May 7, 1998. I further ask DAVID D. MC KIERNAN, 0000 unanimous consent that on Thursday, GEOFFREY D. MILLER, 0000 will help us all work toward an inter- WILLIE B. NANCE, JR., 0000 national solution to this very pressing immediately following the prayer, the ROBERT W. NOONAN, JR., 0000 issue of nuclear wage management. routine requests through the morning KENNETH L. PRIVRATSKY, 0000 hour be granted, and the Senate then HAWTHORNE L. PROCTOR, 0000 Mr. ROTH. Madam President, I ask ROBERT J. ST. ONGE, JR., 0000 resume consideration of the Thompson- ROBERT L. VAN ANTWERP, JR., 0000 unanimous consent that the resolution Sessions amendment No. 2356 to H.R. DANIEL R. ZANINI, 0000 be agreed to; that the preamble be 2676, the IRS reform bill. IN THE NAVY agreed to; that the motion to recon- The PRESIDING OFFICER. Without sider be laid upon the table; and that objection, it is so ordered. THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT any statements relating to the resolu- IN THE UNITED STATES NAVY TO THE GRADE INDICATED f WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND tion appear at the appropriate place in RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: the RECORD. PROGRAM The PRESIDING OFFICER. Without Mr. ROTH. Madam President, for the To be vice admiral objection, it is so ordered. information of all Senators, tomorrow GEORGE P. NANOS, JR., 0000

VerDate Mar 15 2010 00:34 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 9801 E:\1998SENATE\S06MY8.REC S06MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 6, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E769 EXTENSIONS OF REMARKS

INTRODUCING A HEALTH QUALITY a vote of 98 to zero. Even Senator KENNEDY PERSONAL EXPLANATION RESOLUTION voted for it, reluctantly. I want us to approve the Nickles resolution in the House, so that we HON. PETER J. VISCLOSKY HON. RICHARD K. ARMEY may not be outdone in our zeal for good by OF INDIANA OF TEXAS our distinguished colleagues across the Ro- IN THE HOUSE OF REPRESENTATIVES tunda. IN THE HOUSE OF REPRESENTATIVES Wednesday, May 6, 1998 f Wednesday, May 6, 1998 Mr. VISCLOSKY. Mr. Speaker, yesterday, I Mr. ARMEY. Mr. Speaker, today I am intro- REMEMBRANCE OF ANNA M. was in my district to participate in Indiana's ducing a resolution on health-care quality. It SULLIVAN primary elections. As a result I was unable to expresses the sense of the House that Con- vote on roll call votes #122±126. If I had been gress not pass any legislation that: Makes HON. ROBERT A. WEYGAND present, I would have voted ``no'' on roll call health insurance unaffordable; swells the OF RHODE ISLAND #122, and ``yes'' on roll call #123±126. f ranks of the uninsured; diverts scarce health IN THE HOUSE OF REPRESENTATIVES resources to lawyers and bureaucrats; or im- Wednesday, May 6, 1998 PRAISE FOR MS. ELEANOR EP- poses political considerations on medical prac- STEIN, SPRING HONOREE OF THE Mr. WEYGAND. Mr. Speaker, today I rise to tice, such as so-called body-part mandates. UNITED JEWISH APPEAL OF mark the passing of Mrs. Anna M. Sullivan of The resolution is needed to remind us our BERGEN COUNTY, NEW JERSEY first duty is to ``do no harm,'' and thus not to Cranston, Rhode Island, a dear friend and pass any so-called ``quality'' bill that would in dedicated public servant. Anna has been a fact do serious harm to the quality of patient leader in her church and her community, an HON. STEVE R. ROTHMAN care. I am thinking of bills like the White inspiration to her family and friends, and has OF NEW JERSEY House-Democrat Leadership ``Patient Bill of left behind a legacy of public service. IN THE HOUSE OF REPRESENTATIVES Rights Act,'' a bill that would have the per- Music was a large part of her life. At the Wednesday, May 6, 1998 verse effect of eliminating every kind of man- age of 13, Anna began to play the organ and Mr. ROTHMAN. Mr. Speaker, I rise today to aged-care plan except restrictive HMOs, en- direct the choir for her church. Through 53 honor a truly generous and caring woman in able nurses and doctors to go on strike, and years and five children that devotion never my community in Bergen County, New Jer- drive up premiums and drive down coverage changed. Mrs. Sullivan was also the elemen- seyÐMs. Eleanor Epstein of Englewood Cliffs. by letting trial lawyers sue health plans for tary music supervisor for the Warwick public Eleanor Epstein has carved a place for herself malpractice. Worst of all, this liberal dream bill school system for many years. as an energetic and forceful advocate for chil- would let HHS bureaucrats define ``medical If Anna is to be remembered for one issue, dren and the elderly. She appreciates her her- necessity,'' which is as good as giving them it is her strong, lifelong fight in opposition to itage and understands that being part of a power over life and death. It is an audacious abortion and support of the family. Anna's community is about giving others a hand up step toward Clintoncare. work as a right to life advocate began in 1970, so that each of us has the tools to succeed. I am the first to acknowledge the serious when she and others organized a group to op- This month, Ms. Epstein is being honored flaws in today's health-care system. While pose the attempts by some lawmakers to by the United Jewish Appeal for her many America leads the world in excellent medical make abortion legal. years of outstanding service to the community. drugs, devices, and doctors, and while insur- They originally called themselves the Con- Her list of accomplishments leave no doubt of ance plans are improving every day thanks to stitutional Right to Life Committee, but later her position as the consummate community market forces, the fact is we have real prob- changed the name to Rhode Island State leader. She helped found the United Jewish lems in our health system. Right to Life. In 1979, Anna founded Right to Community Center on the Palisades while also Government policy, both state and federal, Life Services, which provides baby clothes serving on the Women's Division of the former makes insurance unaffordable for millions. and equipment to as many as two thousand United Jewish Fund of Englewood, New Jer- The tax break for health insurance discrimi- needy families each year. sey, the United Jewish Appeal's Dor L'Dor So- nates against the unemployed and small-busi- Anna lobbied legislators on a number of top- ciety and as a Ruby Lion of Judah. ness workers. ics she felt passionately about. Anna led the Through these organizations, she reached Many employers offer their workers no real fight against assisted suicide in Rhode Island. out to the entire community, providing family choice of plans or doctors. Another issue of particular concern to Anna activities, support, and aid to the entire citi- And of course we have all heard about the was increasing nutritional support for pregnant zenry of North Jersey. It is through the pas- bad health plans, the ones that deny service women. She helped underprivileged people sions and drive of people like Eleanor Epstein in violation of contract, or that let remote bu- and young women who were pregnant. While that empower hometowns across America to reaucrats with cook books impose medical de- she met many people she disagreed with, she evolve beyond simple houses and businesses cisions over the advice of trained, on-site always treated them with respect. into vibrant, caring communities. She brings health professionals. I do not know how many In 1982, she received the Monsignor with her an enormous strong civic pride and a of these accusations are true, but even one is Charles W. McConnell Memorial Award from deeply ingrained sense of service and concern too many if it is true and preventable. So this the Diocese of Providence's Catholic Youth for fellow human beings that spreads to all problem demands our serious attention. Organization. In 1985, she became the first those with whom she comes in contact. But in trying to improve, we have an obliga- woman to receive the Hope Award from the Ms. Epstein learned the value of community tion not to destroy. We should serve the good Rhode Island State Council for the Knights of and service from her parents during her child- of patients and consumers, and not the finan- Columbus. In 1989, in a ceremony at the Ca- hood in Brooklyn, New York. From those cial interests of certain industries or trade as- thedral of SS Peter and Paul, she was award- strong spiritual and family roots, she not only sociations. Above all, we should not assist ed the Papal Cross, ``Pro Ecclesia et gave to the community, she dedicated herself President Clinton in his openly acknowledged Pontifice''. to a strong marriage of 50 years to her hus- scheme to socialize our health system step by Anna, who leaves behind ten children and band Edward, another devoted and beloved step. nine grandchildren, never forgot her family de- figure in our community. Together they raised In passing this resolution, the House would spite her many public service activities. Anna four loving, caring and equally philanthropic be going on record in favor of legislation that will be missed by her friends, family, and com- sons who have given them eleven grand- promotes rather than degrades quality. It is munity. I ask my colleagues to join me in ex- children that they cherish beyond words. identical to a resolution by Senator NICKLES of tending our deepest sympathies to her family Mr. Speaker, all of this being said, I wish to Oklahoma that recently passed the Senate by at this time. take a moment and wish Ms. Epstein all the

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E770 CONGRESSIONAL RECORD — Extensions of Remarks May 6, 1998 best and continued success with her endeav- of the American population in a whole new ended the threat of teacher strikes in Con- ors in Bergen County. A simple `thank you' range of settings. Registered nurses' edu- necticut. In 1986, Mr. Mondani helped pass can not convey what our entire community cation and holistic approach is especially suit- the Education Enhancement Act, which lifted owes to Ms. Epstein; however, I hope that all ed to meet the renewed emphasis on primary teachers' salaries to a level comparable to of my colleagues have individuals in their re- and preventive health care in the managed those in other professions. With the enactment spective districts like Eleanor Epstein because care environment. And with an aging Amer- of these two important pieces of legislation it is people like her that make the United ican population, the demand for registered and various other contributions, the CEA States of America a more caring, safer and nursing services in the home care field will be Board of Directors voted unanimously in 1994 more wonderful place to live. greater than ever. to grant Mr. Mondani the CEA Friend of Edu- f National Nurses Week begins on May 6, cation Award. As a lasting tribute, the CEA marked as RN Recognition Day, and ends on even renamed the award in his honor. TRIBUTE TO GOODLOE SUTTON May 12, the birthday of Florence Nightingale, Mr. Mondani began his career in public edu- the founder of nursing as a modern profes- cation as a teacher in Moodus in 1959. He HON. EARL F. HILLIARD sion. Nurses, as a rule, do not work in plush joined the CEA staff in 1963 as a research OF ALABAMA or serene environments. Indeed, they often consultant and later was promoted to director IN THE HOUSE OF REPRESENTATIVES work long hours at relatively low pay, and with of research. From 1965 to 1971, he served in the state legislature as a Representative and Wednesday, May 6, 1998 far fewer thanks for their dedicated work. During this week, I would like to ask all my a Senator. On July 1, 1971, he became the Mr. HILLIARD. Mr. Speaker, I rise today to colleagues to join me in honoring the reg- CEA's fifth full-time executive director since its offer my congratulations to one of Alabama's istered nurses who care for all of us and, fur- 1848 founding. He continued as director until finest and most ethical journalists, Mr. ther, celebrate the registered nursing profes- March 1, 1994 holding the position longer than Goodloe Sutton of Linden, Alabama. sions' continuing commitment to improve the any previous director. In 1991, he was ap- Mr. Sutton's series on police corruption in safety and quality of patient care and availabil- pointed Vice Chairman of the State Board of Marengo County, Alabama was recently en- ity of health care services for all in our health Governors for Higher Education by Governor tered into the competition for the prestigious care system. Lowell P. Weicker Jr. He was reappointed in Pulitzer Prize . . . the Academy Award of In closing, Mr. Speaker, I note that as a reg- 1997 to a third term by Governor John Row- journalism. istered nurse myself, I am proud to be associ- land. Since October 1997 he had been serving I am personally very proud for Mr. Sutton, ated with a group of individuals who exemplify a six month appointment as the interim execu- but I am equally proud for the citizens of the highest qualities of selflessness, compas- tive director of the Georgia Association of Marengo County because they have such a sion and concern for others. Educators. brave and fearless man of letters to look after f Mr. Mondani was a remarkable man. Con- their interests. necticut is most certainly a better place as a Mr. Sutton's series of articles uncovered AMERICAN VICTIMS OF result of his work for children, teachers, rampant law enforcement corruption, the mis- TERRORISM schools and higher education. He knew how use of public funds, and the uncovering of one to deal with tough questions concerning edu- of the largest drug rings ever revealed in the HON. JENNIFER DUNN cation and did so with a sense humor and counties history. OF WASHINGTON goodwill. Because of Mr. Sutton's public integrity, he IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, Thomas P. Mondani was a suffered many, many injustices at the hands of rare kind of man, a man who devoted his Wednesday, May 6, 1998 the Sheriff's Department, as well as many whole life to a cause that has changed so death threats. Ms. DUNN. Mr. Speaker, while I missed roll- many lives for the better. I have lost a good His story is a shining example of the best call vote 125, I would have voted in support of friend, and the State of Connecticut, its teach- and the brightest which occurs in America House Concurrent Resolution 220. ers, students and families, have lost one too. when a single citizen has the bravery to stand This sense of the Congress demanding that He will surely be missed by all of us who had alone, in the face of mounting pressure and Yasir Arafat and the Palestinian Authority the pleasure to know him. I am sure the odds, and stands up for justice and equality. transfer to the United States, for prosecution, House will join me in expressing our most sin- Mr. Sutton's quest for both the truth, as well those residents of its territory who are sus- cere sympathy to Mr. Mondani's family. as for the principle of equal justice under the pected in the killings of American citizens is f law is both laudable and meritorious. sensible and just. The harboring of suspected Mr. Sutton should be commended by the terrorists who attack Americans at home and RECOGNITION OF RHODE ISLAND’S Congress and the American people for his abroad is deplorable, and measures to punish SMALL BUSINESS ADMINISTRA- truly American heroism and dedication to the these terrorist must be taken. TION truth. Well done, Goodloe Sutton. Again, for the record, I join my colleagues in f support of this sense of the Congress regard- HON. ROBERT A. WEYGAND ing American victims of terrorism. OF RHODE ISLAND NATIONAL NURSES WEEK f IN THE HOUSE OF REPRESENTATIVES HON. EDDIE BERNICE JOHNSON TRIBUTE TO THOMAS P. MONDANI Wednesday, May 6, 1998 OF TEXAS Mr. WEYGAND. Mr. Speaker, I rise today to IN THE HOUSE OF REPRESENTATIVES HON. SAM GEJDENSON commend the Rhode Island branch of the Small Business Administration. Last year the Wednesday, May 6, 1998 OF CONNECTICUT IN THE HOUSE OF REPRESENTATIVES Rhode Island District Office set a record for Ms. EDDIE BERNICE JOHNSON of Texas. the number of loans they issued. 511 different Mr. Speaker, I rise today to honor the work of Wednesday, May 6, 1998 loans were issued totaling $101.7 million ap- America's 2.6 million registered nurses to save Mr. GEJDENSON. Mr. Speaker, I rise today proved for Fiscal Year 1997. lives and maintain the health of millions of in- to note with great sorrow the passing of The Small Business Administration provides dividuals in the United States. Thomas P. Mondani, a man who will long be financial, technical and management assist- May 6±12 is National Nurses Week. Using remembered for his dedication and commit- ance to help Americans start, run and grow the theme ``Nursing: Healthcare With a Human ment to Connecticut public schools. their businesses. With a portfolio of business Touch,'' the American Nurses Association and For two decades Mr. Mondani served as the loans, loan guarantees and disaster loans, the its 53 consitutent associations will spend this director of the Connecticut Education Associa- SBA is the nation's largest single financial week highlighting the diverse ways in which tion (CEA) and became a champion, and backer of small businesses. The SBA offers registered nurses, the largest health care pro- friend, for Connecticut public school teachers. management and technical assistance to small fession, are working to improve health care. He worked tirelessly to achieve improvements business owners as a compliment to the finan- From acute bedside nursing to long term in both the professional rights and benefits of cial services it provides. The Small Business care, the depth and breadth of the nursing educators. Administration is committed to providing finan- profession is rising to meet the challenges of In 1979, he fought for the passage of a cial support to entrepreneurs in order to con- the different and emerging health care needs binding arbitration law for teachers, which tinue the economic recovery and viability of May 6, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E771 Rhode Island. Access to capital and sound husband Michael have raised two beautiful of her most noteworthy accomplishments was business advice are critical to growth and are and intelligent children in Zachary and Me- obtaining a 4R grant for mini-computer labs in often cited as a major factor in business suc- lissa. Morocco Elementary School's kindergarten cess. Ms. Speaker, all of this being said, I wish to and first grade. The hundreds of thousands of small busi- take a moment and wish Jackie Kempner all Marilyn Edwards has been a science teach- nesses across this country provide the major- the best and continued success with her en- er with Taft Middle School for over 20 years. ity of jobs to Americans. These loans have al- deavors in Bergen County and throughout the During this time, she has become known for lowed entrepreneurs to start their own busi- world. A simple ``thank you'' cannot convey making the success of her students her top nesses, given small businessmen the capital what we and future generations owe to Ms. priority. A strong belief in cooperative learning needed to expand existing companies, and Kempner; however, I hope that all of my col- has marked her career. Hands-on learning have created jobs for thousands of people in leagues have individuals in their respective methods are used in her own classroom, and the State of Rhode Island alone. The addi- districts like Jacqueline Kempner because it is she has been instrumental in integrating lab tional investment in the future of small busi- people like her that ensure that the United activities into the school's curriculum. Some ness will help keep the economy strong. States of America will continue to be a won- organizations to which Marilynn belongs in- Mr. Speaker, I ask my colleagues to join me derful place to live for generations and gen- clude: the Indiana Science Assessment in commending the Rhode Island branch of erations to come. Teachers' Association; the Indiana Science the Small Business Administration. Without the f Teachers' Association; and the National dedication and hard work of all those involved, Science Teachers' Association. Locally, she business in America would not be what it is TRIBUTE TO OUTSTANDING serves on the Crown Point and Taft Profes- today. EDUCATORS sional Development Committees, and she is a f member of Taft School's Improvement Team, HON. PETER J. VISCLOSKY which guided the staff's transition from a junior PRAISE FOR MS. JACQUELINE OF INDIANA high school to a middle school. Marilynn is de- KEMPNER, SPRING HONOREE OF IN THE HOUSE OF REPRESENTATIVES scribed by those who know her as a profes- THE UNITED JEWISH APPEAL OF Wednesday, May 6, 1998 sional, caring, and hard-working teacher who BERGEN COUNTY, NEW JERSEY has improved education at all levels. Mr. VISCLOSKY. Mr. Speaker, it is my dis- Bill Gresh, who has worked at Lowell High HON. STEVE R. ROTHMAN tinct honor to commend eight dedicated teach- School for 12 years, has made his mark on OF NEW JERSEY ers from Northwest Indiana, who have been education by placing the school's Media Cen- IN THE HOUSE OF REPRESENTATIVES voted outstanding educators for the 1997±98 ter at the forefront of technology and innova- school year. These individuals, Mary Czapko, tion. Bill changed the Lowell High School Li- Wednesday, May 6, 1998 Donna Dowty, Marilynn Edwards, Bill Gresh, brary into a Media Center, beginning with the Mr. ROTHMAN. Mr. Speaker, I rise today to Peter Hedges, Nancy Mills, Judith Musselman, installation of an electronic card catalog and honor one of the great women of my commu- and Mary Tanis, will be presented the Crystal CD ROMs, and culminating with the current nity in Bergen County, New JerseyÐMs. Jac- Apple Award at a reception at the Radisson online services in place. Over the years, Bill's queline Kempner. Jackie Kempner has spent Hotel at Star Plaza in Merrillville, Indiana, focus has remained clear. to make available a her life distinguishing herself as a cornerstone today, May 6, 1998. Mary Czapko will also re- plethora of current resources available to stu- of both the local Jewish and secular commu- ceive the torch of Knowledge Award for being dents, faculty, and staff. Bill's colleagues de- nities. She has spent thousands of hours of selected the outstanding member of this distin- scribe him as a professional who is available, hard work and dedication constructing a solid guished group of educators. approachable, and accommodating. If a new network among local Jewish and neighbor- Mary Czapko has been a first grade teacher teaching idea is being considered, Bill is hood organizations. at Lincoln Elementary School in Roselawn, In- known to work with the necessary individuals Jackie is being honored this year by the diana for 22 years. She is known as a dedi- to make worthwhile projects a reality. As a 20- United Jewish Apppeal for her years of service cated teacher by her colleagues, since she year veteran of the teaching profession, Bill to the Jewish community. She founded the fu- puts so much time into planning her lessons remains devoted to securing for teachers the ture leaders of the Northern Jersey Jewish and developing special projects for the school tools they need to deliver state of the art in- community. She has served on the UJA Fed- and her surrounding community. Mary has struction to their students. eration's Young Women's and Women's Divi- since handedly organized such programs as Peter Hedges has been a science teacher sions, eventually becoming the Young Wom- ``Green Eggs to Hamlet'', which involved con- at Highland Middle School for the past 34 en's Division's chair. And she is a member of vincing community members to read to young years. Peter is known by his students and col- the prestigious group of donors called the Lion children in all three of the public libraries in leagues, alike, for his enthusiastic and good- of Judah. her area. She was also active in ``Read humored approach to teaching. His wit makes During her many years of service, Jackie's Across America'' family reading night on Dr. his presentations entertaining and informative passion has been the cultivation of our young Seuss' birthday, and was instrumental in de- for his students, and encourages them to be- people, specifically preparing young women veloping the ``Math Their Way'' program in the come excited about the subject matter. Those from across North Jersey to assume the man- North Newton School Corporation. An individ- who work with Peter describe him as being a tles of leadership, community and responsibil- ual with a strong commitment to early child- voice of reason, as he often reminds them that ity. She is passing on the lessons her parents hood education, Mary has even used her own the reason for being a teacher is to educate taught her to a new generation of Americans. money to purchase books to create a resource children. His colleagues agree that they are Without individuals with the drive and dedica- library for all teachers in the North Newton better people for having known and worked tion of Jacqueline Kempner, the torch of lead- School Corporation. with him. ership and the wisdom of those who went be- Donna Dowty, a teacher described by her Nancy Mills has been a devoted Spanish fore us would be lost to the generations to colleagues as someone who puts the needs of teacher for 25 years, 19 of which she has come. children first, has also taught within the North spent teaching at Lowell High School. For Jackie Kempner is a friend, not just to me, Newton School Corporation for 22 years. many years, Nancy has successfully taught but to everyone with whom she comes in con- Donna began her career as a kindergarten the fourth year Spanish class at Lowell. Ac- tact. She is the kind of person who brightens teacher at Lincoln Elementary School, where cording to Purdue University, 56 of the 76 the day and makes things work. The UJA, the her development of a kindergarten graduation credits college credits Lowell students accu- Federation and the various other civic and reli- program has remained a tradition for 23 years. mulated through Advanced Placement (AP) gious organizations that she has touched Over the years, she has taught kindergarten, testing last year, were granted to Spanish stu- would not be as active and vibrant today with- first, and second grade at Morocco Elemen- dents. Indeed, every member of Nancy's 1997 out her tireless efforts. She truly is an inspira- tary School, and she has become well-known Spanish class earned college credit. tion to us all. for working with parents for the betterment of Judith Musselman has been a Speech and One of the characteristics I personally re- their children's education, as well as doing English teacher at Highland High School for spect about Jackie Kempner is that she knows whatever it takes to get a child to succeed. 34 years. Throughout her career, Judith has a that charity starts in the home. She has been Donna participates in a variety of programs reputation among her colleagues for working just as giving and caring to her own family as and committees, including the Parent Teacher to advance the expertise, knowledge, and pre- she has been to her community. She and her Organization and technology committee. One paredness of the students she has instructed. E772 CONGRESSIONAL RECORD — Extensions of Remarks May 6, 1998 She has done so, not only through classroom serving of praise for its willingness to take on Chairman and Chief instruction, but also through participation in this one prejudice which so many other enti- Executive Officer. various extracurricular endeavors. Judith has ties fear to confront. HENRIQUE MEIRELLES, President and Chief worked to improve the departmental curricu- OUR COMMITMENT TO DIVERSITY: A Operating Officer. lum, participating in departmental meetings, STATEMENT FROM CHAD AND HENRIQUE becoming involved in various training pro- We are deeply committed to building a di- BRIAN BUSH: SETTING THE RECORD STRAIGHT grams, and holding an active role in major verse workforce, and are confident that we ON GAYS AND LESBIANS committees, such as the technology commit- can and must effectively manage our diver- It’s the moment of truth for many gay and tee. Over the years, Judith has worked to pro- sity. But, when BankBoston chose diversity lesbian employees, the moment you ‘‘come vide her students within an excellent edu- as one of Our Values, many of us in execu- out’’ and be yourself. For Brian Bush, it hap- tive management immediately foresaw some pened almost two years ago. cation, and she has been rewarded as many challenges. The reaction from colleagues and manage- of her students return to thank her for the First, we need to educate our workforce, so ment? ‘‘I’ve received nothing but support,’’ work ethic she instilled in them. we all recognize diversity as the critical says the head of BankBoston Connecticut’s Mary Tanis has been a Social Studies and business issue that it is. Second, we need to Gay & Lesbian Resource Group. ‘‘To know English teacher at Kahler Middle School in use that understanding and appreciation to and work with someone who’s gay dispels Dyer, Indiana for 24 years. Throughout her ca- leverage diversity as an integral instrument stereotypes. We’ve very much the same as reer, Mary has designed a variety of creative in providing value for customers and share- others. We work hard, care about our careers and have committed relationships.’’ projects in her classroom, which have sparked holders. And third, we must hold ourselves accountable and determine whether we have An assistant vice president in Corporate the interest of her students and fellow teach- achieved this vital goal. Lending, Brian can attest to the value of ers. She has, for instance, implemented Arbor Like most business people, we live by the having employees free to focus on their jobs and Earth Day projects in her classroom. 16 motto that ‘‘what gets measured gets man- instead of covering up who they are. ‘‘Most years ago, she created a genealogy project, aged.’’ This focus on measuring performance gays and lesbians wear masks in the work- which is still used to teach children about their quantitatively encourages structure, dis- place and try to act like heterosexuals,’’ he cipline and accountability. At BankBoston, continues. ‘‘How do you respond when you different heritages. Mary has also been a fore- receive a personal call at work? What do you runner in keeping students apprised of techno- we use many processes to measure our per- formance against goals. We survey cus- say when people talk about their family and logical resources available to them, and she tomers to see how well we are meeting their social activities? It seems unfriendly not to was one of the first teachers in her school cor- expectations. We chart our financial per- share details with your coworkers. It takes poration to use the Internet as a classroom formance to determine whether we are hit- away from the concept of teamwork. Since tool for instilling in students an interest in cur- ting our Managing for Value targets. We coming out, I can focus all my energy on my even use a detailed Performance Develop- job.’’ rent events, history, and the weather. Mary's Brian expects it will be easier for the Bank ment Process to ensure that we manage em- efforts to focus her young students on current to generate new business and attract more affairs has led several of her former students ployees’ development. highly qualified employees, once people Some goals, however, do not lend them- learn how supportive the Bank is regarding to run for political office. selves as easily to numbers and graphs. In diversity. ‘‘We’re very fortunate to have a Mr. Speaker, I ask you and my other distin- fact, when you try to measure success in CEO who has gone out of his way to offer guished colleagues to join me in commending managing diversity through only numerical support,’’ he observes. ‘‘The Bank’s ongoing these outstanding educators on their receipt of means, you risk missing the broader and commitment will show people that our cor- the 1998 Crystal Apple Award. The years of deeper picture. For example, if you meet porate value of diversity is here to stay.’’ hard work they have put forth in shaping the your targets at hiring more people of color, Brian says the recently introduced ex- minds and futures of Northwest Indiana's but you don’t create a safe and supportive tended family benefits, which includes do- young people is a true inspiration to us all. environment in which their talents and abili- mestic partners, ‘‘is the icing on the cake. ties flourish, you will ultimately fail. Even if f We’ve made a lot of progress in the last two employees don’t physically leave the organi- years, and are way ahead of most compa- BANKBOSTON SHOWS HOW zation, they may fall short of their potential nies.’’ DIVERSITY SHOULD WORK without sufficient recognition and develop- ment. f Diversity is also a moving target. As cul- tures and demographics shift, diversity itself RECOGNITION OF THE PROVI- HON. BARNEY FRANK DENCE PUBLIC HOUSING AU- OF MASSACHUSETTS takes on new meaning. Just 20 years ago, di- versity was seen as the need to hire and pro- THORITY IN THE HOUSE OF REPRESENTATIVES mote more women and people of color. Wednesday, May 6, 1998 Today, it is commonly accepted that we HON. ROBERT A. WEYGAND must think more broadly than race and gen- Mr. FRANK of Massachusetts. Mr. Speaker, OF RHODE ISLAND der. We must harness the diverse talents and IN THE HOUSE OF REPRESENTATIVES I was very pleased to receive from Chairman perspectives of all employees, in our efforts Charles Gifford of BankBoston an excellent re- to meet our business goals. This includes Wednesday, May 6, 1998 port on the diversity program of the bank. changing the way we manage and interact as Mr. WEYGAND. Mr. Speaker, I rise today to BankBoston shows beyond dispute how an in- team members with people who have dif- commend the Public Housing Authority of ferent styles of learning and working, and telligent, supportive approach to diversity is Providence, Rhode Island. In ten short years fully compatible with a successful business in managing diversity as a key business advan- tage in our increasingly multicultural mar- they have managed to turn around some of America today. Because the inclusion of gay the most depressing public housing projects in and lesbian workers in diversity programs is kets. In an evermore diverse and competitive marketplace, we cannot afford to exclude the city, and create a rejuvenated community unfortunately not yet as wide spread as it any perspectives. full of hope and promise for its residents. should be, I was especially pleased to note The costs of not managing workforce di- In 1986 the board of the Providence Hous- the recognition Mr. Gifford and BankBoston versity are well documented—high turnover, ing Authority had to make some tough have given to this important aspect of a com- high absenteeism and low productivity. The choices. At that time the agency was plagued prehensive diversity program. Given the preju- benefits of managing diversity are also well by many problems. Housing residents com- established—increased creativity and inno- dice against gay men and lesbians that still plained of the poor conditions of their build- exist in many areas of our economy and soci- vation, greater productivity, increased em- ployee satisfaction and loyalty, larger mar- ings. Stairs within the buildings were crum- ety, I am grateful to Mr. Gifford and ket share and, ultimately, enhanced share- bling creating safety hazards. Garbage pickup BankBoston for taking a leading role in this holder value. had been neglected. Local banks no longer area. When a highly successful and very well This report—focusing on three critical trusted the agency's checks. The U.S. Depart- respected institution such as BankBoston areas of diversity for BankBoston (i.e., in- ment of Housing and Urban Development steps forward in this way, the lessons for soci- vesting in our employees, customers and threatened to cut off funding if the agency's ety as a whole are profound. Because of this, community)—is an example of our sincere problems were not solved. I ask that the page from that diversity report commitment. It is one more step in our on- When President Franklin D. Roosevelt going journey. We re publishing it to educate illustrating the importance of inclusion of gays our workforce on the value of diversity, to launched public housing in 1937, the intent and lesbians in diversity programs be printed share our successes thus far and to hold our- was to provide temporary housing for families here. I do so not to suggest that the other as- selves, as an institution, accountable for our in financial straits. Screening was strict; ten- pects of the diversity program are unimportant, progress. ants had to be employed. After World War II, but because BankBoston is particularly de- CHAD GIFFORD, the character of public housing gradually May 6, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E773 changed. Currently, a typical tenant must rely My fellow colleagues, join me in saluting the Dublin in 1982 and 1985, with Irish delega- on public housing as permanent housing, and life of a giant in the baseball industry and a tions visiting here in 1983 and 1985. Official receives public assistance. Public housing true fan of the game, Gabe Paul. links between the two groups lapsed, how- ever, by the mid 1980s but contacts did con- projects in recent years have been plagued by f tinue on a more informal basis. The question a downward spiral of public assistance, lack of of re-establishing these links were raised on job training, and high crime rates. PERSONAL EXPLANATION a number of occasions in the early 1990s. My The Providence Housing Authority decided predecessor Sea´ n Treacy raised the issue to face the problem head on. Existing units HON. JERRY WELLER with you Mr. Speaker leading to a congres- within the system have been modernized. Re- OF ILLINOIS sional delegation visiting Ireland in Feb- ruary 1997 to confirm our Parliament’s inter- pairs have been undertaken ranging from IN THE HOUSE OF REPRESENTATIVES complete rehabilitation to emergency repairs est in reviving formal links. Wednesday, May 6, 1998 The formal announcement of the re-launch of rotting roofs. Maintenance repair orders are of the Ireland-U.S. Inter Parliamentary completed swiftly rather than languishing un- Mr. WELLER. Mr. Speaker, last night, dur- Group was made by you at the St. Patrick’s finished for months. Security in the Providence ing the Rollcall vote on Mr. MCGOVERN's Day lunch in honour of the then Taoiseach properties has improved, allowing residents to amendment to H.R. 6 (No. 124), the Higher John Bruton. We in Ireland were delighted to build a community. The agency has built up its Education Amendments of 1998, I inadvert- hear that you had asked two very distin- cash reserves, improving the financial man- ently voted ``no'' when I wished to vote ``aye.'' guished Congressmen Ben Gilman and Jim Walsh to co-chair the U.S. side. I want to pay f agement of the housing authority. Perhaps a very special tribute to both of them whom most important, the Providence Housing Au- VISIT OF MEMBERS OF THE IRISH I got to know during the very successful thority has introduced high caliber non-housing visit to Ireland in November last year for the services for residents, such as job training, life DAIL TO THE U.S. CONGRESS work they have put into the work of the skills, and youth recreation programs. They group since its re-launch last year. I look have developed after-school programs for chil- HON. BENJAMIN A. GILMAN forward to co-chairing the first session of dren, and self-sufficiency programs for adults. OF NEW YORK our meetings tomorrow when we discuss the In recent years, the Housing Authority, Irish peace process. IN THE HOUSE OF REPRESENTATIVES The people of Ireland deeply appreciate the which is monitored by HUD, has consistently Wednesday, May 6, 1998 tireless efforts of both the Friends of Ireland received higher grades in its annual report- and the Ad Hoc Committee on Irish Affairs card-type ratings. Since 1991, when HUD Mr. GILMAN. Mr. Speaker, last night at the to bring about a just and lasting peace in started their rating system, the Providence Library of the Congress both you and I were Northern Ireland. As Speaker of the Irish Housing Authority has improved its scores honored to welcome members of the Irish Dail House of Representatives and on behalf of every year. And recently the Housing Authority here to the Congress, as we opened the sec- the delegation I too wish to express my ap- has achieved ``high performer'' status, by scor- ond session of the Irish American Inter-par- preciation for those efforts which has led to liamentary exchange, you so wisely reinitiated the Good Friday peace agreement. The ing 97 out of a possible 100 points. agreement offers a truly historic oppor- This turn around would not have been pos- two years ago. tunity for a new beginning within Northern sible without the leadership and support of the The relations between Ireland and its warm Ireland. It is balanced fair and comprehen- eleven member Board of Directors of the and generous people and our great nation are sive. All parties will find aspects to their lik- Providence Housing Authority. These men and long, historic and very close. The remarks of ing but will have difficulties with others. women, led by Stephen O'Rourke, have the Speaker of the Dail, the Ceann Comhairle However, the reality is that people on the is- worked hard and persevered in turning around Seamus Pattison of Kilkenny which were deliv- land of Ireland want peace. It is my belief a crumbling system. I ask my colleagues to ered at the Library were particularly important, that the requirements of the people have been met and it is my expressed hope that join with me in congratulating the Providence and best summarize this long and very impor- confirmation of this will be a resounding yes Housing Authority of a truly remarkable turn- tant relationship between Ireland and the vote in the referenda being held on 22 May. around. United States. During the current peace process we have f At this important moment in Irish history, I had enormous encouragement and goodwill believe my colleagues would be particularly in- not only from the international community IN MEMORY OF GABE PAUL terested in the Speaker of the Dail's com- but especially so from the United States. ments on the U.S./Ireland relationship, and I President Clinton and his administration has HON. DENNIS J. KUCINICH taken a deep personal interest in the search insert his full and important remarks for the for a lasting and just peace in Northern Ire- OF OHIO RECORD. land. That commitment was demonstrated IN THE HOUSE OF REPRESENTATIVES REMARKS BY MR. SEAMUS PATTISON, T.D., through his visit to Belfast in November Wednesday, May 6, 1998 CEANN COMHAIRLE AT DINNER HOSTED BY 1995. He was the first sitting U.S. President MR. NEWT GINGRICH, SPEAKER, U.S. HOUSE to undertake such a visit. Mr. KUCINICH. Mr. Speaker, I rise today to Congress too has played a very important honor the memory of a remarkable man in OF REPRESENTATIVES ´ part. A number of those leading Congress- Cleveland Indians baseball history, Gabe Paul. Mr. Speaker, Ambassador OhUiginn, par- men I have referred to earlier but I also want Born in Rochester, N.Y., Mr. Paul had a liamentary colleagues both Irish and Amer- to include the other co-chairmen of the Ad penchant for baseball as a young boy. He was ican, friends. Hoc, Peter King, Richard Neal and Tom Man- a bat boy for the minor league Rochester Red I am delighted to respond to your kind re- ton and many others who have been good marks and would wish, at the outset, to friends to Ireland and have been active on a Wings in 1920 and witnessed the early days thank you most sincerely for hosting this of baseball history. His love for the sport grew range of political and economic issues over dinner in honour of the visit by Irish Parlia- the years. Senator Ted Kennedy too has been and he decided to devote his life to it. He mentarians. It is a great honour to have din- a true friend of Ireland and I look forward to joined the Cincinnati Reds as publicity director ner here at the Library of Congress and I meeting with him on Thursday morning. I in 1937 and advanced his way through the would like if I may introduce the other mem- cannot emphasize enough the key role Reds' management until he became General bers of the delegation: Mr. Desmond J. played by Senator George Mitchell, the inde- Manager in 1949, the youngest GM in base- O’Malley, T.D., Chairman, Joint Committee pendent chairman of the talks whose pa- ball history at the time. Paul showed his true on Foreign Affairs, Mr. Michael P. Kitt, tience and dedication helped to bring the T.D., Mr. Michael Noonan, T.D., Mr. Alan passion for the sport when he married his wife talks to their successful conclusion. Shatter, T.D., Mr. Matt Brennan, T.D., Mr. I also want to mention, Mr. Speaker, how Mary on Opening Day, 1939. Dinny McGinley, T.D., Dr. Pat Upton, T.D., much we value your own personal interest Mr. Paul arrived in Cleveland to the posts of Mr. Brendan Smith, T.D., and Mr. Thomas and support. I know that your concern is general manager, president, and treasurer in Gildea, T.D. year round, but your generous hospitality in 1961. Through 1972 and from 1978 to 1984, As you know Mr. Speaker, official contacts hosting the annual St. Patrick’s Day Speak- he led the Indians through good times and between the Oireachtas and the U.S. Con- er’s lunch on Capitol Hill has been especially bad times. He maintained until the end of his gress were put on a more formal footing in welcome. The event in recent years has term that the Cleveland Indians were a ``sleep- the early 1980s. The Friends of Ireland group brought together the main political leaders was established in Congress in 1981 and the ing giant'' and would one day emerge from from north and south. There is no doubt that Ireland/United States Parliamentary Group the opportunity for dialogue which this their losing streak as a contender in baseball. in the Houses of the Oireachtas in 1983. year’s Washington programme afforded the Mr. Paul was right and with the construction of Under the auspices of those groups a number political leaders greatly helped in laying the Jacobs Field, the team began its current suc- of exchange visits took place with delega- ground work for their eventual historic cess. tions from the Friends of Ireland visiting agreement on Good Friday. E774 CONGRESSIONAL RECORD — Extensions of Remarks May 6, 1998 I look forward to meeting with you when omy success. Therefore it goes without say- active personality and character of Lois you visit Ireland next summer. I can assure ing that the United States, with over 500 Weisberg. I am sure my colleagues will enjoy you of a hearty cead mile failte, and repay- companies, is the largest single investor in reading this perceptive account of her life and ing the generous hospitality you have offered Ireland and has played a critical role in the to us this evening. growth of our economy. These U.S. firms are activities: On the day the talks were concluded (Good not coming to Ireland out of altruism. They [From the Chicago Sun-Times, May 6, 1998] Friday) I was attending the spring con- are coming for a variety of reasons, not least BREAKING THE RULES ference of the Inter Parliamentary Union in of which is that, according to the U.S. De- RENEGADE ARTS MAVEN ADORES HER JOB Namibia. I was delighted to receive the best partment of Commerce, Ireland is the most (By Lori Rotenberk) wishes from international parliamentarians profitable location for U.S. investment in Her movements and the rapidity of her on the successful outcome of the talks. It Europe. was pleasing that during the conference the A number of U.S. companies have an- speech defy age. Both are nonstop. So, too, her brain. And so, too, the puffs on Inter Parliamentary Council congratulated nounced several major projects in job cre- her cigarette (‘‘I’m quitting!’’) sending a all concerned on the outcome of the talks ation—Boston Scientific Expansion plans of and a letter expressing those congratula- snake of smoke from her ruby lips. 40m with over 2,050 jobs being created, Ox- Every little thing about her seems to trav- tions, signed by the president of the council, ford Health Plans—500 jobs in insurance Sen˜ or Miguel Angel Martinez of Spain, was el at the speed of sound. Even her black city- claims processing, Bausch and Lomb—650 issued car, as it pulls out of a downtown forwarded by me to the Taoiseach, Bertie jobs and Hewlett Packard’s announcement of Ahern. alley and into the Chicago night. a second investment at its Leixlip plant with The cops wouldn’t dare. As Irish politicians, it encourages us great- an expected 2,000 employees by 1997 to men- ly to know that we can count on U.S. sup- Lois Weisberg, the city’s renegade Com- tion but a few. missioner of Cultural Affairs, turns 73 today. port. The two groups in Congress with a While there are no official figures available strong interest in Ireland—the Friends of In her eighth decade, she is still a woman on the value of Irish investment in the U.S., who treads the fringe. Ireland and the Ad Hoc Committee on Irish several of our major Irish companies includ- Affairs demonstrates to us the interest of ‘‘Ugh. I can’t work where everybody fol- ing Smurfit, Masstock, James Crean, Bank lows the rules,’’ Weisberg says, ‘‘My whole the United States to hearing of the happen- of Ireland, AIB, Kerry Group, Avonmore and ings in Ireland. One of the practical ways in life has been about breaking rules.’’ Bord Bainne have already acquired substan- This attitude has helped her leave a dra- which this is shown by Congress is through tial interests here. matic mark on the city—even if you don’t the support for the International Fund for There are a myraid of historical connec- know her, you know the programs she has Ireland. Your desire to address the economic tions that bind our two countries. One of the created over the years, Blues Fest, Gospel impact of the troubles through voting each areas that stands out is our common interest Fest, many ethnic fests, the watchdog group year economic assistance to the fund assists in the democratic process and politics in Friends of the Park. its efforts to bring economic hope to the general. Irishman and women have distin- A typical idea: She put a birthday hat on most disadvantaged areas. Since its incep- guished themselves right across the U.S. in the Picasso at Daley Center to celebrate the tion the fund has supported in excess of 3,400 Federal, State and local politics. As you statue’s birthday. ‘‘Everyone thought I was individual projects involving expenditure of know a number of Irishmen were signatories crazy when I suggested it. They didn’t know over $350m. These projects have helped to to the Declaration of Independence. I have how to do it. I didn’t know how to do it. create in excess of 29,000 jobs. Total invest- earlier referred to Senator Ted Kennedy Then I found a group of Mexican nuns who ment related to expenditure to the fund whose great-grandfather came from New made papier-mache. They delivered it in a amounts to over $900m as public and private Ross which is located just a stone’s through big truck. And that’s when I began to learn sectors sources also contribute to the fund. from my own constituency of Carlow- how to get around all of the bureaucracy.’’ The delegation visiting Ireland last year Kilenny, a constituency I have had the Last month, Weisberg received an award availed of the opportunity to visit some of honour of representating for nearly 37 years. from the Illinois Arts Council for her con- the projects which have been assisted by the I am therefore the only sitting member who tribution to city arts and culture. Soon, one fund. was present in the House to hear the address- of her favorite programs, Gallery 37, the na- We in Ireland identify with the success of es of the 3 American presidents during joint tionally recognized student summer art pro- our Emigrant communities around the world sittings of the Houses of the Oireachtas— gram in the Loop, will raise its tent along but especially here in the United States President John F. Kennedy was the first dis- State Street. where, I believe, some 44 million claim some tinguished guest to address the Houses when Weisberg is the scratch to Mayor Daley’s Irish ancestry. It is hardly surprising there- he visited Ireland in 1963, President Reagan itch. fore that many of the households in Ireland did so in 1984 and more recently we had the What he dares to imagine, she’s damned to have American cousins. Our emigrants here address of President Clinton. create. in the United States have played a huge role I am looking forward to our working ses- To say she loves her work is a mistake. in making it the most powerful nation in the sions here in Washington over the next few Weisberg adores it, lives it. She stays awake world. We in Ireland owe a great deal of grat- days. It may be that we may only manage to until 3 a.m., answering all of her own cor- itude to countries like America. Just over scratch the surface on a number of issues but respondence. ‘‘Everything I see, hear and do one hundred and fifty years ago, the Great we will try to cover as much ground as pos- gives me an idea,’’ she says. Irish famine was at its worst. Ireland was Acquaintances and friends alike speak of sible. I wish all the participants in the ses- devastated as over one million people died of her huge and good heart. Weisberg admits sions every good wish. starvation with another one million emigrat- I will conclude now Mr. Speaker by thank- she can’t say no to anyone. ‘‘I try to do ing in its immediate aftermath. The major- ing you once again for hosting this dinner in something for everyone who asks me for ity of those emigrating came to the United our honour. It has been a privilege to meet help,’’ she says. States in conditions of incredible hardship ‘‘Lois Weisberg is one of those unique peo- with you and to discuss with you matters of with nothing to sustain them when they got ple who can think very creatively and very mutual interest. there, except a willingness for hard work and practically at the same time,’’ Daley says. ‘‘I I would ask you all to raise your glass to an overwhelming desire to succeed. Most can call Lois with an idea and know without the continued success of Ireland/U.S. par- Americans can identify with the quintessen- a doubt that she will find a way to make it liamentary friendship. tial story of the emigrant. The U.S. has con- happen.’’ tinued to provide a home from home for Irish f Born on this day in 1925, Weisberg grew up people ever since those dark days of famine. in Chicago’s Austin neighborhood. She In more recent years the United States has ‘‘BREAKING THE RULES’’ walked the streets with her nose always dug become the adopted home for many of our into a book, the odd child ‘‘of two perfectly young emigrants. We are particularly grate- normal parents.’’ Later, she briefly attended ful for the role played by our friends in Con- HON. SIDNEY R. YATES the University of Illinois, then transferred to gress in securing visas for them under the OF ILLINOIS Northwestern, where she graduated with a Donnelly, Morrison and Schumer Schemes. IN THE HOUSE OF REPRESENTATIVES degree in radio. ‘‘Right at the end of its gold- As our economy has bounded ahead in recent Wednesday, May 6, 1998 en age,’’ Weisberg says accusingly. ‘‘I years, the nature of emigration has changed. couldn’t find a job anywhere because tele- Many of our emigrants now return home to Mr. YATES. Mr. Speaker, among the out- vision was coming in. So I got a job writing Ireland bringing vital skills learned in Amer- standing civil servants working for the people a TV program called ‘Baby Talk,’ a simply ica, having made a real contribution while of Chicago is my good friend, Lois Weisberg. horrible program.’’ they are here. We know these are difficult As Commissioner of Cultural Affairs, Lois has She winces at the memory. She wears eye- glasses studded with rhinestones, lighting up issues, but we strongly urge you, in both our sponsored a series of cultural events which interests, to continue to make provision for that Muppet face like the Chicago Theatre our young people to come to the U.S. and to have brought a glow to the City of Chicago marquee, and clatters around the mosaic learn the American way. and to Mayor Richard Daley. floor of the Cultural Center in white leather The strong presence of foreign investment Today, an article appears in The Chicago boots, faux fuzzy fur around their ankle-high has been one of the keys to our recent econ- Sun Times which truly delineates the warm tops. May 6, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E775 Friends say Weisberg, a widow for several summer. ‘‘But come out anyway,’’ she urged first unit, and my departure one year earlier years, sorely misses her late husband, Ber- at a speech, ‘‘and enjoy the air. It’s free.’’ from Austin Airport for Vietnam. nard, who was her best friend. She has two So was she until Daley recruited Weisberg Aside from the already described feelings, grown sons, Jacob and Joseph. as his special assistant. Since then, the city on my last day in Vietnam I took stock of But she doesn’t lack for interests. hasn’t been quite the same. the four most important lessons I learned ‘‘Would you like to know the things I real- Last year, when Illinois poet laureate during the year—lessons that I have carried ly love doing?’’ she asks, ‘‘Riding the Broad- Gwendolyn Brooks turned 80. Weisberg made with me over the past 27 years of my career. way and Clark Street buses, just to keep in sure Brooks’ poems were handed out at L First, it magnified for me the words from my touch with humanity. And I like to sit up in stops and passed out by patrol officers on oath of commission: ‘‘. . .to obey the orders the front with a bunch of grocery bags.’’ An bikes along the lakefront. of the President and the officers appointed avid gardener, Weisberg also likes country Oh, and there’s plenty more. Weisberg over me. . .’’ and my father’s advice (a vet- music and collects egg cups and frogs. promises. And the ideas spill and spill. Are eran of three wars) to obey orders no matter Since she so dislikes rules, what is the last you going to stay forever, until you are way how distasteful they may be unless they are she may have broken? up there in your 70’s?Weisberg is asked. ‘‘I illegal or immoral. I learned quickly as an ‘‘I can’t tell you,’’ Weisberg jokes. ‘‘But I love, love my work,’’ is all she will answer. infantry rifle platoon leader in combat that do drink martinis or straight vodka, and f my job was not to question the prosecution that makes me a drinking, smoking, horrible of an unpopular war but to obey legal orders person.’’ THE 23D ANNIVERSARY OF THE and lead my soldiers to the best of my abil- Hardly. There was a time, too, when ity in the accomplishment of difficult tasks. Weisberg was an antsy housewife who pre- FALL OF SOUTH VIETNAM TO COMMUNISM The second lesson learned was that a leader ferred to keep her hands in the arts rather should only focus on his ‘‘piece of the Army’’ than the dishwater. and make it the most professional team in Having always had a yen to direct, she HON. JOHN M. McHUGH the organization. I saw to many leaders in pulled together actors to form the Chicago OF NEW YORK combat worry about ‘‘higher’’ at the expense Drama Quartet. of readiness and caring for their soldiers. IN THE HOUSE OF REPRESENTATIVES Weisberg combed books for plays to per- Third, the basics that leaders demand in form and one day came across George Ber- Wednesday, May 6, 1998 training work in combat and result in win- nard Shaw’s Back to Methuselah. ‘‘I didn’t ning engagements and the saving of lives. I know a thing about Shaw,’’ she says. Mr. McHUGH. Mr. Speaker, I rise today to learned that even with the most dynamic The Burgess Meredith dropped in on a per- remind my colleagues of an important anniver- tactics you will fail without adherence to formance. Assuming Weisberg was a Shaw sary. Last week marked the 23rd anniversary the basics. Leaders must set and demand scholar, he asked her to speak to a group of of the fall of South Vietnam to Communism high standards from their subordinates to fellow actors about the great Irish play- and the end of the Vietnam War. I was re- win! The last lesson that I took away from wright. She found a book about him and minded of this date by a newspaper column Vietnam was the importance of faith and learned Shaw had been born exactly 100 family in one’s life. Combat magnified for years before. written by the Army's 10th Mountain Division and Fort Drum, New York, Commander, Major me the frailty of human life and the absolute ‘‘I read the first page and never read past importance of having a ‘‘true azimuth’’ in that,’’ Weisberg explains. ‘‘It said Bernard General Lawson W. Magruder III. He marked your life. Because I was at peace with the Shaw was born on July 26, 1856. I had never the occasion by sharing his personal reflec- Lord and knew that I was supported on the heard anything about this man, this great tions on his time and service in Vietnam. I ‘‘homefront’’ by a loving and supportive wife writer who was having a 100th anniversary would like to share his column with our col- and family, I never worried about not com- and no one knew it.’’ leagues so that we may also remember the ing home. Consequently, then and today I So she made sure everyone would know. am able to devote myself totally to the lead- Weisberg invited guests from around the brave men and women who served this coun- ership of America’s finest Light Fighters. world to celebrate Shaw. She made the pa- try in Vietnam. We are all ‘‘defined’’ by our past experi- pers worldwide with stories about the Glen- [From the Fort Drum Sentinel, Apr. 30, 1998] ences. My experiences in Vietnam is an im- coe housewife who was so good as to remem- (By Maj. Gen. Lawson W. Magruder III) portant part of my makeup and being. It will ber Shaw when everyone else forgot. The always be with me, and even though many New York Times wrote an editorial, and Chi- April 30 marks the 23rd anniversary of the view the Vietnam War as a ‘‘lost cause,’’ I, cago became the Shaw capital. The Sherman fall of South Vietnam to Communism and along with thousands of other vets, am proud Hotel, at the request of Weisberg, created the end of the Vietnam War. For this reason, of our service many years ago in that sad the Bernard Shaw Room, and his plays were April has always been a month of reflection country in Southeast Asia. May we never performed there for several years. In it was about what the Vietnam War meant to me. forget those brave men and women who born the Bernard Shaw Society, then the It is a time for me to recall the lesson I fought for democracy in Vietnam. Let me Shaw newsletter. learned over 27 years ago when I returned close with this special quote that I’ve kept Around that time, Weisberg received a call from Vietnam. I’d like to share some under my desk glass for the past 26 years: from a friend at the University of Chicago. thoughts with you: The campus magazine, Big Table, was being My last day in Vietnam evoked many emo- ‘‘If you are able, save for them a place in- censored, and its writers had invited the beat tions as I waited for the big ‘‘freedom bird’’ side of you. . . and save one backward glance poets of the era to town to raise money for to wing me back to Texas and a reunion with when you are leaving for the places they can the publication. Would she lend a hand? my wife, Gloria, and 15-month old daughter, no longer go. . . Be not ashamed to say you Weisberg gave them the Shaw room, where Shannon. It was a day filled with sadness, loved them, though you may or may not Allen Ginsberg would give the first public anticipation, relief, hope, excitement, and have always. . . Take what they have left reading of ‘‘Howl.’’ She advertised that any- pride. Sadness over the soldiers I had led and and what they have taught you with their one with a beard would get in free. The line grown to love in a special way who were dying and keep it with your own. . . And in of bearded men would around the block. The never to return to their families; anticipa- that time when men decide and feel safe to beats were front-page news for days. tion over my future and the future of our call the war insane, take one moment to em- Ginsberg stayed in touch with her. Army as we both transitioned to a period of brace those gentle heroes you left be- ‘‘Allen would send postcards from all his peace; relief that my separation from my hind. . . .’’—Maj. Michael Davis O’Donnell, travels.’’ Weisberg recalls. ‘‘I have postcard loved ones had gone without serious injury Springfield IL, 1 January 1970. on the wall somewhere here that says, ‘Lois, or illness; hope that our lives would quickly f you have to try this LSD.’ I didn’t even return to normal and that our nation would know what it was.’’ soon withdraw from the war without major IN HONOR OF THE CONGREGATION Then she began an underground newspaper casualties and that South Vietnam would OF SAINT JOSEPH called the Paper, in which she interviewed succeed on its own against Communism; ex- jazz and literary greats. Dizzy Gillespie was citement about returning to Gloria and one of her great friends. Shannon and closing out an important chap- HON. DENNIS J. KUCINICH From there it was on to head the depart- ter in my young career and returning to the OF OHIO ment of public affairs for the Rehabilitation 82d Airborne Division to command a com- IN THE HOUSE OF REPRESENTATIVES Institute of Chicago. Then on to a public in- pany; and pride in having served my soldiers, terest law firm and later the executive direc- my Army, and my country honorably in the Wednesday, May 6, 1998 tor of the Chicago Council of Lawyers. toughest environment. With the exception of Mr. KUCINICH. Mr. Speaker, I rise today to Paid political life began in the 1980’s when my feeling of sadness, it was a composite of she joined the administration of Mayor Har- so many of the same emotions I had felt pre- commend the Congregation of Saint Joseph old Washington and became head of special viously in my life on the day of a major on the 125th anniversary of their service to the events. Discouraged to be working with a event: the first day at a new school, ‘‘season Greater Cleveland community. The Saint Jo- ‘zero budget,’’ she informed fans of Venetian openers,’’ graduation from high school and seph Congregation is dedicated to the im- Night that there would be no fireworks that college, commissioning day, reporting to my provement and education of the community. E776 CONGRESSIONAL RECORD — Extensions of Remarks May 6, 1998 Originally founded in 1650 in Le Puy, age, because North Korean authorities arrest A TRIBUTE TO NANCY SMITH France, the Congregation of the Sisters of St. three generations of family members if a per- Joseph devoted themselves to God and to son is accused of a crime against the state or HON. JAMES T. WALSH their fellow citizens. They minister to school public order. When Mr. Kang's grandfather OF NEW YORK children, the sick, and others in need. After was arrested for spying, they also arrested IN THE HOUSE OF REPRESENTATIVES enduring hardship in the Reign of Terror in and imprisoned the 9-year-old boy. While in France that nearly sent some of the sisters to the prison camp, Mr. Kang, along with most Wednesday, May 6, 1998 the guillotine, the Congregation rebuilt them- other prisoners, suffered from extreme mal- Mr. WALSH. Mr. Speaker, I rise today to selves and was committed to developing a nutrition. In order to survive, he ate snakes, pay tribute to Mrs. Nancy S. Smith, a long- ministry in America. rats, and frogs. In addition to suffering from time employee of the Library of Congress. Six sisters came to America in 1836 intent malnutrition, he watched countless executions Nancy is retiring from the federal govern- on serving God through service to the people. carried out either by hanging or by firing ment after over 43 years of serviceÐall of After establishing fifteen houses, the Con- squad. Inmates were forced to watch all exe- those years at the Library of Congress. She gregation of St. Joseph staffed St. Mary's cutions. When guards completed some execu- has spent her entire career in the budget of- School in Painesville in 1872. The sisters then tions such as hanging, prisoners were forced fice at the Library. Her most recent assign- went on to serve at Saint Therese, Nazareth, to stone the dead bodies until they were no ment was as an assistant to the budget offi- and Saint Joseph Academies. In their tradition longer recognizable as human. cer. of education and service, the sisters effectively Mr. Speaker, horrors such as this do not All who know and worked with Nancy came labored for the institutions of the Cleveland Di- continue indefinitely when the international to appreciate and admire her steadfast profes- ocese. community is educated, outrages, and spurred sionalism and her attention to the detail that My fellow colleagues, join me in congratulat- to action. The American public must become characterizes the work of federal budget mak- ing the Congregation of Saint Joseph for their aware of these egregious human rights viola- ing. Nancy was the authoritative ``number 125 years of service in Greater Cleveland. tions. It is of the utmost importance that we cruncher'' in the Library's budget shop and all f begin the process of disseminating the infor- three Librarians of Congress for whom she mation as widely as possible so that peoples worked were the beneficiaries of her skills and PRISON CAMP TORTURE IN NORTH diligence. KOREA of our nation and others can act on behalf of the suffering North Koreans. The House Appropriations Committee, in particular, has been grateful for all the work HON. JOSEPH R. PITTS f and care Nancy put into preparing the variety OF PENNSYLVANIA of tabulations and explanations needed to re- IN THE HOUSE OF REPRESENTATIVES BUDGET SURPLUS HIGHER THAN view the budget program of the Library of Wednesday, May 6, 1998 EXPECTED Congress. In addition to being on call through- out the normal workday, Nancy was often Mr. PITTS. Mr. Speaker, today I would like called upon to spend evenings and weekends to insert for the record information on some of HON. RON PACKARD in preparing the analysis necessary for con- the most disturbing news that I have heard re- OF CALIFORNIA gressional oversight. She was always there cently about the egregious torture which was IN THE HOUSE OF REPRESENTATIVES when needed. a reality to thousands of prison camp resi- We will all miss Nancy. After these 43 years dents in North Korea. Wednesday, May 6, 1998 she has certainly earned a rewarding retire- I recently met with Mrs. Soon-Ok Lee and ment. Mr. Chul-Hwan Kang, survivors of the horrify- Mr. PACKARD. Mr. Speaker, just yesterday the Congressional Budget Office (CBO) re- She can now devote her time to travel and ing prison camps of North Korea. The two sur- her love of opera and classical music. vivors now live in South Korea and desire to leased new figures that show that the budget surplus for this year will be between $43 and Well done, Nancy. AndÐBon Voyage! share with the world the truth about North f Korea. Both Mrs. Lee and Mr. Kang are will- $63 billionÐdrastically higher than the $18 bil- ing, at some risk to their safety, to testify be- lion surplus that was predicted after last sum- THE ‘‘RUPTURED DUCK’’ GETS A fore this body about their treatment while in mer's historic balanced budget agreement. RIDE ON THE SPACE SHUTTLE the prison camps and about the general situa- This is one more indication of what we can tion of the people of North Korea. It is vital achieve with a Republican-led Congress that HON. ELLEN O. TAUSCHER that their information is shared with the world. is dedicated to ending wasteful and irrespon- sible government spending. OF CALIFORNIA Mrs. Soon-Ok Lee described the torture she IN THE HOUSE OF REPRESENTATIVES endured at the hands of prison authorities. As a member of the House Appropriations After severe beatings in which she lost many Committee, I would like to applaud my col- Wednesday, May 6, 1998 teeth and suffered partial paralysis in her face, leagues for making the balanced budget and Mr. TAUSCHER. Mr. Speaker, I rise today she was subject to water torture. North Korean this substantial surplus a reality. Appropria- to recognize Ms. Kitty Kelly, a constituent from authorities forced her to lie down on her back tions is the only committee with a direct im- Livermore, California and the daughter of Mr. and then they inserted a special kettle sprout pact on spending and the federal budget. Wilfred John Kelly, who was an Electricians into her mouth. The spout was made so that Under Chairman BOB LIVINGSTON's (R±LA) Mate Second Class in the United States Coast it expanded in her mouth and she could not leadership, we have fundamentally changed Guard. breathe without swallowing water. The guards the way Washington spends its money. Since Mr. Wilfred Kelly entered into military serv- then poured gallon upon gallon of water into taking control of Congress, Republicans have ice in July of 1942 at a time when our country the spout thereby forcing it into Mrs. Lee's effectively eliminated 307 outdated and was in terrible conflict. He joined the U.S. body. Due to the incredible amount of water unneeded programs, streamlining government Coast Guard, served abroad the USS flowing into her body, she became uncon- and making it more accountable to the Amer- Gloucester, and was Honorably Discharged scious and her stomach became distended. ican taxpayer. from service in 1946. Upon leaving active When it was clear that her body could hold no Fueled by the American entrepreneurial duty, Mr. Kelly was awarded the Honorable more, the guards stopped, waited for her to spirit, our growing economy has been a fun- Discharge Lapel Pin, nicknamed the ``Rup- awake, laid a board on her stomach and damental partner in this accomplishment. Mr. tured Duck'', as recognition for his honorable jumped on it. This forced the water back out Speaker, I take pride in the new figures for the service. The ``Ruptured Duck'' is awarded to of her mouth and caused her excruciating budget surplus and applaud those Americans, all members of the U.S. Coast Guard who pain. She again lapsed into unconsciousness. from homemakers to small business owners, have served with honor and distinction, and Prison officials repeated this scenario a num- who have helped make it happen. These indi- who have been discharged honorably. ber of times both to Mrs. Lee and other pris- viduals are the ones who know best what to Mr. Kelly always had a great respect and oners. do with surplus dollars, not bureaucrats in personal admiration for the space industry. He Mr. Chul-Hwan Kang witnessed similar Washington. I urge the Administration and my believed in the necessity of space exploration egregious violations of human dignity. He was colleagues in Congress to do the right thing and was fascinated by our country's ability to in prison from age nine to nineteen. Authori- with the surplus: send it back to the public expand its pioneering spirit into the reaches of ties imprisoned Mr. Kang at such a young through tax relief and debt reduction. outer space. Sadly, Mr. Kelly passed away on May 6, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E777 May 28, 1995 and carried with him his admira- share our expertise with new governments Mr. Singh told reporters that the commis- tion for space exploration. Ms. Kelly contacted and young democracies in a sincere effort to sion, to be headed by a retired chief justice my office requesting assistance in immortaliz- build peaceful, civil societies. Today, the task of the Supreme Court, would start function- at hand for Rwanda is to help Rwandans live ing from next month. It is expected to sub- ing her father's memory. She asked that I con- mit its findings by the year end. He said the tact NASA Operations and forward her request together again. The country and its people are commission would probe ‘‘human rights vio- to have her father's lapel pin flown on the trying to endure after being cruelly torn apart. lation by militants and also the state’’. space shuttle. After a month of corresponding We must help Rwanda survive and build a Mr. Singh said the people had the right to between NASA and my office, the dream of democratic, free nation. know the truth and those who were oblivious Ms. Kelly and her father was about to be real- f to it were likely to repeat history. A con- ized. stitutional body could not probe this prob- On April 17, 1998 the Space Shuttle Colum- SIKHS FORM CITIZENS COMMIS- lem, hence the need for setting up such a commission. bia launched from NASA's Kennedy Space SION TO INVESTIGATE GENOCIDE IN PUNJAB Interestingly, the Akali Dal-BJP combine Center and on board was Mr. Kelly's lapel pin. had promised to set up a similar commission Space Shuttle Commander Richard Searfoss on the eve of the assembly elections last agreed to carry the pin in his personal affects HON. EDOLPHUS TOWNS year. After coming to power in the state, it bag. Upon return of the shuttle, Mr. Kelly's pin OF NEW YORK abandoned the plan saying such a commis- will be returned to the family with a lasting me- IN THE HOUSE OF REPRESENTATIVES sion would only open old wounds. morial to Mr. Wilfred Kelly. Wednesday, May 6, 1998 The opportunity to facilitate such a rare Mr. TOWNS. Mr. Speaker, when the Akali CITIZENS COMMISSION FORMED TO privilege is one that I will cherish as a Member government in Punjab was elected, they prom- INVESTIGATE GENOCIDE IN PUNJAB of this distinguished body. ised to appoint a commission to investigate STATE TERRORISM, POLICE BRUTALITY WILL f the genocide against the Sikhs since 1984. FINALLY BE EXPOSED They have not kept that promise. As a result, Washington, D.C.—The World Sikh Council IN HONOR OF THE FAIRVIEW will appoint a Citizens’ Commission to inves- PARK WOMEN’S CLUB Justice Kuldip Singh, the President of the tigate the genocide in Punjab, according to World Sikh Council, announced that he will be today’s edition of The Times of India. Re- HON. DENNIS J. KUCINICH appointing a citizens' commission to conduct tired Supreme Court Justice Kuldip Singh, this investigation, according to an article that President of the World Sikh Council, an- OF OHIO ran on April 10 in the ``Times of India.'' nounced the formation of the commission, IN THE HOUSE OF REPRESENTATIVES Justice Kuldip Singh said that the commis- which will begin its work next month and is Wednesday, May 6, 1998 sion will be chaired by a retired Supreme expected to report on its findings by the end Court justice, that it will begin work next of the year, according to the article. Mr. KUCINICH. Mr. Speaker, I rise today to The Punjab state government under Akali honor the Fairview Park Women's Club of month, and that it will submit its report by the Dal Chief Minister Parkash Singh Badal had Fairview Park, Ohio for fifty years of dedicated end of the year. It will investigate atrocities by promised to set up a commission to inves- service, friendship, and education. militants as well as those by the state and tigate the genocide, but it broke that prom- Chartered in December 1948, the Fairview central governments. Since the Akali govern- ise and now boasts that it has not prosecuted Park Women's Club is committed to the im- ment took power in Punjab in March 1997, even a single police officer. The Akali Dal is provement of the community. This club was more than 100 atrocities by the state govern- a political ally of the ruling Bharatiya founded by over three-hundred women and ment have been documented. Janata Party (BJP) and currently has two We should take this opportunity to congratu- positions in India’s central government. continues its strong membership today. The ‘‘The Sikh Nation welcomes the formation club sponsors many events such as refresh- late Justice Kuldip Singh and all the human- of this commission,’’ said Dr. Gurmit Singh ments for council meetings and fundraising for rights activists who provided the impetus for Aulakh, President of the Council of its scholarship fund. The Women's Club also this commission. It is well past time for the Khalistan, the government pro tempore of is committed to the Hunger Center and makes truth about Indian genocide in Punjab, Khalistan. Khalistan is the sovereign, inde- an effort to donate food to the center at every Khalistan to come out. This commission is the pendent Sikh homeland, which declared its meeting. The friendship these women have beginning of that process. Just as the world independence on October 7, 1987. The Council of Khalistan leads the peaceful, democratic, developed over the years through service is has begun to learn the truth about the geno- cide in Armenia over eighty years ago and the nonviolent struggle to liberate Khalistan truly a lasting hallmark of this organization. from Indian rule. My fellow colleagues, join me in saluting the Holocaust more than 50 years ago, it is criti- ‘‘I would like to congratulate Justice Fairview Park Women's Club and their accom- cally important that the world learn the truth Kuldip Singh, as well as General Narinder plishments in the community. about India's genocide against the Sikhs and Singh, Inderjit Singh Jaijee, Dr. Kharak f the other minorities of South Asia, such as the Singh Mann, Dr. Gurdarshan Singh Dhillon, Christians of Nagaland, the Muslims of Kash- Dr. Sukhjit Kaur Gill, Bibi Baljit Kaur Gill, RWANDA GENOCIDE mir, the Dalit Untouchables, and others. the Movement Against State Repression Why has the Akali-BJP government in Pun- (MASR), the Punjab Human Rights Organi- jab resisted this probe? The only people who zation (PHRO), and the entire human-rights HON. CORRINE BROWN community in Punjab, Khalistan for main- OF FLORIDA resisted exposure of these other genocide taining the pressure that led to the forma- IN THE HOUSE OF REPRESENTATIVES campaigns were those who would be hurt by tion of this commission,’’ Dr. Aulakh said. ‘‘I Wednesday, May 6, 1998 the revelation. One has to wonder why the request the blessing of the Jathedar of the Akali government would make itself part of the Akal Takht, Bhai Ranjit Singh Ji, and his Ms. BROWN of Florida. Mr. Speaker, each coverup. In that light, the Citizens Commission support for the work of this commission,’’ he of us has a moral obligation to remember the is a great step forward. We await their report said. ‘‘The time has come for the full truth past, to tell our children, to leave a written so that the truth about the genocide in Punjab, about Indian genocide against the Sikh Na- record, and to work towards a brighter future. Khalistan will come out. I urge the other mi- tion to come out. It is time for the Sikh Na- tion to unite in support of this effort,’’ Dr. A few days ago, the Prime Minister of the in- norities under Indian rule to create similar terim government that directed the 1994 Aulakh said. commissions to bring out the truth about In- Since the Akali Dal government took over slaughter of hundreds of thousands of ethnic dia's treatment of them as well. in March 1997, over 100 atrocities by Punjab Tutsis in Rwanda pleaded guilty to genocide I would like to submit the ``Times of India'' police have been documented, including rape, and agreed to testify against others accused article as well as the excellent press release torture, abductions, and murders. ‘‘Dis- of planning the massacres. We have been told on the Commission from the Council of appearances’’ continue to occur. The state that the Rwanda genocide of 1994 was the Khalistan. I urge my colleagues to read them. government’s own human-rights commission reported that it has received over 200 com- worst massacre of human life since the World [From the Times of India, Apr. 10, 1998] War II holocaust. Nearly 1 million people were plaints. Since 1984, the Indian regime has SIKH COUNCIL PANEL TO PROBE PUNJAB killed in less than 100 days. The world knew murdered more than 250,000 Sikhs. VIOLENCE ‘‘The Armenian community is working the genocide was going to occur. Despite ad- CHANDIGARH. The World Sikh Council hard to get the U.S. Congress to recognize vanced warnings, the world community did not (WSC), headed by former Supreme Court the genocide against the Armenians 80 years mobilize to stop the horror. judge Kuldip Singh, has decided to set up a ago,’’ Dr. Aulakh pointed out. ‘‘The Jewish Today, we must ask: What are we doing to ‘‘people’s commission’’ to probe violence in community has made sure the world never help build Rwanda? As legislators, we need to Punjab during the militancy period. forgets the Holocaust over 50 years ago. The E778 CONGRESSIONAL RECORD — Extensions of Remarks May 6, 1998 Cambodian genocide in the 1970s is still re- Technology: Jim Roller, Apple Valley Uni- REAUTHORIZATION OF THE NA- membered,’’ he noted. ‘‘The only people who fied; Steve Bailey, Barstow Unified; Cindy TIONAL ORGAN TRANSPLANT resisted exposure of these brutal events were Robinson, China Unified; Ruthetta Brandt, ACT the people who were involved,’’ he said. ‘‘The resistance of the Akali government to expo- Fontana Unified; Leandra Pearson, Hesperia sure of the genocide against the Sikh Nation Unified; Kathy Gilbert, Ontario-Montclair HON. JOHN JOSEPH MOAKLEY on the flimsy excuse that it would reopen old School District; Jim Evans, Redlands Unified; OF MASSACHUSETTS wounds raises the question of whether they Noelle Kreider, Rialto Unified; Alexis Carlson, IN THE HOUSE OF REPRESENTATIVES are hiding their own culpability.’’ San Bernardino City Unified; John Patten, San Wednesday, May 6, 1998 f Bernardino City Unified; Bob Watson, San Bernardino City Unified; and Linda Jungwirth, Mr. MOAKLEY. Mr. Speaker, I rise today to RECOGNITION OF SAN Yucaipa-Calimesa Joint Unified. support the reauthorization of the National BERNARDINO COUNTY SCHOOLS Focus on the Future: Judith Pratt, Chaffey Organ Transplant Act (NOTA). On behalf of COMMUNITY COALITION PART- Joint Union High School District; Michele the thousands of American patients currently NERS Beutler, Fontana Unified; Dr. Bill Clark, Fon- awaiting a lifesaving organ, the many dedi- tana Unified; Carrie Childress, Hesperia Uni- cated physicians, surgeons and scientists ac- HON. GEORGE E. BROWN, JR. fied; Jeff Drozd, Morongo Unified; Patricia tively engaged in the research and practice of OF CALIFORNIA Merriam, Morongo Unified; Skip Brown, Red- transplantation, I ask my colleagues to support IN THE HOUSE OF REPRESENTATIVES lands Unified; Laura Brundige, Redlands Uni- the reauthorization of NOTA. As many of my colleagues know, two and a fied; Jerry Bennett, San Bernardino City Uni- Wednesday, May 6, 1998 half years ago I underwent a successful liver fied; Geri Kubanek, York-San Bernardino City Mr. BROWN of California. Mr. Speaker, I transplant that saved my life and literally gave Unified; Jere Lloyd, San Bernardino City Uni- rise today to recognize the hard work and me a second chance. However, there are oth- fied; Leslie Rodden, San Bernardino City Uni- dedication of the teachers, staff and partners ers that are not as fortunate as I was. Cur- fied; and Pam Stockard, San Bernardino City involved in the San Bernardino County rently, there are over 58,000 people waiting Unified. Schools Community Coalition projects. It is all for a lifesaving donor organ and an estimated School Safety: Norma Ashworth, Apple Val- too infrequent that we take the opportunity to eight people a day die waiting for an organ ley Unified; Robert Martinez, Chaffey Joint acknowledge and commend those who help transplant. These alarming statistics translate Union High School District; David Mann, Col- improve the lives of our students. into an increase of 255 percent over the last ton Joint Unified; Beth Henry, Fontana Unified; Those who have spent the past several ten years. Although there have been many Sally Foster, Hesperia Unified; Marc Divine, years in Community Coalition projects have new scientific advances in the field of solid Redlands Unified; Cathy Magana, San contributed a great deal to our community and organ transplantation over the last eight years, Bernardino City Unified; Tim Kelleghan, San to the futures of our children. County students the major obstacle continues to be that the de- Bernardino City Unified; Tina Maeda, San benefit from excellent programs in the areas of mand for donor organs remains far less than Bernardino City Unified; and Jimmie Jimenez, early literacy, technology, school safety, and the supply. Yucaipa-Calimesa Joint Unified. career preparation. Given the rapid scientific advancements and Community Coalition Verbal Judo Instruc- It is an honor and privilege for me to recog- increasing numbers of patients requiring organ tors: Richard Laabs, Redlands Unified; Mi- nize the following Community Coalition part- transplants, I believe that it is imperative to re- chael Vance, San Bernardino County Schools; ners, and to thank them for their dedication examine and update the nation's system for Debbie Fairfax, Upland Unified; and Joe and commitment to the children of San organ donation and transplantation. Over the Kaempher, Victor Valley Union High School Bernardino County. They serve as an example last 30 years, transplantation of solid organs District. for us all. has moved from experimental to accepted Early Literacy: Diane Harlan, Adelanto f therapy, with over 20,000 transplants per- School District; Celeste Danjou, Apple Valley formed in 1997 alone. I am living proof that Unified; Dawn Fletcher, Apple Valley Unified; CELEBRATING LISA KAPLAN’S transplantation works, it saves lies and it im- Sue Rhoades, Apple Valley Unified; Mary BAT MITZVAH proves the quality of people's lives. The suc- Gee, Barstow Unified; Terry Rogers, Barstow cess of this procedure has improved greatly Unified; Audrey Howard, Bear Valley Unified; HON. ROD R. BLAGOJEVICH over the last few years with almost all solid Tina Pelletier, Bear Valley Unified; Donna OF ILLINOIS Libutti, Central School District; Luanne organ recipients enjoying an 83 to 97 percent IN THE HOUSE OF REPRESENTATIVES survival rate at one year. However, despite im- Rhodes, Central School District; Patty Wednesday, May 6, 1998 DiPaolo, Chino Unified; Audrey Folden, Chino proved survival rates there still remains a seri- Unified; Helen Rockett, Chino Unified; Hester Mr. BLAGOJEVICH. Mr. Speaker, I rise ous donor shortage in this country and we Turpin, Colton Joint Unified; Ava Gonick, today to send a special congratulations to Lisa must do more to increase awareness as to the Cucamonga School District; Susan Birrell, Kaplan, who will celebrate her Bat Mitzvah on importance of organ donation. Mr. Speaker, I ask my colleagues to support Hesperia Unified; Vickie Holman, Hesperia Friday, May 8. The ceremony marks a cul- Unified; Aleen Massey, Hesperia Unified; Liz mination of religious study and community the reauthorization of the National Organ Fragua, Lucerne Valley Unified; Cathy Rich- work that is a point of pride for her parents, Transplant Act. More importantly, I would urge ardson, Morongo Unified; Joan Carey, On- James and Allin, as well as the many friends my colleagues to talk to their families and tario-Montclair School District; Sue Cornell, of the Kaplan family. loved ones about organ donation and make Ontario-Montclair School District; Lynne Lisa is an outstanding young woman with a their intentions known so that someone can Merryfield, Ontario-Montclair School District; very bright future ahead. Lisa attends Daniel receive the ``gift of life.'' Arlene Mistretta, Ontario-Montclair School Dis- Wright Junior High School in Lake Forest, Illi- f trict; Janie Pierson, Ontario-Montclair School nois. She's involved in many varied activities SUBMITTED IN SUPPORT OF H.R. District; Darwin Ruhle, Ontario-Montclair including student council, performing trumpet 3605, ‘‘THE PATIENTS’ BILL OF School District; Iris Tramp, Ontario-Montclair in the band, and playing on the baseball team. RIGHTS ACT’’ School District; Denise Cates, Darnell-Red- Lisa has distinguished herself academically by lands Unified; Caroleen Cosand, Redlands making the honor roll and being named to the HON. EDWARD J. MARKEY Unified; Jean Fenn, Rim of the World Unified; National Junior Honor Society. Outside of OF MASSACHUSETTS Carol Besser, San Bernardino City Unified; school, Lisa has committed herself to being a IN THE HOUSE OF REPRESENTATIVES Londa Carter, San Bernardino City Unified; regular participant in her synagogue and is an Denise Dugger, Snowline Joint Unified; Cyn- active student of Jewish tradition. And in her Wednesday, May 6, 1998 thia Freymueller, Snowline Joint Unified; home, Lisa has been a loving daughter to her Mr. MARKEY. Mr. Speaker, today I join with Rachael Emergy, Upland Unified; Judy Lowrie, parents and a loving sister to her siblings. Representatives JOHN DINGELL and GREG Upland Unified; Marge Ruffalo, Upland Uni- The Bat Mitzvah ceremony will be just the GANSKE, Leader DICK GEPHARDT, Leader TOM fied; Laura Chapman, Victor Elementary first step in Lisa's coming of age and the as- DASCHLE, Senator TED KENNEDY, Senator BAR- School District; Luis Iabrra, Victor Elementary sumption of adult responsibilities. This is de- BARA BOXER, and the many patient and health School District; Chris Richards, Victor Elemen- servedly a proud moment for the Kaplan fam- groups, in support of H.R. 3605, the Patients' tary School District; and Melody Davidsmeier, ily, and I welcome Lisa's increased involve- Bill of Rights Act. We all owe a debt of grati- Yucaipa-Calimesa Joint Unified. ment in our schools, church, and community. tude to Congressman DINGELL for his strong May 6, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E779

and sure leadership on this issue; Mr. DINGELL Medicare who does not support more re- In Medicare alone, the agency is expected got involved early, pulled the key players to- sources for the beleaguered Health Care Fi- to devise new payment systems for home gether and produced an excellent bill which nancing Administration. health, hospital outpatient, and nursing Following is an excellent article by Julie home care; a new ‘‘risk adjuster’’ and new will, in fact, protect patients once enacted. I payment methodologies for managed care want to say a special word of thanks to Rep- Rovner of the National Journal's Congress plans; and rules for new ‘‘provider-sponsored resentative GREG GANSKE, with whom I have Daily, entitled Congress v. HCFA: Bureauc- organizations.’’ And that is not to mention been working closely for some time on the Pa- racy Bashing 101. devising how to inform Medicare’s 39 million tient Right to Know Act (H.R. 586) which I would just add to Ms. Rovner's article that beneficiaries about a vast array of new would ban gag clauses from managed care when HCFA sought $16 million this spring it ‘‘choices’’ available to them this fall. plans. His power of persuasion over some of paid for it by offering to slash $16 million from At the same time, HCFA is responsible for his Republican colleagues to join him in co- another Medicare-related accountÐbut even approving each state’s new children’s health insurance program, and for helping states lo- sponsoring the Patients' Bill of Rights Act will that was denied by the micro-managing Con- gress. cate and enroll the millions of children eligi- be very helpful in passing a managed care re- ble but not yet signed up for Medicaid. form bill this year. Medicare beneficiaries should know who to With that much more to do, you might Representative GANSKE and I have been in- blame when they are unable to get their ques- think Congress would also give HCFA more volved for quite some time in putting together tions answered from HCFA: it is the Congress money to do it with. But it is so easy to bash a bill which would prohibit managed care that should be blamed. the bureaucracy that the Senate could not plans from restricting the medical communica- [From the National Journal’s Congress resist striking HCFA’s request for an addi- tions between doctors and patients based on Daily, Apr. 23, 1998] tional $16 million for FY98 during consider- ation of the supplemental appropriations bill what the plan did and did not cover. Our bill CONGRESS V. HCFA: BUREAUCRACY BASHING last month. 101 was based on a very simple premise: when HCFA officials said $6 million of that re- you're a patient, What you don't know can hurt (By Julie Rovner) quest was to hire workers to enforce HIPAA you. And our anti-gag clause bill, which now Frustrated politicians like to point out in states that have yet to pass their own leg- has 300 co-sponsors, is included in the Pa- how hard it can be to please constituents islation. The states in question contain a tients' Bill of Rights Act. who simultaneously demand contradictory total of 54 million citizens. ‘‘The work re- The Patients' Bill of rights Act expands on things—like those voters who all at once quires knowledge and expertise in the area of that principle. It says: What you don't know want increased spending, tax cuts, and no health insurance regulation at the state and don't have access to and aren't protected new additions to the deficit. But sometimes, level,’’ said the agency in its supplemental the politicians themselves behave just as in- request. ‘‘The nature of this work is totally from can hurt you. consistently. That's why the Patients' Bill of Rights Act unlike that performed by HCFA’s work- Take the Health Care Financing Adminis- force.’’ makes it possible for people to have some tration, known—and almost universally de- But that plea fell on deaf ears. ‘‘Do we choice of plans, access to specialty and emer- rided—as HCFA (pronounced Hickfa). The want to turn that much additional bureauc- gency care, and direct access to OB/GYN HHS subunit that oversees Medicare, Medic- racy over to HCFA, that much more money, care and services for women. aid, and, since last year, the new children’s or can’t they borrow some more of those em- That's why the Patients' Bill of Rights Act health insurance program, HCFA is the agen- ployees that they now have who are probably makes it possible for patients to get more in- cy politicians most love to hate. In 1992, reading through reports that are obsolete formation about their health plans, and have when he was running for president, candidate and maybe not doing so much good?’’ asked Clinton in his ‘‘Putting People First’’ mani- Senate Majority Whip Nickles on the floor greater faith that the confidentiality of their festo vowed to ‘‘scrap [HCFA] and replace it medical records will be protected. March 25. with a health standards board made up of Evidently they can, according to the Sen- And that's why the Patients' Bill of Rights consumers, providers, business, labor and ate. Members adopted Nickles’ amendment Act recognizes that patients are also health government.’’ to strip the funding from the bill after de- care consumers and establishes strong con- In short, anybody except bureaucrats. feating, 51–49, an attempt by Senate Labor sumer protection standards, internal and exter- During the heated Medicare debate of 1995, and Human Resources ranking member Ed- nal grievance procedures, and measures Speaker Gingrich claimed he never meant to ward Kennedy, D-Mass., to keep only half suggest Medicare would ‘‘wither on the vine’’ which respect and protect the provider-patient the money. under the GOP’s budget plan, merely HCFA. The result of all this, says former CBO Di- relationship. But Congress’ second favorite pastime, rector Reischauer, is ‘‘setting HCFA up’’ for When President Clinton delivered his State after beating up on HCFA, seems to be giving failure. ‘‘It’s classic Congress,’’ he said. of the Union speech on January 27Ð99 days the agency even more work to do. Since 1996, ‘‘There’s no way HCFA can accomplish the three different bills have increased HCFA’s agoÐone of the single most sustained waves changes Congress has asked [it] to do. Then responsibilities exponentially. of applause followed the president's call to ac- [Congress] will be back in two years having ‘‘It’s the greatest workload in the history tion for Congress: to pass a consumer bill of oversight hearings about how HCFA failed to of the agency,’’ said Harvard Professor Jo- rights and responsibilities for America's pa- do its job.’’ seph Newhouse, vice chairman of the Medi- Mark your calendars now. tients. Well, tomorrow, we will hit Day 100 of care Payment Advisory Commission. total inaction. The American people are de- And it is not like HCFA was a sleepy bu- f manding that Congress fill their managed care reaucratic backwater: Running Medicare and reform prescriptionÐthe Republican leader- Medicaid already required it to supervise the CONGRATULATIONS TO PRESIDENT ship should fill that prescription with the Pa- healthcare programs that will serve nearly LEE-TENG-HUI OF CHINA ON TAI- tients' Bill of Rights Act. 75 million Americans in 1998 and cost the fed- WAN Once again, I'd like to thank Congressman eral government $300 billion in 1997, 18 per- cent of the entire federal budget. DINGELL, Senator KENNEDY, our Leaders and HCFA’s latest onslaught began in 1996, HON. JIM McDERMOTT all of my colleagues who are working so hard with passage of the Health Insurance Port- OF WASHINGTON to move this legislation forward. ability and Accountability Act. Not only did IN THE HOUSE OF REPRESENTATIVES f HIPAA give the agency broad new respon- sibility to root out fraud and abuse in Medi- Wednesday, May 6, 1998 MEDICARE: THE NEED FOR care (the accountability part), it also made ADMINISTRATIVE FUNDS Mr. MCDERMOTT. Mr. Speaker, I would like HCFA the fallback enforcement agency for to congratulate and extend my best wishes to states that failed to pass their own laws to President Lee Teng-hui and Vice President HON. FORTNEY PETE STARK implement the portability part. As of now, that includes five states: Rhode Island, Mas- Lien Chin of the Republic of China on Taiwan OF CALIFORNIA on their second anniversary in office on May IN THE HOUSE OF REPRESENTATIVES sachusetts, Missouri, Michigan, and Califor- nia. 20, 1998. Wednesday, May 6, 1998 Later that fall, Congress ordered HCFA to In the last few years, Taiwan has continued Mr. STARK. Mr. Speaker, members con- implement provisions tacked onto the VA– to prosper, having survived the latest financial stantly decry the problem of fraud, waste, and HUD appropriations bill barring ‘‘drive crisis. As the world's fourteenth largest eco- through’’ baby deliveries and requiring lim- nomic entity, Taiwan plays a significant part in abuse in MedicareÐand constantly underfund ited parity for mental health coverage. the agency that is responsible for administer- But that was only an appetizer. Last year’s global trade and Asian economies. Taiwan's ing Medicare. Balanced Budget Act, according to HCFA per capita income of $13,000 U.S. dollars, one It is Congressional hypocrisy at its height. Administrator Nancy-Ann Min DeParle, gave of the highest in Asia, provides a rich market No one should criticize the administration of the agency about 300 new tasks. for U.S. consumer goods. E780 CONGRESSIONAL RECORD — Extensions of Remarks May 6, 1998 Alongside its economic success, Taiwan five years of service as President and C.E.O. Jama'' team to two straight trips to the NCAA has embarked upon a course of full democra- of the Polonia Bank, of Philadelphia. Mr. Final Four in the early 80s. tization, including the free and direct election Lukiewski now spends one day a week work- Drexler starred at the University of Houston of the president, political pluralism, press liber- ing for the St. Joseph's Villa retirement home from 1980±1983. He currently ranks 13th on alization, island-wide elections and a full con- where he helps in the daily responsibilities of the school's all-time scoring list with 1,383 stitutional reform. the home. Whether it is supplying the patients points. The Republic of China on Taiwan is a show- with ice water, supplies, or just friendly con- As a player in the NBA, Clyde has always case of free enterprise and democracy at versation, Mr. Lukiewski is always available for been recognized for his character and poise in work. Much of Taiwan's success is directly at- help. the public spotlight. Now he will have the op- tributable to its leadership. Mrs. Lukiewski is the devout and yet easy portunity to teach a new generation of basket- Congratulations to our friends in Taiwan. going mother of the couple's seven children. ball players how to conduct themselves with f She is quite active in their local church, St. dignity and professionalism both on and off James' Parish in Cheltenham, and in the Re- the court. PERSONAL EXPLANATION tired Officer's Association of the Willow Grove Drexler will provide young basketball players Naval Air Station. Mrs. Lukiewski was also the with the determination and guidance needed HON. VITO FOSSELLA president of the Woman's Club, and still re- to succeed in basketball both at the collegiate OF NEW YORK mains a member of that organization. The and national level. IN THE HOUSE OF REPRESENTATIVES couple has been in their present Cheltenham I am glad to welcome him as the coach for the Houston Cougars. But more importantly, I Wednesday, May 6, 1998 home now for fifteen years. On May 9th the couple is renewing their wish him and the team good luck on Drexler's Mr. FOSSELLA. Mr. Speaker, I wanted to vows in the same church in which they were first season as coach. take this opportunity to inform you that I was wed in, fifty years ago. Several members of f unable to attend the session of the House of the original wedding party will attend the cele- Representatives on May 5, 1998 and for a bration, as well as numerous friends and rel- PAKISTANI ROLE IN NUCLEAR portion for May 6, 1998. My absence was due atives. A number of the couple's grandchildren PROLIFERATION to the fact that my son Dylan Fossella was will be offering the gifts and performing the hospitalized and had to undergo surgery. readings for the ceremony. Monsignor Francis HON. FRANK PALLONE, JR. I would like the RECORD to reflect that I Ferret will be officiating the mass, accom- OF NEW JERSEY would have voted in favor of the passage of panied by Monsignor Lee Korda, and Rev- IN THE HOUSE OF REPRESENTATIVES H.R. 1872, H. Res. 267 and H. Con. Res. 220. erend Raymond Himsworth. Wednesday, May 6, 1998 f Mr. Speaker, I am more than honored to congratulate this beautiful couple on their out- Mr. PALLONE. Mr. Speaker, I rise to bring 50TH WEDDING ANNIVERSARY OF standing fifty years of marriage. I hope that to the attention of the members of this House, MR. AND MRS. LUKIEWSKI the love shared between these two people is and of the American people, some recent, dis- a model for us all, let us all share equal suc- turbing information about the continued role of HON. ROBERT A. BORSKI cess and happiness that this couple has en- Pakistan in the transfer and proliferation of nu- OF PENNSYLVANIA dured. I wish Mr. and Mrs. Edward and Stella clear weapons and delivery systems. IN THE HOUSE OF REPRESENTATIVES Lukiewski fifty more years of utter happiness Last month, the U.S. State Department de- termined that sanctions should be imposed on Wednesday, May 6, 1998 and marriage. f Pakistan, pursuant to the Arms Export Control Mr. BORSKI. Mr. Speaker, I rise today to Act. This decision comes in the wake of the congratulate and honor a truly remarkable WELCOMING CLYDE DREXLER AS determination that entities in Pakistan and couple from my Congressional district, Mr. and THE NEW BASKETBALL COACH North Korea have engaged in missile tech- Mrs. Edward and Stella Lukiewski. On May FOR THE UNIVERSITY OF HOUS- nology proliferation activities. According to the 8th, the couple will celebrate their Golden An- TON COUGARS notice published in the Federal Register of niversaryÐfifty years of marriage. Their story May 4, 1998, Khan Research Laboratories in begins when the young couple grew up just HON. GENE GREEN Pakistan, and Changgwang Sinyong Corpora- two blocks from one another in the Port Rich- OF TEXAS tion, also known as the North Korea Mining mond section of Philadelphia. They even at- IN THE HOUSE OF REPRESENTATIVES Development Trading Corporation, are subject tended the same grade school, but would not to sanctions including denial of export li- meet until after their graduation. The couple Wednesday, May 6, 1998 censes, a ban on United States Government first encountered one another when Mr. Mr. GREEN. Mr. Speaker, I would like to contracts with these entities, and a ban on im- Lukiewski returned for a brief time during the welcome the new basketball coach for the portation into the U.S. of products produced second World War. Unfortunately, Mr. Cougars at the University of HoustonÐClyde by these two entities. The sanctions are in ef- Lukiewski returned to the Pacific and would Drexler. fect for two years. have to wait quite sometime before they would Clyde Drexler is truly a coach who not only Although the sanctions seem relatively mod- once again see each other. understands the game but understands bas- est, I still want to applaud the Clinton Adminis- Soon after Mr. Lukiewski's return the couple ketball in HoustonÐboth collegiateÐthe Hous- tration for imposing the sanctions on these began to date and on May 8, 1948 they were ton Cougars and nationalÐthe Houston Rock- companies. I hope that enforcement efforts wed in St. Adalbert's church in Philadelphia, ets. against these and other firms involved in the Pennsylvania. It was the same church that A perennial All-Star and a member of the proliferation of missile technology will remain they had both received all of their sacraments 1992 Olympic Dream Team, Drexler twice led strong. while growing up. Immediately after their mar- the Blazers to the NBA finals. It wasn't until he As if this recent disclosure about Pakistani riage, Mr. and Mrs. Lukiewski moved into a joined the Houston Rockets midway through nuclear missile technology with North Korea humble apartment across from St. Adalbert. his 12th campaign, however, that he finally were not shocking enough, there are reports They would live here until it was time to start earned a championship ring. this week that the International Atomic Energy a family. The couple then moved to the May- He has been a leading scorer at 18.5 points Agency (IAEA) is investigating whether a lead- fair section of Northeast Philadelphia where per game for the Rockets. The 10-time All- ing Pakistani scientist offered Iraq plans for they would spend the next twenty years. Mr. Star missed six games in January with an in- nuclear weapons. The information, first re- and Mrs. Lukiewski are the proud parents of jured shoulder. ported in Newsweek magazine, has been con- seven children, and eleven grandchildren, He spent the first 111¤2 seasons of his ca- firmed by the IAEA. According to the report, in three of them being a group of triplets. reer with the Portland Trail Blazers before get- October 1990, prior to the Persian Gulf WarÐ Mr. Lukiewski has been a retired Army Re- ting traded to the Rockets on February 14, but after the Iraqi invasion of Kuwait, while our serve Colonel for the past ten years. He 1995. troops were massing in Saudi Arabia under served in Europe and the Pacific during the As a forward in college, Drexler along with Operation Desert ShieldÐa memorandum World War II and is an actual veteran of the fellow current Rocket teammate and All-Star from Iraq's intelligence service to its nuclear Normandy invasion. For the past three years Hakeem Olajuwon, formed a front line that weapons directorate mentioned that Abdul he has also been actively retired after twenty- took the University of Houston's ``Phi Slama Qadeer Khan, the Pakistani scientist, offered May 6, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E781 help to Iraq to ``manufacture a nuclear weap- ter of U.S. F±16s, the delivery of which was that the need for shelter, care and education on,'' according to Newsweek. The document also held up by the Pressler Amendment, for parentless girls would grow as the City of was among those turned over by Iraq after the being delivered to Pakistan. Milwaukee developed. With the support of the 1995 defection of Saddam Hussein's son-in- Mr. Speaker, Pakistan has continued to take Catholic Diocese of Milwaukee, the order con- law, Lt. Gen. Hussein Kamel, who ran Iraq's actions that destabilize the region and the structed a building in what is now downtown secret weapons program. world. Providing and obtaining weapons and Milwaukee and, in 1850, incorporated the or- The Pakistani Government has denied the nuclear technology from authoritarian, often ganization under the name St. Rosa's. report, and the IAEA has not yet made any unstable regimes is a pattern of Pakistani pol- During the latter half of the 19th Century, determination. But this report is part of a very icy that is unacceptable to U.S. interests and the Sisters constructed a new home on Mil- troubling pattern involving Pakistan and efforts the goal of stability in Asia. Pakistan is a waukee's east side with room to shelter over to either obtain nuclear weapons and delivery country that faces severe development prob- 100 girls. Under the administration of the systems, or to share this technology with other lems. Its people would be much better served Archdiocese of Milwaukee and with the sup- unstable regimes. if their leaders focused on growing the econ- port of the United Way of Milwaukee, St. Rose Recently, Pakistan test-fired a new missile, omy, promoting trade and investment and fos- brought onboard a staff of social workers, known as the Ghauri, a missile with a range tering democracy. U.S. policy needs to be child care workers, teachers and other profes- of 950 miles, sufficient to pose significant se- much stronger in terms of discouraging the sionals. During the 1970s, St. Rose was incor- curity threats to Pakistan's neighbors, includ- continued trend toward destabilization and porated as an independent agency and moved ing India, and to launch a new round in the weapons proliferation that the Pakistani gov- to its present home on Milwaukee's west side. South Asian arms race. I am pleased that the ernment continues to engage in. The addition of an activity center in 1988 and recently elected Government of India has f a school in 1995 allowed St. Rose to expand demonstrated considerable restraint in light of and enhance the recreational and educational this threatening new development, a view CAMPAIGN FINANCE REFORM opportunities available to the girls under its echoed by the U.S. Delegation that travelled care. to the region recently with our U.N. Ambas- HON. RON KIND The spirit of community and shared purpose sador Bill Richardson. OF WISCONSIN runs deep in my home state, and when Wis- While I welcome the sanctions against North IN THE HOUSE OF REPRESENTATIVES consinites find a need unmet, they work to- Korea, I remain very concerned that China is gether and find a way to meet it. St. Rose Wednesday, May 6, 1998 also known to have transferred nuclear tech- Residence is a remarkable example of this nology to Pakistan. Our Administration has Mr. KIND. Mr. Speaker, here we go again. spirit. That spiritÐthe commitment to serve the certified that it will allow transfers of nuclear The Republican leadership of the of the House community by uplifting its most helplessÐ technology to ChinaÐa move I continue to of Representatives have repeatedly broken gives Wisconsin, and St. Rose Residence, strongly oppose. their promise to the people of this country cause to look back on the last 150 years with Mr. Speaker, for years, many of our top dip- about campaign finance reform. First the lead- pride and to look forward to the next 150 lomatic and national security officials have ad- ership refused to allow any vote on campaign years with confidence. vocated a policy of appeasement of Pakistan, finance to come to the floor. Next they brought Mr. Speaker, I ask that the House join me citing that country's strategic location and co- forward a series of sham bills that, through the in congratulating St. Rose Residence on 150 operation in Afghanistan. I think that the time use of parliamentary tricks were destined to years of caring service to Wisconsin children has long since passed for us to reassess our fail. Then, under pressure from a discharge and families. relationship with Pakistan. The two develop- petition, they finally relented and agreed to f ments I cited todayÐsanctions over missile allow a vote before May 15. Now we hear that technology proliferation with North Korea and the leadership is going to delay a vote on TRIBUTE TO SENATOR ROBERT C. allegations of efforts to provide nuclear weap- campaign reform until mid June. How many BYRD OF WEST VIRGINIA ON on technology to IraqÐare only the latest de- more times will the Republican leadership THE CASTING OF HIS 15,000TH velopments. North Korea, a closed society, the break their word to the public? VOTE IN THE UNITED STATES last bastion of Stalinism, is also one of the po- I am outraged by the leadership's continued SENATE tentially most dangerous nations on earth. The effort to stall on this crucial issue and I rise U.S. has been trying to pursue policies to today to demand that we vote on campaign fi- HON. NICK J. RAHALL, II lessen the threat of nuclear proliferation from nance reform next week. This issue has been OF WEST VIRGINIA North Korea. Now we see that Pakistan is co- debated extensively, there is an excellent bill, IN THE HOUSE OF REPRESENTATIVES operating with North Korea on missile tech- H.R. 2183, which is ready to be voted on, and Wednesday, May 6, 1998 nology. any further delay is unnecessary. It is time for And, Mr. Speaker, I don't need to remind the Republican leadership to finally keep their Mr. RAHALL. Mr. Speaker, I rise to recog- you and the American people of American word and allow a vote on campaign finance nize and to commend West Virginia's senior concerns about Saddam's regime in Iraq. Yet, reform. The people of my district will not ac- Senator, ROBERT C. BYRD, on the occasion of now credible reports have surfaced suggesting cept ``no'' for an answer. having cast his 15,000th vote in the United the possibility of nuclear cooperation between f States Senate. Iraq and a top Pakistani scientist. Having cast that 15,000th vote on May 5, Concerns about Pakistani nuclear weapons ST. ROSE RESIDENCE: 150 YEARS 1998 marks consistent voting by Senator BYRD proliferation efforts have been a concern for OF CARING for over 40 years, giving him a voting average U.S. policy makers for more than a decade. In of 98.7 percent for his entire tenure, and earns 1985, the Congress amended the Foreign As- HON. THOMAS M. BARRETT for him the title of most votes cast by any sistance Act to prohibit all U.S. aid to Pakistan OF WISCONSIN Senator in the history of the United States if the President failed to certify that Pakistan IN THE HOUSE OF REPRESENTATIVES Senate. did not have a nuclear explosive device. I believe it is only fitting to note that his Known as the Pressler Amendment, for the Wednesday, May 6, 1998 15,000th vote was cast in favor of the ``Work- former U.S. Senator who sponsored the provi- Mr. BARRETT of Wisconsin. Mr. Speaker, force Investment Partnership Act of 1998'', be- sion, it was invoked in 1990 by President on May 9th, friends of St. Rose Residence are cause no Member of the U.S. Senate has Bush when it became impossible to make gathering in Milwaukee to celebrate the pro- done more to provide for the training and edu- such a certification. The law has been in force gram's sesquicentennial anniversary. I appre- cation of this nation's workforce than Senator since, but we have seen ongoing efforts to ciate the opportunity to share with my col- ROBERT C. BYRD. His understanding and de- weaken the law, including a provision in the leagues the story of this exceptional residen- votion to the needs of his West Virginia con- FY 98 Foreign Operations Appropriations bill tial care program. stituents, and particularly his well documented that carves out certain exemptions to the law. A few weeks before President Polk enacted efforts to ensure a strong economy in our Several years ago, $370 million worth of U.S. legislation admitting Wisconsin to the Union, State, has included his enormously successful conventional weapons to Pakistan, which had the Daughters of Charity accepted the respon- efforts on behalf of securing jobs for the un- been tied up in the pipeline since the Pressler sibility of caring for a young girl whose parents employed. Amendment was invoked, was shipped to had died during the family's long voyage from Senator ROBERT C. BYRD has been setting Pakistan. And there is the ever-present spec- Ireland to Milwaukee. The Sisters recognized voting records in the Senate since he was E782 CONGRESSIONAL RECORD — Extensions of Remarks May 6, 1998 sworn in early in 1959. On January 8, 1959, Most certainly, he is all of those things. alike to aspire to dignity, to knowledge, to trust Senator BYRD cast his first vote in the U.S. But more than that, he is the most revered, and to honor whether they are your colleagues Senate. Fittingly, it was a vote on Senate pro- most beloved, most respected, member of in the U.S. Senate, or a young student some- cedure. On April 27, 1990, the Senator cast Congress that his proud State of West Virginia where wondering whether he or she should his 12,134th vote, earning him the record for has ever sent to Washington to represent think becoming a public servant. greatest number of rollcall votes in Senate his- them. I had the high honor of serving on Senator tory. On July 27, 1995, he became the first As a historian himself, Senator BYRD is now BYRD's staff before returning to West Virginia Senator in history to cast 14,000 votes, and a part of history, and will be always remem- and running for public office. I know first-hand he has now built on his record number of roll- bered for both the quantity and quality of his of Senator BYRD's example that encourages call votes to be the first person in Senate his- work, his service to his fellow Senators, and and inspires others to also serve their country tory to cast 15,000 votes. his unstinting service to West Virginians for by seeking public office. In a historical context, Senator BYRD cast nearly half a century. the first of his 15,000 votes with Senators Certainly, no man or woman who has ever On May 5, 1998, Senator BYRD wondered John Kennedy and Lyndon Johnson, both of served in that body has ever loved the Sen- where today's hero's areÐwho he wondered whom were there in the Chamber with him. ate, as an institution, more than Senator ROB- will the youth of today look up to as their When he cast his first vote, Hawaii was not ERT C. BYRD, nor shared in the great esteem hero's. yet a State, and the United States had not yet and honor the title of Senator has given to Well, one of today's hero's resides in the put a man in space. him. On May 5, 1998, as he made history in United States Senate where, by example, he For 40 years, Senator BYRD has managed the Senate, he referred to himself as ``. . . a inspires and encourages all within the sound the run the Senate as Majority Leader, chaired prince who still glories in the name of ``Sen- of his voice, and his name is ROBERT C. BYRD. the Senate Appropriations Committee, and ator.'' To him, it is and has always been a po- has studied and written volumes on the history sition of trustÐa trust he has honored all of I wish to convey to my friend, my mentor, of the Senate, earning his place as the his life. my colleague Senator BYRD, my highest es- unrivaled expert on Senate rules. Congratulations, Senator BYRD, on the oc- teem, my deepest personal respect, and my In the future, scholars and historians will casion of casting your 15,000th vote, and for overwhelming pride in him as a strong and write about Senator BYRD's remarkable impact having been the only U.S. Senator in the life most distinguished man, as a loving husband, on the Senate, as an orator, a parliamentary of the Senate to achieve that pinnacle. father and grandfather, and as a greatly hon- expert, a Senate historian, a legislative tacti- But more, I congratulate you for inspiring ored and trusted United States Senator from cian, and an outstanding leader. others, and encouraging both young and old West Virginia. May 6, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E783 SENATE COMMITTEE MEETINGS national Religious Persecution, and a and protect the National Park System, Title IV of Senate Resolution 4, Special Adviser on International Reli- and S. 1614, to require a permit for the gious Freedom within the National Se- making of motion picture, television agreed to by the Senate on February 4, curity Council. program, or other forms of commercial 1977, calls for establishment of a sys- SD–419 visual depiction in a unit of the Na- tem for a computerized schedule of all tional Park System or National Wild- meetings and hearings of Senate com- MAY 13 life Refuge System. mittees, subcommittees, joint commit- 9:30 a.m. SD–366 tees, and committees of conference. Energy and Natural Resources This title requires all such committees Business meeting, to consider pending MAY 18 to notify the Office of the Senate Daily calendar business. 2:00 p.m. Digest—designated by the Rules Com- SD–366 Governmental Affairs mittee—of the time, place, and purpose Labor and Human Resources Oversight of Government Management, Re- of the meetings, when scheduled, and Business meeting, to consider pending structuring and the District of Colum- calendar business. any cancellations or changes in the bia Subcommittee SD–430 To hold hearings to examine the role of meetings as they occur. 10:00 a.m. As an additional procedure along faith-based charities in the District of Appropriations Columbia. with the computerization of this infor- Defense Subcommittee SD–342 mation, the Office of the Senate Daily To hold hearings on proposed budget es- Digest will prepare this information for timates for fiscal year 1999 for the De- MAY 19 partment of Defense. printing in the Extensions of Remarks 10:00 a.m. SD–192 section of the CONGRESSIONAL RECORD Labor and Human Resources Foreign Relations on Monday and Wednesday of each To hold hearings to examine grievance To hold hearings on the Montreal Proto- week. procedures in the health care industry. col No. 4 to Amend the Convention for Meetings scheduled for Thursday, SD–430 the Unification of Certain Rules Relat- May 7, 1998, may be found in the Daily ing to International Carriage by Air MAY 20 Digest of today’s RECORD. (Ex. B, 95th Cong., 1st Sess.), the Inter- 10:00 a.m. MEETINGS SCHEDULED national Convention for the Protection of New Varieties of Plants (Treaty Doc. Indian Affairs 104–17), the Grains Trade Convention Business meeting, to mark up S. 1691, to MAY 8 and Food Aid Convention (Treaty Doc. provide for Indian legal reform. 9:30 a.m. 105–4), the Convention on the Inter- SR–485 Joint Economic national Maritime Organization (Trea- To hold hearings to examine the employ- ty Doc. 104–36), and the Trademark Law MAY 21 ment-unemployment situation for Treaty (Treaty Doc. 105–35). 10:00 a.m. April. SD–419 Labor and Human Resources 1334 Longworth Building 2:00 p.m. To hold hearings on genetic information Foreign Relations issues. MAY 11 Near Eastern and South Asian Affairs Sub- SD–430 2:00 p.m. committee 2:00 p.m. Appropriations To hold hearings to examine the eco- Energy and Natural Resources Defense Subcommittee nomic and political situation in India. Energy Research and Development, Pro- To hold hearings on proposed budget es- SD–419 duction and Regulation Subcommittee timates for fiscal year 1999 for the De- To hold hearings on S. 1141, to amend the partment of Defense. MAY 14 Energy Policy Act of 1992 to take into SD–192 9:00 a.m. account newly developed renewable en- Agriculture, Nutrition, and Forestry ergy-based fuels and to equalize alter- MAY 12 To hold hearings on the Department of native fuel vehicle acquisition incen- 9:00 a.m. Agriculture’s Year 2000 compliance. tives to increase the flexibility of con- Appropriations SR–332 trolled fleet owners and operators, and Military Construction Subcommittee 9:30 a.m. S. 1418, to promote the research, identi- To hold hearings on proposed budget es- Governmental Affairs fication, assessment, exploration, and timates for fiscal year 1999 for the De- Permanent Subcommittee on Investiga- development of methane hydrate re- partment of Defense BRAC environ- tions sources. mental programs. To hold hearings to examine the safety SD–366 SD–138 of food imports. 9:30 a.m. SD–342 OCTOBER 6 Indian Affairs Small Business 9:30 a.m. To hold hearings on proposed legislation To hold hearings on the nomination of Veterans’ Affairs to revise the Indian Gaming Regu- Fred P. Hochberg, of New York, to be To hold joint hearings with the House latory Act of 1988, focusing on lands Deputy Administrator of the Small Committee on Veterans Affairs on the into trust for purposes of gaming. Business Administration. legislative recommendations of the Room to be announced SR–428A American Legion. 2:00 p.m. 1:30 p.m. 345 Cannon Building Foreign Relations Foreign Relations To hold hearings on S. 1868, to express Near Eastern and South Asian Affairs Sub- United States foreign policy with re- committee CANCELLATIONS spect to, and to strengthen United To hold hearings to examine United States advocacy on behalf of, individ- States policy toward Iran. uals persecuted for their faith world- SD–419 MAY 7 wide, to authorize United States ac- 2:00 p.m. 9:30 a.m. tions in response to religious persecu- Energy and Natural Resources Labor and Human Resources tion worldwide, to establish an Ambas- National Parks, Historic Preservation, and To hold hearings on organ allocation and sador at Large on International Reli- Recreation Subcommittee the Organ Procurement Transplant gious Freedom within the Department To hold hearings on titles IX and X of S. Network (OPTN) regulation. of State, a Commission on Inter- 1693, to renew, reform, reinvigorate, SD–430 Wednesday, May 6, 1998 Daily Digest

HIGHLIGHTS The House passed H.R. 6, Higher Education Amendments of 1998. House Committees ordered reported 18 sundry measures. Senate Dorgan/Reid Amendment No. 2344, to require a Chamber Action study to examine the transfer pricing enforcement ef- Routine Proceedings, pages S4379–S4450 forts of the Internal Revenue Service. Pages S4404±05 Measures Introduced: Four bills and three resolu- Graham Amendment No. 2347, to require 1 tions were introduced, as follows: S. 2036–2039, S. member of the Internal Revenue Service Oversight Con. Res. 94, and S. Res. 223–224. Page S4435 Board to be a representative of small business. Measures Reported: Reports were made as follows: Pages S4406±07 Kerrey (for Kohl/Feingold) Amendment No. S. 2037, to amend title 17, United States Code, 2357, to provide for an independent review of the to implement the WIPO Copyright Treaty and the investigation of the equal employment opportunity WIPO Performances and Phonograms Treaty, to pro- process of the Internal Revenue Service offices lo- vide limitations on copyright liability relating to cated in the area of Milwaukee and Waukesha, Wis- material online, and for other purposes. Page S4435 consin. Pages S4427±28 Measures Passed: Ashcroft/Leahy Amendment No. 2348, to strike International Exchange of Advanced Tech- the presumption that electronic verifications are nologies: Senate agreed to S. Res. 224, expressing treated as actually submitted and subscribed by a the sense of the Senate regarding an international person. Pages S4429±32 project to evaluate and facilitate the exchange of ad- Rejected: vanced technologies. Pages S4449±50 Kerrey Modified Amendment No. 2340, to ensure IRS Reform: Senate continued consideration of compliance with Federal budget requirements. H.R. 2676, to amend the Internal Revenue Code of Pages S4380, S4383±92 1986 to restructure and reform the Internal Revenue By 25 yeas to 74 nays (Vote No. 121), Bond Service, with a committee amendment in the nature Amendment No. 2341, to establish a full-time of a substitute, taking action on amendments pro- Board of Governors for the Internal Revenue Service. Pages S4394±97, S4402 posed thereto, as follows: Pages S4379±S4409, S4413±32 Adopted: Pending: By 56 yeas to 42 nays (Vote No. 120), Roth Thompson/Sessions Amendment No. 2356, to Amendment No. 2339, to ensure compliance with strike the exemptions from criminal conflict laws for Federal budget requirements. board member from employee organization. Pages S4415±27 Pages S4380±83, S4390, S4392 Reid Modified Amendment No. 2342, to require A unanimous-consent agreement was reached pro- a study of the provisions of section 7623 of the In- viding for further consideration of the bill and cer- ternal Revenue code to provide payments for detec- tain amendments to be proposed thereto. Page S4413 A further consent agreement was reached provid- tion of underpayments and fraud. Pages S4397±S4402 Kerrey (for Leahy/Ashcroft) Amendment No. ing that following passage of the bill, the Senate in- 2343, to provide electronic access to Internal Reve- sist on its amendments, request a conference with nue Service information on the Internet. the House thereon, and the Chair be authorized to appoint conferees on the part of the Senate. Pages S4401, S4428±29 Page S4413 D463 D464 CONGRESSIONAL RECORD — DAILY DIGEST May 6, 1998 Senate will continue consideration of the bill on year 1999 for the Department of Defense, focusing Thursday, May 7, 1998. on the United States Pacific Command, receiving Appointment: testimony from Adm. Joseph W. Prueher, U.S. Navy, Commander in Chief, United States Pacific Canada-U.S. Interparliamentary Group: The Command. Chair, on behalf of the Vice President, pursuant to Subcommittee will meet again on Monday, May 22 U.S.C. 276d–276g, as amended, appointed the 11. following Senators as members of the Senate Delega- tion to the Canada-U.S. Interparliamentary Group AUTHORIZATION—DEFENSE during the Second Session of the 105th Congress, to Committee on Armed Services: Committee met in closed be held in Nantucket, Massachusetts, May 14–18, session to begin markup of proposed legislation to 1998: Senators Grassley and Grams. Page S4450 authorize funds for fiscal year 1999 for military ac- Messages From the President: Senate received the tivities of the Department of Defense, and to pre- following messages from the President of the United scribe military personal strengths for fiscal year States: 1999, and related proposals, but did not complete Transmitting the report concerning the proposed action thereon, and will meet again tomorrow. agreement for Cooperation Between the United COMMON CARRIER BUREAU States of America and Ukraine for Cooperation Con- Committee on Commerce, Science, and Transportation: Sub- cerning Peaceful Uses of Nuclear Energy; to the committee on Communications concluded oversight Committee on Foreign Relations. (PM–122). hearings to examine the activities of the Common Pages S4433±34 Carrier Bureau of the Federal Communications Com- Nominations Received: Senate received the follow- mission, focusing on its implementation of the Tele- ing nominations: communications Act of 1996, after receiving testi- L. Britt Snider, of Virginia, to be Inspector Gen- mony from A. Richard Metzger, Jr., Chief, Common eral, Central Intelligence Agency. Carrier Bureau, Federal Communications Commis- 28 Army nominations in the rank of general. sion; Ronald J. Binz, Competition Policy Institute, 1 Navy nomination in the rank of admiral. Denver, Colorado; and Earl W. Comstock, Sher & Page S4450 Blackwell, Albert Halprin, Halprin, Temple, Good- Messages From the President: Pages S4433±34 man & Sugrue, and Peter W. Huber, Kellogg, Huber, Hansen, Todd & Evans, on behalf of the Messages From the House: Page S4434 Manhattan Institute for Policy Research, all of Measures Referred: Page S4434 Washington, D.C. Communications: Pages S4434±35 NEVADA PUBLIC LANDS MANAGEMENT Statements on Introduced Bills: Pages S4435±41 Committee on Energy and Natural Resources: Sub- Additional Cosponsors: Pages S4441±42 committee on Forests and Public Land Management concluded hearings on S. 94 and H.R. 449, bills to Amendments Submitted: Pages S4443±48 provide for the orderly disposal of certain Federal Authority for Committees: Page S4448 lands in Clark County, Nevada, and to provide for Additional Statements: Pages S4448±49 the acquisition of environmentally sensitive lands in Record Votes: Two record votes were taken today. the State of Nevada, after receiving testimony from Senators Reid and Bryan; Representatives Ensign and (Total—121) Pages S4392, S4402 Gibbons; Tom Fry, Deputy Director, Bureau of Land Adjournment: Senate convened at 9:30 a.m., and Management, Department of the Interior; Mayor Mi- adjourned at 6:21 p.m., until 9:30 a.m., on Thurs- chael L. Montandon, North Las Vegas, Nevada; and day, May 7, 1998. (For Senate’s program, see the re- Lance Malone and Mary Kincaid, both of the Clark marks of the Acting Majority Leader in today’s County Board of Commissioners, and Rosemary Record on page S4450.) Vassiliadis, Clark County Department of Aviation, all of Las Vegas, Nevada. Committee Meetings KOSOVO (Committees not listed did not meet) Committee on Foreign Relations: Subcommittee on Eu- ropean Affairs held hearings to examine the status of APPROPRIATIONS—DEFENSE human rights violations and United States foreign Committee on Appropriations: Subcommittee on Defense policy in Kosovo, receiving testimony from Robert held hearings on proposed budget estimates for fiscal S. Gelbard, Special Representative of the President May 6, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D465 and the Secretary of State for Implementation of the Weinblatt and Gaylord, St. Paul, Minnesota; and Dayton Peace Accords; and John Fox, Open Society Bernard J. Gamache, Wapato, Washington. Institute, James R. Hooper, Balkan Institute, and Joseph J. DioGuardi, Albanian American Civic AUTHORIZATION—INTELLIGENCE League, all of Washington, D.C. Select Committee on Intelligence: Committee met in Hearings were recessed subject to call. closed session to begin markup of proposed legisla- tion authorizing funds for fiscal year 1999 for intel- TRIBAL SOVEREIGN IMMUNITY ligence and intelligence related activities of the Committee on Indian Affairs: Committee concluded United States Government, but did not complete ac- hearings on S. 1691, to provide for Indian legal re- tion thereon, and recessed subject to call. form, focusing on the status of tribal sovereign im- munity and the role it plays to preserve the Federal MEDICARE Government’s protection of tribal self-government, Special Committee on Aging: Committee concluded and its impact on Indian economic development, hearings to examine the status of the Health Care commercial dealings, and taxation, after receiving Financing Administration’s development of its infor- testimony from Thomas L. LeClaire, Director, Office mation campaign, and recommendations on ways to of Tribal Justice, Department of Justice; Dale Webb, help beneficiaries make informed choices among Mescalero Apache Tribe, Mescalero, New Mexico; Medicare health plans and other related resources, Pedro Johnson and Jackson King, both of the after receiving testimony from Michael Hash, Dep- Mashantucket Pequot Tribe, Mashantucket, Con- uty Administrator, Health Care Financing Adminis- necticut; Wendell Askenette, Menominee Indian tration, Department of Health and Human Services; Tribe of Wisconsin, Keshena; Milton Bluehouse, Sr., William J. Scanlon, Director, Health Financing and and Britt E. Clapham, II, both of the Navajo Na- Systems Issues, Health, Education, and Human Serv- tion, Window Rock, Arizona; Eric D. Eberhard, ices Division, General Accounting Office; and Susan Dorsey and Whitney, Seattle, Washington; Dennis Kleimann, Kleimann Communications Group, Geral- A. Ferdon, Anderson and Ferdon, Norwich, Con- dine Dallek, Institute for Health Care Research and necticut; Richard A. Goren, Rubin, Hay and Gould, Policy/Georgetown University, and David S. Aber- Framingham, Massachusetts; Gregory A. Abbott, nathy, HIP Health Plans, all of Washington, D.C. h House of Representatives Torch Run to be run through the Capitol Grounds, Chamber Action amended (H. Rept. 105–512); Bills Introduced: 7 public bills, H.R. 3798–3804; H. Con. Res. 265, authorizing the use of the East and 2 resolutions, H. Con. Res. 272 and H. Res. Front of the Capitol Grounds for performances spon- 421, were introduced. Pages H2930±31 sored by the John F. Kennedy Center for the Per- Reports Filed: Reports were filed as follows: forming Arts. (H. Rept. 105–513); and H.R. 2217, to extend the deadline under the Fed- H. Con. Res. 263, authorizing the use of the Cap- eral Power Act applicable to the construction of itol Grounds for the seventeenth annual National FERC Project Number 9248 in the State of Colo- Peace Officers’ Memorial Service, amended (H. Rept. rado (H. Rept. 105–509); 105–514). Page H2930 H.R. 2841, to extend the time required for the Guest Chaplain: The prayer was offered by the construction of a hydroelectric project (H. Rept. guest Chaplain, the Rev. Dr. George Docherty of Al- 105–510); H. Res. 420, providing for consideration of H.R. exandria, Pennsylvania. Page H2819 3694, authorize appropriations for fiscal year 1999 BESTEA Conference Appointments: As additional for intelligence and intelligence-related activities of conferees on H.R. 2400, from the Committee on the United States Government, the Community Ways and Means for consideration of title XI of the Management Account, and the Central Intelligence House bill and title VI of the Senate amendment Agency Retirement and Disability System (H. Rept. and modifications committed to conference: Rep- 105–511); resentatives Nussle, Hulshof, and Rangel. From the H. Con. Res. 262, authorizing the 1998 District Committee on the Budget for consideration of title of Columbia Special Olympics Law Enforcement VII and title X of the House bill and modifications D466 CONGRESSIONAL RECORD — DAILY DIGEST May 6, 1998 committed to conference: Representatives Parker, tion options to assist individuals who have substan- Radanovich, and Spratt. Pages H2820±21, H2823, H2921 tial student loan debt, other than direct student Communications Satellite Competition and Pri- loans and federally guaranteed loans; Pages H2865±66 vatization Act: The House passed H.R. 1972, to The Foley amendment that allows access and dis- amend the Communications Satellite Act of 1962 to closure of disciplinary records which identify a stu- promote competition and privatization in satellite dent or students who have committed a crime of vi- communications by a recorded vote of 403 ayes to olence; Pages H2868±70 16 noes with 2 voting ‘‘present’’, Roll No. 129. The Kennedy of Massachusetts amendment that Pages H2824±59 expresses the sense of the House that college and Agreed To: university administrators should adopt a code of The Traficant amendment, as modified, that speci- principles in an effort to reduce alcohol related prob- fies that annual reports to the Congress include the lems and change the culture of alcohol consumption impact that privatization has had on U.S. industry, on college campuses; Page H2871 jobs, and industry access to the global marketplace; The Livingston amendment that expresses the and Pages H2849±50 sense of the House that no student attending an in- The Gilman amendment that specifies that the re- stitution of higher education shall be denied the porting and consultation provisions of the bill shall rights of protected speech and association or other- also include the House Committee on International wise sanctioned for programs or activities that are Relations and Senate Committee on Foreign Rela- not sponsored by the institution; Pages H2871±72 tions. Page H2850 The Kennedy of Massachusetts amendment that Rejected: establishes a drug and alcohol abuse prevention grant The Morella amendment that sought to specify and recognition award program; Pages H2872±73 that the FCC shall not restrict the activities of COMSAT in a manner which would create a liability The Meek of Florida amendment, as modified, under the Fifth Amendment to the Constitution re- that establishes five demonstration projects to enable lating to the takings of private property (rejected by individuals with learning disabilities to fully partici- a recorded vote of 111 ayes to 304 noes with 2 vot- pate in postsecondary education; Pages H2873±75 ing ‘‘present’’, Roll No. 127); and Pages H2840±49 The Jackson-Lee amendment, as modified, that ex- The Tauzin amendment that sought to strike sec- presses the sense of the House that colleges and uni- tion 642, Termination of Monopoly Status, that per- versities shall establish policies for identifying stu- mits users or providers of telecommunications serv- dents with learning disabilities, specifically dyslexia ices to renegotiate contracts or commitments on in postsecondary education; Pages H2887±89 rates, terms, and conditions with COMSAT (rejected The Roemer amendment that deletes the require- by a recorded vote of 80 ayes to 339 noes with 2 ment for colleges and universities to report reduc- voting ‘‘present’’, Roll No. 128). Pages H2850±59 tions in the funding and number of athletes per- Agreed to H. Res. 419, the rule that provided for mitted to participate in any collegiate sport and the consideration of the bill by voice vote. reasons for the decreases (agreed to by a recorded Pages H2823±24 vote of 292 ayes to 129 noes, Roll No. 130); Presidential Message—Ukraine: Read a message Pages H2875±85, H2890±91 from the President wherein he transmitted his pro- The Miller of California amendment that expresses posed agreement between the United States and the sense of Congress that colleges and universities Ukraine concerning the peaceful uses of nuclear en- adopt merchandise licensing codes of conduct to as- ergy—referred to the Committee on International sure that licensed merchandise is not made by sweat- Relations and ordered printed (H. Doc. 105–248). shop and exploited adult or child labor either do- Page H2860 mestically or abroad (agreed to by a recorded vote of Higher Education Amendments of 1998: The 393 ayes to 28 noes, Roll No. 131); and House passed H.R. 6 to extend the authorization of Pages H2861±65, H2891 programs under the Higher Education Act of 1965 The Stupak amendment that reauthorizes the by a yea and nay vote of 414 yeas to 4 nays, Roll Olympic Scholarships program (agreed to by a re- No. 135. The House completed general debate and corded vote of 219 ayes to 200 noes, Roll No. 132). considered amendments to the bill on April 29 and Pages H2866±67, H2891±92 May 5. Pages H2860±H2920 Rejected: Agreed To: The Riggs amendment that sought to prohibit The Skaggs amendment that requires a report to discrimination and preferential treatment to any per- Congress on the feasibility of student loan consolida- son or group based in whole or in part on race, sex, May 6, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D467 color, ethnicity, or national origin (rejected by a re- Atmospheric Programs, EPA; Rafe Pomerance, Dep- corded vote of 171 ayes to 249 noes, Roll No. 133); uty Assistant Secretary, Environment and Develop- and Pages H2892±H2914 ment, Department of State; John Jenkins, M.D., Di- The Campbell amendment that sought to pro- rector, Division of Pulmonary Drug Products, FDA, scribe that no individual shall be excluded from any Department of Health and Human Services; and program on the basis of race or religion (rejected by public witnesses. a recorded vote of 189 ayes to 227 noes, Roll No. 134). Pages H2915±17 LATIN AMERICA AND THE CARIBBEAN Withdrawn: Committee on International Relations: Subcommittee on The Millender-McDonald amendment was offered, the Western Hemisphere held a hearing on Latin but subsequently withdrawn, that sought to establish America and the Caribbean: An Update and Sum- the Teacher Excellence in America Challenge grant mary of the Summit of the Americas. Testimony was program; and Pages H2885±87 heard from Peter F. Romero, Principal Deputy As- The Hall of Texas amendment was offered, but sistant Secretary, Inter-American Affairs, Department subsequently withdrawn, that sought to prohibit the of State; and Mark Schneider, Assistant Adminis- Secretary of Education from considering audit defi- trator, Latin America, AID, U.S. International De- ciencies with respect to financial aid record keeping velopment Cooperation Agency. at Texas College, located in Tyler, Texas. Pages H2889±90 MISCELLANEOUS MEASURES The Clerk was authorized to make technical cor- Committee on the Judiciary: Ordered reported amended rections and conforming changes in the engrossment the following bills: H.R. 2431, Freedom From Reli- of the bill to reflect the actions of the House. gious Persecution Act of 1997; H.R. 3494, Child Page H2920 Protection and Sexual Predator Punishment Act of Senate Messages: Message received today from the 1998; H.R. 3723, United States Patent and Trade- Senate appears on page H2819. mark Office Reauthorization Act, Fiscal Year 1999; and H.R. 1690, to amend title 28 of the United Amendments: Amendments ordered printed pursu- States Code regarding enforcement of child custody ant to the rule appear on page H2932. orders. Quorum Calls—Votes: One yea and nay vote and The Committee failed to approve H.R. 3168, Cit- seven recorded votes developed during the proceed- izen Protection Act of 1998. ings of the House today and appear on pages H2848–49, H2858–59, H2859, H2890–91, H2891, NATIONAL DEFENSE AUTHORIZATION H2891–92, H2914, and H2917. There were no ACT quorum calls. Committee on National Security: Met in executive ses- Adjournment: Met at 10:00 a.m. and adjourned at sion and ordered reported amended, H.R. 3616, Na- 11:55 p.m. tional Defense Authorization Act for Fiscal Year 1999. Committee Meetings INTELLIGENCE AUTHORIZATION ACT LABOR-HHS-EDUCATION Committee on Rules: Granted, by voice vote, a modi- APPROPRIATIONS fied open rule providing 1 hour of debate on H.R. Committee on Appropriations: Subcommittee on Labor, 3694, Intelligence Authorization Act for Fiscal Year Health and Human Services, and Education held a 1999. The rule waives points of order against consid- hearing on the National Labor Relations Board. Tes- eration of the bill for failure to comply with clause timony was heard from William B. Gould, IV, 2(l)(6) of rule XI (requiring a 3-day layover of the Chairman, NLRB. committee report). The rule makes in order as an original bill for the purpose of amendment the com- CHLOROFLUOROCARBON-BASED mittee amendment in the nature of a substitute now METERED-DOSE INHALERS PHASEOUT printed in the bill, modified by striking section 401. EFFORTS The rule provides that the amendment in the nature Committee on Commerce: Subcommittee on Health and of a substitute shall be considered by title and that Environment held a hearing on Regulatory Efforts to each title shall be considered as read. Phaseout Chlorofluorocarbon-Based Metered-Dose In- The rule waives points of order against the com- halers. Testimony was heard from Representatives mittee amendment for failure to comply with clause Smith of New Jersey, Kennedy of Rhode Island, 7 of rule XVI (prohibiting nongermane amend- Foley and Minge; Paul Stolpman, Director, Office of ments) or clause 5(b) of rule XXI (prohibiting tax D468 CONGRESSIONAL RECORD — DAILY DIGEST May 6, 1998 or tariff provisions in a bill not reported by a com- Con. Res. 263, amended, authorizing the use of the mittee with jurisdiction over revenue measures). The Capitol Grounds for the seventeenth annual National rule provides for consideration of only those amend- Peace Officers’ Memorial Service. ments that have been pre-printed in the Congres- The Committee also approved 7 Corps of Engi- sional Record, and that those amendments shall be neers Survey Resolutions. considered as read. The rule permits the chairman of the Committee of the Whole to postpone votes on SURFACE TRANSPORTATION BOARD any amendment and reduce voting time to five min- Committee on Transportation and Infrastructure: Sub- utes on any series of questions, provided that the committee on Railroads held a hearing on Surface first vote shall not be less than 15 minutes. Finally, Transportation Board Reauthorization: Inter-carrier the rule provides one motion to recommit, with or Transactions, Construction and Abandonments. Tes- without instructions. Testimony was heard from timony was heard from Representatives Barr of Chairman Goss and Representative Dicks. Georgia, Kucinich and Shays; Linda J. Morgan, MANDATES INFORMATION ACT Chairwoman, Surface Transportation Board, Depart- Committee on Rules: Ordered reported amended H.R. ment of Transportation; John F. Guinan, Director, 3534, Mandates Information Act of 1998. Freight and Passenger Rail, Department of Transpor- tation, State of New York; John J. Haley, Jr., Com- OVERSIGHT—INTERNATIONAL SPACE missioner, Department of Transportation, State of STATION New Jersey; and public witnesses. Committee on Science: Held an oversight hearing on the International Space Station: Problems and Options. MISCELLANEOUS MEASURES Testimony was heard from the following officials of Committee on Ways and Means: Ordered reported NASA: Jay Chabrow, Chairman, Cost Assessment amended the following bills: H.R. 3433, Ticket to and Validation Task Force, member, Advisory Coun- Work and Self-Sufficiency Act of 1998; and H.R. cil; and Dan Goldin, Administrator; and Duncan 2431, Freedom From Religious Persecution Act of Moore, Associate Director, Technology, Office of 1998. Science and Technology Policy. MISCELLANEOUS MEASURES; RESOLUTIONS Joint Meetings Committee on Transportation and Infrastructure: Ordered reported the following measures: H.R. 2730, to des- ISTEA ignate the Federal building located at 309 North Conferees met to continue to resolve the differences Church Street in Dyersburg, Tennessee, as the ‘‘Jere between the Senate-and House-passed versions of Cooper Federal Building;’’ H.R. 2225, to designate H.R. 2400, to authorize funds for Federal-aid high- the Federal building and United States courthouse to ways, highway safety programs, and transit pro- be constructed on Las Vegas Boulevard between grams, but did not complete action thereon, and re- Bridger Avenue and Clark Avenue in Las Vegas, cessed subject to call. NV, as the ‘‘Lloyd D. George Federal Building and f United States Courthouse;’’ H.R. 3453, to designate the Federal Building and Post Office located at 100 COMMITTEE MEETINGS FOR THURSDAY, East B Street, Casper, Wyoming, as the ‘‘Dick Che- MAY 7, 1998 ney Federal Building;’’ H.R. 3295, to designate the (Committee meetings are open unless otherwise indicated) Federal building located at 1301 Clay Street in Oak- land, California, as the ‘‘Ronald V. Dellums Federal Senate Building;’’ H.R. 3504, amended, John F. Kennedy Committee on Agriculture, Nutrition, and Forestry, to hold Center for the Performing Arts Authorization Act; hearings to examine agricultural trade policies, 9 a.m., H.R. 3035, amended, National Drought Policy Act SR–332. of 1998; H. Con. Res. 255, amended, authorizing Committee on Appropriations, Subcommittee on VA, the use of the Capitol grounds for the Greater HUD, and Independent Agencies, to hold hearings on Washington Soap Box Derby; H. Con. Res. 265, au- proposed budget estimates for fiscal year 1999 for the National Science Foundation, Office of Science and Tech- thorizing the use of the East Front of the Capitol nology Policy, and the National Science Board, 9:30 a.m., Grounds for performances sponsored by the John F. SD–138. Kennedy Center for the Performing Arts; H. Con. Subcommittee on Treasury, Postal Service, and General Res. 262, amended, authorizing the 1998 District of Government, to hold hearings on proposed budget esti- Columbia Special Olympics Law Enforcement Torch mates for fiscal year 1999 for the Executive Office of the Run to be run through the Capitol Grounds; and H. President, 9:30 a.m., SD–192. May 6, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D469

Committee on Armed Services, closed business meeting, to for Japan to more effectively address its economic and fi- continue to mark up a proposed National Defense Au- nancial problems and open its markets by eliminating in- thorization Act for Fiscal Year 1999, 10 a.m., SR–222. formal barriers to trade and investment, thereby making Committee on Banking, Housing, and Urban Affairs, Sub- a more effective contribution to leading the Asian region committee on Housing Opportunity and Community De- out of its current financial crisis, insuring against a global velopment, to hold hearings to examine issues relating to recession, and reinforcing regional stability and security; the implementation of the Department of Housing and and H. Res. 404, commemorating 100 years of relations Urban Development’s ‘‘HUD 2020’’ Management Reform between the people of the United States and the people Plan, 10 a.m., SD–538. of the Philippines, 1:30 p.m., and to hold a hearing on Committee on Commerce, Science, and Transportation, Sub- Tradition and Transformation: U.S. Security Interests in committee on Aviation, to hold hearings on S. 1089, to Asia, 2 p.m., 2172 Rayburn. terminate the effectiveness of certain amendments to the Subcommittee on International Operations and Human foreign repair station rules of the Federal Aviation Ad- Rights, hearing on Human Rights in Indonesia, 12:30 ministration, focusing on a recent GAO report regarding p.m., 2220 Rayburn. aviation repair stations, 2:15 p.m., SR–253. Committee on the Judiciary, Subcommittee on Commer- Committee on Energy and Natural Resources, Subcommittee cial and Administrative Law, oversight hearing on Ad- on National Parks, Historic Preservation, and Recreation, ministrative Crimes and Quasi-Crimes, 10 a.m., 2141 to hold hearings on titles VI, VII, VIII, and XI of S. Rayburn. 1693, to renew, reform, reinvigorate, and protect the Na- Subcommittee on Crime, to mark up the following tional Park System, 2 p.m., SD–366. bills: H.R. 3633, Controlled Substances Trafficking Pro- Committee on Foreign Relations, to hold hearings on the hibition Act; H.R. 3745, Money Laundering Act of nominations of William Joseph Burns, of Pennsylvania, to 1998; H.R. 2070, Correction Officers Health and Safety be Ambassador to the Hashemite Kingdom of Jordan, Act of 1997; H.R. 2829, Bulletproof Vests Partnership and Ryan Clark Crocker, of Washington, to be Ambas- Grant Act of 1997; and S. 170, Clone Pager Authoriza- sador to the Syrian Arab Republic, 10 a.m., SD–419. tion Act, 9:30 a.m., 2237 Rayburn. Subcommittee on International Economic Policy, Ex- Committee on Resources, Subcommittee on Fisheries Con- port and Trade Promotion, to hold oversight hearings to servation, Wildlife and Oceans, hearing on H.R. 3498, examine activities of the Overseas Private Investment Dungeness Crab Conservation and Management Act, 11 Corporation, 2:30 p.m., SD–419. a.m., 1334 Longworth. Committee on the Judiciary, business meeting, to consider Subcommittee on Forests and Forest Health, to mark pending calendar business, 10 a.m., SD–226. up the following bills: H.R. 1865, Spanish Peaks Wilder- Committee on Labor and Human Resources, to hold hear- ness Act of 1997; H.R. 3186, Rogue River National For- ings to examine proposals for providing more qualified est Interchange Act of 1998; H.R. 3520, to adjust the teachers in the American classroom, 10 a.m., SD–430. boundaries of the Lake Chelan National Recreation Area NOTICE and the adjacent Wenatchee National Forest in the State For a listing of Senate committee meetings sched- of Washington; and H.R. 3796, to authorize the Sec- uled ahead, see page E783 in today’s Record. retary of Agriculture to convey the administration for the Rogue River National Forest and use the proceeds for the House construction or improvement of offices and support build- Committee on Agriculture, hearing to review the Fiscal ings for the Rogue River National Forest and the Bureau Year 1999 Administration’s Budget for the Forest Serv- of Land Management, 11 a.m., 1324 Longworth. ice, USDA, 10 a.m., 1300 Longworth. Subcommittee on National Parks and Public Lands, to Committee on Commerce, Subcommittee on Telecommuni- mark up the following bills: H.R. 2538, Guadalupe-Hi- cations, Trade, and Consumer Protection, hearing on dalgo Treaty Land Claims Act of 1997; H.R. 3055, to Electronic Commerce: Building Tomorrow’s Information deem the activities of the Miccosukee Tribe on the Infrastructure, 2 p.m., 2123 Rayburn. Tamiami Indian Reservation to be consistent with the Committee on Education and the Workforce, Subcommittee purposes of the Everglades National Park; and H.R. on Early Childhood, Youth, and Families, hearing on 3625, San Rafael Swell National Heritage and Conserva- H.R. 3189, Parental Freedom of Information Act, 10 tion Act, 2 p.m., 1324 Longworth. a.m., 2175 Rayburn. Committee on Rules, to consider H.R. 10, Financial Serv- Committee on Government Reform and Oversight, Sub- ices Competition Act, 12 p.m., H–313 Capitol. committee on Human Resources, hearing on Immune Committee on Science, Subcommittee on Technology, Globulin Shortages: Causes and Cures, 9:30 a.m., 2154 hearing on the Aviation Manufacturing and the Fastener Rayburn. Quality Act, 10 a.m., 2318 Rayburn. Committee on International Relations, hearing on issues in Committee on Transportation and Infrastructure, Sub- U.S.-European Union Trade European Privacy legislation committee on Water Resources and Environment, hearing and Biotechnology/Food Safety Policy, 10 a.m., 2172 on the Mitigation and Cost Reduction Act of 1998, 10 Rayburn. a.m., 2167 Rayburn. Subcommittee on Africa, hearing on Africa in the Committee on Ways and Means, Subcommittee on Over- World Economy, 1 p.m., 2255 Rayburn. sight, hearing on the Year 2000 Computer Problem, 10 Subcommittee on Asia and the Pacific, to mark up the a.m., B–318 Rayburn. following resolutions: H. Res. 392, relating to the impor- Subcommittee on Trade, hearing on U.S. Economic tance of Japanese-American relations and the urgent need and Trade Policy Toward Cuba, 1 p.m., 1100 Longworth. D470 CONGRESSIONAL RECORD — DAILY DIGEST May 6, 1998

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Thursday, May 7 10 a.m., Thursday, May 7

Senate Chamber House Chamber Program for Thursday: Senate will continue consider- Program for Thursday: Motion to go to Conference on ation of H.R. 2676, IRS Reform. H.R. 2646, the Education and Savings Act for Public and Private Schools; and Consideration of H.R. 3694, Intelligence Authorization Act for FY 1999 (modified open rule, 1 hour of general debate);

Extensions of Remarks, as inserted in this issue

HOUSE Gilman, Benjamin A., N.Y., E773 Pitts, Joseph R., Pa., E776 Green, Gene, Tex., E780 Rahall, Nick J., II, West Va., E781 Armey, Richard K., Tex., E769 Hilliard, Earl F., Ala., E770 Rothman, Steve R., N.J., E769, E771 Barrett, Thomas M., Wisc., E781 Johnson, Eddie Bernice, Tex., E770 Stark, Fortney Pete, Calif., E779 Blagojevich, Rod R., Ill., E778 Kind, Ron, Wisc., E781 Tauscher, Ellen O., Calif., E776 Borski, Robert A., Pa., E780 Kucinich, Dennis J., Ohio, E773, E775, E777 Towns, Edolphus, N.Y., E777 Brown, Corrine, Fla., E777 McDermott, Jim, Wash., E779 Visclosky, Peter J., Ind., E769, E771 Brown, George E., Jr., Calif., E778 McHugh, John M., N.Y., E775 Walsh, James T., N.Y., E776 Dunn, Jennifer, Wash., E770 Markey, Edward J., Mass., E778 Weller, Jerry, Ill., E773 Fossella, Vito, N.Y., E780 Moakley, John Joseph, Mass., E778 Weygand, Robert A., R.I., E769, E770, E772 Frank, Barney, Mass., E772 Packard, Ron, Calif., E776 Yates, Sidney R., Ill., E774 Gejdenson, Sam, Conn., E770 Pallone, Frank, Jr., N.J., E780

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