E PL UR UM IB N U U S Congressional Record United States of America PROCEEDINGS AND DEBATES OF THE 107th CONGRESS, FIRST SESSION

Vol. 147 WASHINGTON, WEDNESDAY, MAY 2, 2001 No. 58 House of Representatives The House met at 9 a.m. Mr. MCNULTY. Mr. Speaker, pursu- As the Archbishop of Cleveland, His His Eminence Archbishop Michael J. ant to clause 1, rule I, I demand a vote Eminence helps to oversee administra- Champion, Coadjutor to the Primate, on agreeing to the Speaker’s approval tion of the Metropolia and is widely Archbishop of Cleveland, Ukrainian of the Journal. recognized in the Orthodox commu- Autocephalous Orthodox Church in the The SPEAKER. The question is on nity, both here in the United States U.S.A., offered the following prayer: the Chair’s approval of the Journal. and abroad, for the rapid growth of his O God, we acknowledge Your great- The question was taken; and the church. He is also one of the youngest ness and power over all things in the Speaker announced that the ayes ap- Archbishops in the country, a reflec- universe. We know that our lives, with peared to have it. tion of His Eminence’s vision, energy their accomplishments and goals, their Mr. MCNULTY. Mr. Speaker, I object and leadership skills. victories and advancements, are like to the vote on the ground that a He is a gifted writer and works close- grains of sand in the ocean compared quorum is not present and make the ly with His Beatitude, Metropolitan to Your all-knowing and wonderful point of order that a quorum is not Stephan, on several health care initia- goodness. Help us to see any progress present. tives for the indigent, both here and we make in this life to be truly a gift The SPEAKER. Evidently a quorum abroad. from You and a reflection of Your lov- is not present. At a time when the messages of reli- ing concern for all humanity. Pursuant to clause 8, rule XX, fur- gious tolerance and religious liberty Teach us to work for peace and jus- ther proceedings on this question will are more important than ever, we are tice and to remember that every good be postponed until later today. pleased to hear the words of a spiritual thing comes from You above, the God The point of no quorum is considered leader whose faith and church have of light. Give us sincere compassion for withdrawn. overcome great adversity in the 20th those who need our help the most and f Century to establish a foundation of make us always realize that pref- PLEDGE OF ALLEGIANCE strength today. erential love for the poor and The SPEAKER. Will the gentleman We welcome Archbishop Michael and marginalized, whom we are destined to wish him continued success. from New Hampshire (Mr. SUNUNU) serve, for when we speak on behalf of come forward and lead the House in the f those who have no voice and work for Pledge of Allegiance. RECESS the betterment of those who otherwise Mr. SUNUNU led the Pledge of Alle- could not help themselves, we are not giance as follows: The SPEAKER. Pursuant to the only doing Your work, but ministering order of the House of Tuesday, May 1, I pledge allegiance to the Flag of the to You in the least of our brothers or United States of America, and to the Repub- 2001, the House will stand in recess sub- sisters. lic for which it stands, one nation under God, ject to the call of the Chair, to receive Guide these women and men, O God, indivisible, with liberty and justice for all. the former Members of Congress. to always work for the type of justice f Accordingly (at 9 o’clock and 7 min- that reflects Your will and bless our utes a.m.), the House stood in recess Nation along the path of peace. Since WELCOMING HIS EMINENCE ARCH- subject to the call of the Chair. BISHOP MICHAEL J. CHAMPION, You, O God, know the name and need f of each person, even from their birth ARCHBISHOP OF CLEVELAND, RECEPTION OF FORMER MEMBERS into this world, grant all people of our COADJUTOR TO THE PRIMATE, OF CONGRESS country the good things for which they UKRAINIAN AUTOCEPHALOUS ask, and lead us all with Your wisdom ORTHODOX CHURCH IN THE The SPEAKER of the House presided. and mercy. Amen. U.S.A. The SPEAKER. I would like to take f (Mr. SUNUNU asked and was given this opportunity to welcome everyone permission to address the House for 1 here this morning. On behalf of the THE JOURNAL minute and to revise and extend his re- House of Representatives, I am happy The SPEAKER. The Chair has exam- marks.) to welcome to this Chamber very good ined the Journal of the last day’s pro- Mr. SUNUNU. Mr. Speaker, it is my friends of this institution, former ceedings and announces to the House pleasure to rise today and recognize Members of Congress. You are not only his approval thereof. our guest Chaplain, His Eminence friends of this institution, you are also Pursuant to clause 1, rule I, the Jour- Archbishop Michael of the Ukrainian friends of ours, and for many of us, and nal stands approved. Autocephalous Orthodox Church. for many of you, we stand on your

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

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VerDate 02-MAY-2001 00:33 May 03, 2001 Jkt 089060 PO 00000 Frm 00001 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.000 pfrm02 PsN: H02PT1 H1736 CONGRESSIONAL RECORD — HOUSE May 2, 2001 shoulders. The things that you have ac- I see so many members of the New Lloyd Meeds, Washington complished, the works that you have York family, Matt McHugh and Bobby Robert H. Michel, Illinois done, we are able to carry on. We are Garcia and Norm Lent and Jerry Sol- Clarence E. Miller, Ohio able to carry it on in the way that we omon and Dave Martin, and New York, G.V. ‘‘Sonny’’ Montgomery, Mis- have been able to because of your great I am happy to say, is very, very well sissippi works that have gone before us. represented here today. John Myers, Indiana Every one of the Members here has So, on behalf of DICK and DAVE Richard D. ‘‘Dick’’ Nichols, Kansas spent precious years of their life in this BONIOR and all of the members of the Ed Pease, Indiana chamber. Some of the best years of Democratic Party, I join with Speaker Howard W. Pollock, Alaska, their lives were spent in this Chamber HASTERT and the Republican leadership Don Ritter, Pennsylvania working to represent the needs and the in welcoming all of you to this session Carlos Romero-Barcelo, Puerto Rico concerns of the American people. today, and to thank you for your out- George E. Sangmeister, Illinois Your commitment to your Nation did standing service to our country, and Bill Sarpalius, Texas not end when you left Congress. Many for reminding us of our great history Richard T. Schulze, Pennsylvania of you went on to do other things in and our heritage. Bud Shuster, Pennsylvania public service. Many of you excelled in Thank you very much. Carlton R. Sickles, Maryland the private sector. Many of you have Mr. LAROCCO. The Clerk will call Jerry Solomon, New York continued to serve our Nation in many the roll of the former Members of the Jim Symington, Missouri other honorable ways. House and the Senate who are present Steve Symms, Idaho Jack Kemp is one of those people. He today. Charles W. Whalen, Jr., Ohio is certainly an ideal and worthy choice The Clerk called the roll of the Harris Wofford, Pennsylvania to receive the Distinguished Service former Members of the Congress, and Howard A. Wolpe, Michigan Award that this body, your group, is the following former Members an- Joe Wyatt, Jr., Texas about to give. After 18 years in Con- swered to their names: b 0915 gress, Jack Kemp had still more to do, ROLLCALL OF FORMER MEMBERS OF CONGRESS Mr. LAROCCO. The Chair announces including his service as Secretary of ATTENDING 31ST ANNUAL SPRING MEETING, Housing and Urban Development; and MAY 2, 2001 that 53 former Members of Congress have responded to their names. we were all impressed, but not sur- THE UNITED STATES ASSOCIATION OF FORMER prised, when Jack was nominated for MEMBERS OF CONGRESS The Chair recognizes the distin- Vice President in 1996. Today, he has William V. (Bill) Alexander, Arkan- guished majority leader of the House, continued to work to advance the sas the gentleman from Texas (Mr. kinds of policies he cares about that Bill Barrett, Nebraska ARMEY), for the purpose of making empower America. He is truly dedi- J. Glenn Beall, Jr., Maryland some remarks to the association. cated to the betterment of our Nation, Tom Bevill, Alabama Mr. ARMEY. Well, good morning. I and I say to you, congratulations, Lindy Boggs, Louisiana look around the room, I think I know Jack. William Broomfield, Michigan most of you, and it is nice to see a lot Finally, I would like to take this op- Glen Browder, Alabama of your faces back. Sonny, we will portunity to thank all of the former Clarence ‘‘Bud’’ Brown, Ohio probably have a veterans bill on the Members. Thank you for being here James Broyhill, North Carolina floor later today by unanimous con- and for your continued effort, both John H. Buchanan, Jr., Alabama sent. home and abroad. Your outreach to Jack Buechner, Missouri It is so nice to see all my good college campuses throughout the coun- Beverly Byron, Maryland friends, Bob Michel, who is a bit of a try helps to strengthen the work of our Elford A. Cederberg, Michigan mentor and a somewhat frustrated dis- government and encourage public serv- Charles Chamberlain, Michigan ciplinarian in my case for a lot of ice. Your support to parliaments Norman E. D’Amours, New Hamp- years. I see Jerry. And, oh, look here. around the world is invaluable, and I shire Bill, how are you? A true mentor. I was want to thank you for those efforts. Joseph J. DioGuardi, New York thinking about this this morning as I At this time I would request that the John N. Erlenborn, Illinois was coming in here. Joe, how are you gentleman from Idaho, Mr. LaRocco, Lou Frey, Jr., Florida this morning? One of the things that Vice President of the Former Members Robert Garcia, New York has been a blessing in my life, and Association, take the Chair. John Paul Hammerschmidt, Arkan- some of you remember when I came Mr. LAROCCO (presiding). The Chair sas here. I was what was known as a bomb would recognize the gentleman from Robert W. Hanrahan, Illinois thrower. I still am, am I? New York, Mr. MCNULTY. Ralph R. Harding, Idaho You know, you come to this body, I Mr. MCNULTY. Thank you, Mr. Dennis M. Hertel, Michigan think, without any full appreciation of Speaker. On behalf of Minority Leader George Hochbruechner, New York what this institution is. Then yester- DICK GEPHARDT and all of the Members Ken Holland, South Carolina day I happened to be downtown; and as of our side of the aisle, we want to wel- Marjorie Holt, Maryland we were driving back toward the Cap- come all of the former Members of Con- William J. Hughes, New Jersey itol, I looked up and I saw the dome, gress to this session today. It is a great Robert Kastenmeier, Wisconsin and I had two or three of my young opportunity for us to reminisce. Jack Kemp, New York staffers, and I began to comment that I personally try never to miss this David S. King, Utah it is a big deal where we work and are particular event. I walked into the Herbert C. Klein, New Jersey we not privileged to be here. And I Chamber and one of the first people I Ernest Konnyu, California think that one of the things that we saw was one of my former leaders on Steven T. Kuykendall, California develop over here is a genuine love for the Committee on Armed Services, Peter N. Kyros, Maine this institution. Sonny Montgomery. Before I came into H. Martin Lancaster, North Carolina I am sure that some of you remem- the Chamber, I had breakfast with my Larry LaRocco, Idaho ber, frankly, my lack of understanding class president, Bill Sarpalius, of the Norman F. Lent, New York of that, appreciation for it and respect class of 1988. George Sangmeister, an- Tom Lewis, Florida for it, and thought, as a young new other member of our class, is over here. Jim Lloyd, California Member, that this guy will never come I saw my old buddies, Denny Hertel and Catherine Long, Louisiana to this point. Well, let me just say I be- Larry LaRocco. Last night at the re- Daniel E. Lungren, California lieve I have come to the point that you ception I had a chance to visit with Connie Mack, Florida have come to and that has brought you Ambassador Lindy Boggs and thank David O’B. Martin, New York back today. We love this House of Rep- her for her outstanding service to our Bob McEwen, Ohio resentatives. I consider it the most country, especially in her latest assign- Matthew F. McHugh, New York unique institution of democracy in the ment. C. Thomas McMillan, Maryland world. There is nothing really quite

VerDate 02-MAY-2001 23:37 May 02, 2001 Jkt 089060 PO 00000 Frm 00002 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.003 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1737 like it. And for you and me, we have DENNIS HASTERT, for taking time from The Congress to Campus is the major had, I think, an extraordinary privi- his busy schedule to greet us, and for program of our Association, in con- lege, a privilege that unfortunately we Representative MICHAEL MCNULTY for junction with the Stennis Center for do not always fully respect during the his warm welcome on behalf of the Public Service, as was just stated. We time we are here. Democratic leadership. send one Republican and one Demo- Let me first thank you for coming It is always a privilege to return to cratic for 21⁄2 days to various campuses. back here as you have done to pay re- this institution which we revere and I have been fortunate enough to go to spect to this institution and to honor where we shared so many memorable South Dakota, Mississippi, North Da- this institution; and let me ask you, as experiences. Service in the Congress is kota and Oklahoma with Rod Chandler you visit with some of us that are still both a joy and a heavy responsibility. from Washington State, George Wort- here, particularly some of us that are And whatever our party affiliation, we ley from New York, and John Erlen- new here that you may know, that have great admiration for those who born, just 2 weeks ago, to Minnesota. maybe replaced you, take the time, continue to serve the country in this What we do is talk with the students take a chance on us and give us a word place. We thank them all for once about what our government does and of encouragement to come and know again giving us this opportunity to re- how it works. We are not running from the love of this House. It is a special port on the activity of our association office or seeking anything. They real- place. We have been so privileged to of former Members of Congress. ize that we are going to give them serve here together. We have learned a This is our 31st annual report to Con- frank answers to their questions. We lot from one another, we have learned gress, and I ask unanimous consent, meet with assemblies, classrooms, that we can filter through this love of Mr. Speaker, that all Members be per- small groups and have lunch and din- the institution a respect for one an- mitted to revise and extend their re- ner with the students. My wife, Cindy, other and our differences. marks. and I have three students in college For me, of course, the unbelievable Mr. LAROCCO. Without objection, so now, one a first-year law student, and privilege of being the majority leader ordered. so you can see where our focus and fi- of the House, being trusted by my col- Mr. ERLENBORN. Our association is nances are. Sometimes my children leagues to schedule the House, this nonpartisan. It has been chartered, but ask, where are you going now and why prompted a discussion with former not funded, by the Congress. We have a are you going there. They wonder if I Speaker Jim Wright. Some of you may wide variety of domestic and inter- have any knowledge to tell these other recall that when Speaker Wright was national programs, which several other college students. here and we were in the minority he members and I will discuss briefly. The truth is, I learn from the stu- and I did not necessarily have the most Our membership numbers approxi- dents every time. The things that they cordial relationship. But Jim asked mately 600 former Members of the are talking about, the questions that me, he said, ‘‘Dick, is there anything House and the Senate, and our purpose they are debating, the questions that you have learned while being majority is to continue in some small measure they ask us provoke us to reflect on leader?’’ I said, ‘‘Yes, Jim, I learned I the service to this country that we what we have done and what Congress should have had more appreciation for began during our terms in the Senate is doing today. you when you had the job.’’ and the House of Representatives. Mainly, we let them see us as people So help us, if you will, to know what and tell them our history as to how we b 0930 you now know, that has brought you got involved and how we were elected back here today. This is a wonderful Our most significant domestic activ- to Congress and got involved in the po- institution. We are privileged to be ity is our Congress to Campus Pro- litical process. Our goal is to combat here. We ought to first manifest our gram. This is an effort, on a bipartisan that cynicism out there and to give love for this institution and through basis, to share with college students them an understanding what this Con- that perhaps gain some regard and re- throughout the country our insights on gress does, but mainly it is to let them spect, appreciation, patience, and good the work of the Congress and the polit- know that there are people from the humor between ourselves even in the ical process more generally. A team of Democratic and Republican parties heat of our debates. former members, one Republican, one that care, and to let them know that it Thank you for coming back. Thank Democrat, spend 21⁄2 days on college is their responsibility to get involved, every one of you so much for what you campuses throughout the United whether in the community or State, or did for me. I see so many people here States, meeting formally and infor- here in the Congress in the future. I am that helped me, encouraged me along mally with students and members of sure that we have talked to many fu- the way. Bob, if you think it is hope- the faculty and local communities. ture leaders, many future Congressmen less to try to discipline that ARMEY, This is a great experience for our mem- and Congresswomen. you have a soul mate, my wife has the bers. And I always emphasize that we are same feeling. So in the House or the I have made the trip five or six times not up to 51 percent of the population house in Texas, I am still incorrigible. myself. It has always been enjoyable. in the Congress reflecting the Mem- We will try to at least be good natured But our primary goal is to generate a bers, even though we have made great and well-mannered while being incor- deeper appreciation for our democratic strides in terms of the number of rigible. form of government and the need to women in the House and Senate. It is Thank you for letting me be here. participate actively. satisfying and electrifying when I talk Mr. LAROCCO. At this time the Chair Since the program’s inception in 1976, to the students, and I thank all former would recognize the gentleman from Il- 120 former Members of Congress have Members who have participated. linois, the Honorable John Erlenborn, reached more than 150,000 students Mr. ERLENBORN. One outgrowth of president of our association. through 273 visits to 186 campuses in 49 the Congress to Campus Program was Mr. ERLENBORN. Thank you, Mr. States and the District of Columbia. In an interest in producing a book that Speaker pro tempore. My colleagues, recent years, we have conducted the would take an inside look at the Con- members of the Former Members Asso- program jointly with the Stennis Cen- gress from different viewpoints. There ciation, and others who are here today ter for Public Service at Mississippi are many fine books written by indi- with us, first of all, let me say that State University. The former Members vidual Members of Congress, but to our right now represents for me a some- donate their time to this program. The knowledge there was no compendium what unique situation. After 20 years Stennis Center pays transportation that goes beyond or behind the scenes in Congress, this is the first time I costs, and the host institution provides in a very personal way. So a past presi- have spoken from the Democratic po- room and board. dent of the association, Lou Frey, re- dium, but I wanted to highlight our bi- At this point, I yield to Dennis cruited 34 members, a congressional partisan nature today. Hertel, the gentleman from Michigan, spouse, two former congressional staff Mr. Speaker, thanks to you and to all to discuss his participation in the Con- members, and a former member of the of you who have come here today. We gress to Campus Program. Canadian parliament to write chapters are especially grateful to the Speaker, Mr. HERTEL. Thank you, John. for a book on Congress. Lou and the

VerDate 02-MAY-2001 00:33 May 03, 2001 Jkt 089060 PO 00000 Frm 00003 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.007 pfrm02 PsN: H02PT1 H1738 CONGRESSIONAL RECORD — HOUSE May 2, 2001 head of the Political Science Depart- were entering the part that was on the Group on Germany, the largest and ment at Colgate University, Professor assassination of President Kennedy, most active exchange program between Michael Hayes, co-edited the book, In- and to hear them reminisce of when the U.S. Congress and the parliament side the House: Former Members Re- they were in the motorcade and what of another country. Founded in 1987 in veal How Congress Really Works, they remembered happened at that the House and in 1988 in the Senate, it which was published in March of this event was extremely educational to me is a bipartisan group involving 170 Rep- year. The book has been very well re- personally. resentatives and Senators. They are af- ceived and already is in its second The next day the delegation had a forded the opportunity to meet with printing. We hope that you and others private tour of the Nimitz-Bush Pacific their counterparts in the German Bun- will find it interesting and inform- War Museum, and then toured the LBJ destag to enhance understanding and ative. Lou Frey will tell you more ranch, and then finished up with dinner greater cooperation. about the book a bit later. in the Lieutenant Governor’s Room at Ongoing study group activities in- Mr. Speaker, as you know, although the State capitol. clude conducting a Distinguished Visi- many of our former Members live in I might add, in closing, that one of tors Program at the U.S. Capitol for the Washington area, there are quite a the things that I hope we all will recall guests from Germany; sponsoring an- few who reside in other parts of the is that the good Lord has given many, nual seminars involving Members of country. Therefore, in an effort to many people the breath of life, and he Congress and the Bundestag; providing broaden participation in the Associa- never created anybody identically the information about participants in the tion, we have held some meetings out- same; we were all created different. Congress-Bundestag Youth Exchange side of Washington. In recent years, we But there is one thing that all of us in Program to appropriate Members of have held a regional meeting in Cali- this Chamber have in common, and Congress; and arranging for members fornia each fall. In October of last year, that is we were Members of the most of the Bundestag to visit congressional we switched the venue to Texas and powerful governmental body in the districts with Members of Congress. held the meeting in Austin. Our former world. New activities are being explored to We were given that blessing by our colleagues, Jake Pickle, Jack High- enhance these opportunities. The Con- constituents, and we were there to try tower, Kent Hance, Joe Wyatt and Bill gressional Study Group on Germany is to help the future, but we are cheating Patman planned an interesting sched- funded primarily by the German Mar- the future if we do not take those expe- ule that included visits to the LBJ Li- shall Fund of the United States. Addi- riences that we gained and share it brary and ranch, tours of the State tional funding to assist with adminis- with future generations, like the op- capitol building and the governor’s portunities that we had to participate trative expenses has also been received mansion, and meetings with students in speaking to those classes at the LBJ this year from eight corporations: at the University of Texas. Library in Austin, Texas. It was a won- BASF, Celanese, DaimlerChrysler, I would like to yield to Bill derful trip. Deutsche Telekom, J.P. Morgan Chase, Sarpalius, the gentleman from Texas, Mr. ERLENBORN. On December 5, S.A.P., Siemens, and Volkswagen, to provide more details about the 2000, the Association once again spon- whose representatives now serve on a meeting. sored a ‘‘Life After Congress’’ seminar, Business Advisory Council to the study Mr. SARPALIUS. Mr. Speaker, the a program we have traditionally orga- group, which is chaired by our former trip that we had occurred from October nized for the benefit of Members leav- colleague, former Member Tom Cole- 21 through October 25. As the chairman ing Congress. During the seminar, man, who served as the chairman of mentioned, the trip began with a trip former Members Larry LaRocco, Jack the study group in the House in 1989. to San Antonio, where we took a ride Buechner, Martin Lancaster, Henson I now would like to yield to the gen- down the River Walk and toured one of Moore, Fred Grandy and I shared our tleman from Missouri, Jack Buechner the famous buildings of United States, experiences about the adjustments we to report on the 18th Congress-Bundes- which is the Alamo. had to make when we left Congress and tag Seminar held in Germany from The next day we took a private tour how we managed to seek and pursue ca- April 9 to 12 and other study group ac- of the State capitol, and I might add, reers in a variety of fields. tivities. the people from Texas made sure is Congressional spouse Leslie Hayes Mr. BUECHNER. I thank the gen- that everybody understood that that described how members of families of tleman from Illinois for yielding to me. dome is a little bit taller than the one former Members cope with leaving It gives me great pleasure to report on here in Washington. And we took a pri- Congress and beginning a new life. In the activities of the Congressional vate tour of the governor’s mansion. addition, congressional support staff Study Group. This program remains But being the last part of October, for outlined the services available to the largest and most active parliamen- some reason the governor of Texas was former Members of Congress. As in the tary exchange between the U.S. Con- not there. He was out campaigning for past, the seminar was followed by a re- gress and the legislative branch of any something. ception sponsored by the Association’s other country. Probably the highlight of the entire Auxiliary to afford more time for infor- b 0945 meeting and trip that we had was all of mal exchanges. us went to the LBJ Library and had Mr. Speaker, beyond the events we I would add that I do not think there lunch with students there, and then we organize here, the Association is very are any similar programs anywhere in broke up into different classes. Of active in sponsoring programs that are the world that would compare with course, Lady Bird Johnson was there international in scope. Over the years, this program. Currently 170 Members of and was a tremendous hostess to us. we have gained considerable experience Congress, 33 Senators, and 137 Members To participate in those classes with in fostering interactions between the of the House, participate in the activi- those students and to see the brilliance leaders of other nations and the United ties of the congressional study group. of the future generations of these States. We have arranged more than With the inauguration of the 107th young people and their knowledge of 424 special events at the U.S. Capitol Congress, the study group saw signifi- politics, and not only politics in the for international delegations from 85 cant changes in its congressional lead- United States, but politics around the countries and the European Par- ership. world was extremely impressive. liament, programmed short-term visits In the House, JOEL HEFLEY of Colo- After the classes, we then took a tour for individual members of Parliament rado assumed the post of chairman and of the LBJ Library, which I personally and long-term visits for parliamentary NICK LAMPSON of Texas became the new found, and I have been through that li- staff, hosted 47 foreign policy seminars vice chairman. On the Senate side, TIM brary many, many times, but I recall in nine countries involving 1,500 former JOHNSON of South Dakota remained the walking with Jack Brooks and Jake and current parliamentarians, and con- Democratic cochair while CHUCK HAGEL Pickle and Graham Purcell, and we hit ducted 18 study tours abroad for former of Nebraska replaced Bill Roth as the a particular spot in that museum Members of Congress. Republican cochair. where I was facing them, and all of a The Association also serves as the I would hope everybody would join sudden their expressions changed. We secretariat for the Congressional Study with me in thanking Bill Roth for the

VerDate 02-MAY-2001 23:37 May 02, 2001 Jkt 089060 PO 00000 Frm 00004 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.009 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1739 tremendous service and commitment The study group also organized sev- Beijing for in-depth discussions with that he gave to this program in his eral memorable excursions and activi- members of the National Peoples Con- years in the Senate. Under the Study ties. For example, we toured Peene- gress of China and meetings with other Group’s new director, Peter Weichlein, munde where Werner von Braun and government representatives and in the study group has significantly ex- his team developed rocket technology Tibet to observe conditions there. panded the number and scope of its ac- still in use today. We were flown by The association also has received tivities. However, the two main pro- military helicopter to Eggesin Army funding from private sources to ini- grams of the group remain its distin- Base where the German, Polish, and tiate a Congressional Study Group on guished visitors program at our Capitol Danish troops form the tri-national China which will hold monthly meet- and its annual Congress-Bundestag corps. Here we were briefed on the ings at the Capitol for current Mem- seminar. The Distinguished Visitors Kosovo mission. We witnessed several bers to discuss with American and Chi- Program has hosted numerous high troop exercises which are used to pre- nese experts topics of particular con- ranking elected and appointed officials pare the soldiers for their Balkan mis- cern in this important relationship. We of the Federal Republic of Germany sion. believe the current situation with here on Capitol Hill. The activities of the Congressional China underscores the need for forth- In this congressional session alone, Study Group on Germany as high- right and open dialogue between the the study group brought together with lighted by the annual seminar are leaders of the United States and China, Members of Congress Germany’s Fed- quite impressive and they serve an im- and we are working with the leaders of eral Minister of Economics, Werner portant purpose of providing current the U.S.-China Inter-Parliamentary ex- Mueller, and just last week the chair of Members with the opportunity to com- change group to encourage the con- Germany’s CDU party, that is the municate with legislators from one of tinuation and expansion of this vital Christian Democrats, Dr. Angela our most important allies and trade dialogue. Merkel, who quite possibly could be partners. The Association of Former The U.S. Congress and the Congress elected Germany’s next Chancellor in Members, through this program, pro- of Mexico have been conducting annual 2002. vides a very unique and vital service to seminars for 40 years under the aus- I now have had the pleasure of at- the current Members. I believe the pices of the U.S.-Mexico Inter-Par- tending several Congress-Bundestag Congressional Study Group on Ger- liamentary Group. However, there is seminars. The annual meeting ar- ranged by the Congressional Study many is an excellent example of how little interaction between legislators Group on Germany that brings to- the talents and efforts of former Mem- from these two countries during the gether Members of Congress and their bers can be used to benefit current rest of the year. The association hopes confreres from the Bundestag for in- Members and to a larger extent the to initiate a Congressional Study depth dialogue. This is the 18th year public. I thank you. Group on Mexico, with funding from Mr. ERLENBORN. Our association the seminar was hosted by the study the Tinker Foundation, so that Mem- also serves as the secretariat for the group and they just seem to be getting bers of Congress can meet on a regular Congressional Study Group on Japan. better each year, although I would add basis with visiting American dig- I think they get colder each year. As Founded in 1993 in cooperation with nitaries and other experts about var- we were leaving Usedom, we looked out the East-West Center in Hawaii, it is a ious aspects of the U.S.-Mexico rela- the window and we were greeted by bipartisan group of 86 Members of the tionship. some good Baltic Sea snow. House and the Senate with an addi- These plans have been delayed by the GIL GUTKNECHT of Minnesota led a tional 49 Members having asked to be advent of new administrations both in delegation of current and former mem- kept informed of the study group ac- the United States and Mexico. How- bers first to Berlin and then to Usedom tivities. In addition to providing sub- ever, knowing the importance placed Island from April 7 to April 13. We ar- stantive opportunities for Members of on both new Presidents and the U.S.- rived in Berlin on Sunday, were treated Congress to meet with their counter- Mexican relationship, it is anticipated to a private tour of the Reichstag by a parts in the Japanese Diet, the study that this program will get under way member of the Bundestag, Volkmar group arranges monthly briefings when in the near future. In the aftermath of Schultz. The next morning, we had a the Congress is in session for Members political changes in Europe, the asso- working breakfast with Germany’s for- to hear from American and Japanese ciation began a series of programs in eign minister. It was over an hour. I experts about various aspects of the 1989 to assist the emerging democracies would be hard pressed to think that our U.S.-Japan relationship. The Congres- of central and eastern Europe. Secretary of State would have given sional Study Group on Japan is funded With funding from the U.S. Informa- the same greetings and in-depth discus- primarily by the Japan-U.S. Friendship tion Agency, the association sent bi- sion with Members of the Congress. We Commission. partisan teams of former Members of also went with the Vice Chancellor, In 1999, the association began a par- Congress, accompanied by either a con- Joschka Fischer, where we discussed liamentary exchange program with the gressional or a country expert to the global security issues including China People’s Republic of China. In October Czech Republic, Slovakia, Hungary and and the Middle East. We then traveled of that year with funding from the U.S. Poland for up to 2 weeks. They con- to Usedom, which is a beautiful island Information Agency, the association ducted workshops and provided in- in the northeastern part of Germany hosted a delegation of nine members of struction on legislative issues for new three kilometers from the Polish bor- the National People’s Congress of members of parliament, their staffs der. China in Washington. This program and other persons involved in the legis- As you can imagine, as I said before, marked the inauguration of the U.S.- lative process. They also made public the second week of April and Usedom China Interparliamentary Exchange appearances to discuss the American in the Baltics, it was a bit cold but Group whose members are appointed by political process. In addition, the asso- that did not deter anyone from having the Speaker. The visit included in- ciation brought delegations of mem- a joyful experience. There were four depth discussions between Members of bers of parliament from these countries days of meetings with seven current the two Congresses as well as meetings to the United States for 2-week visits. Bundestag members ranging from the by members of the Chinese delegation With funding from the USIA, the as- Greens to the Christian Democrats. with high level executive branch rep- sociation sent a technical advisor to Our discussion focused on domestic resentatives, academics, and business the Hungarian parliament from 1991 to issues, especially East Germany 10 representatives. 1993. With financial support from the years after reunification and the In 2000, the association received a Pew Charitable Trust in 1994, the asso- United States under the Bush adminis- grant from the Department of State to ciation assigned technical advisers to tration. We also had a dialogue on continue this exchange program by ar- the Slovak and Ukrainian parliaments. trade questions, such as the trade im- ranging a visit to China by members of This initial support was supplemented plications of EU expansion to the east. the exchange group. The trip to China, by other grants to enable the Congres- We discussed security policy issues, for which is scheduled to take place in Au- sional Fellows to extend their stays. example, NMD and NATO expansion. gust of this year, will include stops in From 1995 through 2000, with funding

VerDate 02-MAY-2001 01:09 May 03, 2001 Jkt 089060 PO 00000 Frm 00005 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.012 pfrm02 PsN: H02PT1 H1740 CONGRESSIONAL RECORD — HOUSE May 2, 2001 from the U.S. Agency for International pect other countries to adopt our ways, invited by the Cuban Government. We Development and the Eurasia Founda- but we can help them identify the basic had the appropriate documentation tion, the association managed a highly elements of a free, representative gov- from the U.S. Government, however. successful program that placed Ukrain- ernment sensitive to the traditions of The Cuban Government did not ex- ian students in internships with com- their country. I believe that each and tend an official invitation to the dele- mittees, legislative support offices, and every one of us, having served our gation. We were simply issued tourist leadership offices of the Parliament of country in the past, still has the urge visas. This unofficial character of the Ukraine. This program met not only to serve in some capacity. With our ex- trip allowed us to control our own the Parliament’s short-term need of perience, we can help other countries time, to have a variety of meetings, having a well-educated, motivated, and move toward responsive democratic and to gain a much better idea of what professionally trained staff to conduct governments. It would be a shame to a cross-section of the Cuban population its current legislative work effectively, waste the resource that we represent. I thinks. Unencumbered by the protocol but also the longer term need to de- hope that we can have more programs demands that normally accompany an velop a cadre of trained professionals. such as those in Ukraine and Mac- officially approved trip, we were free to Former Members of Congress visited edonia. The association would be happy visit a wide range of independent orga- Ukraine from time to time to assist to respond to requests to assist other nizations, art centers, church and with these efforts by meeting with the emerging democracies. church-sponsored groups, and research students involved in the program as The association also has been inter- centers. well as with Ukrainian government ested in assisting with U.S.-Cuban rela- We were also able to attend church leaders. tions. In December of 1996, we sent a services, visit markets, travel into the At the end of 2000, the association delegation of current and former Mem- countryside and talk freely to private turned over the administration of this bers of Congress to Cuba on a study citizens. On the ground in Cuba, we program to local Ukrainian manage- mission to assess the situation there heard a remarkably diverse array of ment to ensure its long-term viability. and analyze the effectiveness of U.S. voices and observed a highly complex Two independent Ukrainian groups, policies toward Cuba. Upon its return, set of political and social cir- one academic, and the other the Asso- the delegation wrote a report of its cumstances. The report we wrote upon our return ciation of Ukrainian Deputies, have findings which was widely dissemi- from Cuba reflects the collective delib- committed themselves to maintaining nated through the media and was made erations of the delegation, and lists six the high professional standards in the available to Members of Congress as specific recommendations we all en- nonpartisan selection process. well as to personnel in the executive The Ukrainian program proved to be dorsed. We did not attempt to tackle branch. every issue involved in the relations an excellent pilot that was well worth A follow-up to this initial study was replicating in other emerging democ- between our countries. In order to conducted in January of 1999. Again, make concrete recommendations, we racies, particularly in the Central/East the delegation wrote a detailed report European and NIS areas. In late 1999- focused, however, on a core of matters of its findings and shared it through that seemed particularly significant to early 2000, under a grant from the Na- media and briefings with congressional tional Democratic Institute for Inter- us. leaders and representatives of the exec- Our recommendations closely par- national Affairs, with funding from the utive branch. A final study mission to alleled those of the previous two bipar- Agency for International Development, Cuba took place from May 29 to June 3 tisan delegations. To date, 15 former the association sent a congressional of 2000. A delegation led by John Members of Congress, eight Repub- staff member to Macedonia for 6 Brademas of Indiana and including licans and seven Democrats, have trav- months. He selected university stu- Jack Buechner of Missouri, Larry eled to Cuba on these Ford Foundation- dents and recent graduates in that LaRocco of Idaho, and Fred Grandy of sponsored missions. The recommenda- country and trained them to provide Iowa met with representatives of the tions of all three delegations have been research and drafting services to the Cuban Government, dissidents and oth- unanimous and are remarkably similar Members of Parliament who lacked ers to assess the present state of the in terms of their implications for U.S. such resources. A young Macedonian U.S.-Cuba relations. policy. lawyer worked with our congressional b 1000 I would like to briefly summarize our fellow and assumed the management of recommendations: number one, Con- the program upon his return to the This program with Cuba was funded gress and the administration should United States. I was privileged to have by the Ford Foundation. begin a phased reduction of sanctions traveled to Macedonia in January of I would now like to yield to the gen- legislation as defined in the Cuban De- 2000 to confer with Members of the tleman from Idaho, Larry LaRocco, to mocracy Act of 1992 (P.L. 102–484) and Macedonian Parliament concerning the share his observations from the most the Cuban Liberty and Democratic Sol- intern program that we had established recent trip to Cuba; and I will replace idarity (LIBERTAD) Act of 1996, that for them. the gentleman while he is in the well. was known as the Helms-Burton P.L. I believe that one of the most impor- Mr. LAROCCO. Thank you, Mr. Presi- 104–114. At the time of our report, we tant programs the association has un- dent. supported the enactment of H.R. 3140 dertaken is providing help to emerging I am pleased to report on the third and S. 2382 to remove all restrictions democracies, especially their par- fact-finding mission to Cuba by a bi- on the sales or gifts of food and medi- liaments. The transition from the old partisan delegation from the Associa- cines. ways to democratic governments is a tion of Former Members of Congress. Number two, serious consideration basic test of the success of the newly Our trip was just about 1 year ago, should be given to the establishment of emerging democracies. Similar prob- from May 26 to June 3, 2000. Our pur- a U.S. bank in Havana, if legislation to lems are being faced by all of them pose was to explore firsthand the cur- authorize the sale of food and medicine with varying successes. I believe the rent political, social and economic re- is approved by the Congress and the ad- intern projects that we have initiated alities in Cuba and to consider what ministration. are necessary to help the legislatures steps might be taken to improve rela- Number three, opportunities for peo- transition to independent and mean- tions between Cuba and the United ple-to-people contact between citizens ingful roles if the voice of the people is States. of the United States and Cuba should to be heard as it must in a democracy. Before traveling, we were fully be expanded, particularly through the The U.S. Association of Former briefed by officials in the Department two-way exchanges in the fields of edu- Members of Congress is uniquely quali- of State, key Members of Congress, cation and culture. More links between fied to provide the resources for the leaders of nongovernmental organiza- educational, cultural and nongovern- education of the legislators in the tions, and officials of the Cuban Inter- mental institutions in our two coun- emerging democracies. Former Mem- ests Section in Washington, D.C. tries should also be established. bers have experience in State legisla- Unlike the two previous delegations, Number four, the current ceilings on tures and in Congress. We cannot ex- we did not travel as a group officially annual remittances from the United

VerDate 02-MAY-2001 01:09 May 03, 2001 Jkt 089060 PO 00000 Frm 00006 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.013 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1741 States to Cuba should be raised signifi- dinner at which our friend and col- am just putting it on the record now so cantly, if not eliminated. league, Norm Mineta, was honored. We that we think we have him locked up Number five, steps should be taken to presented Norm with the Statesman- for it, and he has agreed to come so we facilitate direct flights between the ship Award in recognition of his service have it all set for next year. We just United States and Cuba. as a Member of Congress, as Secretary need your help to make it even more Finally, number six, steps should be of Commerce, as the current Secretary successful. taken to improve Internet communica- of Transportation and for his many I also want to talk a little bit about tions between the citizens of both other outstanding achievements. the book, ‘‘Inside the House,’’ which countries. Initiatives aimed at ena- I would like to thank the gentleman many of you out here wrote and which bling Cuban citizens to gain greater ac- from Florida, Lou Frey, who provided we have even got help from our good cess to the Internet should be encour- the leadership that helped make our friend Barry Turner with a chapter aged and support should be given to in- first four dinners so successful, and to which we would not have gotten done dividuals and entities involved in the yield to him to report on this year’s without your help, Barry; and we cer- creation of Web sites and other elec- dinner, our plans for next year, and for tainly appreciate that. For those of tronic platforms aimed at improving any additional comments he would like you who have not read it, it is really a mutual understanding between the peo- to make about the association’s book, good book. Sonny Montgomery called ples of the United States and Cuba. ‘‘Inside the House,’’ which was men- me the other day and he said, that is a That, Mr. President, and members of tioned earlier. pretty good book, and it really is. It is the association, is our report. At this Mr. FREY. Thank you, Mr. Presi- a human look at the Congress. It is a time there are no future missions to dent. Before we start, I would like to case study of the Congress. It is Cuba that are planned, but we look for- thank you and Larry, Jack Buechner, unique. There is nothing else, to my ward to playing a role in developing Tom Downey, Matt McHugh, the execu- knowledge and to those of us who have better relationships between Cuba and tive committee, for the leadership you been working on this, that exists. the United States. have given us and given us all an op- It is not one person’s look at the Mr. Speaker, that concludes my re- portunity to put back and continue our Congress, but it is 34 people and other port on our trip to Cuba. public service in a small way. Mr. ERLENBORN. I must confess people who are looking at it. It is real- The fourth annual Statesmanship that I arranged to have the gentleman ly the human side of it. If you read this Award dinner was held on March 6 at from Idaho give this report. For the book, you will come away, I think, the Willard Hotel. It was a sellout with last 2 years, I was privileged to occupy number one, with a feel of how all of us over 460 people attending. As a matter the Speaker’s chair during our report care about this place and what we are of fact, our honoree, Jack Kemp, called to the Congress. This year, of course, I doing and how proud of it we are, and up at the last minute for tickets to go am enjoying this role; but I hated to the different approaches to it. relinquish the Speaker’s chair, so I and our staff turned him down since it I have a bunch of grandkids now, and made it possible I could occupy it for was a sellout. That was quickly cor- I am in the reading mode again; and part of the time at least. rected; but you better get your order in there is that Aesop’s Fable, I think, of The association organizes study early, Mr. Secretary, for that. the seven blind men and the elephant tours for its members and their spouses As I said, Norm Mineta got the who reach out and touch different who at their own expense have partici- award. We are pleased to report that parts and talk about it. That is sort of pated in educational and cultural expe- the revenues for the ticket sales were what this book is like. It comes from riences in Canada, China, Vietnam, over $150,000 from it. We had two out- all different things, from the spouse’s Australia, New Zealand, the former So- standing auctioneers, Jimmy Hayes standpoint, from the academic stand- viet Union, Western and Eastern Eu- and Larry LaRocco. We were joined by point, from Jim Symington talking rope, the Middle East and South Amer- a rookie this year, who we gave him a about how he got into public service, ica. chance to perform for us, TOM DELAY. going back to the time that one of his In March 2000, 65 association and aux- He performed very well. As a matter of relatives was with Pickett and the iliary members, spouses and friends, fact, we have asked him back he did other was on the other side of the fight visited Italy where there were three such a good job. So we hope he will join in the same battle, and just different former Members of Congress serving as our team next year. interesting looks at people, how they ambassadors. Our ambassador to the We raised over $12,000 from the auc- got there, how they feel and what they Holy See, Lindy Boggs. Lindy, good to tion itself. And for those of you who do. see you here today. George McGovern, wish, there is still an opportunity left Not really to our surprise but to our who was then ambassador to the Food if you see Jack Buechner to have a relief, we have seen some really good and Agricultural Organization; and chance in a raffle that we are con- reviews from political scientists across Tom Foglietta, our ambassador to tinuing. the country. It has been covered on C– Italy. I put in the RECORD the names of ev- SPAN. It has been covered up here. We In September of 2001, we are planning erybody who worked on this dinner for have had it sold out already, another a study tour to Turkey which will in- us, who we really appreciate. The next printing coming back. It is being used clude visits to Istanbul, Ankara, Izmir, dinner will be March 5 of next year. I at the War College out in California. and Ephesus, with an optional cruise know there are people like Jim Lloyd Colgate University is using it. along the southern coast at the end. who have been beating on me saying, One last thing I want to say, we real- The trip will include meetings with When is the dinner? I want to go out ly owe a great debt to Professor Mi- Turkish business representatives and and sell tickets again. Jim, I appre- chael Hayes. He is the chairman of the government leaders, as well as opportu- ciate that offer of yours and everybody Political Science Department at nities to visit many of the historic else’s. So we need all of you who served Colgate University, and he really put a sites in Turkey. I hope many of our as- to serve again. Frankly, some of you lot of work and effort into this. So for sociation and auxiliary members will who have not joined in could really those of you who have not had a chance be able to participate in what should be help us because this is really the key to read it or use it, please do it. It is a an exceptional opportunity. fund-raising event for our association. good book, and I guess there will be a Mr. Speaker, as you can see, the as- We really need the help. sequel to it so you will be getting some sociation conducts a wide variety of We have the date for the dinner. It is phone calls in the future. programs and is continuing to expand going to be at the Willard Hotel. I had Mr. ERLENBORN. Would the gen- them. All of this requires financial sup- the opportunity with some of you here tleman from Florida please remain in port. At present, our funding comes to have breakfast with the Vice Presi- the well. from three primary sources: program dent, I think a week or so ago, and I would like to now yield to the gen- grants, membership dues, and an an- used that opportunity and our old tleman from Missouri, Mr. Symington. nual fund-raising dinner and auction. friendship to ask him if he would re- Mr. SYMINGTON. Mr. Speaker, I On March 6 of this year, we held our ceive the award next year; and before thank the gentleman from Illinois, our fourth annual Statesmanship Award his staff could intercede he said yes. I esteemed president, Mr. Erlenborn, for

VerDate 02-MAY-2001 01:09 May 03, 2001 Jkt 089060 PO 00000 Frm 00007 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.015 pfrm02 PsN: H02PT1 H1742 CONGRESSIONAL RECORD — HOUSE May 2, 2001 this opportunity to present to the gen- Julian C. Dixon, California; vocacy organization that he founded in tleman from Florida, our former presi- Henry B. Gonzalez, Texas; 1993 with William Bennett and Ambas- dent, Mr. Frey, on behalf of the Asso- Paul G. Hatfield, Montana; sador Jeane Kirkpatrick. ciation of Former Members of Con- Allan T. Howe, Utah; Jack, will you please come and join gress, this Moroccan leather-bound Robert J. Huber, Michigan; me in the well. copy of ‘‘Inside the House,’’ the collec- James M. Leath, Texas; To the gentleman from New York, on tion of congressional memoirs, percep- John V. Lindsay, New York; behalf of the Association, I am de- tions and insights which he conceived, Koln G. McKay, Utah; lighted to present our Distinguished inspired, doggedly pursued, co-au- James D. ‘‘Mike’’ McKevitt, Colo- Service Award to you, Jack. The thored and proofread. rado; plaque is inscribed as follows. Mr. FREY. Not perfectly. Helen S. Meyner, New Jersey; Here, I will let you read along to see Mr. SYMINGTON. For the edification James H. Morrison, Louisiana; if I get it right. of students and teachers of govern- John O. Pastore, Rhode Island; Mr. KEMP. I trust you. ment, current and future legislators, L. Richardson Preyer, North Caro- Mr. ERLENBORN. ‘‘Presented by the and the American people. It is in- lina; U.S. Association of Former Members of scribed, ‘‘For the Honorable Lou Frey, William J. Randall, Missouri; Congress to the Honorable Jack Kemp Jr., with the admiration and esteem of John G. Schmitz, California; for your outstanding performance in his grateful colleagues.’’ Timothy P. Sheehan, Illinois; the world of sports, public service and Norman Sisisky, Virginia; private life. As a star professional foot- b 1015 Joe Skubitz, Kansas; ball player, a Member of Congress for Mr. ERLENBORN. Mr. Speaker, in William G. Stratton, Illinois; 18 years and a member of the leader- addition to financial support, the Asso- Bruce F. Vento, Minnesota; ship of the Republican Party, you dis- ciation benefits enormously from the E.S. Johnny Walker, New Mexico; tinguished yourself. Your nomination effort and leadership of many people. I Sidney R. Yates, Illinois. for Vice President in 1996 and service want to thank the officers of the Asso- I respectfully ask all of you to rise as Secretary of Housing and Urban De- ciation, Larry LaRocco, Vice Presi- for a moment of silence in their mem- velopment for 4 years added to an al- dent; Jack Buechner, Treasurer; Jim ory. ready impressive list of accomplish- Slattery, Secretary; and Matt McHugh, Thank you. ments. We know that you still are dedi- the immediate past President, and the As you know, each year the Associa- cated to public service, and we salute members of our board of directors and tion presents a Distinguished Service you. Washington, D.C., May 2, 2001.’’ our counselors who are providing the Award to an outstanding public serv- Jack. excellent guidance and support nec- ant, and, Jack, I know you have been Mr. KEMP. Thank you. essary to oversee these activities. waiting, thinking we were bringing the Mr. ERLENBORN. Jack, I also am In addition, we are assisted by the program to a conclusion without re- pleased to present you with a scrap- auxiliary of the Association, now led membering your part in this ceremony book of letters from your colleagues of- by Nancy Buechner. We are particu- today. fering their congratulations, along larly grateful for their help with the The award normally rotates between with mine, for this well-deserved sym- ‘‘Life After Congress’’ seminars and the parties, as do our officers. Last bol of our respect, appreciation and af- our annual dinners. year, we became totally nonpartisan fection. We would be pleased to receive some Needless to say, our programs could and presented the award to former House Chaplain James David Ford. comments from you. not be so effectively run without the Mr. KEMP. Well, first of all, thank This year, we are pleased to be hon- exceptional support provided by our you so very much. It is a great honor. oring an outstanding Republican, Jack staff, Linda Reed, Executive Director; John, thank you for your kind com- Kemp. Peter Weichlein, Program Director, ments. with special responsibility for the Con- Jack is a native of California. After I just have a few remarks that I gressional Study Group on Germany; graduation from Occidental College, he would like to make. I ask unanimous Katrinka Stringfield, Executive Assist- began his 13-year career as a profes- consent to revise and extend my re- ant; and Jamie Pearson, Receptionist. sional football quarterback. After serv- marks. Many thanks to all of you. ing as captain of the San Diego Char- Mr. LAROCCO. So ordered. The Association also maintains close gers, he moved east and became cap- Mr. KEMP. Thank you. Like my relations with the counterpart associa- tain of the Buffalo Bills, whom he other speeches. tions of former members of par- quarterbacked to the American Foot- To be introduced as a former profes- liaments in other countries. I am ball League championship in 1964 and sional football quarterback and a pleased to recognize and welcome 1965, when he was named the league’s former Member of the House of Rep- Barry Turner, the President of the Ca- Most Valuable Player. He cofounded resentatives and a former Secretary of nadian Association of Former Parlia- the American Football League Players Housing and Urban Development and a mentarians, and Richard Balfe, Mem- Association and was five times elected former next Vice President of the ber of the European Parliament, who president of that association. United States for about 21⁄2 months in are here to find out some of the ways His public service began with 18 years 1996, my grandson in Seattle, Wash- that our Association has functioned of service from 1971 to 1989 in the House ington, introduced me to his Sunday over the past and as part of an effort of of Representatives, representing the school class in Seattle, Washington, beginning a new former Members of the Buffalo area and western New York, one time as ‘‘a former very important European Parliament Association. I during which he served for 7 years in public serpent.’’ hope that you have found a lot of help the Republican leadership as Chairman I am thrilled today to be joined by here with some ideas for your new as- of the House Republican Committee. my wife, Joanne, many of you know sociation. After leaving Congress, Jack served for her, my granddaughter, Babbi, and Mr. Speaker, it is now my sad duty to 4 years as Secretary of Housing and daughter, Jennifer. My son, Jimmy was inform the House of those persons who Urban Development. In 1995, he served here with his two sons, our 12th and have served in Congress and have as Chairman of the National Commis- 13th grandchildren. We did not have passed away since our report last year. sion on Economic Growth and Tax Re- any grandchildren when I came to Con- The deceased Members of Congress are: form. Jack received the Republican gress. We had four children. They sub- Homer E. Abele, Ohio; Party’s nomination for Vice President sequently all got married and have William H. Ayres, Ohio; in August of 1996, and since then has wonderful families. Herbert H. Bateman, Virginia; campaigned nationally for reform of I am very grateful to have served Marion T. Bennett, Missouri; taxation, Social Security and edu- with you, many of you, in this body, to William T. Cahill, New Jersey; cation. think and reflect upon the wonderful Alan Cranston, California; Jack currently is codirector of Em- times through which we went, as well Paul D. Coverdell, Georgia; power America, a public policy and ad- as the great challenges that we faced.

VerDate 02-MAY-2001 01:09 May 03, 2001 Jkt 089060 PO 00000 Frm 00008 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.017 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1743 It is pretty well-known that I am RANGEL, I walked across that center Earth, think back to July of 1776. known as the Hubert Humphrey of the aisle and shook hands, met them, be- There was a Holy Roman Empire. Ven- Republican Party. He said one time came fast friends of both RANGEL and ice was a Republic. France was ruled that he did not think he spoke too Garcia, and that became the Enterprise by a king, China by an emperor, Russia long, because he enjoyed every minute Zone, Operation Bootstrap, that I stole by an empress, Great Britain was a of his speeches. from Luis Munoz Marin. monarchy, Japan was ruled by Shogun. Having served for 18 years in this Every idea I ever had in this body I All of those regimes and systems body, and to hear Members of the stole from someone else. The Kemp- have passed into the pages of the his- House on both sides of the aisle reflect Roth bill was stolen from John F. Ken- tory book. There is really only one upon this House of Representatives and nedy; privatization of housing was sto- that has lasted for 225 years with its how much it means to them, I wanted len from Abraham Lincoln’s idea of basic, rudimentary, democratic form of to thank the Association, thank Lou homesteading. I guess my mother was government and Constitution. That is Frey, former President, and you, John, right when she said, ideas, no one has a this little experiment in human free- as the new President. Lindy, I too want proprietary right over an idea. They dom and democracy founded on the to salute you as our Ambassador to the are universal, and when you share northeastern shores of North America Vatican. And to think as I stand here them with each other, you do not lose by a group of men and women who that I served with Hale Boggs. anything. It is a win-win. founded a nation predicated upon the It is overwhelming to come back. I I like to think that some of us, and I inalienable right of people to be free, feel a little bit like I did when I went know that many of you have, have had the inalienable right of all of us to back to Buffalo for a reunion of my old a huge impact upon this democratic freedom and democratic rule, and the championship team. They showed a system of ours. I want to thank my inalienable right to life, liberty, and film of my highlights. There were a colleagues from the Democratic side of the pursuit of happiness. couple of bubble gum cards and a pho- the aisle for all that they have meant tograph or two. But they played Gladys It is pretty amazing that those words to me. The Bible says he who wrestles of Jefferson 225 years ago are quoted Knight and the Pips singing ‘‘Memo- with us strengthens us. ries, the Way We Were.’’ from Wenceslaus Square in the Czech I can remember watching a football b 1030 Republic in Prague to Tiananmen Square in Beijing. They are not dead, spiral through the air in slow motion, I think I have been strengthened by they are alive, and we are part of that and I realized that I would never throw the debates in this Chamber. I know history. a football again, maybe with my grand- you have, too. That really means a lot I get a chill standing here telling you children, but not in professional ranks, to me. how honored I am to have been your and I really had a tear in my eye going I appreciate the civility. Yes, we used colleague, to have been your friend, to back and thinking that I would never to go at it hammer and tongs, but have wrestled and argued and debated do that again. And to stand here today there was great civility. I realize that and discussed and talked and talked in front of you, so many of whom I you can disagree without being dis- and talked, I am sure you would think. served with, makes me realize that I agreeable. I must say, some of my best But how else would people learn if I did will never do this again. I doubt if I friends are not only on the Republican not? will ever give a speech on the floor or side of the aisle, but on the Democratic from the well of the House. side of the aisle. I appreciate that. The Thank you for this award. Thank you To look at you and realize the friend- best friends I made in football were the for the association. Thank you for your ships we made, I came during the Viet- guys who used to beat me up on Sun- friendship. Thanks for honoring Jack nam War, there was Watergate, the day, and oh, did they beat me up. But and Joanne Kemp, because I could not cul-de-sac of the economy into which I appreciate that and I am stronger for have done it without my wonderful we had burst in the late 1970s, infla- it. partner of 42 years and 13 grand- tion, unemployment, an energy crisis Many of the ideas I had at HUD came children later. Like all of us, that was of unbelievable proportions. And, Bob from this body, things that I wanted to the greatest decision of my life. I love Michel, to have served with you and do when I got into that huge agency to you. Gerry Ford as my leaders, it really help urban America. Mr. ERLENBORN. Thank you again, does flood my mind’s eye with memo- So I just want to close with the Jack, for your friendship and service. ries. Mr. Speaker and members of the as- But I will not go into it except to say thought that we all served, or many or most of us served, when democracy was sociation, we are honored and proud to it was the greatest honor of my life, serve in the U.S. Congress. We are con- other than to get this award, to be rec- in retreat. There was an evil empire. There was a Berlin Wall. There were tinuing our service to our Nation in ognized for a legislative career that other ways now, but hopefully ones spanned those 18 years. To see Bobby walls of segregation and discrimina- tion. that are equally as effective. Garcia over here, with whom one day Again, thank you for letting us re- in the late 1970s when Governor Munoz Many of them have come down. This hemisphere today, 97 percent of this turn today to this Chamber. This con- Marin died and Bobby got up and me- cludes our 31st Annual Report by the morialized him, and I was over on the hemisphere freely elect their leaders. When Buchanan, John Buchanan and I U.S. Association of Former Members of Republican side, had read about him, Congress. Thank you. never met him obviously, but when were here, I think it was something Mr. LAROCCO (presiding). The Chair Bobby Garcia spoke and CHARLIE RAN- like 25 percent. I am reminded of the again wishes to thank the former Mem- GEL spoke, I said, would you mind if a words of Benito Juarez, the great bers of the House for their presence Republican helped memorialize the President of Mexico, who said, ‘‘De- here today. Before terminating these great career and leadership of Munoz mocracy is the ultimate destiny of all proceedings, the Chair would like to in- Marin? mankind.’’ I got up and I said, he was the author I really believe that. I believe that vite those former Members who did not of Operation Bootstrap in Puerto Rico, freedom and democracy is the ultimate respond when the roll was called to and I thought, would it not be wonder- destiny of all mankind. There is a give their names to the Reading Clerks ful, Bob, if we could do that for the struggle. There is always a struggle. for inclusion on the roll. South Bronx, and, CHARLIE RANGEL, if But we are on the side of history. This The Chair wishes to thank the other we can do it for Harlem, and Buffalo, House is at the epicenter of a revolu- former Members of the House for their and Watts, Los Angeles, and East L.A. tion taking place around the world. presence here today. and East St. Louis and all the areas of So as I conclude my remarks, par- Good luck to all. urban America that had been troubled ticularly with a member of the Euro- The Chair announces that the House by the problems of our deteriorating pean Parliament here that we all wel- will reconvene at 10:45 a.m. inner cities. come and a great Brit, may I say to all Accordingly (at 10 o’clock and 34 It was at that moment, having never of you, stop and think in this year of minutes a.m.), the House continued in met Bob and having never met CHARLIE our Lord 2001 that 225 years ago on this recess.

VerDate 02-MAY-2001 23:37 May 02, 2001 Jkt 089060 PO 00000 Frm 00009 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.019 pfrm02 PsN: H02PT1 H1744 CONGRESSIONAL RECORD — HOUSE May 2, 2001 b 1045 That is the equivalent of a jumbo jet in abusive relationships; held back by a crashing each day. And it is about sav- lack of education and financial sta- AFTER RECESS ing women’s lives. bility, and unable to care for them- The recess having expired, the House The fact remains that since 1973, no selves and their families. That is not was called to order by the Speaker pro U.S. Federal funds can be used around acceptable. tempore (Mr. BASS) at 10 o’clock and 45 the world for abortion. Let me be clear: Today, the Committee on Inter- minutes a.m. the global gag rule is about restricting national Relations will take up the f foreign nongovernmental organizations measure offered by the gentlewoman in the use of their own money. This from California (Ms. LEE) to end the PRINTING OF PROCEEDINGS HAD language would be unconstitutional in global gag rule. I urge my colleagues DURING RECESS our own country, and it is unconscion- on the committee and throughout this Mr. GIBBONS. Mr. Speaker, I ask able that we are exporting it to some of House to vote ‘‘yes’’ on her legislation unanimous consent that the pro- the world’s poorest countries where it and vote ‘‘yes’’ for women’s rights ceedings had during the recess be print- affects some of the world’s poorest around the world. ed in the CONGRESSIONAL RECORD and women. Make no mistake, Mr. Speaker, the that all Members and former Members The gag rule is enough to make me global gag rule will cost women around who spoke during the recess have the gag. It exports the worst of American the world their lives. Women in the privilege of revising and extending internal politics. I urge a ‘‘no’’ vote in United States may enjoy reproductive their remarks committee and a ‘‘yes’’ vote for the freedom today, but our rights are only The SPEAKER pro tempore. Is there amendment of the gentlewoman from as safe as the rights of all women. objection to the request of the gen- California (Ms. LEE). f tleman from Nevada? f ESTABLISHMENT OF COMMISSION There was no objection. HOUSING OPPORTUNITIES FOR TO STUDY ASSISTANCE PRO- f PERSONS WITH AIDS GRAMS KEEP PUBLIC LANDS PUBLIC (Ms. ROS-LEHTINEN asked and was (Mr. PETRI asked and was given per- given permission to address the House mission to address the House for 1 (Mr. GIBBONS asked and was given for 1 minute and to revise and extend minute and to revise and extend his re- permission to address the House for 1 her remarks.) marks.) minute and to revise and extend his re- Ms. ROS-LEHTINEN. Mr. Speaker, Mr. PETRI. Mr. Speaker, I am today marks.) the HOPWA program, or the Housing introducing legislation to establish a Mr. GIBBONS. Mr. Speaker, the new Opportunities for Persons with AIDS, commission to take a comprehensive administration has certainly had its is the only Federal program that helps look at assistance programs and ways hands full reviewing hundreds of hast- the housing crisis facing people with to reduce the disincentives that result ily conceived and poorly drafted regu- AIDS. when they are phased out. lations issued in the waning hours of Rental help, mortgage assistance, Our task must be to help people move the Clinton administration. help with utility payments, and infor- from subsidized jobs into self-suffi- For example, the Clinton roadless mation on low-income housing oppor- ciency. Current welfare and tax poli- initiative proposes to protect the envi- tunities are some of the ways in which cies put up tremendous roadblocks to ronment by slamming the door and HOPWA helps low-income persons with that goal, as each time a low-income locking up 58 million acres of public AIDS in securing stable living environ- worker increases his or her income, the land from public access. Certainly we ments and in living longer and in more Government takes all or most of the need to protect our public lands and productive lives. increase away. our sensitive lands, but this rule does Unfortunately, there is an estimated The miracle is that there are some not only prohibit the construction of 40,000 new AIDS cases reported every who, perhaps out of pride, work their new roads in these areas, it also closes year, and the demands for housing that way out of this lower-income range. We thousands of existing roads used by will provide for the safety and stability must focus on this problem and look Americans to enjoy firsthand the beau- for these individuals to benefit from for solutions. The commission provided ty of our public lands. Closing off pub- drug treatments greatly outweighs the for in the legislation I am introducing lic lands should be made only on a resources currently available. Presi- today will help us do that, and I urge case-by-case basis and not by hurried dent Bush, however, has proposed to al- my colleagues to cosponsor this initia- and executive edicts. locate $277 million in his budget, an in- tive. Protecting our pristine environment crease of $57 million from last year’s f does not justify banning Americans budget, to address the housing crisis THE SELL-OUT OF AMERICA from accessing and enjoying these facing people with AIDS. lands. We must revise any roadless ini- I urge my colleagues to consider (Mr. TRAFICANT asked and was tiative which would force Americans to funding HOPWA and alleviate the given permission to address the House experience the beauty of our lands by growing needs of individuals living for 1 minute and to revise and extend looking into a photograph instead of with HIV and AIDS. his remarks.) experiencing and appreciating nature’s f Mr. TRAFICANT. Mr. Speaker, the magnificence in a firsthand measure. Great Lakes are now open. The first GLOBAL GAG RULE f foreign ship to dock in Cleveland, Ohio, (Ms. WOOLSEY asked and was given carried 10,000 tons of steel from Russia. STRIKING THE GAG RULE permission to address the House for 1 While mills are closing in Cleveland, (Mrs. MALONEY of New York asked minute and to revise and extend her re- Youngstown, and Pittsburgh, steel and was given permission to address marks.) mills are closing all over America. Ten the House for 1 minute and to revise Ms. WOOLSEY. Mr. Speaker, family thousand tons of illegally dumped steel and extend her remarks.) planning saves lives. Whether we are just came in to America. Unbelievable. Mrs. MALONEY of New York. Mr. talking about Sonoma County, Cali- Think about it. It is getting so bad Speaker, I rise as a strong supporter of fornia, or Somalia, women who have the Army almost bought, without Con- international family planning and in control over their reproductive health gress’ interference, black berets for the strong opposition to the antiwoman are better off, and so are their families. Army from China. Beam me up. If our gag rule which is being debated before That is why we must repeal the global trade program is so good, why does Eu- the Committee on International Rela- gag rule. rope not do it? Why does Japan not do tions right now. Denying women around the world ac- it? Why does China not do it? First and foremost, this debate is not cess to a full range of reproductive I think it is time to put things in about abortion; it is about women choices not only limits their health order in America, my colleagues. dying to the tune of over 600,000 a year. care options, it leaves women trapped Enough is enough. I yield back the sell-

VerDate 02-MAY-2001 01:09 May 03, 2001 Jkt 089060 PO 00000 Frm 00010 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.022 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1745 out of America, wholesale, to Com- My daughter, Jennifer Baca, is one of b 1100 munist dictators, and the loss of jobs the performers; and I am very proud of SUPPORT BOYS AND GIRLS CLUBS to these socialist, communist coun- her. They have traveled from Southern IN BUDGET PRIORITIES tries. California, and they will be performing f here. (Mr. BARCIA asked and was given permission to address the House for 1 We will learn more about the cul- TRIBUTE TO FORT BRAGG minute and to revise and extend his re- tures and traditions of the Mexicans on PERSONNEL marks.) Cinco de Mayo as we all celebrate to- (Mr. HAYES asked and was given Mr. BARCIA. Mr. Speaker, I rise to gether. permission to address the House for 1 speak on a subject that is very dear to minute and to revise and extend his re- my heart, the Boys and Girls Clubs of marks.) f America. We all know that boys and Mr. HAYES. Mr. Speaker, I rise to girls who are involved in their local congratulate the men and women at PROPOSED CHANGE TO AMEND- clubs are less likely to get into trouble Fort Bragg, North Carolina, who once MENT VIII OF THE CONSTITU- and more likely to lead productive and again have earned the Commander-in- TION successful lives. Simply put, the 2,850 Chief Award for the Army Commu- Boys and Girls Club sites across the nities of Excellence program. (Ms. CARSON of Indiana asked and was given permission to address the country, which are located in our Na- For those who might not know, this tion’s most at-risk communities, help is an award similar to the civilian Mal- House for 1 minute and to revise and extend her remarks.) young people avoid many of the pitfalls colm Baldridge Award for Quality. into which so many of our youth fall. Today, Fort Bragg personnel, both Ms. CARSON of Indiana. Mr. Speak- They provides a springboard for the military and civilian alike, will be rec- er, yesterday, Law Day 2001, I intro- young men and women to start the rest ognized for a superior level of perform- duced House Joint Resolution 46 to of their lives. ance in meeting the needs of its sol- change the wording of constitutional Mr. Speaker, that is why I was so dis- diers, family members, and employees. amendment VIII. appointed to learn that President Bush I have visited a number of military Last week, the United States Su- has cut the funding for the Boys and installations throughout the world, preme Court decided a case known as Girls Clubs. With the well-publicized and nowhere have I seen better morale Atwater v. The City of Lago Vista. In troubles that many families are experi- than at Fort Bragg. The Commander- doing so, they shocked the Nation and encing as a result of parents working in-Chief Award recognizes officially those everywhere who believe in ra- longer hours each day, and increased what many of us living in the 8th Dis- tional and traditional limits on the concerns regarding juvenile crime, I trict of North Carolina already knew: power and reach of government to deal can think of no better investment that Fort Bragg is the crown jewel of the with the people. They concluded that the Federal Government can make Army, the epicenter of the universe. police may arrest and jail people for of- Mr. Speaker, I ask my colleagues to than to provide young people with a fenses for which no incarceration may join me in applauding the men and safe environment in the after-school be imposed in upholding the arrest of a women who make Fort Bragg the finest hours, when they are most vulnerable, mother, in front of her children and her facility in the Nation and in the world. which is precisely what the Boys and detention until she could arrange to Girls Clubs do. f post bail because she was not using her Mr. Speaker, I strongly urge all of CINCO DE MAYO seatbelt. my colleagues to think about the Boys (Mr. BACA asked and was given per- We used to joke about being arrested and Girls Clubs when they consider mission to address the House for 1 for spitting on the sidewalk; now we their budget priorities, and give them minute and to revise and extend his re- have life imitating art. Why must com- the funding that they deserve. marks.) mon sense be so uncommon in seats of f Mr. BACA. Mr. Speaker, this week is high authority? Why should common the week of Cinco de Mayo, a time to sense be so uncommon in the United PROVIDING FOR CONSIDERATION celebrate the courage and bravery of States? OF H.R. 10, COMPREHENSIVE RE- Mexican Americans. Cinco de Mayo, TIREMENT SECURITY AND PEN- I do not author constitutional SION REFORM ACT OF 2001 the 5th of May, commemorates the de- amendments lightly. Restraint is fun- feat of the French Army, which out- damental to the Constitution’s sur- Mr. REYNOLDS. Mr. Speaker, by di- numbered the Mexican Army in 1862. vival. But drastic threats to freedom rection of the Committee on Rules, I Cinco de Mayo serves as a reminder sometimes require drastic measures. call up House Resolution 127 and ask that the foundation of this Nation was This is the only way to overrule the in- for its immediate consideration. built by people from many nations and credibly bad judgment of the majority The Clerk read the resolution, as fol- diverse cultures who are willing to of Justices on the U.S. Supreme Court. lows: fight and die for freedom. The celebra- The court’s minority is to be com- H. RES. 127 tion is a symbol of pride, tradition and mended. They are freedom-loving pa- Resolved, That upon the adoption of this cultural awareness, a day telling our triots. resolution it shall be in order without inter- Nation that we need to come together vention of any point of order to consider in and learn to respect each other’s cul- Police States are not the United the House the bill (H.R. 10) to provide for tures and traditions in order to under- States. It is time to act. This is the pension reform, and for other purposes. The stand one another. language of the amendment, that says bill shall be considered as read for amend- I have introduced House Concurrent that ‘‘excessive bail shall not be re- ment. In lieu of the amendment rec- Resolution 85, which calls for a Presi- quired, nor excessive fines imposed, nor ommended by the Committee on Ways and cruel and unusual punishments,’’ and I Means and the amendment recommended by dential proclamation recognizing the the Committee on Education and the Work- struggle of the Mexican American peo- propose to add the language, ‘‘includ- ing incarceration, before or after trial, force now printed in the bill, the amendment ple. in the nature of a substitute printed in the To raise awareness of Cinco de Mayo for minor offenses not punishable by Congressional Record and numbered 1 pursu- on Capitol Hill, I have invited the In- incarceration,’’ then ending with the ant to clause 8 of rule XVIII shall be consid- land Empire Mariachi Education Foun- word ‘‘inflicted.’’ ered as adopted. The previous question shall dation of Southern California to per- I would respectfully ask my col- be considered as ordered on the bill, as form at the U.S. Capitol. This organi- leagues to draw together to support amended, and on any further amendment zation is dedicated to inspiring young this vital change in the most basic law thereto to final passage without intervening motion except: (1) 90 minutes of debate on people to achieve leadership potential to better protect all who share our the bill, as amended, with 60 minutes equally and teaching mariachi music to young most precious values of freedom, better divided and controlled by the chairman and people after school and instilling pride weaving that value into the fabric of ranking minority member of the Committee in their culture and tradition. our law. on Ways and Means and 30 minutes equally

VerDate 02-MAY-2001 01:09 May 03, 2001 Jkt 089060 PO 00000 Frm 00011 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.024 pfrm02 PsN: H02PT1 H1746 CONGRESSIONAL RECORD — HOUSE May 2, 2001 divided and controlled by the chairman and In the next 15 years, some 76 million Committee on Ways and Means, the ranking minority member of the Committee baby boomers will retire. But less than gentleman from California (Mr. THOM- on Education and the Workforce; (2) the fur- 40 percent of these retirees have in- AS), and the ranking member, the gen- ther amendment printed in the report of the vested enough to enjoy a comfortable, tleman from New York (Mr. RANGEL) Committee on Rules accompanying this res- olution, which may be offered only by a secure retirement. for their hard work on this measure. Member designated in the report, shall be in While people are living longer and In addition, I would like to commend order without intervention of any point of healthier lives, our retirement systems the gentleman from Ohio (Mr. order, shall be considered as read, and shall simply have not kept pace. According PORTMAN), and the gentleman from be separately debatable for one hour equally to the Department of Labor, nearly Maryland (Mr. CARDIN), the sponsors of divided and controlled by the proponent and half of all private sector workers will underlying legislation for their dedica- an opponent; and (3) one motion to recommit have no pension coverage, and only tion to pension and retirement reform. with or without instructions. one-fifth of small businesses with 25 or Mr. Speaker, I would like to remind The SPEAKER pro tempore (Mr. fewer employees offer a pension plan. this body that nearly an identical BASS). The gentleman from New York Individual Retirement Accounts pro- measure had overwhelming bipartisan (Mr. REYNOLDS) is recognized for 1 vide a critically needed source of re- support in the 106th Congress. I urge hour. tirement savings for millions of work- my colleagues to once again support Mr. REYNOLDS. Mr. Speaker, for the ers currently lacking pension coverage, this fair rule. purpose of debate only, I yield the cus- including the self-employed, part-time Mr. Speaker, I reserve the balance of tomary 30 minutes to the gentlewoman workers, and many small business em- my time. from New York (Ms. SLAUGHTER), pend- ployees. These are not the very Ms. SLAUGHTER. Mr. Speaker, I ing which I yield myself such time as I wealthy, but instead, hard-working, yield myself such time as I may con- may consume. During consideration of middle-income Americans who would sume. this resolution, all time yielded is for invest and save more money if only it (Ms. SLAUGHTER asked and was the purpose of debate only. was not for one significant barrier in given permission to revise and extend (Mr. REYNOLDS asked and was their way, government regulations. her remarks.) given permission to revise and extend The $2,000 IRA contribution limit has Ms. SLAUGHTER. Mr. Speaker, I his remarks, and include extraneous not been changed since 1981, and a lot thank the gentleman from New York material.) has happened in 20 years. The absence for yielding me the customary 30 min- Mr. REYNOLDS. Mr. Speaker, last of growth in retirement coverage since utes. night the Committee on Rules met and 1980 is simply unacceptable. Mr. Speaker, this is a modified closed granted a modified closed rule for H.R. Since 1990, pension coverage has de- rule. H.R. 10 deserves full and open de- 10, the Comprehensive Retirement Se- clined from 40 to 33 percent among bate, and an open rule would have en- curity and Pension Reform Act of 2001. workers making less than $20,000; and sured that no one would have been shut The rule provides for 90 minutes of gen- despite record surpluses in the Federal out of the process. eral debate with 60 minutes equally di- Government, the personal savings rate The gentlewoman from New York vided and controlled by the chairman has dropped every year since 1992 and is (Ms. VELA´ ZQUEZ) would have been able and the ranking member of the Com- at its lowest point in 66 years. to offer her amendment to make the mittee on Ways and Means, and 30 min- Currently, these high costs and com- benefits of the underlying bill available utes equally divided and controlled by plicated requirements prevent many to employees of small businesses; and the chairman and ranking member of employers from offering retirement op- the gentlewoman from Maryland (Mrs. the Committee on Education and the tions to their employees. It is time MORELLA) would have been able to offer Workforce. that we simplify the regulatory bar- her amendment to make Federal em- Additionally, the rule waives all riers and update our retirement sys- ployees eligible to participate in the points of order against consideration of tems. Let us make it easier for employ- benefits of the underlying bill. the bill and against consideration of ers to help their employees and easier Nevertheless, Mr. Speaker, I strongly the amendment printed in the report. for employees to help themselves. support expanding opportunities for The rule provides that in lieu of the The underlying bipartisan bill is crit- working Americans to save for their re- amendments recommended by the ical to the financial and retirement se- tirement, which are the underlying Committee on Ways and Means and the curity of countless Americans. H.R. 10 goals for H.R. 10. Congress must ensure Committee on Education and the will strengthen Individual Retirement that no segment of our workforce is ex- Workforce, the amendment in the na- Accounts, 401(k) plans and small busi- cluded from the opportunity to finan- ture of a substitute printed in the CON- ness retirement plans, finally bringing cially improve their retirement years. GRESSIONAL RECORD and numbered 1 retirement savings to the 21st century. The pressure to save adequately for shall be considered as adopted. The Comprehensive Retirement Se- retirement affects all working Ameri- The rule also provides for consider- curity and Pension Reform Act in- cans. H.R. 10 includes a number of pro- ation of the amendment in the nature creases the old IRA contribution limit visions which improve current protec- of a substitute, printed in the Com- from $2,000 to $5,000 over the next 3 tions for workers and retirees. It en- mittee on Rules report, if offered by years for both traditional and Roth courages rollovers of pension plans the gentleman from New York (Mr. IRAs. when workers switch employment, and RANGEL) or his designee, which shall be One of the most important measures eliminates compensation caps that un- considered as read and shall be sepa- of H.R. 10 is that it includes a fairness fairly affect pension benefits of rank- rately debatable for 1 hour, equally di- provision to allow workers over 50 and-file workers. vided and controlled between a pro- years of age to catch up in contribu- Specifically, H.R. 10 increases the an- ponent and an opponent. tions for 401(k) plans by increasing the nual IRA contributions from $2,000 to Finally, the rule provides for one mo- contribution level immediately. $5,000. It increases the amount that in- tion to recommit with or without in- This bipartisan measure will remove dividuals can contribute to 401(k) plans structions. excessive, burdensome and unnecessary from $10,000 up to $15,000. Also, it al- Mr. Speaker, this is a fair rule for re- Federal regulations, providing relief to lows taxpayers age 50 and above to con- form of our Nation’s pension and re- American businesses and workers by tribute an additional $5,000 to an IRA. tirement security laws. This is clearly encouraging small businesses to offer The bill allows workers to become a balanced, bipartisan measure and pension plans. By removing these re- vested and eligible for employer- this rule provides for a minority sub- strictions, Americans will be allowed matching contributions in 3 years rath- stitute and comprehensive debate. the freedom to invest in their future as er than 5. Mr. Speaker, in the Second Century, never before. Currently, more people are joining B.C., Cato the Elder, a Roman states- Mr. Speaker, H.R. 10 is a fair, bal- the workforce than are receiving pen- man, orator and writer, noted that anced, and bipartisan plan that will sion coverage. Only half of the work- ‘‘cessation of work is not accompanied help millions of Americans. I would force is covered by a pension plan. And by cessation of expenses.’’ like to commend the chairman of the worse, there is reason to believe that it

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00012 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.002 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1747 will not provide them with an adequate Barr Everett Largent Rohrabacher Skeen Tiberi Barrett Farr Larsen (WA) Ros-Lehtinen Skelton Toomey level of supplemental income in retire- Bartlett Fattah Larson (CT) Ross Slaughter Towns ment. Barton Ferguson Latham Rothman Smith (MI) Traficant Although there is insufficient data to Bass Flake LaTourette Roukema Smith (NJ) Turner measure contributions and benefits, Becerra Fletcher Leach Roybal-Allard Smith (TX) Udall (CO) Bentsen Foley Levin Royce Smith (WA) Udall (NM) data from the Federal Reserve shows Bereuter Ford Lewis (CA) Rush Snyder Upton pension plan contributions declining by Berkley Fossella Lewis (GA) Ryan (WI) Solis Velazquez 50 percent in recent years. The under- Berman Frelinghuysen Lewis (KY) Ryun (KS) Souder Vitter lying bill could be strengthened to en- Berry Frost Linder Sanchez Spence Walden Biggert Gallegly Lipinski Sandlin Spratt Walsh sure opportunities for those low- and Bilirakis Ganske LoBiondo Sawyer Stearns Wamp moderate-income workers with few or Bishop Gekas Lofgren Saxton Stenholm Watkins no opportunities to save. We must con- Blagojevich Gephardt Lowey Scarborough Strickland Watts (OK) Schaffer Stump Waxman tinue to work together to improve this Blumenauer Gibbons Lucas (KY) Blunt Gilchrest Lucas (OK) Schakowsky Stupak Weiner aspect of the bill. Boehlert Gillmor Luther Schiff Sununu Weldon (FL) Statistics confirm that low-income Boehner Gilman Maloney (CT) Schrock Sweeney Weldon (PA) workers are far less likely to partici- Bonilla Gonzalez Maloney (NY) Scott Tancredo Weller Bonior Goode Manzullo Sensenbrenner Tanner Wexler pate in an employment-based retire- Bono Goodlatte Markey Serrano Tauscher Whitfield ment saving plan than workers with Borski Gordon Mascara Sessions Tauzin Wicker higher incomes, even when the plan is Boswell Goss Matheson Shadegg Taylor (MS) Wilson Shaw Taylor (NC) Wolf available to them. Only 29 percent of Boucher Graham McCarthy (MO) Boyd Granger McCarthy (NY) Shays Terry Woolsey full-time workers with earnings below Brady (PA) Graves McCollum Sherman Thomas Wu $20,000 annually are covered by pen- Brady (TX) Green (TX) McCrery Sherwood Thompson (CA) Wynn Brown (FL) Green (WI) McHugh Shimkus Thompson (MS) Young (AK) sions. On the other hand, 76 percent of Shows Thornberry Young (FL) those earning above $60,000 annually Brown (OH) Greenwood McInnis Brown (SC) Grucci McIntyre Simmons Thune Simpson Thurman have coverage. Bryant Gutierrez McKeon During consideration of the under- Burr Gutknecht McKinney NAYS—24 lying bill, my colleagues, the gen- Burton Hall (OH) McNulty Buyer Hall (TX) Meehan Conyers Lee Owens ANGEL tleman from New York (Mr. R ) Callahan Hansen Meek (FL) DeFazio Matsui Sabo and the gentleman from Massachusetts Calvert Harman Meeks (NY) Deutsch McDermott Sanders (Mr. NEAL) will offer a substitute which Camp Hart Menendez Filner McGovern Stark incorporates the text of H.R. 10, as well Cannon Hastings (WA) Mica Frank Neal Tierney Cantor Hayes Millender- Hastings (FL) Oberstar Visclosky as provisions to encourage the partici- Capito Hayworth McDonald Hilliard Obey Waters pation of low-income workers. Capps Hefley Miller (FL) Hinchey Olver Watt (NC) Capuano Herger Miller, Gary Specifically, the substitute provides NOT VOTING—3 a refundable credit for low- and middle- Cardin Hill Miller, George Carson (IN) Hilleary Mink Johnson (CT) Moakley Tiahrt income workers who save for their re- Carson (OK) Hinojosa Mollohan tirement; and it makes small business Castle Hobson Moore employees eligible to claim a tax credit Chabot Hoeffel Moran (KS) b 1139 for establishing a qualified pension Chambliss Hoekstra Moran (VA) Clay Holden Morella Messrs. MCDERMOTT, HASTINGS of plan. That is most important. Clayton Holt Murtha Florida, NEAL of Massachusetts, Mr. Speaker, I urge my colleagues to Clement Honda Myrick DEUTSCH, TIERNEY, OLVER, support these important improvements Clyburn Hooley Nadler Coble Horn Napolitano MCGOVERN, and Ms. LEE changed to the bill. Collins Hostettler Nethercutt their vote from ‘‘yea’’ to ‘‘nay.’’ Mr. Speaker, I yield back the balance Combest Houghton Ney Mr. LARSON of Connecticut changed of my time. Condit Hoyer Northup his vote from ‘‘nay’’ to ‘‘yea.’’ Mr. REYNOLDS. Mr. Speaker, I yield Cooksey Hulshof Norwood Costello Hunter Nussle So the resolution was agreed to. back the balance of my time, and I Cox Hutchinson Ortiz The result of the vote was announced move the previous question on the res- Coyne Hyde Osborne as above recorded. olution. Cramer Inslee Ose Crane Isakson Otter The previous question was ordered. A motion to reconsider was laid on Crenshaw Israel Oxley the table. The SPEAKER pro tempore. The Crowley Issa Pallone question is on the resolution. Cubin Istook Pascrell Culberson Jackson (IL) Pastor f The question was taken; and the Cummings Jackson-Lee Paul Speaker pro tempore announced that Cunningham (TX) Payne the ayes appeared to have it. Davis (CA) Jefferson Pelosi THE JOURNAL Ms. SLAUGHTER. Mr. Speaker, I ob- Davis (FL) Jenkins Pence Davis (IL) John Peterson (MN) The SPEAKER pro tempore (Mr. ject to the vote on the ground that a Davis, Jo Ann Johnson (IL) Peterson (PA) BASS). Pursuant to clause 8 of rule XX, quorum is not present and make the Davis, Tom Johnson, E. B. Petri the pending business is the question of point of order that a quorum is not Deal Johnson, Sam Phelps DeGette Jones (NC) Pickering agreeing to the Speaker’s approval to present. Delahunt Jones (OH) Pitts the Journal of the last day’s pro- The SPEAKER pro tempore. Evi- DeLauro Kanjorski Platts ceedings. dently a quorum is not present. DeLay Kaptur Pombo The question is on the Speaker’s ap- The Sergeant at Arms will notify ab- DeMint Keller Pomeroy Diaz-Balart Kelly Portman proval of the Journal. sent Members. Dicks Kennedy (MN) Price (NC) The question was taken; and the Pursuant to clause 8 of rule XX, this Dingell Kennedy (RI) Pryce (OH) 15-minute vote on adopting the resolu- Doggett Kerns Putnam Speaker pro tempore announced that Dooley Kildee Quinn the ayes appeared to have it. tion will be followed by a 5-minute vote Doolittle Kilpatrick Radanovich on approving the Journal. Doyle Kind (WI) Rahall RECORDED VOTE The vote was taken by electronic de- Dreier King (NY) Ramstad Mr. MCNULTY. Mr. Speaker, I de- vice, and there were—yeas 404, nays 24, Duncan Kingston Rangel Dunn Kirk Regula mand a recorded vote. not voting 3, as follows: Edwards Kleczka Rehberg A recorded vote was ordered. [Roll No. 92] Ehlers Knollenberg Reyes The SPEAKER pro tempore. This Ehrlich Kolbe Reynolds YEAS—404 Emerson Kucinich Riley will be a 5-minute vote. Abercrombie Andrews Baker Engel LaFalce Rivers The vote was taken by electronic de- Ackerman Armey Baldacci English LaHood Rodriguez vice, and there were—ayes 377, noes 47, Aderholt Baca Baldwin Eshoo Lampson Roemer Akin Bachus Ballenger Etheridge Langevin Rogers (KY) answered ‘‘present’’ 1, not voting 6, as Allen Baird Barcia Evans Lantos Rogers (MI) follows:

VerDate 02-MAY-2001 01:09 May 03, 2001 Jkt 089060 PO 00000 Frm 00013 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.028 pfrm02 PsN: H02PT1 H1748 CONGRESSIONAL RECORD — HOUSE May 2, 2001 [Roll No. 93] Rehberg Shadegg Thurman 127, the bill is considered read for Reyes Shaw Tiberi AYES—377 Reynolds Shays Tierney amendment. Riley Sherman Toomey The text of H.R. 10 is as follows: Abercrombie Doolittle Kirk Rivers Sherwood Towns Ackerman Doyle Kleczka H.R. 10 Rodriguez Shimkus Traficant Akin Dreier Knollenberg Roemer Shows Turner Be it enacted by the Senate and House of Rep- Allen Duncan Kolbe Rogers (KY) Simmons Upton resentatives of the United States of America in Andrews Dunn Kucinich Rogers (MI) Simpson Velazquez Congress assembled, Armey Edwards LaFalce Rohrabacher Skeen Vitter SECTION 1. SHORT TITLE; REFERENCES; TABLE Baca Ehlers LaHood Ros-Lehtinen Skelton Walden OF CONTENTS. Bachus Ehrlich Lampson Ross Smith (MI) Walsh Baird Emerson Langevin (a) SHORT TITLE.—This Act may be cited as Roukema Smith (NJ) Wamp the ‘‘Comprehensive Retirement Security Baker Engel Lantos Roybal-Allard Smith (TX) Watkins Baldacci Eshoo Largent Royce Smith (WA) Watt (NC) and Pension Reform Act of 2001’’. Baldwin Evans Larsen (WA) Rush Snyder Watts (OK) (b) AMENDMENT OF 1986 CODE.—Except as Ballenger Everett Larson (CT) Ryan (WI) Solis Waxman otherwise expressly provided, whenever in Barcia Farr Latham Ryun (KS) Souder Weiner this Act an amendment or repeal is ex- Barr Fattah LaTourette Sanchez Spence Weldon (FL) pressed in terms of an amendment to, or re- Barrett Ferguson Leach Sanders Spratt Weldon (PA) Bartlett Flake Lee peal of, a section or other provision, the ref- Sandlin Stearns Wexler erence shall be considered to be made to a Barton Fletcher Levin Sawyer Stump Whitfield Bass Foley Lewis (CA) Saxton Sununu Wicker section or other provision of the Internal Becerra Ford Lewis (GA) Scarborough Tanner Wilson Revenue Code of 1986. Bentsen Fossella Lewis (KY) Schakowsky Tauscher Wolf (c) TABLE OF CONTENTS.—The table of con- Bereuter Frank Linder Schiff Tauzin Woolsey tents of this Act is as follows: Berkley Frelinghuysen Lipinski Schrock Taylor (NC) Wynn Berman Frost Lofgren Sec. 1. Short title; references; table of con- Scott Terry Young (AK) tents. Berry Gallegly Lowey Sensenbrenner Thomas Young (FL) Biggert Ganske Lucas (KY) Serrano Thornberry TITLE I—INDIVIDUAL RETIREMENT Bilirakis Gekas Lucas (OK) Sessions Thune ACCOUNT PROVISIONS Bishop Gephardt Luther Blagojevich Gibbons Maloney (CT) NOES—47 Sec. 101. Modification of IRA contribution Blumenauer limits. Gilchrest Maloney (NY) Aderholt Kennedy (MN) Slaughter Blunt Gillmor Manzullo Borski LoBiondo Stark TITLE II—EXPANDING COVERAGE Boehlert Gilman Mascara Brady (PA) Markey Stenholm Boehner Sec. 201. Increase in benefit and contribu- Gonzalez Matheson Capuano McDermott Strickland Bonilla tion limits. Goode Matsui Condit McNulty Stupak Bonior Sec. 202. Plan loans for subchapter S owners, Goodlatte McCarthy (MO) Costello Miller, George Sweeney Bono Gordon McCarthy (NY) Crane Moore Taylor (MS) partners, and sole proprietors. Boswell Goss McCollum English Neal Thompson (CA) Sec. 203. Modification of top-heavy rules. Boucher Graham McCrery Etheridge Oberstar Thompson (MS) Sec. 204. Elective deferrals not taken into Boyd Granger McGovern Filner Pallone Udall (CO) account for purposes of deduc- Brady (TX) Graves McHugh Hastings (FL) Pastor Udall (NM) Brown (FL) tion limits. Green (TX) McInnis Hefley Peterson (MN) Visclosky Brown (OH) Sec. 205. Repeal of coordination require- Green (WI) McIntyre Hilliard Ramstad Waters Brown (SC) ments for deferred compensa- Greenwood McKeon Hinchey Rothman Weller Bryant Grucci McKinney Hooley Sabo Wu tion plans of State and local Burr Gutierrez Meehan Hulshof Schaffer governments and tax-exempt Burton Gutknecht Meek (FL) organizations. Buyer Hall (OH) Menendez ANSWERED ‘‘PRESENT’’—1 Sec. 206. Elimination of user fee for requests Callahan Hall (TX) Mica Tancredo to IRS regarding pension plans. Calvert Hansen Millender- Sec. 207. Deduction limits. Camp Harman McDonald NOT VOTING—6 Cannon Hart Miller (FL) Sec. 208. Option to treat elective deferrals as Cantor Hastings (WA) Miller, Gary Hutchinson Johnson (CT) Moakley after-tax contributions. Jefferson Meeks (NY) Tiahrt Capito Hayes Mink TITLE III—ENHANCING FAIRNESS FOR Capps Hayworth Mollohan WOMEN Cardin Herger Moran (KS) b 1151 Carson (IN) Hill Moran (VA) So the Journal was approved. Sec. 301. Catch-up contributions for individ- Carson (OK) Hilleary Morella The result of the vote was announced uals age 50 or over. Castle Hinojosa Murtha Sec. 302. Equitable treatment for contribu- Chabot Hobson Myrick as above recorded. tions of employees to defined Chambliss Hoeffel Nadler A motion to reconsider was laid on contribution plans. Clay Hoekstra Napolitano the table. Sec. 303. Faster vesting of certain employer Clayton Holden Nethercutt Clement Holt Ney f matching contributions. Clyburn Honda Northup Sec. 304. Simplify and update the minimum Coble Horn Norwood PERSONAL EXPLANATION distribution rules. Collins Hostettler Nussle Mr. TIAHRT. Mr. Speaker, today, I was un- Sec. 305. Clarification of tax treatment of Combest Houghton Obey division of section 457 plan ben- Conyers Hoyer Olver avoidably detained and missed rollcall votes efits upon divorce. Cooksey Hunter Ortiz Nos. 92 and 93. Rollcall vote No. 92 was on Sec. 306. Modification of safe harbor relief Cox Hyde Osborne the rule for H.R. 10, ‘‘the Comprehensive Re- Coyne Inslee Ose for hardship withdrawals from Cramer Isakson Otter tirement Security and Pension Reform Act of cash or deferred arrangements. Crenshaw Israel Owens 2001. Rollcall vote No. 93 was on approving TITLE IV—INCREASING PORTABILITY Crowley Issa Oxley the Speaker’s approval of the Journal. Had I FOR PARTICIPANTS Cubin Istook Pascrell Culberson Jackson (IL) Paul been present, I would have voted ‘‘yea’’ on Sec. 401. Rollovers allowed among various Cummings Jackson-Lee Payne both the rule on H.R. 10 and on approving the types of plans. Cunningham (TX) Pelosi Journal. Sec. 402. Rollovers of IRAs into workplace Davis (CA) Jenkins Pence retirement plans. f Davis (FL) John Peterson (PA) Sec. 403. Rollovers of after-tax contribu- Davis (IL) Johnson (IL) Petri COMPREHENSIVE RETIREMENT SE- tions. Davis, Jo Ann Johnson, E.B. Phelps CURITY AND PENSION REFORM Sec. 404. Hardship exception to 60-day rule. Davis, Tom Johnson, Sam Pickering Sec. 405. Treatment of forms of distribution. Deal Jones (NC) Pitts ACT OF 2001 DeFazio Jones (OH) Platts Sec. 406. Rationalization of restrictions on DeGette Kanjorski Pombo Mr. THOMAS. Mr. Speaker, pursuant distributions. Delahunt Kaptur Pomeroy to House Resolution 127, I call up the Sec. 407. Purchase of service credit in gov- DeLauro Keller Portman bill (H.R. 10) to provide for pension re- ernmental defined benefit DeLay Kelly Price (NC) plans. DeMint Kennedy (RI) Pryce (OH) form, and for other purposes, and ask for its immediate consideration in the Sec. 408. Employers may disregard rollovers Deutsch Kerns Putnam for purposes of cash-out Diaz-Balart Kildee Quinn House. amounts. Dicks Kilpatrick Radanovich The Clerk read the title of the bill. Dingell Kind (WI) Rahall Sec. 409. Minimum distribution and inclu- Doggett King (NY) Rangel The SPEAKER pro tempore (Mr. sion requirements for section Dooley Kingston Regula BASS). Pursuant to House Resolution 457 plans.

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00014 Fmt 7634 Sfmt 0655 E:\CR\FM\A02MY7.003 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1749 TITLE V—STRENGTHENING PENSION ‘‘For taxable years The deductible (A) by striking ‘‘$90,000’’ in paragraph SECURITY AND ENFORCEMENT beginning in: amount is: (1)(A) and inserting ‘‘$160,000’’; and Sec. 501. Repeal of percent of current liabil- 2001 ...... $3,000 (B) in paragraph (3)(A)— ity funding limit. 2002 ...... $4,000 (i) by striking ‘‘$90,000’’ in the heading and Sec. 502. Maximum contribution deduction 2003 and thereafter ...... $5,000. inserting ‘‘$160,000’’; and rules modified and applied to ‘‘(B) CATCH-UP CONTRIBUTIONS FOR INDIVID- (ii) by striking ‘‘October 1, 1986’’ and in- all defined benefit plans. UALS 50 OR OLDER.—In the case of an indi- serting ‘‘July 1, 2000’’. Sec. 503. Excise tax relief for sound pension vidual who has attained the age of 50 before (5) CONFORMING AMENDMENTS.— funding. the close of the taxable year, the deductible (A) Section 415(b)(2) is amended by striking Sec. 504. Excise tax on failure to provide no- amount for taxable years beginning in 2001 subparagraph (F). tice by defined benefit plans or 2002 shall be $5,000. (B) Section 415(b)(9) is amended to read as significantly reducing future ‘‘(C) COST-OF-LIVING ADJUSTMENT.— follows: benefit accruals. ‘‘(i) IN GENERAL.—In the case of any tax- ‘‘(9) SPECIAL RULE FOR COMMERCIAL AIRLINE Sec. 505. Treatment of multiemployer plans able year beginning in a calendar year after PILOTS.— under section 415. 2003, the $5,000 amount under subparagraph ‘‘(A) IN GENERAL.—Except as provided in Sec. 506. Protection of investment of em- (A) shall be increased by an amount equal subparagraph (B), in the case of any partici- ployee contributions to 401(k) to— pant who is a commercial airline pilot, if, as plans. ‘‘(I) such dollar amount, multiplied by of the time of the participant’s retirement, Sec. 507. Periodic pension benefits state- ‘‘(II) the cost-of-living adjustment deter- regulations prescribed by the Federal Avia- ments. mined under section 1(f )(3) for the calendar tion Administration require an individual to Sec. 508. Prohibited allocations of stock in S year in which the taxable year begins, deter- separate from service as a commercial air- corporation ESOP. mined by substituting ‘calendar year 2002’ line pilot after attaining any age occurring TITLE VI—REDUCING REGULATORY for ‘calendar year 1992’ in subparagraph (B) on or after age 60 and before age 62, para- BURDENS thereof. graph (2)(C) shall be applied by substituting Sec. 601. Modification of timing of plan ‘‘(ii) ROUNDING RULES.—If any amount after such age for age 62. valuations. adjustment under clause (i) is not a multiple ‘‘(B) INDIVIDUALS WHO SEPARATE FROM Sec. 602. ESOP dividends may be reinvested of $500, such amount shall be rounded to the SERVICE BEFORE AGE 60.—If a participant de- without loss of dividend deduc- next lower multiple of $500.’’. scribed in subparagraph (A) separates from tion. (b) CONFORMING AMENDMENTS.— service before age 60, the rules of paragraph Sec. 603. Repeal of transition rule relating (1) Section 408(a)(1) is amended by striking (2)(C) shall apply.’’. to certain highly compensated ‘‘in excess of $2,000 on behalf of any indi- (C) Section 415(b)(10)(C)(i) is amended by employees. vidual’’ and inserting ‘‘on behalf of any indi- striking ‘‘applied without regard to para- Sec. 604. Employees of tax-exempt entities. vidual in excess of the amount in effect for graph (2)(F)’’. Sec. 605. Clarification of treatment of em- such taxable year under section 219(b)(1)(A)’’. (b) DEFINED CONTRIBUTION PLANS.— ployer-provided retirement ad- (2) Section 408(b)(2)(B) is amended by strik- (1) DOLLAR LIMIT.—Subparagraph (A) of vice. ing ‘‘$2,000’’ and inserting ‘‘the dollar section 415(c)(1) (relating to limitation for Sec. 606. Reporting simplification. amount in effect under section 219(b)(1)(A)’’. defined contribution plans) is amended by Sec. 607. Improvement of employee plans (3) Section 408(b) is amended by striking striking ‘‘$30,000’’ and inserting ‘‘$40,000’’. compliance resolution system. ‘‘$2,000’’ in the matter following paragraph (2) COST-OF-LIVING ADJUSTMENTS.—Sub- Sec. 608. Repeal of the multiple use test. (4) and inserting ‘‘the dollar amount in effect section (d) of section 415 (related to cost-of- Sec. 609. Flexibility in nondiscrimination, under section 219(b)(1)(A)’’. living adjustments) is amended— coverage, and line of business (4) Section 408( j) is amended by striking (A) by striking ‘‘$30,000’’ in paragraph rules. ‘‘$2,000’’. (1)(C) and inserting ‘‘$40,000’’; and Sec. 610. Extension to all governmental (5) Section 408(p)(8) is amended by striking (B) in paragraph (3)(D)— plans of moratorium on appli- ‘‘$2,000’’ and inserting ‘‘the dollar amount in (i) by striking ‘‘$30,000’’ in the heading and cation of certain non- effect under section 219(b)(1)(A)’’. inserting ‘‘$40,000’’; and discrimination rules applicable (c) EFFECTIVE DATE.—The amendments (ii) by striking ‘‘October 1, 1993’’ and in- to State and local plans. made by this section shall apply to taxable serting ‘‘July 1, 2000’’. Sec. 611. Notice and consent period regard- years beginning after December 31, 2000. ing distributions. (c) QUALIFIED TRUSTS.— Sec. 612. Annual report dissemination. TITLE II—EXPANDING COVERAGE (1) COMPENSATION LIMIT.—Sections Sec. 613. Technical corrections to SAVER SEC. 201. INCREASE IN BENEFIT AND CONTRIBU- 401(a)(17), 404(l), 408(k), and 505(b)(7) are each Act. TION LIMITS. amended by striking ‘‘$150,000’’ each place it TITLE VII—OTHER ERISA PROVISIONS (a) DEFINED BENEFIT PLANS.— appears and inserting ‘‘$200,000’’. (1) DOLLAR LIMIT.— (2) BASE PERIOD AND ROUNDING OF COST-OF- Sec. 701. Missing participants. (A) Subparagraph (A) of section 415(b)(1) LIVING ADJUSTMENT.—Subparagraph (B) of Sec. 702. Reduced PBGC premium for new (relating to limitation for defined benefit section 401(a)(17) is amended— plans of small employers. plans) is amended by striking ‘‘$90,000’’ and (A) by striking ‘‘October 1, 1993’’ and in- Sec. 703. Reduction of additional PBGC pre- inserting ‘‘$160,000’’. serting ‘‘July 1, 2000’’; and mium for new and small plans. (B) by striking ‘‘$10,000’’ both places it ap- Sec. 704. Authorization for PBGC to pay in- (B) Subparagraphs (C) and (D) of section pears and inserting ‘‘$5,000’’. terest on premium overpay- 415(b)(2) are each amended by striking ment refunds. ‘‘$90,000’’ each place it appears in the head- (d) ELECTIVE DEFERRALS.— Sec. 705. Substantial owner benefits in ter- ings and the text and inserting ‘‘$160,000’’. (1) IN GENERAL.—Paragraph (1) of section minated plans. (C) Paragraph (7) of section 415(b) (relating 402(g) (relating to limitation on exclusion for Sec. 706. Civil penalties for breach of fidu- to benefits under certain collectively bar- elective deferrals) is amended to read as fol- ciary responsibility. gained plans) is amended by striking ‘‘the lows: Sec. 707. Benefit suspension notice. greater of $68,212 or one-half the amount oth- ‘‘(1) IN GENERAL.— erwise applicable for such year under para- TITLE VIII—PLAN AMENDMENTS ‘‘(A) LIMITATION.—Notwithstanding sub- graph (1)(A) for ‘$90,000’’’ and inserting ‘‘one- sections (e)(3) and (h)(1)(B), the elective de- Sec. 801. Provisions relating to plan amend- half the amount otherwise applicable for ferrals of any individual for any taxable year ments. such year under paragraph (1)(A) for shall be included in such individual’s gross TITLE I—INDIVIDUAL RETIREMENT ‘$160,000’’’. income to the extent the amount of such de- ACCOUNTS (2) LIMIT REDUCED WHEN BENEFIT BEGINS BE- ferrals for the taxable year exceeds the ap- SEC. 101. MODIFICATION OF IRA CONTRIBUTION FORE AGE 62.—Subparagraph (C) of section plicable dollar amount. LIMITS. 415(b)(2) is amended by striking ‘‘the social ‘‘(B) APPLICABLE DOLLAR AMOUNT.—For (a) INCREASE IN CONTRIBUTION LIMIT.— security retirement age’’ each place it ap- purposes of subparagraph (A), the applicable (1) IN GENERAL.—Paragraph (1)(A) of sec- pears in the heading and text and inserting dollar amount shall be the amount deter- tion 219(b) (relating to maximum amount of ‘‘age 62’’ and by striking the second sen- mined in accordance with the following deduction) is amended by striking ‘‘$2,000’’ tence. table: and inserting ‘‘the deductible amount’’. (3) LIMIT INCREASED WHEN BENEFIT BEGINS ‘‘For taxable years The applicable (2) DEDUCTIBLE AMOUNT.—Section 219(b) is AFTER AGE 65.—Subparagraph (D) of section beginning in dollar amount: amended by adding at the end the following 415(b)(2) is amended by striking ‘‘the social new paragraph: security retirement age’’ each place it ap- calendar year: ‘‘(5) DEDUCTIBLE AMOUNT.—For purposes of pears in the heading and text and inserting 2001 ...... $11,000 paragraph (1)(A)— ‘‘age 65’’. 2002 ...... $12,000 ‘‘(A) IN GENERAL.—The deductible amount (4) COST-OF-LIVING ADJUSTMENTS.—Sub- 2003 ...... $13,000 shall be determined in accordance with the section (d) of section 415 (related to cost-of- 2004 ...... $14,000 following table: living adjustments) is amended— 2005 or thereafter ...... $15,000.’’.

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00015 Fmt 7634 Sfmt 0655 E:\CR\FM\A02MY7.008 pfrm02 PsN: H02PT1 H1750 CONGRESSIONAL RECORD — HOUSE May 2, 2001

(2) COST-OF-LIVING ADJUSTMENT.—Para- 2002 ...... $8,000 matching contributions (as defined in sec- graph (5) of section 402(g) is amended to read 2003 ...... $9,000 tion 401(m)(4)(A)) shall be taken into account as follows: 2004 or thereafter ...... $10,000. for purposes of this subparagraph.’’. ‘‘(5) COST-OF-LIVING ADJUSTMENT.—In the ‘‘(ii) COST-OF-LIVING ADJUSTMENT.—In the (c) DISTRIBUTIONS DURING LAST YEAR BE- case of taxable years beginning after Decem- case of a year beginning after December 31, FORE DETERMINATION DATE TAKEN INTO AC- ber 31, 2005, the Secretary shall adjust the 2004, the Secretary shall adjust the $10,000 COUNT.— $15,000 amount under paragraph (1)(B) at the amount under clause (i) at the same time (1) IN GENERAL.—Paragraph (3) of section same time and in the same manner as under and in the same manner as under section 416(g) is amended to read as follows: section 415(d), except that the base period 415(d), except that the base period taken into ‘‘(3) DISTRIBUTIONS DURING LAST YEAR BE- shall be the calendar quarter beginning July account shall be the calendar quarter begin- FORE DETERMINATION DATE TAKEN INTO AC- 1, 2004, and any increase under this para- ning July 1, 2003, and any increase under this COUNT.— graph which is not a multiple of $500 shall be subparagraph which is not a multiple of $500 ‘‘(A) IN GENERAL.—For purposes of deter- rounded to the next lowest multiple of shall be rounded to the next lower multiple mining— $500.’’. of $500.’’. ‘‘(i) the present value of the cumulative ac- (3) CONFORMING AMENDMENTS.— (3) CONFORMING AMENDMENTS.— crued benefit for any employee, or (A) Section 402(g) (relating to limitation (A) Subclause (I) of section 401(k)(11)(B)(i) ‘‘(ii) the amount of the account of any em- on exclusion for elective deferrals), as is amended by striking ‘‘$6,000’’ and inserting ployee, amended by paragraphs (1) and (2), is further ‘‘the amount in effect under section such present value or amount shall be in- amended by striking paragraph (4) and redes- 408(p)(2)(A)(ii)’’. creased by the aggregate distributions made ignating paragraphs (5), (6), (7), (8), and (9) as (B) Section 401(k)(11) is amended by strik- with respect to such employee under the paragraphs (4), (5), (6), (7), and (8), respec- ing subparagraph (E). plan during the 1-year period ending on the tively. (g) ROUNDING RULE RELATING TO DEFINED determination date. The preceding sentence (B) Paragraph (2) of section 457(c) is BENEFIT PLANS AND DEFINED CONTRIBUTION shall also apply to distributions under a ter- amended by striking ‘‘402(g)(8)(A)(iii)’’ and PLANS.—Paragraph (4) of section 415(d) is minated plan which if it had not been termi- inserting ‘‘402(g)(7)(A)(iii)’’. amended to read as follows: nated would have been required to be in- (C) Clause (iii) of section 501(c)(18)(D) is ‘‘(4) ROUNDING.— cluded in an aggregation group. amended by striking ‘‘(other than paragraph ‘‘(A) $160,000 AMOUNT.—Any increase under ‘‘(B) 5-YEAR PERIOD IN CASE OF IN-SERVICE (4) thereof)’’. subparagraph (A) of paragraph (1) which is DISTRIBUTION.—In the case of any distribu- (e) DEFERRED COMPENSATION PLANS OF not a multiple of $5,000 shall be rounded to tion made for a reason other than separation STATE AND LOCAL GOVERNMENTS AND TAX-EX- the next lowest multiple of $5,000. from service, death, or disability, subpara- EMPT ORGANIZATIONS.— ‘‘(B) $40,000 AMOUNT.—Any increase under graph (A) shall be applied by substituting ‘5- (1) IN GENERAL.—Section 457 (relating to subparagraph (C) of paragraph (1) which is year period’ for ‘1-year period’.’’. deferred compensation plans of State and not a multiple of $1,000 shall be rounded to (2) BENEFITS NOT TAKEN INTO ACCOUNT.— local governments and tax-exempt organiza- the next lowest multiple of $1,000.’’. Subparagraph (E) of section 416(g)(4) is tions) is amended— (h) EFFECTIVE DATE.—The amendments amended— (A) in subsections (b)(2)(A) and (c)(1) by made by this section shall apply to years be- (A) by striking ‘‘LAST 5 YEARS’’ in the head- striking ‘‘$7,500’’ each place it appears and ginning after December 31, 2000. ing and inserting ‘‘LAST YEAR BEFORE DETER- inserting ‘‘the applicable dollar amount’’; SEC. 202. PLAN LOANS FOR SUBCHAPTER S OWN- MINATION DATE’’; and and ERS, PARTNERS, AND SOLE PROPRI- (B) by striking ‘‘5-year period’’ and insert- (B) in subsection (b)(3)(A) by striking ETORS. ing ‘‘1-year period’’. ‘‘$15,000’’ and inserting ‘‘twice the dollar (a) AMENDMENT OF INTERNAL REVENUE (d) DEFINITION OF TOP-HEAVY PLANS.— amount in effect under subsection (b)(2)(A)’’. CODE.—Subparagraph (B) of section 4975(f)(6) Paragraph (4) of section 416(g) (relating to (2) APPLICABLE DOLLAR AMOUNT; COST-OF- (relating to exemptions not to apply to cer- other special rules for top-heavy plans) is LIVING ADJUSTMENT.—Paragraph (15) of sec- tain transactions) is amended by adding at amended by adding at the end the following tion 457(e) is amended to read as follows: the end the following new clause: new subparagraph: ‘‘(15) APPLICABLE DOLLAR AMOUNT.— ‘‘(iii) LOAN EXCEPTION.—For purposes of ‘‘(H) CASH OR DEFERRED ARRANGEMENTS ‘‘(A) IN GENERAL.—The applicable dollar subparagraph (A)(i), the term ‘owner-em- USING ALTERNATIVE METHODS OF MEETING NON- amount shall be the amount determined in ployee’ shall only include a person described DISCRIMINATION REQUIREMENTS.—The term accordance with the following table: in subclause (II) or (III) of clause (i).’’. ‘top-heavy plan’ shall not include a plan ‘‘For taxable years The applicable (b) AMENDMENT OF ERISA.—Section which consists solely of— beginning in dollar amount: 408(d)(2) of the Employee Retirement Income ‘‘(i) a cash or deferred arrangement which calendar year: Security Act of 1974 (29 U.S.C. 1108(d)(2)) is meets the requirements of section 401(k)(12), 2001 ...... $11,000 amended by adding at the end the following and 2002 ...... $12,000 new subparagraph: ‘‘(ii) matching contributions with respect 2003 ...... $13,000 ‘‘(C) For purposes of paragraph (1)(A), the to which the requirements of section 2004 ...... $14,000 term ‘owner-employee’ shall only include a 401(m)(11) are met. 2005 or thereafter ...... $15,000. person described in clause (ii) or (iii) of sub- If, but for this subparagraph, a plan would be ‘‘(B) COST-OF-LIVING ADJUSTMENTS.—In the paragraph (A).’’. treated as a top-heavy plan because it is a case of taxable years beginning after Decem- (c) EFFECTIVE DATE.—The amendments member of an aggregation group which is a ber 31, 2005, the Secretary shall adjust the made by this section shall apply to years be- top-heavy group, contributions under the $15,000 amount under subparagraph (A) at the ginning after December 31, 2001. plan may be taken into account in deter- same time and in the same manner as under SEC. 203. MODIFICATION OF TOP-HEAVY RULES. mining whether any other plan in the group section 415(d), except that the base period (a) SIMPLIFICATION OF DEFINITION OF KEY meets the requirements of subsection shall be the calendar quarter beginning July EMPLOYEE.— (c)(2).’’. 1, 2004, and any increase under this para- (1) IN GENERAL.—Section 416(i)(1)(A) (defin- (e) FROZEN PLAN EXEMPT FROM MINIMUM graph which is not a multiple of $500 shall be ing key employee) is amended— BENEFIT REQUIREMENT.—Subparagraph (C) of rounded to the next lowest multiple of (A) by striking ‘‘or any of the 4 preceding section 416(c)(1) (relating to defined benefit $500.’’. plan years’’ in the matter preceding clause plans) is amended— (f) SIMPLE RETIREMENT ACCOUNTS.— (i); (A) by striking ‘‘clause (ii)’’ in clause (i) (1) LIMITATION.—Clause (ii) of section (B) by striking clause (i) and inserting the and inserting ‘‘clause (ii) or (iii)’’; and 408(p)(2)(A) (relating to general rule for following: (B) by adding at the end the following: qualified salary reduction arrangement) is ‘‘(i) an officer of the employer having an ‘‘(iii) EXCEPTION FOR FROZEN PLAN.—For amended by striking ‘‘$6,000’’ and inserting annual compensation greater than $150,000,’’; purposes of determining an employee’s years ‘‘the applicable dollar amount’’. (C) by striking clause (ii) and redesig- of service with the employer, any service (2) APPLICABLE DOLLAR AMOUNT.—Subpara- nating clauses (iii) and (iv) as clauses (ii) and with the employer shall be disregarded to graph (E) of 408(p)(2) is amended to read as (iii), respectively; and the extent that such service occurs during a follows: (D) by striking the second sentence in the plan year when the plan benefits (within the ‘‘(E) APPLICABLE DOLLAR AMOUNT; COST-OF- matter following clause (iii), as redesignated meaning of section 410(b)) no key employee LIVING ADJUSTMENT.— by subparagraph (C). or former key employee.’’. ‘‘(i) IN GENERAL.—For purposes of subpara- (2) CONFORMING AMENDMENT.—Section (f) ELIMINATION OF FAMILY ATTRIBUTION.— graph (A)(ii), the applicable dollar amount 416(i)(1)(B)(iii) is amended by striking ‘‘and Section 416(i)(1)(B) (defining 5-percent shall be the amount determined in accord- subparagraph (A)(ii)’’. owner) is amended by adding at the end the ance with the following table: (b) MATCHING CONTRIBUTIONS TAKEN INTO following new clause: ‘‘For taxable years The applicable ACCOUNT FOR MINIMUM CONTRIBUTION RE- ‘‘(iv) FAMILY ATTRIBUTION DISREGARDED.— beginning in dollar amount: QUIREMENTS.—Section 416(c)(2)(A) (relating Solely for purposes of applying this para- calendar year: to defined contribution plans) is amended by graph (and not for purposes of any provision 2001 ...... $7,000 adding at the end the following: ‘‘Employer of this title which incorporates by reference

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the definition of a key employee or 5-percent tion of average fees charged, any request to ‘‘(1) DESIGNATED PLUS CONTRIBUTION.—The owner under this paragraph), section 318 which subsection (a) applies shall not be term ‘designated plus contribution’ means shall be applied without regard to subsection taken into account. any elective deferral which— (a)(1) thereof in determining whether any (e) EFFECTIVE DATE.—The provisions of ‘‘(A) is excludable from gross income of an person is a 5-percent owner.’’. this section shall apply with respect to re- employee without regard to this section, and (g) EFFECTIVE DATE.—The amendments quests made after December 31, 2001. ‘‘(B) the employee designates (at such time made by this section shall apply to years be- SEC. 207. DEDUCTION LIMITS. and in such manner as the Secretary may ginning after December 31, 2001. (a) STOCK BONUS AND PROFIT SHARING prescribe) as not being so excludable. SEC. 204. ELECTIVE DEFERRALS NOT TAKEN TRUSTS.— ‘‘(2) DESIGNATION LIMITS.—The amount of INTO ACCOUNT FOR PURPOSES OF (1) IN GENERAL.—Subclause (I) of section elective deferrals which an employee may DEDUCTION LIMITS. 404(a)(3)(A)(i) (relating to stock bonus and designate under paragraph (1) shall not ex- (a) IN GENERAL.—Section 404 (relating to profit sharing trusts) is amended by striking ceed the excess (if any) of— deduction for contributions of an employer ‘‘15 percent’’ and inserting ‘‘20 percent’’. to an employees’ trust or annuity plan and ‘‘(A) the maximum amount of elective de- (2) CONFORMING AMENDMENT.—Subpara- ferrals excludable from gross income of the compensation under a deferred payment graph (C) of section 404(h)(1) is amended by plan) is amended by adding at the end the employee for the taxable year (without re- striking ‘‘15 percent’’ each place it appears gard to this section), over following new subsection: and inserting ‘‘20 percent’’. ‘‘(B) the aggregate amount of elective de- ‘‘(n) ELECTIVE DEFERRALS NOT TAKEN INTO (b) COMPENSATION.— CCOUNT FOR URPOSES OF EDUCTION IM ferrals of the employee for the taxable year A P D L - (1) IN GENERAL.—Section 404(a) (relating to ITS.—Elective deferrals (as defined in section general rule) is amended by adding at the which the employee does not designate under 402(g)(3)) shall not be subject to any limita- end the following: paragraph (1). OLLOVER CONTRIBUTIONS tion contained in paragraph (3), (7), or (9) of ‘‘(12) DEFINITION OF COMPENSATION.—For ‘‘(3) R .— subsection (a), and such elective deferrals purposes of paragraphs (3), (7), (8), and (9), ‘‘(A) IN GENERAL.—A rollover contribution shall not be taken into account in applying the term ‘compensation otherwise paid or ac- of any payment or distribution from a des- any such limitation to any other contribu- crued during the taxable year’ shall include ignated plus account which is otherwise al- tions.’’. amounts treated as ‘participant’s compensa- lowable under this chapter may be made (b) EFFECTIVE DATE.—The amendment tion’ under subparagraph (C) or (D) of sec- only if the contribution is to— made by this section shall apply to years be- tion 415(c)(3).’’. ‘‘(i) another designated plus account of the ginning after December 31, 2001. (2) CONFORMING AMENDMENTS.— individual from whose account the payment SEC. 205. REPEAL OF COORDINATION REQUIRE- (A) Subparagraph (B) of section 404(a)(3) is or distribution was made, or MENTS FOR DEFERRED COMPENSA- ‘‘(ii) a Roth IRA of such individual. TION PLANS OF STATE AND LOCAL amended by striking the last sentence there- ‘‘(B) COORDINATION WITH LIMIT.—Any roll- GOVERNMENTS AND TAX-EXEMPT of. ORGANIZATIONS. (B) Clause (i) of section 4972(c)(6)(B) is over contribution to a designated plus ac- (a) IN GENERAL.—Subsection (c) of section amended by striking ‘‘(within the meaning of count under subparagraph (A) shall not be 457 (relating to deferred compensation plans section 404(a))’’ and inserting ‘‘(within the taken into account for purposes of paragraph of State and local governments and tax-ex- meaning of section 404(a) and as adjusted (1). empt organizations), as amended by section under section 404(a)(12))’’. ‘‘(d) DISTRIBUTION RULES.—For purposes of 201, is amended to read as follows: (c) EFFECTIVE DATE.—The amendments this title— made by this section shall apply to years be- ‘‘(c) LIMITATION.—The maximum amount of ‘‘(1) EXCLUSION.—Any qualified distribu- the compensation of any one individual ginning after December 31, 2001. tion from a designated plus account shall not which may be deferred under subsection (a) SEC. 208. OPTION TO TREAT ELECTIVE DEFER- be includible in gross income. during any taxable year shall not exceed the RALS AS AFTER-TAX CONTRIBU- TIONS. ‘‘(2) QUALIFIED DISTRIBUTION.—For purposes amount in effect under subsection (b)(2)(A) of this subsection— (as modified by any adjustment provided (a) IN GENERAL.—Subpart A of part I of subchapter D of chapter 1 (relating to de- ‘‘(A) IN GENERAL.—The term ‘qualified dis- under subsection (b)(3)).’’. tribution’ has the meaning given such term (b) EFFECTIVE DATE.—The amendment ferred compensation, etc.) is amended by in- by section 408A(d)(2)(A) (without regard to made by subsection (a) shall apply to years serting after section 402 the following new clause (iv) thereof). beginning after December 31, 2001. section: ‘‘(B) DISTRIBUTIONS WITHIN NONEXCLUSION SEC. 206. ELIMINATION OF USER FEE FOR RE- ‘‘SEC. 402A. OPTIONAL TREATMENT OF ELECTIVE QUESTS TO IRS REGARDING PEN- DEFERRALS AS PLUS CONTRIBU- PERIOD.—A payment or distribution from a SION PLANS. TIONS. designated plus account shall not be treated (a) ELIMINATION OF CERTAIN USER FEES.— ‘‘(a) GENERAL RULE.—If an applicable re- as a qualified distribution if such payment or The Secretary of the Treasury or the Sec- tirement plan includes a qualified plus con- distribution is made within the 5-taxable- retary’s delegate shall not require payment tribution program— year period beginning with the earlier of— of user fees under the program established ‘‘(1) any designated plus contribution made ‘‘(i) the first taxable year for which the in- under section 10511 of the Revenue Act of by an employee pursuant to the program dividual made a designated plus contribution 1987 for requests to the Internal Revenue shall be treated as an elective deferral for to any designated plus account established Service for determination letters with re- purposes of this chapter, except that such for such individual under the same applica- spect to the qualified status of a pension contribution shall not be excludable from ble retirement plan, or benefit plan maintained solely by one or gross income, and ‘‘(ii) if a rollover contribution was made to more eligible employers or any trust which ‘‘(2) such plan (and any arrangement which such designated plus account from a des- is part of the plan. The preceding sentence is part of such plan) shall not be treated as ignated plus account previously established shall not apply to any request— failing to meet any requirement of this chap- for such individual under another applicable (1) made after the later of— ter solely by reason of including such pro- retirement plan, the first taxable year for (A) the fifth plan year the pension benefit gram. which the individual made a designated plus plan is in existence; or ‘‘(b) QUALIFIED PLUS CONTRIBUTION PRO- contribution to such previously established (B) the end of any remedial amendment pe- GRAM.—For purposes of this section— account. riod with respect to the plan beginning with- ‘‘(1) IN GENERAL.—The term ‘qualified plus ‘‘(C) DISTRIBUTIONS OF EXCESS DEFERRALS in the first 5 plan years; or contribution program’ means a program AND EARNINGS.—The term ‘qualified distribu- (2) made by the sponsor of any prototype under which an employee may elect to make tion’ shall not include any distribution of or similar plan which the sponsor intends to designated plus contributions in lieu of all or any excess deferral under section 402(g)(2) market to participating employers. a portion of elective deferrals the employee and any income on the excess deferral. (b) PENSION BENEFIT PLAN.—For purposes is otherwise eligible to make under the ap- ‘‘(3) AGGREGATION RULES.—Section 72 shall of this section, the term ‘‘pension benefit plicable retirement plan. be applied separately with respect to dis- plan’’ means a pension, profit-sharing, stock ‘‘(2) SEPARATE ACCOUNTING REQUIRED.—A tributions and payments from a designated bonus, annuity, or employee stock ownership program shall not be treated as a qualified plus account and other distributions and plan. plus contribution program unless the appli- payments from the plan. (c) ELIGIBLE EMPLOYER.—For purposes of cable retirement plan— this section, the term ‘‘eligible employer’’ ‘‘(A) establishes separate accounts (‘des- ‘‘(e) OTHER DEFINITIONS.—For purposes of has the same meaning given such term in ignated plus accounts’) for the designated this section— section 408(p)(2)(C)(i)(I) of the Internal Rev- plus contributions of each employee and any ‘‘(1) APPLICABLE RETIREMENT PLAN.—The enue Code of 1986. The determination of earnings properly allocable to the contribu- term ‘applicable retirement plan’ means— whether an employer is an eligible employer tions, and ‘‘(A) an employees’ trust described in sec- under this section shall be made as of the ‘‘(B) maintains separate recordkeeping tion 401(a) which is exempt from tax under date of the request described in subsection with respect to each account. section 501(a), and (a). ‘‘(c) DEFINITIONS AND RULES RELATING TO ‘‘(B) a plan under which amounts are con- (d) DETERMINATION OF AVERAGE FEES DESIGNATED PLUS CONTRIBUTIONS.—For pur- tributed by an individual’s employer for an CHARGED.—For purposes of any determina- poses of this section— annuity contract described in section 403(b).

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‘‘(2) ELECTIVE DEFERRAL.—The term ‘elec- ‘‘(ii) any other elective deferrals of the (1) IN GENERAL.—Subparagraph (B) of sec- tive deferral’ means any elective deferral de- participant for such year which are made tion 415(c)(1) (relating to limitation for de- scribed in subparagraph (A) or (C) of section without regard to this subsection. fined contribution plans) is amended by 402(g)(3).’’. ‘‘(3) TREATMENT OF CONTRIBUTIONS.—In the striking ‘‘25 percent’’ and inserting ‘‘100 per- (b) EXCESS DEFERRALS.—Section 402(g) (re- case of any contribution to a plan under cent’’. lating to limitation on exclusion for elective paragraph (1), such contribution shall not, (2) APPLICATION TO SECTION 403(b).—Section deferrals) is amended— with respect to the year in which the con- 403(b) is amended— (1) by adding at the end of paragraph (1) tribution is made— (A) by striking ‘‘the exclusion allowance the following new sentence: ‘‘The preceding ‘‘(A) be subject to any otherwise applicable for such taxable year’’ in paragraph (1) and sentence shall not apply to so much of such limitation contained in section 402(g), inserting ‘‘the applicable limit under section excess as does not exceed the designated plus 402(h)(2), 404(a), 404(h), 408(p)(2)(A)(ii), 415, or 415’’; contributions of the individual for the tax- 457, or (B) by striking paragraph (2); and able year.’’; and ‘‘(B) be taken into account in applying (C) by inserting ‘‘or any amount received (2) by inserting ‘‘(or would be included but such limitations to other contributions or by a former employee after the fifth taxable for the last sentence thereof)’’ after ‘‘para- benefits under such plan or any other such year following the taxable year in which graph (1)’’ in paragraph (2)(A). plan. such employee was terminated’’ before the (c) ROLLOVERS.—Subparagraph (B) of sec- ‘‘(4) APPLICATION OF NONDISCRIMINATION period at the end of the second sentence of tion 402(c)(8) is amended by adding at the end RULES.— paragraph (3). the following: ‘‘(A) IN GENERAL.—An applicable employer (3) CONFORMING AMENDMENTS.— ‘‘If any portion of an eligible rollover dis- plan shall not be treated as failing to meet (A) Subsection (f) of section 72 is amended tribution is attributable to payments or dis- the nondiscrimination requirements under by striking ‘‘section 403(b)(2)(D)(iii))’’ and in- tributions from a designated plus account (as section 401(a)(4) with respect to benefits, serting ‘‘section 403(b)(2)(D)(iii), as in effect defined in section 402A), an eligible retire- rights, and features if the plan allows all eli- before the enactment of the Comprehensive ment plan with respect to such portion shall gible participants to make the same election Retirement Security and Pension Reform include only another designated plus account with respect to the additional elective defer- Act of 2001)’’. and a Roth IRA.’’. rals under this subsection. (B) Section 404(a)(10)(B) is amended by (d) REPORTING REQUIREMENTS.— ‘‘(B) AGGREGATION.—For purposes of sub- striking ‘‘, the exclusion allowance under (1) W–2 INFORMATION.—Section 6051(a)(8) is paragraph (A), all plans maintained by em- section 403(b)(2),’’. amended by inserting ‘‘, including the ployers who are treated as a single employer (C) Section 415(a)(2) is amended by striking amount of designated plus contributions (as under subsection (b), (c), (m), or (o) of sec- ‘‘, and the amount of the contribution for defined in section 402A)’’ before the comma tion 414 shall be treated as 1 plan. such portion shall reduce the exclusion al- at the end. ‘‘(5) ELIGIBLE PARTICIPANT.—For purposes lowance as provided in section 403(b)(2)’’. (2) INFORMATION.—Section 6047 is amended of this subsection, the term ‘eligible partici- (D) Section 415(c)(3) is amended by adding by redesignating subsection (f) as subsection pant’ means, with respect to any plan year, at the end the following new subparagraph: (g) and by inserting after subsection (e) the a participant in a plan— ‘‘(E) ANNUITY CONTRACTS.—In the case of following new subsection: ‘‘(A) who has attained the age of 50 before an annuity contract described in section ‘‘(f) DESIGNATED PLUS CONTRIBUTIONS.—The the close of the plan year, and 403(b), the term ‘participant’s compensation’ Secretary shall require the plan adminis- ‘‘(B) with respect to whom no other elec- means the participant’s includible com- trator of each applicable retirement plan (as tive deferrals may (without regard to this pensation determined under section defined in section 402A) to make such re- subsection) be made to the plan for the plan 403(b)(3).’’. turns and reports regarding designated plus year by reason of the application of any limi- (E) Section 415(c) is amended by striking contributions (as so defined) to the Sec- tation or other restriction described in para- paragraph (4). retary, participants and beneficiaries of the graph (3) or comparable limitation contained (F) Section 415(c)(7) is amended to read as plan, and such other persons as the Sec- in the terms of the plan. follows: retary may prescribe.’’. ‘‘(6) OTHER DEFINITIONS AND RULES.—For ‘‘(7) CERTAIN CONTRIBUTIONS BY CHURCH (e) CONFORMING AMENDMENTS.— purposes of this subsection— PLANS NOT TREATED AS EXCEEDING LIMIT.— (1) Section 408A(e) is amended by adding ‘‘(A) APPLICABLE EMPLOYER PLAN.—The ‘‘(A) IN GENERAL.—Notwithstanding any after the first sentence the following new term ‘applicable employer plan’ means— other provision of this subsection, at the sentence: ‘‘Such term includes a rollover ‘‘(i) an employees’ trust described in sec- election of a participant who is an employee contribution described in section tion 401(a) which is exempt from tax under of a church or a convention or association of 402A(c)(3)(A).’’. section 501(a), churches, including an organization de- (2) The table of sections for subpart A of ‘‘(ii) a plan under which amounts are con- scribed in section 414(e)(3)(B)(ii), contribu- part I of subchapter D of chapter 1 is amend- tributed by an individual’s employer for an tions and other additions for an annuity con- ed by inserting after the item relating to annuity contract described in section 403(b), tract or retirement income account de- section 402 the following new item: ‘‘(iii) an eligible deferred compensation scribed in section 403(b) with respect to such plan under section 457 of an eligible em- ‘‘Sec. 402A. Optional treatment of elective participant, when expressed as an annual ad- ployer as defined in section 457(e)(1)(A), and deferrals as plus contribu- dition to such participant’s account, shall be ‘‘(iv) an arrangement meeting the require- tions.’’. treated as not exceeding the limitation of ments of section 408 (k) or (p). paragraph (1) if such annual addition is not (f) EFFECTIVE DATE.—The amendments ‘‘(B) ELECTIVE DEFERRAL.—The term ‘elec- in excess of $10,000. made by this section shall apply to taxable tive deferral’ has the meaning given such ‘‘(B) $40,000 AGGREGATE LIMITATION.—The years beginning after December 31, 2001. term by subsection (u)(2)(C). total amount of additions with respect to TITLE III—ENHANCING FAIRNESS FOR ‘‘(C) EXCEPTION FOR SECTION 457 PLANS.— any participant which may be taken into ac- WOMEN This subsection shall not apply to an appli- count for purposes of this subparagraph for SEC. 301. CATCH-UP CONTRIBUTIONS FOR INDI- cable employer plan described in subpara- all years may not exceed $40,000. VIDUALS AGE 50 OR OVER. graph (A)(iii) for any year to which section ‘‘(C) ANNUAL ADDITION.—For purposes of (a) IN GENERAL.—Section 414 (relating to 457(b)(3) applies. this paragraph, the term ‘annual addition’ definitions and special rules) is amended by ‘‘(D) COST-OF-LIVING ADJUSTMENT.—In the has the meaning given such term by para- adding at the end the following new sub- case of a year beginning after December 31, graph (2).’’. section: 2005, the Secretary shall adjust annually the (G) Subparagraph (B) of section 402(g)(7) ‘‘(v) CATCH-UP CONTRIBUTIONS FOR INDIVID- $5,000 amount in paragraph (2)(A) for in- (as redesignated by section 201) is amended UALS AGE 50 OR OVER.— creases in the cost-of-living at the same time by inserting before the period at the end the ‘‘(1) IN GENERAL.—An applicable employer and in the same manner as adjustments following: ‘‘(as in effect before the enact- plan shall not be treated as failing to meet under section 415(d); except that the base pe- ment of the Comprehensive Retirement Se- any requirement of this title solely because riod taken into account shall be the calendar curity and Pension Reform Act of 2001)’’. the plan permits an eligible participant to quarter beginning July 1, 2004, and any in- (H) Section 664(g) is amended— make additional elective deferrals in any crease under this subparagraph which is not (i) in paragraph (3)(E) by striking ‘‘limita- plan year. a multiple of $500 shall be rounded to the tions under section 415(c)’’ and inserting ‘‘ap- ‘‘(2) LIMITATION ON AMOUNT OF ADDITIONAL next lower multiple of $500.’’. plicable limitation under paragraph (7)’’, and DEFERRALS.—A plan shall not permit addi- (b) EFFECTIVE DATE.—The amendment (ii) by adding at the end the following new tional elective deferrals under paragraph (1) made by this section shall apply to contribu- paragraph: for any year in an amount greater than the tions in taxable years beginning after De- ‘‘(7) APPLICABLE LIMITATION.— lesser of— cember 31, 2000. ‘‘(A) IN GENERAL.—For purposes of para- ‘‘(A) $5,000, or SEC. 302. EQUITABLE TREATMENT FOR CON- graph (3)(E), the applicable limitation under ‘‘(B) the excess (if any) of— TRIBUTIONS OF EMPLOYEES TO DE- this paragraph with respect to a participant ‘‘(i) the participant’s compensation for the FINED CONTRIBUTION PLANS. is an amount equal to the lesser of— year, over (a) EQUITABLE TREATMENT.— ‘‘(i) $30,000, or

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00018 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.008 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1753 ‘‘(ii) 25 percent of the participant’s com- ‘‘(B) by substituting the following table for the opportunity to choose a new designated pensation (as defined in section 415(c)(3)). the table contained in subparagraph (B): beneficiary and to elect a new method of cal- ‘‘(B) COST-OF-LIVING ADJUSTMENT.—The The nonforfeitable culating life expectancy. Secretary shall adjust annually the $30,000 ‘‘Years of service: percentage is: (3) DATE FOR REGULATIONS.—Not later than amount under subparagraph (A)(i) at the 2 ...... 20 December 31, 2002, the Secretary shall issue same time and in the same manner as under 3 ...... 40 final regulations described in paragraph (1) section 415(d), except that the base period 4 ...... 60 and such regulations shall apply without re- shall be the calendar quarter beginning Octo- 5 ...... 80 gard to whether an individual had previously ber 1, 1993, and any increase under this sub- 6 ...... 100.’’. begun receiving minimum distributions. paragraph which is not a multiple of $5,000 (b) AMENDMENT OF ERISA.—Section 203(a) (b) REPEAL OF RULE WHERE DISTRIBUTIONS shall be rounded to the next lowest multiple of the Employee Retirement Income Secu- HAD BEGUN BEFORE DEATH OCCURS.— of $5,000.’’. rity Act of 1974 (29 U.S.C. 1053(a)) is amend- (1) IN GENERAL.—Subparagraph (B) of sec- (3) EFFECTIVE DATE.—The amendments ed— tion 401(a)(9) is amended by striking clause made by this subsection shall apply to years (1) in paragraph (2), by striking ‘‘A plan’’ (i) and redesignating clauses (ii), (iii), and beginning after December 31, 2000. and inserting ‘‘Except as provided in para- (iv) as clauses (i), (ii), and (iii), respectively. (b) SPECIAL RULES FOR SECTIONS 403(b) AND graph (4), a plan’’, and (2) CONFORMING CHANGES.— 408.— (2) by adding at the end the following: (A) Clause (i) of section 401(a)(9)(B) (as so (1) IN GENERAL.—Subsection (k) of section ‘‘(4) In the case of matching contributions redesignated) is amended— 415 is amended by adding at the end the fol- (as defined in section 401(m)(4)(A) of the In- (i) by striking ‘‘FOR OTHER CASES’’ in the lowing new paragraph: ternal Revenue Code of 1986), paragraph (2) heading; and ‘‘(4) SPECIAL RULES FOR SECTIONS 403(b) AND shall be applied— (ii) by striking ‘‘the distribution of the em- 408.—For purposes of this section, any annu- ‘‘(A) by substituting ‘3 years’ for ‘5 years’ ployee’s interest has begun in accordance ity contract described in section 403(b) for in subparagraph (A), and with subparagraph (A)(ii)’’ and inserting ‘‘his the benefit of a participant shall be treated ‘‘(B) by substituting the following table for entire interest has been distributed to him’’. as a defined contribution plan maintained by the table contained in subparagraph (B): (B) Clause (ii) of section 401(a)(9)(B) (as so each employer with respect to which the par- The nonforfeitable redesignated) is amended by striking ‘‘clause ticipant has the control required under sub- ‘‘Years of service: percentage is: (ii)’’ and inserting ‘‘clause (i)’’. section (b) or (c) of section 414 (as modified 2 ...... 20 (C) Clause (iii) of section 401(a)(9)(B) (as so by subsection (h)). For purposes of this sec- 3 ...... 40 redesignated) is amended— tion, any contribution by an employer to a 4 ...... 60 (i) by striking ‘‘clause (iii)(I)’’ and insert- simplified employee pension plan for an indi- 5 ...... 80 ing ‘‘clause (ii)(I)’’; vidual for a taxable year shall be treated as 6 ...... 100.’’. (ii) by striking ‘‘clause (iii)(III)’’ in sub- an employer contribution to a defined con- (c) EFFECTIVE DATES.— clause (I) and inserting ‘‘clause (ii)(III)’’; tribution plan for such individual for such (1) IN GENERAL.—Except as provided in (iii) by striking ‘‘the date on which the em- year.’’. paragraph (2), the amendments made by this ployee would have attained age 701⁄2,’’ in sub- (2) EFFECTIVE DATE.— section shall apply to contributions for plan clause (I) and inserting ‘‘April 1 of the cal- (A) IN GENERAL.—The amendment made by years beginning after December 31, 2001. endar year following the calendar year in paragraph (1) shall apply to limitation years (2) COLLECTIVE BARGAINING AGREEMENTS.— which the spouse attains 701⁄2,’’; and beginning after December 31, 1999. In the case of a plan maintained pursuant to (iv) by striking ‘‘the distributions to such (B) EXCLUSION ALLOWANCE.—Effective for one or more collective bargaining agree- spouse begin,’’ in subclause (II) and inserting limitation years beginning in 2000, in the ments between employee representatives and ‘‘his entire interest has been distributed to case of any annuity contract described in one or more employers ratified by the date of him,’’. section 403(b) of the Internal Revenue Code the enactment of this Act, the amendments (3) EFFECTIVE DATE.— of 1986, the amount of the contribution dis- made by this section shall not apply to con- (A) IN GENERAL.—Except as provided in qualified by reason of section 415(g) of such tributions on behalf of employees covered by subparagraph (B), the amendments made by Code shall reduce the exclusion allowance as any such agreement for plan years beginning this subsection shall apply to years begin- provided in section 403(b)(2) of such Code. before the earlier of— ning after December 31, 2001. (3) MODIFICATION OF 403(b) EXCLUSION AL- (A) the later of— (B) DISTRIBUTIONS TO SURVIVING SPOUSE.— LOWANCE TO CONFORM TO 415 MODIFICATION.— (i) the date on which the last of such col- (i) IN GENERAL.—In the case of an employee The Secretary of the Treasury shall modify lective bargaining agreements terminates described in clause (ii), distributions to the the regulations regarding the exclusion al- (determined without regard to any extension surviving spouse of the employee shall not be lowance under section 403(b)(2) of the Inter- thereof on or after such date of the enact- required to commence prior to the date on nal Revenue Code of 1986 to render void the ment); or which such distributions would have been re- requirement that contributions to a defined (ii) January 1, 2002; or quired to begin under section 401(a)(9)(B) of benefit pension plan be treated as previously (B) January 1, 2006. the Internal Revenue Code of 1986 (as in ef- excluded amounts for purposes of the exclu- (3) SERVICE REQUIRED.—With respect to any fect on the day before the date of the enact- sion allowance. For taxable years beginning plan, the amendments made by this section ment of this Act). after December 31, 1999, such regulations shall not apply to any employee before the (ii) CERTAIN EMPLOYEES.—An employee is shall be applied as if such requirement were date that such employee has 1 hour of serv- described in this clause if such employee dies void. ice under such plan in any plan year to before— (c) DEFERRED COMPENSATION PLANS OF which the amendments made by this section (I) the date of the enactment of this Act, STATE AND LOCAL GOVERNMENTS AND TAX-EX- apply. and EMPT ORGANIZATIONS.— SEC. 304. SIMPLIFY AND UPDATE THE MINIMUM (II) the required beginning date (within the (1) IN GENERAL.—Subparagraph (B) of sec- DISTRIBUTION RULES. meaning of section 401(a)(9)(C) of the Inter- tion 457(b)(2) (relating to salary limitation (a) SIMPLIFICATION AND FINALIZATION OF nal Revenue Code of 1986) of the employee. on eligible deferred compensation plans) is MINIMUM DISTRIBUTION REQUIREMENTS.— (c) REDUCTION IN EXCISE TAX.— amended by striking ‘‘331⁄3 percent’’ and in- (1) IN GENERAL.—The Secretary of the (1) IN GENERAL.—Subsection (a) of section serting ‘‘100 percent’’. Treasury shall— 4974 is amended by striking ‘‘50 percent’’ and (2) EFFECTIVE DATE.—The amendment (A) simplify and finalize the regulations inserting ‘‘10 percent’’. made by this subsection shall apply to years relating to minimum distribution require- (2) EFFECTIVE DATE.—The amendment beginning after December 31, 2000. ments under sections 401(a)(9), 408(a)(6) and made by this subsection shall apply to years SEC. 303. FASTER VESTING OF CERTAIN EM- (b)(3), 403(b)(10), and 457(d)(2) of the Internal beginning after December 31, 2001. PLOYER MATCHING CONTRIBU- Revenue Code of 1986; and SEC. 305. CLARIFICATION OF TAX TREATMENT OF TIONS. (B) modify such regulations to— DIVISION OF SECTION 457 PLAN BEN- (a) AMENDMENT OF INTERNAL REVENUE (i) reflect current life expectancy; and EFITS UPON DIVORCE. CODE.—Section 411(a) (relating to minimum (ii) revise the required distribution meth- (a) IN GENERAL.—Section 414(p)(11) (relat- vesting standards) is amended— ods so that, under reasonable assumptions, ing to application of rules to governmental (1) in paragraph (2), by striking ‘‘A plan’’ the amount of the required minimum dis- and church plans) is amended— and inserting ‘‘Except as provided in para- tribution does not decrease over a partici- (1) by inserting ‘‘or an eligible deferred graph (12), a plan’’; and pant’s life expectancy. compensation plan (within the meaning of (2) by adding at the end the following: (2) FRESH START.—Notwithstanding sub- section 457(b))’’ after ‘‘subsection (e))’’; and ‘‘(12) FASTER VESTING FOR MATCHING CON- paragraph (D) of section 401(a)(9) of such (2) in the heading, by striking ‘‘GOVERN- TRIBUTIONS.—In the case of matching con- Code, during the first year that regulations MENTAL AND CHURCH PLANS’’ and inserting tributions (as defined in section are in effect under this subsection, required ‘‘CERTAIN OTHER PLANS’’. 401(m)(4)(A)), paragraph (2) shall be applied— distributions for future years may be rede- (b) WAIVER OF CERTAIN DISTRIBUTION RE- ‘‘(A) by substituting ‘3 years’ for ‘5 years’ termined to reflect changes under such regu- QUIREMENTS.—Paragraph (10) of section 414(p) in subparagraph (A), and lations. Such redetermination shall include is amended by striking ‘‘and section 409(d)’’

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00019 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.008 pfrm02 PsN: H02PT1 H1754 CONGRESSIONAL RECORD — HOUSE May 2, 2001 and inserting ‘‘section 409(d), and section ‘‘(C) in the case of a plan maintained by an ‘‘(vi) an annuity contract described in sec- 457(d)’’. employer described in subsection (e)(1)(A), tion 403(b).’’. (c) TAX TREATMENT OF PAYMENTS FROM A the plan meets requirements similar to the (c) EXPANDED EXPLANATION TO RECIPIENTS SECTION 457 PLAN.—Subsection (p) of section requirements of section 401(a)(31). OF ROLLOVER DISTRIBUTIONS.—Paragraph (1) 414 is amended by redesignating paragraph Any amount transferred in a direct trustee- of section 402(f) (relating to written expla- (12) as paragraph (13) and inserting after to-trustee transfer in accordance with sec- nation to recipients of distributions eligible paragraph (11) the following new paragraph: for rollover treatment) is amended by strik- tion 401(a)(31) shall not be includible in gross ‘‘(12) TAX TREATMENT OF PAYMENTS FROM A ing ‘‘and’’ at the end of subparagraph (C), by income for the taxable year of transfer.’’. SECTION 457 PLAN.—If a distribution or pay- striking the period at the end of subpara- (D) WITHHOLDING.— ment from an eligible deferred compensation graph (D) and inserting ‘‘, and’’, and by add- (i) Paragraph (12) of section 3401(a) is plan described in section 457(b) is made pur- ing at the end the following new subpara- amended by adding at the end the following: suant to a qualified domestic relations order, graph: ‘‘(E) under or to an eligible deferred com- rules similar to the rules of section ‘‘(E) of the provisions under which dis- pensation plan which, at the time of such 402(e)(1)(A) shall apply to such distribution tributions from the eligible retirement plan payment, is a plan described in section 457(b) or payment.’’. receiving the distribution may be subject to maintained by an employer described in sec- (d) EFFECTIVE DATE.—The amendments restrictions and tax consequences which are tion 457(e)(1)(A); or’’. made by this section shall apply to transfers, different from those applicable to distribu- (ii) Paragraph (3) of section 3405(c) is distributions, and payments made after De- tions from the plan making such distribu- amended to read as follows: cember 31, 2001. tion.’’. SEC. 306. MODIFICATION OF SAFE HARBOR RE- ‘‘(3) ELIGIBLE ROLLOVER DISTRIBUTION.—For (d) SPOUSAL ROLLOVERS.—Section 402(c)(9) LIEF FOR HARDSHIP WITHDRAWALS purposes of this subsection, the term ‘eligi- (relating to rollover where spouse receives FROM CASH OR DEFERRED AR- ble rollover distribution’ has the meaning distribution after death of employee) is RANGEMENTS. given such term by section 402(f)(2)(A).’’. amended by striking ‘‘; except that’’ and all (a) IN GENERAL.—The Secretary of the (iii) LIABILITY FOR WITHHOLDING.—Subpara- that follows up to the end period. Treasury shall revise the regulations relat- graph (B) of section 3405(d)(2) is amended by (e) CONFORMING AMENDMENTS.— ing to hardship distributions under section striking ‘‘or’’ at the end of clause (ii), by (1) Section 72(o)(4) is amended by striking 401(k)(2)(B)(i)(IV) of the Internal Revenue striking the period at the end of clause (iii) ‘‘and 408(d)(3)’’ and inserting ‘‘403(b)(8), Code of 1986 to provide that the period an and inserting ‘‘, or’’, and by adding at the 408(d)(3), and 457(e)(16)’’. employee is prohibited from making elective end the following: (2) Section 219(d)(2) is amended by striking and employee contributions in order for a ‘‘(iv) section 457(b) and which is main- ‘‘or 408(d)(3)’’ and inserting ‘‘408(d)(3), or distribution to be deemed necessary to sat- tained by an eligible employer described in 457(e)(16)’’. isfy financial need shall be equal to 6 section 457(e)(1)(A).’’. (3) Section 401(a)(31)(B) is amended by months. (2) ROLLOVERS TO SECTION 457 PLANS.— striking ‘‘and 403(a)(4)’’ and inserting ‘‘, (b) EFFECTIVE DATE.—The revised regula- (A) IN GENERAL.—Section 402(c)(8)(B) (de- 403(a)(4), 403(b)(8), and 457(e)(16)’’. tions under subsection (a) shall apply to fining eligible retirement plan) is amended years beginning after December 31, 2001. (4) Subparagraph (A) of section 402(f)(2) is by striking ‘‘and’’ at the end of clause (iii), amended by striking ‘‘or paragraph (4) of sec- TITLE IV—INCREASING PORTABILITY FOR by striking the period at the end of clause tion 403(a)’’ and inserting ‘‘, paragraph (4) of PARTICIPANTS (iv) and inserting ‘‘, and’’, and by inserting section 403(a), subparagraph (A) of section SEC. 401. ROLLOVERS ALLOWED AMONG VAR- after clause (iv) the following new clause: 403(b)(8), or subparagraph (A) of section IOUS TYPES OF PLANS. ‘‘(v) an eligible deferred compensation plan 457(e)(16)’’. (a) ROLLOVERS FROM AND TO SECTION 457 described in section 457(b) which is main- (5) Paragraph (1) of section 402(f) is amend- PLANS.— tained by an eligible employer described in ed by striking ‘‘from an eligible retirement (1) ROLLOVERS FROM SECTION 457 PLANS.— section 457(e)(1)(A).’’. plan’’. (A) IN GENERAL.—Section 457(e) (relating to (B) SEPARATE ACCOUNTING.—Section 402(c) (6) Subparagraphs (A) and (B) of section other definitions and special rules) is amend- is amended by adding at the end the fol- 402(f)(1) are amended by striking ‘‘another ed by adding at the end the following: lowing new paragraph: eligible retirement plan’’ and inserting ‘‘an ‘‘(16) ROLLOVER AMOUNTS.— ‘‘(11) SEPARATE ACCOUNTING.—Unless a plan eligible retirement plan’’. ‘‘(A) GENERAL RULE.—In the case of an eli- described in clause (v) of paragraph (8)(B) (7) Subparagraph (B) of section 403(b)(8) is gible deferred compensation plan established agrees to separately account for amounts amended to read as follows: and maintained by an employer described in rolled into such plan from eligible retire- ‘‘(B) CERTAIN RULES MADE APPLICABLE.— subsection (e)(1)(A), if— ment plans not described in such clause, the The rules of paragraphs (2) through (7) and ‘‘(i) any portion of the balance to the cred- plan described in such clause may not accept (9) of section 402(c) and section 402(f) shall it of an employee in such plan is paid to such transfers or rollovers from such retirement apply for purposes of subparagraph (A), ex- employee in an eligible rollover distribution plans.’’. cept that section 402(f) shall be applied to (within the meaning of section 402(c)(4) with- (C) 10 PERCENT ADDITIONAL TAX.—Sub- the payor in lieu of the plan administrator.’’. out regard to subparagraph (C) thereof), section (t) of section 72 (relating to 10-per- (8) Section 408(a)(1) is amended by striking ‘‘(ii) the employee transfers any portion of cent additional tax on early distributions ‘‘or 403(b)(8),’’ and inserting ‘‘403(b)(8), or the property such employee receives in such from qualified retirement plans) is amended 457(e)(16)’’. distribution to an eligible retirement plan by adding at the end the following new para- (9) Subparagraphs (A) and (B) of section described in section 402(c)(8)(B), and graph: 415(b)(2) are each amended by striking ‘‘and ‘‘(iii) in the case of a distribution of prop- ‘‘(9) SPECIAL RULE FOR ROLLOVERS TO SEC- 408(d)(3)’’ and inserting ‘‘403(b)(8), 408(d)(3), erty other than money, the amount so trans- TION 457 PLANS.—For purposes of this sub- and 457(e)(16)’’. ferred consists of the property distributed, section, a distribution from an eligible de- (10) Section 415(c)(2) is amended by strik- then such distribution (to the extent so ferred compensation plan (as defined in sec- ing ‘‘and 408(d)(3)’’ and inserting ‘‘408(d)(3), transferred) shall not be includible in gross tion 457(b)) of an eligible employer described and 457(e)(16)’’. income for the taxable year in which paid. in section 457(e)(1)(A) shall be treated as a (11) Section 4973(b)(1)(A) is amended by ‘‘(B) CERTAIN RULES MADE APPLICABLE.— distribution from a qualified retirement plan striking ‘‘or 408(d)(3)’’ and inserting The rules of paragraphs (2) through (7) (other described in 4974(c)(1) to the extent that such ‘‘408(d)(3), or 457(e)(16)’’. than paragraph (4)(C)) and (9) of section distribution is attributable to an amount (f) EFFECTIVE DATE; SPECIAL RULE.— 402(c) and section 402(f) shall apply for pur- transferred to an eligible deferred compensa- (1) EFFECTIVE DATE.—The amendments poses of subparagraph (A). tion plan from a qualified retirement plan made by this section shall apply to distribu- ‘‘(C) REPORTING.—Rollovers under this (as defined in section 4974(c)).’’. tions after the date of the enactment of this paragraph shall be reported to the Secretary (b) ALLOWANCE OF ROLLOVERS FROM AND TO Act. in the same manner as rollovers from quali- 403(b) PLANS.— (2) SPECIAL RULE.—Notwithstanding any fied retirement plans (as defined in section (1) ROLLOVERS FROM SECTION 403(b) PLANS.— other provision of law, subsections (h)(3) and 4974(c)).’’. Section 403(b)(8)(A)(ii) (relating to rollover (h)(5) of section 1122 of the Tax Reform Act (B) DEFERRAL LIMIT DETERMINED WITHOUT amounts) is amended by striking ‘‘such dis- of 1986 shall not apply to any distribution REGARD TO ROLLOVER AMOUNTS.—Section tribution’’ and all that follows and inserting from an eligible retirement plan (as defined 457(b)(2) (defining eligible deferred com- ‘‘such distribution to an eligible retirement in clause (iii) or (iv) of section 402(c)(8)(B) of pensation plan) is amended by inserting plan described in section 402(c)(8)(B), and’’. the Internal Revenue Code of 1986) on behalf ‘‘(other than rollover amounts)’’ after ‘‘tax- (2) ROLLOVERS TO SECTION 403(b) PLANS.— of an individual if there was a rollover to able year’’. Section 402(c)(8)(B) (defining eligible retire- such plan on behalf of such individual which (C) DIRECT ROLLOVER.—Paragraph (1) of ment plan), as amended by subsection (a), is is permitted solely by reason of any amend- section 457(d) is amended by striking ‘‘and’’ amended by striking ‘‘and’’ at the end of ment made by this section. at the end of subparagraph (A), by striking clause (iv), by striking the period at the end SEC. 402. ROLLOVERS OF IRAS INTO WORKPLACE the period at the end of subparagraph (B) and of clause (v) and inserting ‘‘, and’’, and by in- RETIREMENT PLANS. inserting ‘‘, and’’, and by inserting after sub- serting after clause (v) the following new (a) IN GENERAL.—Subparagraph (A) of sec- paragraph (B) the following: clause: tion 408(d)(3) (relating to rollover amounts)

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00020 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.009 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1755

is amended by adding ‘‘or’’ at the end of (c) RULES FOR APPLYING SECTION 72 TO ing to meet the requirements of this sub- clause (i), by striking clauses (ii) and (iii), IRAS.—Paragraph (3) of section 408(d) (relat- section merely because the transferee plan and by adding at the end the following: ing to special rules for applying section 72) is does not provide some or all of the forms of ‘‘(ii) the entire amount received (including amended by inserting at the end the fol- distribution previously available under an- money and any other property) is paid into lowing: other defined contribution plan (in this sub- an eligible retirement plan for the benefit of ‘‘(H) APPLICATION OF SECTION 72.— paragraph referred to as the ‘transferor such individual not later than the 60th day ‘‘(i) IN GENERAL.—If— plan’) to the extent that— after the date on which the payment or dis- ‘‘(I) a distribution is made from an indi- ‘‘(I) the forms of distribution previously tribution is received, except that the max- vidual retirement plan, and available under the transferor plan applied imum amount which may be paid into such ‘‘(II) a rollover contribution is made to an to the account of a participant or beneficiary plan may not exceed the portion of the eligible retirement plan described in section under the transferor plan that was trans- amount received which is includible in gross 402(c)(8)(B)(iii), (iv), (v), or (vi) with respect ferred from the transferor plan to the trans- income (determined without regard to this to all or part of such distribution, feree plan pursuant to a direct transfer rath- paragraph). then, notwithstanding paragraph (2), the er than pursuant to a distribution from the For purposes of clause (ii), the term ‘eligible rules of clause (ii) shall apply for purposes of transferor plan, retirement plan’ means an eligible retire- applying section 72. ‘‘(II) the terms of both the transferor plan ment plan described in clause (iii), (iv), (v), ‘‘(ii) APPLICABLE RULES.—In the case of a and the transferee plan authorize the trans- or (vi) of section 402(c)(8)(B).’’. distribution described in clause (i)— fer described in subclause (I), (b) CONFORMING AMENDMENTS.— ‘‘(I) section 72 shall be applied separately ‘‘(III) the transfer described in subclause (1) Paragraph (1) of section 403(b) is amend- to such distribution, (I) was made pursuant to a voluntary elec- ed by striking ‘‘section 408(d)(3)(A)(iii)’’ and ‘‘(II) notwithstanding the pro rata alloca- tion by the participant or beneficiary whose inserting ‘‘section 408(d)(3)(A)(ii)’’. tion of income on, and investment in, the account was transferred to the transferee (2) Clause (i) of section 408(d)(3)(D) is contract to distributions under section 72, plan, amended by striking ‘‘(i), (ii), or (iii)’’ and the portion of such distribution rolled over ‘‘(IV) the election described in subclause inserting ‘‘(i) or (ii)’’. to an eligible retirement plan described in (III) was made after the participant or bene- (3) Subparagraph (G) of section 408(d)(3) is clause (i) shall be treated as from income on ficiary received a notice describing the con- amended to read as follows: the contract (to the extent of the aggregate sequences of making the election, and ‘‘(G) SIMPLE RETIREMENT ACCOUNTS.—In the income on the contract from all individual ‘‘(V) the transferee plan allows the partici- case of any payment or distribution out of a retirement plans of the distributee), and pant or beneficiary described in subclause simple retirement account (as defined in sub- ‘‘(III) appropriate adjustments shall be (III) to receive any distribution to which the section (p)) to which section 72(t)(6) applies, made in applying section 72 to other dis- participant or beneficiary is entitled under this paragraph shall not apply unless such tributions in such taxable year and subse- the transferee plan in the form of a single payment or distribution is paid into another quent taxable years.’’. sum distribution. simple retirement account.’’. (d) EFFECTIVE DATE.—The amendments ‘‘(ii) EXCEPTION.—Clause (i) shall apply to (c) EFFECTIVE DATE; SPECIAL RULE.— made by this section shall apply to distribu- plan mergers and other transactions having (1) EFFECTIVE DATE.—The amendments tions made after the date of the enactment the effect of a direct transfer, including con- made by this section shall apply to distribu- of this Act. solidations of benefits attributable to dif- tions after the date of the enactment of this SEC. 404. HARDSHIP EXCEPTION TO 60-DAY RULE. ferent employers within a multiple employer Act. (a) EXEMPT TRUSTS.—Paragraph (3) of sec- plan. (2) SPECIAL RULE.—Notwithstanding any tion 402(c) (relating to transfer must be made ‘‘(E) ELIMINATION OF FORM OF DISTRIBU- other provision of law, subsections (h)(3) and within 60 days of receipt) is amended to read TION.—Except to the extent provided in regu- (h)(5) of section 1122 of the Tax Reform Act as follows: lations, a defined contribution plan shall not of 1986 shall not apply to any distribution ‘‘(3) TRANSFER MUST BE MADE WITHIN 60 be treated as failing to meet the require- from an eligible retirement plan (as defined DAYS OF RECEIPT.— ments of this section merely because of the in clause (iii) or (iv) of section 402(c)(8)(B) of ‘‘(A) IN GENERAL.—Except as provided in elimination of a form of distribution pre- the Internal Revenue Code of 1986) on behalf subparagraph (B), paragraph (1) shall not viously available thereunder. This subpara- of an individual if there was a rollover to apply to any transfer of a distribution made graph shall not apply to the elimination of a such plan on behalf of such individual which after the 60th day following the day on which form of distribution with respect to any par- is permitted solely by reason of the amend- the distributee received the property distrib- ticipant unless— ments made by this section. uted. ‘‘(i) a single sum payment is available to SEC. 403. ROLLOVERS OF AFTER-TAX CONTRIBU- ‘‘(B) HARDSHIP EXCEPTION.—The Secretary such participant at the same time or times TIONS. may waive the 60-day requirement under as the form of distribution being eliminated, (a) ROLLOVERS FROM EXEMPT TRUSTS.— subparagraph (A) where the failure to waive and Paragraph (2) of section 402(c) (relating to such requirement would be against equity or ‘‘(ii) such single sum payment is based on maximum amount which may be rolled over) good conscience, including casualty, dis- the same or greater portion of the partici- is amended by adding at the end the fol- aster, or other events beyond the reasonable pant’s account as the form of distribution lowing: ‘‘The preceding sentence shall not control of the individual subject to such re- being eliminated.’’. apply to such distribution to the extent— quirement.’’. (2) AMENDMENT OF ERISA.—Section 204(g) of ‘‘(A) such portion is transferred in a direct (b) IRAS.—Paragraph (3) of section 408(d) the Employee Retirement Income Security trustee-to-trustee transfer to a qualified (relating to rollover contributions), as Act of 1974 (29 U.S.C. 1054(g)) is amended by trust which is part of a plan which is a de- amended by section 403, is amended by add- adding at the end the following: fined contribution plan and which agrees to ing after subparagraph (H) the following new ‘‘(4)(A) A defined contribution plan (in this separately account for amounts so trans- subparagraph: subparagraph referred to as the ‘transferee AIVER OF 60-DAY REQUIREMENT.—The ferred, including separately accounting for ‘‘(I) W plan’) shall not be treated as failing to meet Secretary may waive the 60-day requirement the portion of such distribution which is in- the requirements of this subsection merely cludible in gross income and the portion of under subparagraphs (A) and (D) where the because the transferee plan does not provide such distribution which is not so includible, failure to waive such requirement would be or against equity or good conscience, including some or all of the forms of distribution pre- ‘‘(B) such portion is transferred to an eligi- casualty, disaster, or other events beyond viously available under another defined con- ble retirement plan described in clause (i) or the reasonable control of the individual sub- tribution plan (in this subparagraph referred (ii) of paragraph (8)(B).’’. ject to such requirement.’’. to as the ‘transferor plan’) to the extent (b) OPTIONAL DIRECT TRANSFER OF ELIGIBLE (c) EFFECTIVE DATE.—The amendments that— ROLLOVER DISTRIBUTIONS.—Subparagraph (B) made by this section shall apply to distribu- ‘‘(i) the forms of distribution previously of section 401(a)(31) (relating to limitation) tions after the date of the enactment of this available under the transferor plan applied is amended by adding at the end the fol- Act. to the account of a participant or beneficiary lowing: ‘‘The preceding sentence shall not SEC. 405. TREATMENT OF FORMS OF DISTRIBU- under the transferor plan that was trans- apply to such distribution if the plan to TION. ferred from the transferor plan to the trans- which such distribution is transferred— (a) PLAN TRANSFERS.— feree plan pursuant to a direct transfer rath- ‘‘(i) agrees to separately account for (1) AMENDMENT OF INTERNAL REVENUE er than pursuant to a distribution from the amounts so transferred, including separately CODE.—Paragraph (6) of section 411(d) (relat- transferor plan; accounting for the portion of such distribu- ing to accrued benefit not to be decreased by ‘‘(ii) the terms of both the transferor plan tion which is includible in gross income and amendment) is amended by adding at the end and the transferee plan authorize the trans- the portion of such distribution which is not the following: fer described in clause (i); so includible, or ‘‘(D) PLAN TRANSFERS.— ‘‘(iii) the transfer described in clause (i) ‘‘(ii) is an eligible retirement plan de- ‘‘(i) IN GENERAL.—A defined contribution was made pursuant to a voluntary election scribed in clause (i) or (ii) of section plan (in this subparagraph referred to as the by the participant or beneficiary whose ac- 402(c)(8)(B).’’. ‘transferee plan’) shall not be treated as fail- count was transferred to the transferee plan;

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00021 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.009 pfrm02 PsN: H02PT1 H1756 CONGRESSIONAL RECORD — HOUSE May 2, 2001 ‘‘(iv) the election described in clause (iii) of plan or disposition of assets or subsidiary) tributions (and earnings allocable thereto). was made after the participant or bene- is amended to read as follows: For purposes of this subparagraph, the term ficiary received a notice describing the con- ‘‘(A) IN GENERAL.—An event described in ‘rollover contributions’ means any rollover sequences of making the election; and this subparagraph is the termination of the contribution under sections 402(c), 403(a)(4), ‘‘(v) the transferee plan allows the partici- plan without establishment or maintenance 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16).’’. pant or beneficiary described in clause (iii) of another defined contribution plan (other (2) AMENDMENT OF ERISA.—Section 203(e) of to receive any distribution to which the par- than an employee stock ownership plan as the Employee Retirement Income Security ticipant or beneficiary is entitled under the defined in section 4975(e)(7)).’’. Act of 1974 (29 U.S.C. 1053(c)) is amended by transferee plan in the form of a single sum (C) Section 401(k)(10) is amended— adding at the end the following: distribution. (i) in subparagraph (B)— ‘‘(4) A plan shall not fail to meet the re- ‘‘(B) Subparagraph (A) shall apply to plan (I) by striking ‘‘An event’’ in clause (i) and quirements of this subsection if, under the mergers and other transactions having the inserting ‘‘A termination’’; and terms of the plan, the present value of the effect of a direct transfer, including consoli- (II) by striking ‘‘the event’’ in clause (i) nonforfeitable accrued benefit is determined dations of benefits attributable to different and inserting ‘‘the termination’’; without regard to that portion of such ben- employers within a multiple employer plan. (ii) by striking subparagraph (C); and efit which is attributable to rollover con- ‘‘(5) Except to the extent provided in regu- (iii) by striking ‘‘OR DISPOSITION OF ASSETS tributions (and earnings allocable thereto). lations promulgated by the Secretary of the OR SUBSIDIARY’’ in the heading. For purposes of this subparagraph, the term Treasury, a defined contribution plan shall (2) SECTION 403(b).— not be treated as failing to meet the require- ‘rollover contributions’ means any rollover (A) Paragraphs (7)(A)(ii) and (11)(A) of sec- contribution under sections 402(c), 403(a)(4), ments of this subsection merely because of tion 403(b) are each amended by striking the elimination of a form of distribution pre- 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the ‘‘separates from service’’ and inserting ‘‘has viously available thereunder. This paragraph Internal Revenue Code of 1986.’’. a severance from employment’’. shall not apply to the elimination of a form (b) ELIGIBLE DEFERRED COMPENSATION (B) The heading for paragraph (11) of sec- of distribution with respect to any partici- PLANS.—Clause (i) of section 457(e)(9)(A) is tion 403(b) is amended by striking ‘‘SEPARA- pant unless— amended by striking ‘‘such amount’’ and in- TION FROM SERVICE’’ and inserting ‘‘SEVER- ‘‘(A) a single sum payment is available to serting ‘‘the portion of such amount which is ANCE FROM EMPLOYMENT’’. such participant at the same time or times not attributable to rollover contributions (as (3) SECTION 457.—Clause (ii) of section as the form of distribution being eliminated; defined in section 411(a)(11)(D))’’. 457(d)(1)(A) is amended by striking ‘‘is sepa- and (c) EFFECTIVE DATE.—The amendments rated from service’’ and inserting ‘‘has a sev- ‘‘(B) such single sum payment is based on made by this section shall apply to distribu- erance from employment’’. the same or greater portion of the partici- (b) EFFECTIVE DATE.—The amendments tions after December 31, 2001. pant’s account as the form of distribution made by this section shall apply to distribu- SEC. 409. MINIMUM DISTRIBUTION AND INCLU- being eliminated.’’. tions after the date of the enactment of this SION REQUIREMENTS FOR SECTION (3) EFFECTIVE DATE.—The amendments Act. 457 PLANS. made by this subsection shall apply to years SEC. 407. PURCHASE OF SERVICE CREDIT IN GOV- (a) MINIMUM DISTRIBUTION REQUIRE- beginning after December 31, 2001. ERNMENTAL DEFINED BENEFIT MENTS.—Paragraph (2) of section 457(d) (re- (b) REGULATIONS.— PLANS. lating to distribution requirements) is (1) AMENDMENT OF INTERNAL REVENUE (a) 403(b) PLANS.—Subsection (b) of section amended to read as follows: CODE.—Paragraph (6)(B) of section 411(d) (re- 403 is amended by adding at the end the fol- ‘‘(2) MINIMUM DISTRIBUTION REQUIRE- lating to accrued benefit not to be decreased lowing new paragraph: MENTS.—A plan meets the minimum dis- by amendment) is amended by inserting ‘‘(13) TRUSTEE-TO-TRUSTEE TRANSFERS TO tribution requirements of this paragraph if after the second sentence the following new PURCHASE PERMISSIVE SERVICE CREDIT.—No such plan meets the requirements of section sentence: ‘‘The Secretary shall by regula- amount shall be includible in gross income 401(a)(9).’’. tions provide that this subparagraph shall by reason of a direct trustee-to-trustee (b) INCLUSION IN GROSS INCOME.— not apply to any plan amendment which re- transfer to a defined benefit governmental (1) YEAR OF INCLUSION.—Subsection (a) of duces or eliminates benefits or subsidies plan (as defined in section 414(d)) if such which create significant burdens or complex- section 457 (relating to year of inclusion in transfer is— gross income) is amended to read as follows: ities for the plan and plan participants and ‘‘(A) for the purchase of permissive service does not adversely affect the rights of any credit (as defined in section 415(n)(3)(A)) ‘‘(a) YEAR OF INCLUSION IN GROSS INCOME.— participant in a more than de minimis man- under such plan, or ‘‘(1) IN GENERAL.—Any amount of com- ner.’’. ‘‘(B) a repayment to which section 415 does pensation deferred under an eligible deferred (2) AMENDMENT OF ERISA.—Section 204(g)(2) not apply by reason of subsection (k)(3) compensation plan, and any income attrib- of the Employee Retirement Income Secu- thereof.’’. utable to the amounts so deferred, shall be rity Act of 1974 (29 U.S.C. 1054(g)(2)) is (b) 457 PLANS.—Subsection (e) of section includible in gross income only for the tax- amended by inserting before the last sen- 457 is amended by adding after paragraph (16) able year in which such compensation or tence the following new sentence: ‘‘The Sec- the following new paragraph: other income— retary of the Treasury shall by regulations ‘‘(17) TRUSTEE-TO-TRUSTEE TRANSFERS TO ‘‘(A) is paid to the participant or other provide that this paragraph shall not apply PURCHASE PERMISSIVE SERVICE CREDIT.—No beneficiary, in the case of a plan of an eligi- to any plan amendment which reduces or amount shall be includible in gross income ble employer described in subsection eliminates benefits or subsidies which create by reason of a direct trustee-to-trustee (e)(1)(A), and significant burdens or complexities for the transfer to a defined benefit governmental ‘‘(B) is paid or otherwise made available to plan and plan participants and does not ad- plan (as defined in section 414(d)) if such the participant or other beneficiary, in the versely affect the rights of any participant transfer is— case of a plan of an eligible employer de- in a more than de minimis manner.’’. ‘‘(A) for the purchase of permissive service scribed in subsection (e)(1)(B). (3) SECRETARY DIRECTED.—Not later than credit (as defined in section 415(n)(3)(A)) ‘‘(2) SPECIAL RULE FOR ROLLOVER December 31, 2003, the Secretary of the under such plan, or AMOUNTS.—To the extent provided in section Treasury is directed to issue regulations ‘‘(B) a repayment to which section 415 does 72(t)(9), section 72(t) shall apply to any under section 411(d)(6) of the Internal Rev- not apply by reason of subsection (k)(3) amount includible in gross income under this enue Code of 1986 and section 204(g) of the thereof.’’. subsection.’’. Employee Retirement Income Security Act (c) EFFECTIVE DATE.—The amendments (2) CONFORMING AMENDMENTS.— of 1974, including the regulations required by made by this section shall apply to trustee- (A) So much of paragraph (9) of section the amendment made by this subsection. to-trustee transfers after the date of the en- 457(e) as precedes subparagraph (A) is amend- Such regulations shall apply to plan years actment of this Act. ed to read as follows: beginning after December 31, 2003, or such SEC. 408. EMPLOYERS MAY DISREGARD ROLL- ‘‘(9) BENEFITS OF TAX EXEMPT ORGANIZATION earlier date as is specified by the Secretary OVERS FOR PURPOSES OF CASH-OUT PLANS NOT TREATED AS MADE AVAILABLE BY of the Treasury. AMOUNTS. REASON OF CERTAIN ELECTIONS, ETC.—In the SEC. 406. RATIONALIZATION OF RESTRICTIONS (a) QUALIFIED PLANS.— case of an eligible deferred compensation ON DISTRIBUTIONS. (1) AMENDMENT OF INTERNAL REVENUE plan of an employer described in subsection (a) MODIFICATION OF SAME DESK EXCEP- CODE.—Section 411(a)(11) (relating to restric- (e)(1)(B)—’’. TION.— tions on certain mandatory distributions) is (B) Section 457(d) is amended by adding at (1) SECTION 401(k).— amended by adding at the end the following: the end the following new paragraph: (A) Section 401(k)(2)(B)(i)(I) (relating to ‘‘(D) SPECIAL RULE FOR ROLLOVER CONTRIBU- ‘‘(3) SPECIAL RULE FOR GOVERNMENT PLAN.— qualified cash or deferred arrangements) is TIONS.—A plan shall not fail to meet the re- An eligible deferred compensation plan of an amended by striking ‘‘separation from serv- quirements of this paragraph if, under the employer described in subsection (e)(1)(A) ice’’ and inserting ‘‘severance from employ- terms of the plan, the present value of the shall not be treated as failing to meet the re- ment’’. nonforfeitable accrued benefit is determined quirements of this subsection solely by rea- (B) Subparagraph (A) of section 401(k)(10) without regard to that portion of such ben- son of making a distribution described in (relating to distributions upon termination efit which is attributable to rollover con- subsection (e)(9)(A).’’.

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(c) EFFECTIVE DATE.—The amendments such member or employer shall be taken into ‘‘(2) NONCOMPLIANCE PERIOD.—For purposes made by this section shall apply to distribu- account. of this section, the term ‘noncompliance pe- tions after the date of the enactment of this ‘‘(iv) PLANS MAINTAINED BY PROFESSIONAL riod’ means, with respect to any failure, the Act. SERVICE EMPLOYERS.—Clause (i) shall not period beginning on the date the failure first TITLE V—STRENGTHENING PENSION apply to a plan described in section occurs and ending on the date the failure is SECURITY AND ENFORCEMENT 4021(b)(13) of the Employee Retirement In- corrected. come Security Act of 1974.’’. ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— SEC. 501. REPEAL OF PERCENT OF CURRENT LI- ABILITY FUNDING LIMIT. (b) CONFORMING AMENDMENT.—Paragraph ‘‘(1) OVERALL LIMITATION FOR UNINTEN- (6) of section 4972(c) is amended to read as TIONAL FAILURES (a) AMENDMENT OF INTERNAL REVENUE .—In the case of failures follows: CODE.—Section 412(c)(7) (relating to full- that are due to reasonable cause and not to funding limitation) is amended— ‘‘(6) EXCEPTIONS.—In determining the willful neglect, the tax imposed by sub- (1) by striking ‘‘the applicable percentage’’ amount of nondeductible contributions for section (a) for failures during the taxable in subparagraph (A)(i)(I) and inserting ‘‘in any taxable year, there shall not be taken year of the employer (or, in the case of a the case of plan years beginning before Janu- into account so much of the contributions to multiemployer plan, the taxable year of the ary 1, 2004, the applicable percentage’’; and one or more defined contribution plans trust forming part of the plan) shall not ex- (2) by amending subparagraph (F) to read which are not deductible when contributed ceed $500,000. For purposes of the preceding as follows: solely because of section 404(a)(7) as does not sentence, all multiemployer plans of which exceed the greater of— ‘‘(F) APPLICABLE PERCENTAGE.—For pur- the same trust forms a part shall be treated poses of subparagraph (A)(i)(I), the applica- ‘‘(A) the amount of contributions not in as one plan. For purposes of this paragraph, ble percentage shall be determined in accord- excess of 6 percent of compensation (within if not all persons who are treated as a single ance with the following table: the meaning of section 404(a)) paid or ac- employer for purposes of this section have crued (during the taxable year for which the the same taxable year, the taxable years ‘‘In the case of any The applicable contributions were made) to beneficiaries taken into account shall be determined plan year beginning percentage is— under the plans, or under principles similar to the principles of in— ‘‘(B) the sum of— section 1561. 2002 ...... 165 ‘‘(i) the amount of contributions described ‘‘(2) WAIVER BY SECRETARY.—In the case of 2003 ...... 170.’’. in section 401(m)(4)(A), plus a failure which is due to reasonable cause (b) AMENDMENT OF ERISA.—Section ‘‘(ii) the amount of contributions described and not to willful neglect, the Secretary may 302(c)(7) of the Employee Retirement Income in section 402(g)(3)(A). waive part or all of the tax imposed by sub- Security Act of 1974 (29 U.S.C. 1082(c)(7)) is For purposes of this paragraph, the deduct- section (a) to the extent that the payment of amended— ible limits under section 404(a)(7) shall first such tax would be excessive relative to the (1) by striking ‘‘the applicable percentage’’ be applied to amounts contributed to a de- failure involved. in subparagraph (A)(i)(I) and inserting ‘‘in fined benefit plan and then to amounts de- ‘‘(d) LIABILITY FOR TAX.—The following the case of plan years beginning before Janu- scribed in subparagraph (B).’’. shall be liable for the tax imposed by sub- ary 1, 2004, the applicable percentage’’; and (c) EFFECTIVE DATE.—The amendments section (a): (2) by amending subparagraph (F) to read made by this section shall apply to plan ‘‘(1) In the case of a plan other than a mul- as follows: years beginning after December 31, 2001. tiemployer plan, the employer. ‘‘(F) APPLICABLE PERCENTAGE.—For pur- ‘‘(2) In the case of a multiemployer plan, poses of subparagraph (A)(i)(I), the applica- SEC. 503. EXCISE TAX RELIEF FOR SOUND PEN- SION FUNDING. the plan. ble percentage shall be determined in accord- (a) IN GENERAL.—Subsection (c) of section ‘‘(e) NOTICE REQUIREMENTS FOR PLANS SIG- ance with the following table: 4972 (relating to nondeductible contribu- NIFICANTLY REDUCING BENEFIT ACCRUALS.— ‘‘In the case of any The applicable tions) is amended by adding at the end the ‘‘(1) IN GENERAL.—If an applicable pension plan year beginning percentage is— following new paragraph: plan is amended to provide for a significant in— ‘‘(7) DEFINED BENEFIT PLAN EXCEPTION.—In reduction in the rate of future benefit ac- 2002 ...... 165 determining the amount of nondeductible crual, the plan administrator shall provide 2003 ...... 170.’’. contributions for any taxable year, an em- written notice to each applicable individual (c) EFFECTIVE DATE.—The amendments ployer may elect for such year not to take (and to each employee organization rep- made by this section shall apply to plan into account any contributions to a defined resenting applicable individuals). years beginning after December 31, 2001. benefit plan except to the extent that such ‘‘(2) NOTICE.—The notice required by para- SEC. 502. MAXIMUM CONTRIBUTION DEDUCTION contributions exceed the full-funding limita- graph (1) shall be written in a manner cal- RULES MODIFIED AND APPLIED TO tion (as defined in section 412(c)(7), deter- culated to be understood by the average plan ALL DEFINED BENEFIT PLANS. mined without regard to subparagraph participant and shall provide sufficient in- (a) IN GENERAL.—Subparagraph (D) of sec- (A)(i)(I) thereof). For purposes of this para- formation (as determined in accordance with tion 404(a)(1) (relating to special rule in case graph, the deductible limits under section regulations prescribed by the Secretary) to of certain plans) is amended to read as fol- 404(a)(7) shall first be applied to amounts allow applicable individuals to understand lows: contributed to defined contribution plans the effect of the plan amendment. The Sec- ‘‘(D) SPECIAL RULE IN CASE OF CERTAIN and then to amounts described in this para- retary may provide a simplified form of no- PLANS.— graph. If an employer makes an election tice for, or exempt from any notice require- ‘‘(i) IN GENERAL.—In the case of any defined under this paragraph for a taxable year, ment, a plan— benefit plan, except as provided in regula- paragraph (6) shall not apply to such em- ‘‘(A) which has fewer than 100 participants tions, the maximum amount deductible ployer for such taxable year.’’. who have accrued a benefit under the plan, under the limitations of this paragraph shall (b) EFFECTIVE DATE.—The amendment or not be less than the unfunded termination li- made by this section shall apply to years be- ‘‘(B) which offers participants the option ability (determined as if the proposed termi- ginning after December 31, 2001. to choose between the new benefit formula nation date referred to in section SEC. 504. EXCISE TAX ON FAILURE TO PROVIDE and the old benefit formula. 4041(b)(2)(A)(i)(II) of the Employee Retire- NOTICE BY DEFINED BENEFIT ‘‘(3) TIMING OF NOTICE.—Except as provided ment Income Security Act of 1974 were the PLANS SIGNIFICANTLY REDUCING in regulations, the notice required by para- last day of the plan year). FUTURE BENEFIT ACCRUALS. graph (1) shall be provided within a reason- ‘‘(ii) PLANS WITH LESS THAN 100 PARTICI- (a) AMENDMENT OF INTERNAL REVENUE able time before the effective date of the PANTS.—For purposes of this subparagraph, CODE.— plan amendment. in the case of a plan which has less than 100 (1) IN GENERAL.—Chapter 43 (relating to ‘‘(4) DESIGNEES.—Any notice under para- participants for the plan year, termination qualified pension, etc., plans) is amended by graph (1) may be provided to a person des- liability shall not include the liability at- adding at the end the following new section: ignated, in writing, by the person to which it tributable to benefit increases for highly ‘‘SEC. 4980F. FAILURE OF APPLICABLE PLANS RE- would otherwise be provided. compensated employees (as defined in sec- DUCING BENEFIT ACCRUALS TO ‘‘(5) NOTICE BEFORE ADOPTION OF AMEND- tion 414(q)) resulting from a plan amendment SATISFY NOTICE REQUIREMENTS. MENT.—A plan shall not be treated as failing which is made or becomes effective, which- ‘‘(a) IMPOSITION OF TAX.—There is hereby to meet the requirements of paragraph (1) ever is later, within the last 2 years before imposed a tax on the failure of any applica- merely because notice is provided before the the termination date. ble pension plan to meet the requirements of adoption of the plan amendment if no mate- ‘‘(iii) RULE FOR DETERMINING NUMBER OF subsection (e) with respect to any applicable rial modification of the amendment occurs PARTICIPANTS.—For purposes of determining individual. before the amendment is adopted. whether a plan has more than 100 partici- ‘‘(b) AMOUNT OF TAX.— ‘‘(f) DEFINITIONS AND SPECIAL RULES.—For pants, all defined benefit plans maintained ‘‘(1) IN GENERAL.—The amount of the tax purposes of this section— by the same employer (or any member of imposed by subsection (a) on any failure ‘‘(1) APPLICABLE INDIVIDUAL.—The term such employer’s controlled group (within the with respect to any applicable individual ‘applicable individual’ means, with respect meaning of section 412(l)(8)(C))) shall be shall be $100 for each day in the noncompli- to any plan amendment— treated as one plan, but only employees of ance period with respect to such failure. ‘‘(A) each participant in the plan, and

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‘‘(B) any beneficiary who is an alternate graph to be provided by using new tech- (1) COMBINING OF PLANS.—Subsection (f) of payee (within the meaning of section nologies. section 415 (relating to combining of plans) is 414(p)(8)) under an applicable qualified do- ‘‘(4) For purposes of paragraph (3)— amended by adding at the end the following: mestic relations order (within the meaning ‘‘(A) The term ‘applicable individual’ ‘‘(3) EXCEPTION FOR MULTIEMPLOYER of section 414(p)(1)(A)), means, with respect to any plan amend- PLANS.—Notwithstanding paragraph (1) and whose rate of future benefit accrual under ment— subsection (g), a multiemployer plan (as de- the plan may reasonably be expected to be ‘‘(i) each participant in the plan; and fined in section 414(f)) shall not be combined significantly reduced by such plan amend- ‘‘(ii) any beneficiary who is an alternate or aggregated with any other plan main- ment. payee (within the meaning of section tained by an employer for purposes of apply- 206(d)(3)(K)) under an applicable qualified do- ‘‘(2) APPLICABLE PENSION PLAN.—The term ing the limitations established in this sec- ‘applicable pension plan’ means— mestic relations order (within the meaning tion, except that such plan shall be combined ‘‘(A) any defined benefit plan, or of section 206(d)(3)(B)(i)), or aggregated with another plan which is not ‘‘(B) an individual account plan which is whose rate of future benefit accrual under such a multiemployer plan solely for pur- subject to the funding standards of section the plan may reasonably be expected to be poses of determining whether such other 412. significantly reduced by such plan amend- plan meets the requirements of subsections (b)(1)(A) and (c).’’. Such term shall not include a governmental ment. ‘‘(B) The term ‘applicable pension plan’ (2) CONFORMING AMENDMENT FOR AGGREGA- plan (within the meaning of section 414(d)) or TION OF PLANS.—Subsection (g) of section 415 a church plan (within the meaning of section means— ‘‘(i) any defined benefit plan; or (relating to aggregation of plans) is amended 414(e)) with respect to which the election by striking ‘‘The Secretary’’ and inserting provided by section 410(d) has not been made. ‘‘(ii) an individual account plan which is subject to the funding standards of section ‘‘Except as provided in subsection (f)(3), the ‘‘(3) EARLY RETIREMENT.—A plan amend- 412 of the Internal Revenue Code of 1986. Secretary’’. ment which eliminates or significantly re- (c) EFFECTIVE DATE.—The amendments ‘‘(C) A plan amendment which eliminates duces any early retirement benefit or retire- made by this section shall apply to years be- or significantly reduces any early retirement ment-type subsidy (within the meaning of ginning after December 31, 2001. benefit or retirement-type subsidy (within section 411(d)(6)(B)(i)) shall be treated as SEC. 506. PROTECTION OF INVESTMENT OF EM- having the effect of significantly reducing the meaning of subsection (g)(2)(A)) shall be PLOYEE CONTRIBUTIONS TO 401(K) the rate of future benefit accrual. treated as having the effect of significantly PLANS. ‘‘(g) NEW TECHNOLOGIES.—The Secretary reducing the rate of future benefit accrual.’’. (a) IN GENERAL.—Section 1524(b) of the (c) EFFECTIVE DATES.— may by regulations allow any notice under Taxpayer Relief Act of 1997 is amended to (1) IN GENERAL.—The amendments made by subsection (e) to be provided by using new read as follows: this section shall apply to plan amendments technologies.’’. ‘‘(b) EFFECTIVE DATE.— taking effect on or after the date of the en- (2) CLERICAL AMENDMENT.—The table of ‘‘(1) IN GENERAL.—Except as provided in actment of this Act. sections for chapter 43 is amended by adding paragraph (2), the amendments made by this (2) TRANSITION.—Until such time as the at the end the following new item: section shall apply to elective deferrals for Secretary of the Treasury issues regulations plan years beginning after December 31, 1998. ‘‘Sec. 4980F. Failure of applicable plans re- under sections 4980F(e)(2) and (3) of the In- ‘‘(2) NONAPPLICATION TO PREVIOUSLY AC- ducing benefit accruals to sat- ternal Revenue Code of 1986, and section QUIRED PROPERTY.—The amendments made isfy notice requirements.’’. 204(h)(3) of the Employee Retirement Income by this section shall not apply to any elec- (b) AMENDMENT OF ERISA.—Section 204(h) Security Act of 1974, as added by the amend- tive deferral which is invested in assets con- of the Employee Retirement Income Secu- ments made by this section, a plan shall be sisting of qualifying employer securities, rity Act of 1974 (29 U.S.C. 1054(h)) is amended treated as meeting the requirements of such qualifying employer real property, or both, if by adding at the end the following new para- sections if it makes a good faith effort to such assets were acquired before January 1, graphs: comply with such requirements. 1999.’’. ‘‘(3)(A) An applicable pension plan to which (3) SPECIAL NOTICE RULE.—The period for (b) EFFECTIVE DATE.—The amendment paragraph (1) applies shall not be treated as providing any notice required by the amend- made by this section shall apply as if in- meeting the requirements of such paragraph ments made by this section shall not end be- cluded in the provision of the Taxpayer Re- unless, in addition to any notice required to fore the date which is 3 months after the lief Act of 1997 to which it relates. be provided to an individual or organization date of the enactment of this Act. SEC. 507. PERIODIC PENSION BENEFITS STATE- under such paragraph, the plan adminis- (d) STUDY.—The Secretary of the Treasury MENTS. (a) IN GENERAL.—Section 105(a) of the Em- trator provides the notice described in sub- shall prepare a report on the effects of con- versions of traditional defined benefit plans ployee Retirement Income Security Act of paragraph (B) to each applicable individual to cash balance or hybrid formula plans. 1974 (29 U.S.C. 1025 (a)) is amended to read as (and to each employee organization rep- Such study shall examine the effect of such follows: resenting applicable individuals). conversions on longer service participants, ‘‘(a)(1) Except as provided in paragraph ‘‘(B) The notice required by subparagraph including the incidence and effects of ‘‘wear (2)— (A) shall be written in a manner calculated away’’ provisions under which participants ‘‘(A) the administrator of an individual ac- to be understood by the average plan partici- earn no additional benefits for a period of count plan shall furnish a pension benefit pant and shall provide sufficient information time after the conversion. As soon as prac- statement— (as determined in accordance with regula- ticable, but not later than 60 days after the ‘‘(i) to a plan participant at least once an- tions prescribed by the Secretary of the date of the enactment of this Act, the Sec- nually, and Treasury) to allow applicable individuals to retary shall submit such report, together ‘‘(ii) to a plan beneficiary upon written re- understand the effect of the plan amend- with recommendations thereon, to the Com- quest, and ment. The Secretary of the Treasury may mittee on Ways and Means and the Com- ‘‘(B) the administrator of a defined benefit provide a simplified form of notice for, or ex- mittee on Education and the Workforce of plan shall furnish a pension benefit state- empt from any notice requirement, a plan— the House of Representatives and the Com- ment— ‘‘(i) which has fewer than 100 participants mittee on Finance and the Committee on ‘‘(i) at least once every 3 years to each par- who have accrued a benefit under the plan, Health, Education, Labor, and Pensions of ticipant with a nonforfeitable accrued ben- or the Senate. efit who is employed by the employer main- ‘‘(ii) which offers participants the option SEC. 505. TREATMENT OF MULTIEMPLOYER taining the plan at the time the statement is to choose between the new benefit formula PLANS UNDER SECTION 415. furnished to participants, and and the old benefit formula. (a) COMPENSATION LIMIT.— ‘‘(ii) to a plan participant or plan bene- ‘‘(C) Except as provided in regulations pre- (1) IN GENERAL.—Paragraph (11) of section ficiary of the plan upon written request. scribed by the Secretary of the Treasury, the 415(b) (relating to limitation for defined ben- ‘‘(2) Notwithstanding paragraph (1), the ad- notice required by subparagraph (A) shall be efit plans) is amended to read as follows: ministrator of a plan to which more than 1 provided within a reasonable time before the ‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN- unaffiliated employer is required to con- effective date of the plan amendment. MENTAL AND MULTIEMPLOYER PLANS.—In the tribute shall only be required to furnish a ‘‘(D) Any notice under subparagraph (A) case of a governmental plan (as defined in pension benefit statement under paragraph may be provided to a person designated, in section 414(d)) or a multiemployer plan (as (1) upon the written request of a participant writing, by the person to which it would oth- defined in section 414(f)), subparagraph (B) of or beneficiary of the plan. erwise be provided. paragraph (1) shall not apply.’’. ‘‘(3) A pension benefit statement under ‘‘(E) A plan shall not be treated as failing (2) CONFORMING AMENDMENT.—Section paragraph (1)— to meet the requirements of subparagraph 415(b)(7) (relating to benefits under certain ‘‘(A) shall indicate, on the basis of the lat- (A) merely because notice is provided before collectively bargained plans) is amended by est available information— the adoption of the plan amendment if no inserting ‘‘(other than a multiemployer ‘‘(i) the total benefits accrued, and material modification of the amendment oc- plan)’’ after ‘‘defined benefit plan’’ in the ‘‘(ii) the nonforfeitable pension benefits, if curs before the amendment is adopted. matter preceding subparagraph (A). any, which have accrued, or the earliest date ‘‘(F) The Secretary of the Treasury may by (b) COMBINING AND AGGREGATION OF on which benefits will become nonforfeit- regulations allow any notice under this para- PLANS.— able,

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‘‘(B) shall be written in a manner cal- ‘‘(i) IN GENERAL.—The rules of section ‘‘(A) the treatment of any person as a dis- culated to be understood by the average plan 318(a) shall apply for purposes of determining qualified person, or participant, and ownership, except that— ‘‘(B) the treatment of any year as a non- ‘‘(C) may be provided in written, elec- ‘‘(I) in applying paragraph (1) thereof, the allocation year. tronic, telephonic, or other appropriate members of an individual’s family shall in- For purposes of this paragraph, synthetic eq- form. clude members of the family described in uity shall be treated as owned by a person in ‘‘(4)(A) In the case of a defined benefit paragraph (4)(D), and the same manner as stock is treated as plan, the requirements of paragraph (1)(B)(i) ‘‘(II) paragraph (4) thereof shall not apply. owned by a person under the rules of para- shall be treated as met with respect to a par- ‘‘(ii) DEEMED-OWNED SHARES.—Notwith- graphs (2) and (3) of section 318(a). If, with- ticipant if the administrator provides the standing the employee trust exception in out regard to this paragraph, a person is participant at least once each year with no- section 318(a)(2)(B)(i), individual shall be treated as a disqualified person or a year is tice of the availability of the pension benefit treated as owning deemed-owned shares of treated as a nonallocation year, this para- statement and the ways in which the partici- the individual. graph shall not be construed to result in the pant may obtain such statement. Such no- Solely for purposes of applying paragraph (5), person or year not being so treated. tice shall be provided in written, electronic, this subparagraph shall be applied after the ‘‘(6) DEFINITIONS.—For purposes of this sub- telephonic, or other appropriate form, and attribution rules of paragraph (5) have been section— may be included with other communications applied. ‘‘(A) EMPLOYEE STOCK OWNERSHIP PLAN.— to the participant if done in a manner rea- The term ‘employee stock ownership plan’ ‘‘(4) DISQUALIFIED PERSON.—For purposes of has the meaning given such term by section sonably designed to attract the attention of this subsection— the participant. 4975(e)(7). ‘‘(A) IN GENERAL.—The term ‘disqualified ‘‘(B) EMPLOYER SECURITIES.—The term ‘em- ‘‘(B) The Secretary may provide that years person’ means any person if— ployer security’ has the meaning given such in which no employee or former employee ‘‘(i) the aggregate number of deemed- term by section 409(l). benefits (within the meaning of section owned shares of such person and the mem- 410(b) of the Internal Revenue Code of 1986) ‘‘(C) SYNTHETIC EQUITY.—The term ‘syn- bers of such person’s family is at least 20 per- thetic equity’ means any stock option, war- under the plan need not be taken into ac- cent of the number of deemed-owned shares count in determining the 3-year period under rant, restricted stock, deferred issuance of stock in the S corporation, or stock right, or similar interest or right that paragraph (1)(B)(i).’’. ‘‘(ii) in the case of a person not described (b) CONFORMING AMENDMENTS.— gives the holder the right to acquire or re- in clause (i), the number of deemed-owned ceive stock of the S corporation in the fu- (1) Section 105 of the Employee Retirement shares of such person is at least 10 percent of Income Security Act of 1974 (29 U.S.C. 1025) is ture. Except to the extent provided in regu- the number of deemed-owned shares of stock lations, synthetic equity also includes a amended by striking subsection (d). in such corporation. (2) Section 105(b) of such Act (29 U.S.C. stock appreciation right, phantom stock ‘‘(B) TREATMENT OF FAMILY MEMBERS.—In 1025(b)) is amended to read as follows: unit, or similar right to a future cash pay- the case of a disqualified person described in ment based on the value of such stock or ap- ‘‘(b) In no case shall a participant or bene- subparagraph (A)(i), any member of such per- preciation in such value. ficiary of a plan be entitled to more than one son’s family with deemed-owned shares shall ‘‘(7) REGULATIONS.—The Secretary shall statement described in subsection (a)(1)(A) be treated as a disqualified person if not oth- prescribe such regulations as may be nec- or (a)(1)(B)(ii), whichever is applicable, in erwise treated as a disqualified person under essary to carry out the purposes of this sub- any 12-month period.’’. subparagraph (A). section.’’. (c) EFFECTIVE DATE.—The amendments ‘‘(C) DEEMED-OWNED SHARES.— (b) COORDINATION WITH SECTION 4975(e)(7).— made by this section shall apply to plan ‘‘(i) IN GENERAL.—The term ‘deemed-owned The last sentence of section 4975(e)(7) (defin- years beginning after December 31, 2002. shares’ means, with respect to any person— ing employee stock ownership plan) is SEC. 508. PROHIBITED ALLOCATIONS OF STOCK ‘‘(I) the stock in the S corporation consti- amended by inserting ‘‘, section 409(p),’’ after IN S CORPORATION ESOP. tuting employer securities of an employee ‘‘409(n)’’. (a) IN GENERAL.—Section 409 (relating to stock ownership plan which is allocated to (c) EXCISE TAX.— qualifications for tax credit employee stock such person under the plan, and (1) APPLICATION OF TAX.—Subsection (a) of ownership plans) is amended by redesig- ‘‘(II) such person’s share of the stock in section 4979A (relating to tax on certain pro- nating subsection (p) as subsection (q) and such corporation which is held by such plan hibited allocations of employer securities) is by inserting after subsection (o) the fol- but which is not allocated under the plan to amended— lowing new subsection: participants. (A) by striking ‘‘or’’ at the end of para- graph (1), and ‘‘(p) PROHIBITED ALLOCATIONS OF SECURI- ‘‘(ii) PERSON’S SHARE OF UNALLOCATED (B) by striking all that follows paragraph TIES IN AN S CORPORATION.— STOCK.—For purposes of clause (i)(II), a per- (2) and inserting the following: ‘‘(1) IN GENERAL.—An employee stock own- son’s share of unallocated S corporation ‘‘(3) there is any allocation of employer se- ership plan holding employer securities con- stock held by such plan is the amount of the sisting of stock in an S corporation shall curities which violates the provisions of sec- unallocated stock which would be allocated tion 409(p), or a nonallocation year described provide that no portion of the assets of the to such person if the unallocated stock were plan attributable to (or allocable in lieu of) in subsection (e)(2)(C) with respect to an em- allocated to all participants in the same pro- ployee stock ownership plan, or such employer securities may, during a non- portions as the most recent stock allocation allocation year, accrue (or be allocated di- ‘‘(4) any synthetic equity is owned by a dis- under the plan. qualified person in any nonallocation year, rectly or indirectly under any plan of the ‘‘(D) MEMBER OF FAMILY.—For purposes of there is hereby imposed a tax on such alloca- employer meeting the requirements of sec- this paragraph, the term ‘member of the tion 401(a)) for the benefit of any disqualified tion or ownership equal to 50 percent of the family’ means, with respect to any indi- amount involved.’’. person. vidual— ‘‘(2) FAILURE TO MEET REQUIREMENTS.— (2) LIABILITY.—Section 4979A(c) (defining ‘‘(i) the spouse of the individual, liability for tax) is amended to read as fol- ‘‘(A) IN GENERAL.—If a plan fails to meet ‘‘(ii) an ancestor or lineal descendant of the requirements of paragraph (1), the plan lows: the individual or the individual’s spouse, IABILITY FOR TAX.—The tax imposed shall be treated as having distributed to any ‘‘(c) L ‘‘(iii) a brother or sister of the individual by this section shall be paid— disqualified person the amount allocated to or the individual’s spouse and any lineal de- ‘‘(1) in the case of an allocation referred to the account of such person in violation of scendant of the brother or sister, and in paragraph (1) or (2) of subsection (a), by— paragraph (1) at the time of such allocation. ‘‘(iv) the spouse of any individual described ‘‘(A) the employer sponsoring such plan, or ‘‘(B) CROSS REFERENCE.— in clause (ii) or (iii). ‘‘(B) the eligible worker-owned coopera- ‘‘For excise tax relating to violations of A spouse of an individual who is legally sepa- tive, paragraph (1) and ownership of synthetic eq- rated from such individual under a decree of which made the written statement described uity, see section 4979A. divorce or separate maintenance shall not be in section 664(g)(1)(E) or in section ‘‘(3) NONALLOCATION YEAR.—For purposes of treated as such individual’s spouse for pur- 1042(b)(3)(B) (as the case may be), and this subsection— poses of this subparagraph. ‘‘(2) in the case of an allocation or owner- ‘‘(A) IN GENERAL.—The term ‘nonallocation ‘‘(5) TREATMENT OF SYNTHETIC EQUITY.—For ship referred to in paragraph (3) or (4) of sub- year’ means any plan year of an employee purposes of paragraphs (3) and (4), in the case section (a), by the S corporation the stock in stock ownership plan if, at any time during of a person who owns synthetic equity in the which was so allocated or owned.’’. such plan year— S corporation, except to the extent provided (3) DEFINITIONS.—Section 4979A(e) (relating ‘‘(i) such plan holds employer securities in regulations, the shares of stock in such to definitions) is amended to read as follows: consisting of stock in an S corporation, and corporation on which such synthetic equity ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For ‘‘(ii) disqualified persons own at least 50 is based shall be treated as outstanding purposes of this section— percent of the number of shares of stock in stock in such corporation and deemed-owned ‘‘(1) DEFINITIONS.—Except as provided in the S corporation. shares of such person if such treatment of paragraph (2), terms used in this section ‘‘(B) ATTRIBUTION RULES.—For purposes of synthetic equity of 1 or more such persons have the same respective meanings as when subparagraph (A)— results in— used in sections 409 and 4978.

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‘‘(2) SPECIAL RULES RELATING TO TAX IM- tions, be actuarially adjusted to reflect sig- same date set forth in section 1426(b) of the POSED BY REASON OF PARAGRAPH (3) OR (4) OF nificant differences in participants. Small Business Job Protection Act of 1996. SUBSECTION (a).— ‘‘(iv) ELECTION.—An election under clause SEC. 605. CLARIFICATION OF TREATMENT OF EM- ‘‘(A) PROHIBITED ALLOCATIONS.—The (ii), once made, shall be irrevocable without PLOYER-PROVIDED RETIREMENT amount involved with respect to any tax im- the consent of the Secretary.’’. ADVICE. posed by reason of subsection (a)(3) is the (b) AMENDMENT OF ERISA.—Paragraph (9) (a) IN GENERAL.—Subsection (a) of section amount allocated to the account of any per- of section 302(c) of the Employee Retirement 132 (relating to exclusion from gross income) son in violation of section 409(p)(1). Income Security Act of 1974 (29 U.S.C. is amended by striking ‘‘or’’ at the end of ‘‘(B) SYNTHETIC EQUITY.—The amount in- 1053(c)) is amended— paragraph (5), by striking the period at the volved with respect to any tax imposed by (1) by inserting ‘‘(A)’’ after ‘‘(9)’’; and end of paragraph (6) and inserting ‘‘, or’’, and reason of subsection (a)(4) is the value of the (2) by adding at the end the following: by adding at the end the following new para- shares on which the synthetic equity is ‘‘(B)(i) Except as provided in clause (ii), graph: based. the valuation referred to in subparagraph (A) ‘‘(7) qualified retirement planning serv- ‘‘(C) SPECIAL RULE DURING FIRST NON- shall be made as of a date within the plan ices.’’. ALLOCATION YEAR.—For purposes of subpara- year to which the valuation refers or within (b) QUALIFIED RETIREMENT PLANNING SERV- graph (A), the amount involved for the first one month prior to the beginning of such ICES DEFINED.—Section 132 is amended by re- nonallocation year of any employee stock year. designating subsection (m) as subsection (n) ownership plan shall be determined by tak- ‘‘(ii) The valuation referred to in subpara- and by inserting after subsection (l) the fol- ing into account the total value of all the graph (A) may be made as of a date within lowing: deemed-owned shares of all disqualified per- the plan year prior to the year to which the ‘‘(m) QUALIFIED RETIREMENT PLANNING sons with respect to such plan. valuation refers if— SERVICES.— ‘‘(D) STATUTE OF LIMITATIONS.—The statu- ‘‘(I) an election is in effect under this ‘‘(1) IN GENERAL.—For purposes of this sec- tory period for the assessment of any tax im- clause with respect to the plan; and tion, the term ‘qualified retirement planning posed by this section by reason of paragraph ‘‘(II) as of such date, the value of the assets services’ means any retirement planning ad- (3) or (4) of subsection (a) shall not expire be- of the plan are not less than 125 percent of vice or information provided to an employee fore the date which is 3 years from the later the plan’s current liability (as defined in and his spouse by an employer maintaining a of— paragraph (7)(B)). qualified employer plan. ‘‘(i) the allocation or ownership referred to ‘‘(iii) Information under clause (ii) shall, in ‘‘(2) NONDISCRIMINATION RULE.—Subsection in such paragraph giving rise to such tax, or accordance with regulations, be actuarially (a)(7) shall apply in the case of highly com- ‘‘(ii) the date on which the Secretary is no- adjusted to reflect significant differences in pensated employees only if such services are tified of such allocation or ownership.’’. participants. available on substantially the same terms to ‘‘(iv) An election under clause (ii), once (d) EFFECTIVE DATES.— each member of the group of employees nor- made, shall be irrevocable without the con- (1) IN GENERAL.—The amendments made by mally provided education and information sent of the Secretary of the Treasury.’’. this section shall apply to plan years begin- regarding the employer’s qualified employer FFECTIVE DATE.—The amendments (c) E plan. ning after December 31, 2004. made by this section shall apply to plan XCEPTION FOR CERTAIN PLANS.—In the ‘‘(3) QUALIFIED EMPLOYER PLAN.—For pur- (2) E years beginning after December 31, 2001. case of any— poses of this subsection, the term ‘qualified (A) employee stock ownership plan estab- SEC. 602. ESOP DIVIDENDS MAY BE REINVESTED employer plan’ means a plan, contract, pen- WITHOUT LOSS OF DIVIDEND DE- sion, or account described in section lished after March 14, 2001, or DUCTION. 219(g)(5).’’. (B) employee stock ownership plan estab- (a) IN GENERAL.—Section 404(k)(2)(A) (de- FFECTIVE DATE.—The amendments lished on or before such date if employer se- fining applicable dividends) is amended by (c) E made by this section shall apply to years be- curities held by the plan consist of stock in striking ‘‘or’’ at the end of clause (ii), by re- ginning after December 31, 2001. a corporation with respect to which an elec- designating clause (iii) as clause (iv), and by tion under section 1362(a) of the Internal inserting after clause (ii) the following new SEC. 606. REPORTING SIMPLIFICATION. Revenue Code of 1986 is not in effect on such clause: (a) SIMPLIFIED ANNUAL FILING REQUIRE- date, ‘‘(iii) is, at the election of such partici- MENT FOR OWNERS AND THEIR SPOUSES.— the amendments made by this section shall pants or their beneficiaries— (1) IN GENERAL.—The Secretary of the apply to plan years ending after March 14, ‘‘(I) payable as provided in clause (i) or (ii), Treasury shall modify the requirements for 2001. or filing annual returns with respect to one- participant retirement plans to ensure that TITLE VI—REDUCING REGULATORY ‘‘(II) paid to the plan and reinvested in such plans with assets of $250,000 or less as of BURDENS qualifying employer securities, or’’. (b) EFFECTIVE DATE.—The amendments the close of the plan year need not file a re- SEC. 601. MODIFICATION OF TIMING OF PLAN made by this section shall apply to taxable turn for that year. VALUATIONS. years beginning after December 31, 2000. (2) ONE-PARTICIPANT RETIREMENT PLAN DE- (a) AMENDMENT OF INTERNAL REVENUE SEC. 603. REPEAL OF TRANSITION RULE RELAT- FINED.—For purposes of this subsection, the CODE.—Paragraph (9) of section 412(c)(9) (re- ING TO CERTAIN HIGHLY COM- term ‘‘one-participant retirement plan’’ lating to annual valuation) is amended to PENSATED EMPLOYEES. means a retirement plan that— read as follows: (a) IN GENERAL.—Paragraph (4) of section (A) on the first day of the plan year— ‘‘(9) ANNUAL VALUATION.— 1114(c) of the Tax Reform Act of 1986 is here- (i) covered only the employer (and the em- ‘‘(A) IN GENERAL.—For purposes of this sec- by repealed. ployer’s spouse) and the employer owned the tion, a determination of experience gains and (b) EFFECTIVE DATE.—The repeal made by entire business (whether or not incor- losses and a valuation of the plan’s liability subsection (a) shall apply to plan years be- porated); or shall be made not less frequently than once ginning after December 31, 2001. (ii) covered only one or more partners (and every year, except that such determination SEC. 604. EMPLOYEES OF TAX-EXEMPT ENTITIES. their spouses) in a business partnership (in- shall be made more frequently to the extent (a) IN GENERAL.—The Secretary of the cluding partners in an S or C corporation); required in particular cases under regula- Treasury shall modify Treasury Regulations (B) meets the minimum coverage require- tions prescribed by the Secretary. section 1.410(b)–6(g) to provide that employ- ments of section 410(b) of the Internal Rev- ‘‘(B) VALUATION DATE.— ees of an organization described in section enue Code of 1986 without being combined ‘‘(i) CURRENT YEAR.—Except as provided in 403(b)(1)(A)(i) of the Internal Revenue Code with any other plan of the business that cov- clause (ii), the valuation referred to in sub- of 1986 who are eligible to make contribu- ers the employees of the business; paragraph (A) shall be made as of a date tions under section 403(b) of such Code pursu- (C) does not provide benefits to anyone ex- within the plan year to which the valuation ant to a salary reduction agreement may be cept the employer (and the employer’s refers or within one month prior to the be- treated as excludable with respect to a plan spouse) or the partners (and their spouses); ginning of such year. under section 401(k) or (m) of such Code that (D) does not cover a business that is a ‘‘(ii) ELECTION TO USE PRIOR YEAR VALU- is provided under the same general arrange- member of an affiliated service group, a con- ATION.—The valuation referred to in subpara- ment as a plan under such section 401(k), if— trolled group of corporations, or a group of graph (A) may be made as of a date within (1) no employee of an organization de- businesses under common control; and the plan year prior to the year to which the scribed in section 403(b)(1)(A)(i) of such Code (E) does not cover a business that leases valuation refers if— is eligible to participate in such section employees. ‘‘(I) an election is in effect under this 401(k) plan or section 401(m) plan; and (3) OTHER DEFINITIONS.—Terms used in clause with respect to the plan, and (2) 95 percent of the employees who are not paragraph (2) which are also used in section ‘‘(II) as of such date, the value of the assets employees of an organization described in 414 of the Internal Revenue Code of 1986 shall of the plan are not less than 125 percent of section 403(b)(1)(A)(i) of such Code are eligi- have the respective meanings given such the plan’s current liability (as defined in ble to participate in such plan under such terms by such section. paragraph (7)(B)). section 401(k) or (m). (b) SIMPLIFIED ANNUAL FILING REQUIRE- ‘‘(iii) ADJUSTMENTS.—Information under (b) EFFECTIVE DATE.—The modification re- MENT FOR PLANS WITH FEWER THAN 25 EM- clause (ii) shall, in accordance with regula- quired by subsection (a) shall apply as of the PLOYEES.—In the case of a retirement plan

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00026 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.010 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1761 which covers less than 25 employees on the ‘‘(i) satisfies subparagraph (B), as in effect 1055(c)(7)(A)) is amended by striking ‘‘90- first day of the plan year and meets the re- immediately before the enactment of the day’’ and inserting ‘‘180-day’’. quirements described in subparagraphs (B), Tax Reform Act of 1986, (3) EFFECTIVE DATE.—The amendments (D), and (E) of subsection (a)(2), the Sec- ‘‘(ii) is submitted to the Secretary for a de- made by paragraph (1)(A) and (2) and the retary of the Treasury shall provide for the termination of whether it satisfies the re- modifications required by paragraph (1)(B) filing of a simplified annual return that is quirement described in clause (i), and shall apply to years beginning after Decem- substantially similar to the annual return ‘‘(iii) satisfies conditions prescribed by the ber 31, 2001. required to be filed by a one-participant re- Secretary by regulation that appropriately (b) CONSENT REGULATION INAPPLICABLE TO tirement plan. limit the availability of this subparagraph. CERTAIN DISTRIBUTIONS.— (c) EFFECTIVE DATE.—The provisions of Clause (ii) shall apply only to the extent pro- (1) IN GENERAL.—The Secretary of the this section shall take effect on January 1, Treasury shall modify the regulations under 2002. vided by the Secretary.’’. (2) EFFECTIVE DATES.— section 411(a)(11) of the Internal Revenue SEC. 607. IMPROVEMENT OF EMPLOYEE PLANS Code of 1986 to provide that the description COMPLIANCE RESOLUTION SYSTEM. (A) IN GENERAL.—The amendment made by paragraph (1) shall apply to years beginning of a participant’s right, if any, to defer re- The Secretary of the Treasury shall con- ceipt of a distribution shall also describe the tinue to update and improve the Employee after December 31, 2003. consequences of failing to defer such receipt. Plans Compliance Resolution System (or any (B) CONDITIONS OF AVAILABILITY.—Any con- (2) EFFECTIVE DATE.—The modifications re- successor program) giving special attention dition of availability prescribed by the Sec- quired by paragraph (1) shall apply to years to— retary under regulations prescribed by the beginning after December 31, 2001. (1) increasing the awareness and knowledge Secretary under section 410(b)(1)(D) of the of small employers concerning the avail- Internal Revenue Code of 1986 shall not apply SEC. 612. ANNUAL REPORT DISSEMINATION. ability and use of the program; before the first year beginning not less than (a) REPORT AVAILABLE THROUGH ELEC- (2) taking into account special concerns 120 days after the date on which such condi- TRONIC MEANS.—Section 104(b)(3) of the Em- and circumstances that small employers face tion is prescribed. ployee Retirement Income Security Act of with respect to compliance and correction of (c) LINE OF BUSINESS RULES.—The Sec- 1974 (29 U.S.C. 1024(b)(3)) is amended by add- compliance failures; retary of the Treasury shall, on or before De- ing at the end the following new sentence: (3) extending the duration of the self-cor- cember 31, 2003, modify the existing regula- ‘‘The requirement to furnish information rection period under the Administrative Pol- tions issued under section 414(r) of the Inter- under the previous sentence shall be satisfied icy Regarding Self-Correction for significant nal Revenue Code of 1986 in order to expand if the administrator makes such information compliance failures; (to the extent that the Secretary determines reasonably available through electronic (4) expanding the availability to correct in- appropriate) the ability of a pension plan to means or other new technology.’’. significant compliance failures under the Ad- demonstrate compliance with the line of (b) EFFECTIVE DATE.—The amendment ministrative Policy Regarding Self-Correc- business requirements based upon the facts made by this section shall apply to reports tion during audit; and and circumstances surrounding the design for years beginning after December 31, 2000. (5) assuring that any tax, penalty, or sanc- and operation of the plan, even though the SEC. 623. TECHNICAL CORRECTIONS TO SAVER tion that is imposed by reason of a compli- plan is unable to satisfy the mechanical ACT. ance failure is not excessive and bears a rea- tests currently used to determine compli- Section 517 of the Employee Retirement ance. sonable relationship to the nature, extent, Income Security Act of 1974 (29 U.S.C. 1147) is and severity of the failure. SEC. 610. EXTENSION TO ALL GOVERNMENTAL amended— PLANS OF MORATORIUM ON APPLI- SEC. 608. REPEAL OF THE MULTIPLE USE TEST. (1) in subsection (a), by striking ‘‘2001 and CATION OF CERTAIN NON- 2005 on or after September 1 of each year in- (a) IN GENERAL.—Paragraph (9) of section DISCRIMINATION RULES APPLICA- 401(m) is amended to read as follows: BLE TO STATE AND LOCAL PLANS. volved’’ and inserting ‘‘2001, 2005, and 2009 in ‘‘(9) REGULATIONS.—The Secretary shall (a) IN GENERAL.— the month of September of each year in- prescribe such regulations as may be nec- (1) Subparagraph (G) of section 401(a)(5) volved’’; essary to carry out the purposes of this sub- and subparagraph (H) of section 401(a)(26) are (2) in subsection (b), by adding at the end section and subsection (k), including regula- each amended by striking ‘‘section 414(d))’’ the following new sentence: ‘‘To effectuate tions permitting appropriate aggregation of and all that follows and inserting ‘‘section the purposes of this paragraph, the Secretary plans and contributions.’’. 414(d)).’’. may enter into a cooperative agreement, (b) EFFECTIVE DATE.—The amendment (2) Subparagraph (G) of section 401(k)(3) pursuant to the Federal Grant and Coopera- made by this section shall apply to years be- and paragraph (2) of section 1505(d) of the tive Agreement Act of 1977 (31 U.S.C. 6301 et ginning after December 31, 2001. Taxpayer Relief Act of 1997 are each amend- seq.), with the American Savings Education SEC. 609. FLEXIBILITY IN NONDISCRIMINATION, ed by striking ‘‘maintained by a State or Council.’’; COVERAGE, AND LINE OF BUSINESS local government or political subdivision (3) in subsection (e)(2)— RULES. thereof (or agency or instrumentality there- (A) by striking ‘‘Committee on Labor and (a) NONDISCRIMINATION.— of)’’. Human Resources’’ in subparagraph (D) and (1) IN GENERAL.—The Secretary of the (b) CONFORMING AMENDMENTS.— inserting ‘‘Committee on Health, Education, Treasury shall, by regulation, provide that a (1) The heading for subparagraph (G) of Labor, and Pensions’’; plan shall be deemed to satisfy the require- section 401(a)(5) is amended to read as fol- (B) by striking subparagraph (F) and in- ments of section 401(a)(4) of the Internal lows: ‘‘GOVERNMENTAL PLANS’’. serting the following: Revenue Code of 1986 if such plan satisfies (2) The heading for subparagraph (H) of ‘‘(F) the Chairman and Ranking Member of the facts and circumstances test under sec- section 401(a)(26) is amended to read as fol- the Subcommittee on Labor, Health and tion 401(a)(4) of such Code, as in effect before lows: ‘‘EXCEPTION FOR GOVERNMENTAL Human Services, and Education of the Com- January 1, 1994, but only if— PLANS’’. mittee on Appropriations of the House of (A) the plan satisfies conditions prescribed (3) Subparagraph (G) of section 401(k)(3) is Representatives and the Chairman and by the Secretary to appropriately limit the amended by inserting ‘‘GOVERNMENTAL Ranking Member of the Subcommittee on availability of such test; and PLANS.—’’ after ‘‘(G)’’. Labor, Health and Human Services, and Edu- (B) the plan is submitted to the Secretary (c) EFFECTIVE DATE.—The amendments cation of the Committee on Appropriations for a determination of whether it satisfies made by this section shall apply to years be- of the Senate;’’; such test. ginning after December 31, 2001. (C) by redesignating subparagraph (G) as Subparagraph (B) shall only apply to the ex- SEC. 611. NOTICE AND CONSENT PERIOD RE- subparagraph (J); and tent provided by the Secretary. GARDING DISTRIBUTIONS. (D) by inserting after subparagraph (F) the (2) EFFECTIVE DATES.— (a) EXPANSION OF PERIOD.— following new subparagraphs: (A) REGULATIONS.—The regulation required (1) AMENDMENT OF INTERNAL REVENUE ‘‘(G) the Chairman and Ranking Member of by paragraph (1) shall apply to years begin- CODE.— the Committee on Finance of the Senate; ning after December 31, 2003. (A) IN GENERAL.—Subparagraph (A) of sec- ‘‘(H) the Chairman and Ranking Member of (B) CONDITIONS OF AVAILABILITY.—Any con- tion 417(a)(6) is amended by striking ‘‘90- the Committee on Ways and Means of the dition of availability prescribed by the Sec- day’’ and inserting ‘‘180-day’’. House of Representatives; retary under paragraph (1)(A) shall not apply (B) MODIFICATION OF REGULATIONS.—The ‘‘(I) the Chairman and Ranking Member of before the first year beginning not less than Secretary of the Treasury shall modify the the Subcommittee on Employer-Employee 120 days after the date on which such condi- regulations under sections 402(f), 411(a)(11), Relations of the Committee on Education tion is prescribed. and 417 of the Internal Revenue Code of 1986 and the Workforce of the House of Rep- (b) COVERAGE TEST.— to substitute ‘‘180 days’’ for ‘‘90 days’’ each resentatives; and’’; (1) IN GENERAL.—Section 410(b)(1) (relating place it appears in Treasury Regulations sec- (4) in subsection (e)(3)(A)— to minimum coverage requirements) is tions 1.402(f)–1, 1.411(a)–11(c), and 1.417(e)– (A) by striking ‘‘There shall be no more amended by adding at the end the following: 1(b). than 200 additional participants.’’ and insert- ‘‘(D) In the case that the plan fails to meet (2) AMENDMENT OF ERISA.—Section ing ‘‘The participants in the National Sum- the requirements of subparagraphs (A), (B) 205(c)(7)(A) of the Employee Retirement In- mit shall also include additional partici- and (C), the plan— come Security Act of 1974 (29 U.S.C. pants appointed under this subparagraph.’’;

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00027 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.010 pfrm02 PsN: H02PT1 H1762 CONGRESSIONAL RECORD — HOUSE May 2, 2001 (B) by striking ‘‘one-half shall be ap- graph (4) may elect to transfer a missing par- substantially the same employees as are in pointed by the President,’’ in clause (i) and ticipant’s benefits to the corporation upon the new single-employer plan. inserting ‘‘not more than 100 participants termination of the plan. ‘‘(ii)(I) For purposes of this paragraph, the shall be appointed under this clause by the ‘‘(2) INFORMATION TO THE CORPORATION.—To term ‘small employer’ means an employer President,’’, and by striking ‘‘and’’ at the the extent provided in regulations, the plan which on the first day of any plan year has, end of clause (i); administrator of a plan described in para- in aggregation with all members of the con- (C) by striking ‘‘one-half shall be appointed graph (4) shall, upon termination of the plan, trolled group of such employer, 100 or fewer by the elected leaders of Congress’’ in clause provide the corporation information with re- employees. (ii) and inserting ‘‘not more than 100 partici- spect to benefits of a missing participant if ‘‘(II) In the case of a plan maintained by pants shall be appointed under this clause by the plan transfers such benefits— two or more contributing sponsors that are the elected leaders of Congress’’, and by ‘‘(A) to the corporation, or not part of the same controlled group, the striking the period at the end of clause (ii) ‘‘(B) to an entity other than the corpora- employees of all contributing sponsors and and inserting ‘‘; and’’; tion or a plan described in paragraph controlled groups of such sponsors shall be (D) by adding at the end the following new (4)(B)(ii). aggregated for purposes of determining clause: ‘‘(3) PAYMENT BY THE CORPORATION.—If ben- whether any contributing sponsor is a small ‘‘(iii) The President, in consultation with efits of a missing participant were trans- employer.’’. the elected leaders of Congress referred to in ferred to the corporation under paragraph (c) EFFECTIVE DATE.—The amendments subsection (a), may appoint under this clause (1), the corporation shall, upon location of made by this section shall apply to plans es- additional participants to the National Sum- the participant or beneficiary, pay to the tablished after December 31, 2001. mit. The number of such additional partici- participant or beneficiary the amount trans- SEC. 703. REDUCTION OF ADDITIONAL PBGC PRE- pants appointed under this clause may not ferred (or the appropriate survivor benefit) MIUM FOR NEW AND SMALL PLANS. exceed the lesser of 3 percent of the total either— (a) NEW PLANS.—Subparagraph (E) of sec- number of all additional participants ap- ‘‘(A) in a single sum (plus interest), or tion 4006(a)(3) of the Employee Retirement pointed under this paragraph, or 10. Such ad- ‘‘(B) in such other form as is specified in Income Security Act of 1974 (29 U.S.C. ditional participants shall be appointed from regulations of the corporation. 1306(a)(3)(E)) is amended by adding at the end persons nominated by the organization re- ‘‘(4) PLANS DESCRIBED.—A plan is described the following new clause: ferred to in subsection (b)(2) which is made in this paragraph if— up of private sector businesses and associa- ‘‘(A) the plan is a pension plan (within the ‘‘(v) In the case of a new defined benefit tions partnered with Government entities to meaning of section 3(2))— plan, the amount determined under clause promote long term financial security in re- ‘‘(i) to which the provisions of this section (ii) for any plan year shall be an amount tirement through savings and with which the do not apply (without regard to this sub- equal to the product of the amount deter- Secretary is required thereunder to consult section), and mined under clause (ii) and the applicable and cooperate and shall not be Federal, ‘‘(ii) which is not a plan described in para- percentage. For purposes of this clause, the State, or local government employees.’’; graphs (2) through (11) of section 4021(b), and term ‘applicable percentage’ means— (5) in subsection (e)(3)(B), by striking ‘‘(B) at the time the assets are to be dis- ‘‘(I) 0 percent, for the first plan year. ‘‘January 31, 1998’’ in subparagraph (B) and tributed upon termination, the plan— ‘‘(II) 20 percent, for the second plan year. inserting ‘‘May 1, 2001, May 1, 2005, and May ‘‘(i) has missing participants, and ‘‘(III) 40 percent, for the third plan year. 1, 2009, for each of the subsequent summits, ‘‘(ii) has not provided for the transfer of as- ‘‘(IV) 60 percent, for the fourth plan year. respectively’’; sets to pay the benefits of all missing par- ‘‘(V) 80 percent, for the fifth plan year. (6) in subsection (f)(1)(C), by inserting ticipants to another pension plan (within the For purposes of this clause, a defined benefit ‘‘, no later than 90 days prior to the date of meaning of section 3(2)). plan (as defined in section 3(35)) maintained the commencement of the National Sum- ‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.— by a contributing sponsor shall be treated as mit,’’ after ‘‘comment’’ in paragraph (1)(C); Subsections (a)(1) and (a)(3) shall not apply a new defined benefit plan for each of its (7) in subsection (g), by inserting ‘‘, in con- to a plan described in paragraph (4).’’. first 5 plan years if, during the 36-month pe- sultation with the congressional leaders (b) EFFECTIVE DATE.—The amendment riod ending on the date of the adoption of specified in subsection (e)(2),’’ after ‘‘re- made by this section shall apply to distribu- the plan, the sponsor and each member of port’’; tions made after final regulations imple- any controlled group including the sponsor (8) in subsection (i)— menting subsections (c) and (d) of section (or any predecessor of either) did not estab- (A) by striking ‘‘beginning on or after Oc- 4050 of the Employee Retirement Income Se- lish or maintain a plan to which this title tober 1, 1997’’ in paragraph (1) and inserting curity Act of 1974 (as added by subsection applies with respect to which benefits were ‘‘2001, 2005, and 2009’’; and (a)), respectively, are prescribed. accrued for substantially the same employ- (B) by adding at the end the following new SEC. 702. REDUCED PBGC PREMIUM FOR NEW ees as are in the new plan.’’. paragraph: PLANS OF SMALL EMPLOYERS. (b) SMALL PLANS.—Paragraph (3) of section ‘‘(3) RECEPTION AND REPRESENTATION AU- (a) IN GENERAL.—Subparagraph (A) of sec- 4006(a) of the Employee Retirement Income THORITY.—The Secretary is hereby granted tion 4006(a)(3) of the Employee Retirement Security Act of 1974 (29 U.S.C. 1306(a)), as reception and representation authority lim- Income Security Act of 1974 (29 U.S.C. amended by section 702(b), is amended— ited specifically to the events at the Na- 1306(a)(3)(A)) is amended— (1) by striking ‘‘The’’ in subparagraph tional Summit. The Secretary shall use any (1) in clause (i), by inserting ‘‘other than a (E)(i) and inserting ‘‘Except as provided in private contributions accepted in connection new single-employer plan (as defined in sub- subparagraph (G), the’’, and with the National Summit prior to using paragraph (F)) maintained by a small em- (2) by inserting after subparagraph (F) the funds appropriated for purposes of the Na- ployer (as so defined),’’ after ‘‘single-em- following new subparagraph: ployer plan,’’, tional Summit pursuant to this paragraph.’’; ‘‘(G)(i) In the case of an employer who has (2) in clause (iii), by striking the period at and 25 or fewer employees on the first day of the the end and inserting ‘‘, and’’, and (9) in subsection (k)— plan year, the additional premium deter- (3) by adding at the end the following new (A) by striking ‘‘shall enter into a contract mined under subparagraph (E) for each par- clause: on a sole-source basis’’ and inserting ‘‘may ticipant shall not exceed $5 multiplied by the ‘‘(iv) in the case of a new single-employer enter into a contract on a sole-source basis’’; number of participants in the plan as of the plan (as defined in subparagraph (F)) main- and close of the preceding plan year. tained by a small employer (as so defined) (B) by striking ‘‘fiscal year 1998’’ and in- ‘‘(ii) For purposes of clause (i), whether an serting ‘‘fiscal years 2001, 2005, and 2009’’. for the plan year, $5 for each individual who is a participant in such plan during the plan employer has 25 or fewer employees on the TITLE VII—OTHER ERISA PROVISIONS year.’’. first day of the plan year is determined tak- SEC. 701. MISSING PARTICIPANTS. (b) DEFINITION OF NEW SINGLE-EMPLOYER ing into consideration all of the employees (a) IN GENERAL.—Section 4050 of the Em- PLAN.—Section 4006(a)(3) of the Employee of all members of the contributing sponsor’s ployee Retirement Income Security Act of Retirement Income Security Act of 1974 (29 controlled group. In the case of a plan main- 1974 (29 U.S.C. 1350) is amended by redesig- U.S.C. 1306(a)(3)) is amended by adding at the tained by two or more contributing sponsors, nating subsection (c) as subsection (e) and by end the following new subparagraph: the employees of all contributing sponsors inserting after subsection (b) the following ‘‘(F)(i) For purposes of this paragraph, a and their controlled groups shall be aggre- new subsections: single-employer plan maintained by a con- gated for purposes of determining whether ‘‘(c) MULTIEMPLOYER PLANS.—The corpora- tributing sponsor shall be treated as a new the 25-or-fewer-employees limitation has tion shall prescribe rules similar to the rules single-employer plan for each of its first 5 been satisfied.’’. in subsection (a) for multiemployer plans plan years if, during the 36-month period (c) EFFECTIVE DATES.— covered by this title that terminate under ending on the date of the adoption of such (1) SUBSECTION (a).—The amendments made section 4041A. plan, the sponsor or any member of such by subsection (a) shall apply to plans estab- ‘‘(d) PLANS NOT OTHERWISE SUBJECT TO sponsor’s controlled group (or any prede- lished after December 31, 2001. TITLE.— cessor of either) did not establish or main- (2) SUBSECTION (b).—The amendments made ‘‘(1) TRANSFER TO CORPORATION.—The plan tain a plan to which this title applies with by subsection (b) shall apply to plan years administrator of a plan described in para- respect to which benefits were accrued for beginning after December 31, 2001.

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00028 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.010 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1763 SEC. 704. AUTHORIZATION FOR PBGC TO PAY IN- shall be allocated pro rata among individuals (1) to the same extent that such person is TEREST ON PREMIUM OVERPAY- on the basis of the present value (as of the jointly and severally liable for the applicable MENT REFUNDS. termination date) of their respective benefits recovery amount on which the penalty is (a) IN GENERAL.—Section 4007(b) of the Em- described in that subparagraph.’’. based. ployment Retirement Income Security Act (c) CONFORMING AMENDMENTS.— ‘‘(6) No penalty shall be assessed under this of 1974 (29 U.S.C. 1307(b)) is amended— (1) Section 4021 of the Employee Retire- subsection unless the person against whom (1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’, ment Income Security Act of 1974 (29 U.S.C. the penalty is assessed is given notice and and 1321) is amended— opportunity for a hearing with respect to the (2) by inserting at the end the following (A) in subsection (b)(9), by striking ‘‘as de- violation and applicable recovery amount.’’. new paragraph: fined in section 4022(b)(6)’’, and ‘‘(2) The corporation is authorized to pay, (d) EFFECTIVE DATES.— (B) by adding at the end the following new (1) IN GENERAL.—The amendments made by subject to regulations prescribed by the cor- subsection: poration, interest on the amount of any this section shall apply to any breach of fi- ‘‘(d) For purposes of subsection (b)(9), the duciary responsibility or other violation of overpayment of premium refunded to a des- term ‘substantial owner’ means an indi- ignated payor. Interest under this paragraph part 4 of subtitle B of title I of the Employee vidual who, at any time during the 60-month Retirement Income Security Act of 1974 oc- shall be calculated at the same rate and in period ending on the date the determination the same manner as interest is calculated for curring on or after the date of enactment of is being made— this Act. underpayments under paragraph (1).’’. ‘‘(1) owns the entire interest in an unincor- (b) EFFECTIVE DATE.—The amendment (2) TRANSITION RULE.—In applying the porated trade or business, made by subsection (a) shall apply to inter- amendment made by subsection (b) (relating ‘‘(2) in the case of a partnership, is a part- est accruing for periods beginning not earlier to applicable recovery amount), a breach or ner who owns, directly or indirectly, more than the date of the enactment of this Act. other violation occurring before the date of than 10 percent of either the capital interest enactment of this Act which continues after SEC. 705. SUBSTANTIAL OWNER BENEFITS IN or the profits interest in such partnership, or TERMINATED PLANS. the 180th day after such date (and which may ‘‘(3) in the case of a corporation, owns, di- (a) MODIFICATION OF PHASE-INOFGUAR- have been discontinued at any time during rectly or indirectly, more than 10 percent in ANTEE.—Section 4022(b)(5) of the Employee its existence) shall be treated as having oc- Retirement Income Security Act of 1974 (29 value of either the voting stock of that cor- curred after such date of enactment. poration or all the stock of that corporation. U.S.C. 1322(b)(5)) is amended to read as fol- SEC. 707. BENEFIT SUSPENSION NOTICE. lows: For purposes of paragraph (3), the construc- (a) MODIFICATION OF REGULATION.—The ‘‘(5)(A) For purposes of this paragraph, the tive ownership rules of section 1563(e) of the Secretary of Labor shall modify the regula- term ‘majority owner’ means an individual Internal Revenue Code of 1986 shall apply tion under section 203(a)(3)(B) of the Em- who, at any time during the 60-month period (determined without regard to section ployee Retirement Income Security Act of ending on the date the determination is 1563(e)(3)(C)).’’. 1974 (29 U.S.C. 1053(a)(3)(B)) to provide that being made— (2) Section 4043(c)(7) of such Act (29 U.S.C. the notification required by such regula- ‘‘(i) owns the entire interest in an unincor- 1343(c)(7)) is amended by striking ‘‘section tion— porated trade or business, 4022(b)(6)’’ and inserting ‘‘section 4021(d)’’. (1) in the case of an employee who returns ‘‘(ii) in the case of a partnership, is a part- (d) EFFECTIVE DATES.— to work for a former employer after com- ner who owns, directly or indirectly, 50 per- (1) IN GENERAL.—Except as provided in mencement of payment of benefits under the cent or more of either the capital interest or paragraph (2), the amendments made by this plan shall— the profits interest in such partnership, or section shall apply to plan terminations— (A) be made during the first calendar ‘‘(iii) in the case of a corporation, owns, di- (A) under section 4041(c) of the Employee month or payroll period in which the plan rectly or indirectly, 50 percent or more in Retirement Income Security Act of 1974 (29 withholds payments, and value of either the voting stock of that cor- U.S.C. 1341(c)) with respect to which notices (B) if a reduced rate of future benefit ac- poration or all the stock of that corporation. of intent to terminate are provided under cruals will apply to the returning employee For purposes of clause (iii), the constructive section 4041(a)(2) of such Act (29 U.S.C. (as of the first date of participation in the ownership rules of section 1563(e) of the In- 1341(a)(2)) after December 31, 2001, and plan by the employee after returning to ternal Revenue Code of 1986 shall apply (de- (B) under section 4042 of such Act (29 U.S.C. work), include a statement that the rate of termined without regard to section 1342) with respect to which proceedings are future benefit accruals will be reduced, and 1563(e)(3)(C)). instituted by the corporation after such (2) in the case of any employee who is not ‘‘(B) In the case of a participant who is a date. described in paragraph (1)— majority owner, the amount of benefits guar- (2) CONFORMING AMENDMENTS.—The amend- (A) may be included in the summary plan anteed under this section shall equal the ments made by subsection (c) shall take ef- description for the plan furnished in accord- product of— fect on January 1, 2002. ance with section 104(b) of such Act (29 ‘‘(i) a fraction (not to exceed 1) the numer- SEC. 706. CIVIL PENALTIES FOR BREACH OF FI- U.S.C. 1024(b)), rather than in a separate no- ator of which is the number of years from DUCIARY RESPONSIBILITY. tice, and the later of the effective date or the adoption (a) IMPOSITION AND AMOUNT OF PENALTY (B) need not include a copy of the relevant date of the plan to the termination date, and MADE DISCRETIONARY.—Section 502(l)(1) of plan provisions. the denominator of which is 10, and the Employee Retirement Income Security (b) EFFECTIVE DATE.—The modification ‘‘(ii) the amount of benefits that would be Act of 1974 (29 U.S.C. 1132(l)(1)) is amended— made under this section shall apply to plan guaranteed under this section if the partici- (1) by striking ‘‘shall’’ and inserting years beginning after December 31, 2001. pant were not a majority owner.’’. ‘‘may’’, and TITLE VIII—PLAN AMENDMENTS (b) MODIFICATION OF ALLOCATION OF AS- (2) by striking ‘‘equal to’’ and inserting SETS.— ‘‘not greater than’’. SEC. 801. PROVISIONS RELATING TO PLAN (1) Section 4044(a)(4)(B) of the Employee (b) APPLICABLE RECOVERY AMOUNT.—Sec- AMENDMENTS. Retirement Income Security Act of 1974 (29 tion 502(l)(2) of such Act (29 U.S.C. 1132(l)(2)) (a) IN GENERAL.—If this section applies to U.S.C. 1344(a)(4)(B)) is amended by striking is amended to read as follows: any plan or contract amendment— ‘‘section 4022(b)(5)’’ and inserting ‘‘section ‘‘(2) For purposes of paragraph (1), the (1) such plan or contract shall be treated as 4022(b)(5)(B)’’. term ‘applicable recovery amount’ means being operated in accordance with the terms (2) Section 4044(b) of such Act (29 U.S.C. any amount which is recovered from any fi- of the plan during the period described in 1344(b)) is amended— duciary or other person (or from any other subsection (b)(2)(A); and (A) by striking ‘‘(5)’’ in paragraph (2) and person on behalf of any such fiduciary or (2) except as provided by the Secretary of inserting ‘‘(4), (5),’’, and other person) with respect to a breach or vio- the Treasury, such plan shall not fail to (B) by redesignating paragraphs (3) lation described in paragraph (1) on or after meet the requirements of section 411(d)(6) of through (6) as paragraphs (4) through (7), re- the 30th day following receipt by such fidu- the Internal Revenue Code of 1986 or section spectively, and by inserting after paragraph ciary or other person of written notice from 204(g) of the Employee Retirement Income (2) the following new paragraph: the Secretary of the violation, whether paid Security Act of 1974 by reason of such ‘‘(3) If assets available for allocation under voluntarily or by order of a court in a judi- amendment. paragraph (4) of subsection (a) are insuffi- cial proceeding instituted by the Secretary (b) AMENDMENTS TO WHICH SECTION AP- cient to satisfy in full the benefits of all in- under subsection (a)(2) or (a)(5). The Sec- PLIES.— dividuals who are described in that para- retary may, in the Secretary’s sole discre- (1) IN GENERAL.—This section shall apply to graph, the assets shall be allocated first to tion, extend the 30-day period described in any amendment to any plan or annuity con- benefits described in subparagraph (A) of the preceding sentence.’’. tract which is made— that paragraph. Any remaining assets shall (c) OTHER RULES.—Section 502(l) of the Em- (A) pursuant to any amendment made by then be allocated to benefits described in ployee Retirement Income Security Act of this Act, or pursuant to any regulation subparagraph (B) of that paragraph. If assets 1974 (29 U.S.C. 1132(l)) is amended by adding issued under this Act; and allocated to such subparagraph (B) are insuf- at the end the following new paragraph: (B) on or before the last day of the first ficient to satisfy in full the benefits de- ‘‘(5) A person shall be jointly and severally plan year beginning on or after January 1, scribed in that subparagraph, the assets liable for the penalty described in paragraph 2004.

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00029 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.010 pfrm02 PsN: H02PT1 H1764 CONGRESSIONAL RECORD — HOUSE May 2, 2001 In the case of a governmental plan (as de- Sec. 302. Equitable treatment for contribu- Sec. 612. Annual report dissemination. fined in section 414(d) of the Internal Rev- tions of employees to defined Sec. 613. Technical corrections to SAVER enue Code of 1986), this paragraph shall be contribution plans. Act. applied by substituting ‘‘2006’’ for ‘‘2004’’. Sec. 303. Faster vesting of certain employer TITLE VII—OTHER ERISA PROVISIONS (2) CONDITIONS.—This section shall not matching contributions. Sec. 701. Missing participants. apply to any amendment unless— Sec. 304. Modifications to minimum dis- Sec. 702. Reduced PBGC premium for new (A) during the period— tribution rules. plans of small employers. (i) beginning on the date the legislative or Sec. 305. Clarification of tax treatment of Sec. 703. Reduction of additional PBGC pre- regulatory amendment described in para- division of section 457 plan ben- mium for new and small plans. graph (1)(A) takes effect (or in the case of a efits upon divorce. Sec. 704. Authorization for PBGC to pay in- plan or contract amendment not required by Sec. 306. Provisions relating to hardship dis- terest on premium overpay- such legislative or regulatory amendment, tributions. ment refunds. the effective date specified by the plan); and Sec. 307. Waiver of tax on nondeductible Sec. 705. Substantial owner benefits in ter- (ii) ending on the date described in para- contributions for domestic or minated plans. graph (1)(B) (or, if earlier, the date the plan similar workers. Sec. 706. Civil penalties for breach of fidu- or contract amendment is adopted), TITLE IV—INCREASING PORTABILITY ciary responsibility. Sec. 707. Benefit suspension notice. FOR PARTICIPANTS the plan or contract is operated as if such Sec. 708. Studies. plan or contract amendment were in effect; Sec. 401. Rollovers allowed among various TITLE VIII—PLAN AMENDMENTS and types of plans. (B) such plan or contract amendment ap- Sec. 402. Rollovers of IRAs into workplace Sec. 801. Provisions relating to plan amend- plies retroactively for such period. retirement plans. ments. The SPEAKER pro tempore (Mr. Sec. 403. Rollovers of after-tax contribu- TITLE I—INDIVIDUAL RETIREMENT THORNBERRY). In lieu of the amend- tions. ACCOUNTS ment recommended by the Committee Sec. 404. Hardship exception to 60-day rule. SEC. 101. MODIFICATION OF IRA CONTRIBUTION on Ways and Means and the amend- Sec. 405. Treatment of forms of distribution. LIMITS. Sec. 406. Rationalization of restrictions on (a) INCREASE IN CONTRIBUTION LIMIT.— ment recommended by the Committee distributions. (1) IN GENERAL.—Paragraph (1)(A) of sec- on Education and the Workforce print- Sec. 407. Purchase of service credit in gov- tion 219(b) (relating to maximum amount of ed in the bill, the amendment in the ernmental defined benefit deduction) is amended by striking ‘‘$2,000’’ nature of a substitute printed in the plans. and inserting ‘‘the deductible amount’’. CONGRESSIONAL RECORD and numbered 1 Sec. 408. Employers may disregard rollovers (2) DEDUCTIBLE AMOUNT.—Section 219(b) is is adopted. for purposes of cash-out amended by adding at the end the following The text of H.R. 10, as amended pur- amounts. new paragraph: suant to House Resolution 127 is as fol- Sec. 409. Minimum distribution and inclu- ‘‘(5) DEDUCTIBLE AMOUNT.—For purposes of lows: sion requirements for section paragraph (1)(A)— ‘‘(A) IN GENERAL.—The deductible amount SECTION 1. SHORT TITLE; REFERENCES; TABLE 457 plans. OF CONTENTS. TITLE V—STRENGTHENING PENSION shall be determined in accordance with the (a) SHORT TITLE.—This Act may be cited as SECURITY AND ENFORCEMENT following table: the ‘‘Comprehensive Retirement Security Sec. 501. Repeal of percent of current liabil- ‘‘For taxable years The deductible and Pension Reform Act of 2001’’. ity funding limit. beginning in: amount is: 2002 ...... $3,000 (b) AMENDMENT OF 1986 CODE.—Except as Sec. 502. Maximum contribution deduction otherwise expressly provided, whenever in 2003 ...... $4,000 rules modified and applied to 2004 and thereafter ...... $5,000. this Act an amendment or repeal is ex- all defined benefit plans. pressed in terms of an amendment to, or re- Sec. 503. Excise tax relief for sound pension ‘‘(B) CATCH-UP CONTRIBUTIONS FOR INDIVID- peal of, a section or other provision, the ref- funding. UALS 50 OR OLDER.—In the case of an indi- erence shall be considered to be made to a Sec. 504. Excise tax on failure to provide no- vidual who has attained the age of 50 before section or other provision of the Internal tice by defined benefit plans the close of the taxable year, the deductible Revenue Code of 1986. significantly reducing future amount for taxable years beginning in 2002 (c) TABLE OF CONTENTS.—The table of con- or 2003 shall be $5,000. tents of this Act is as follows: benefit accruals. Sec. 505. Treatment of multiemployer plans ‘‘(C) COST-OF-LIVING ADJUSTMENT.— Sec. 1. Short title; references; table of con- under section 415. ‘‘(i) IN GENERAL.—In the case of any tax- tents. Sec. 506. Protection of investment of em- able year beginning in a calendar year after TITLE I—INDIVIDUAL RETIREMENT ployee contributions to 401(k) 2004, the $5,000 amount under subparagraph ACCOUNT PROVISIONS plans. (A) shall be increased by an amount equal Sec. 101. Modification of IRA contribution Sec. 507. Periodic pension benefits state- to— limits. ments. ‘‘(I) such dollar amount, multiplied by TITLE II—EXPANDING COVERAGE Sec. 508. Prohibited allocations of stock in S ‘‘(II) the cost-of-living adjustment deter- mined under section 1(f )(3) for the calendar Sec. 201. Increase in benefit and contribu- corporation ESOP. year in which the taxable year begins, deter- tion limits. TITLE VI—REDUCING REGULATORY mined by substituting ‘calendar year 2003’ Sec. 202. Plan loans for subchapter S owners, BURDENS partners, and sole proprietors. for ‘calendar year 1992’ in subparagraph (B) Sec. 203. Modification of top-heavy rules. Sec. 601. Modification of timing of plan thereof. Sec. 204. Elective deferrals not taken into valuations. ‘‘(ii) ROUNDING RULES.—If any amount after account for purposes of deduc- Sec. 602. ESOP dividends may be reinvested adjustment under clause (i) is not a multiple tion limits. without loss of dividend deduc- of $500, such amount shall be rounded to the Sec. 205. Repeal of coordination require- tion. next lower multiple of $500.’’. ments for deferred compensa- Sec. 603. Repeal of transition rule relating (b) CONFORMING AMENDMENTS.— tion plans of State and local to certain highly compensated (1) Section 408(a)(1) is amended by striking governments and tax-exempt employees. ‘‘in excess of $2,000 on behalf of any indi- organizations. Sec. 604. Employees of tax-exempt entities. vidual’’ and inserting ‘‘on behalf of any indi- Sec. 206. Elimination of user fee for requests Sec. 605. Clarification of treatment of em- vidual in excess of the amount in effect for to IRS regarding pension plans. ployer-provided retirement ad- such taxable year under section 219(b)(1)(A)’’. Sec. 207. Deduction limits. vice. (2) Section 408(b)(2)(B) is amended by strik- Sec. 208. Option to treat elective deferrals as Sec. 606. Reporting simplification. ing ‘‘$2,000’’ and inserting ‘‘the dollar after-tax contributions. Sec. 607. Improvement of employee plans amount in effect under section 219(b)(1)(A)’’. Sec. 209. Availability of qualified plans to compliance resolution system. (3) Section 408(b) is amended by striking self-employed individuals who Sec. 608. Repeal of the multiple use test. ‘‘$2,000’’ in the matter following paragraph are exempt from the self-em- Sec. 609. Flexibility in nondiscrimination, (4) and inserting ‘‘the dollar amount in effect ployment tax by reason of their coverage, and line of business under section 219(b)(1)(A)’’. religious beliefs. rules. (4) Section 408( j) is amended by striking Sec. 210. Certain nonresident aliens excluded Sec. 610. Extension to all governmental ‘‘$2,000’’. in applying minimum coverage plans of moratorium on appli- (5) Section 408(p)(8) is amended by striking requirements. cation of certain non- ‘‘$2,000’’ and inserting ‘‘the dollar amount in TITLE III—ENHANCING FAIRNESS FOR discrimination rules applicable effect under section 219(b)(1)(A)’’. WOMEN to State and local plans. (c) EFFECTIVE DATE.—The amendments Sec. 301. Catch-up contributions for individ- Sec. 611. Notice and consent period regard- made by this section shall apply to taxable uals age 50 or over. ing distributions. years beginning after December 31, 2001.

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TITLE II—EXPANDING COVERAGE (1) COMPENSATION LIMIT.—Sections ‘‘For taxable years The applicable SEC. 201. INCREASE IN BENEFIT AND CONTRIBU- 401(a)(17), 404(l), 408(k), and 505(b)(7) are each beginning in dollar amount: TION LIMITS. amended by striking ‘‘$150,000’’ each place it calendar year: (a) DEFINED BENEFIT PLANS.— appears and inserting ‘‘$200,000’’. 2002 ...... $11,000 2003 ...... $12,000 (1) DOLLAR LIMIT.— (2) BASE PERIOD AND ROUNDING OF COST-OF- (A) Subparagraph (A) of section 415(b)(1) LIVING ADJUSTMENT.—Subparagraph (B) of 2004 ...... $13,000 (relating to limitation for defined benefit section 401(a)(17) is amended— 2005 ...... $14,000 2006 or thereafter ...... $15,000. plans) is amended by striking ‘‘$90,000’’ and (A) by striking ‘‘October 1, 1993’’ and in- inserting ‘‘$160,000’’. serting ‘‘July 1, 2001’’; and ‘‘(B) COST-OF-LIVING ADJUSTMENTS.—In the (B) Subparagraphs (C) and (D) of section (B) by striking ‘‘$10,000’’ both places it ap- case of taxable years beginning after Decem- 415(b)(2) are each amended by striking pears and inserting ‘‘$5,000’’. ber 31, 2006, the Secretary shall adjust the ‘‘$90,000’’ each place it appears in the head- (d) ELECTIVE DEFERRALS.— $15,000 amount under subparagraph (A) at the ings and the text and inserting ‘‘$160,000’’. (1) IN GENERAL.—Paragraph (1) of section same time and in the same manner as under (C) Paragraph (7) of section 415(b) (relating 402(g) (relating to limitation on exclusion for section 415(d), except that the base period to benefits under certain collectively bar- elective deferrals) is amended to read as fol- shall be the calendar quarter beginning July gained plans) is amended by striking ‘‘the lows: 1, 2005, and any increase under this para- greater of $68,212 or one-half the amount oth- ‘‘(1) IN GENERAL.— graph which is not a multiple of $500 shall be erwise applicable for such year under para- ‘‘(A) LIMITATION.—Notwithstanding sub- rounded to the next lowest multiple of graph (1)(A) for ‘$90,000’’’ and inserting ‘‘one- sections (e)(3) and (h)(1)(B), the elective de- $500.’’. half the amount otherwise applicable for ferrals of any individual for any taxable year (f) SIMPLE RETIREMENT ACCOUNTS.— such year under paragraph (1)(A) for shall be included in such individual’s gross (1) LIMITATION.—Clause (ii) of section ‘$160,000’’’. income to the extent the amount of such de- 408(p)(2)(A) (relating to general rule for (2) LIMIT REDUCED WHEN BENEFIT BEGINS BE- ferrals for the taxable year exceeds the ap- qualified salary reduction arrangement) is FORE AGE 62.—Subparagraph (C) of section plicable dollar amount. amended by striking ‘‘$6,000’’ and inserting 415(b)(2) is amended by striking ‘‘the social ‘‘(B) APPLICABLE DOLLAR AMOUNT.—For ‘‘the applicable dollar amount’’. security retirement age’’ each place it ap- purposes of subparagraph (A), the applicable (2) APPLICABLE DOLLAR AMOUNT.—Subpara- pears in the heading and text and inserting dollar amount shall be the amount deter- graph (E) of 408(p)(2) is amended to read as ‘‘age 62’’ and by striking the second sen- mined in accordance with the following follows: tence. table: ‘‘(E) APPLICABLE DOLLAR AMOUNT; COST-OF- (3) LIMIT INCREASED WHEN BENEFIT BEGINS ‘‘For taxable years The applicable LIVING ADJUSTMENT.— ‘‘(i) IN GENERAL.—For purposes of subpara- AFTER AGE 65.—Subparagraph (D) of section beginning in dollar amount: 415(b)(2) is amended by striking ‘‘the social graph (A)(ii), the applicable dollar amount calendar year: shall be the amount determined in accord- security retirement age’’ each place it ap- 2002 ...... $11,000 pears in the heading and text and inserting ance with the following table: 2003 ...... $12,000 ‘‘age 65’’. ‘‘For taxable years The applicable 2004 ...... $13,000 (4) COST-OF-LIVING ADJUSTMENTS.—Sub- beginning in dollar amount: section (d) of section 415 (related to cost-of- 2005 ...... $14,000 calendar year: living adjustments) is amended— 2006 or thereafter ...... $15,000.’’. 2002 ...... $7,000 (A) by striking ‘‘$90,000’’ in paragraph (2) COST-OF-LIVING ADJUSTMENT.—Para- 2003 ...... $8,000 (1)(A) and inserting ‘‘$160,000’’; and graph (5) of section 402(g) is amended to read 2004 ...... $9,000 (B) in paragraph (3)(A)— as follows: 2005 or thereafter ...... $10,000. (i) by striking ‘‘$90,000’’ in the heading and ‘‘(5) COST-OF-LIVING ADJUSTMENT.—In the ‘‘(ii) COST-OF-LIVING ADJUSTMENT.—In the inserting ‘‘$160,000’’; and case of taxable years beginning after Decem- case of a year beginning after December 31, (ii) by striking ‘‘October 1, 1986’’ and in- ber 31, 2006, the Secretary shall adjust the 2005, the Secretary shall adjust the $10,000 serting ‘‘July 1, 2001’’. $15,000 amount under paragraph (1)(B) at the amount under clause (i) at the same time (5) CONFORMING AMENDMENTS.— same time and in the same manner as under and in the same manner as under section (A) Section 415(b)(2) is amended by striking section 415(d), except that the base period 415(d), except that the base period taken into subparagraph (F). shall be the calendar quarter beginning July account shall be the calendar quarter begin- (B) Section 415(b)(9) is amended to read as 1, 2005, and any increase under this para- ning July 1, 2004, and any increase under this follows: graph which is not a multiple of $500 shall be subparagraph which is not a multiple of $500 ‘‘(9) SPECIAL RULE FOR COMMERCIAL AIRLINE rounded to the next lowest multiple of shall be rounded to the next lower multiple PILOTS.— $500.’’. of $500.’’. ‘‘(A) IN GENERAL.—Except as provided in (3) CONFORMING AMENDMENTS.— (3) CONFORMING AMENDMENTS.— subparagraph (B), in the case of any partici- (A) Section 402(g) (relating to limitation (A) Subclause (I) of section 401(k)(11)(B)(i) pant who is a commercial airline pilot, if, as on exclusion for elective deferrals), as is amended by striking ‘‘$6,000’’ and inserting of the time of the participant’s retirement, amended by paragraphs (1) and (2), is further ‘‘the amount in effect under section regulations prescribed by the Federal Avia- amended by striking paragraph (4) and redes- 408(p)(2)(A)(ii)’’. tion Administration require an individual to ignating paragraphs (5), (6), (7), (8), and (9) as (B) Section 401(k)(11) is amended by strik- separate from service as a commercial air- paragraphs (4), (5), (6), (7), and (8), respec- ing subparagraph (E). line pilot after attaining any age occurring tively. (g) ROUNDING RULE RELATING TO DEFINED on or after age 60 and before age 62, para- (B) Paragraph (2) of section 457(c) is BENEFIT PLANS AND DEFINED CONTRIBUTION graph (2)(C) shall be applied by substituting amended by striking ‘‘402(g)(8)(A)(iii)’’ and PLANS.—Paragraph (4) of section 415(d) is such age for age 62. inserting ‘‘402(g)(7)(A)(iii)’’. amended to read as follows: ‘‘(B) INDIVIDUALS WHO SEPARATE FROM (C) Clause (iii) of section 501(c)(18)(D) is ‘‘(4) ROUNDING.— SERVICE BEFORE AGE 60.—If a participant de- amended by striking ‘‘(other than paragraph ‘‘(A) $160,000 AMOUNT.—Any increase under scribed in subparagraph (A) separates from (4) thereof)’’. subparagraph (A) of paragraph (1) which is service before age 60, the rules of paragraph (e) DEFERRED COMPENSATION PLANS OF not a multiple of $5,000 shall be rounded to (2)(C) shall apply.’’. STATE AND LOCAL GOVERNMENTS AND TAX-EX- the next lowest multiple of $5,000. (C) Section 415(b)(10)(C)(i) is amended by EMPT ORGANIZATIONS.— ‘‘(B) $40,000 AMOUNT.—Any increase under striking ‘‘applied without regard to para- (1) IN GENERAL.—Section 457 (relating to subparagraph (C) of paragraph (1) which is graph (2)(F)’’. deferred compensation plans of State and not a multiple of $1,000 shall be rounded to (b) DEFINED CONTRIBUTION PLANS.— local governments and tax-exempt organiza- the next lowest multiple of $1,000.’’. (1) DOLLAR LIMIT.—Subparagraph (A) of tions) is amended— (h) EFFECTIVE DATE.—The amendments section 415(c)(1) (relating to limitation for (A) in subsections (b)(2)(A) and (c)(1) by made by this section shall apply to years be- defined contribution plans) is amended by striking ‘‘$7,500’’ each place it appears and ginning after December 31, 2001. striking ‘‘$30,000’’ and inserting ‘‘$40,000’’. inserting ‘‘the applicable dollar amount’’; SEC. 202. PLAN LOANS FOR SUBCHAPTER S OWN- (2) COST-OF-LIVING ADJUSTMENTS.—Sub- and ERS, PARTNERS, AND SOLE PROPRI- section (d) of section 415 (related to cost-of- (B) in subsection (b)(3)(A) by striking ETORS. living adjustments) is amended— ‘‘$15,000’’ and inserting ‘‘twice the dollar (a) AMENDMENT OF INTERNAL REVENUE (A) by striking ‘‘$30,000’’ in paragraph amount in effect under subsection (b)(2)(A)’’. CODE.—Subparagraph (B) of section 4975(f)(6) (1)(C) and inserting ‘‘$40,000’’; and (2) APPLICABLE DOLLAR AMOUNT; COST-OF- (relating to exemptions not to apply to cer- (B) in paragraph (3)(D)— LIVING ADJUSTMENT.—Paragraph (15) of sec- tain transactions) is amended by adding at (i) by striking ‘‘$30,000’’ in the heading and tion 457(e) is amended to read as follows: the end the following new clause: inserting ‘‘$40,000’’; and ‘‘(15) APPLICABLE DOLLAR AMOUNT.— ‘‘(iii) LOAN EXCEPTION.—For purposes of (ii) by striking ‘‘October 1, 1993’’ and in- ‘‘(A) IN GENERAL.—The applicable dollar subparagraph (A)(i), the term ‘owner-em- serting ‘‘July 1, 2001’’. amount shall be the amount determined in ployee’ shall only include a person described (c) QUALIFIED TRUSTS.— accordance with the following table: in subclause (II) or (III) of clause (i).’’.

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(b) AMENDMENT OF ERISA.—Section ‘‘(i) a cash or deferred arrangement which SEC. 206. ELIMINATION OF USER FEE FOR RE- 408(d)(2) of the Employee Retirement Income meets the requirements of section 401(k)(12), QUESTS TO IRS REGARDING PEN- Security Act of 1974 (29 U.S.C. 1108(d)(2)) is and SION PLANS. amended by adding at the end the following ‘‘(ii) matching contributions with respect (a) ELIMINATION OF CERTAIN USER FEES.— new subparagraph: to which the requirements of section The Secretary of the Treasury or the Sec- ‘‘(C) For purposes of paragraph (1)(A), the 401(m)(11) are met. retary’s delegate shall not require payment term ‘owner-employee’ shall only include a of user fees under the program established If, but for this subparagraph, a plan would be person described in clause (ii) or (iii) of sub- under section 10511 of the Revenue Act of treated as a top-heavy plan because it is a paragraph (A).’’. 1987 for requests to the Internal Revenue member of an aggregation group which is a (c) EFFECTIVE DATE.—The amendments Service for determination letters with re- top-heavy group, contributions under the made by this section shall apply to years be- spect to the qualified status of a pension plan may be taken into account in deter- ginning after December 31, 2001. benefit plan maintained solely by one or mining whether any other plan in the group SEC. 203. MODIFICATION OF TOP-HEAVY RULES. more eligible employers or any trust which meets the requirements of subsection (a) SIMPLIFICATION OF DEFINITION OF KEY is part of the plan. The preceding sentence (c)(2).’’. EMPLOYEE.— shall not apply to any request— (1) IN GENERAL.—Section 416(i)(1)(A) (defin- (e) FROZEN PLAN EXEMPT FROM MINIMUM (1) made after the later of— ing key employee) is amended— BENEFIT REQUIREMENT.—Subparagraph (C) of (A) the fifth plan year the pension benefit (A) by striking ‘‘or any of the 4 preceding section 416(c)(1) (relating to defined benefit plan is in existence; or plan years’’ in the matter preceding clause plans) is amended— (B) the end of any remedial amendment pe- (i); (A) by striking ‘‘clause (ii)’’ in clause (i) riod with respect to the plan beginning with- (B) by striking clause (i) and inserting the and inserting ‘‘clause (ii) or (iii)’’; and in the first 5 plan years; or following: (B) by adding at the end the following: (2) made by the sponsor of any prototype ‘‘(i) an officer of the employer having an ‘‘(iii) EXCEPTION FOR FROZEN PLAN.—For or similar plan which the sponsor intends to annual compensation greater than $150,000,’’; purposes of determining an employee’s years market to participating employers. of service with the employer, any service (C) by striking clause (ii) and redesig- (b) PENSION BENEFIT PLAN.—For purposes nating clauses (iii) and (iv) as clauses (ii) and with the employer shall be disregarded to of this section, the term ‘‘pension benefit (iii), respectively; and the extent that such service occurs during a plan’’ means a pension, profit-sharing, stock (D) by striking the second sentence in the plan year when the plan benefits (within the bonus, annuity, or employee stock ownership matter following clause (iii), as redesignated meaning of section 410(b)) no key employee plan. or former key employee.’’. by subparagraph (C). (c) ELIGIBLE EMPLOYER.—For purposes of (2) CONFORMING AMENDMENT.—Section (f) ELIMINATION OF FAMILY ATTRIBUTION.— this section, the term ‘‘eligible employer’’ 416(i)(1)(B)(iii) is amended by striking ‘‘and Section 416(i)(1)(B) (defining 5-percent has the same meaning given such term in subparagraph (A)(ii)’’. owner) is amended by adding at the end the section 408(p)(2)(C)(i)(I) of the Internal Rev- (b) MATCHING CONTRIBUTIONS TAKEN INTO following new clause: enue Code of 1986. The determination of ACCOUNT FOR MINIMUM CONTRIBUTION RE- ‘‘(iv) FAMILY ATTRIBUTION DISREGARDED.— whether an employer is an eligible employer QUIREMENTS.—Section 416(c)(2)(A) (relating Solely for purposes of applying this para- under this section shall be made as of the to defined contribution plans) is amended by graph (and not for purposes of any provision date of the request described in subsection adding at the end the following: ‘‘Employer of this title which incorporates by reference (a). matching contributions (as defined in sec- the definition of a key employee or 5-percent (d) DETERMINATION OF AVERAGE FEES tion 401(m)(4)(A)) shall be taken into account owner under this paragraph), section 318 CHARGED.—For purposes of any determina- for purposes of this subparagraph.’’. shall be applied without regard to subsection tion of average fees charged, any request to (c) DISTRIBUTIONS DURING LAST YEAR BE- (a)(1) thereof in determining whether any which subsection (a) applies shall not be FORE DETERMINATION DATE TAKEN INTO AC- person is a 5-percent owner.’’. COUNT.— taken into account. (g) EFFECTIVE DATE.—The amendments (1) IN GENERAL.—Paragraph (3) of section (e) EFFECTIVE DATE.—The provisions of made by this section shall apply to years be- this section shall apply with respect to re- 416(g) is amended to read as follows: ginning after December 31, 2001. ‘‘(3) DISTRIBUTIONS DURING LAST YEAR BE- quests made after December 31, 2001. FORE DETERMINATION DATE TAKEN INTO AC- SEC. 204. ELECTIVE DEFERRALS NOT TAKEN SEC. 207. DEDUCTION LIMITS. INTO ACCOUNT FOR PURPOSES OF COUNT.— (a) STOCK BONUS AND PROFIT SHARING DEDUCTION LIMITS. ‘‘(A) IN GENERAL.—For purposes of deter- TRUSTS.— mining— (a) IN GENERAL.—Section 404 (relating to (1) IN GENERAL.—Subclause (I) of section ‘‘(i) the present value of the cumulative ac- deduction for contributions of an employer 404(a)(3)(A)(i) (relating to stock bonus and crued benefit for any employee, or to an employees’ trust or annuity plan and profit sharing trusts) is amended by striking ‘‘(ii) the amount of the account of any em- compensation under a deferred payment ‘‘15 percent’’ and inserting ‘‘20 percent’’. ployee, plan) is amended by adding at the end the (2) CONFORMING AMENDMENT.—Subpara- following new subsection: such present value or amount shall be in- graph (C) of section 404(h)(1) is amended by ‘‘(n) ELECTIVE DEFERRALS NOT TAKEN INTO creased by the aggregate distributions made striking ‘‘15 percent’’ each place it appears ACCOUNT FOR PURPOSES OF DEDUCTION LIM- with respect to such employee under the and inserting ‘‘20 percent’’. ITS.—Elective deferrals (as defined in section plan during the 1-year period ending on the (b) COMPENSATION.— 402(g)(3)) shall not be subject to any limita- determination date. The preceding sentence (1) IN GENERAL.—Section 404(a) (relating to tion contained in paragraph (3), (7), or (9) of shall also apply to distributions under a ter- general rule) is amended by adding at the subsection (a), and such elective deferrals minated plan which if it had not been termi- end the following: shall not be taken into account in applying nated would have been required to be in- ‘‘(12) DEFINITION OF COMPENSATION.—For any such limitation to any other contribu- cluded in an aggregation group. purposes of paragraphs (3), (7), (8), and (9), tions.’’. ‘‘(B) 5-YEAR PERIOD IN CASE OF IN-SERVICE the term ‘compensation otherwise paid or ac- (b) EFFECTIVE DATE.—The amendment DISTRIBUTION.—In the case of any distribu- crued during the taxable year’ shall include tion made for a reason other than separation made by this section shall apply to years be- amounts treated as ‘participant’s compensa- from service, death, or disability, subpara- ginning after December 31, 2001. tion’ under subparagraph (C) or (D) of sec- graph (A) shall be applied by substituting ‘5- SEC. 205. REPEAL OF COORDINATION REQUIRE- tion 415(c)(3).’’. year period’ for ‘1-year period’.’’. MENTS FOR DEFERRED COMPENSA- (2) CONFORMING AMENDMENTS.— (2) BENEFITS NOT TAKEN INTO ACCOUNT.— TION PLANS OF STATE AND LOCAL (A) Subparagraph (B) of section 404(a)(3) is Subparagraph (E) of section 416(g)(4) is GOVERNMENTS AND TAX-EXEMPT amended by striking the last sentence. ORGANIZATIONS. amended— (B) Clause (i) of section 4972(c)(6)(B) is (a) IN GENERAL.—Subsection (c) of section (A) by striking ‘‘LAST 5 YEARS’’ in the head- amended by striking ‘‘(within the meaning of 457 (relating to deferred compensation plans ing and inserting ‘‘LAST YEAR BEFORE DETER- section 404(a))’’ and inserting ‘‘(within the of State and local governments and tax-ex- MINATION DATE’’; and meaning of section 404(a) and as adjusted (B) by striking ‘‘5-year period’’ and insert- empt organizations), as amended by section under section 404(a)(12))’’. ing ‘‘1-year period’’. 201, is amended to read as follows: (c) EFFECTIVE DATE.—The amendments (d) DEFINITION OF TOP-HEAVY PLANS.— ‘‘(c) LIMITATION.—The maximum amount of made by this section shall apply to years be- Paragraph (4) of section 416(g) (relating to the compensation of any one individual ginning after December 31, 2001. other special rules for top-heavy plans) is which may be deferred under subsection (a) SEC. 208. OPTION TO TREAT ELECTIVE DEFER- amended by adding at the end the following during any taxable year shall not exceed the RALS AS AFTER-TAX CONTRIBU- new subparagraph: amount in effect under subsection (b)(2)(A) TIONS. ‘‘(H) CASH OR DEFERRED ARRANGEMENTS (as modified by any adjustment provided (a) IN GENERAL.—Subpart A of part I of USING ALTERNATIVE METHODS OF MEETING NON- under subsection (b)(3)).’’. subchapter D of chapter 1 (relating to de- DISCRIMINATION REQUIREMENTS.—The term (b) EFFECTIVE DATE.—The amendment ferred compensation, etc.) is amended by in- ‘top-heavy plan’ shall not include a plan made by subsection (a) shall apply to years serting after section 402 the following new which consists solely of— beginning after December 31, 2001. section:

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00032 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.005 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1767 ‘‘SEC. 402A. OPTIONAL TREATMENT OF ELECTIVE designated plus account shall not be treated (g) and by inserting after subsection (e) the DEFERRALS AS PLUS CONTRIBU- as a qualified distribution if such payment or following new subsection: TIONS. distribution is made within the 5-taxable- ‘‘(f) DESIGNATED PLUS CONTRIBUTIONS.—The ‘‘(a) GENERAL RULE.—If an applicable re- year period beginning with the earlier of— Secretary shall require the plan adminis- tirement plan includes a qualified plus con- ‘‘(i) the first taxable year for which the in- trator of each applicable retirement plan (as tribution program— dividual made a designated plus contribution defined in section 402A) to make such re- ‘‘(1) any designated plus contribution made to any designated plus account established turns and reports regarding designated plus by an employee pursuant to the program for such individual under the same applica- contributions (as so defined) to the Sec- shall be treated as an elective deferral for ble retirement plan, or retary, participants and beneficiaries of the purposes of this chapter, except that such ‘‘(ii) if a rollover contribution was made to plan, and such other persons as the Sec- contribution shall not be excludable from such designated plus account from a des- retary may prescribe.’’. gross income, and ignated plus account previously established (e) CONFORMING AMENDMENTS.— ‘‘(2) such plan (and any arrangement which for such individual under another applicable (1) Section 408A(e) is amended by adding is part of such plan) shall not be treated as retirement plan, the first taxable year for after the first sentence the following new failing to meet any requirement of this chap- which the individual made a designated plus sentence: ‘‘Such term includes a rollover ter solely by reason of including such pro- contribution to such previously established contribution described in section gram. account. 402A(c)(3)(A).’’. ‘‘(b) QUALIFIED PLUS CONTRIBUTION PRO- ‘‘(C) DISTRIBUTIONS OF EXCESS DEFERRALS (2) The table of sections for subpart A of GRAM.—For purposes of this section— AND CONTRIBUTIONS AND EARNINGS THEREON.— part I of subchapter D of chapter 1 is amend- ‘‘(1) IN GENERAL.—The term ‘qualified plus The term ‘qualified distribution’ shall not ed by inserting after the item relating to contribution program’ means a program include any distribution of an excess deferral section 402 the following new item: under which an employee may elect to make under section 402(g)(2) or any excess con- designated plus contributions in lieu of all or ‘‘Sec. 402A. Optional treatment of elective tribution under section 401(k)(8), and any in- a portion of elective deferrals the employee deferrals as plus contribu- come on the excess deferral or contribution. is otherwise eligible to make under the ap- tions.’’. ‘‘(3) TREATMENT OF DISTRIBUTIONS OF CER- plicable retirement plan. (f) EFFECTIVE DATE.—The amendments TAIN EXCESS DEFERRALS.—Notwithstanding ‘‘(2) SEPARATE ACCOUNTING REQUIRED.—A section 72, if any excess deferral under sec- made by this section shall apply to taxable program shall not be treated as a qualified tion 402(g)(2) attributable to a designated years beginning after December 31, 2001. plus contribution program unless the appli- plus contribution is not distributed on or be- SEC. 209. AVAILABILITY OF QUALIFIED PLANS TO cable retirement plan— fore the 1st April 15 following the close of SELF-EMPLOYED INDIVIDUALS WHO ‘‘(A) establishes separate accounts (‘des- ARE EXEMPT FROM THE SELF-EM- the taxable year in which such excess defer- ignated plus accounts’) for the designated PLOYMENT TAX BY REASON OF ral is made, the amount of such excess defer- plus contributions of each employee and any THEIR RELIGIOUS BELIEFS. ral shall— earnings properly allocable to the contribu- (a) IN GENERAL.—Subparagraph (A) of sec- ‘‘(A) not be treated as investment in the tions, and tion 401(c)(2) (defining earned income) is contract, and ‘‘(B) maintains separate recordkeeping amended by adding at the end thereof the ‘‘(B) be included in gross income for the with respect to each account. following new sentence: ‘‘For purposes of taxable year in which such excess is distrib- ‘‘(c) DEFINITIONS AND RULES RELATING TO this part only (other than sections 419 and uted. DESIGNATED PLUS CONTRIBUTIONS.—For pur- 419A), this subparagraph shall be applied as poses of this section— ‘‘(4) AGGREGATION RULES.—Section 72 shall if the term ‘trade or business’ for purposes of ‘‘(1) DESIGNATED PLUS CONTRIBUTION.—The be applied separately with respect to dis- section 1402 included service described in sec- term ‘designated plus contribution’ means tributions and payments from a designated tion 1402(c)(6).’’. any elective deferral which— plus account and other distributions and (b) SIMPLE RETIREMENT ACCOUNTS.—Clause ‘‘(A) is excludable from gross income of an payments from the plan. (ii) of section 408(p)(6)(A) (defining self-em- employee without regard to this section, and ‘‘(e) OTHER DEFINITIONS.—For purposes of ployed) is amended by adding at the end the ‘‘(B) the employee designates (at such time this section— following new sentence: ‘‘The preceding sen- and in such manner as the Secretary may ‘‘(1) APPLICABLE RETIREMENT PLAN.—The tence shall be applied as if the term ‘trade or prescribe) as not being so excludable. term ‘applicable retirement plan’ means— business’ for purposes of section 1402 in- ‘‘(2) DESIGNATION LIMITS.—The amount of ‘‘(A) an employees’ trust described in sec- cluded service described in section elective deferrals which an employee may tion 401(a) which is exempt from tax under 1402(c)(6).’’. designate under paragraph (1) shall not ex- section 501(a), and (c) EFFECTIVE DATE.—The amendments ceed the excess (if any) of— ‘‘(B) a plan under which amounts are con- made by this section shall apply to taxable ‘‘(A) the maximum amount of elective de- tributed by an individual’s employer for an years beginning after December 31, 2001. ferrals excludable from gross income of the annuity contract described in section 403(b). SEC. 210. CERTAIN NONRESIDENT ALIENS EX- employee for the taxable year (without re- ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elec- CLUDED IN APPLYING MINIMUM gard to this section), over tive deferral’ means any elective deferral de- COVERAGE REQUIREMENTS. ‘‘(B) the aggregate amount of elective de- scribed in subparagraph (A) or (C) of section (a) IN GENERAL.—Subparagraph (C) of sec- ferrals of the employee for the taxable year 402(g)(3).’’. tion 410(b)(3) (relating to exclusion of certain which the employee does not designate under (b) EXCESS DEFERRALS.—Section 402(g) (re- employees) is amended by inserting ‘‘, deter- paragraph (1). lating to limitation on exclusion for elective mined without regard to the reference to ‘‘(3) ROLLOVER CONTRIBUTIONS.— deferrals) is amended— subchapter D in the last sentence thereof’’ ‘‘(A) IN GENERAL.—A rollover contribution (1) by adding at the end of paragraph (1)(A) after ‘‘section 861(a)(3)’’. of any payment or distribution from a des- (as added by section 201(d)(1)) the following (b) EFFECTIVE DATE.—The amendment ignated plus account which is otherwise al- new sentence: ‘‘The preceding sentence shall made by subsection (a) shall apply to plan lowable under this chapter may be made not apply to so much of such excess as does years beginning after December 31, 2001. only if the contribution is to— not exceed the designated plus contributions TITLE III—ENHANCING FAIRNESS FOR ‘‘(i) another designated plus account of the of the individual for the taxable year.’’; and WOMEN individual from whose account the payment (2) by inserting ‘‘(or would be included but SEC. 301. CATCH-UP CONTRIBUTIONS FOR INDI- or distribution was made, or for the last sentence thereof)’’ after ‘‘para- VIDUALS AGE 50 OR OVER. ‘‘(ii) a Roth IRA of such individual. graph (1)’’ in paragraph (2)(A). (a) IN GENERAL.—Section 414 (relating to OLLOVERS ‘‘(B) COORDINATION WITH LIMIT.—Any roll- (c) R .—Subparagraph (B) of sec- definitions and special rules) is amended by over contribution to a designated plus ac- tion 402(c)(8) is amended by adding at the end adding at the end the following new sub- count under subparagraph (A) shall not be the following: section: taken into account for purposes of paragraph ‘‘If any portion of an eligible rollover dis- ‘‘(v) CATCH-UP CONTRIBUTIONS FOR INDIVID- (1). tribution is attributable to payments or dis- UALS AGE 50 OR OVER.— ‘‘(d) DISTRIBUTION RULES.—For purposes of tributions from a designated plus account (as ‘‘(1) IN GENERAL.—An applicable employer this title— defined in section 402A), an eligible retire- plan shall not be treated as failing to meet ‘‘(1) EXCLUSION.—Any qualified distribu- ment plan with respect to such portion shall any requirement of this title solely because tion from a designated plus account shall not include only another designated plus account the plan permits an eligible participant to be includible in gross income. and a Roth IRA.’’. make additional elective deferrals in any ‘‘(2) QUALIFIED DISTRIBUTION.—For purposes (d) REPORTING REQUIREMENTS.— plan year. of this subsection— (1) W–2 INFORMATION.—Section 6051(a)(8) is ‘‘(2) LIMITATION ON AMOUNT OF ADDITIONAL ‘‘(A) IN GENERAL.—The term ‘qualified dis- amended by inserting ‘‘, including the DEFERRALS.—A plan shall not permit addi- tribution’ has the meaning given such term amount of designated plus contributions (as tional elective deferrals under paragraph (1) by section 408A(d)(2)(A) (without regard to defined in section 402A)’’ before the comma for any year in an amount greater than the clause (iv) thereof). at the end. lesser of— ‘‘(B) DISTRIBUTIONS WITHIN NONEXCLUSION (2) INFORMATION.—Section 6047 is amended ‘‘(A) $5,000, or PERIOD.—A payment or distribution from a by redesignating subsection (f) as subsection ‘‘(B) the excess (if any) of—

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00033 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.005 pfrm02 PsN: H02PT1 H1768 CONGRESSIONAL RECORD — HOUSE May 2, 2001 ‘‘(i) the participant’s compensation for the SEC. 302. EQUITABLE TREATMENT FOR CON- (i) in paragraph (3)(E) by striking ‘‘limita- year, over TRIBUTIONS OF EMPLOYEES TO DE- tions under section 415(c)’’ and inserting ‘‘ap- ‘‘(ii) any other elective deferrals of the FINED CONTRIBUTION PLANS. plicable limitation under paragraph (7)’’, and (a) EQUITABLE TREATMENT.— participant for such year which are made (ii) by adding at the end the following new (1) IN GENERAL.—Subparagraph (B) of sec- without regard to this subsection. paragraph: tion 415(c)(1) (relating to limitation for de- ‘‘(3) TREATMENT OF CONTRIBUTIONS.—In the ‘‘(7) APPLICABLE LIMITATION.— fined contribution plans) is amended by ‘‘(A) IN GENERAL.—For purposes of para- case of any contribution to a plan under striking ‘‘25 percent’’ and inserting ‘‘100 per- paragraph (1), such contribution shall not, graph (3)(E), the applicable limitation under cent’’. this paragraph with respect to a participant with respect to the year in which the con- (2) APPLICATION TO SECTION 403(b).—Section tribution is made— is an amount equal to the lesser of— 403(b) is amended— ‘‘(i) $30,000, or ‘‘(A) be subject to any otherwise applicable (A) by striking ‘‘the exclusion allowance limitation contained in section 402(g), ‘‘(ii) 25 percent of the participant’s com- for such taxable year’’ in paragraph (1) and pensation (as defined in section 415(c)(3)). 402(h)(2), 404(a), 404(h), 408(p)(2)(A)(ii), 415, or inserting ‘‘the applicable limit under section ‘‘(B) COST-OF-LIVING ADJUSTMENT.—The 457, or 415’’; Secretary shall adjust annually the $30,000 ‘‘(B) be taken into account in applying (B) by striking paragraph (2); and amount under subparagraph (A)(i) at the such limitations to other contributions or (C) by inserting ‘‘or any amount received same time and in the same manner as under benefits under such plan or any other such by a former employee after the fifth taxable section 415(d), except that the base period plan. year following the taxable year in which shall be the calendar quarter beginning Octo- ‘‘(4) APPLICATION OF NONDISCRIMINATION such employee was terminated’’ before the ber 1, 1993, and any increase under this sub- RULES.— period at the end of the second sentence of paragraph which is not a multiple of $5,000 ‘‘(A) IN GENERAL.—An applicable employer paragraph (3). shall be rounded to the next lowest multiple plan shall not be treated as failing to meet (3) CONFORMING AMENDMENTS.— of $5,000.’’. (A) Subsection (f) of section 72 is amended the nondiscrimination requirements under (4) EFFECTIVE DATE.—The amendments section 401(a)(4) with respect to benefits, by striking ‘‘section 403(b)(2)(D)(iii))’’ and in- made by this subsection shall apply to years rights, and features if the plan allows all eli- serting ‘‘section 403(b)(2)(D)(iii), as in effect beginning after December 31, 2001. gible participants to make the same election before the enactment of the Comprehensive (b) SPECIAL RULES FOR SECTIONS 403(b) AND with respect to the additional elective defer- Retirement Security and Pension Reform 408.— rals under this subsection. Act of 2001)’’. (1) IN GENERAL.—Subsection (k) of section (B) Section 404(a)(10)(B) is amended by ‘‘(B) AGGREGATION.—For purposes of sub- 415 is amended by adding at the end the fol- paragraph (A), all plans maintained by em- striking ‘‘, the exclusion allowance under lowing new paragraph: section 403(b)(2),’’. ployers who are treated as a single employer ‘‘(4) SPECIAL RULES FOR SECTIONS 403(B) AND (C) Section 404(j) is amended by adding at under subsection (b), (c), (m), or (o) of sec- 408.—For purposes of this section, any annu- the end the following new paragraph: tion 414 shall be treated as 1 plan. ity contract described in section 403(b) for ‘‘(3) SPECIAL RULE FOR MONEY PURCHASE ‘‘(5) ELIGIBLE PARTICIPANT.—For purposes the benefit of a participant shall be treated PLANS.—For purposes of paragraph (1)(B), in as a defined contribution plan maintained by of this subsection, the term ‘eligible partici- the case of a defined contribution plan which pant’ means, with respect to any plan year, each employer with respect to which the par- is subject to the funding standards of section ticipant has the control required under sub- a participant in a plan— 412, section 415(c)(1)(B) shall be applied by ‘‘(A) who has attained the age of 50 before section (b) or (c) of section 414 (as modified substituting ‘25 percent’ for ‘100 percent’.’’. by subsection (h)). For purposes of this sec- the close of the plan year, and (D) Section 415(a)(2) is amended by striking ‘‘(B) with respect to whom no other elec- tion, any contribution by an employer to a ‘‘, and the amount of the contribution for simplified employee pension plan for an indi- tive deferrals may (without regard to this such portion shall reduce the exclusion al- subsection) be made to the plan for the plan vidual for a taxable year shall be treated as lowance as provided in section 403(b)(2)’’. an employer contribution to a defined con- year by reason of the application of any limi- (E) Section 415(c)(3) is amended by adding tation or other restriction described in para- tribution plan for such individual for such at the end the following new subparagraph: year.’’. graph (3) or comparable limitation contained ‘‘(E) ANNUITY CONTRACTS.—In the case of (2) EFFECTIVE DATE.— in the terms of the plan. an annuity contract described in section (A) IN GENERAL.—The amendment made by ‘‘(6) OTHER DEFINITIONS AND RULES.—For 403(b), the term ‘participant’s compensation’ paragraph (1) shall apply to limitation years purposes of this subsection— means the participant’s includible com- beginning after December 31, 1999. ‘‘(A) APPLICABLE EMPLOYER PLAN.—The pensation determined under section (B) EXCLUSION ALLOWANCE.—Effective for term ‘applicable employer plan’ means— 403(b)(3).’’. limitation years beginning in 2000, in the ‘‘(i) an employees’ trust described in sec- (F) Section 415(c) is amended by striking case of any annuity contract described in tion 401(a) which is exempt from tax under paragraph (4). section 403(b) of the Internal Revenue Code section 501(a), (G) Section 415(c)(7) is amended to read as of 1986, the amount of the contribution dis- ‘‘(ii) a plan under which amounts are con- follows: qualified by reason of section 415(g) of such tributed by an individual’s employer for an ‘‘(7) CERTAIN CONTRIBUTIONS BY CHURCH Code shall reduce the exclusion allowance as annuity contract described in section 403(b), PLANS NOT TREATED AS EXCEEDING LIMIT.— provided in section 403(b)(2) of such Code. ‘‘(iii) an eligible deferred compensation ‘‘(A) IN GENERAL.—Notwithstanding any (3) MODIFICATION OF 403(b) EXCLUSION AL- plan under section 457 of an eligible em- other provision of this subsection, at the LOWANCE TO CONFORM TO 415 MODIFICATION.— ployer as defined in section 457(e)(1)(A), and election of a participant who is an employee The Secretary of the Treasury shall modify ‘‘(iv) an arrangement meeting the require- of a church or a convention or association of the regulations regarding the exclusion al- ments of section 408 (k) or (p). churches, including an organization de- lowance under section 403(b)(2) of the Inter- ‘‘(B) ELECTIVE DEFERRAL.—The term ‘elec- scribed in section 414(e)(3)(B)(ii), contribu- nal Revenue Code of 1986 to render void the tive deferral’ has the meaning given such tions and other additions for an annuity con- requirement that contributions to a defined term by subsection (u)(2)(C). tract or retirement income account de- benefit pension plan be treated as previously ‘‘(C) EXCEPTION FOR SECTION 457 PLANS.— scribed in section 403(b) with respect to such excluded amounts for purposes of the exclu- This subsection shall not apply to an appli- participant, when expressed as an annual ad- sion allowance. For taxable years beginning cable employer plan described in subpara- dition to such participant’s account, shall be after December 31, 1999, such regulations graph (A)(iii) for any year to which section treated as not exceeding the limitation of shall be applied as if such requirement were 457(b)(3) applies. paragraph (1) if such annual addition is not void. ‘‘(D) COST-OF-LIVING ADJUSTMENT.—In the in excess of $10,000. (c) DEFERRED COMPENSATION PLANS OF case of a year beginning after December 31, ‘‘(B) $40,000 AGGREGATE LIMITATION.—The STATE AND LOCAL GOVERNMENTS AND TAX-EX- 2006, the Secretary shall adjust annually the total amount of additions with respect to EMPT ORGANIZATIONS.— $5,000 amount in paragraph (2)(A) for in- any participant which may be taken into ac- (1) IN GENERAL.—Subparagraph (B) of sec- creases in the cost-of-living at the same time count for purposes of this subparagraph for tion 457(b)(2) (relating to salary limitation and in the same manner as adjustments all years may not exceed $40,000. on eligible deferred compensation plans) is under section 415(d); except that the base pe- ‘‘(C) ANNUAL ADDITION.—For purposes of amended by striking ‘‘331⁄3 percent’’ and in- riod taken into account shall be the calendar this paragraph, the term ‘annual addition’ serting ‘‘100 percent’’. quarter beginning July 1, 2005, and any in- has the meaning given such term by para- (2) EFFECTIVE DATE.—The amendment crease under this subparagraph which is not graph (2).’’. made by this subsection shall apply to years a multiple of $500 shall be rounded to the (H) Subparagraph (B) of section 402(g)(7) beginning after December 31, 2001. next lower multiple of $500.’’. (as redesignated by section 201) is amended SEC. 303. FASTER VESTING OF CERTAIN EM- by inserting before the period at the end the PLOYER MATCHING CONTRIBU- (b) EFFECTIVE DATE.—The amendment following: ‘‘(as in effect before the enact- TIONS. made by this section shall apply to contribu- ment of the Comprehensive Retirement Se- (a) AMENDMENT OF INTERNAL REVENUE tions in taxable years beginning after De- curity and Pension Reform Act of 2001)’’. CODE.—Section 411(a) (relating to minimum cember 31, 2001. (I) Section 664(g) is amended— vesting standards) is amended—

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00034 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.005 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1769 (1) in paragraph (2) in the matter preceding (i) and redesignating clauses (ii), (iii), and 402(e)(1)(A) shall apply to such distribution subparagraph (A), by striking ‘‘A plan’’ and (iv) as clauses (i), (ii), and (iii), respectively. or payment.’’. inserting ‘‘Except as provided in paragraph (2) CONFORMING CHANGES.— (d) EFFECTIVE DATE.—The amendments (12), a plan’’; and (A) Clause (i) of section 401(a)(9)(B) (as so made by this section shall apply to transfers, (2) by adding at the end the following: redesignated) is amended— distributions, and payments made after De- ‘‘(12) FASTER VESTING FOR MATCHING CON- (i) by striking ‘‘FOR OTHER CASES’’ in the cember 31, 2001. TRIBUTIONS.—In the case of matching con- heading; and SEC. 306. PROVISIONS RELATING TO HARDSHIP tributions (as defined in section (ii) by striking ‘‘the distribution of the em- DISTRIBUTIONS. 401(m)(4)(A)), paragraph (2) shall be applied— ployee’s interest has begun in accordance (a) SAFE HARBOR RELIEF.— ‘‘(A) by substituting ‘3 years’ for ‘5 years’ with subparagraph (A)(ii)’’ and inserting ‘‘his (1) IN GENERAL.—The Secretary of the in subparagraph (A), and entire interest has been distributed to him’’. Treasury shall revise the regulations relat- ‘‘(B) by substituting the following table for (B) Clause (ii) of section 401(a)(9)(B) (as so ing to hardship distributions under section the table contained in subparagraph (B): redesignated) is amended by striking ‘‘clause 401(k)(2)(B)(i)(IV) of the Internal Revenue The nonforfeitable (ii)’’ and inserting ‘‘clause (i)’’. Code of 1986 to provide that the period an ‘‘Years of service: percentage is: (C) Clause (iii) of section 401(a)(9)(B) (as so employee is prohibited from making elective 2 ...... 20 redesignated) is amended— and employee contributions in order for a 3 ...... 40 (i) by striking ‘‘clause (iii)(I)’’ and insert- distribution to be deemed necessary to sat- 4 ...... 60 ing ‘‘clause (ii)(I)’’; isfy financial need shall be equal to 6 5 ...... 80 (ii) by striking ‘‘clause (iii)(III)’’ in sub- months. 6 ...... 100.’’. clause (I) and inserting ‘‘clause (ii)(III)’’; (2) EFFECTIVE DATE.—The revised regula- (b) AMENDMENT OF ERISA.—Section 203(a) (iii) by striking ‘‘the date on which the em- tions under this subsection shall apply to of the Employee Retirement Income Secu- ployee would have attained age 701⁄2,’’ in sub- years beginning after December 31, 2001. rity Act of 1974 (29 U.S.C. 1053(a)) is amend- clause (I) and inserting ‘‘April 1 of the cal- (b) HARDSHIP DISTRIBUTIONS NOT TREATED ed— endar year following the calendar year in AS ELIGIBLE ROLLOVER DISTRIBUTIONS.— (1) in paragraph (2), in the matter pre- which the spouse attains 701⁄2,’’; and (1) MODIFICATION OF DEFINITION OF ELIGIBLE ceding subparagraph (A), by striking ‘‘A (iv) by striking ‘‘the distributions to such ROLLOVER.—Subparagraph (C) of section plan’’ and inserting ‘‘Except as provided in spouse begin,’’ in subclause (II) and inserting 402(c)(4) (relating to eligible rollover dis- paragraph (4), a plan’’, and ‘‘his entire interest has been distributed to tribution) is amended to read as follows: (2) by adding at the end the following: him,’’. ‘‘(C) any distribution which is made upon ‘‘(4) In the case of matching contributions (3) EFFECTIVE DATE.— hardship of the employee.’’. (as defined in section 401(m)(4)(A) of the In- (A) IN GENERAL.—Except as provided in (2) EFFECTIVE DATE.—The amendment ternal Revenue Code of 1986), paragraph (2) subparagraph (B), the amendments made by made by this subsection shall apply to dis- shall be applied— this subsection shall apply to years begin- tributions made after December 31, 2001. ‘‘(A) by substituting ‘3 years’ for ‘5 years’ ning after December 31, 2001. SEC. 307. WAIVER OF TAX ON NONDEDUCTIBLE in subparagraph (A), and (B) DISTRIBUTIONS TO SURVIVING SPOUSE.— CONTRIBUTIONS FOR DOMESTIC OR ‘‘(B) by substituting the following table for (i) IN GENERAL.—In the case of an employee SIMILAR WORKERS. the table contained in subparagraph (B): described in clause (ii), distributions to the (a) IN GENERAL.—Section 4972(c)(6) (relat- The nonforfeitable surviving spouse of the employee shall not be ing to exceptions to nondeductible contribu- ‘‘Years of service: percentage is: required to commence prior to the date on tions), as amended by section 502, is amended 2 ...... 20 which such distributions would have been re- by striking ‘‘or’’ at the end of subparagraph 3 ...... 40 quired to begin under section 401(a)(9)(B) of (A), by striking the period and inserting ‘‘, 4 ...... 60 and’’ at the end of subparagraph (B), and by 5 ...... 80 the Internal Revenue Code of 1986 (as in ef- 6 ...... 100.’’. fect on the day before the date of the enact- inserting after subparagraph (B) the fol- ment of this Act). lowing new subparagraph: (c) EFFECTIVE DATES.— (ii) CERTAIN EMPLOYEES.—An employee is ‘‘(C) so much of the contributions to a sim- (1) IN GENERAL.—Except as provided in ple retirement account (within the meaning paragraph (2), the amendments made by this described in this clause if such employee dies of section 408(p)) or a simple plan (within the section shall apply to contributions for plan before— meaning of section 401(k)(11)) which are not years beginning after December 31, 2001. (I) the date of the enactment of this Act, and deductible when contributed solely because (2) COLLECTIVE BARGAINING AGREEMENTS.— such contributions are not made in connec- In the case of a plan maintained pursuant to (II) the required beginning date (within the tion with a trade or business of the em- one or more collective bargaining agree- meaning of section 401(a)(9)(C) of the Inter- ployer.’’ ments between employee representatives and nal Revenue Code of 1986) of the employee. (b) EXCLUSION OF CERTAIN CONTRIBU- one or more employers ratified by the date of (c) REDUCTION IN EXCISE TAX.— TIONS.—Section 4972(c)(6) is amended by add- the enactment of this Act, the amendments (1) IN GENERAL.—Subsection (a) of section ing at the end the following new sentence: made by this section shall not apply to con- 4974 is amended by striking ‘‘50 percent’’ and ‘‘Subparagraph (C) shall not apply to con- tributions on behalf of employees covered by inserting ‘‘10 percent’’. tributions made on behalf of the employer or any such agreement for plan years beginning (2) EFFECTIVE DATE.—The amendment a member of the employer’s family (as de- before the earlier of— made by this subsection shall apply to years fined in section 447(e)(1)).’’. (A) the later of— beginning after December 31, 2001. (c) NO INFERENCE.—Nothing in the amend- (i) the date on which the last of such col- SEC. 305. CLARIFICATION OF TAX TREATMENT OF ments made by this section shall be con- lective bargaining agreements terminates DIVISION OF SECTION 457 PLAN BEN- strued to infer the proper treatment of non- (determined without regard to any extension EFITS UPON DIVORCE. deductible contributions under the laws in thereof on or after such date of the enact- (a) IN GENERAL.—Section 414(p)(11) (relat- effect before such amendments. ment); or ing to application of rules to governmental (d) EFFECTIVE DATE.—The amendments (ii) January 1, 2002; or and church plans) is amended— (1) by inserting ‘‘or an eligible deferred made by this section shall apply to taxable (B) January 1, 2006. years beginning after December 31, 2001. (3) SERVICE REQUIRED.—With respect to any compensation plan (within the meaning of plan, the amendments made by this section section 457(b))’’ after ‘‘subsection (e))’’; and TITLE IV—INCREASING PORTABILITY FOR shall not apply to any employee before the (2) in the heading, by striking ‘‘GOVERN- PARTICIPANTS date that such employee has 1 hour of serv- MENTAL AND CHURCH PLANS’’ and inserting SEC. 401. ROLLOVERS ALLOWED AMONG VAR- ice under such plan in any plan year to ‘‘CERTAIN OTHER PLANS’’. IOUS TYPES OF PLANS. which the amendments made by this section (b) WAIVER OF CERTAIN DISTRIBUTION RE- (a) ROLLOVERS FROM AND TO SECTION 457 apply. QUIREMENTS.—Paragraph (10) of section 414(p) PLANS.— SEC. 304. MODIFICATIONS TO MINIMUM DIS- is amended by striking ‘‘and section 409(d)’’ (1) ROLLOVERS FROM SECTION 457 PLANS.— TRIBUTION RULES. and inserting ‘‘section 409(d), and section (A) IN GENERAL.—Section 457(e) (relating to (a) LIFE EXPECTANCY TABLES.—The Sec- 457(d)’’. other definitions and special rules) is amend- retary of the Treasury shall modify the life (c) TAX TREATMENT OF PAYMENTS FROM A ed by adding at the end the following: expectancy tables under the regulations re- SECTION 457 PLAN.—Subsection (p) of section ‘‘(16) ROLLOVER AMOUNTS.— lating to minimum distribution require- 414 is amended by redesignating paragraph ‘‘(A) GENERAL RULE.—In the case of an eli- ments under sections 401(a)(9), 408(a)(6) and (12) as paragraph (13) and inserting after gible deferred compensation plan established (b)(3), 403(b)(10), and 457(d)(2) of the Internal paragraph (11) the following new paragraph: and maintained by an employer described in Revenue Code to reflect current life expect- ‘‘(12) TAX TREATMENT OF PAYMENTS FROM A subsection (e)(1)(A), if— ancy. SECTION 457 PLAN.—If a distribution or pay- ‘‘(i) any portion of the balance to the cred- (b) REPEAL OF RULE WHERE DISTRIBUTIONS ment from an eligible deferred compensation it of an employee in such plan is paid to such HAD BEGUN BEFORE DEATH OCCURS.— plan described in section 457(b) is made pur- employee in an eligible rollover distribution (1) IN GENERAL.—Subparagraph (B) of sec- suant to a qualified domestic relations order, (within the meaning of section 402(c)(4) with- tion 401(a)(9) is amended by striking clause rules similar to the rules of section out regard to subparagraph (C) thereof),

VerDate 02-MAY-2001 01:34 May 03, 2001 Jkt 089060 PO 00000 Frm 00035 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.005 pfrm02 PsN: H02PT1 H1770 CONGRESSIONAL RECORD — HOUSE May 2, 2001 ‘‘(ii) the employee transfers any portion of cent additional tax on early distributions (8) Section 408(a)(1) is amended by striking the property such employee receives in such from qualified retirement plans) is amended ‘‘or 403(b)(8),’’ and inserting ‘‘403(b)(8), or distribution to an eligible retirement plan by adding at the end the following new para- 457(e)(16)’’. described in section 402(c)(8)(B), and graph: (9) Subparagraphs (A) and (B) of section ‘‘(iii) in the case of a distribution of prop- ‘‘(9) SPECIAL RULE FOR ROLLOVERS TO SEC- 415(b)(2) are each amended by striking ‘‘and erty other than money, the amount so trans- TION 457 PLANS.—For purposes of this sub- 408(d)(3)’’ and inserting ‘‘403(b)(8), 408(d)(3), ferred consists of the property distributed, section, a distribution from an eligible de- and 457(e)(16)’’. then such distribution (to the extent so ferred compensation plan (as defined in sec- (10) Section 415(c)(2) is amended by strik- transferred) shall not be includible in gross tion 457(b)) of an eligible employer described ing ‘‘and 408(d)(3)’’ and inserting ‘‘408(d)(3), income for the taxable year in which paid. in section 457(e)(1)(A) shall be treated as a and 457(e)(16)’’. ‘‘(B) CERTAIN RULES MADE APPLICABLE.— distribution from a qualified retirement plan (11) Section 4973(b)(1)(A) is amended by The rules of paragraphs (2) through (7) (other described in section 4974(c)(1) to the extent striking ‘‘or 408(d)(3)’’ and inserting than paragraph (4)(C)) and (9) of section that such distribution is attributable to an ‘‘408(d)(3), or 457(e)(16)’’. 402(c) and section 402(f) shall apply for pur- amount transferred to an eligible deferred (f) EFFECTIVE DATE; SPECIAL RULE.— poses of subparagraph (A). compensation plan from a qualified retire- (1) EFFECTIVE DATE.—The amendments ‘‘(C) REPORTING.—Rollovers under this ment plan (as defined in section 4974(c)).’’. made by this section shall apply to distribu- paragraph shall be reported to the Secretary (b) ALLOWANCE OF ROLLOVERS FROM AND TO tions after December 31, 2001. in the same manner as rollovers from quali- 403(b) PLANS.— (2) REASONABLE NOTICE.—No penalty shall fied retirement plans (as defined in section (1) ROLLOVERS FROM SECTION 403(b) PLANS.— be imposed on a plan for the failure to pro- 4974(c)).’’. Section 403(b)(8)(A)(ii) (relating to rollover vide the information required by the amend- (B) DEFERRAL LIMIT DETERMINED WITHOUT amounts) is amended by striking ‘‘such dis- ment made by subsection (c) with respect to REGARD TO ROLLOVER AMOUNTS.—Section tribution’’ and all that follows and inserting any distribution made before the date that is 457(b)(2) (defining eligible deferred com- ‘‘such distribution to an eligible retirement 90 days after the date on which the Secretary pensation plan) is amended by inserting plan described in section 402(c)(8)(B), and’’. of the Treasury issues a safe harbor rollover ‘‘(other than rollover amounts)’’ after ‘‘tax- (2) ROLLOVERS TO SECTION 403(b) PLANS.— notice after the date of the enactment of this able year’’. Section 402(c)(8)(B) (defining eligible retire- Act, if the administrator of such plan makes (C) DIRECT ROLLOVER.—Paragraph (1) of ment plan), as amended by subsection (a), is a reasonable attempt to comply with such section 457(d) is amended by striking ‘‘and’’ amended by striking ‘‘and’’ at the end of requirement. at the end of subparagraph (A), by striking clause (iv), by striking the period at the end (3) SPECIAL RULE.—Notwithstanding any the period at the end of subparagraph (B) and of clause (v) and inserting ‘‘, and’’, and by in- other provision of law, subsections (h)(3) and inserting ‘‘, and’’, and by inserting after sub- serting after clause (v) the following new (h)(5) of section 1122 of the Tax Reform Act paragraph (B) the following: clause: of 1986 shall not apply to any distribution ‘‘(C) in the case of a plan maintained by an ‘‘(vi) an annuity contract described in sec- from an eligible retirement plan (as defined employer described in subsection (e)(1)(A), tion 403(b).’’. in clause (iii) or (iv) of section 402(c)(8)(B) of the plan meets requirements similar to the (c) EXPANDED EXPLANATION TO RECIPIENTS the Internal Revenue Code of 1986) on behalf requirements of section 401(a)(31). OF ROLLOVER DISTRIBUTIONS.—Paragraph (1) of an individual if there was a rollover to Any amount transferred in a direct trustee- of section 402(f) (relating to written expla- such plan on behalf of such individual which to-trustee transfer in accordance with sec- nation to recipients of distributions eligible is permitted solely by reason of any amend- tion 401(a)(31) shall not be includible in gross for rollover treatment) is amended by strik- ment made by this section. income for the taxable year of transfer.’’. ing ‘‘and’’ at the end of subparagraph (C), by SEC. 402. ROLLOVERS OF IRAS INTO WORKPLACE (D) WITHHOLDING.— striking the period at the end of subpara- RETIREMENT PLANS. (i) Paragraph (12) of section 3401(a) is graph (D) and inserting ‘‘, and’’, and by add- (a) IN GENERAL.—Subparagraph (A) of sec- amended by adding at the end the following: ing at the end the following new subpara- tion 408(d)(3) (relating to rollover amounts) ‘‘(E) under or to an eligible deferred com- graph: is amended by adding ‘‘or’’ at the end of pensation plan which, at the time of such ‘‘(E) of the provisions under which dis- clause (i), by striking clauses (ii) and (iii), payment, is a plan described in section 457(b) tributions from the eligible retirement plan and by adding at the end the following: maintained by an employer described in sec- receiving the distribution may be subject to ‘‘(ii) the entire amount received (including tion 457(e)(1)(A); or’’. restrictions and tax consequences which are money and any other property) is paid into (ii) Paragraph (3) of section 3405(c) is different from those applicable to distribu- an eligible retirement plan for the benefit of amended to read as follows: tions from the plan making such distribu- such individual not later than the 60th day ‘‘(3) ELIGIBLE ROLLOVER DISTRIBUTION.—For tion.’’. after the date on which the payment or dis- purposes of this subsection, the term ‘eligi- (d) SPOUSAL ROLLOVERS.—Section 402(c)(9) tribution is received, except that the max- ble rollover distribution’ has the meaning (relating to rollover where spouse receives imum amount which may be paid into such given such term by section 402(f)(2)(A).’’. distribution after death of employee) is plan may not exceed the portion of the (iii) LIABILITY FOR WITHHOLDING.—Subpara- amended by striking ‘‘; except that’’ and all amount received which is includible in gross graph (B) of section 3405(d)(2) is amended by that follows up to the end period. income (determined without regard to this striking ‘‘or’’ at the end of clause (ii), by (e) CONFORMING AMENDMENTS.— paragraph). striking the period at the end of clause (iii) (1) Section 72(o)(4) is amended by striking For purposes of clause (ii), the term ‘eligible and inserting ‘‘, or’’, and by adding at the ‘‘and 408(d)(3)’’ and inserting ‘‘403(b)(8), retirement plan’ means an eligible retire- end the following: 408(d)(3), and 457(e)(16)’’. ment plan described in clause (iii), (iv), (v), ‘‘(iv) section 457(b) and which is main- (2) Section 219(d)(2) is amended by striking or (vi) of section 402(c)(8)(B).’’. tained by an eligible employer described in ‘‘or 408(d)(3)’’ and inserting ‘‘408(d)(3), or (b) CONFORMING AMENDMENTS.— section 457(e)(1)(A).’’. 457(e)(16)’’. (1) Paragraph (1) of section 403(b) is amend- (2) ROLLOVERS TO SECTION 457 PLANS.— (3) Section 401(a)(31)(B) is amended by ed by striking ‘‘section 408(d)(3)(A)(iii)’’ and (A) IN GENERAL.—Section 402(c)(8)(B) (de- striking ‘‘and 403(a)(4)’’ and inserting ‘‘, inserting ‘‘section 408(d)(3)(A)(ii)’’. fining eligible retirement plan) is amended 403(a)(4), 403(b)(8), and 457(e)(16)’’. (2) Clause (i) of section 408(d)(3)(D) is by striking ‘‘and’’ at the end of clause (iii), (4) Subparagraph (A) of section 402(f)(2) is amended by striking ‘‘(i), (ii), or (iii)’’ and by striking the period at the end of clause amended by striking ‘‘or paragraph (4) of sec- inserting ‘‘(i) or (ii)’’. (iv) and inserting ‘‘, and’’, and by inserting tion 403(a)’’ and inserting ‘‘, paragraph (4) of (3) Subparagraph (G) of section 408(d)(3) is after clause (iv) the following new clause: section 403(a), subparagraph (A) of section amended to read as follows: ‘‘(v) an eligible deferred compensation plan 403(b)(8), or subparagraph (A) of section ‘‘(G) SIMPLE RETIREMENT ACCOUNTS.—In the described in section 457(b) which is main- 457(e)(16)’’. case of any payment or distribution out of a tained by an eligible employer described in (5) Paragraph (1) of section 402(f) is amend- simple retirement account (as defined in sub- section 457(e)(1)(A).’’. ed by striking ‘‘from an eligible retirement section (p)) to which section 72(t)(6) applies, (B) SEPARATE ACCOUNTING.—Section 402(c) plan’’. this paragraph shall not apply unless such is amended by adding at the end the fol- (6) Subparagraphs (A) and (B) of section payment or distribution is paid into another lowing new paragraph: 402(f)(1) are amended by striking ‘‘another simple retirement account.’’. ‘‘(10) SEPARATE ACCOUNTING.—Unless a plan eligible retirement plan’’ and inserting ‘‘an (c) EFFECTIVE DATE; SPECIAL RULE.— described in clause (v) of paragraph (8)(B) eligible retirement plan’’. (1) EFFECTIVE DATE.—The amendments agrees to separately account for amounts (7) Subparagraph (B) of section 403(b)(8) is made by this section shall apply to distribu- rolled into such plan from eligible retire- amended to read as follows: tions after December 31, 2001. ment plans not described in such clause, the ‘‘(B) CERTAIN RULES MADE APPLICABLE.— (2) SPECIAL RULE.—Notwithstanding any plan described in such clause may not accept The rules of paragraphs (2) through (7) and other provision of law, subsections (h)(3) and transfers or rollovers from such retirement (9) of section 402(c) and section 402(f) shall (h)(5) of section 1122 of the Tax Reform Act plans.’’. apply for purposes of subparagraph (A), ex- of 1986 shall not apply to any distribution (C) 10 PERCENT ADDITIONAL TAX.—Sub- cept that section 402(f) shall be applied to from an eligible retirement plan (as defined section (t) of section 72 (relating to 10-per- the payor in lieu of the plan administrator.’’. in clause (iii) or (iv) of section 402(c)(8)(B) of

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00036 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.006 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1771 the Internal Revenue Code of 1986) on behalf apply to any transfer of a distribution made form of distribution with respect to any par- of an individual if there was a rollover to after the 60th day following the day on which ticipant unless— such plan on behalf of such individual which the distributee received the property distrib- ‘‘(i) a single sum payment is available to is permitted solely by reason of the amend- uted. such participant at the same time or times ments made by this section. ‘‘(B) HARDSHIP EXCEPTION.—The Secretary as the form of distribution being eliminated, SEC. 403. ROLLOVERS OF AFTER-TAX CONTRIBU- may waive the 60-day requirement under and TIONS. subparagraph (A) where the failure to waive ‘‘(ii) such single sum payment is based on (a) ROLLOVERS FROM EXEMPT TRUSTS.— such requirement would be against equity or the same or greater portion of the partici- Paragraph (2) of section 402(c) (relating to good conscience, including casualty, dis- pant’s account as the form of distribution maximum amount which may be rolled over) aster, or other events beyond the reasonable being eliminated.’’. is amended by adding at the end the fol- control of the individual subject to such re- (2) AMENDMENT OF ERISA.—Section 204(g) of lowing: ‘‘The preceding sentence shall not quirement.’’. the Employee Retirement Income Security apply to such distribution to the extent— (b) IRAS.—Paragraph (3) of section 408(d) Act of 1974 (29 U.S.C. 1054(g)) is amended by ‘‘(A) such portion is transferred in a direct (relating to rollover contributions), as adding at the end the following: trustee-to-trustee transfer to a qualified amended by section 403, is amended by add- ‘‘(4)(A) A defined contribution plan (in this trust which is part of a plan which is a de- ing after subparagraph (H) the following new subparagraph referred to as the ‘transferee fined contribution plan and which agrees to subparagraph: plan’) shall not be treated as failing to meet separately account for amounts so trans- ‘‘(I) WAIVER OF 60-DAY REQUIREMENT.—The the requirements of this subsection merely ferred, including separately accounting for Secretary may waive the 60-day requirement because the transferee plan does not provide the portion of such distribution which is in- under subparagraphs (A) and (D) where the some or all of the forms of distribution pre- cludible in gross income and the portion of failure to waive such requirement would be viously available under another defined con- such distribution which is not so includible, against equity or good conscience, including tribution plan (in this subparagraph referred or casualty, disaster, or other events beyond to as the ‘transferor plan’) to the extent ‘‘(B) such portion is transferred to an eligi- the reasonable control of the individual sub- that— ble retirement plan described in clause (i) or ject to such requirement.’’. ‘‘(i) the forms of distribution previously (ii) of paragraph (8)(B).’’. (c) EFFECTIVE DATE.—The amendments available under the transferor plan applied (b) OPTIONAL DIRECT TRANSFER OF ELIGIBLE made by this section shall apply to distribu- to the account of a participant or beneficiary ROLLOVER DISTRIBUTIONS.—Subparagraph (B) tions after December 31, 2001. under the transferor plan that was trans- of section 401(a)(31) (relating to limitation) ferred from the transferor plan to the trans- is amended by adding at the end the fol- SEC. 405. TREATMENT OF FORMS OF DISTRIBU- feree plan pursuant to a direct transfer rath- TION. lowing: er than pursuant to a distribution from the (a) PLAN TRANSFERS.— ‘‘The preceding sentence shall not apply to transferor plan; (1) AMENDMENT OF INTERNAL REVENUE such distribution if the plan to which such ‘‘(ii) the terms of both the transferor plan CODE.—Paragraph (6) of section 411(d) (relat- distribution is transferred— and the transferee plan authorize the trans- ing to accrued benefit not to be decreased by ‘‘(i) agrees to separately account for fer described in clause (i); amendment) is amended by adding at the end amounts so transferred, including separately ‘‘(iii) the transfer described in clause (i) the following: accounting for the portion of such distribu- was made pursuant to a voluntary election ‘‘(D) PLAN TRANSFERS.— tion which is includible in gross income and by the participant or beneficiary whose ac- ‘‘(i) IN GENERAL.—A defined contribution the portion of such distribution which is not count was transferred to the transferee plan; plan (in this subparagraph referred to as the so includible, or ‘‘(iv) the election described in clause (iii) ‘transferee plan’) shall not be treated as fail- ‘‘(ii) is an eligible retirement plan de- was made after the participant or bene- ing to meet the requirements of this sub- scribed in clause (i) or (ii) of section ficiary received a notice describing the con- section merely because the transferee plan 402(c)(8)(B).’’. sequences of making the election; and does not provide some or all of the forms of (c) RULES FOR APPLYING SECTION 72 TO ‘‘(v) the transferee plan allows the partici- distribution previously available under an- IRAS.—Paragraph (3) of section 408(d) (relat- pant or beneficiary described in clause (iii) other defined contribution plan (in this sub- ing to special rules for applying section 72) is to receive any distribution to which the par- paragraph referred to as the ‘transferor amended by inserting at the end the fol- ticipant or beneficiary is entitled under the lowing: plan’) to the extent that— transferee plan in the form of a single sum ‘‘(H) APPLICATION OF SECTION 72.— ‘‘(I) the forms of distribution previously distribution. ‘‘(i) IN GENERAL.—If— available under the transferor plan applied ‘‘(B) Subparagraph (A) shall apply to plan ‘‘(I) a distribution is made from an indi- to the account of a participant or beneficiary mergers and other transactions having the vidual retirement plan, and under the transferor plan that was trans- effect of a direct transfer, including consoli- ‘‘(II) a rollover contribution is made to an ferred from the transferor plan to the trans- dations of benefits attributable to different eligible retirement plan described in section feree plan pursuant to a direct transfer rath- employers within a multiple employer plan. 402(c)(8)(B)(iii), (iv), (v), or (vi) with respect er than pursuant to a distribution from the ‘‘(5) Except to the extent provided in regu- to all or part of such distribution, transferor plan, lations promulgated by the Secretary of the then, notwithstanding paragraph (2), the ‘‘(II) the terms of both the transferor plan Treasury, a defined contribution plan shall rules of clause (ii) shall apply for purposes of and the transferee plan authorize the trans- not be treated as failing to meet the require- applying section 72. fer described in subclause (I), ments of this subsection merely because of ‘‘(ii) APPLICABLE RULES.—In the case of a ‘‘(III) the transfer described in subclause the elimination of a form of distribution pre- distribution described in clause (i)— (I) was made pursuant to a voluntary elec- viously available thereunder. This paragraph ‘‘(I) section 72 shall be applied separately tion by the participant or beneficiary whose shall not apply to the elimination of a form to such distribution, account was transferred to the transferee of distribution with respect to any partici- ‘‘(II) notwithstanding the pro rata alloca- plan, pant unless— tion of income on, and investment in, the ‘‘(IV) the election described in subclause ‘‘(A) a single sum payment is available to contract to distributions under section 72, (III) was made after the participant or bene- such participant at the same time or times the portion of such distribution rolled over ficiary received a notice describing the con- as the form of distribution being eliminated; to an eligible retirement plan described in sequences of making the election, and and clause (i) shall be treated as from income on ‘‘(V) the transferee plan allows the partici- ‘‘(B) such single sum payment is based on the contract (to the extent of the aggregate pant or beneficiary described in subclause the same or greater portion of the partici- income on the contract from all individual (III) to receive any distribution to which the pant’s account as the form of distribution retirement plans of the distributee), and participant or beneficiary is entitled under being eliminated.’’. ‘‘(III) appropriate adjustments shall be the transferee plan in the form of a single (3) EFFECTIVE DATE.—The amendments made in applying section 72 to other dis- sum distribution. made by this subsection shall apply to years tributions in such taxable year and subse- ‘‘(ii) EXCEPTION.—Clause (i) shall apply to beginning after December 31, 2001. quent taxable years.’’. plan mergers and other transactions having (b) REGULATIONS.— (d) EFFECTIVE DATE.—The amendments the effect of a direct transfer, including con- (1) AMENDMENT OF INTERNAL REVENUE made by this section shall apply to distribu- solidations of benefits attributable to dif- CODE.—Paragraph (6)(B) of section 411(d) (re- tions after December 31, 2001. ferent employers within a multiple employer lating to accrued benefit not to be decreased SEC. 404. HARDSHIP EXCEPTION TO 60-DAY RULE. plan. by amendment) is amended by inserting (a) EXEMPT TRUSTS.—Paragraph (3) of sec- ‘‘(E) ELIMINATION OF FORM OF DISTRIBU- after the second sentence the following new tion 402(c) (relating to transfer must be made TION.—Except to the extent provided in regu- sentence: ‘‘The Secretary shall by regula- within 60 days of receipt) is amended to read lations, a defined contribution plan shall not tions provide that this subparagraph shall as follows: be treated as failing to meet the require- not apply to any plan amendment which re- ‘‘(3) TRANSFER MUST BE MADE WITHIN 60 ments of this section merely because of the duces or eliminates benefits or subsidies DAYS OF RECEIPT.— elimination of a form of distribution pre- which create significant burdens or complex- ‘‘(A) IN GENERAL.—Except as provided in viously available thereunder. This subpara- ities for the plan and plan participants and subparagraph (B), paragraph (1) shall not graph shall not apply to the elimination of a does not adversely affect the rights of any

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00037 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.006 pfrm02 PsN: H02PT1 H1772 CONGRESSIONAL RECORD — HOUSE May 2, 2001 participant in a more than de minimis man- ‘‘(B) a repayment to which section 415 does ‘‘(A) is paid to the participant or other ner.’’. not apply by reason of subsection (k)(3) beneficiary, in the case of a plan of an eligi- (2) AMENDMENT OF ERISA.—Section 204(g)(2) thereof.’’. ble employer described in subsection of the Employee Retirement Income Secu- (b) 457 PLANS.—Subsection (e) of section (e)(1)(A), and rity Act of 1974 (29 U.S.C. 1054(g)(2)) is 457 is amended by adding after paragraph (16) ‘‘(B) is paid or otherwise made available to amended by inserting before the last sen- the following new paragraph: the participant or other beneficiary, in the tence the following new sentence: ‘‘The Sec- ‘‘(17) TRUSTEE-TO-TRUSTEE TRANSFERS TO case of a plan of an eligible employer de- retary of the Treasury shall by regulations PURCHASE PERMISSIVE SERVICE CREDIT.—No scribed in subsection (e)(1)(B). provide that this paragraph shall not apply amount shall be includible in gross income ‘‘(2) SPECIAL RULE FOR ROLLOVER to any plan amendment which reduces or by reason of a direct trustee-to-trustee AMOUNTS.—To the extent provided in section eliminates benefits or subsidies which create transfer to a defined benefit governmental 72(t)(9), section 72(t) shall apply to any significant burdens or complexities for the plan (as defined in section 414(d)) if such amount includible in gross income under this plan and plan participants and does not ad- transfer is— subsection.’’. versely affect the rights of any participant ‘‘(A) for the purchase of permissive service (2) CONFORMING AMENDMENTS.— in a more than de minimis manner.’’. credit (as defined in section 415(n)(3)(A)) (A) So much of paragraph (9) of section (3) SECRETARY DIRECTED.—Not later than under such plan, or 457(e) as precedes subparagraph (A) is amend- December 31, 2003, the Secretary of the ‘‘(B) a repayment to which section 415 does ed to read as follows: Treasury is directed to issue regulations not apply by reason of subsection (k)(3) ‘‘(9) BENEFITS OF TAX EXEMPT ORGANIZATION under section 411(d)(6) of the Internal Rev- thereof.’’. PLANS NOT TREATED AS MADE AVAILABLE BY (c) EFFECTIVE DATE.—The amendments enue Code of 1986 and section 204(g) of the REASON OF CERTAIN ELECTIONS, ETC.—In the made by this section shall apply to trustee- Employee Retirement Income Security Act case of an eligible deferred compensation to-trustee transfers after December 31, 2001. of 1974, including the regulations required by plan of an employer described in subsection SEC. 408. EMPLOYERS MAY DISREGARD ROLL- the amendment made by this subsection. OVERS FOR PURPOSES OF CASH-OUT (e)(1)(B)—’’. Such regulations shall apply to plan years AMOUNTS. (B) Section 457(d) is amended by adding at beginning after December 31, 2003, or such (a) QUALIFIED PLANS.— the end the following new paragraph: earlier date as is specified by the Secretary (1) AMENDMENT OF INTERNAL REVENUE ‘‘(3) SPECIAL RULE FOR GOVERNMENT PLAN.— of the Treasury. CODE.—Section 411(a)(11) (relating to restric- An eligible deferred compensation plan of an SEC. 406. RATIONALIZATION OF RESTRICTIONS tions on certain mandatory distributions) is employer described in subsection (e)(1)(A) ON DISTRIBUTIONS. amended by adding at the end the following: shall not be treated as failing to meet the re- (a) MODIFICATION OF SAME DESK EXCEP- ‘‘(D) SPECIAL RULE FOR ROLLOVER CONTRIBU- quirements of this subsection solely by rea- TION.— TIONS.—A plan shall not fail to meet the re- son of making a distribution described in (1) SECTION 401(k).— quirements of this paragraph if, under the subsection (e)(9)(A).’’. (A) Section 401(k)(2)(B)(i)(I) (relating to terms of the plan, the present value of the (c) EFFECTIVE DATE.—The amendments qualified cash or deferred arrangements) is nonforfeitable accrued benefit is determined made by this section shall apply to distribu- amended by striking ‘‘separation from serv- without regard to that portion of such ben- tions after December 31, 2001. ice’’ and inserting ‘‘severance from employ- efit which is attributable to rollover con- TITLE V—STRENGTHENING PENSION ment’’. tributions (and earnings allocable thereto). SECURITY AND ENFORCEMENT (B) Subparagraph (A) of section 401(k)(10) For purposes of this subparagraph, the term ‘rollover contributions’ means any rollover SEC. 501. REPEAL OF PERCENT OF CURRENT LI- (relating to distributions upon termination ABILITY FUNDING LIMIT. of plan or disposition of assets or subsidiary) contribution under sections 402(c), 403(a)(4), (a) AMENDMENT OF INTERNAL REVENUE is amended to read as follows: 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16).’’. CODE.—Section 412(c)(7) (relating to full- ‘‘(A) IN GENERAL.—An event described in (2) AMENDMENT OF ERISA.—Section 203(e) of funding limitation) is amended— this subparagraph is the termination of the the Employee Retirement Income Security (1) by striking ‘‘the applicable percentage’’ plan without establishment or maintenance Act of 1974 (29 U.S.C. 1053(c)) is amended by in subparagraph (A)(i)(I) and inserting ‘‘in of another defined contribution plan (other adding at the end the following: the case of plan years beginning before Janu- than an employee stock ownership plan as ‘‘(4) A plan shall not fail to meet the re- ary 1, 2004, the applicable percentage’’; and defined in section 4975(e)(7)).’’. quirements of this subsection if, under the (2) by amending subparagraph (F) to read (C) Section 401(k)(10) is amended— terms of the plan, the present value of the as follows: (i) in subparagraph (B)— nonforfeitable accrued benefit is determined ‘‘(F) APPLICABLE PERCENTAGE.—For pur- (I) by striking ‘‘An event’’ in clause (i) and without regard to that portion of such ben- poses of subparagraph (A)(i)(I), the applica- inserting ‘‘A termination’’; and efit which is attributable to rollover con- tributions (and earnings allocable thereto). ble percentage shall be determined in accord- (II) by striking ‘‘the event’’ in clause (i) For purposes of this subparagraph, the term ance with the following table: and inserting ‘‘the termination’’; ‘rollover contributions’ means any rollover (ii) by striking subparagraph (C); and ‘‘In the case of any The applicable contribution under sections 402(c), 403(a)(4), (iii) by striking ‘‘OR DISPOSITION OF ASSETS plan year beginning percentage is— 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the in— OR SUBSIDIARY’’ in the heading. Internal Revenue Code of 1986.’’. (2) SECTION 403(b).— (b) ELIGIBLE DEFERRED COMPENSATION 2002 ...... 165 (A) Paragraphs (7)(A)(ii) and (11)(A) of sec- PLANS.—Clause (i) of section 457(e)(9)(A) is 2003 ...... 170.’’. tion 403(b) are each amended by striking amended by striking ‘‘such amount’’ and in- (b) AMENDMENT OF ERISA.—Section ‘‘separates from service’’ and inserting ‘‘has serting ‘‘the portion of such amount which is 302(c)(7) of the Employee Retirement Income a severance from employment’’. not attributable to rollover contributions (as Security Act of 1974 (29 U.S.C. 1082(c)(7)) is (B) The heading for paragraph (11) of sec- defined in section 411(a)(11)(D))’’. amended— tion 403(b) is amended by striking ‘‘SEPARA- (c) EFFECTIVE DATE.—The amendments (1) by striking ‘‘the applicable percentage’’ TION FROM SERVICE’’ and inserting ‘‘SEVER- made by this section shall apply to distribu- in subparagraph (A)(i)(I) and inserting ‘‘in ANCE FROM EMPLOYMENT’’. tions after December 31, 2001. the case of plan years beginning before Janu- (3) SECTION 457.—Clause (ii) of section SEC. 409. MINIMUM DISTRIBUTION AND INCLU- ary 1, 2004, the applicable percentage’’; and SION REQUIREMENTS FOR SECTION 457(d)(1)(A) is amended by striking ‘‘is sepa- (2) by amending subparagraph (F) to read rated from service’’ and inserting ‘‘has a sev- 457 PLANS. (a) MINIMUM DISTRIBUTION REQUIRE- as follows: erance from employment’’. MENTS.—Paragraph (2) of section 457(d) (re- ‘‘(F) APPLICABLE PERCENTAGE.—For pur- FFECTIVE DATE.—The amendments (b) E lating to distribution requirements) is poses of subparagraph (A)(i)(I), the applica- made by this section shall apply to distribu- amended to read as follows: ble percentage shall be determined in accord- tions after December 31, 2001. ‘‘(2) MINIMUM DISTRIBUTION REQUIRE- ance with the following table: SEC. 407. PURCHASE OF SERVICE CREDIT IN GOV- MENTS.—A plan meets the minimum dis- ‘‘In the case of any The applicable ERNMENTAL DEFINED BENEFIT tribution requirements of this paragraph if PLANS. plan year beginning percentage is— such plan meets the requirements of section in— (a) 403(b) PLANS.—Subsection (b) of section 401(a)(9).’’. 2002 ...... 165 403 is amended by adding at the end the fol- (b) INCLUSION IN GROSS INCOME.— 2003 ...... 170.’’. lowing new paragraph: (1) YEAR OF INCLUSION.—Subsection (a) of ‘‘(13) TRUSTEE-TO-TRUSTEE TRANSFERS TO section 457 (relating to year of inclusion in (c) EFFECTIVE DATE.—The amendments PURCHASE PERMISSIVE SERVICE CREDIT.—No gross income) is amended to read as follows: made by this section shall apply to plan amount shall be includible in gross income ‘‘(a) YEAR OF INCLUSION IN GROSS INCOME.— years beginning after December 31, 2001. by reason of a direct trustee-to-trustee ‘‘(1) IN GENERAL.—Any amount of com- SEC. 502. MAXIMUM CONTRIBUTION DEDUCTION transfer to a defined benefit governmental pensation deferred under an eligible deferred RULES MODIFIED AND APPLIED TO plan (as defined in section 414(d)) if such compensation plan, and any income attrib- ALL DEFINED BENEFIT PLANS. transfer is— utable to the amounts so deferred, shall be (a) IN GENERAL.—Subparagraph (D) of sec- ‘‘(A) for the purchase of permissive service includible in gross income only for the tax- tion 404(a)(1) (relating to special rule in case credit (as defined in section 415(n)(3)(A)) able year in which such compensation or of certain plans) is amended to read as fol- under such plan, or other income— lows:

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‘‘(D) SPECIAL RULE IN CASE OF CERTAIN and then to amounts described in this para- such tax would be excessive or otherwise in- PLANS.— graph. If an employer makes an election equitable relative to the failure involved. ‘‘(i) IN GENERAL.—In the case of any defined under this paragraph for a taxable year, ‘‘(d) LIABILITY FOR TAX.—The following benefit plan, except as provided in regula- paragraph (6) shall not apply to such em- shall be liable for the tax imposed by sub- tions, the maximum amount deductible ployer for such taxable year.’’. section (a): under the limitations of this paragraph shall (b) EFFECTIVE DATE.—The amendment ‘‘(1) In the case of a plan other than a mul- not be less than the unfunded termination li- made by this section shall apply to years be- tiemployer plan, the employer. ability (determined as if the proposed termi- ginning after December 31, 2001. ‘‘(2) In the case of a multiemployer plan, nation date referred to in section SEC. 504. EXCISE TAX ON FAILURE TO PROVIDE the plan. 4041(b)(2)(A)(i)(II) of the Employee Retire- NOTICE BY DEFINED BENEFIT ‘‘(e) NOTICE REQUIREMENTS FOR PLANS SIG- ment Income Security Act of 1974 were the PLANS SIGNIFICANTLY REDUCING NIFICANTLY REDUCING BENEFIT ACCRUALS.— last day of the plan year). FUTURE BENEFIT ACCRUALS. ‘‘(1) IN GENERAL.—If an applicable pension (a) AMENDMENT OF INTERNAL REVENUE ‘‘(ii) PLANS WITH LESS THAN 100 PARTICI- plan is amended to provide for a significant CODE.— reduction in the rate of future benefit ac- PANTS.—For purposes of this subparagraph, in the case of a plan which has less than 100 (1) IN GENERAL.—Chapter 43 (relating to crual, the plan administrator shall provide participants for the plan year, termination qualified pension, etc., plans) is amended by written notice to each applicable individual liability shall not include the liability at- adding at the end the following new section: (and to each employee organization rep- tributable to benefit increases for highly ‘‘SEC. 4980F. FAILURE OF APPLICABLE PLANS RE- resenting applicable individuals). DUCING BENEFIT ACCRUALS TO ‘‘(2) NOTICE.—The notice required by para- compensated employees (as defined in sec- SATISFY NOTICE REQUIREMENTS. graph (1) shall be written in a manner cal- tion 414(q)) resulting from a plan amendment ‘‘(a) IMPOSITION OF TAX.—There is hereby culated to be understood by the average plan which is made or becomes effective, which- imposed a tax on the failure of any applica- participant and shall provide sufficient in- ever is later, within the last 2 years before ble pension plan to meet the requirements of formation (as determined in accordance with the termination date. subsection (e) with respect to any applicable regulations prescribed by the Secretary) to ‘‘(iii) RULE FOR DETERMINING NUMBER OF individual. allow applicable individuals to understand PARTICIPANTS.—For purposes of determining ‘‘(b) AMOUNT OF TAX.— the effect of the plan amendment. The Sec- whether a plan has more than 100 partici- ‘‘(1) IN GENERAL.—The amount of the tax retary may provide a simplified form of no- pants, all defined benefit plans maintained imposed by subsection (a) on any failure tice for, or exempt from any notice require- by the same employer (or any member of with respect to any applicable individual ment, a plan— such employer’s controlled group (within the shall be $100 for each day in the noncompli- ‘‘(A) which has fewer than 100 participants meaning of section 412(l)(8)(C))) shall be ance period with respect to such failure. who have accrued a benefit under the plan, treated as one plan, but only employees of ‘‘(2) NONCOMPLIANCE PERIOD.—For purposes or such member or employer shall be taken into of this section, the term ‘noncompliance pe- ‘‘(B) which offers participants the option account. riod’ means, with respect to any failure, the to choose between the new benefit formula ‘‘(iv) PLANS MAINTAINED BY PROFESSIONAL period beginning on the date the failure first and the old benefit formula. SERVICE EMPLOYERS.—Clause (i) shall not occurs and ending on the date the notice to ‘‘(3) TIMING OF NOTICE.—Except as provided apply to a plan described in section which the failure relates is provided or the in regulations, the notice required by para- 4021(b)(13) of the Employee Retirement In- failure is otherwise corrected. graph (1) shall be provided within a reason- come Security Act of 1974.’’. ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— able time before the effective date of the (b) CONFORMING AMENDMENT.—Paragraph ‘‘(1) TAX NOT TO APPLY WHERE FAILURE NOT plan amendment. (6) of section 4972(c), as amended by section DISCOVERED AND REASONABLE DILIGENCE EXER- ‘‘(4) DESIGNEES.—Any notice under para- 207, is amended to read as follows: CISED.—No tax shall be imposed by sub- graph (1) may be provided to a person des- ‘‘(6) EXCEPTIONS.—In determining the section (a) on any failure during any period ignated, in writing, by the person to which it amount of nondeductible contributions for for which it is established to the satisfaction would otherwise be provided. any taxable year, there shall not be taken of the Secretary that any person subject to ‘‘(5) NOTICE BEFORE ADOPTION OF AMEND- into account so much of the contributions to liability for the tax under subsection (d) did MENT.—A plan shall not be treated as failing one or more defined contribution plans not know that the failure existed and exer- to meet the requirements of paragraph (1) which are not deductible when contributed cised reasonable diligence to meet the re- merely because notice is provided before the solely because of section 404(a)(7) as does not quirements of subsection (e). adoption of the plan amendment if no mate- exceed the greater of— ‘‘(2) TAX NOT TO APPLY TO FAILURES COR- rial modification of the amendment occurs ‘‘(A) the amount of contributions not in RECTED WITHIN 30 DAYS.—No tax shall be im- before the amendment is adopted. excess of 6 percent of compensation (within posed by subsection (a) on any failure if— ‘‘(f) DEFINITIONS AND SPECIAL RULES.—For the meaning of section 404(a)) paid or ac- ‘‘(A) any person subject to liability for the purposes of this section— crued (during the taxable year for which the tax under subsection (d) exercised reasonable ‘‘(1) APPLICABLE INDIVIDUAL.—The term contributions were made) to beneficiaries diligence to meet the requirements of sub- ‘applicable individual’ means, with respect under the plans, or section (e), and to any plan amendment— ‘‘(B) the sum of— ‘‘(B) such person provides the notice de- ‘‘(A) each participant in the plan, and ‘‘(i) the amount of contributions described scribed in subsection (e) during the 30-day ‘‘(B) any beneficiary who is an alternate in section 401(m)(4)(A), plus period beginning on the first date such per- payee (within the meaning of section ‘‘(ii) the amount of contributions described son knew, or exercising reasonable diligence 414(p)(8)) under an applicable qualified do- in section 402(g)(3)(A). would have known, that such failure existed. mestic relations order (within the meaning For purposes of this paragraph, the deduct- ‘‘(3) OVERALL LIMITATION FOR UNINTEN- of section 414(p)(1)(A)), ible limits under section 404(a)(7) shall first TIONAL FAILURES.— whose rate of future benefit accrual under be applied to amounts contributed to a de- ‘‘(A) IN GENERAL.—If the person subject to the plan may reasonably be expected to be fined benefit plan and then to amounts de- liability for tax under subsection (d) exer- significantly reduced by such plan amend- scribed in subparagraph (B).’’. cised reasonable diligence to meet the re- ment. (c) EFFECTIVE DATE.—The amendments quirements of subsection (e), the tax imposed ‘‘(2) APPLICABLE PENSION PLAN.—The term made by this section shall apply to plan by subsection (a) for failures during the tax- ‘applicable pension plan’ means— years beginning after December 31, 2001. able year of the employer (or, in the case of ‘‘(A) any defined benefit plan, or SEC. 503. EXCISE TAX RELIEF FOR SOUND PEN- a multiemployer plan, the taxable year of ‘‘(B) an individual account plan which is SION FUNDING. the trust forming part of the plan) shall not subject to the funding standards of section (a) IN GENERAL.—Subsection (c) of section exceed $500,000. For purposes of the preceding 412. 4972 (relating to nondeductible contribu- sentence, all multiemployer plans of which Such term shall not include a governmental tions) is amended by adding at the end the the same trust forms a part shall be treated plan (within the meaning of section 414(d)) or following new paragraph: as 1 plan. a church plan (within the meaning of section ‘‘(7) DEFINED BENEFIT PLAN EXCEPTION.—In ‘‘(B) TAXABLE YEARS IN THE CASE OF CER- 414(e)) with respect to which the election determining the amount of nondeductible TAIN CONTROLLED GROUPS.—For purposes of provided by section 410(d) has not been made. contributions for any taxable year, an em- this paragraph, if all persons who are treated ‘‘(3) EARLY RETIREMENT.—A plan amend- ployer may elect for such year not to take as a single employer for purposes of this sec- ment which eliminates or significantly re- into account any contributions to a defined tion do not have the same taxable year, the duces any early retirement benefit or retire- benefit plan except to the extent that such taxable years taken into account shall be de- ment-type subsidy (within the meaning of contributions exceed the full-funding limita- termined under principles similar to the section 411(d)(6)(B)(i)) shall be treated as tion (as defined in section 412(c)(7), deter- principles of section 1561. having the effect of significantly reducing mined without regard to subparagraph ‘‘(4) WAIVER BY SECRETARY.—In the case of the rate of future benefit accrual. (A)(i)(I) thereof). For purposes of this para- a failure which is due to reasonable cause ‘‘(g) NEW TECHNOLOGIES.—The Secretary graph, the deductible limits under section and not to willful neglect, the Secretary may may by regulations allow any notice under 404(a)(7) shall first be applied to amounts waive part or all of the tax imposed by sub- subsection (e) to be provided by using new contributed to defined contribution plans section (a) to the extent that the payment of technologies.’’.

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(2) CLERICAL AMENDMENT.—The table of (2) TRANSITION.—Until such time as the (c) EFFECTIVE DATE.—The amendments sections for chapter 43 is amended by adding Secretary of the Treasury issues regulations made by this section shall apply to years be- at the end the following new item: under sections 4980F(e)(2) and (3) of the In- ginning after December 31, 2001. ‘‘Sec. 4980F. Failure of applicable plans re- ternal Revenue Code of 1986, and section SEC. 506. PROTECTION OF INVESTMENT OF EM- ducing benefit accruals to sat- 204(h)(3) of the Employee Retirement Income PLOYEE CONTRIBUTIONS TO 401(K) PLANS. isfy notice requirements.’’. Security Act of 1974, as added by the amend- ments made by this section, a plan shall be (a) IN GENERAL.—Section 1524(b) of the (b) AMENDMENT OF ERISA.—Section 204(h) treated as meeting the requirements of such Taxpayer Relief Act of 1997 is amended to of the Employee Retirement Income Secu- sections if it makes a good faith effort to read as follows: rity Act of 1974 (29 U.S.C. 1054(h)) is amended comply with such requirements. ‘‘(b) EFFECTIVE DATE.— by adding at the end the following new para- (3) SPECIAL NOTICE RULE.— ‘‘(1) IN GENERAL.—Except as provided in graphs: (A) IN GENERAL.—The period for providing paragraph (2), the amendments made by this ‘‘(3)(A) An applicable pension plan to which any notice required by the amendments section shall apply to elective deferrals for paragraph (1) applies shall not be treated as made by this section shall not end before the plan years beginning after December 31, 1998. meeting the requirements of such paragraph ‘‘(2) NONAPPLICATION TO PREVIOUSLY AC- unless, in addition to any notice required to date which is 3 months after the date of the QUIRED PROPERTY.—The amendments made be provided to an individual or organization enactment of this Act. (B) REASONABLE NOTICE.—The amendments by this section shall not apply to any elec- under such paragraph, the plan adminis- tive deferral which is invested in assets con- trator provides the notice described in sub- made by this section shall not apply to any sisting of qualifying employer securities, paragraph (B) to each applicable individual plan amendment taking effect on or after the qualifying employer real property, or both, if (and to each employee organization rep- date of the enactment of this Act if, before such assets were acquired before January 1, resenting applicable individuals). April 25, 2001, notice was provided to partici- ‘‘(B) The notice required by subparagraph pants and beneficiaries adversely affected by 1999.’’. (A) shall be written in a manner calculated the plan amendment (or their representa- (b) EFFECTIVE DATE.—The amendment to be understood by the average plan partici- tives) which was reasonably expected to no- made by this section shall apply as if in- pant and shall provide sufficient information tify them of the nature and effective date of cluded in the provision of the Taxpayer Re- (as determined in accordance with regula- the plan amendment. lief Act of 1997 to which it relates. tions prescribed by the Secretary of the SEC. 507. PERIODIC PENSION BENEFITS STATE- (d) STUDY.—The Secretary of the Treasury MENTS. Treasury) to allow applicable individuals to shall prepare a report on the effects of con- understand the effect of the plan amend- (a) IN GENERAL.—Section 105(a) of the Em- versions of traditional defined benefit plans ployee Retirement Income Security Act of ment. The Secretary of the Treasury may to cash balance or hybrid formula plans. provide a simplified form of notice for, or ex- 1974 (29 U.S.C. 1025 (a)) is amended to read as Such study shall examine the effect of such follows: empt from any notice requirement, a plan— conversions on longer service participants, ‘‘(i) which has fewer than 100 participants ‘‘SEC. 105. (a)(1)(A) The administrator of an including the incidence and effects of ‘‘wear individual account plan shall furnish a pen- who have accrued a benefit under the plan, away’’ provisions under which participants or sion benefit statement— earn no additional benefits for a period of ‘‘(i) to a plan participant at least once an- ‘‘(ii) which offers participants the option time after the conversion. As soon as prac- to choose between the new benefit formula nually, and ticable, but not later than 60 days after the ‘‘(ii) to a plan beneficiary upon written re- and the old benefit formula. date of the enactment of this Act, the Sec- ‘‘(C) Except as provided in regulations pre- quest. retary shall submit such report, together scribed by the Secretary of the Treasury, the ‘‘(B) The administrator of a defined benefit with recommendations thereon, to the Com- notice required by subparagraph (A) shall be plan shall furnish a pension benefit state- mittee on Ways and Means and the Com- provided within a reasonable time before the ment— effective date of the plan amendment. mittee on Education and the Workforce of ‘‘(i) at least once every 3 years to each par- ‘‘(D) Any notice under subparagraph (A) the House of Representatives and the Com- ticipant with a nonforfeitable accrued ben- may be provided to a person designated, in mittee on Finance and the Committee on efit who is employed by the employer main- writing, by the person to which it would oth- Health, Education, Labor, and Pensions of taining the plan at the time the statement is erwise be provided. the Senate. furnished to participants, and ‘‘(E) A plan shall not be treated as failing SEC. 505. TREATMENT OF MULTIEMPLOYER ‘‘(ii) to a plan participant or plan bene- to meet the requirements of subparagraph PLANS UNDER SECTION 415. ficiary of the plan upon written request. (A) merely because notice is provided before ‘‘(2) A pension benefit statement under (a) COMPENSATION LIMIT.— the adoption of the plan amendment if no paragraph (1)— (1) IN GENERAL.—Paragraph (11) of section material modification of the amendment oc- ‘‘(A) shall indicate, on the basis of the lat- 415(b) (relating to limitation for defined ben- curs before the amendment is adopted. est available information— efit plans) is amended to read as follows: ‘‘(F) The Secretary of the Treasury may by ‘‘(i) the total benefits accrued, and ‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN- regulations allow any notice under this para- ‘‘(ii) the nonforfeitable pension benefits, if MENTAL AND MULTIEMPLOYER PLANS.—In the graph to be provided by using new tech- any, which have accrued, or the earliest date case of a governmental plan (as defined in nologies. on which benefits will become nonforfeit- section 414(d)) or a multiemployer plan (as ‘‘(4) For purposes of paragraph (3)— able, defined in section 414(f)), subparagraph (B) of ‘‘(A) The term ‘applicable individual’ ‘‘(B) shall be written in a manner cal- paragraph (1) shall not apply.’’. means, with respect to any plan amend- culated to be understood by the average plan (2) CONFORMING AMENDMENT.—Section ment— participant, and 415(b)(7) (relating to benefits under certain ‘‘(i) each participant in the plan; and ‘‘(C) may be provided in written, elec- collectively bargained plans) is amended by ‘‘(ii) any beneficiary who is an alternate tronic, or other appropriate form. payee (within the meaning of section inserting ‘‘(other than a multiemployer ‘‘(3)(A) In the case of a defined benefit 206(d)(3)(K)) under an applicable qualified do- plan)’’ after ‘‘defined benefit plan’’ in the plan, the requirements of paragraph (1)(B)(i) mestic relations order (within the meaning matter preceding subparagraph (A). shall be treated as met with respect to a par- of section 206(d)(3)(B)(i)), (b) COMBINING AND AGGREGATION OF ticipant if the administrator provides the whose rate of future benefit accrual under PLANS.— participant at least once each year with no- the plan may reasonably be expected to be (1) COMBINING OF PLANS.—Subsection (f) of tice of the availability of the pension benefit significantly reduced by such plan amend- section 415 (relating to combining of plans) is statement and the ways in which the partici- ment. amended by adding at the end the following: pant may obtain such statement. Such no- ‘‘(B) The term ‘applicable pension plan’ ‘‘(3) EXCEPTION FOR MULTIEMPLOYER tice shall be provided in written, electronic, means— PLANS.—Notwithstanding paragraph (1) and or other appropriate form, and may be in- ‘‘(i) any defined benefit plan; or subsection (g), a multiemployer plan (as de- cluded with other communications to the ‘‘(ii) an individual account plan which is fined in section 414(f)) shall not be combined participant if done in a manner reasonably subject to the funding standards of section or aggregated— designed to attract the attention of the par- 412 of the Internal Revenue Code of 1986. ‘‘(A) with any other plan which is not a ticipant. ‘‘(C) A plan amendment which eliminates multiemployer plan for purposes of applying ‘‘(B) The Secretary may provide that years or significantly reduces any early retirement subsection (b)(1)(B) to such other plan, or in which no employee or former employee benefit or retirement-type subsidy (within ‘‘(B) with any other multiemployer plan benefits (within the meaning of section the meaning of subsection (g)(2)(A)) shall be for purposes of applying the limitations es- 410(b) of the Internal Revenue Code of 1986) treated as having the effect of significantly tablished in this section.’’. under the plan need not be taken into ac- reducing the rate of future benefit accrual.’’. (2) CONFORMING AMENDMENT FOR AGGREGA- count in determining the 3-year period under (c) EFFECTIVE DATES.— TION OF PLANS.—Subsection (g) of section 415 paragraph (1)(B)(i).’’. (1) IN GENERAL.—The amendments made by (relating to aggregation of plans) is amended (b) CONFORMING AMENDMENTS.— this section shall apply to plan amendments by striking ‘‘The Secretary’’ and inserting (1) Section 105 of the Employee Retirement taking effect on or after the date of the en- ‘‘Except as provided in subsection (f)(3), the Income Security Act of 1974 (29 U.S.C. 1025) is actment of this Act. Secretary’’. amended by striking subsection (d).

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00040 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.006 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1775 (2) Section 105(b) of such Act (29 U.S.C. cent of the number of deemed-owned shares rant, restricted stock, deferred issuance 1025(b)) is amended to read as follows: of stock in the S corporation, or stock right, or similar interest or right that ‘‘(b) In no case shall a participant or bene- ‘‘(ii) in the case of a person not described gives the holder the right to acquire or re- ficiary of a plan be entitled to more than one in clause (i), the number of deemed-owned ceive stock of the S corporation in the fu- statement described in subsection (a)(1)(A) shares of such person is at least 10 percent of ture. Except to the extent provided in regu- or (a)(1)(B)(ii), whichever is applicable, in the number of deemed-owned shares of stock lations, synthetic equity also includes a any 12-month period.’’. in such corporation. stock appreciation right, phantom stock (c) MODEL STATEMENTS.—The Secretary of ‘‘(B) TREATMENT OF FAMILY MEMBERS.—In unit, or similar right to a future cash pay- Labor shall develop a model benefit state- the case of a disqualified person described in ment based on the value of such stock or ap- ment, written in a manner calculated to be subparagraph (A)(i), any member of such per- preciation in such value. understood by the average plan participant, son’s family with deemed-owned shares shall ‘‘(7) REGULATIONS.—The Secretary shall that may be used by plan administrators in be treated as a disqualified person if not oth- prescribe such regulations as may be nec- complying with the requirements of section erwise treated as a disqualified person under essary to carry out the purposes of this sub- 105 of the Employee Retirement Income Se- subparagraph (A). section.’’. curity Act of 1974. ‘‘(C) DEEMED-OWNED SHARES.— (b) COORDINATION WITH SECTION 4975(e)(7).— (d) EFFECTIVE DATE.—The amendments ‘‘(i) IN GENERAL.—The term ‘deemed-owned The last sentence of section 4975(e)(7) (defin- made by this section shall apply to plan shares’ means, with respect to any person— ing employee stock ownership plan) is years beginning after December 31, 2002. ‘‘(I) the stock in the S corporation consti- amended by inserting ‘‘, section 409(p),’’ after SEC. 508. PROHIBITED ALLOCATIONS OF STOCK tuting employer securities of an employee ‘‘409(n)’’. IN S CORPORATION ESOP. stock ownership plan which is allocated to (c) EXCISE TAX.— (a) IN GENERAL.—Section 409 (relating to such person under the plan, and (1) APPLICATION OF TAX.—Subsection (a) of qualifications for tax credit employee stock ‘‘(II) such person’s share of the stock in section 4979A (relating to tax on certain pro- ownership plans) is amended by redesig- such corporation which is held by such plan hibited allocations of employer securities) is nating subsection (p) as subsection (q) and but which is not allocated under the plan to amended— by inserting after subsection (o) the fol- participants. (A) by striking ‘‘or’’ at the end of para- lowing new subsection: ‘‘(ii) PERSON’S SHARE OF UNALLOCATED graph (1), and ‘‘(p) PROHIBITED ALLOCATIONS OF SECURI- STOCK.—For purposes of clause (i)(II), a per- (B) by striking all that follows paragraph TIES IN AN S CORPORATION.— son’s share of unallocated S corporation (2) and inserting the following: ‘‘(1) IN GENERAL.—An employee stock own- stock held by such plan is the amount of the ‘‘(3) there is any allocation of employer se- ership plan holding employer securities con- unallocated stock which would be allocated curities which violates the provisions of sec- sisting of stock in an S corporation shall to such person if the unallocated stock were tion 409(p), or a nonallocation year described provide that no portion of the assets of the allocated to all participants in the same pro- in subsection (e)(2)(C) with respect to an em- plan attributable to (or allocable in lieu of) portions as the most recent stock allocation ployee stock ownership plan, or such employer securities may, during a non- under the plan. ‘‘(4) any synthetic equity is owned by a dis- allocation year, accrue (or be allocated di- ‘‘(D) MEMBER OF FAMILY.—For purposes of qualified person in any nonallocation year, rectly or indirectly under any plan of the this paragraph, the term ‘member of the there is hereby imposed a tax on such alloca- employer meeting the requirements of sec- family’ means, with respect to any indi- tion or ownership equal to 50 percent of the tion 401(a)) for the benefit of any disqualified vidual— amount involved.’’. person. ‘‘(i) the spouse of the individual, (2) LIABILITY.—Section 4979A(c) (defining ‘‘(2) FAILURE TO MEET REQUIREMENTS.— ‘‘(ii) an ancestor or lineal descendant of liability for tax) is amended to read as fol- ‘‘(A) IN GENERAL.—If a plan fails to meet the individual or the individual’s spouse, lows: the requirements of paragraph (1), the plan ‘‘(iii) a brother or sister of the individual ‘‘(c) LIABILITY FOR TAX.—The tax imposed shall be treated as having distributed to any or the individual’s spouse and any lineal de- by this section shall be paid— disqualified person the amount allocated to scendant of the brother or sister, and ‘‘(1) in the case of an allocation referred to the account of such person in violation of ‘‘(iv) the spouse of any individual described in paragraph (1) or (2) of subsection (a), by— paragraph (1) at the time of such allocation. in clause (ii) or (iii). ‘‘(A) the employer sponsoring such plan, or ‘‘(B) CROSS REFERENCE.— A spouse of an individual who is legally sepa- ‘‘(B) the eligible worker-owned coopera- ‘‘For excise tax relating to violations of rated from such individual under a decree of tive, paragraph (1) and ownership of synthetic eq- divorce or separate maintenance shall not be which made the written statement described uity, see section 4979A. treated as such individual’s spouse for pur- in section 664(g)(1)(E) or in section ‘‘(3) NONALLOCATION YEAR.—For purposes of poses of this subparagraph. 1042(b)(3)(B) (as the case may be), and this subsection— ‘‘(5) TREATMENT OF SYNTHETIC EQUITY.—For ‘‘(2) in the case of an allocation or owner- ‘‘(A) IN GENERAL.—The term ‘nonallocation purposes of paragraphs (3) and (4), in the case ship referred to in paragraph (3) or (4) of sub- year’ means any plan year of an employee of a person who owns synthetic equity in the section (a), by the S corporation the stock in stock ownership plan if, at any time during S corporation, except to the extent provided which was so allocated or owned.’’. such plan year— in regulations, the shares of stock in such (3) DEFINITIONS.—Section 4979A(e) (relating ‘‘(i) such plan holds employer securities corporation on which such synthetic equity to definitions) is amended to read as follows: consisting of stock in an S corporation, and is based shall be treated as outstanding ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For ‘‘(ii) disqualified persons own at least 50 stock in such corporation and deemed-owned purposes of this section— percent of the number of shares of stock in shares of such person if such treatment of ‘‘(1) DEFINITIONS.—Except as provided in the S corporation. synthetic equity of 1 or more such persons paragraph (2), terms used in this section ‘‘(B) ATTRIBUTION RULES.—For purposes of results in— have the same respective meanings as when subparagraph (A)— ‘‘(A) the treatment of any person as a dis- used in sections 409 and 4978. ‘‘(i) IN GENERAL.—The rules of section qualified person, or ‘‘(2) SPECIAL RULES RELATING TO TAX IM- 318(a) shall apply for purposes of determining ‘‘(B) the treatment of any year as a non- POSED BY REASON OF PARAGRAPH (3) OR (4) OF ownership, except that— allocation year. SUBSECTION (a).— ‘‘(I) in applying paragraph (1) thereof, the For purposes of this paragraph, synthetic eq- ‘‘(A) PROHIBITED ALLOCATIONS.—The members of an individual’s family shall in- uity shall be treated as owned by a person in amount involved with respect to any tax im- clude members of the family described in the same manner as stock is treated as posed by reason of subsection (a)(3) is the paragraph (4)(D), and owned by a person under the rules of para- amount allocated to the account of any per- ‘‘(II) paragraph (4) thereof shall not apply. graphs (2) and (3) of section 318(a). If, with- son in violation of section 409(p)(1). ‘‘(ii) DEEMED-OWNED SHARES.—Notwith- out regard to this paragraph, a person is ‘‘(B) SYNTHETIC EQUITY.—The amount in- standing the employee trust exception in treated as a disqualified person or a year is volved with respect to any tax imposed by section 318(a)(2)(B)(i), individual shall be treated as a nonallocation year, this para- reason of subsection (a)(4) is the value of the treated as owning deemed-owned shares of graph shall not be construed to result in the shares on which the synthetic equity is the individual. person or year not being so treated. based. Solely for purposes of applying paragraph (5), ‘‘(6) DEFINITIONS.—For purposes of this sub- ‘‘(C) SPECIAL RULE DURING FIRST NON- this subparagraph shall be applied after the section— ALLOCATION YEAR.—For purposes of subpara- attribution rules of paragraph (5) have been ‘‘(A) EMPLOYEE STOCK OWNERSHIP PLAN.— graph (A), the amount involved for the first applied. The term ‘employee stock ownership plan’ nonallocation year of any employee stock ‘‘(4) DISQUALIFIED PERSON.—For purposes of has the meaning given such term by section ownership plan shall be determined by tak- this subsection— 4975(e)(7). ing into account the total value of all the ‘‘(A) IN GENERAL.—The term ‘disqualified ‘‘(B) EMPLOYER SECURITIES.—The term ‘em- deemed-owned shares of all disqualified per- person’ means any person if— ployer security’ has the meaning given such sons with respect to such plan. ‘‘(i) the aggregate number of deemed- term by section 409(l). ‘‘(D) STATUTE OF LIMITATIONS.—The statu- owned shares of such person and the mem- ‘‘(C) SYNTHETIC EQUITY.—The term ‘syn- tory period for the assessment of any tax im- bers of such person’s family is at least 20 per- thetic equity’ means any stock option, war- posed by this section by reason of paragraph

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(3) or (4) of subsection (a) shall not expire be- the plan’s current liability (as defined in ‘‘(1) IN GENERAL.—For purposes of this sec- fore the date which is 3 years from the later paragraph (7)(B)). tion, the term ‘qualified retirement planning of— ‘‘(iii) Information under clause (ii) shall, in services’ means any retirement planning ad- ‘‘(i) the allocation or ownership referred to accordance with regulations, be actuarially vice or information provided to an employee in such paragraph giving rise to such tax, or adjusted to reflect significant differences in and his spouse by an employer maintaining a ‘‘(ii) the date on which the Secretary is no- participants. qualified employer plan. tified of such allocation or ownership.’’. ‘‘(iv) An election under clause (ii), once ‘‘(2) NONDISCRIMINATION RULE.—Subsection (d) EFFECTIVE DATES.— made, shall be irrevocable without the con- (a)(7) shall apply in the case of highly com- (1) IN GENERAL.—The amendments made by sent of the Secretary of the Treasury.’’. pensated employees only if such services are this section shall apply to plan years begin- (c) EFFECTIVE DATE.—The amendments available on substantially the same terms to ning after December 31, 2004. made by this section shall apply to plan each member of the group of employees nor- (2) EXCEPTION FOR CERTAIN PLANS.—In the years beginning after December 31, 2001. mally provided education and information case of any— SEC. 602. ESOP DIVIDENDS MAY BE REINVESTED regarding the employer’s qualified employer (A) employee stock ownership plan estab- WITHOUT LOSS OF DIVIDEND DE- plan. lished after March 14, 2001, or DUCTION. ‘‘(3) QUALIFIED EMPLOYER PLAN.—For pur- (B) employee stock ownership plan estab- (a) IN GENERAL.—Section 404(k)(2)(A) (de- poses of this subsection, the term ‘qualified lished on or before such date if employer se- fining applicable dividends) is amended by employer plan’ means a plan, contract, pen- curities held by the plan consist of stock in striking ‘‘or’’ at the end of clause (ii), by re- sion, or account described in section a corporation with respect to which an elec- designating clause (iii) as clause (iv), and by 219(g)(5).’’. tion under section 1362(a) of the Internal inserting after clause (ii) the following new (c) EFFECTIVE DATE.—The amendments Revenue Code of 1986 is not in effect on such clause: made by this section shall apply to years be- date, ‘‘(iii) is, at the election of such partici- ginning after December 31, 2001. pants or their beneficiaries— the amendments made by this section shall SEC. 606. REPORTING SIMPLIFICATION. ‘‘(I) payable as provided in clause (i) or (ii), apply to plan years ending after March 14, (a) SIMPLIFIED ANNUAL FILING REQUIRE- or 2001. MENT FOR OWNERS AND THEIR SPOUSES.— ‘‘(II) paid to the plan and reinvested in (1) IN GENERAL.—The Secretary of the TITLE VI—REDUCING REGULATORY qualifying employer securities, or’’. Treasury and the Secretary of Labor shall BURDENS (b) STANDARDS FOR DISALLOWANCE.—Sec- modify the requirements for filing annual re- SEC. 601. MODIFICATION OF TIMING OF PLAN tion 404(k)(5)(A) (relating to disallowance of turns with respect to one-participant retire- VALUATIONS. deduction) is amended by inserting ‘‘avoid- ment plans to ensure that such plans with (a) AMENDMENT OF INTERNAL REVENUE ance or’’ before ‘‘evasion’’. assets of $250,000 or less as of the close of the CODE.—Paragraph (9) of section 412(c) (relat- (c) EFFECTIVE DATE.—The amendments ing to annual valuation) is amended to read made by this section shall apply to taxable plan year need not file a return for that year. as follows: years beginning after December 31, 2001. (2) ONE-PARTICIPANT RETIREMENT PLAN DE- FINED.—For purposes of this subsection, the ‘‘(9) ANNUAL VALUATION.— SEC. 603. REPEAL OF TRANSITION RULE RELAT- ‘‘(A) IN GENERAL.—For purposes of this sec- ING TO CERTAIN HIGHLY COM- term ‘‘one-participant retirement plan’’ tion, a determination of experience gains and PENSATED EMPLOYEES. means a retirement plan that— losses and a valuation of the plan’s liability (a) IN GENERAL.—Paragraph (4) of section (A) on the first day of the plan year— shall be made not less frequently than once 1114(c) of the Tax Reform Act of 1986 is here- (i) covered only the employer (and the em- every year, except that such determination by repealed. ployer’s spouse) and the employer owned the shall be made more frequently to the extent (b) EFFECTIVE DATE.—The repeal made by entire business (whether or not incor- required in particular cases under regula- subsection (a) shall apply to plan years be- porated); or tions prescribed by the Secretary. ginning after December 31, 2001. (ii) covered only one or more partners (and ‘‘(B) VALUATION DATE.— SEC. 604. EMPLOYEES OF TAX-EXEMPT ENTITIES. their spouses) in a business partnership (in- ‘‘(i) CURRENT YEAR.—Except as provided in (a) IN GENERAL.—The Secretary of the cluding partners in an S or C corporation); clause (ii), the valuation referred to in sub- Treasury shall modify Treasury Regulations (B) meets the minimum coverage require- paragraph (A) shall be made as of a date section 1.410(b)–6(g) to provide that employ- ments of section 410(b) of the Internal Rev- within the plan year to which the valuation ees of an organization described in section enue Code of 1986 without being combined refers or within one month prior to the be- 403(b)(1)(A)(i) of the Internal Revenue Code with any other plan of the business that cov- ginning of such year. of 1986 who are eligible to make contribu- ers the employees of the business; ‘‘(ii) ELECTION TO USE PRIOR YEAR VALU- tions under section 403(b) of such Code pursu- (C) does not provide benefits to anyone ex- ATION.—The valuation referred to in subpara- ant to a salary reduction agreement may be cept the employer (and the employer’s graph (A) may be made as of a date within treated as excludable with respect to a plan spouse) or the partners (and their spouses); the plan year prior to the year to which the under section 401(k) or (m) of such Code that (D) does not cover a business that is a valuation refers if— is provided under the same general arrange- member of an affiliated service group, a con- ‘‘(I) an election is in effect under this ment as a plan under such section 401(k), if— trolled group of corporations, or a group of clause with respect to the plan, and (1) no employee of an organization de- businesses under common control; and ‘‘(II) as of such date, the value of the assets scribed in section 403(b)(1)(A)(i) of such Code (E) does not cover a business that leases of the plan are not less than 125 percent of is eligible to participate in such section employees. the plan’s current liability (as defined in 401(k) plan or section 401(m) plan; and (3) OTHER DEFINITIONS.—Terms used in paragraph (7)(B)). (2) 95 percent of the employees who are not paragraph (2) which are also used in section ‘‘(iii) ADJUSTMENTS.—Information under employees of an organization described in 414 of the Internal Revenue Code of 1986 shall clause (ii) shall, in accordance with regula- section 403(b)(1)(A)(i) of such Code are eligi- have the respective meanings given such tions, be actuarially adjusted to reflect sig- ble to participate in such plan under such terms by such section. nificant differences in participants. section 401(k) or (m). (b) SIMPLIFIED ANNUAL FILING REQUIRE- ‘‘(iv) ELECTION.—An election under clause (b) EFFECTIVE DATE.—The modification re- MENT FOR PLANS WITH FEWER THAN 25 EM- (ii), once made, shall be irrevocable without quired by subsection (a) shall apply as of the PLOYEES.—In the case of plan years begin- the consent of the Secretary.’’. same date set forth in section 1426(b) of the ning after December 31, 2002, the Secretary (b) AMENDMENT OF ERISA.—Paragraph (9) Small Business Job Protection Act of 1996. of the Treasury and the Secretary of Labor shall provide for the filing of a simplified an- of section 302(c) of the Employee Retirement SEC. 605. CLARIFICATION OF TREATMENT OF EM- Income Security Act of 1974 (29 U.S.C. PLOYER-PROVIDED RETIREMENT nual return for any retirement plan which 1053(c)) is amended— ADVICE. covers less than 25 employees on the first (1) by inserting ‘‘(A)’’ after ‘‘(9)’’; and (a) IN GENERAL.—Subsection (a) of section day of a plan year and which meets the re- (2) by adding at the end the following: 132 (relating to exclusion from gross income) quirements described in subparagraphs (B), ‘‘(B)(i) Except as provided in clause (ii), is amended by striking ‘‘or’’ at the end of (D), and (E) of subsection (a)(2). the valuation referred to in subparagraph (A) paragraph (5), by striking the period at the (c) EFFECTIVE DATE.—The provisions of shall be made as of a date within the plan end of paragraph (6) and inserting ‘‘, or’’, and this section shall take effect on January 1, year to which the valuation refers or within by adding at the end the following new para- 2002. one month prior to the beginning of such graph: SEC. 607. IMPROVEMENT OF EMPLOYEE PLANS year. ‘‘(7) qualified retirement planning serv- COMPLIANCE RESOLUTION SYSTEM. ‘‘(ii) The valuation referred to in subpara- ices.’’. The Secretary of the Treasury shall con- graph (A) may be made as of a date within (b) QUALIFIED RETIREMENT PLANNING SERV- tinue to update and improve the Employee the plan year prior to the year to which the ICES DEFINED.—Section 132 is amended by re- Plans Compliance Resolution System (or any valuation refers if— designating subsection (m) as subsection (n) successor program) giving special attention ‘‘(I) an election is in effect under this and by inserting after subsection (l) the fol- to— clause with respect to the plan; and lowing: (1) increasing the awareness and knowledge ‘‘(II) as of such date, the value of the assets ‘‘(m) QUALIFIED RETIREMENT PLANNING of small employers concerning the avail- of the plan are not less than 125 percent of SERVICES.— ability and use of the program;

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(2) taking into account special concerns (c) LINE OF BUSINESS RULES.—The Sec- ticipant’s right, if any, to defer receipt of a and circumstances that small employers face retary of the Treasury shall, on or before De- distribution shall also describe the con- with respect to compliance and correction of cember 31, 2003, modify the existing regula- sequences of failing to defer such receipt. compliance failures; tions issued under section 414(r) of the Inter- (2) EFFECTIVE DATE.—The modifications re- (3) extending the duration of the self-cor- nal Revenue Code of 1986 in order to expand quired by paragraph (1) shall apply to years rection period under the Self-Correction Pro- (to the extent that the Secretary determines beginning after December 31, 2001. gram for significant compliance failures; appropriate) the ability of a pension plan to SEC. 612. ANNUAL REPORT DISSEMINATION. (4) expanding the availability to correct in- demonstrate compliance with the line of (a) REPORT AVAILABLE THROUGH ELEC- significant compliance failures under the business requirements based upon the facts TRONIC MEANS.—Section 104(b)(3) of the Em- Self-Correction Program during audit; and and circumstances surrounding the design ployee Retirement Income Security Act of (5) assuring that any tax, penalty, or sanc- and operation of the plan, even though the 1974 (29 U.S.C. 1024(b)(3)) is amended by add- tion that is imposed by reason of a compli- plan is unable to satisfy the mechanical ing at the end the following new sentence: ance failure is not excessive and bears a rea- tests currently used to determine compli- ‘‘The requirement to furnish information sonable relationship to the nature, extent, ance. under the previous sentence shall be satisfied and severity of the failure. SEC. 610. EXTENSION TO ALL GOVERNMENTAL if the administrator makes such information SEC. 608. REPEAL OF THE MULTIPLE USE TEST. PLANS OF MORATORIUM ON APPLI- reasonably available through electronic (a) IN GENERAL.—Paragraph (9) of section CATION OF CERTAIN NON- means or other new technology.’’. DISCRIMINATION RULES APPLICA- 401(m) is amended to read as follows: FFECTIVE ATE BLE TO STATE AND LOCAL PLANS. (b) E D .—The amendment ‘‘(9) REGULATIONS.—The Secretary shall made by this section shall apply to reports (a) IN GENERAL.— prescribe such regulations as may be nec- (1) Subparagraph (G) of section 401(a)(5) of for years beginning after December 31, 2000. essary to carry out the purposes of this sub- the Internal Revenue Code of 1986 and sub- SEC. 613. TECHNICAL CORRECTIONS TO SAVER section and subsection (k), including regula- paragraph (H) of section 401(a)(26) are each ACT. tions permitting appropriate aggregation of amended by striking ‘‘section 414(d))’’ and all Section 517 of the Employee Retirement plans and contributions.’’. that follows and inserting ‘‘section 414(d)).’’. Income Security Act of 1974 (29 U.S.C. 1147) is (b) EFFECTIVE DATE.—The amendment (2) Subparagraph (G) of section 401(k)(3) amended— made by this section shall apply to years be- (1) in subsection (a), by striking ‘‘2001 and ginning after December 31, 2001. and paragraph (2) of section 1505(d) of the Taxpayer Relief Act of 1997 are each amend- 2005 on or after September 1 of each year in- SEC. 609. FLEXIBILITY IN NONDISCRIMINATION, volved’’ and inserting ‘‘2001, 2005, and 2009 in COVERAGE, AND LINE OF BUSINESS ed by striking ‘‘maintained by a State or local government or political subdivision the month of September of each year in- RULES. volved’’; (a) NONDISCRIMINATION.— thereof (or agency or instrumentality there- of)’’. (2) in subsection (b), by adding at the end (1) IN GENERAL.—The Secretary of the the following new sentence: ‘‘To effectuate Treasury shall, by regulation, provide that a (b) CONFORMING AMENDMENTS.— (1) The heading for subparagraph (G) of the purposes of this paragraph, the Secretary plan shall be deemed to satisfy the require- may enter into a cooperative agreement, ments of section 401(a)(4) of the Internal section 401(a)(5) is amended to read as fol- lows: ‘‘GOVERNMENTAL PLANS.—’’. pursuant to the Federal Grant and Coopera- Revenue Code of 1986 if such plan satisfies tive Agreement Act of 1977 (31 U.S.C. 6301 et the facts and circumstances test under sec- (2) The heading for subparagraph (H) of section 401(a)(26) is amended to read as fol- seq.), with the American Savings Education tion 401(a)(4) of such Code, as in effect before Council or any other appropriate, qualified January 1, 1994, but only if— lows: ‘‘EXCEPTION FOR GOVERNMENTAL PLANS.—’’. entity.’’; (A) the plan satisfies conditions prescribed (3) in subsection (e)(2)— by the Secretary to appropriately limit the (3) Subparagraph (G) of section 401(k)(3) is amended by inserting ‘‘GOVERNMENTAL (A) by striking ‘‘Committee on Labor and availability of such test; and Human Resources’’ in subparagraph (D) and (B) the plan is submitted to the Secretary PLANS.—’’ after ‘‘(G)’’. (c) EFFECTIVE DATE.—The amendments inserting ‘‘Committee on Health, Education, for a determination of whether it satisfies made by this section shall apply to years be- Labor, and Pensions’’; such test. ginning after December 31, 2001. (B) by striking subparagraph (F) and in- Subparagraph (B) shall only apply to the ex- SEC. 611. NOTICE AND CONSENT PERIOD RE- serting the following: tent provided by the Secretary. GARDING DISTRIBUTIONS. ‘‘(F) the Chairman and Ranking Member of (2) EFFECTIVE DATES.— (a) EXPANSION OF PERIOD.— the Subcommittee on Labor, Health and (A) REGULATIONS.—The regulation required (1) AMENDMENT OF INTERNAL REVENUE Human Services, and Education of the Com- by paragraph (1) shall apply to years begin- CODE.— mittee on Appropriations of the House of ning after December 31, 2003. (A) IN GENERAL.—Subparagraph (A) of sec- Representatives and the Chairman and (B) CONDITIONS OF AVAILABILITY.—Any con- tion 417(a)(6) is amended by striking ‘‘90- Ranking Member of the Subcommittee on dition of availability prescribed by the Sec- day’’ and inserting ‘‘180-day’’. Labor, Health and Human Services, and Edu- retary under paragraph (1)(A) shall not apply (B) MODIFICATION OF REGULATIONS.—The cation of the Committee on Appropriations before the first year beginning not less than Secretary of the Treasury shall modify the of the Senate;’’; 120 days after the date on which such condi- regulations under sections 402(f), 411(a)(11), (C) by redesignating subparagraph (G) as tion is prescribed. and 417 of the Internal Revenue Code of 1986 subparagraph (J); and (b) COVERAGE TEST.— to substitute ‘‘180 days’’ for ‘‘90 days’’ each (D) by inserting after subparagraph (F) the (1) IN GENERAL.—Section 410(b)(1) (relating place it appears in Treasury Regulations sec- following new subparagraphs: to minimum coverage requirements) is tions 1.402(f)–1, 1.411(a)–11(c), and 1.417(e)– ‘‘(G) the Chairman and Ranking Member of amended by adding at the end the following: 1(b). the Committee on Finance of the Senate; ‘‘(D) In the case that the plan fails to meet (2) AMENDMENT OF ERISA.— ‘‘(H) the Chairman and Ranking Member of the requirements of subparagraphs (A), (B) (A) IN GENERAL.—Section 205(c)(7)(A) of the the Committee on Ways and Means of the and (C), the plan— Employee Retirement Income Security Act House of Representatives; ‘‘(i) satisfies subparagraph (B), as in effect of 1974 (29 U.S.C. 1055(c)(7)(A)) is amended by ‘‘(I) the Chairman and Ranking Member of immediately before the enactment of the striking ‘‘90-day’’ and inserting ‘‘180-day’’. the Subcommittee on Employer-Employee Tax Reform Act of 1986, (B) MODIFICATION OF REGULATIONS.—The Relations of the Committee on Education ‘‘(ii) is submitted to the Secretary for a de- Secretary of the Treasury shall modify the and the Workforce of the House of Rep- termination of whether it satisfies the re- regulations under part 2 of subtitle B of title resentatives; and’’; quirement described in clause (i), and I of the Employee Retirement Income Secu- (4) in subsection (e)(3)— ‘‘(iii) satisfies conditions prescribed by the rity Act of 1974 to the extent that they relate (A) by striking ‘‘There shall be not more Secretary by regulation that appropriately to sections 203(e) and 205 of such Act to sub- than 200 additional participants.’’ in sub- limit the availability of this subparagraph. stitute ‘‘180 days’’ for ‘‘90 days’’ each place it paragraph (A) and inserting ‘‘The partici- Clause (ii) shall apply only to the extent pro- appears. pants in the National Summit shall also in- vided by the Secretary.’’. (3) EFFECTIVE DATE.—The amendments clude additional participants appointed (2) EFFECTIVE DATES.— made by paragraph (1)(A) and (2)(A) and the under this subparagraph.’’; (A) IN GENERAL.—The amendment made by modifications required by paragraph (1)(B) (B) by striking ‘‘one-half shall be ap- paragraph (1) shall apply to years beginning shall apply to years beginning after Decem- pointed by the President,’’ in subparagraph after December 31, 2003. ber 31, 2001. (A)(i) and inserting ‘‘not more than 100 par- (B) CONDITIONS OF AVAILABILITY.—Any con- (b) CONSENT REGULATION INAPPLICABLE TO ticipants shall be appointed under this dition of availability prescribed by the Sec- CERTAIN DISTRIBUTIONS.— clause by the President,’’; retary under regulations prescribed by the (1) IN GENERAL.—The Secretary of the (C) by striking ‘‘one-half shall be appointed Secretary under section 410(b)(1)(D) of the Treasury shall modify the regulations under by the elected leaders of Congress’’ in sub- Internal Revenue Code of 1986 shall not apply section 411(a)(11) of the Internal Revenue paragraph (A)(ii) and inserting ‘‘not more before the first year beginning not less than Code of 1986 and under section 205 of the Em- than 100 participants shall be appointed 120 days after the date on which such condi- ployee Retirement Income Security Act of under this clause by the elected leaders of tion is prescribed. 1974 to provide that the description of a par- Congress’’;

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00043 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.007 pfrm02 PsN: H02PT1 H1778 CONGRESSIONAL RECORD — HOUSE May 2, 2001 (D) by redesignating subparagraph (B) as ‘‘(A) to the corporation, or which on the first day of any plan year has, subparagraph (C); and ‘‘(B) to an entity other than the corpora- in aggregation with all members of the con- (E) by inserting after subparagraph (A) the tion or a plan described in paragraph trolled group of such employer, 100 or fewer following new subparagraph: (4)(B)(ii). employees. ‘‘(B) PRESIDENTIAL AUTHORITY FOR ADDI- ‘‘(3) PAYMENT BY THE CORPORATION.—If ben- ‘‘(II) In the case of a plan maintained by TIONAL APPOINTMENTS.—The President, in efits of a missing participant were trans- two or more contributing sponsors that are consultation with the elected leaders of Con- ferred to the corporation under paragraph not part of the same controlled group, the gress referred to in subsection (a), may ap- (1), the corporation shall, upon location of employees of all contributing sponsors and point under this subparagraph additional the participant or beneficiary, pay to the controlled groups of such sponsors shall be participants to the National Summit. The participant or beneficiary the amount trans- aggregated for purposes of determining number of such additional participants ap- ferred (or the appropriate survivor benefit) whether any contributing sponsor is a small pointed under this subparagraph may not ex- either— employer.’’. ceed the lesser of 3 percent of the total num- ‘‘(A) in a single sum (plus interest), or (c) EFFECTIVE DATE.—The amendments ber of all additional participants appointed ‘‘(B) in such other form as is specified in made by this section shall apply to plans es- under this paragraph, or 10. Such additional regulations of the corporation. tablished after December 31, 2001. participants shall be appointed from persons ‘‘(4) PLANS DESCRIBED.—A plan is described SEC. 703. REDUCTION OF ADDITIONAL PBGC PRE- nominated by the organization referred to in in this paragraph if— MIUM FOR NEW AND SMALL PLANS. subsection (b)(2) which is made up of private ‘‘(A) the plan is a pension plan (within the (a) NEW PLANS.—Subparagraph (E) of sec- sector businesses and associations partnered meaning of section 3(2))— tion 4006(a)(3) of the Employee Retirement with Government entities to promote long ‘‘(i) to which the provisions of this section Income Security Act of 1974 (29 U.S.C. term financial security in retirement do not apply (without regard to this sub- 1306(a)(3)(E)) is amended by adding at the end through savings and with which the Sec- section), and the following new clause: retary is required thereunder to consult and ‘‘(ii) which is not a plan described in para- ‘‘(v) In the case of a new defined benefit cooperate and shall not be Federal, State, or graphs (2) through (11) of section 4021(b), and plan, the amount determined under clause local government employees.’’; ‘‘(B) at the time the assets are to be dis- (ii) for any plan year shall be an amount (5) in subsection (e)(3)(C) (as redesignated), tributed upon termination, the plan— equal to the product of the amount deter- by striking ‘‘January 31, 1998’’ and inserting ‘‘(i) has missing participants, and mined under clause (ii) and the applicable ‘‘May 1, 2001, May 1, 2005, and May 1, 2009, for ‘‘(ii) has not provided for the transfer of as- percentage. For purposes of this clause, the each of the subsequent summits, respec- sets to pay the benefits of all missing par- term ‘applicable percentage’ means— tively’’; ticipants to another pension plan (within the ‘‘(I) 0 percent, for the first plan year. (6) in subsection (f)(1)(C), by inserting meaning of section 3(2)). ‘‘(II) 20 percent, for the second plan year. ‘‘, no later than 90 days prior to the date of ‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.— ‘‘(III) 40 percent, for the third plan year. the commencement of the National Sum- Subsections (a)(1) and (a)(3) shall not apply ‘‘(IV) 60 percent, for the fourth plan year. mit,’’ after ‘‘comment’’; to a plan described in paragraph (4).’’. ‘‘(V) 80 percent, for the fifth plan year. (7) in subsection (g), by inserting ‘‘, in con- (b) CONFORMING AMENDMENTS.—Section For purposes of this clause, a defined benefit sultation with the congressional leaders 206(f) of such Act (29 U.S.C. 1056(f)) is amend- plan (as defined in section 3(35)) maintained specified in subsection (e)(2),’’ after ‘‘report’’ ed— by a contributing sponsor shall be treated as the first place it appears; (1) by striking ‘‘title IV’’ and inserting a new defined benefit plan for each of its (8) in subsection (i)— ‘‘section 4050’’; and first 5 plan years if, during the 36-month pe- (A) by striking ‘‘beginning on or after Oc- (2) by striking ‘‘the plan shall provide riod ending on the date of the adoption of tober 1, 1997’’ in paragraph (1) and inserting that,’’. the plan, the sponsor and each member of (c) EFFECTIVE DATE.—The amendment ‘‘2001, 2005, and 2009’’; and any controlled group including the sponsor made by this section shall apply to distribu- (B) by adding at the end the following new (or any predecessor of either) did not estab- tions made after final regulations imple- paragraph: lish or maintain a plan to which this title ‘‘(3) RECEPTION AND REPRESENTATION AU- menting subsections (c) and (d) of section 4050 of the Employee Retirement Income Se- applies with respect to which benefits were THORITY.—The Secretary is hereby granted accrued for substantially the same employ- reception and representation authority lim- curity Act of 1974 (as added by subsection (a)), respectively, are prescribed. ees as are in the new plan.’’. ited specifically to the events at the Na- (b) SMALL PLANS.—Paragraph (3) of section tional Summit. The Secretary shall use any SEC. 702. REDUCED PBGC PREMIUM FOR NEW PLANS OF SMALL EMPLOYERS. 4006(a) of the Employee Retirement Income private contributions accepted in connection Security Act of 1974 (29 U.S.C. 1306(a)), as with the National Summit prior to using (a) IN GENERAL.—Subparagraph (A) of sec- tion 4006(a)(3) of the Employee Retirement amended by section 702(b), is amended— funds appropriated for purposes of the Na- (1) by striking ‘‘The’’ in subparagraph tional Summit pursuant to this paragraph.’’; Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(A)) is amended— (E)(i) and inserting ‘‘Except as provided in and subparagraph (G), the’’, and (9) in subsection (k)— (1) in clause (i), by inserting ‘‘other than a new single-employer plan (as defined in sub- (2) by inserting after subparagraph (F) the (A) by striking ‘‘shall enter into a contract following new subparagraph: on a sole-source basis’’ and inserting ‘‘may paragraph (F)) maintained by a small em- ployer (as so defined),’’ after ‘‘single-em- ‘‘(G)(i) In the case of an employer who has enter into a contract on a sole-source basis’’; 25 or fewer employees on the first day of the and ployer plan,’’, (2) in clause (iii), by striking the period at plan year, the additional premium deter- (B) by striking ‘‘fiscal year 1998’’ and in- mined under subparagraph (E) for each par- serting ‘‘fiscal years 2001, 2005, and 2009’’. the end and inserting ‘‘, and’’, and (3) by adding at the end the following new ticipant shall not exceed $5 multiplied by the TITLE VII—OTHER ERISA PROVISIONS clause: number of participants in the plan as of the SEC. 701. MISSING PARTICIPANTS. ‘‘(iv) in the case of a new single-employer close of the preceding plan year. ‘‘(ii) For purposes of clause (i), whether an (a) IN GENERAL.—Section 4050 of the Em- plan (as defined in subparagraph (F)) main- employer has 25 or fewer employees on the ployee Retirement Income Security Act of tained by a small employer (as so defined) first day of the plan year is determined tak- 1974 (29 U.S.C. 1350) is amended by redesig- for the plan year, $5 for each individual who ing into consideration all of the employees nating subsection (c) as subsection (e) and by is a participant in such plan during the plan of all members of the contributing sponsor’s inserting after subsection (b) the following year.’’. new subsections: (b) DEFINITION OF NEW SINGLE-EMPLOYER controlled group. In the case of a plan main- ‘‘(c) MULTIEMPLOYER PLANS.—The corpora- PLAN.—Section 4006(a)(3) of the Employee tained by two or more contributing sponsors, tion shall prescribe rules similar to the rules Retirement Income Security Act of 1974 (29 the employees of all contributing sponsors in subsection (a) for multiemployer plans U.S.C. 1306(a)(3)) is amended by adding at the and their controlled groups shall be aggre- covered by this title that terminate under end the following new subparagraph: gated for purposes of determining whether section 4041A. ‘‘(F)(i) For purposes of this paragraph, a the 25-or-fewer-employees limitation has ‘‘(d) PLANS NOT OTHERWISE SUBJECT TO single-employer plan maintained by a con- been satisfied.’’. TITLE.— tributing sponsor shall be treated as a new (c) EFFECTIVE DATES.— ‘‘(1) TRANSFER TO CORPORATION.—The plan single-employer plan for each of its first 5 (1) SUBSECTION (a).—The amendments made administrator of a plan described in para- plan years if, during the 36-month period by subsection (a) shall apply to plans estab- graph (4) may elect to transfer a missing par- ending on the date of the adoption of such lished after December 31, 2001. ticipant’s benefits to the corporation upon plan, the sponsor or any member of such (2) SUBSECTION (b).—The amendments made termination of the plan. sponsor’s controlled group (or any prede- by subsection (b) shall apply to plan years ‘‘(2) INFORMATION TO THE CORPORATION.—To cessor of either) did not establish or main- beginning after December 31, 2001. the extent provided in regulations, the plan tain a plan to which this title applies with SEC. 704. AUTHORIZATION FOR PBGC TO PAY IN- administrator of a plan described in para- respect to which benefits were accrued for TEREST ON PREMIUM OVERPAY- graph (4) shall, upon termination of the plan, substantially the same employees as are in MENT REFUNDS. provide the corporation information with re- the new single-employer plan. (a) IN GENERAL.—Section 4007(b) of the Em- spect to benefits of a missing participant if ‘‘(ii)(I) For purposes of this paragraph, the ployment Retirement Income Security Act the plan transfers such benefits— term ‘small employer’ means an employer of 1974 (29 U.S.C. 1307(b)) is amended—

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00044 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.007 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1779 (1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’, (1) Section 4021 of the Employee Retire- tion under subparagraph (B) of section and ment Income Security Act of 1974 (29 U.S.C. 203(a)(3) of the Employee Retirement Income (2) by inserting at the end the following 1321) is amended— Security Act of 1974 (29 U.S.C. 1053(a)(3)(B)) new paragraph: (A) in subsection (b)(9), by striking ‘‘as de- to provide that the notification required by ‘‘(2) The corporation is authorized to pay, fined in section 4022(b)(6)’’, and such regulation in connection with any sus- subject to regulations prescribed by the cor- (B) by adding at the end the following new pension of benefits described in such sub- poration, interest on the amount of any subsection: paragraph— overpayment of premium refunded to a des- ‘‘(d) For purposes of subsection (b)(9), the (1) in the case of an employee who returns ignated payor. Interest under this paragraph term ‘substantial owner’ means an indi- to service under the plan after commence- shall be calculated at the same rate and in vidual who, at any time during the 60-month ment of payment of benefits under the plan— the same manner as interest is calculated for period ending on the date the determination (A) shall be made during the first calendar underpayments under paragraph (1).’’. is being made— month or payroll period in which the plan (b) EFFECTIVE DATE.—The amendment ‘‘(1) owns the entire interest in an unincor- withholds payments, and made by subsection (a) shall apply to inter- porated trade or business, (B) if a reduced rate of future benefit ac- est accruing for periods beginning not earlier ‘‘(2) in the case of a partnership, is a part- crual will apply to the returning employee than the date of the enactment of this Act. ner who owns, directly or indirectly, more (as of the first date of participation in the SEC. 705. SUBSTANTIAL OWNER BENEFITS IN than 10 percent of either the capital interest plan by the employee after returning to TERMINATED PLANS. or the profits interest in such partnership, or work), shall include a statement that the (a) MODIFICATION OF PHASE-INOFGUAR- ‘‘(3) in the case of a corporation, owns, di- rate of future benefit accrual will be re- ANTEE.—Section 4022(b)(5) of the Employee rectly or indirectly, more than 10 percent in duced, and Retirement Income Security Act of 1974 (29 value of either the voting stock of that cor- (2) in the case of any employee who is not U.S.C. 1322(b)(5)) is amended to read as fol- poration or all the stock of that corporation. described in paragraph (1)— lows: For purposes of paragraph (3), the construc- (A) may be included in the summary plan ‘‘(5)(A) For purposes of this paragraph, the tive ownership rules of section 1563(e) of the description for the plan furnished in accord- term ‘majority owner’ means an individual Internal Revenue Code of 1986 shall apply ance with section 104(b) of such Act (29 who, at any time during the 60-month period (determined without regard to section U.S.C. 1024(b)), rather than in a separate no- ending on the date the determination is 1563(e)(3)(C)).’’. tice, and being made— (2) Section 4043(c)(7) of such Act (29 U.S.C. (B) need not include a copy of the relevant ‘‘(i) owns the entire interest in an unincor- 1343(c)(7)) is amended by striking ‘‘section plan provisions. porated trade or business, 4022(b)(6)’’ and inserting ‘‘section 4021(d)’’. (b) EFFECTIVE DATE.—The modification ‘‘(ii) in the case of a partnership, is a part- (d) EFFECTIVE DATES.— made under this section shall apply to plan ner who owns, directly or indirectly, 50 per- (1) IN GENERAL.—Except as provided in years beginning after December 31, 2001. cent or more of either the capital interest or paragraph (2), the amendments made by this SEC. 708. STUDIES. section shall apply to plan terminations— the profits interest in such partnership, or (a) MODEL SMALL EMPLOYER GROUP PLANS (A) under section 4041(c) of the Employee ‘‘(iii) in the case of a corporation, owns, di- STUDY.—As soon as practicable after the Retirement Income Security Act of 1974 (29 rectly or indirectly, 50 percent or more in date of the enactment of this Act, the Sec- U.S.C. 1341(c)) with respect to which notices value of either the voting stock of that cor- retary of Labor, in consultation with the of intent to terminate are provided under poration or all the stock of that corporation. Secretary of the Treasury, shall conduct a section 4041(a)(2) of such Act (29 U.S.C. For purposes of clause (iii), the constructive study to determine— 1341(a)(2)) after December 31, 2001, and ownership rules of section 1563(e) of the In- (1) the most appropriate form or forms of— (B) under section 4042 of such Act (29 U.S.C. ternal Revenue Code of 1986 shall apply (de- (A) employee pension benefit plans which 1342) with respect to which proceedings are termined without regard to section would— instituted by the corporation after such 1563(e)(3)(C)). (i) be simple in form and easily maintained date. ‘‘(B) In the case of a participant who is a by multiple small employers, and (2) CONFORMING AMENDMENTS.—The amend- majority owner, the amount of benefits guar- (ii) provide for ready portability of benefits ments made by subsection (c) shall take ef- anteed under this section shall equal the for all participants and beneficiaries, fect on January 1, 2002. product of— (B) alternative arrangements providing ‘‘(i) a fraction (not to exceed 1) the numer- SEC. 706. CIVIL PENALTIES FOR BREACH OF FI- comparable benefits which may be estab- DUCIARY RESPONSIBILITY. ator of which is the number of years from lished by employee or employer associations, (a) IMPOSITION AND AMOUNT OF PENALTY the later of the effective date or the adoption and MADE DISCRETIONARY.—Section 502(l)(1) of (C) alternative arrangements providing date of the plan to the termination date, and the Employee Retirement Income Security comparable benefits to which employees may the denominator of which is 10, and Act of 1974 (29 U.S.C. 1132(l)(1)) is amended— contribute in a manner independent of em- ‘‘(ii) the amount of benefits that would be (1) by striking ‘‘shall’’ and inserting ployer sponsorship, and guaranteed under this section if the partici- ‘‘may’’, and (2) appropriate methods and strategies for pant were not a majority owner.’’. (2) by striking ‘‘equal to’’ and inserting ODIFICATION OF ALLOCATION OF AS- making pension plan coverage described in (b) M ‘‘not greater than’’. SETS.— (b) APPLICABLE RECOVERY AMOUNT.—Sec- paragraph (1) more widely available to (1) Section 4044(a)(4)(B) of the Employee tion 502(l)(2) of such Act (29 U.S.C. 1132(l)(2)) American workers. Retirement Income Security Act of 1974 (29 is amended by inserting after ‘‘fiduciary or (b) MATTERS TO BE CONSIDERED.—In con- U.S.C. 1344(a)(4)(B)) is amended by striking other person’’ the following: ‘‘(or from any ducting the study under subsection (a), the ‘‘section 4022(b)(5)’’ and inserting ‘‘section other person on behalf of any such fiduciary Secretary of Labor shall consider the ade- 4022(b)(5)(B)’’. or other person)’’. quacy and availability of existing employee (2) Section 4044(b) of such Act (29 U.S.C. (c) OTHER RULES.—Section 502(l) of the Em- pension benefit plans and the extent to 1344(b)) is amended— ployee Retirement Income Security Act of which existing models may be modified to be (A) by striking ‘‘(5)’’ in paragraph (2) and 1974 (29 U.S.C. 1132(l)) is amended by adding more accessible to both employees and em- inserting ‘‘(4), (5),’’, and at the end the following new paragraphs: ployers. (B) by redesignating paragraphs (3) ‘‘(5) A person shall be jointly and severally (c) REPORT.—Not later than 18 months through (6) as paragraphs (4) through (7), re- liable for the penalty described in paragraph after the date of the enactment of this Act, spectively, and by inserting after paragraph (1) to the same extent that such person is the Secretary of Labor shall report the re- (2) the following new paragraph: jointly and severally liable for the applicable sults of the study under subsection (a), to- ‘‘(3) If assets available for allocation under recovery amount on which the penalty is gether with the Secretary’s recommenda- paragraph (4) of subsection (a) are insuffi- based. tions, to the Committee on Education and cient to satisfy in full the benefits of all in- ‘‘(6) No penalty shall be assessed under this the Workforce and the Committee on Ways dividuals who are described in that para- subsection unless the person against whom and Means of the House of Representatives graph, the assets shall be allocated first to the penalty is assessed is given notice and and the Committee on Health, Education, benefits described in subparagraph (A) of opportunity for a hearing with respect to the Labor, and Pensions and the Committee on that paragraph. Any remaining assets shall violation and applicable recovery amount.’’. Finance of the Senate. Such recommenda- then be allocated to benefits described in (d) EFFECTIVE DATE.—The amendments tions shall include one or more model plans subparagraph (B) of that paragraph. If assets made by this section shall apply to any described in subsection (a)(1)(A) and model allocated to such subparagraph (B) are insuf- breach of fiduciary responsibility or other alternative arrangements described in sub- ficient to satisfy in full the benefits de- violation of part 4 of subtitle B of title I of sections (a)(1)(B) and (a)(1)(C) which may scribed in that subparagraph, the assets the Employee Retirement Income Security serve as the basis for appropriate adminis- shall be allocated pro rata among individuals Act of 1974 occurring on or after the date of trative or legislative action. on the basis of the present value (as of the the enactment of this Act. (d) STUDY ON EFFECT OF LEGISLATION.—Not termination date) of their respective benefits SEC. 707. BENEFIT SUSPENSION NOTICE. later than 5 years after the date of the enact- described in that subparagraph.’’. (a) MODIFICATION OF REGULATION.—The ment of this Act, the Secretary of Labor (c) CONFORMING AMENDMENTS.— Secretary of Labor shall modify the regula- shall submit to the Committee on Education

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00045 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.007 pfrm02 PsN: H02PT1 H1780 CONGRESSIONAL RECORD — HOUSE May 2, 2001 and the Workforce of the House of Rep- The Chair recognizes the gentleman The bill contains 22 amendments to resentatives and the Committee on Health, from Ohio (Mr. BOEHNER). the Employee Retirement Income Se- Education, Labor, and Pensions of the Sen- Mr. BOEHNER. Mr. Speaker, I yield curity Act of 1974. The important ate a report on the effect of the provisions of myself such time as I may consume. this Act on pension plan coverage, including changes within our committee’s juris- any change in— Mr. Speaker, I rise today in strong diction include granting relief from ex- (1) the extent of pension plan coverage for support of H.R. 10. Improving retire- cessive PBGC premiums for new small low and middle-income workers, ment security is a top priority of this business plans; accelerating the vesting (2) the levels of pension plan benefits gen- Congress as we work to secure Amer- of workers’ accounts; repealing and erally, ica’s future. modifying a wide range of unnecessary (3) the quality of pension plan coverage Mr. Speaker, improving retirement and outdated rules and regulations; generally, security is not just about fixing Social providing more frequent benefit state- (4) workers’ access to and participation in Security. It is also about expanding ac- pension plans, and ments to workers; requiring enhanced (5) retirement security. cess to private pension plans and mak- disclosure and other protections when TITLE VIII—PLAN AMENDMENTS ing innovations that will maximize future pension benefits are reduced, as every American’s opportunity for a SEC. 801. PROVISIONS RELATING TO PLAN in the case of conversion to cash bal- AMENDMENTS. safe and secure retirement. We are ance accounts; and repealing the so- (a) IN GENERAL.—If this section applies to committed to strengthening the retire- called full funding limit that arbi- any plan or contract amendment— ment security of workers and their trarily limits defined benefit plan fund- (1) such plan or contract shall be treated as families by expanding pension coverage ing to a less than actuarially sound being operated in accordance with the terms and protecting their pensions and their level. of the plan during the period described in retirement savings. subsection (b)(2)(A); and Pension reform is a critical issue for (2) except as provided by the Secretary of Today, we take up a bill that will di- our Nation’s increasingly mobile work- the Treasury, such plan shall not fail to rectly improve the retirement security force, and it spans the generation gap. meet the requirements of section 411(d)(6) of of American workers. The Comprehen- It concerns both younger workers, the Internal Revenue Code of 1986 or section sive Retirement Security and Pension whose retirement security is most in 204(g) of the Employee Retirement Income Reform Act of 2001 makes retirement Security Act of 1974 by reason of such doubt today, and older workers, the 76 security more available to millions of million baby boomers who are now ap- amendment. workers by, one, expanding small busi- (b) AMENDMENTS TO WHICH SECTION AP- proaching retirement age. ness retirement plans, which cover 75 PLIES.— Whether you are an older worker, a (1) IN GENERAL.—This section shall apply to percent of the workforce; two, allowing member of Generation X or someone any amendment to any plan or annuity con- workers to save more; three, address- who falls in between, we all have a tract which is made— ing the needs of an increasingly mobile stake in this issue. Through passage of (A) pursuant to any amendment made by workforce through greater portability; this Act, or pursuant to any regulation this bill, we can all take credit for four, making pensions more secure; and making a real difference in the lives of issued under this Act; and five, cutting the red tape that has ham- (B) on or before the last day of the first our constituents. strung employers who want to estab- plan year beginning on or after January 1, Mr. Speaker, I reserve the balance of lish pension plans for their employees. 2004. my time. In the case of a governmental plan (as de- This legislation, introduced by my two colleagues, the gentleman from Mr. ANDREWS. Mr. Speaker, I yield fined in section 414(d) of the Internal Rev- myself such time as I may consume. enue Code of 1986), this paragraph shall be Ohio (Mr. PORTMAN) and the gentleman applied by substituting ‘‘2006’’ for ‘‘2004’’. from Maryland (Mr. CARDIN), is truly Mr. Speaker, I rise in support of the (2) CONDITIONS.—This section shall not bipartisan. They have done a great job legislation. I congratulate our friends, apply to any amendment unless— for this House on this issue over 3 years the gentleman from Ohio (Mr. (A) during the period— now, and our committee, the Com- PORTMAN), the gentleman from Mary- (i) beginning on the date the legislative or mittee on Education and the Work- land (Mr. CARDIN), and on behalf of our regulatory amendment described in para- ranking member, the gentleman from graph (1)(A) takes effect (or in the case of a force, reported H.R. 10 by a bipartisan California (Mr. GEORGE MILLER), we ex- plan or contract amendment not required by voice vote. In July 2000, the House such legislative or regulatory amendment, passed a virtually identical bill, H.R. tend our appreciation to the gentleman the effective date specified by the plan); and 1102, by a vote of 401 to 25. from Ohio (Chairman BOEHNER), and (ii) ending on the date described in para- The committee has made every effort the subcommittee chairman, the gen- graph (1)(B) (or, if earlier, the date the plan to maintain this bipartisan approach. tleman from Texas (Mr. SAM JOHNSON), or contract amendment is adopted), Both this Congress and last, we have for their courtesy and cooperation in the plan or contract is operated as if such kept our Democrat counterparts and this bipartisan effort. plan or contract amendment were in effect; the administration fully informed as to I concur with the remarks the chair- and procedural and substantive issues re- man just made that this bill will make (B) such plan or contract amendment ap- lated to the bill. We have solicited a positive difference in a lot of people’s plies retroactively for such period. their input and sought to accommodate lives. It will make a difference when The SPEAKER pro tempore. After 90 their concerns. In addition, we have people are determining how much they minutes of debate on the bill as amend- worked closely with our colleagues on can afford to put into their 401(k) or ed, it shall be in order to consider the the Committee on Ways and Means, IRA. It will positively affect that deci- further amendment printed in House and I want to thank the gentleman sion, because they will be able to put Report 107–53, which may be offered more in. only by a Member designated in the re- from California (Chairman THOMAS) It will positively affect people’s lives port, shall be considered read and shall and his staff for their help and leader- be debatable for 1 hour, equally divided ship in moving this bill to the floor. when a small business person sits down and controlled by the proponent and an Rarely has such an ambitious piece at the end of the year and decides what opponent. of legislation earned such broad sup- to do with the excess earnings that he The gentleman from California (Mr. port. Today, about 175 Republicans and or she has generated during the year. THOMAS) and the gentleman from New 130 Democrats are cosponsors of the Because of so-called overfunding provi- York (Mr. RANGEL) each will control 30 bill. More than 100 groups have en- sions in the present law, we actually minutes of debate on the bill, and the dorsed the bill, both businesses and have a law that makes it illegal for gentleman from Ohio (Mr. BOEHNER) unions, from AFSCME, the Teamsters, small business owners to put substan- and the gentleman from New Jersey the Laborers International, and the tial amounts of money into a pension (Mr. ANDREWS) each will control 15 NEA to the U.S. Chamber, the National fund. We agree that the opposite ought minutes of debate on the bill. Federation of Independent Business, to be the case, that we should encour- The Chair understands that the rep- the National Association of Manufac- age people to put as much as possible resentatives of the Committee on Edu- turers, the American Benefits Council, for as many people as possible into cation and the Workforce will manage and the American Council of Life In- their funds, and that is an achievement their time at the outset of the debate. surers. of this legislation.

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00046 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.007 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1781 b 1200 because I think this is the most signifi- in fact a step in the right direction to- It will make a difference when many cant overhaul of retirement law in 25 ward ensuring retirement security for Americans who have left the workforce years. Americans, I do not think that this for a while want to catch up for the Twenty-five years ago, it was com- legislation really goes far enough in years that they have missed. Whether mon for someone to work an entire achieving this goal for everyone. it was for raising children or for pur- lifetime in one job and retire with a As it stands, this bill is certainly not suing an education, for various rea- pension. A generation later, America as comprehensive as it could be, and is sons, people leave the workforce. Their has a mobile workforce, and it is not not as comprehensive as it should be, a income either declines or disappears al- uncommon for employees to spend just fact that I think is clearly recognized together. They are unable to put a few years at one job and then move by those of us who join the gentleman money away during those years. When to another. As a result, it is harder and from Massachusetts (Mr. NEAL) in sup- they return to the workforce and wish harder for people to add to their nest port of his amendment that will be of- to catch up for those lost years, there egg with employer support. fered in a little while. are artificial limitations on what It is not that employers do not want Today, despite the best intentions of Americans can save. to help out. It is just that rules and others, the underlying legislation does This legislation removes those artifi- regulations make it difficult. To these not quite live up to its billing. Even cial limitations and will help many Americans, both employers and em- more important, it does not quite live people, especially women, catch up for ployees who want to sock away some- up enough to the ideal of this rep- those missed years in the workforce. thing for retirement, help is on the resentative body attending to the We are particularly pleased that this way. This Comprehensive Retirement needs of all the Nation’s people. legislation corrects an unfair and Security and Pension Reform Act of The Portman-Cardin bill does not anomalous situation referred to as the 2001 is going to do just that. have something for everyone, but it section 415 problem. There are many As chair of the Subcommittee on Em- certainly has a lot for a few. In fact, Americans across the country who for ployer-Employee Relations as well as a the Center on Budget and Policy Prior- years have driven a truck or worked on member of the Committee on Ways and ities has most recently published a construction sites or worked for a pub- Means, one of my objectives has been paper on this bill based on a rather ex- lic employer who have earned substan- to find ways to expand retirement cov- tensive study. tial pensions, but when they go to col- erage, and I have had a lot of help from It finds that while the pension provi- lect those pensions when they retire, my Democrat colleagues and by small sions will increase savings for some, it they find that they cannot collect all businesses, as well as to search for does little or nothing to increase sav- that they are entitled to because of an ways to make retirement plans more ings for the people who are most in anomaly that exists under section 415 friendly. need of our help, low- and middle-in- of the Internal Revenue Code. It is no secret that the cooling econ- come workers that comprise the major- This bill corrects that problem. It omy has bothered people, and people ity of our workforce. says to those individuals that they will have watched their retirement ac- Specifically, the Institute for Tax- be able to draw down the income that counts, their balances, fall. Of course, ation and Economic Policy has found their plan promised them and that this makes them uneasy. They are sav- that 76.9 percent of the pension and they thought they had earned during ing for their golden years, retirement; IRA tax reductions that will result in those years. This is by no means an at- and their nest egg is getting smaller this bill would go to people making tribute or asset for people at the very and smaller. $67,000 or more. So if you earn less than top of the income scale, it is for people It is time to act now. This Congress $66,000, you will not be able to expect that have driven trucks and built is going to do that. To better prepare as much as you should if the bill be- buildings and worked in public hos- for the day when they no longer show comes law in its current form. pitals and for governments and schools. up for work every morning, the best That same institute has also found It is one of the reasons why this leg- way to give these people peace of mind that less than 1 percent of the pension islation enjoys the support of is to enact H.R. 10. If we want to secure and IRA tax provisions of this bill AFCSME, the National Education As- America’s future, people have to feel would go to persons making 25 percent sociation, and many, many other labor confident about their retirement; and or less. That is 40 percent of our Na- organizations across the country. by passing this bill, we have taken a tion’s working population. I want to We understand, and later there will long step toward making them feel repeat that for those who might not be an amendment offered that speaks that way. have heard what I just said. Forty per- to this point, that there are many I think this step down the road to cent of the members of our workforce Americans left out of the private pen- strengthening our private employer- will receive only 1 percent of the bene- sion system altogether, about 70 mil- based pension system for all Ameri- fits yielded as a result of this bill. lion of them. We believe that our cans, especially for all of the 70 million Fortunately, we have a way to make amendment, offered by the gentleman baby boomers who are nearing retire- this bill actually work better for all from Massachusetts (Mr. NEAL), co- ment age, is very important. We have people. We can do that. The way to do sponsored by myself and others, will to continue down this bipartisan path it is to adopt a substitute that will be help address that problem. But it is to ensure that our American workers offered a little while later. clear that the underlying bill achieves can enjoy their golden years com- As we have heard and we will hear a number of positive things for people fortably and securely. Let us pass this again, that substitute would leave in- across the spectrum. bill to protect our seniors. tact the base bill and add a few provi- For this reason, I am pleased to join Mr. ANDREWS. Mr. Speaker, I am sions that, by their addition, actually both Republican and Democratic col- pleased to yield 3 minutes to our make this a bill that we can be proud leagues in support. friend, the gentleman from Massachu- of and a bill that would truly make a Mr. Speaker, I reserve the balance of setts (Mr. TIERNEY), a strong supporter difference. my time. of retiree rights, particularly those in As we know, the version of this legis- Mr. BOEHNER. Mr. Speaker, I yield 3 the telecommunications industry, and lation being considered in the Senate minutes to the gentleman from Texas the author of important legislation in includes measures that would address (Mr. SAM JOHNSON), the chairman of that area. the needs of those low- and moderate- the Subcommittee on Employer-Em- Mr. TIERNEY. Mr. Speaker, I thank income savers who contribute to retire- ployee Relations. the gentleman not only for the time, ment plans. This amendment seeks to Mr. SAM JOHNSON of Texas. Mr. but for the tremendous effort he has bring H.R. 10 more in line with that Speaker, I thank the gentleman for made in trying to make this decent bill version. yielding time to me. even better. Specifically, what this amendment Mr. Speaker, I thank our Democratic Mr. Speaker, I am what we might would do is simply expand the existing colleagues for supporting us on this. It term a conditional supporter of H.R. 10. pension coverage for those who cur- is with great pleasure that I rise today, While I believe that this legislation is rently contribute to pension plans, but

VerDate 02-MAY-2001 00:02 May 03, 2001 Jkt 089060 PO 00000 Frm 00047 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.037 pfrm02 PsN: H02PT1 H1782 CONGRESSIONAL RECORD — HOUSE May 2, 2001 also extend it to those who, for what- Mr. Speaker, this legislation is vitally need- amount an individual can contribute to ever reason, do not and cannot. ed. Only half of all private sector workers have retirement accounts, and it allows in- The fact is that when weighed any kind of pension and only 20 percent of dividuals 50 years and older to make against paying medical bills, planning small businesses offer retirement plans. catch-up contributions to their 401(k) for a child’s college education, and H.R. 10 allows workers to save more money plans beginning in 2002, and in 2005 it making mortgage payments, retire- in their IRAs and 401(k) plans. Congress has will be indexed for inflation. ment planning remains a low priority not raised the contribution limits on IRAs and This measure will also require faster for many families and working people. pensions since the early 1980s. This legisla- vesting of pensions, increase pension Mr. Speaker, this is a legitimate con- tion is timely because it addresses a very real portability, and reduce fees for smaller cern that I do not believe H.R. 10 alone and growing concern for millions of Americans business pension plans. takes any significant steps to address. trying to figure out how best to save for their In the next 15 years, Mr. Speaker, 76 One final point, Mr. Speaker. If the retirement. With this bill, we can change the million baby boomers will retire. It is argument is ever raised that the provi- retirement outlook for millions of Americans. time that we pass legislation that sions of this bill are too expensive, let The provisions in this bill are the most sig- helps encourage retirement and pen- us remember that it is only a fraction nificant expansion of pension law in recent sion savings for all workers. of the cost of the base bill, and we have history. Both employers and employees are With the Social Security trust fund started in this body to have the major- encouraged to create and participate in pen- currently expected to be exhausted by ity try to give away billions of dollars sion plans. 2037, we must act now to ensure the fi- to the wealthiest 2 percent through es- Specifically, the current $2,000 IRA con- nancial security of future generations. tate tax provisions. tribution limit for both traditional and Roth I believe H.R. 10 is a step in that direc- We can do better. We should do bet- IRAs are increased to $5,000 by 2003 and in- tion. I also want to commend my friend, ter with this bill. dexed for inflation thereafter. the gentleman from Massachusetts The SPEAKER pro tempore (Mr. Second, the bill provides increased contribu- (Mr. TIERNEY), for working hard to in- THORNBERRY). Without objection, the tion limits on pre-tax salary contribution to clude language in this bill that would gentleman from Texas (Mr. SAM JOHN- pension plans. For example, the limit on salary require the Department of Labor to SON) will control the time of the gen- reduction contributions to 401(k)-type plans conduct a study on the impact of H.R. tleman from Ohio (Mr. BOEHNER). will be raised to $15,000 by 2005. 10 on low- and moderate-income work- There was no objection. Third, the legislation includes additional ers. I believe we need to be fair in pro- Mr. SAM JOHNSON of Texas. Mr. ‘‘catch-up’’ provisions that allow workers aged viding incentives to these low- and Speaker, I yield myself such time as I 50 and older to save even more for their re- moderate-income workers, as well as may consume. tirement needs. for those in the upper income brackets, Mr. Speaker, I would just like to Fourth, the bill includes a portability provi- to participate in their retirement comment that this bill has helped sion which allows workers to ‘‘roll over’’ their small businesses, those with less than plans. pension savings between plans when they Mr. Speaker, I urge my colleagues 50 employees, right on down to one. So change jobs. today to support this bipartisan bill. in order to help those guys who have Finally, the vesting requirements for em- Retirement benefits are critical to en- not in the past been able to fund retire- ployer matching contributions would be re- suring that our aging population has ment plans, they now can, if this bill duced to three years from five. the income to live out their golden passes. I believe that this bill is a significant step for- Mr. Speaker, I yield 1 minute to the years. ward in encouraging American workers to Again, I commend the leadership, the gentlewoman from New Jersey (Mrs. save and invest in America. This is an impor- chairman, and the ranking member on ROUKEMA). tant element of tax reform that this House will the committee for the fine work they (Mrs. ROUKEMA asked and was overwhelmingly endorse. I am confident that have done with this legislation. given permission to revise and extend there will be significant pension and IRA re- Mr. SAM JOHNSON of Texas. Mr. her remarks.) form in the final tax bill that President Bush Speaker, I yield 2 minutes to the gen- Mrs. ROUKEMA. Mr. Speaker, I will sign into law. tleman from California (Mr. MCKEON), thank the gentleman for yielding time I strongly urge my colleagues to support the a subcommittee chairman. to me. important legislation. Mr. MCKEON. Mr. Speaker, I thank Mr. Speaker, as an original cosponsor Mr. ANDREWS. Mr. Speaker, I am the gentleman for yielding time to me. of this bill, I rise in strong support of pleased to yield 2 minutes to the gen- Mr. Speaker, I rise today as a proud it. I want to associate my comments tleman from Wisconsin (Mr. KIND), who cosponsor of this legislation. and observations about the merits of has spoken very strongly for small First, I would like to thank the com- the bill with what the gentleman from business throughout his tenure. mittee chairman, the gentleman from Ohio (Chairman BOEHNER) and our col- (Mr. KIND asked and was given per- Ohio (Mr. BOEHNER), of the Committee league, the gentleman from Texas (Mr. mission to revise and extend his re- on Education and the Workforce, and JOHNSON), have said. marks.) the subcommittee chairman, the gen- I also want to say that the legisla- Mr. KIND. Mr. Speaker, I thank my tleman from Texas (Mr. JOHNSON), for tion is overdue, as has already been friend, the gentleman from New Jersey, their work in bringing this bill to the pointed out, but that it is particularly for yielding me this time, and I com- floor. appropriate at this time because it has mend his leadership and the leadership I would also like to thank the gen- strong support from both employers on the committee for putting together tleman from Ohio (Mr. PORTMAN) and and employees and is the kind of tax a bipartisan package that is going to the gentleman from Maryland (Mr. reform that will help Americans save be very important to American work- CARDIN) for their tireless efforts in and invest in the future. It com- ers throughout the country and to seeking pension reform. plements the tax bill that we are soon their retirement security. Mr. Speaker, this bill provides $52 to have enacted into law. According to the Social Security Ad- billion in tax relief to help hard-work- I guess I just want to say that I am ministration, many retirees receive 19 ing Americans save for their retire- very confident that President Bush will percent of their income from employer- ment and their own security. Further- be signing this legislation in the near provided pensions. However, half of pri- more, H.R. 10 encourages small busi- future. When it was passed last year it vate sector workers have no pension nesses to propose pension plans for its had overwhelming support, bipartisan coverage at all. In addition, only 29 workers. support; and I fully expect that this percent of small businesses with 25 or As a former small businessman, I rec- will be a supplement to tax reform this fewer employees offer pension plans to ognize the need to encourage small year. their employees. businesses to offer pension plans. H.R. This legislation has vast bipartisan support H.R. 10 expands pension coverage and 10 does just that. This bill streamlines including over 300 cosponsors. Last year, the will help to provide retirement plans pension laws and repeals and modifies a same legislation passed by a vote of 401 to for those workers who are currently wide range of unnecessary and out- 25. without such a plan. It increases the dated rules and regulations.

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Specifically, it treats business own- SAM JOHNSON) has 41⁄2 minutes remain- from Maryland (Mr. CARDIN); along ers like other pension plan participants ing and the gentleman from New Jer- with the chairman of the sub- by allowing them to take out loans sey (Mr. ANDREWS) has 41⁄2 minutes re- committee, the gentleman from Ohio from their retirement plans. This will maining. (Mr. BOEHNER); and the gentleman go a long way in encouraging small Mr. SAM JOHNSON of Texas. Mr. from California (Mr. THOMAS), chair- businesses to establish benefit plans. Speaker, I yield 21⁄2 minutes to the gen- man of the Ways and Means Com- For those companies that offer plans tleman from Virginia (Mr. GOODLATTE). mittee, for their efforts in supporting already, it will allow them to include a Mr. GOODLATTE. Mr. Speaker, I this bill. loan feature which will help persuade thank the gentleman from Texas for I urge my colleagues to support this lower-income individuals to contribute yielding me the time to speak on this legislation. to the plan. important legislation that will mod- Mr. ANDREWS. Mr. Speaker, I yield Additionally, several studies show ernize pension laws and provide regu- 2 minutes to the gentlewoman from that one of the many reasons small latory relief to encourage more small New York (Mrs. MALONEY), one of the business employers do not establish businesses to offer retirement plans. Members who represents the heart of pension plans is the administrative Mr. Speaker, while Social Security the financial center of the world. costs associated with maintaining the has been one of our greatest success (Mrs. MALONEY of New York asked plans. H.R. 10 would modify this prob- stories, longer life expectancies, ac- and was given permission to revise and lem by lowering the Pension Benefit companied by a wave of baby boomers extend her remarks.) Guaranty Corporation premiums for that will soon begin to reach retire- Mrs. MALONEY of New York. Mr. the new small business defined benefit ment age, pose new and difficult chal- Speaker, I thank the gentleman for plans. lenges to our Social Security system. yielding me this time and for his lead- Mr. Speaker, the small business edu- However, Social Security was never in- ership on this issue and in so many cation communities believe this reform tended to be the sole source of income other areas. is vital to encourage greater income for retirees. Unfortunately, it has be- Despite the current question about security for all Americans. Therefore, I come the primary source of income the direction of our economy, there is urge all my colleagues to support H.R. rather than a safety net for many el- no doubt that our Nation has been 10. derly individuals. transformed in recent years by the In order to alleviate this problem, I technology sector and the incredible b 1215 urge my colleagues to support H.R. 10, American entrepreneurial spirit that Mr. ANDREWS. Mr. Speaker, I yield the Comprehensive Retirement Secu- has led small start-up companies to be- 2 minutes to the gentlewoman from rity and Pension Reform Act. This bill come the most successful businesses in New York (Mrs. MCCARTHY), one of the is important because it will encourage history. I strongly endorse the strongest voices for fixing the 415 prob- individual savings, such as IRAs as Portman-Cardin legislation, in part be- lem that I spoke to earlier. well as 401(k) plans and other em- cause I believe it helps bring retire- Mrs. MCCARTHY of New York. Mr. ployer-supported retirement plans. By ment savings programs up to speed Speaker, I rise in support of H.R. 10 and knocking down barriers to savings, by with the new economy. its impact on American workers across raising limits and allowing workers to While much of our manufacturing this country. The United States sav- set more aside tax free for their retire- sector has struggled over the last dec- ings rate is at a level that has not been ment, retirees will have the option of ade, the U.S. has created millions of seen since the Great Depression. This saving more for their later years. good-paying new technology jobs, is unfortunate because it forces more I am proud to support this bill be- many in my district. This change in people to work later in life to supple- cause it contains a provision that per- our workforce and the transformation ment their retirement. mits older workers who are returning of the American workplace has had a Retirees can no longer live solely on to the workforce to put even more major impact on government, on finan- Social Security. Furthermore, not ev- aside for their pension. Under this bill, cial services, and on savings. One of the eryone employed is offered a pension or workers over 50 can contribute up to major changes in worker attitudes is some form of retirement plan. That is $5,000 in catch-up contributions for that technology workers expect to why individual retirement accounts 401(k)-type plans. change jobs several times over their initially gained so much support when H.R. 10 also responds to the needs of careers. Given the constant change in created in the 1970s. However, the con- the increasingly mobile workforce we the technology sector, workers demand tribution limit was never adjusted for have in this country by allowing people pension portability and retirement inflation. The current cap of $2,000 does to vest faster in their pension plans plans that will travel with them from not provide much of an incentive to and by allowing portability so Ameri- job to job. save as it used to. People are making cans can move their pension plans from By passing this legislation, we are more money and should be able to save job to job. Workers should be com- taking a critical step in allowing an more. fortable to change jobs without the important government saving stimulus As we have witnessed in the last few worry of managing separate pension to catch up with the reality of today’s months, the stock market is bound to plans. employment market. Importantly, this constrict, and those who solely rely This bill will also modernize and legislation also encourages saving by upon their stocks as a pension plan will streamline pension laws to encourage including substantial increases in the feel the strain the most. That is why it small business to offer pension plans. IRA limit to $5,000, and 401(k), 403(b) is important to increase the IRA con- As we all know, employers are not re- and 457 plan limits to $15,000. tribution limit to $5,000 and increase quired to offer these plans and many do While this legislation benefits young- the amount contributed to 401(k) plans. not do so due to fiscal constraints. er workers over the long haul, it also H.R. 10 does this and more. It also However, H.R. 10 repeals and modifies a provides important catch-up contribu- takes into consideration those on the wide range of unnecessary and out- tions for workers who are 50 or older, verge of retirement with catch-up con- dated rules and regulations. Specifi- so that people who have been out of the tributions, which will help those people cally, H.R. 10 provides incentives to workforce for a number of years can we refer to as the baby boomers, myself small businesses to offer pension plans build their own nest eggs. Often these included. to their workers by lowering Pension older workers are women who, without We need to provide hard working Benefit Guaranty Corporation pre- this provision, would be punished for Americans the option of saving more miums for new small business defined having taken off time to raise their and relying less on Social Security benefit plans and eliminates the busi- families. I strongly support this bill. when they retire. The Portman-Cardin ness user fee for new retirement plans Mr. ANDREWS. Mr. Speaker, I yield bill allows this to occur. established by small businesses. myself the balance of my time and will The SPEAKER pro tempore (Mr. I would like to thank the sponsors of simply close out for our side reit- THORNBERRY). The Chair would an- this legislation, the gentleman from erating again my appreciation of the nounce the gentleman from Texas (Mr. Ohio (Mr. PORTMAN) and the gentleman gentleman from Ohio (Mr. PORTMAN)

VerDate 02-MAY-2001 02:03 May 03, 2001 Jkt 089060 PO 00000 Frm 00049 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.041 pfrm02 PsN: H02PT1 H1784 CONGRESSIONAL RECORD — HOUSE May 2, 2001 and the gentleman from Maryland (Mr. The Chair recognizes the gentleman structure, adjusted to make it timely CARDIN) for their outstanding work on from California (Mr. THOMAS). today. So I just want to underscore to this legislation. I think we can see Mr. THOMAS. Mr. Speaker, I yield my colleagues that there are a number from the breadth of speakers that there myself such time as I may consume. of issues that we could debate; but they is strong support across the spectrum I also would thank the Committee on ought to be debated at a different time, for this bill. Education and the Workforce for the under a different forum, if in fact we One of the blessings of this life is cooperative effort on the product that want to do something fundamentally that we can reasonably anticipate our we have in front of us, H.R. 10, but also different than what we are doing in children, perhaps some of us, will live just as importantly on the inter-com- this bill. to be 100 years old. One of the problems mittee relationship where committees This bill is excellent as it has been is that we have an income retirement share jurisdiction on a particular piece crafted. The evidence of that is the list, system set up for 75 years’ worth of of legislation. The quality of the prod- which I am sure is growing, of the more life. I believe that the very wise steps uct will be seen, as was said earlier, on than 100 supporters of H.R. 10, ranging that we are about to take today, and I the basis of the number of speakers on alphabetically from the Airline Pilots hope through conference and final pas- both sides of the aisle supporting the Association, the American Bankers As- sage, will help alleviate that problem. document that is in front of us; but it sociation, all the way down to the We are very pleased to support this leg- would not have been possible without United Brotherhood of Carpenters, the islation. the willingness of the committees to U.S. Chamber of Commerce, and vir- Mr. Speaker, I yield back the balance work together in a bipartisan way. tually every labor and business and of my time. In turning to the Committee on Ways corporate group in between. Mr. BOEHNER. Mr. Speaker, I yield and Means, I clearly want to give enor- This bill is frankly overdue. It is myself the balance of my time. mous credit to the co-sponsors of this time to move it. It is modest and ap- Mr. Speaker, let me salute the au- bill, the gentleman from Ohio (Mr. propriate. And from the chairman of thors of this bill, the gentleman from PORTMAN) and the gentleman from the committee’s point of view, it was a Maryland (Mr. CARDIN) and the gen- Maryland (Mr. CARDIN). It is extraor- real pleasure to work on a measure tleman from Ohio (Mr. PORTMAN), who dinarily easy to take an issue like this that passes the committee 35 to six and really have spent a great deal of time and produce a really good looking $200 will be discussed on the floor in the over the last 3 years building support billion bill. It is also relatively easy to way we would prefer, all of us would and fine-tuning this legislation. They produce an okay $100 billion bill. It prefer, more bills being discussed, and really have done very good work. took extraordinary effort to focus on that is, we would like to do more. But I also want to thank my colleagues what needed to be changed, overdue ad- this is an excellent work product, the on my committee, both the gentleman justments on amounts contributed, and authors are to be complimented, and from Texas (Mr. SAM JOHNSON), the produce this evenhanded excellent we ought to support it. chairman of the Subcommittee on Em- piece of work for $51.5 billion over 10 Mr. Speaker, I reserve the balance of ployer-Employee Relations; and most years. my time. notably the gentleman from California Why do I say that? Because it is ex- And, Mr. Speaker, I yield the balance (Mr. GEORGE MILLER) and the gen- ceedingly easy to double the cost of of my time to the gentleman from Ohio tleman from New Jersey (Mr. AN- this bill because we want to do as much (Mr. PORTMAN) and ask unanimous con- DREWS), who we have worked closely as we can for as many people as we can. sent that he be allowed to control the together with over the last 3 years as Of course, that is a positive motivating balance of the time. well. effort; but what I would hope most 1230 As the gentleman from New Jersey Members do is focus on the particulars b (Mr. ANDREWS) just pointed out, this is in this bill. Frankly, some of the ad- The SPEAKER pro tempore (Mr. a very good bill that will help Amer- justments are overdue. If it were based THORNBERRY). Is there objection to the ican workers. We do believe it will help upon an indexing on inflation from the request of the gentleman from Cali- employers who do not currently offer time that these numbers were first cre- fornia? pensions; give them the ability and the ated, at the time we were talking There was no objection. flexibility and encouragement to offer about creating super IRAs as the Bent- Mr. CARDIN. Mr. Speaker, I yield pensions to their employees. Our goal sen-Roth–Pickle-Thomas bill did, $2,000 myself such time as I may consume. ought to be to see that all American seemed like a major achievement. Mr. Speaker, I thank the gentleman workers have access to high-quality Today, in this bill, moving it to $5,000 from California (Mr. THOMAS) for his pension and profit sharing plans. This is a significant advancement, but all of kind comments; but I really want to bill is a major step in that direction. us would like to say we would like to thank the gentleman for the manner in Let me also add to something the do more. which he has led our committee in con- gentleman from New Jersey pointed I find it interesting that those who sideration of the pension legislation. out, and that is that the baby boomers might oppose this bill want to increase The gentleman from California has al- are beginning to retire. Most do not the amount that we are going to spend lowed us to work in a constructive en- have the kind of resources they need to and provide support for people slightly vironment so we could reach the point get them through their retirement different than the fundamental under- of having a bill that enjoys broad sup- years. I think that the bill we are lying intention of this bill. The funda- port on both sides of the aisle. That is about to pass will, in fact, help baby mental underlying intention of this bill indicative of the gentleman’s leader- boomers and younger workers begin to is to assist people, without punishing ship. set aside more of their income so that them, in putting their own money Mr. Speaker, I thank the gentleman when they get into their golden years, away to assist in retirement. In that from Ohio (Mr. PORTMAN) for his ex- they will actually be able to have a aspect, the Tax Code should reward traordinary work. The gentleman from happy and successful and productive people who do this; should create in- Ohio has worked in a bipartisan way so retirement with the kind of financial centives and support for people who do we could reach this point of having a security that they need in order to that. major, comprehensive pension reform enjoy their retirement years. The question of assisting people who bill that enjoys strong bipartisan sup- Mr. Speaker, I yield back the balance do not have the wherewithal to do it port, and support not only in this body, of my time. themselves is a question worthy of con- but in the other body. We are going to The SPEAKER pro tempore. All time sideration, but not at the time that we pass this legislation with a strong vote, for the Committee on Education and are considering this particular bill; and we hope that it will pass the other the Workforce has expired. shaped the way it has been shaped, to body and be enacted into law this year. The gentleman from California (Mr. make it easier for employers to offer, Mr. Speaker, this bill provides indi- THOMAS) and the gentleman from New to allow those who want these various vidual tax relief. It will provide bil- York (Mr. RANGEL) are now each recog- programs to put more of their own lions of dollars of tax relief to indi- nized for 30 minutes. money away under the fundamental vidual taxpayers by allowing them to

VerDate 02-MAY-2001 01:50 May 03, 2001 Jkt 089060 PO 00000 Frm 00050 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.044 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1785 defer their tax liability by putting already spoken, for their hard work on legislation to let people as they move more of their own resources and their this issue. The gentleman from Mary- from job to job keep their pension in company’s resources into retirement land (Mr. CARDIN) has been my partner one account. That is very important as plans. That is very important for our on this effort for the last 3 or 4 or 5 more and more people are moving from country. It is very important for indi- years. We have been to the floor of the job to job more and more quickly. viduals. It is the building block, and we House on this very bill, and he has been Very importantly, we want to make will hear a lot today about other prob- instrumental in making this a better sure that companies that want to offer lems that we have in our society. We bill. pensions can do so without a lot of red need to reform the Social Security sys- I thank the gentleman from Cali- tape. This is very important. I would tem. We agree on that. We need to get fornia (Mr. THOMAS), the chairman of underscore what someone already lower-wage workers to put more money the Committee on Ways and Means, talked about, it is really a small busi- away; and the government should who is responsible for getting this bill ness problem. An American who works maybe offer some incentives to do that. to the floor. He has been a leader on for a large business probably has a pen- Congress needs to fix Social Security this issue over the year. We all know sion, and it is probably a pretty decent and offer retirement accounts for indi- about the Roth IRA. Here on the House one. An American who works for a viduals. side, we call it the Thomas IRA be- small business probably does not. Fixing our current retirement sys- cause he was the House author of that There is a 1 in 4 chance. Twenty-five or tem is the first building block in ac- new IRA provision, and for years the fewer employees, there is only a 19 per- complishing those results. I think that gentleman from California has taken a cent chance that there is a pension at my colleagues agree that the legisla- leadership role on expanding retire- all, even a simple plan. tion before us should pass, and should ment security through IRA contribu- This Congress passed the Portman- pass quickly. I am not going to go into tions. Cardin legislation a few years ago, a great deal of detail. We have heard why I thank the gentleman from Ohio SEP plan, for the most basic 401(k). this bill is important. It allows small (Mr. BOEHNER), the chairman of the This is where the problem is. This is businesses the opportunity to provide Committee on Education and the where most of the low- and moderate- pension plans for their employees. That Workforce who spoke earlier. His com- income workers work. This is the focus will help workers today who do not mittee looked at the ERISA provisions of this legislation, to give those em- have an employer-sponsored plan. and improved them through the proc- ployers more encouragement and more Lower-wage workers need their com- ess. They are an important component incentive to offer plans to cover more pany to offer incentives so they can of expanding retirement savings. The people so everybody has more retire- participate in a pension plan. It raises gentleman went into that in some de- ment security. The gentleman from California (Mr. all of the limits on defined contribu- tail. THOMAS) and others have talked about tion and defined benefit plans. The gentleman from Texas (Mr. SAM what Congress has done over the years. Mr. Speaker, in raising the limits, we JOHNSON), the subcommittee chairman Over the last 20 or 30 years, Congress are trying to make up for what infla- who is also on the Committee on Ways has done the wrong things in terms of tion has done in reducing the limits by and Means, and has taken a leadership pension coverage. That is why pension allowing people to make up and be as role this year; and I thank the gen- coverage is totally flat. That is why 70 secure as they used to be in putting tleman from New Jersey (Mr. AN- money away for their own retirements. million Americas, half the workforce, DREWS), the ranking member, who has The portability issue, many people have nothing at all today. No pension taken a courageous stand on some change jobs regularly. This bill allows at all. Social Security is not enough. It tough issues on the ERISA side, and for the combination of those different is hard to live on $900 a month. People taken the correct stand because he has plans to manage your own retirement. need to have increased private savings; focused on the goal here which is ex- We also shorten the vesting rules and that is what we need to do as a panding the ability for everybody to which is a very important point. Congress, start making it easier, not The bottom line is in the last decade save more for their retirement. more difficult. when we started talking about chang- Mr. Speaker, this legislation does a Mr. Speaker, we have lowered limits. ing our pension laws, we knew that the number of things, but it can be prob- We have added to the rules and regula- savings ratios in the United States was ably summarized three ways. One, it tions. From 1982 to 1994, the number of too low. Yes, we have had some very lets everybody save more for retire- traditional defined benefit plans, the impressive economic growth over the ment. We move IRA contributions from good plans, decreased from 114,000 to last decade. But in one staring exam- $2,000 to $5,000 a year. It is just adjust- 45,000. The gentleman from North Da- ple, we are not doing well, and that is ing it for inflation. kota (Mr. POMEROY) talked earlier the amount of money that we put away We also allow people in 401(k)s to go today about how 40 percent fewer peo- as a Nation in savings. Eight years ago, from $10,500 a year to $15,000 a year, ple are in these defined benefit plans that was about 9 percent of our earn- really just restoring these limits to today. The data is unbelievable. ings. Today it is negative. We have ac- where they were in the 1980s. On We need to do more to ensure that tually spent more as a Nation than we 401(k)s, after adjusting for inflation, a low- and moderate-income workers earn. We need to do something about taxpayer could save more in the 1980s have access to pension plans, and that increasing savings. This legislation than they can under our bill. We were is why this legislation is so important. will move us in that direction. I am constrained by some fiscal concerns Mr. Speaker, it is a comprehensive proud to be associated with this legis- that the gentleman from California approach. It is the most sweeping lation. I know that it will enjoy broad (Mr. THOMAS) talked about. This is a change in our pension laws since the support in this body. dramatic increase in what our con- 1970s. It is something that is going to Mr. Speaker, I reserve the balance of stituents, millions of Americans, will help everybody, and it is something my time. be able to save for their own retire- that every American worker has the Mr. PORTMAN. Mr. Speaker, I yield ment. ability to benefit from. Seventy-seven myself such time as I may consume. Second, we help to address the con- percent of the people who are involved Mr. Speaker, this afternoon we are cerns that people have about an in- in pensions today make less than here on the floor of the House to talk creasingly mobile workforce. We in- $50,000 a year. You are going to hear about a very serious problem which crease the vesting time from 5 years some discussion today how we should faces our country, which is a retire- down to 3 years so people who are mov- target this more towards low- and mod- ment savings problem. It affects mil- ing from job to job can get into a pen- erate-income folks. These are the peo- lions of Americans; but importantly, sion sooner. ple that are going to get help under we are also talking about a bipartisan We also allow portability between de- this legislation. and very constructive solution which fined contribution plans. The gen- Finally, I thank all Members of Con- addresses the problem directly. tleman from North Dakota (Mr. POM- gress who have supported this effort I want to thank Members on both EROY) will talk about this, but his leg- over the year. We have over 300 cospon- sides of the aisle, many of whom have islation is incorporated as part of this sors of the legislation as of today. We

VerDate 02-MAY-2001 01:58 May 03, 2001 Jkt 089060 PO 00000 Frm 00051 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.046 pfrm02 PsN: H02PT1 H1786 CONGRESSIONAL RECORD — HOUSE May 2, 2001 have, on the outside, over 100 groups ing their most lucrative earning years nesota (Mr. RAMSTAD), my colleague on who have supported this, from the Na- when they could be building their re- the Committee on Ways and Means, tional Federation of Independent Busi- tirement portfolio. who has been the leader on including nesses and other groups supporting This bill addresses another problem very important provisions in this bill small businesses, and the Chamber of associated with women moving in and that help ESOP companies. Commerce, to the Building and Trades out of the workforce: vesting. Women Mr. RAMSTAD. Mr. Speaker, I thank Construction Department of the AFL- over 25 tend to stay in jobs an average my colleague for yielding me this time. CIO. It is a broad cross-section. It is a of 4.7 years, often not long enough to I rise in strong support of this land- bipartisan product. It is the product of obtain the right to the employee’s mark bipartisan package of pension re- several years of working carefully to- share of the contribution. H.R. 10 forms that will vastly improve the re- gether to ensure that we have the best makes it easier for workers to keep the tirement security of American work- possible way in order to help people employee’s share of pension contribu- ers. I want to thank the gentleman save for their own retirement. tions. The result, working women will from Ohio (Mr. PORTMAN) and the gen- Mr. Speaker, the bill is good for our have a larger retirement nest egg. tleman from Maryland (Mr. CARDIN), future, our families. It is good for When they are working, women’s sav- two colleagues and friends on the Com- small businesses. It is great for work- ings priorities are often focused on mittee on Ways and Means, because ers, and I hope that we can pass it with their children’s education and not re- without their tireless efforts and their a resounding vote in the House of Rep- tirement. Once the children are grown, leadership on this important pension resentatives to give it the momentum women need this extra assistance to reform package, we would not be here that it needs to get through the Senate take care of their own needs. today. and end up on the President’s desk to In addition, women continue to earn The need, Mr. Speaker, is clear. be signed into law, and help Americans less, an average of 26 percent less, than Americans are living longer but often have more peace of mind and security men. Based on this alone, it stands to they lack the savings needed for a se- in their retirement years. reason that women would have much cure retirement. The typical 45-year- Mr. Speaker, I reserve the balance of less to invest for their retirement. old has only 40 percent of the savings my time. needed to avoid a decline in standard of b 1245 Mr. CARDIN. Mr. Speaker, I yield 5 living during retirement. Half of all minutes to the gentlewoman from When they do return to the work- private sector workers, in fact, still Florida (Mrs. THURMAN). force, they deserve a chance to save have no pension coverage at all. Worse Mrs. THURMAN. Mr. Speaker, let me more for retirement. yet, only 20 percent of job-creating give accolades to the gentleman from We all know that Social Security is small businesses even offer a pension Maryland (Mr. CARDIN) and the gen- particularly important to women. For plan because of the expense and the dif- tleman from Ohio (Mr. PORTMAN), be- most elderly unmarried women, 51 per- ficulty of administering such plans. cause I do not believe that this bill cent of their income is from Social Se- This legislation, H.R. 10, will help re- would have come to the floor with such curity. For 25 percent of unmarried verse this dire situation. I want to bipartisanship if they had not allowed women, Social Security is their only highlight, Mr. Speaker, one of the over Members to add in and talk about source of income. Anything that Con- 50 provisions in this package which will issues which were important. gress can do to encourage women to give American workers a meaningful I think this is a very good bill. I save more for retirement reduces their opportunity to save for their retire- think we could do better with the dependency on Social Security. ment. The provision I am referring to Democratic substitute, which we will Finally, women tend to move to would preserve employee stock owner- talk about later. But what I would like other jobs more frequently than men. ship plans, or as they are called, to discuss is how this bill will help The portability provisions of H.R. 10 ESOPs, for the workers of S corpora- working women. will let them concentrate their sepa- tions, many of which are small busi- Mr. Speaker, we talk about families, rate retirement accounts for a better nesses. ESOPs give workers an oppor- but women in this bill are going to be rate of return. tunity to own a piece of their business, helped because the bill contains several As I said, we are going to see a Demo- a piece of the rock, which boosts pro- provisions to help women, especially cratic substitute. I just want to men- ductivity, morale and retirement sav- those who return to the workforce tion a few things in there that I think ings. This proposal is based on a bill after their children are grown. Let me are critically important to women: that I introduced last year which was give you some ideas. The retirement security account tax cosponsored by 30 members of the Com- The catch-up provision would allow credit would be up to a 50 percent re- mittee on Ways and Means. It would women who have taken time out to fundable credit for low- and middle-in- remove a cloud that was left by the raise a family to make additional con- come workers who contribute up to previous administration by preserving tributions of up to $5,000 per year. In $2,000 annually to an employer-spon- this highly effective retirement sav- addition, the provision that accelerates sored plan or a deductible individual ings program for broad-based S cor- vesting of employer-matching con- retirement account, better known as poration ESOPs. tributions will disproportionately help an IRA. Mr. Speaker, H.R. 10 is a win-win for women. The tax credit for small employers’ America. That is why it is supported In IRA language, H.R. 10 accelerates pension plan start-up costs. Small em- by such a diverse group of small and the deductible contribution to $5,000 in ployers, less than 100 employees, would large businesses, labor organizations 2002, and increases the contribution by be eligible for a tax credit in an and members of both parties. Most im- $5,000 beginning in 2005 for people over amount equal to 50 percent for the portantly, it is strongly supported by the age of 50. This bill includes com- costs that would be incurred as a result the working people of America. I urge parable language for 401(k) and other of establishing these new qualified pen- my colleagues to pass this important deferred compensation plans. sion plans. legislation for a secure future for Mr. Speaker, in 1997, a GAO study Last would be the small employers America’s workers. found that women have significantly would be eligible for a tax credit equal Mr. CARDIN. Mr. Speaker, I am different work patterns than men. to 50 percent of certain employer con- pleased to yield 4 minutes to the gen- Women are much more likely to leave tributions made to a pension plan on tleman from North Dakota (Mr. POM- the workforce and three times as likely behalf of its non-highly compensated EROY), my colleague on the Committee to work part-time to accommodate employees. on Ways and Means, part of whose bill care-giving responsibilities. Women Mr. Speaker, all these provisions in is included in ours dealing with the spend roughly 111⁄2 years out of the H.R. 10 and if we include the Demo- portability and vesting. workforce, caring for children and cratic substitute I think are a historic Mr. POMEROY. Mr. Speaker, I thank their families. They also are three opportunity for this House. the gentleman for yielding me this times as likely to accommodate care- Mr. PORTMAN. Mr. Speaker, I yield time and specifically commend the giving responsibilities, this often dur- 2 minutes to the gentleman from Min- gentleman from Maryland (Mr. CARDIN)

VerDate 02-MAY-2001 02:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00052 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.047 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1787 and the gentleman from Ohio (Mr. that down to 3 years, recognizing that indexing this for inflation, so that the PORTMAN). Their work has been exem- there is very substantial mobility in inflation monster cannot touch retire- plary bipartisanship in advancing a the workforce today and that after 3 ment savings, taking those realities substantive response on one of the years in the workforce for one em- into account. most troubling issues facing the coun- ployer, the employer’s share should ac- And as mentioned by my colleague try and, that is, the insufficiency of re- crue at that point to the employee. from North Dakota, the notion of port- tirement savings. As in every instance They will be vested. They will have ability. As we have many different when there is exemplary congressional that to take with them as they move freedoms, many different options, as performance, there are some out- on in the workforce. we see people make changes in jobs and standing staff performances backing it All in all, the bill will enhance re- in our mobile society and in our fast- up. I want to cite particularly David tirement savings efforts of American changing economy, to have the ability Koshgarian backing up the gentleman workers. It is extremely important. to move this money from job to job and from Maryland (Mr. CARDIN) and Bar- Again I commend the sponsors and ask keep it in the same account, port- bara Pate backing up the gentleman for broad bipartisan support on the ability is key, too. from Ohio (Mr. PORTMAN). Their work House floor today. Choose to save. Vote yes on this leg- has contributed immeasurably to this Mr. PORTMAN. Mr. Speaker, I yield islation. legislation. 3 minutes to the gentleman from Ari- Mr. CARDIN. Mr. Speaker, I am I think there are three things about zona (Mr. HAYWORTH), my friend and pleased to yield 6 minutes to the gen- this bill we should cite in particular. colleague on the Committee on Ways tleman from Massachusetts (Mr. First of all, it makes a direct effort at and Means, who has been one of the NEAL), my colleague on the Committee revitalizing defined benefit pensions in leaders on this, focusing on the impor- on Ways and Means who has been very the marketplace today. As the gen- tance of this bill to savings and to our active on the pension issues. tleman from Ohio (Mr. PORTMAN) economy. Mr. NEAL of Massachusetts. Mr. noted, the number of workers covered Mr. HAYWORTH. Mr. Speaker, I Speaker, I cannot agree more with the by the reliable, traditional pension pro- thank my colleague from Ohio and my authors of this legislation that our gram has fallen 40 percent during the colleague from Maryland for once common goal here today is to provide 20-year period between 1975 and 1995; again bringing to the floor of this meaningful retirement benefits for all and I believe it has fallen, no doubt, House landmark legislation. We have working men and women of this coun- significantly further even today. By been involved and engaged in cheerful try. Expanded pension coverage and an raising the limits, you bring the em- persistence, for this marks the sixth increased rate of participation in em- ployers, you bring the decisionmakers time we have brought this legislation ployment-based plans are more impor- within a company back into the quali- to the floor. And each time, Mr. Speak- tant now than ever, given our current fied plan and, I believe, enhance the er, we reaffirm the essential common savings rate and the imminent retire- prospects that the worker on the line, sense of the measure we prepare to pass ment of the baby boom generation. on the shop floor keeps the pension in yet again. Our current system is built upon the its traditional form. Mr. Speaker, I would ask you to assumption that the minimal level of Secondly, the bill advances port- think back to your own experience in income provided under Social Security ability by incorporating the retirement terms of saving or preparing for your would indeed in the end be supple- account portability legislation I have retirement. Not once on a financial mented by other sources of income introduced in the last three Con- form in planning for my family’s fu- such as an employer-based pension plan gresses. We have a hodgepodge in the ture, for my retirement, have I ever as well as personal savings. Thus, it is Tax Code of retirement savings provi- been asked to list a political registra- very important to make sure that the sions, different ones for for-profit, dif- tion. The banks, financial institutions, pension reform legislation today in- ferent ones for nonprofit, different ones employers, do not ask whether you are cludes incentives for all Americans to for State and local government. Republican, Democrat, Libertarian, increase retirement savings. You can have, for example, a worker vegetarian, they simply ask you to There are many provisions in this through their career, let us say they think about your future. bill that are desirable by increasing come out of college and go into nursing Now, to return to the political par- benefits and contribution limits for for a nonprofit hospital. They would lance for a second, because I think those currently saving the maximum have a 403(b) defined contribution plan. since this is the people’s House and we in their current pension plans or for Let us say after that they go to State stand at the bar of public opinion every those currently saving in individual re- government and work in the health de- 2 years, we know in political parlance tirement accounts. I would remind partment. They would have a 457 plan. that we regard a landslide election as both sides here today that, with the Ultimately they end up in a private procuring 60 percent of the popular gentleman from California (Mr. THOM- for-profit clinic where they would have vote. Mr. Speaker, I regret to inform AS), we were responsible for the Roth a 401(k) plan. Each of these is incom- this House that the American people IRA here in the House of Representa- patible with the other under existing are currently on the wrong side of a tives. But my primary concern with law and you could not combine your landslide. Only 40 percent of Americans this legislation today is that it does accounts. The result is people have as baby boomers are taking advantage not provide the same opportunity for their accounts distributed. We know of retirement savings to avoid a de- all Americans to save who are not cur- that in over half the cases where they cline in their standard of living once rently in a retirement system. It could take the lump sum distribution, they they decide to retire. In other words, 60 be fixed through the amendment proc- do not reinvest them in retirement sav- percent of the people are not taking ad- ess. ings. vantage of these provisions. With this H.R. 10 contains many provisions de- This is a case where the Tax Code, legislation today, we are asking Ameri- signed to enhance and expand the port- rather than trying to incent Americans cans to choose to save. That is what we ability of pension benefits. The current to save, actually discourages savings. do with this legislation. level of mobility among workers re- It is 100 percent the wrong way to go. Mr. Speaker, what we are doing is quires a modified approach to our re- That is why the portability feature is saying to the American people, here is tirement system. The lack of port- so important. Finally, vesting. We an enhanced choice for you. We ask ability can result in workers being know that on average workers are you to choose to save. Portability of shortchanged in pension benefits mere- staying with an employer in the work- the accounts; raising the limits, espe- ly because they change jobs. This bill force about 41⁄2 years. It takes 5 years cially for those who will encounter re- responds to the need by giving workers before the employer’s share is vested in tirement decisions first, for those age greater flexibility to transfer their a retirement savings account where the 50 and above, no phase-in, immediately pension benefits between employer employer has that provision. Under raising that limit to $5,000; phasing plans or to an IRA. These provisions Federal law, they are allowed to have that in for traditional and Roth IRAs, have been in many bills over the last vesting be a 5-year period. This brings increasing that through the years; and two sessions of the Congress. They

VerDate 02-MAY-2001 02:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00053 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.050 pfrm02 PsN: H02PT1 H1788 CONGRESSIONAL RECORD — HOUSE May 2, 2001 were strongly backed by myself and Why we cannot do it today, I do not un- than in most of the industrialized members of the Clinton administra- derstand it. This bill could pass this world. Today, as a result, we import tion. House today 435 to 0 if those incentives capital into our country to finance our There are also provisions in this leg- were simply offered, which I have been improving standard of living. In my islation that would enhance benefits assured they are going to be offered view, addressing this problem is as im- for women and we acknowledge that. when the Senate brings back its portant to our national economic fu- However, while this bill contains many version. I hope at that time we will ture as addressing our reliance on for- provisions such as those I have men- have an opportunity for this bill to eign oil. We need to end our depend- tioned that are designed to achieve pass almost or nearly unanimously. ence on imported capital, and this worthy goals, on the whole, the bill is I would be remiss if I did not mention landmark legislation will address that not balanced. Under the bill, high-in- the additional controversies with pro- problem by allowing families to in- come workers would receive very gen- visions underlying this bill. Last year, crease their retirement savings. erous benefits with no corresponding the Department of Treasury and out- meaningful direct incentives to expand side groups argued strongly that some H.R. 10 will increase the national and increase retirement savings for of the provisions of this bill could actu- savings rate, increase our national low- and moderate-income workers. ally lead to a shrinking of pension cov- prosperity, and provide for a stable re- tirement for millions of working fami- b 1300 erage for low- and moderate-income workers. They cited most often lies through better access to pension One analysis of this bill showed that plans and expanded IRAs. The Com- workers earning less than $41,000, the changes in top heavy rules and non- discrimination rules which are de- prehensive Retirement Security and bottom 60 percent of the American Pension Reform Act provides individ- workforce, would receive, listen to signed to protect non-key employees uals with a variety of retirement sav- this, 4.3 percent of the benefits; and the by making sure that they get a min- ings incentives, such as lifting limits top 5 percent of American workers with imum amount of the benefit from an to IRA and 401(k) plans. These limits incomes of more than $134,000 would re- employer’s pension plan. Now I know the authors of this bill are currently stuck at 1980 levels. Baby ceive, and listen to this number, 42.4 believe the opposite; but a blend of my percent of the benefits. boomers who are discovering that their I do not oppose increasing retirement tax credit proposal, along with the ef- retirement is severely underfunded be- savings for workers at the top of the forts that they have made here today, cause they stopped working to raise a income scale, but I am concerned that could secure truly one of the great family can catch up under this plan the workers who are most in need of feats of this Congress; and I expect through higher contribution limits. our assistance today in saving for re- when it comes back from the Senate In addition, I am particularly pleased tirement are being excluded from our that provision will be included and we to see that this bill addresses the unin- efforts here. will have an opportunity, as I indicated tended consequences of section 415. earlier, to nearly unanimously pass In its current form, the legislation Currently, section 415 seriously ham- this very important legislation with would fail to provide a secure and ade- pers the ability of America’s workers, some technical corrections. quate retirement for all Americans. not the wealthy but rank and file The retirement savings account pro- Mr. PORTMAN. Mr. Speaker, I yield myself 30 seconds just for a quick re- workers, to collect their full pension posal that will be offered later today as amounts which they have earned. Re- an addition to this bill would provide sponse to my friend and colleague, the gentleman from Massachusetts (Mr. ducing the pensions of workers who re- the balance that is necessary for a suc- tire before normal Social Security re- cessful accomplishment of our shared NEAL). He, in a good faith effort, is try- tirement age has caused enormous fi- goal, which is a secure retirement for ing to expand the opportunities for nancial hardship for many workers in all workers. low- and middle-income workers, and I The RSA proposal builds on our cur- commend him for that. I also appre- places like western Pennsylvania. rent system by providing an incentive ciate the kind words he says about the Thousands of retiring workers have for low- and middle-income workers to underlying bill, but I cannot let one carefully saved and planned for their participate in an employment-based re- thing stand and I am disappointed that retirement, and they are relying on tirement system. Under the proposal, he has raised it and I just want to get their private pension funds. This legis- the worker would receive an annual this out because we are going to hear a lation will allow them to have the full credit of up to $1,000 for contributions lot more about it in the Democrat sub- benefit of the pension that they them- made to an individual retirement ac- stitute, it sounds like. He uses an out- selves worked so hard to build. count or an employer-based pension side group that opposes not only this I urge my colleagues to support this plan. bill but all tax relief that we have tried landmark legislation. In addition, this bill must do more to to do, that people that are making provide direct incentives for small $41,000 or less are only going to get 4.3 Mr. CARDIN. Mr. Speaker, I yield businesses to establish and administer percent of the benefits. There is no myself 30 seconds to clarify a point on pension plans. way, no way, that he could know that; the Democratic substitute. I am In a recent Small Employer Retire- and I am just disappointed that we are pleased that it adds to the underlying ment survey conducted by the Em- getting into that because this is going bill. It accepts the fact that the under- ployee Benefit Research Institute, 65 to help all Americans, including those lying bill is very important and tries to percent of small employers stated that making less than $41,000. improve upon it. I just want to make it tax credits for starting a pension plan Mr. Speaker, I yield 3 minutes to my clear that nothing in the Democratic would be a major contributing factor colleague, the gentleman from Penn- substitute would distract or take away for them to establish a pension plan for sylvania (Mr. ENGLISH); and I appre- from the underlying Portman-Cardin their employees. This factor was sec- ciate his help on this legislation, par- legislation. ond only to an increase in business ticularly on some provisions that help Mr. Speaker, I yield 3 minutes to the profits. with regard to labor union members. gentleman from Wisconsin (Mr. With this compelling evidence, I Mr. ENGLISH. Mr. Speaker, I thank KLECZKA), a distinguished member of would like to encourage my colleagues the gentleman from Ohio (Mr. the Committee on Ways and Means and here today to seriously consider an- PORTMAN) for yielding me this time. one of those individuals who has also Mr. Speaker, in the last 40 years, other amendment that will be offered been involved in helping us formulate later on as well that would include two Americans have gone from saving 6.2 the underlying legislation. tax credits as an incentive for small percent of their disposable personal in- employers to offer pension plans to come to saving less than .1 percent. In Mr. KLECZKA. Mr. Speaker, over the their employees and to make contribu- fact, Americans lag behind Canada, next 40 years, the percentage of the tions to those plans on behalf of their Germany, and Japan by as much as 4 U.S. population over 65 will almost employees. percent when it comes to our national double. Unfortunately, at a time when The gentleman from Ohio (Mr. savings rate. more and more people should be put- PORTMAN) has been more than kind and The rate of decline in national sav- ting money away for their retirement, more than receptive to that notion. ings is greater in the United States personal savings are at historically

VerDate 02-MAY-2001 02:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00054 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.052 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1789 low levels. Twenty years ago, Ameri- consin (Mr. RYAN), my friend on the prehensive Retirement Security and cans saved at a rate of about 10 per- Committee on Ways and Means, who Pension Reform Act, introduced by the cent, but by last year that rate had has been a leader on the 415 provisions gentleman from Ohio (Mr. PORTMAN) plummeted to one-tenth of 1 percent. in this bill and also in focusing on the and the gentleman from Maryland (Mr. Americans must become more savings incentives in the legislation. CARDIN). I want to thank both gentle- proactive in saving and planning for Mr. RYAN of Wisconsin. Mr. Speaker, men for all their hard work in getting their retirement, and the bill before us I thank the gentleman from Ohio (Mr. this bill to the floor today. today provides the incentives to do so. PORTMAN) for yielding me this time. This legislation provides portability Retirement security has often been Mr. Speaker, I would like to right between the employer-sponsored plans, described as being like a three-legged now just thank the gentleman from a key component of any provision secu- stool because people depend on three Maryland (Mr. CARDIN) and the gen- rity reform, as we are in an era where means of savings for their retirement: tleman from Ohio (Mr. PORTMAN) for Americans are no longer expected to one is Social Security; one is personal putting this excellent piece of legisla- work for one company until retirement savings; and another one, a very impor- tion together. Specifically, I want to but, rather, many employers and many tant one, is employer-provided pen- thank them for including that section corporations over a period of a life- sions. 415 provision. This affects thousands of time. H.R. 10 makes great strides in building trades workers in southern b 1315 strengthening the footing for the last Wisconsin who because of this law are two of those legs. This bill also provides incentives to going to have a better pension system retirement savings by increasing the One of the most important adjust- that they deserve, that they paid into. ments this bill makes will be to in- IRA contribution limit from the So I want to thank them for including present $2,000 to $5,000, and expanding crease the current limit on annual in- this very valuable provision. dividual retirement account contribu- eligibility for deductible IRAs. There is another important part of Most importantly in this ever-chang- tions from $2,000 to $5,000 per year. this, and that is times have changed. ing workforce, this bill contains vital IRAs are one of the principal instru- When our pension laws were written a catch-up provisions to encourage both ments used for savings, and this in- generation ago, it was a different kind older workers and women workers to crease will make them a much more of an economy. People had the same increase their retirement savings to valuable tool in retirement planning. job for 30 or 40 years of their working It has been almost 20 years since the make up for missed contribution oppor- lives. They did not move from jobs, but tunities. This is key for women, as retirement cap was raised, so an ad- that is not the case today. People many of them have previously left the justment today is long overdue. To change jobs all of the time, but the workforce for the time being, quite make sure that the benefits of IRAs problem is our economy and our pen- often to raise a family, and now will no continue to keep pace with the times, sion laws have not caught up with longer be blocked from providing for this bill will adjust the cap annually to those times. herself or her family’s retirement secu- reflect the effects of inflation. This important piece of legislation Regarding employer-provided pen- rity. This is solid legislation that will help sions, the bill allows for faster invest- catches up with the times and allows all Americans who plan ahead for their ing so that workers will become eligi- pensions to become portable so as peo- retirement, and I urge all of my col- ble for employer-matching contribu- ple change jobs they can bring their pensions with them without an adverse leagues to support this critical, critical tions to their pension plans in 3 years piece of legislation. rather than the current 5. It also consequence on the Tax Code; and most importantly, this thing does great Once again, I wanted to thank both breaks down the barriers between pri- gentlemen for getting this bill to the vate sector 401(k) plans, nonprofit em- things in two great ways for our soci- ety. It allows people to save for their floor today. ployer 403(b) plans, and local govern- Mr. PORTMAN. Mr. Speaker, I yield ment 457 plans, allowing workers to retirement, improve the savings rate, so they can maintain the kind of stand- 3 minutes to the gentlewoman from roll over funds in their pension plans UNN) a member of ard of living they enjoyed during their Washington (Ms. D when they move from one job to an- the Committee on Ways and Com- working years in their retirement other. mittee, who has taken a leadership role years. Again, by saving, by putting The bill includes catch-up provisions in assuring there is a catch-up con- more money aside, we are putting more that allow workers 50 years of age and tribution, both on the pension side and older to save even more for their re- money into the economy. We are im- on the IRA contributions. tirement needs by allowing them to in- proving the liquidity of capital for Ms. DUNN. Mr. Speaker, I rise today crease by $5,000 the limits on all em- small businesses, for job creation, for in support of H.R. 10. I think this is a ployee pension contributions. H.R. 10 entrepreneurial activity. fabulous bill, and I commend the gen- also streamlines rules and regulations So when we increase our savings tleman from Maryland (Mr. CARDIN) to make it easier for businesses, par- rate, not only do we help the actual and the gentleman from Ohio (Mr. ticularly small businesses, to offer pen- person who is saving in their retire- PORTMAN) for the great work they did sion plans by eliminating the user fees ment, we are helping the ability to cre- in bringing us together and consulting imposed by the IRS on businesses when ate jobs in this country. We are spark- with us and allowing us to make our they set up a pension plan. ing economic growth in job creation. opinions heard. It would also ensure that these high- So this bill not only fixes many prob- I think it does some very, very fine er contributions to the pension plans lems that are facing building trades- things, but I am particularly enthusi- may be deducted by employers. men, people who are just nearing re- astic about the very explicit focus that Mr. Speaker, this legislation will tirement, women in the labor force, it this bill has taken on the sometimes help provide the peace of mind that is updating our pension laws so they unique needs of the American working Americans deserve in their retirement respond to the types of jobs we have in woman. years. I urge my colleagues to support today’s economy. It is improving peo- This bill will enable women to devote this measure. ple’s standard of living, and it is help- more money to retirement savings, ac- In closing, let me applaud the efforts ing grow the economy and produce jobs cumulate assets more quickly, and it of the gentleman from Maryland (Mr. in the economy. will enable them to keep their benefits CARDIN) and also the gentleman from This bill is clearly a win/win for in one retirement plan when they Ohio (Mr. PORTMAN) and thank them America. That is why it received such change jobs. So it is going to let for including the changes in section bipartisan support. I urge my col- women have a much better sense of 415, which increases the pension bene- leagues to vote yes on this bill. peace of mind as they move toward re- fits for working men and women. Mr. CARDIN. Mr. Speaker, I yield 2 tirement, and I think it will make Again, I urge my colleagues to support minutes to the gentleman from New them feel also that they are more fully this bill. York (Mr. CROWLEY). participating in planning for that time, Mr. PORTMAN. Mr. Speaker, I yield Mr. CROWLEY. Mr. Speaker, I rise in to make it a very happy time and a se- 2 minutes to the gentleman from Wis- strong support of H.R. 10, the Com- cure time.

VerDate 02-MAY-2001 02:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00055 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.059 pfrm02 PsN: H02PT1 H1790 CONGRESSIONAL RECORD — HOUSE May 2, 2001 As we have heard from many pre- age worker today will hold nine jobs by out of the workforce to be home with vious speakers, women choose to leave the age of 32, and workers typically do the children; and then once the kids the workforce for many reasons, in- not stay in any job for more than 5 were in school, she went back into the cluding to raise a family or to take years until they are 40 years old. So workforce. During that period of time, care of their loved ones. I left the portability and being able to accumu- my sister Pat and my brother-in-law workforce for 8 years to raise my little late benefits and then move it from job Rich, they were not able to make con- children. I was a lucky person. When I to job, I think is essential. tributions to their IRAs because their came back in, I would have appreciated So, Mr. Speaker, I am proud to sup- income was essentially cut in half and the opportunity that this bill provides port this legislation. I think it is not their expenses were up because they to catch up with the losses sustained only good for my constituents, I think had children. during those years to my IRA. it is good for all of the people of this Under this legislation, once they Women are often unable to take full country; and I think the Congress will turn 50 they can make an extra con- advantage, for that reason, of em- take a very important step by estab- tribution, which they are, they can ployer-sponsored pension plans as well. lishing better pension funds for em- make an extra contribution to their H.R. 10 helps women make catch-up ployees, helping employers to do that, 401(k) of $5,000, and we immediately contributions to their pension plans. and by the IRA contribution being allow, once this legislation is signed Right now, for example, you are able raised. into law, someone age 50 or older to to contribute $2,000 each year to an So I ask my colleagues to join me contribute up to $5,000, recognizing the IRA. This bill says that if you are over and many others in the House on a bi- $5,000 increase is phased in over 3 50 years old, a man or a woman, but partisan basis to support this bill, pass years. So if you are age 50, you benefit specifically interesting more, I think, it, and help it become law. It is going immediately, allowing you the oppor- to women, you can begin to contribute to make our country better and strong- tunity to make up. up to $5,000. That is $3,000 additional er. The 415 provision, people like Larry dollars each year you can put away in Mr. PORTMAN. Mr. Speaker, I yield Correl, a laborer from La Salle County, your IRA. Also when it comes to the 2 minutes to the gentleman from Illi- will now see his full pension as a result employee pension plan, a 401(k) or a nois (Mr. WELLER), a member of the of this legislation. thrift savings plan, women like me can Committee on Ways and Means, who Mr. CARDIN. Mr. Speaker, I am now begin, as soon as this bill is signed, to has played a leadership role on the pleased to yield 11⁄2 minutes to the gen- contribute $5,000 more every single catch-up contributions and the 415 pro- tleman from Texas (Mr. BENTSEN), the year into their pension plan. visions. sponsor of many of the provisions in Current law also makes it very dif- (Mr. WELLER asked and was given the bill that deal with small business. ficult to consolidate retirement funds permission to revise and extend his re- Mr. BENTSEN. Mr. Speaker, I thank from different plans into one plan. Re- marks.) the gentleman for yielding me time. moving these restrictions is very im- Mr. WELLER. Mr. Speaker, this is a I rise in strong support of the bill, portant, considering the fluid employ- great day. We are doing something, and H.R. 10. I want to commend the gen- ment situation in America today. This the question to ask as we work on this tleman from Ohio and the gentleman is especially true for working women legislation is, is it not about time? from Maryland for bringing up this who change jobs more frequently than If you think about it, I think this is bill. men do. The portability provisions in the third or the fourth time we have This bill may not be the most politi- H.R. 10 will ensure that retirement passed this legislation out of the cally salable of all the tax bills we are benefits follow the employee as the em- House, and we finally have a President considering this year, but it is, in my ployee changes jobs. now that will sign it into law. It has opinion, probably the most economi- H.R. 10, Mr. Speaker, is a very well- been a bipartisan effort over the last cally correct bill, because it deals more crafted bill. It has strong bipartisan several years. My friends, the gen- with savings than consumption. I think support, and I am among the many who tleman from Ohio (Mr. PORTMAN) and this bill arguably will have the broad- urge my colleagues to support this bill. Mr. CARDIN. Mr. Speaker, I am the gentleman from Maryland (Mr. est long-term impact on our general pleased to yield 2 minutes to the gen- CARDIN) have done a great job working economy by increasing the savings with the committee and showing lead- rates, as well as putting more money tlewoman from California (Ms. ESHOO). Ms. ESHOO. Mr. Speaker, thanks and ership in assembling a great package into investment in the economy. congratulations, first, to the two major that will help millions of middle-class A lot has been said about the under- sponsors of this bill, the gentleman Americans and families save for their lying bill. I want to thank both the from Maryland (Mr. CARDIN) and the retirement. gentlemen for including provisions gentleman from Ohio (Mr. PORTMAN). I I think it is a tremendous achieve- from H.R. 738, which the gentleman think the quality of this bill and the ment, recognizing that when individual from Missouri (Mr. BLUNT) and I intro- amount of support that it enjoys today retirement accounts were created way duced, that would ease the restrictions really speaks to the eloquence of their back in the early 1980s, that the limit on small employers, employers of 100 or work. was set at $2,000. If you factor in infla- fewer employees, who, statistics show, We come to the floor every day to tion, it should be well over $5,000 are the least likely to have a pension cast votes. Sometimes we hold our today. We accomplish that goal by program or retirement program. This noses over what we have to vote for; phasing in an increase in the contribu- bill would go a long way toward mak- other times we say, if I had designed tion level for IRAs to $5,000. ing that better. this, it would be so much better. There are two other provisions that I I also want to commend my col- This is a very, very good bill, it is a want to highlight, and I really want to leagues for the amendment that will be sound bill, and I cannot help but think commend the leadership on our com- offered by the gentleman from Massa- of FDR’s quote that ‘‘True individual mittee for including these two provi- chusetts (Mr. NEAL) and others that freedom cannot exist without economic sions in this package. Those are provi- would provide a tax credit for small security and independence.’’ I think sions that deal with catch-up provi- employers who want to set up a pen- that those are the two things that this sions, which will help working moms sion program for their employees. I bill provides for millions of workers in and empty-nesters, as well as the 415 would encourage the House to adopt our country by making retirement se- provisions, which will help 10 million that, and to adopt the idea of providing curity more available to them. building tradesmen and women across credits to low-income individuals so Our savings rate in our country is at America. that they can save as well. an historically low level, and this is a Let me point out, the catch-up provi- We should not leave out any sector in critically important piece of legisla- sions, why are they important? I al- society that we want to save. As the tion to advance people’s being able to ways use my sister Pat as an example. gentleman from Illinois who just spoke save and encouraging them to. She is now teaching school, but when said, we do have situations where It also addresses the needs of an in- her children, when she and Rich de- working families do not have the dis- creasingly mobile workforce. The aver- cided to have kids, she took some time posable income to set aside in these

VerDate 02-MAY-2001 02:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00056 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.062 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1791 programs. If we pass the Neal amend- Mr. PORTMAN. Mr. Speaker, first I Maryland (Mr. CARDIN) is recognized ment, we can make this good bill an want to thank the gentlewoman from for 11⁄2 minutes. even better bill. Maryland (Mrs. MORELLA) for her help Mr. CARDIN. Mr. Speaker, as the Mr. CARDIN. Mr. Speaker, I am in putting this bill together and being general debate has indicated, there is pleased to yield 11⁄2 minutes to the gen- sure that Federal employees are cov- strong support for this legislation. I tleman from Texas (Mr. GREEN). ered. thank my colleagues who have come to Mr. GREEN of Texas. Mr. Speaker, I Yes, the answer is, the catch-up con- the floor to express their views on this am glad to follow my colleague from tributions in this bill lists types of legislation. It is clear that it will help Texas. With a Texan in the chair, I plans to which the provision applies. American workers, it will help people hope we are not overdoing it today on Included on that list is a trust de- save for their own retirement. this bill. scribed in the code under section 401(a). Let me just point out the Congres- Mr. Speaker, I rise in support of H.R. Under an existing section of that code, sional Research Service on November 6 10, the Comprehensive Retirement Se- section 7701(j), the Thrift Savings Plan pointed out that if employers offer curity and Pension Reform Act, and fund is created as a trust described in plans, workers at all income levels par- congratulate our sponsors for their per- that code section 401(a). Therefore, the ticipate and benefit. Eighty-five per- sistence in this effort, not only this catch-up contributions do apply to the cent of the workers earning less than year, but last year. Thrift Savings Plan in the same man- $40,000 will participate in the plans, Mr. Speaker, the private pension ner as it would apply to a 401(k) plan. and 68 percent of the workers earning plans are crucial to the retirement se- Mrs. MORELLA. Mr. Speaker, re- less than $20,000. curity of millions of Americans, and claiming my time, I thank the gen- This bill will make it easier for com- yet only half of our private sector em- tleman from Ohio for the assurance panies to provide pension plans, and ployees have any kind of pension, and that he has just given us. more workers at all levels will partici- only 20 percent of the small businesses I also want to congratulate him and pate. offer their employees retirement bene- his coauthor, the gentleman from I again want to thank the gentleman fits. Maryland (Mr. CARDIN), for putting this from Ohio (Mr. PORTMAN) for his work. Currently, Americans save only 4 great bill together. On my side of the aisle, I want to percent of our income, the smallest b 1330 thank the gentleman from New Jersey amount among industrial nations. If (Mr. ANDREWS), the gentleman from Mr. PORTMAN. Mr. Speaker, I yield this trend continues, young Americans North Dakota (Mr. POMEROY), and the 45 seconds to the gentlewoman from will be ill-prepared for their retirement gentleman from Texas (Mr. BENTSEN) New York (Mrs. KELLY). years. That is why it is important that Mrs. KELLY. Mr. Speaker, I rise for for their contributions to the legisla- our current system not only does not the purpose of entering into a colloquy tion that is before us. Lastly, let me thank my staff person, reward enough to encourage savings; it with my friend, the gentleman from David Koshgarian, for all the work is in dire need of reform. Ohio. The legislation we are considering I am grateful for the hard work my that he put in. today makes a number of important colleagues on the Committee on Ways Mr. Speaker, I yield back the balance changes and encourages individuals to and Means have done in putting to- of my time. Mr. PORTMAN. Mr. Speaker, I yield save for their retirement. We all know gether a strong package of tax relief to the balance of my time to the gen- that saving $2,000 a year for your IRA ensure the retirement security for tleman from Illinois (Mr. CRANE), sen- is not enough. It raises it to $5,000. It working Americans. Unfortunately, I ior Republican on the committee, who raises the 401(k) limit to $15,000. have been contacted by my constitu- was very helpful in putting on this leg- It also addresses the needs of older ents who are concerned about potential islation. workers, allowing people 50 years or interpretations of sections 405, 501, and The SPEAKER pro tempore. The gen- older to make that annual catch-up, 801 of H.R. 10. They fear they could $5,000, for years that they could not do tleman from Illinois (Mr. CRANE) is rec- negatively affect pension benefits. 3 it. It helps, particularly the provision I would like to get assurances that ognized for 1 ⁄4 minutes. for women who have left the workforce these sections I have mentioned are Mr. CRANE. Mr. Speaker, I thank my and then come back, to be able to not intended to harm participants. It is friend for yielding time to me, and I catch up on their retirement effort. my understanding that these sections rise in support of the Comprehensive There are a number of important com- are not intended to reduce pension ben- Retirement Security and Pension Re- ponents. efits, eliminate early retirement bene- form Act of 2001. In a voluntary, employer-sponsored Of course, the bill is not perfect and fits, retirement-type subsidies, or op- pension system, businesses must be there are things we could do, particu- tional forms of benefits, or discourage given incentives to start, maintain, larly for lower-wage workers, and I companies from increasing pension and expand their plans. H.R. 10 dra- know there is an amendment, the Ran- benefits. gel-Neal substitute, that will add that. Mr. PORTMAN. Mr. Speaker, will the matically increases contribution and I encourage folks not only to vote for gentlewoman yield? benefit levels available under these pri- that substitute, but ultimately, the Mrs. KELLY. I yield to the gen- vate plans. However, to take advantage bill, Mr. Speaker. tleman from Ohio. of these increased levels, key decision- Mr. PORTMAN. Mr. Speaker, I yield Mr. PORTMAN. I would say to my makers will have to establish a quali- 1 minute to the gentlewoman from friend, the gentlewoman from New fied retirement plan or make benefit Maryland (Mrs. MORELLA), for the pur- York, Mr. Speaker, she is absolutely improvements in their existing plan. pose of entering into a colloquy. right. Her understanding is correct. Likewise, we should not create dis- Mrs. MORELLA. Mr. Speaker, I In fact, just the opposite of the con- incentives that might bar an employer thank the gentleman for yielding. I am cerns she expressed are intended. We from establishing a pension plan. To- proud to be a cosponsor of this bill. have, in fact, made several adjustments ward this end, the Committee on Ways I just wanted to make sure that the in the language to ensure that these and Means in this legislation has called revenue estimate of this bill assumes provisions will achieve their intended for further study into the issue of that the Federal Employees Thrift Sav- effect, which is, of course, to expand whether our tax laws create disincen- ings Plan will permit catch-up con- pension coverage and protections for tives for pension plan funding by em- tributions. By that that I mean, any American workers. ployers who are experiencing economic revenue loss associated with such con- I thank the gentlewoman for her help hardships. tributions would be accounted for and on this bill and for helping us to refine Specifically, H.R. 10 would require is in the cost of this bill. it. the General Accounting Office to con- Mr. PORTMAN. Mr. Speaker, will the Mr. CARDIN. Mr. Speaker, I yield sider whether pension funding would be gentlewoman yield? myself the balance of our time. enhanced if section 172(f) of the Inter- Mrs. MORELLA. I yield to the gen- The SPEAKER pro tempore (Mr. nal Revenue Code were modified to list tleman from Ohio. THORNBERRY). The gentleman from payments to defined benefit plans as an

VerDate 02-MAY-2001 02:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00057 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.064 pfrm02 PsN: H02PT1 H1792 CONGRESSIONAL RECORD — HOUSE May 2, 2001 item for which 10-year specified liabil- to providing a safe and secure retirement for H.R. 10 increases the maximum amount ity loss carrybacks may be available. generations of Americans. We have already that can be contributed annually to both tradi- The committee’s call for this study stopped the ‘‘raid’’ on Social Security and tional Individual Retirement Accounts and arose out of a concern that restrictions locked away the $2.6 trillion Social Security Roth IRAs from the current $2,000 to $5,000 under section 172(f) imposed by Con- surplus from other government spending. over the next three years. In addition, the bill gress in 1998 may have inadvertently Now, we are helping American families and in- increases the limits on annual contributions to undercut the goal of secure pension dividuals, especially the seventy million Ameri- 401(k) and other defined contribution plans funding. cans who do not have a retirement savings from the current $10,000 to $15,000 over five Following the 1998 change, I am con- plan or pension, with incentives to take that years. Workers who are 50 or older the bill cerned that taxpayers experiencing fi- extra step in making critical, short-term invest- would allow additional annual contributions of nancial losses are not able to carry ments in retirement savings. People will now up to $5,000 to both IRAs and 401(k) plans. back pension contributions under sec- be able to fulfill and enjoy their long-term This provision is particularly important for tion 172(f). As a result, such taxpayers hopes and dreams during their retirement women who may have entered and left the are subject to a higher after-tax cost of years. workforce during their careers to respond to maintaining pension funding levels. Mr. BLUMENAUER. Mr. Speaker, I rise the needs of their families. This could jeopardize the employer’s today to support both H.R. 10 and the sub- ability to meet future funding obliga- stitute amendment. I am gratified to see this This bill does more than just raise contribu- tions, and act as a disincentive to mak- bipartisan legislation improving pension and tion limits. H.R. 10 accelerates vesting of em- ing contributions beyond the minimum retirement savings vehicles has been brought ployer matching contributions to defined con- requirements. before the House of Representatives for con- tribution plans from five years to three years, I look forward to the GAO report. Ul- sideration. and increases the portability of account bal- timately, I am hopeful we will consider I am especially pleased with one provision ances in pension plans when workers change enactment of legislation restoring pen- that I have been working to change since jobs. sion contributions as an item eligible coming to Congress: Section 415. The current statutes establish arbitrary and punitive levels While H.R. 10 is a good step forward, it is for a 10-year carryback under section important to note that only half of our work- 172(f). The GAO’s findings will help us on working people by not allowing those who are covered by pension programs to collect force is covered by any type of pension plan. to weigh the merits of such legislation. Of those workers who are covered by a pen- I congratulate my colleagues, the the full benefits they have accrued. This is sion plan, only about one-quarter of low- and gentleman from Ohio (Mr. PORTMAN) wrong and H.R. 10 will fix this inequity and moderate-income workers actually participate and the gentleman from Maryland (Mr. allow all hard working citizens to collect their in them. CARDIN), on this outstanding bill and full pension. look forward to seeing it signed into Both H.R. 10 and the substitute deal with As a member of the House Small Business law. the 100 percent of compensation problem, Committee, I am committed to helping small Mr. FRELINGHUYSEN. Mr. Speaker, today which speaks to the disparity lower-paid em- businesses provide pension plans that help I rise in support of H.R. 10, the Comprehen- ployees face when they do not get the pen- lower- and moderate-income workers save for sive Retirement Security and Pension Reform sion they should because programs are based retirement. That is why I support the Rangel- Act of 2001. This legislation will help millions on years of service, rather than salary Neal-Andrews-Tierney amendment to add of working Americans plan for a secure retire- amounts. three small business tax credits to H.R. 10. Those who retire early due to the difficult ment by giving them the ability and incentive and often physical nature of their work cur- The first provision in the Rangel-Neal-An- to save during their working years. It will also rently are not allowed to withdraw the full drews-Tierney amendment is a refundable tax allow many small businesses the opportunity amount of their pension. This legislation would credit of up to 50 percent of an employee’s to provide pension coverage for their employ- address that problem. contribution to a traditional IRA or employer- ees. These are important issues and the legisla- sponsored plan up to a maximum credit of A main component of H.R. 10 will raise the tion is long overdue. contribution limit for both traditional and Roth $1,000 per year. This credit would be avail- Mr. GRAVES. Mr. Speaker, I rise today in able for people earning at least $5,000 and Individual Retirement Accounts (IRA’s) from strong support of the Comprehensive Retire- $2,000 to $5,000. This even includes a ‘‘catch- would phase-out as income increases from ment Security and Pension Reform Act. Sev- $25,000 to $75,000 for married couples and up’’ provision allowing workers age 50 and enty million Americans do not have a 401(k)- older to make an immediate contribution of up $12,500 to $37,500 for single people. The type plan or any kind of pension—roughly half second tax credit is to encourage employers to $5,000 to their IRA’s. This provision is help- the workforce. In fact, the problem is worse ful to Older Americans who may not have had that do not currently have pension plans to among small businesses—less than 20 per- start one. Employers of fewer than 100 people the opportunity to contribute to a retirement cent of small businesses with 25 or fewer em- could receive a tax credit of 50 percent of con- savings plan in their earlier working years and ployees offer any kind of pension coverage tributions up to 3 percent of payroll for the first especially critical to women who enter the today. Mr. Speaker, it is time we make retire- three years they have a plan. The final tax workforce later in life. ment security a reality for more Americans. Second, this bill provides portability for indi- The Comprehensive Retirement Security credit in the Rangel-Neal-Andrews-Tierney viduals with 401k-type plans. As you know, in and Pension Reform Act modernizes pension amendment will be available for three years to today’s changing economy, statistics show laws, provides regulatory relief to encourage help small employers with the initial adminis- that an average worker does not stay in one more small businesses to offer retirement trative costs for setting up a plan. job for more than five years. To accommodate plans and allows Americans to set more aside Mr. COYNE. Mr. Speaker, I rise in support the needs of a growing mobile workforce, H.R. in an IRA or 401(k)-type plan. In addition, this of H.R. 10. but, at the same time, I rise to em- 10 will allow workers to change jobs without plan expands opportunities for women to place phasize that important work still needs to be fear of losing their accumulated retirement retirement savings in IRAs when they take done, that this is only the beginning, to im- savings. In addition, workers will also be able time away from the work place, opens the prove the retirement opportunities of those citi- to become vested in a pension plan in 3 years door for women to make catch-up contribu- zens for whom this bill will have limited benefit instead of the current 5. tions to IRAs later in life when they are likely at best. Finally, this legislation removes many of the to earn more money, and increases the overall burdensome regulations and administrative amount they can contribute to their retirement For many years, we have attempted to ad- costs, such as an IRS ‘‘user fee,’’ which in savings. dress the issue of pension reform. In doing so, many cases prevent small businesses from of- I am pleased to vote today to pass this fair, we have learned that this is, in reality, not a fering employer pension plans. This freedom balanced and bipartisan plan to strengthen the simple, single issue, but a set of issues as and flexibility will not only allow small busi- economy, increase savings and investment, complex as they are broad. The challenge for nesses to provide a pension plan, but just as and provide a more secure retirement for all us is to determine what aspects of the pension important, gives an incentive for employees to Americans. system are most in need of legislative remedy, stay in the workforce and make important con- Mr. UDALL of Colorado. Mr. Speaker, Mr. then to direct our energies toward creating the tributions to company growth and productivity. Speaker, I rise in support of H.R. 10, the best solutions. Often we have found that our Mr. Speaker, today’s vote is important be- Comprehensive Retirement Security and Pen- efforts can lead to competing, contradictory re- cause it reaffirms our bipartisan commitment sion Reform Act of 2001. sults.

VerDate 02-MAY-2001 02:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00058 Fmt 7634 Sfmt 9920 E:\CR\FM\K02MY7.068 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1793 I believe that this bill is a worthwhile begin- ployees in small businesses. Therefore, pen- tributions or benefits than would otherwise be ning to addressing the many gaps and short- sion reform should be aimed at providing cov- required under the general rules. H.R. 10 re- falls in pension coverage. I especially com- erage for those who currently lack it. Any pen- laxes these safeguards to the detriment of em- mend the section 415 changes, which will al- sion reform package should be judged pri- ployees working for these firms. leviate the restrictive rules for our many citi- marily in terms of how much additional cov- There are a few relatively miniscule provi- zens who are covered by multiemployer plans. erage for moderate and low-income workers sions that would actually be good policy However, I think that incentives beyond the the legislation provides and at what cost in changes for a broad range of workers if they expansion of contribution limits are needed to terms of lost revenue. The biggest problem were pulled out from the bill and addressed in help employees to fund their retirement ac- with the overall bill is that the bulk of it is separate legislation. counts and to assist small business owners to spent to help relatively few workers who al- The legislation would allow rollovers across start pension plans for themselves and their ready have pensions and save for retirement. defined contribution plan types so that, for ex- employees. The biggest potential problem with the bill is ample, 401(k) assets could be rolled over into We have an obligation to all Americans to that it could actually provide a disincentive for 403(b) accounts. This will allow employees to craft legislation that reaches down to everyone small business owners to provide any pension move from public, private and non-profit jobs in its support of pension income enhancement. coverage at all. with fewer pension constraints. This amounts The two amendments offered by the Demo- Increasing the IRA contribution limits to to .004 percent of the bill’s total cost. The leg- crats do just that. $5,000 is likely to hurt some low and mid-in- islation also allows for faster vesting under The first amendment would help those with come workers by inducing small businesses employer-matching contribution plans. The bill little or no retirement savings, who cannot not to offer an employer-sponsored pension accelerates the schedule for cliff vesting from begin to contemplate making contributions in plan. Under H.R. 10, the small business owner 5 years to 3 years, and from 7 years to 6 the amounts addressed in this bill. It would will be able to contribute $10,000 to an IRA years under graded vesting, reflecting the provide a refundable tax credit on contribu- combined for himself and his spouse. This ad- shorter commitments employees make to any tions made to traditional savings plans and ditional contribution may be sufficient enough one employer. This provision has a negligible IRA’s. I support such a program. for the owner’s retirement savings that he may revenue effect. The second amendment would assist those not perceive a need, nor want to incur the Section 415(b), Multi-Employer Pensions small business owners wishing to offer pen- cost, to set-up an employer-sponsored pen- limits are increased allowing those in the con- sion coverage, and their employees who des- sion plan. struction industry to earn the pensions nego- perately need it. It would provide a tax credit Over three-fourths of the pension and IRA tiated for in their contracts. Although this provi- for pension plan start-up costs and contribu- tax benefits in H.R. 10 would accrue to the 20 sion may only effect a small group of workers, tions. Recent data shows only 42 percent of percent of Americans with the highest in- it accounts for just one percent of the overall full-time employees in businesses with fewer comes. In addition to increasing IRA contribu- bill. It is unfortunate that a little over 1 percent than 100 employees participated in an em- tion limits, this bill helps executives and those of today’s bill actually provides for sound pol- ployer-sponsored pension or retirement sav- employees who already earn the most lucra- icy changes to help those who really need it. ings plans. Small businesses are a vital part of tive salaries and already contribute to some This bill does nothing to induce those who our economy; they deserve our help. type of tax-preferred retirement plan. The bill currently don’t save for retirement to do so, When the Committee on Ways and Means increases the $135,000 annual benefit limit for and it gives those who do save more ways to next takes up the pension issue, and we need defined benefit plans to $160,000. Clearly this shift funds. The Washington Post Editorial De- to do so this year, we must address the fol- only helps those who currently earn the max- partment recognizes this fact, and I would like lowing important areas: (1) the expansion of imum defined benefit plan limit of $135,000. to submit the following Op-Ed for the RECORD. pension coverage to workers without pen- The rank and file workers don’t earn pension I urge my colleagues to vote no on H.R. 10. sions; (2) the expansion of coverage for low- benefits in excess of $135,000 so they don’t [From the Washington Post, Apr. 29, 2001] wage workers; (3) the expansion of coverage need an increase on the annual limit on de- A MISERABLE PENSION BILL for part-time workers; (4) the improvement of fined benefit plans. This is exclusively de- The House Ways and Means Committee has pension coverage for women; (5) the improve- signed for those at the top. approved still another tax cut bill, the third ment of vesting and portability for workers who Currently, there is an employee limit of this year. Unlike the first two, this one is change jobs; and (6) the improvement of avail- $10,500 on deposits to 401(k)s, and the com- relatively small, was not proposed by Presi- able information about retirement planning and bined employer-employee contribution may not dent Bush and has strong bipartisan support. pension choices. exceed the lesser of $30,000 or 25 percent of The House is expected to pass it overwhelm- Research has shown that part-time and pay. The bill before us raises the maximum ingly this week. But that’s unfortunate, be- cause the bill would not produce the healthy lower-income workers are much less likely combined contribution to $40,000 and elimi- result its sponsors suggest. than full-time and more highly paid workers to nates the requirement that it not exceed 25 The bill, whose principal sponsors are be participants in pension or retirement sav- percent of pay. This is yet another example of Reps. Rob Portman and Benjamin Cardin, is ings plans. We must direct our focus to those a provision that is purely intended for high-in- presented as a way of increasing the retire- workers who toil at the margins of pension come workers who already contribute greatly ment savings of the middle class. But in fact coverage. to their pensions. the tax savings, an estimated $52 billion over The lack of pension coverage is a particular Under current law, tax-preferred pension 10 years—would go mainly to people whose problem for women, whose circumstances are plans must not discriminate in favor of highly incomes already permit them to save a great deal. The committee rightly observes that often made worse by years spent out of the compensated employees. For example, em- too many workers approach retirement with workforce tending to family responsibilities. No ployers must not discriminate between execu- insufficient savings; half of all private-sector pension legislation can be considered com- tives and the rank-and-file workers in the for- workers lack pension coverage. But most of plete without a targeted effort to help women mulas used to calculate employer contribu- them will continue to lack it if this bill is secure the pension benefits which all manner tions. This ensures that tax preferences for passed. Those who already have the most of their contributions have earned for them. pension plans serve the public purpose of coverage will be eligible for more; that will And, we must assure that all workers are of- boosting pensions among a wide array of be the main effect. fered the information needed to understand workers. Instead of strengthening these rules, The bill would significantly increase the amounts of money that can be set aside each their pension and retirement savings plans, the pension reform bill loosens the non- year in tax-favored individual retirement and the choices inherent in those plans. discrimination rules. and 401(k) accounts. An estimated three- Mr. Speaker, this bill, which I support today, The bill also seeks to relax the ‘‘top heavy’’ fourths of the benefit of the bill would go to is a starting point to improve the pension sys- protections that serve a similar purpose in en- taxpayers in the highest income quintile, tem that we already have. I now would urge suring that the pension wealth is not con- and two-fifths would go to the highest in- my colleagues to work together to develop the centrated amongst the top tier income-earn- come 5 percent. Democratic efforts to broad- pension system that we need, one that will ers. These safeguards apply to plans in which en the bill to benefit lower-income taxpayers provide a dignified retirement for all workers, 60 percent or more of the pension contribu- failed. This bill also contains provisions that tions or benefits accrue to company officers critics think would induce small employers regardless of their income or career paths. to reduce pension coverage rather than ex- Mr. STARK. Mr. Speaker, half of the Amer- and owners (‘‘key’’ employees). The protec- pand it, as the sponsors suggest. ican workforce lacks pension coverage. The tions require firms to take additional steps to This one won’t break the bank, but neither majority of those who lack pension coverage protect the rank-and-file workers through ac- is it likely to increase savings that much. are low- to moderate-income workers and em- celerated vesting and certain minimum con- For the most part, it will confer in the name

VerDate 02-MAY-2001 02:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00059 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.015 pfrm02 PsN: H02PT1 H1794 CONGRESSIONAL RECORD — HOUSE May 2, 2001 of savings a tidy tax break on people who floor, but had I been, this legislation would ers. And, H.R. 10 will greatly enhance pension were going to save anyway. It ought not to have had my full support. portability, so that workers who change jobs pass. I urge my colleagues to support H.R. 10. can take their pension benefits with them. Mr. CANTOR. Mr. Speaker, I rise today in Mr. BEREUTER. Mr. Speaker, this Member Mr. Speaker, for all of these important rea- support of H.R. 10, the Comprehensive Retire- rises today to express his support for H.R. 10, sons for comprehensive pension reform and ment Security and Pension Reform Act and the Comprehensive Retirement Security Pen- coverage, this Member strongly urges his col- commend Messrs. PORTMAN and CARDIN for sion Reform Act of 2001, of which this Mem- leagues to vote for H.R. 10. introducing this important legislation. ber is an original cosponsor. In fact, this Mem- Mr. WELDON of Florida. Mr. Speaker, I rise Financial security in retirement is the corner- ber also cosponsored similar legislation (H.R. in strong support of H.R. 10. As a proud co- stone of the American dream and a critical 1102) in the prior 106th Congress. Therefore, sponsor of this bill I am pleased that we are component of ensuring the health and well- this Member would like to thank both of the moving forward with this legislation at the out- being of our society for generations to come. main sponsors of H.R. 10—the distinguished set of the 107th Congress. Last year this bill Long-term financial planning provides vast gentleman from Ohio, ROB PORTMAN and the received overwhelming support in the House benefits to our national economy, and all hard- distinguished gentleman from Maryland, BEN and Senate. We now have a President, working Americans deserve to retire in comfort CARDIN—and the chairman of the House Ways George W. Bush, who indicated his support of without worrying about whether they will be- and Means Committee, the distinguished gen- the bill and his willingness to sign it into law. come a burden to their families or reliant upon tleman from California, Mr. BILL THOMAS, for It is critical that we do all that we can to the Federal Government for health care and their instrumental role in bringing H.R. 10 to help Americans better prepare for their retire- daily subsistence. the House floor. ment. H.R. 10 makes it easier for small busi- H.R. 10 would allow Americans to make a The pension reform provisions as provided nesses to offer retirement plans, allows work- greater investment in their own retirement in H.R. 10 are all too necessary as half of the ers to save more of their income for retire- plans through expanded individual retirement people in the American workforce, 70 million ment. It makes it easier for an increasingly accounts and 401(k)s. This provision alone workers, lack access to any sort of pension. mobile workforce to carry their retirement ben- would permit Americans to accumulate more Less than 20 percent of small businesses, efits from one job to another, makes pensions wealth as they work toward retirement and businesses with 25 or fewer employees, offer more secure, and cuts the red tape that has would have an immediate beneficial impact any kind of pension coverage today. And, hamstrung employers who want to establish upon our slowing economy. In addition, this there has been almost no growth in pension pension plans for their employees. bill contains a special catch-up contribution for coverage over the past 20 years. With regard to individual retirement ac- those age 50 and older who perhaps were un- Between 1982 and 1994, Congress repeat- counts (IRAs), the bill increases that annual able to save for retirement to the maximum edly reduced the limits on traditional defined contribution limit from $2,000 to $3,000 in extent possible early in their careers. benefit pension plans, and costly new regu- 2002, $4,000 in 2003 and $5,000 by 2004. Another important aspect of this measure is latory restrictions were added. As a result, the Thereafter, the contribution limit is indexed for that it would greatly enhance pension port- number of these plans dropped from 114,000 inflation. The current $2,000 limit has not been ability, so that workers who change jobs can to 45,000 between 1987 and 1997. And, con- increased since 1981. Additionally, taxpayers that are over 50 years of age are allowed to take their pension benefits with them. This tribution limits on pensions and individual re- contribute up to $5,000 a year beginning im- common sense provision is long overdue and tirement accounts (IRAs) are stuck at 1980s mediately in 2002, allowing these older Ameri- enjoys overwhelming support among working levels. You could set more aside in a 401(k) cans to make ‘‘catch up’’ contributions for re- men and women across the United States. Fi- plan in 1986 than you can today. Unfortu- tirement. nately, these cutbacks hurt the workers who nally, the bill includes provisions that would This bill includes over 50 provisions to im- make it easier for our Nation’s small busi- need the most help in saving for retirement— prove the retirement security of American nesses to start retirement plans, helping bring those at lower and middle income levels. workers. I am pleased that this bill enjoys new pension coverage to millions of small Since 1990, pension coverage has dropped broad bipartisan support, and I look forward to business workers. from 40 to 33 percent among workers who its passage. Mr. Speaker, the time has come to enact make less than $20,000 per year. Mr. TOM DAVIS of Virginia. Mr. Speaker, I this bipartisan legislation into law. No longer To address these concerns H.R. 10 will pro- rise today in strong support of H.R. 10, the can we discuss Social Security and Medicare vide $52 million in tax relief to help Americans Comprehensive Retirement Security and Pen- reform, the rising costs of health care for our save for retirement by making it easier for sion Reform Act, a bill I consider to be one of senior citizens, and their inability to meet daily small businesses to offer retirement plans, al- the most important pieces of legislation we will living expenses on a fixed income without en- lowing workers to save more, addressing the consider during this Congress. abling them to adequately plan and save for needs of an increasingly mobile workforce Americans want to be self-sufficient. That their retirement. through portability, making pensions more se- desire is at the core of the vast majority of leg- I join the overwhelming majority of my col- cure, and cutting the bureaucracy of red tape islation we consider here in Congress, be it leagues in the House in support of H.R. 10 that has thwarted employers in establishing tax-related, healthcare-related, pension-re- and urge the immediate adoption of this im- employee pension plans. The bill will increase lated, or education-related. Americans want portant legislation. the IRA contribution limit from $2,000 to the resources available in their old age that Ms. HARMAN. Mr. Speaker, I rise today to $5,000 over 3 years; subsequently, it will be will allow them to live in dignity, without de- support H.R. 10, the Comprehensive Retire- indexed to inflation in $500 increments. It pendency on the government or the charity of ment Security and Pension Reform Act of would increase the maximum annual contribu- others, and without becoming a burden to their 2001, which will improve the ability of all tion employees can make to their employer- children. This is a simple request, but in order Americans to save for retirement. sponsored 401(k) accounts from $10,500 to to make it possible, years of careful planning Since 1981, the IRA contribution limit has $15,000 over 5 years; subsequently, the an- and savings are required. How can we as not been adjusted for inflation. This legislation nual contribution limit will be indexed to infla- Members of Congress help in this process, increases the contribution limit over the next 3 tion in $500 increments. And, it would allow Mr. Speaker? We have social security, but we years to $5,000. Additionally, those who are taxpayers age 50 and over to contribute all realize this is a program in need of com- over 50 are given the opportunity to ‘‘catch $5,000 immediately beginning in 2001 as prehensive reform in order to remain viable. up’’ through an increased contribution limit of ‘‘catch up’’ contributions for those people who Many are skeptical that the money they pay $5,000 beginning in 2002. This legislation also may have left the workforce for a time pe- into social security will be there to help them addresses the needs of the increasingly mo- riod—this is especially important for women as when they retire. Whatever is done—or not bile workforce through provisions which pro- they often have brief or intermittent work his- done with respect to social security, we all re- vide quicker vesting for employer matching tories. alize that depending heavily on social security funds, a simpler pension system to encourage This is a fair, balanced, bipartisan plan that to provide a secure retirement is a bad idea. small businesses to provide pension plans and will help millions of American workers, includ- In fact, it was never intended to be more than a faster vesting of employer matching con- ing school teachers, union workers, the finan- one leg, of a three-legged stool, the other legs tributions. These provisions will allow the cial services industry, State officials, and edu- of which were personal savings and pension younger generation of workers to better plan cational institutions. It includes provisions that plans. Unfortunately, with the level of personal and adequately prepare for retirement. will make it easier for small businesses to start savings in this country at its lowest level since Mr. Speaker, I was not here the last time retirement plans, helping to bring new pension 1933, this three-legged stool is becoming this legislation was considered on the House coverage to millions of small business work- more of a pogo stick.

VerDate 02-MAY-2001 00:57 May 03, 2001 Jkt 089060 PO 00000 Frm 00060 Fmt 7634 Sfmt 9920 E:\CR\FM\A02MY7.018 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1795 Therefore, it is paramount that we in Con- creased for both traditional IRAs (contributions section or other provision of the Internal gress give Americans tools to save more of are tax deductible and not taxed until with- Revenue Code of 1986. their personal income for retirement. IRAs and drawn) and Roth IRAs (contributions are not (c) TABLE OF CONTENTS.—The table of con- tents of this Act is as follows: 401(k)s have been excellent instruments to deductible but withdrawals are not taxed). accomplish this goal, but allowable contribu- Second, the bill increases the amount an in- Sec. 1. Short title; references; table of con- tents.* tions need to be raised to more realistic levels. dividual can contribute to a 401(k) plan, a tax- H.R. 10 raises the limit for IRA contributions to sheltered annuity or a salary-reduction Sim- TITLE I—INDIVIDUAL RETIREMENT ACCOUNT PROVISIONS $5000 and the 401(k) limit to $15,000, then in- plified Employee Pension (SEP) plan is in- dexes them for inflation. It gives individuals creased from $10,500 to $15,000 by 2006. Sec. 101. Modification of IRA contribution limits. over 50 years old the opportunity to ‘‘catch Third, the bill increases the amount that up’’ by making contributions of up to $5000 may be contributed to a small business SIM- TITLE II—EXPANDING COVERAGE immediately. H.R. 10 also makes it easier for PLE plan from $6,500 to $10,000 by 2006. Sec. 201. Increase in benefit and contribu- workers to move their pension savings when Fourth, the amount that an individual em- tion limits. ployee of a state or local government or a Sec. 202. Plan loans for subchapter S owners, they change jobs, and eliminates regulatory partners, and sole proprietors. barriers that discourage small businesses from non-profit organization can contribute to a Sec. 203. Modification of top-heavy rules. setting up pension programs. Section 457 plan is increased from $8,500 to Sec. 204. Elective deferrals not taken into There are other important provisions in H.R. $15,000 by 2006. In addition, the amount of account for purposes of deduc- 10, but I would like to summarize by saying contributions can be doubled during the last tion limits. that Messrs. PORTMAN and CARDIN have done three years before retirement. Sec. 205. Repeal of coordination require- an outstanding job crafting a comprehensive Together, these provisions provide workers ments for deferred compensa- bill that will help Americans prepare for retire- with increased opportunities to save for retire- tion plans of State and local ment. I commend them on their outstanding ment. governments and tax-exempt Next, the bill increases the portability of organizations. work, and I urge my colleagues to support this Sec. 206. Elimination of user fee for requests bill. pensions. This is increasingly important to the to IRS regarding pension plans. Mr. BRADY of Pennsylvania. Mr. Speaker, I modern workforce, with its high degree of mo- Sec. 207. Deduction limits. rise in strong support of pension provisions in bility. Under the provision, workers will be able Sec. 208. Option to treat elective deferrals as H.R. 10 and the Rangel-Neal substitute. This to roll-over pension savings from one type of after-tax contributions. legislation will make life better for the 10 mil- plan to another as they move from job to job. Sec. 209. Availability of qualified plans to lion hard working Americans, retirees and their The bill also contains an extremely impor- self-employed individuals who families who depend on multi-employer plans tant provision relating to vesting of pension are exempt from the self-em- rights. Under current law, a worker can lose ployment tax by reason of their for retirement, health and other benefits. religious beliefs. I support this legislation for one simple rea- their employer’s pension benefits if they do not Sec. 210. Certain nonresident aliens excluded son. It restores fairness to the tax code. Many work for the employer for five years. The bill in applying minimum coverage working Americans, especially union members changes the vesting rule so that a worker’s requirements. in the building trades work their whole lives rights to pension benefits vests with three Sec. 211. Refundable credit to certain indi- and pay into pension funds. They expect to years of employment. viduals for elective deferrals get back what they put in. I would like to see greater protections for and IRA contributions. Instead, Section 415 of the IRS code treats workers whose employers are converting their Sec. 212. Credit for pension plan startup union multi-employer pension plans the same pension plans to so-called cash balance plans. costs of small employers. Sec. 213. Credit for qualified pension plan way it treats wealthy tax dodgers. Section 415 Employers often do not disclose to older work- contributions of small employ- limits were designed to prevent high income ers that a conversion to a cash balance plan ers. individuals from using pension plans to shelter may contain a ‘‘wear-away’’ provision under TITLE III—ENHANCING FAIRNESS FOR excessive benefits. which a worker may not earn any additional WOMEN But these limits are being applied to multi- pension benefits for several years. Employees Sec. 301. Catch-up contributions for individ- employer plans, whose beneficiaries are typ- also do not receive adequate explanation of uals age 50 or over. ical working men and women. Multi-employer the effect that a conversion has on pension Sec. 302. Equitable treatment for contribu- plan retirees need relief and they need it now. benefits because employers are not required tions of employees to defined H.R. 10 and the substitute allow working to provide an explanation. contribution plans. people to receive more of their retirement ben- On balance, however, the bill is a step in Sec. 303. Faster vesting of certain employer efits that they have worked for and earned. the right direction of assisting Americans to in- matching contributions. Mr. Speaker, I want to thank my friends BEN creasing their savings toward their retirement Sec. 304. Modifications to minimum dis- tribution rules. CARDIN and ROB PORTMAN for working so hard and I urge its passage. Sec. 305. Clarification of tax treatment of to bring this much needed relief to working The SPEAKER pro tempore. All time division of section 457 plan ben- Americans. I urge my colleagues to support for general debate has expired. efits upon divorce. this bill. AMENDMENT IN THE NATURE OF A SUBSTITUTE Sec. 306. Provisions relating to hardship dis- Mrs. MINK of Hawaii. Mr. Speaker, I rise in OFFERED BY MR. NEAL OF MASSACHUSETTS tributions. support of H.R. 10, the Portman-Cardin pen- Mr. NEAL of Massachusetts. Mr. Sec. 307. Waiver of tax on nondeductible sion reform bill. I am proud to be an original Speaker, I offer an amendment in the contributions for domestic or cosponsor of this legislation. nature of a substitute. similar workers. According to the Social Security Administra- The SPEAKER pro tempore. The TITLE IV—INCREASING PORTABILITY tion, the average retiree gets only 40 percent Clerk will designate the amendment in FOR PARTICIPANTS of her income from Social Security. Another the nature of a substitute. Sec. 401. Rollovers allowed among various 19 percent comes from employer-provided The text of the amendment in the na- types of plans. pensions, 18 percent from personal savings ture of a substitute is as follows: Sec. 402. Rollovers of IRAs into workplace and 20 percent from earnings. Unfortunately, retirement plans. Amendment in the nature of a substitute Sec. 403. Rollovers of after-tax contribu- half of all private sector workers have no pen- offered by Mr. NEAL of Massachusetts: tions. sion coverage. In businesses with less than 25 Strike all after the enacting clause and in- Sec. 404. Hardship exception to 60-day rule. workers, only 20 percent have pension plans. sert the following: Sec. 405. Treatment of forms of distribution. Workers in such positions need incentives to SECTION 1. SHORT TITLE; REFERENCES; TABLE Sec. 406. Rationalization of restrictions on save for their retirement. OF CONTENTS. distributions. H.R. 10 is designed to encourage retirement (a) SHORT TITLE.—This Act may be cited as Sec. 407. Purchase of service credit in gov- and pension savings. the ‘‘Comprehensive Retirement Security ernmental defined benefit First, the bill increases the amount an indi- and Pension Reform Act of 2001’’. plans. (b) AMENDMENT OF 1986 CODE.—Except as Sec. 408. Employers may disregard rollovers vidual can contribute to an Individual Retire- otherwise expressly provided, whenever in for purposes of cash-out ment Account (IRA) and $2,000 per year to this Act an amendment or repeal is ex- amounts. $5,000 per year by 2004. Beginning in 2005, pressed in terms of an amendment to, or re- Sec. 409. Minimum distribution and inclu- the amount would be indexed for inflation in peal of, a section or other provision, the ref- sion requirements for section $500 increments. The contribution limit is in- erence shall be considered to be made to a 457 plans.

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TITLE V—STRENGTHENING PENSION ‘‘(A) IN GENERAL.—The deductible amount (4) COST-OF-LIVING ADJUSTMENTS.—Sub- SECURITY AND ENFORCEMENT shall be determined in accordance with the section (d) of section 415 (related to cost-of- Sec. 501. Repeal of percent of current liabil- following table: living adjustments) is amended— ity funding limit. ‘‘For taxable years The deductible (A) by striking ‘‘$90,000’’ in paragraph Sec. 502. Maximum contribution deduction beginning in: amount is: (1)(A) and inserting ‘‘$160,000’’; and rules modified and applied to 2002 ...... $3,000 (B) in paragraph (3)(A)— all defined benefit plans. 2003 ...... $4,000 (i) by striking ‘‘$90,000’’ in the heading and Sec. 503. Excise tax relief for sound pension 2004 and thereafter ...... $5,000. inserting ‘‘$160,000’’; and funding. ‘‘(B) CATCH-UP CONTRIBUTIONS FOR INDIVID- (ii) by striking ‘‘October 1, 1986’’ and in- Sec. 504. Excise tax on failure to provide no- UALS 50 OR OLDER.—In the case of an indi- serting ‘‘July 1, 2001’’. tice by defined benefit plans vidual who has attained the age of 50 before (5) CONFORMING AMENDMENTS.— significantly reducing future the close of the taxable year, the deductible (A) Section 415(b)(2) is amended by striking benefit accruals. amount for taxable years beginning in 2002 subparagraph (F). Sec. 505. Treatment of multiemployer plans or 2003 shall be $5,000. (B) Section 415(b)(9) is amended to read as under section 415. ‘‘(C) COST-OF-LIVING ADJUSTMENT.— follows: Sec. 506. Protection of investment of em- ‘‘(i) IN GENERAL.—In the case of any tax- ‘‘(9) SPECIAL RULE FOR COMMERCIAL AIRLINE ployee contributions to 401(k) able year beginning in a calendar year after PILOTS.— plans. 2004, the $5,000 amount under subparagraph ‘‘(A) IN GENERAL.—Except as provided in Sec. 507. Periodic pension benefits state- (A) shall be increased by an amount equal subparagraph (B), in the case of any partici- ments. to— pant who is a commercial airline pilot, if, as Sec. 508. Prohibited allocations of stock in S ‘‘(I) such dollar amount, multiplied by of the time of the participant’s retirement, corporation ESOP. ‘‘(II) the cost-of-living adjustment deter- regulations prescribed by the Federal Avia- tion Administration require an individual to TITLE VI—REDUCING REGULATORY mined under section 1(f )(3) for the calendar separate from service as a commercial air- BURDENS year in which the taxable year begins, deter- mined by substituting ‘calendar year 2003’ line pilot after attaining any age occurring Sec. 601. Modification of timing of plan for ‘calendar year 1992’ in subparagraph (B) on or after age 60 and before age 62, para- valuations. thereof. graph (2)(C) shall be applied by substituting Sec. 602. ESOP dividends may be reinvested ‘‘(ii) ROUNDING RULES.—If any amount after such age for age 62. without loss of dividend deduc- adjustment under clause (i) is not a multiple ‘‘(B) INDIVIDUALS WHO SEPARATE FROM tion. of $500, such amount shall be rounded to the SERVICE BEFORE AGE 60.—If a participant de- Sec. 603. Repeal of transition rule relating next lower multiple of $500.’’. scribed in subparagraph (A) separates from to certain highly compensated (b) CONFORMING AMENDMENTS.— service before age 60, the rules of paragraph employees. (1) Section 408(a)(1) is amended by striking (2)(C) shall apply.’’. Sec. 604. Employees of tax-exempt entities. ‘‘in excess of $2,000 on behalf of any indi- (C) Section 415(b)(10)(C)(i) is amended by Sec. 605. Clarification of treatment of em- vidual’’ and inserting ‘‘on behalf of any indi- striking ‘‘applied without regard to para- ployer-provided retirement ad- vidual in excess of the amount in effect for graph (2)(F)’’. vice. such taxable year under section 219(b)(1)(A)’’. (b) DEFINED CONTRIBUTION PLANS.— Sec. 606. Reporting simplification. (2) Section 408(b)(2)(B) is amended by strik- (1) DOLLAR LIMIT.—Subparagraph (A) of Sec. 607. Improvement of employee plans ing ‘‘$2,000’’ and inserting ‘‘the dollar section 415(c)(1) (relating to limitation for compliance resolution system. amount in effect under section 219(b)(1)(A)’’. defined contribution plans) is amended by Sec. 608. Repeal of the multiple use test. (3) Section 408(b) is amended by striking striking ‘‘$30,000’’ and inserting ‘‘$40,000’’. Sec. 609. Flexibility in nondiscrimination, ‘‘$2,000’’ in the matter following paragraph (2) COST-OF-LIVING ADJUSTMENTS.—Sub- coverage, and line of business (4) and inserting ‘‘the dollar amount in effect section (d) of section 415 (related to cost-of- rules. under section 219(b)(1)(A)’’. living adjustments) is amended— Sec. 610. Extension to all governmental (4) Section 408( j) is amended by striking (A) by striking ‘‘$30,000’’ in paragraph plans of moratorium on appli- ‘‘$2,000’’. (1)(C) and inserting ‘‘$40,000’’; and cation of certain non- (5) Section 408(p)(8) is amended by striking (B) in paragraph (3)(D)— discrimination rules applicable ‘‘$2,000’’ and inserting ‘‘the dollar amount in (i) by striking ‘‘$30,000’’ in the heading and to State and local plans. effect under section 219(b)(1)(A)’’. inserting ‘‘$40,000’’; and Sec. 611. Notice and consent period regard- (c) EFFECTIVE DATE.—The amendments (ii) by striking ‘‘October 1, 1993’’ and in- ing distributions. made by this section shall apply to taxable serting ‘‘July 1, 2001’’. Sec. 612. Annual report dissemination. years beginning after December 31, 2001. (c) QUALIFIED TRUSTS.— Sec. 613. Technical corrections to SAVER TITLE II—EXPANDING COVERAGE (1) COMPENSATION LIMIT.—Sections Act. SEC. 201. INCREASE IN BENEFIT AND CONTRIBU- 401(a)(17), 404(l), 408(k), and 505(b)(7) are each TITLE VII—OTHER ERISA PROVISIONS TION LIMITS. amended by striking ‘‘$150,000’’ each place it Sec. 701. Missing participants. (a) DEFINED BENEFIT PLANS.— appears and inserting ‘‘$200,000’’. Sec. 702. Reduced PBGC premium for new (1) DOLLAR LIMIT.— (2) BASE PERIOD AND ROUNDING OF COST-OF- plans of small employers. (A) Subparagraph (A) of section 415(b)(1) LIVING ADJUSTMENT.—Subparagraph (B) of Sec. 703. Reduction of additional PBGC pre- (relating to limitation for defined benefit section 401(a)(17) is amended— mium for new and small plans. plans) is amended by striking ‘‘$90,000’’ and (A) by striking ‘‘October 1, 1993’’ and in- Sec. 704. Authorization for PBGC to pay in- inserting ‘‘$160,000’’. serting ‘‘July 1, 2001’’; and terest on premium overpay- (B) Subparagraphs (C) and (D) of section (B) by striking ‘‘$10,000’’ both places it ap- ment refunds. 415(b)(2) are each amended by striking pears and inserting ‘‘$5,000’’. Sec. 705. Substantial owner benefits in ter- ‘‘$90,000’’ each place it appears in the head- (d) ELECTIVE DEFERRALS.— minated plans. ings and the text and inserting ‘‘$160,000’’. (1) IN GENERAL.—Paragraph (1) of section Sec. 706. Civil penalties for breach of fidu- (C) Paragraph (7) of section 415(b) (relating 402(g) (relating to limitation on exclusion for ciary responsibility. to benefits under certain collectively bar- elective deferrals) is amended to read as fol- Sec. 707. Benefit suspension notice. gained plans) is amended by striking ‘‘the lows: Sec. 708. Studies. greater of $68,212 or one-half the amount oth- ‘‘(1) IN GENERAL.— ‘‘(A) LIMITATION.—Notwithstanding sub- TITLE VIII—PLAN AMENDMENTS erwise applicable for such year under para- graph (1)(A) for ‘$90,000’’’ and inserting ‘‘one- sections (e)(3) and (h)(1)(B), the elective de- Sec. 801. Provisions relating to plan amend- half the amount otherwise applicable for ferrals of any individual for any taxable year ments. such year under paragraph (1)(A) for shall be included in such individual’s gross TITLE I—INDIVIDUAL RETIREMENT ‘$160,000’’’. income to the extent the amount of such de- ACCOUNTS (2) LIMIT REDUCED WHEN BENEFIT BEGINS BE- ferrals for the taxable year exceeds the ap- SEC. 101. MODIFICATION OF IRA CONTRIBUTION FORE AGE 62.—Subparagraph (C) of section plicable dollar amount. LIMITS. 415(b)(2) is amended by striking ‘‘the social ‘‘(B) APPLICABLE DOLLAR AMOUNT.—For (a) INCREASE IN CONTRIBUTION LIMIT.— security retirement age’’ each place it ap- purposes of subparagraph (A), the applicable (1) IN GENERAL.—Paragraph (1)(A) of sec- pears in the heading and text and inserting dollar amount shall be the amount deter- tion 219(b) (relating to maximum amount of ‘‘age 62’’ and by striking the second sen- mined in accordance with the following deduction) is amended by striking ‘‘$2,000’’ tence. table: and inserting ‘‘the deductible amount’’. (3) LIMIT INCREASED WHEN BENEFIT BEGINS ‘‘For taxable years The applicable (2) DEDUCTIBLE AMOUNT.—Section 219(b) is AFTER AGE 65.—Subparagraph (D) of section beginning in dollar amount: amended by adding at the end the following 415(b)(2) is amended by striking ‘‘the social calendar year: new paragraph: security retirement age’’ each place it ap- 2002 ...... $11,000 ‘‘(5) DEDUCTIBLE AMOUNT.—For purposes of pears in the heading and text and inserting 2003 ...... $12,000 paragraph (1)(A)— ‘‘age 65’’. 2004 ...... $13,000

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2005 ...... $14,000 ‘‘For taxable years The applicable QUIREMENTS.—Section 416(c)(2)(A) (relating 2006 or thereafter ...... $15,000.’’. beginning in dollar amount: to defined contribution plans) is amended by calendar year: adding at the end the following: ‘‘Employer (2) COST-OF-LIVING ADJUSTMENT.—Para- 2002 ...... $7,000 matching contributions (as defined in sec- graph (5) of section 402(g) is amended to read 2003 ...... $8,000 as follows: tion 401(m)(4)(A)) shall be taken into account 2004 ...... $9,000 for purposes of this subparagraph.’’. ‘‘(5) COST-OF-LIVING ADJUSTMENT.—In the 2005 or thereafter ...... $10,000. (c) DISTRIBUTIONS DURING LAST YEAR BE- case of taxable years beginning after Decem- ‘‘(ii) COST-OF-LIVING ADJUSTMENT.—In the FORE DETERMINATION DATE TAKEN INTO AC- ber 31, 2006, the Secretary shall adjust the case of a year beginning after December 31, COUNT.— $15,000 amount under paragraph (1)(B) at the 2005, the Secretary shall adjust the $10,000 same time and in the same manner as under (1) IN GENERAL.—Paragraph (3) of section amount under clause (i) at the same time 416(g) is amended to read as follows: section 415(d), except that the base period and in the same manner as under section ‘‘(3) DISTRIBUTIONS DURING LAST YEAR BE- shall be the calendar quarter beginning July 415(d), except that the base period taken into FORE DETERMINATION DATE TAKEN INTO AC- 1, 2005, and any increase under this para- account shall be the calendar quarter begin- COUNT.— graph which is not a multiple of $500 shall be ning July 1, 2004, and any increase under this rounded to the next lowest multiple of ‘‘(A) IN GENERAL.—For purposes of deter- subparagraph which is not a multiple of $500 mining— $500.’’. shall be rounded to the next lower multiple (3) CONFORMING AMENDMENTS.— ‘‘(i) the present value of the cumulative ac- of $500.’’. crued benefit for any employee, or (A) Section 402(g) (relating to limitation (3) CONFORMING AMENDMENTS.— on exclusion for elective deferrals), as ‘‘(ii) the amount of the account of any em- (A) Subclause (I) of section 401(k)(11)(B)(i) ployee, amended by paragraphs (1) and (2), is further is amended by striking ‘‘$6,000’’ and inserting amended by striking paragraph (4) and redes- ‘‘the amount in effect under section such present value or amount shall be in- ignating paragraphs (5), (6), (7), (8), and (9) as 408(p)(2)(A)(ii)’’. creased by the aggregate distributions made paragraphs (4), (5), (6), (7), and (8), respec- (B) Section 401(k)(11) is amended by strik- with respect to such employee under the tively. ing subparagraph (E). plan during the 1-year period ending on the (B) Paragraph (2) of section 457(c) is (g) ROUNDING RULE RELATING TO DEFINED determination date. The preceding sentence amended by striking ‘‘402(g)(8)(A)(iii)’’ and BENEFIT PLANS AND DEFINED CONTRIBUTION shall also apply to distributions under a ter- inserting ‘‘402(g)(7)(A)(iii)’’. PLANS.—Paragraph (4) of section 415(d) is minated plan which if it had not been termi- (C) Clause (iii) of section 501(c)(18)(D) is amended to read as follows: nated would have been required to be in- amended by striking ‘‘(other than paragraph ‘‘(4) ROUNDING.— cluded in an aggregation group. (4) thereof)’’. ‘‘(A) $160,000 AMOUNT.—Any increase under ‘‘(B) 5-YEAR PERIOD IN CASE OF IN-SERVICE (e) DEFERRED COMPENSATION PLANS OF subparagraph (A) of paragraph (1) which is DISTRIBUTION.—In the case of any distribu- STATE AND LOCAL GOVERNMENTS AND TAX-EX- not a multiple of $5,000 shall be rounded to tion made for a reason other than separation EMPT ORGANIZATIONS.— the next lowest multiple of $5,000. from service, death, or disability, subpara- (1) IN GENERAL.—Section 457 (relating to ‘‘(B) $40,000 AMOUNT.—Any increase under graph (A) shall be applied by substituting ‘5- deferred compensation plans of State and subparagraph (C) of paragraph (1) which is year period’ for ‘1-year period’.’’. local governments and tax-exempt organiza- not a multiple of $1,000 shall be rounded to (2) BENEFITS NOT TAKEN INTO ACCOUNT.— tions) is amended— the next lowest multiple of $1,000.’’. Subparagraph (E) of section 416(g)(4) is (A) in subsections (b)(2)(A) and (c)(1) by (h) EFFECTIVE DATE.—The amendments amended— striking ‘‘$7,500’’ each place it appears and made by this section shall apply to years be- (A) by striking ‘‘LAST 5 YEARS’’ in the head- inserting ‘‘the applicable dollar amount’’; ginning after December 31, 2001. ing and inserting ‘‘LAST YEAR BEFORE DETER- and SEC. 202. PLAN LOANS FOR SUBCHAPTER S OWN- MINATION DATE’’; and (B) in subsection (b)(3)(A) by striking ERS, PARTNERS, AND SOLE PROPRI- (B) by striking ‘‘5-year period’’ and insert- ‘‘$15,000’’ and inserting ‘‘twice the dollar ETORS. ing ‘‘1-year period’’. amount in effect under subsection (b)(2)(A)’’. (a) AMENDMENT OF INTERNAL REVENUE (d) DEFINITION OF TOP-HEAVY PLANS.— (2) APPLICABLE DOLLAR AMOUNT; COST-OF- CODE.—Subparagraph (B) of section 4975(f)(6) Paragraph (4) of section 416(g) (relating to LIVING ADJUSTMENT.—Paragraph (15) of sec- (relating to exemptions not to apply to cer- other special rules for top-heavy plans) is tion 457(e) is amended to read as follows: tain transactions) is amended by adding at amended by adding at the end the following ‘‘(15) APPLICABLE DOLLAR AMOUNT.— the end the following new clause: new subparagraph: ‘‘(A) IN GENERAL.—The applicable dollar ‘‘(iii) LOAN EXCEPTION.—For purposes of ‘‘(H) CASH OR DEFERRED ARRANGEMENTS amount shall be the amount determined in subparagraph (A)(i), the term ‘owner-em- USING ALTERNATIVE METHODS OF MEETING NON- accordance with the following table: ployee’ shall only include a person described DISCRIMINATION REQUIREMENTS.—The term in subclause (II) or (III) of clause (i).’’. ‘top-heavy plan’ shall not include a plan ‘‘For taxable years The applicable (b) AMENDMENT OF ERISA.—Section which consists solely of— beginning in dollar amount: 408(d)(2) of the Employee Retirement Income ‘‘(i) a cash or deferred arrangement which calendar year: Security Act of 1974 (29 U.S.C. 1108(d)(2)) is meets the requirements of section 401(k)(12), 2002 ...... $11,000 amended by adding at the end the following and 2003 ...... $12,000 new subparagraph: ‘‘(ii) matching contributions with respect 2004 ...... $13,000 ‘‘(C) For purposes of paragraph (1)(A), the to which the requirements of section 2005 ...... $14,000 term ‘owner-employee’ shall only include a 401(m)(11) are met. person described in clause (ii) or (iii) of sub- If, but for this subparagraph, a plan would be 2006 or thereafter ...... $15,000. paragraph (A).’’. treated as a top-heavy plan because it is a ‘‘(B) COST-OF-LIVING ADJUSTMENTS.—In the (c) EFFECTIVE DATE.—The amendments member of an aggregation group which is a case of taxable years beginning after Decem- made by this section shall apply to years be- top-heavy group, contributions under the ber 31, 2006, the Secretary shall adjust the ginning after December 31, 2001. $15,000 amount under subparagraph (A) at the plan may be taken into account in deter- SEC. 203. MODIFICATION OF TOP-HEAVY RULES. mining whether any other plan in the group same time and in the same manner as under (a) SIMPLIFICATION OF DEFINITION OF KEY section 415(d), except that the base period meets the requirements of subsection EMPLOYEE.— (c)(2).’’. shall be the calendar quarter beginning July (1) IN GENERAL.—Section 416(i)(1)(A) (defin- (e) FROZEN PLAN EXEMPT FROM MINIMUM 1, 2005, and any increase under this para- ing key employee) is amended— BENEFIT REQUIREMENT.—Subparagraph (C) of graph which is not a multiple of $500 shall be (A) by striking ‘‘or any of the 4 preceding section 416(c)(1) (relating to defined benefit rounded to the next lowest multiple of plan years’’ in the matter preceding clause plans) is amended— $500.’’. (i); (A) by striking ‘‘clause (ii)’’ in clause (i) (f) SIMPLE RETIREMENT ACCOUNTS.— (B) by striking clause (i) and inserting the and inserting ‘‘clause (ii) or (iii)’’; and (1) LIMITATION.—Clause (ii) of section following: (B) by adding at the end the following: 408(p)(2)(A) (relating to general rule for ‘‘(i) an officer of the employer having an qualified salary reduction arrangement) is annual compensation greater than $150,000,’’; ‘‘(iii) EXCEPTION FOR FROZEN PLAN.—For amended by striking ‘‘$6,000’’ and inserting (C) by striking clause (ii) and redesig- purposes of determining an employee’s years ‘‘the applicable dollar amount’’. nating clauses (iii) and (iv) as clauses (ii) and of service with the employer, any service (2) APPLICABLE DOLLAR AMOUNT.—Subpara- (iii), respectively; and with the employer shall be disregarded to graph (E) of 408(p)(2) is amended to read as (D) by striking the second sentence in the the extent that such service occurs during a follows: matter following clause (iii), as redesignated plan year when the plan benefits (within the ‘‘(E) APPLICABLE DOLLAR AMOUNT; COST-OF- by subparagraph (C). meaning of section 410(b)) no key employee LIVING ADJUSTMENT.— (2) CONFORMING AMENDMENT.—Section or former key employee.’’. ‘‘(i) IN GENERAL.—For purposes of subpara- 416(i)(1)(B)(iii) is amended by striking ‘‘and (f) ELIMINATION OF FAMILY ATTRIBUTION.— graph (A)(ii), the applicable dollar amount subparagraph (A)(ii)’’. Section 416(i)(1)(B) (defining 5-percent shall be the amount determined in accord- (b) MATCHING CONTRIBUTIONS TAKEN INTO owner) is amended by adding at the end the ance with the following table: ACCOUNT FOR MINIMUM CONTRIBUTION RE- following new clause:

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‘‘(iv) FAMILY ATTRIBUTION DISREGARDED.— under this section shall be made as of the ‘‘(B) maintains separate recordkeeping Solely for purposes of applying this para- date of the request described in subsection with respect to each account. graph (and not for purposes of any provision (a). ‘‘(c) DEFINITIONS AND RULES RELATING TO of this title which incorporates by reference (d) DETERMINATION OF AVERAGE FEES DESIGNATED PLUS CONTRIBUTIONS.—For pur- the definition of a key employee or 5-percent CHARGED.—For purposes of any determina- poses of this section— owner under this paragraph), section 318 tion of average fees charged, any request to ‘‘(1) DESIGNATED PLUS CONTRIBUTION.—The shall be applied without regard to subsection which subsection (a) applies shall not be term ‘designated plus contribution’ means (a)(1) thereof in determining whether any taken into account. any elective deferral which— person is a 5-percent owner.’’. (e) EFFECTIVE DATE.—The provisions of ‘‘(A) is excludable from gross income of an (g) EFFECTIVE DATE.—The amendments this section shall apply with respect to re- employee without regard to this section, and made by this section shall apply to years be- quests made after December 31, 2001. ‘‘(B) the employee designates (at such time and in such manner as the Secretary may ginning after December 31, 2001. SEC. 207. DEDUCTION LIMITS. prescribe) as not being so excludable. SEC. 204. ELECTIVE DEFERRALS NOT TAKEN (a) STOCK BONUS AND PROFIT SHARING ‘‘(2) DESIGNATION LIMITS.—The amount of INTO ACCOUNT FOR PURPOSES OF TRUSTS.— DEDUCTION LIMITS. elective deferrals which an employee may (1) IN GENERAL.—Subclause (I) of section designate under paragraph (1) shall not ex- (a) IN GENERAL.—Section 404 (relating to 404(a)(3)(A)(i) (relating to stock bonus and deduction for contributions of an employer ceed the excess (if any) of— profit sharing trusts) is amended by striking ‘‘(A) the maximum amount of elective de- to an employees’ trust or annuity plan and ‘‘15 percent’’ and inserting ‘‘20 percent’’. compensation under a deferred payment ferrals excludable from gross income of the (2) CONFORMING AMENDMENT.—Subpara- employee for the taxable year (without re- plan) is amended by adding at the end the graph (C) of section 404(h)(1) is amended by following new subsection: gard to this section), over striking ‘‘15 percent’’ each place it appears ‘‘(B) the aggregate amount of elective de- ‘‘(n) ELECTIVE DEFERRALS NOT TAKEN INTO and inserting ‘‘20 percent’’. ACCOUNT FOR PURPOSES OF DEDUCTION LIM- ferrals of the employee for the taxable year (b) COMPENSATION.— ITS.—Elective deferrals (as defined in section which the employee does not designate under (1) IN GENERAL.—Section 404(a) (relating to 402(g)(3)) shall not be subject to any limita- paragraph (1). general rule) is amended by adding at the ‘‘(3) ROLLOVER CONTRIBUTIONS.— tion contained in paragraph (3), (7), or (9) of end the following: subsection (a), and such elective deferrals ‘‘(A) IN GENERAL.—A rollover contribution ‘‘(12) DEFINITION OF COMPENSATION.—For of any payment or distribution from a des- shall not be taken into account in applying purposes of paragraphs (3), (7), (8), and (9), any such limitation to any other contribu- ignated plus account which is otherwise al- the term ‘compensation otherwise paid or ac- lowable under this chapter may be made tions.’’. crued during the taxable year’ shall include (b) EFFECTIVE DATE.—The amendment only if the contribution is to— amounts treated as ‘participant’s compensa- made by this section shall apply to years be- ‘‘(i) another designated plus account of the tion’ under subparagraph (C) or (D) of sec- ginning after December 31, 2001. individual from whose account the payment tion 415(c)(3).’’. or distribution was made, or SEC. 205. REPEAL OF COORDINATION REQUIRE- (2) CONFORMING AMENDMENTS.— ‘‘(ii) a Roth IRA of such individual. MENTS FOR DEFERRED COMPENSA- (A) Subparagraph (B) of section 404(a)(3) is TION PLANS OF STATE AND LOCAL ‘‘(B) COORDINATION WITH LIMIT.—Any roll- GOVERNMENTS AND TAX-EXEMPT amended by striking the last sentence. over contribution to a designated plus ac- ORGANIZATIONS. (B) Clause (i) of section 4972(c)(6)(B) is count under subparagraph (A) shall not be (a) IN GENERAL.—Subsection (c) of section amended by striking ‘‘(within the meaning of taken into account for purposes of paragraph 457 (relating to deferred compensation plans section 404(a))’’ and inserting ‘‘(within the (1). of State and local governments and tax-ex- meaning of section 404(a) and as adjusted ‘‘(d) DISTRIBUTION RULES.—For purposes of empt organizations), as amended by section under section 404(a)(12))’’. this title— 201, is amended to read as follows: (c) EFFECTIVE DATE.—The amendments ‘‘(1) EXCLUSION.—Any qualified distribu- ‘‘(c) LIMITATION.—The maximum amount of made by this section shall apply to years be- tion from a designated plus account shall not the compensation of any one individual ginning after December 31, 2001. be includible in gross income. which may be deferred under subsection (a) SEC. 208. OPTION TO TREAT ELECTIVE DEFER- ‘‘(2) QUALIFIED DISTRIBUTION.—For purposes during any taxable year shall not exceed the RALS AS AFTER-TAX CONTRIBU- of this subsection— amount in effect under subsection (b)(2)(A) TIONS. ‘‘(A) IN GENERAL.—The term ‘qualified dis- (as modified by any adjustment provided (a) IN GENERAL.—Subpart A of part I of tribution’ has the meaning given such term under subsection (b)(3)).’’. subchapter D of chapter 1 (relating to de- by section 408A(d)(2)(A) (without regard to (b) EFFECTIVE DATE.—The amendment ferred compensation, etc.) is amended by in- clause (iv) thereof). made by subsection (a) shall apply to years serting after section 402 the following new ‘‘(B) DISTRIBUTIONS WITHIN NONEXCLUSION beginning after December 31, 2001. section: PERIOD.—A payment or distribution from a SEC. 206. ELIMINATION OF USER FEE FOR RE- ‘‘SEC. 402A. OPTIONAL TREATMENT OF ELECTIVE designated plus account shall not be treated QUESTS TO IRS REGARDING PEN- DEFERRALS AS PLUS CONTRIBU- as a qualified distribution if such payment or SION PLANS. TIONS. distribution is made within the 5-taxable- (a) ELIMINATION OF CERTAIN USER FEES.— ‘‘(a) GENERAL RULE.—If an applicable re- year period beginning with the earlier of— The Secretary of the Treasury or the Sec- tirement plan includes a qualified plus con- ‘‘(i) the first taxable year for which the in- retary’s delegate shall not require payment tribution program— dividual made a designated plus contribution of user fees under the program established ‘‘(1) any designated plus contribution made to any designated plus account established under section 10511 of the Revenue Act of by an employee pursuant to the program for such individual under the same applica- 1987 for requests to the Internal Revenue shall be treated as an elective deferral for ble retirement plan, or Service for determination letters with re- purposes of this chapter, except that such ‘‘(ii) if a rollover contribution was made to spect to the qualified status of a pension contribution shall not be excludable from such designated plus account from a des- benefit plan maintained solely by one or gross income, and ignated plus account previously established more eligible employers or any trust which ‘‘(2) such plan (and any arrangement which for such individual under another applicable is part of the plan. The preceding sentence is part of such plan) shall not be treated as retirement plan, the first taxable year for shall not apply to any request— failing to meet any requirement of this chap- which the individual made a designated plus (1) made after the later of— ter solely by reason of including such pro- contribution to such previously established (A) the fifth plan year the pension benefit gram. account. plan is in existence; or ‘‘(b) QUALIFIED PLUS CONTRIBUTION PRO- ‘‘(C) DISTRIBUTIONS OF EXCESS DEFERRALS (B) the end of any remedial amendment pe- GRAM.—For purposes of this section— AND CONTRIBUTIONS AND EARNINGS THEREON.— riod with respect to the plan beginning with- ‘‘(1) IN GENERAL.—The term ‘qualified plus The term ‘qualified distribution’ shall not in the first 5 plan years; or contribution program’ means a program include any distribution of an excess deferral (2) made by the sponsor of any prototype under which an employee may elect to make under section 402(g)(2) or any excess con- or similar plan which the sponsor intends to designated plus contributions in lieu of all or tribution under section 401(k)(8), and any in- market to participating employers. a portion of elective deferrals the employee come on the excess deferral or contribution. (b) PENSION BENEFIT PLAN.—For purposes is otherwise eligible to make under the ap- ‘‘(3) TREATMENT OF DISTRIBUTIONS OF CER- of this section, the term ‘‘pension benefit plicable retirement plan. TAIN EXCESS DEFERRALS.—Notwithstanding plan’’ means a pension, profit-sharing, stock ‘‘(2) SEPARATE ACCOUNTING REQUIRED.—A section 72, if any excess deferral under sec- bonus, annuity, or employee stock ownership program shall not be treated as a qualified tion 402(g)(2) attributable to a designated plan. plus contribution program unless the appli- plus contribution is not distributed on or be- (c) ELIGIBLE EMPLOYER.—For purposes of cable retirement plan— fore the 1st April 15 following the close of this section, the term ‘‘eligible employer’’ ‘‘(A) establishes separate accounts (‘des- the taxable year in which such excess defer- has the same meaning given such term in ignated plus accounts’) for the designated ral is made, the amount of such excess defer- section 408(p)(2)(C)(i)(I) of the Internal Rev- plus contributions of each employee and any ral shall— enue Code of 1986. The determination of earnings properly allocable to the contribu- ‘‘(A) not be treated as investment in the whether an employer is an eligible employer tions, and contract, and

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00064 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.026 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1799 ‘‘(B) be included in gross income for the defined in section 402A)’’ before the comma ployed) is amended by adding at the end the taxable year in which such excess is distrib- at the end. following new sentence: ‘‘The preceding sen- uted. (2) INFORMATION.—Section 6047 is amended tence shall be applied as if the term ‘trade or ‘‘(4) AGGREGATION RULES.—Section 72 shall by redesignating subsection (f) as subsection business’ for purposes of section 1402 in- be applied separately with respect to dis- (g) and by inserting after subsection (e) the cluded service described in section tributions and payments from a designated following new subsection: 1402(c)(6).’’. plus account and other distributions and ‘‘(f) DESIGNATED PLUS CONTRIBUTIONS.—The (c) EFFECTIVE DATE.—The amendments payments from the plan. Secretary shall require the plan adminis- made by this section shall apply to taxable ‘‘(e) OTHER DEFINITIONS.—For purposes of trator of each applicable retirement plan (as years beginning after December 31, 2001. this section— defined in section 402A) to make such re- ‘‘(1) APPLICABLE RETIREMENT PLAN.—The turns and reports regarding designated plus SEC. 210. CERTAIN NONRESIDENT ALIENS EX- term ‘applicable retirement plan’ means— contributions (as so defined) to the Sec- CLUDED IN APPLYING MINIMUM COVERAGE REQUIREMENTS. ‘‘(A) an employees’ trust described in sec- retary, participants and beneficiaries of the tion 401(a) which is exempt from tax under plan, and such other persons as the Sec- (a) IN GENERAL.—Subparagraph (C) of sec- section 501(a), and retary may prescribe.’’. tion 410(b)(3) (relating to exclusion of certain ‘‘(B) a plan under which amounts are con- (e) CONFORMING AMENDMENTS.— employees) is amended by inserting ‘‘, deter- tributed by an individual’s employer for an (1) Section 408A(e) is amended by adding mined without regard to the reference to annuity contract described in section 403(b). after the first sentence the following new subchapter D in the last sentence thereof’’ ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elec- sentence: ‘‘Such term includes a rollover after ‘‘section 861(a)(3)’’. tive deferral’ means any elective deferral de- contribution described in section (b) EFFECTIVE DATE.—The amendment scribed in subparagraph (A) or (C) of section 402A(c)(3)(A).’’. made by subsection (a) shall apply to plan 402(g)(3).’’. (2) The table of sections for subpart A of years beginning after December 31, 2001. (b) EXCESS DEFERRALS.—Section 402(g) (re- part I of subchapter D of chapter 1 is amend- lating to limitation on exclusion for elective SEC. 211. REFUNDABLE CREDIT TO CERTAIN IN- ed by inserting after the item relating to DIVIDUALS FOR ELECTIVE DEFER- deferrals) is amended— section 402 the following new item: (1) by adding at the end of paragraph (1)(A) RALS AND IRA CONTRIBUTIONS. (as added by section 201(d)(1)) the following ‘‘Sec. 402A. Optional treatment of elective (a) IN GENERAL.—Subpart C of part IV of new sentence: ‘‘The preceding sentence shall deferrals as plus contribu- subchapter A of chapter 1 of the Internal not apply to so much of such excess as does tions.’’. Revenue Code of 1986 (relating to refundable not exceed the designated plus contributions (f) EFFECTIVE DATE.—The amendments credits) is amended by redesignating section of the individual for the taxable year.’’; and made by this section shall apply to taxable 35 as section 36 and by inserting after section (2) by inserting ‘‘(or would be included but years beginning after December 31, 2001. 34 the following new section: for the last sentence thereof)’’ after ‘‘para- SEC. 209. AVAILABILITY OF QUALIFIED PLANS TO ‘‘SEC. 35. ELECTIVE DEFERRALS AND IRA CON- graph (1)’’ in paragraph (2)(A). SELF-EMPLOYED INDIVIDUALS WHO TRIBUTIONS BY CERTAIN INDIVID- (c) ROLLOVERS.—Subparagraph (B) of sec- ARE EXEMPT FROM THE SELF-EM- UALS. tion 402(c)(8) is amended by adding at the end PLOYMENT TAX BY REASON OF the following: THEIR RELIGIOUS BELIEFS. ‘‘(a) ALLOWANCE OF CREDIT.—In the case of ‘‘If any portion of an eligible rollover dis- (a) IN GENERAL.—Subparagraph (A) of sec- an eligible individual, there shall be allowed tribution is attributable to payments or dis- tion 401(c)(2) (defining earned income) is as a credit against the tax imposed by this tributions from a designated plus account (as amended by adding at the end thereof the subtitle for the taxable year an amount defined in section 402A), an eligible retire- following new sentence: ‘‘For purposes of equal to the applicable percentage of so ment plan with respect to such portion shall this part only (other than sections 419 and much of the qualified retirement savings include only another designated plus account 419A), this subparagraph shall be applied as contributions of the eligible individual for and a Roth IRA.’’. if the term ‘trade or business’ for purposes of the taxable year as do not exceed $2,000. (d) REPORTING REQUIREMENTS.— section 1402 included service described in sec- ‘‘(b) APPLICABLE PERCENTAGE.—For pur- (1) W–2 INFORMATION.—Section 6051(a)(8) is tion 1402(c)(6).’’. poses of this section, the applicable percent- amended by inserting ‘‘, including the (b) SIMPLE RETIREMENT ACCOUNTS.—Clause age is the percentage determined in accord- amount of designated plus contributions (as (ii) of section 408(p)(6)(A) (defining self-em- ance with the following table:

Adjusted Gross Income Applicable percent- Joint return Head of a household All other cases age Over Not over Over Not over Over Not over

$0 $25,000 $0 $18,750 $0 $12,500 50 25,000 35,000 18,750 26,250 12,500 17,500 45 35,000 45,000 26,250 33,750 17,500 22,500 35 45,000 55,000 33,750 41,250 22,500 27,500 25 55,000 75,000 41,250 56,250 27,500 37,500 15 75,000 ...... 56,250 ...... 37,500 ...... 0

‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of ‘‘(i) any distribution from a qualified re- ‘‘(iii) any distribution before January 1, this section— tirement plan (as defined in section 4974(c)), 2002. ‘‘(1) IN GENERAL.—The term ‘eligible indi- or from an eligible deferred compensation ‘‘(D) TREATMENT OF DISTRIBUTIONS RE- vidual’ means any individual if— plan (as defined in section 457(b)), which is CEIVED BY SPOUSE OF INDIVIDUAL.—For pur- ‘‘(A) such individual has attained the age includible in gross income, or poses of determining whether an individual of 18 as of the close of the taxable year, and ‘‘(ii) any distribution from a Roth IRA is an eligible individual for any taxable year, ‘‘(B) the compensation (as defined in sec- which is not a qualified rollover contribution any distribution received by the spouse of tion 219(f)(1)) includible in the gross income (as defined in section 408A(e)) to a Roth IRA. such individual shall be treated as received by such individual if such individual and of the individual (or, in the case of a joint re- ‘‘(B) TESTING PERIOD.—For purposes of sub- spouse file a joint return for such taxable turn, of the taxpayer) for such taxable year paragraph (A), the testing period, with re- year and for the taxable year during which is at least $5,000. spect to a taxable year, is the period which the spouse receives the distribution. ‘‘(2) DEPENDENTS AND FULL-TIME STUDENTS includes— NOT ELIGIBLE.—The term ‘eligible individual’ ‘‘(i) such taxable year, ‘‘(d) QUALIFIED RETIREMENT SAVINGS CON- shall not include— ‘‘(ii) the preceding taxable year, and TRIBUTIONS.—For purposes of this section, ‘‘(A) any individual with respect to whom ‘‘(iii) the period after such taxable year the term ‘qualified retirement savings con- a deduction under section 151 is allowable to and before the due date (without extensions) tributions’ means the sum of— another taxpayer for a taxable year begin- for filing the return of tax for such taxable ‘‘(1) the amount of the qualified retirement ning in the calendar year in which such indi- year. contributions (as defined in section 219(e)) vidual’s taxable year begins, and made by the eligible individual, ‘‘(C) EXCEPTED DISTRIBUTIONS.—There shall ‘‘(B) any individual who is a student (as de- ‘‘(2) the amount of— not be taken into account under subpara- fined in section 151(c)(4)). ‘‘(A) any elective deferrals (as defined in graph (A)— ‘‘(3) INDIVIDUALS RECEIVING CERTAIN RETIRE- section 402(g)(3)) of such individual, and MENT DISTRIBUTIONS NOT ELIGIBLE.— ‘‘(i) any distribution referred to in section ‘‘(B) any elective deferral of compensation ‘‘(A) IN GENERAL.—The term ‘eligible indi- 72(p), 401(k)(8), 401(m)(6), 402(g)(2), 404(k), or by such individual under an eligible deferred vidual’ shall not include, with respect to a 408(d)(4), compensation plan (as defined in section taxable year, any individual who received ‘‘(ii) any distribution to which section 457(b)) of an eligible employer described in during the testing period— 408A(d)(3) applies, and section 457(e)(1)(A), and

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00065 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.026 pfrm02 PsN: H02PT1 H1800 CONGRESSIONAL RECORD — HOUSE May 2, 2001 ‘‘(3) the amount of voluntary employee qualified retirement savings contribution ‘‘(A) $600 in the case of taxable years begin- contributions by such individual to any shall not fail to be included in determining ning in 2002, 2003, or 2004, and qualified retirement plan (as defined in sec- the investment in the contract for purposes ‘‘(B) $1,000 in the case of taxable years be- tion 4974(c)). of section 72 by reason of the credit under ginning in 2005, 2006, or 2007. ‘‘(e) ADJUSTED GROSS INCOME.—For pur- this section. ‘‘(2) APPLICABLE PERCENTAGE.—The appli- RANSITIONAL RULES.—In the case of poses of this section, adjusted gross income ‘‘(g) T cable percentage shall be determined under taxable years beginning before January 1, shall be determined without regard to sec- the following table (in lieu of the table in tions 911, 931, and 933. 2008— subsection (b)): ‘‘(f) INVESTMENT IN THE CONTRACT.—Not- ‘‘(1) CONTRIBUTION LIMIT.—Subsection (a) withstanding any other provision of law, a shall be applied by substituting for ‘$2,000’—

Adjusted Gross Income Applicable percent- Joint return Head of a household All other cases age Over Not over Over Not over Over Not over

$0 $20,000 $0 $15,000 $0 $10,000 50 20,000 25,000 15,000 18,750 10,000 12,500 45 25,000 30,000 18,750 22,500 12,500 15,000 35 30,000 35,000 22,500 26,250 15,000 17,500 25 35,000 40,000 26,250 30,000 17,500 20,000 15 40,000 ...... 30,000 ...... 20,000 ...... 0.’’

(b) CONFORMING AMENDMENTS.— ‘‘(A) IN GENERAL.—The term ‘qualified and by adding at the end the following new (1) Paragraph (2) of section 1324(b) of title startup costs’ means any ordinary and nec- paragraph: 31, United States Code, is amended by insert- essary expenses of an eligible employer ‘‘(14) in the case of an eligible employer (as ing before the period ‘‘, or from section 35 of which are paid or incurred in connection defined in section 45E(c)), the small em- such Code’’. with— ployer pension plan startup cost credit deter- (2) The table of sections for subpart C of ‘‘(i) the establishment or administration of mined under section 45E(a).’’ part IV of subchapter A of chapter 1 of such an eligible employer plan, or (c) CONFORMING AMENDMENTS.— Code is amended by striking the last item ‘‘(ii) the retirement-related education of (1) Section 39(d) of such Code is amended and inserting the following new items: employees with respect to such plan. by adding at the end the following new para- ‘‘(B) PLAN MUST HAVE AT LEAST 2 PARTICI- graph: ‘‘Sec. 35. Elective deferrals and IRA con- PANTS.—Such term shall not include any ex- ‘‘(10) NO CARRYBACK OF SMALL EMPLOYER tributions by certain individ- pense in connection with a plan that does uals. PENSION PLAN STARTUP COST CREDIT BEFORE not have at least 2 individuals who are eligi- JANUARY 1, 2002.—No portion of the unused ‘‘Sec. 36. Overpayments of tax.’’ ble to participate. business credit for any taxable year which is (c) EFFECTIVE DATE.—The amendments ‘‘(C) PLAN MUST BE ESTABLISHED BEFORE attributable to the small employer pension made by this section shall apply to taxable JANUARY 1, 2010.—Such term shall not include plan startup cost credit determined under years beginning after December 31, 2001. any expense in connection with a plan estab- section 45E may be carried back to a taxable SEC. 212. CREDIT FOR PENSION PLAN STARTUP lished after December 31, 2009. year beginning before January 1, 2002.’’ COSTS OF SMALL EMPLOYERS. ‘‘(2) ELIGIBLE EMPLOYER PLAN.—The term (2) Subsection (c) of section 196 of such (a) IN GENERAL.—Subpart D of part IV of ‘eligible employer plan’ means a qualified Code is amended by striking ‘‘and’’ at the subchapter A of chapter 1 of the Internal employer plan within the meaning of section end of paragraph (8), by striking the period Revenue Code of 1986 (relating to business re- 4972(d), or a qualified payroll deduction ar- at the end of paragraph (9) and inserting ‘‘, lated credits) is amended by adding at the rangement within the meaning of section and’’, and by adding at the end the following end the following new section: 408(q)(1) (whether or not an election is made new paragraph: ‘‘SEC. 45E. SMALL EMPLOYER PENSION PLAN under section 408(q)(2)). A qualified payroll ‘‘(10) the small employer pension plan STARTUP COSTS. deduction arrangement shall be treated as an startup cost credit determined under section ‘‘(a) GENERAL RULE.—For purposes of sec- eligible employer plan only if all employees 45E(a).’’ tion 38, in the case of an eligible employer, of the employer who— (3) The table of sections for subpart D of the small employer pension plan startup cost ‘‘(A) have been employed for 90 days, and part IV of subchapter A of chapter 1 of such credit determined under this section for any ‘‘(B) are not described in subparagraph (A) Code is amended by adding at the end the taxable year is an amount equal to 50 per- or (C) of section 410(b)(3), following new item: cent of the qualified startup costs paid or in- are eligible to make the election under sec- ‘‘Sec. 45E. Small employer pension plan curred by the taxpayer during the taxable tion 408(q)(1)(A). startup costs.’’ year. ‘‘(3) FIRST CREDIT YEAR.—The term ‘first ‘‘(b) DOLLAR LIMITATION.—The amount of credit year’ means— (d) EFFECTIVE DATE.—The amendments the credit determined under this section for ‘‘(A) the taxable year which includes the made by this section shall apply to costs any taxable year shall not exceed— date that the eligible employer plan to which paid or incurred in taxable years beginning ‘‘(1) $1,000 for the first credit year, such costs relate becomes effective, or after December 31, 2001. ‘‘(2) $500 for each of the 2 taxable years im- ‘‘(B) at the election of the eligible em- SEC. 213. CREDIT FOR QUALIFIED PENSION PLAN mediately following the first credit year, and ployer, the taxable year preceding the tax- CONTRIBUTIONS OF SMALL EM- ‘‘(3) zero for any other taxable year. able year referred to in subparagraph (A). PLOYERS. ‘‘(c) ELIGIBLE EMPLOYER.—For purposes of ‘‘(e) SPECIAL RULES.—For purposes of this (a) IN GENERAL.—Subpart D of part IV of this section— section— subchapter A of chapter 1 of the Internal ‘‘(1) IN GENERAL.—The term ‘eligible em- ‘‘(1) AGGREGATION RULES.—All persons Revenue Code of 1986 (relating to business re- ployer’ has the meaning given such term by treated as a single employer under sub- lated credits) is amended by adding at the section 408(p)(2)(C)(i). section (a) or (b) of section 52, or subsection end the following new section: ‘‘(2) EMPLOYERS MAINTAINING QUALIFIED (n) or (o) of section 414, shall be treated as ‘‘SEC. 45F. SMALL EMPLOYER PENSION PLAN PLANS DURING 1998 NOT ELIGIBLE.—Such term one person. All eligible employer plans shall CONTRIBUTIONS. shall not include an employer if such em- be treated as 1 eligible employer plan. ‘‘(a) GENERAL RULE.—For purposes of sec- ployer (or any predecessor employer) main- ‘‘(2) DISALLOWANCE OF DEDUCTION.—No de- tion 38, in the case of an eligible employer, tained a qualified plan (as defined in section duction shall be allowed for that portion of the small employer pension plan contribu- 408(p)(2)(D)(ii)) with respect to which con- the qualified startup costs paid or incurred tion credit determined under this section for tributions were made, or benefits were ac- for the taxable year which is equal to the any taxable year is an amount equal to 50 crued, for service in 1998. If only individuals credit determined under subsection (a). percent of the amount which would (but for other than employees described in subpara- ‘‘(3) ELECTION NOT TO CLAIM CREDIT.—This subsection (f)(1)) be allowed as a deduction graph (A) or (B) of section 410(b)(3) are eligi- section shall not apply to a taxpayer for any under section 404 for such taxable year for ble to participate in the qualified employer taxable year if such taxpayer elects to have qualified employer contributions made to plan referred to in subsection (d)(1), then the this section not apply for such taxable any qualified retirement plan on behalf of preceding sentence shall be applied without year.’’ any nonhighly compensated employee. regard to any qualified plan in which only (b) CREDIT ALLOWED AS PART OF GENERAL ‘‘(b) CREDIT LIMITED TO 3 Years.—The cred- employees so described are eligible to par- BUSINESS CREDIT.—Section 38(b) of such Code it allowable by this section shall be allowed ticipate. (defining current year business credit) is only with respect to the period of 3 taxable ‘‘(d) OTHER DEFINITIONS.—For purposes of amended by striking ‘‘plus’’ at the end of years beginning with the taxable year in this section— paragraph (12), by striking the period at the which the qualified retirement plan becomes ‘‘(1) QUALIFIED STARTUP COSTS.— end of paragraph (13) and inserting ‘‘, plus’’, effective.

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‘‘(c) QUALIFIED EMPLOYER CONTRIBUTION.— ‘‘(i) in the case of a profit-sharing or stock and’’, and by adding at the end the following For purposes of this section— bonus plan, amounts are distributable only new paragraph: ‘‘(1) DEFINED CONTRIBUTION PLANS.—In the as provided in section 401(k)(2)(B), and ‘‘(11) the small employer pension plan con- case of a defined contribution plan, the term ‘‘(ii) in the case of a pension plan, amounts tribution credit determined under section ‘qualified employer contribution’ means the are distributable subject to the limitations 45F(a).’’ amount of nonelective and matching con- applicable to other distributions from the (3) The table of sections for subpart D of tributions to the plan made by the employer plan. part IV of subchapter A of chapter 1 of such on behalf of any nonhighly compensated em- ‘‘(B) DISTRIBUTIONS WITHIN 5 YEARS AFTER Code is amended by adding at the end the ployee to the extent such amount does not SEPARATION, ETC.—In no event shall a plan following new item: exceed 3 percent of such employee’s com- meet the requirements of this paragraph un- ‘‘Sec. 45F. Small employer pension plan con- pensation from the employer for the year. less, under the plan, amounts distributed— tributions.’’ ‘‘(2) DEFINED BENEFIT PLANS.—In the case ‘‘(i) after separation from service or sever- of a defined benefit plan, the term ‘qualified ance from employment, and (d) EFFECTIVE DATE.—The amendments employer contribution’ means the amount of ‘‘(ii) within 5 years after the date of the made by this section shall apply to contribu- employer contributions to the plan made on earliest employer contribution to the plan, tions paid or incurred in taxable years begin- behalf of any nonhighly compensated em- may be distributed only in a direct trustee- ning after December 31, 2001. ployee to the extent that the accrued benefit to-trustee transfer to a plan having the same TITLE III—ENHANCING FAIRNESS FOR of such employee derived from such con- distribution restrictions as the distributing WOMEN tributions for the year do not exceed the plan. SEC. 301. CATCH-UP CONTRIBUTIONS FOR INDI- equivalent (as determined under regulations ‘‘(e) OTHER DEFINITIONS.—For purposes of VIDUALS AGE 50 OR OVER. prescribed by the Secretary and without re- this section— (a) IN GENERAL.—Section 414 (relating to gard to contributions and benefits under the ‘‘(1) ELIGIBLE EMPLOYER.—The term ‘eligi- definitions and special rules) is amended by Social Security Act) of 3 percent of such em- ble employer’ has the meaning given such adding at the end the following new sub- ployee’s compensation from the employer for term by section 408(p)(2)(C)(i). section: the year. ‘‘(2) NONHIGHLY COMPENSATED EMPLOYEES.— ‘‘(v) CATCH-UP CONTRIBUTIONS FOR INDIVID- ‘‘(d) QUALIFIED RETIREMENT PLAN.— The term ‘highly compensated employee’ has UALS AGE 50 OR OVER.— ‘‘(1) IN GENERAL.—The term ‘qualified re- the meaning given such term by section ‘‘(1) IN GENERAL.—An applicable employer tirement plan’ means any plan described in 414(q) (determined without regard to section plan shall not be treated as failing to meet section 401(a) which includes a trust exempt 414(q)(1)(B)(ii)). any requirement of this title solely because from tax under section 501(a) if the plan ‘‘(f) SPECIAL RULES.— the plan permits an eligible participant to meets— ‘‘(1) DISALLOWANCE OF DEDUCTION.—No de- make additional elective deferrals in any ‘‘(A) the contribution requirements of duction shall be allowed for that portion of plan year. paragraph (2), the qualified employer contributions paid or ‘‘(2) LIMITATION ON AMOUNT OF ADDITIONAL ‘‘(B) the vesting requirements of paragraph incurred for the taxable year which is equal DEFERRALS.—A plan shall not permit addi- (3), and to the credit determined under subsection tional elective deferrals under paragraph (1) ‘‘(C) the distributions requirements of (a). for any year in an amount greater than the paragraph (4). ‘‘(2) ELECTION NOT TO CLAIM CREDIT.—This lesser of— ‘‘(2) CONTRIBUTION REQUIREMENTS.— section shall not apply to a taxpayer for any ‘‘(A) $5,000, or ‘‘(A) IN GENERAL.—The requirements of taxable year if such taxpayer elects to have ‘‘(B) the excess (if any) of— this paragraph are met if, under the plan— this section not apply for such taxable year. ‘‘(i) the participant’s compensation for the ‘‘(i) the employer is required to make non- ‘‘(g) RECAPTURE OF CREDIT ON FORFEITED year, over elective contributions of at least 1 percent of CONTRIBUTIONS.—If any accrued benefit ‘‘(ii) any other elective deferrals of the compensation (or the equivalent thereof in which is forfeitable by reason of subsection participant for such year which are made the case of a defined benefit plan) for each (d)(3) is forfeited, the employer’s tax imposed without regard to this subsection. nonhighly compensated employee who is eli- by this chapter for the taxable year in which ‘‘(3) TREATMENT OF CONTRIBUTIONS.—In the gible to participate in the plan, and the forfeiture occurs shall be increased by 35 case of any contribution to a plan under ‘‘(ii) except in the case of a defined benefit percent of the employer contributions from paragraph (1), such contribution shall not, plan, allocations of nonelective employer which such benefit is derived to the extent with respect to the year in which the con- contributions are either in equal dollar such contributions were taken into account tribution is made— amounts for all employees covered by the in determining the credit under this section. ‘‘(A) be subject to any otherwise applicable plan or bear a uniform relationship to the ‘‘(h) REGULATIONS.—The Secretary shall limitation contained in section 402(g), total compensation, or the basic or regular prescribe such regulations as may be appro- 402(h)(2), 404(a), 404(h), 408(p)(2)(A)(ii), 415, or rate of compensation, of the employees cov- priate to carry out the purposes of this sec- 457, or ered by the plan. tion, including regulations to prevent the ‘‘(B) be taken into account in applying ‘‘(B) COMPENSATION LIMITATION.—The com- abuse of the purposes of this section through such limitations to other contributions or pensation taken into account under subpara- the use of multiple plans. benefits under such plan or any other such graph (A) for any year shall not exceed the ‘‘(i) TERMINATION.—This section shall not plan. limitation in effect for such year under sec- apply to any plan established after December ‘‘(4) APPLICATION OF NONDISCRIMINATION tion 401(a)(17). 31, 2009.’’ RULES.— ‘‘(3) VESTING REQUIREMENTS.—The require- (b) CREDIT ALLOWED AS PART OF GENERAL ‘‘(A) IN GENERAL.—An applicable employer ments of this paragraph are met if the plan BUSINESS CREDIT.—Section 38(b) of such Code plan shall not be treated as failing to meet satisfies the requirements of subparagraph (defining current year business credit) is the nondiscrimination requirements under (A) or (B). amended by striking ‘‘plus’’ at the end of section 401(a)(4) with respect to benefits, ‘‘(A) 3-YEAR VESTING.—A plan satisfies the paragraph (13), by striking the period at the rights, and features if the plan allows all eli- requirements of this subparagraph if an em- end of paragraph (14) and inserting ‘‘, plus’’, gible participants to make the same election ployee who has completed at least 3 years of and by adding at the end the following new with respect to the additional elective defer- service has a nonforfeitable right to 100 per- paragraph: rals under this subsection. cent of the employee’s accrued benefit de- ‘‘(15) in the case of an eligible employer (as ‘‘(B) AGGREGATION.—For purposes of sub- rived from employer contributions. defined in section 45F(e)), the small em- paragraph (A), all plans maintained by em- ‘‘(B) 5-YEAR GRADED VESTING.—A plan satis- ployer pension plan contribution credit de- ployers who are treated as a single employer fies the requirements of this subparagraph if termined under section 45F(a).’’ under subsection (b), (c), (m), or (o) of sec- an employee has a nonforfeitable right to a (c) CONFORMING AMENDMENTS.— tion 414 shall be treated as 1 plan. percentage of the employee’s accrued benefit (1) Section 39(d) of such Code is amended ‘‘(5) ELIGIBLE PARTICIPANT.—For purposes derived from employer contributions deter- by adding at the end the following new para- of this subsection, the term ‘eligible partici- mined under the following table: graph: pant’ means, with respect to any plan year, The nonforfeitable ‘‘(11) NO CARRYBACK OF SMALL EMPLOYER a participant in a plan— ‘‘Years of service: percentage is: PENSION PLAN CONTRIBUTION CREDIT BEFORE ‘‘(A) who has attained the age of 50 before JANUARY 1, 2002.—No portion of the unused the close of the plan year, and 1 ...... 20 business credit for any taxable year which is ‘‘(B) with respect to whom no other elec- 2 ...... 40 attributable to the small employer pension tive deferrals may (without regard to this 3 ...... 60 plan contribution credit determined under subsection) be made to the plan for the plan 4 ...... 80 section 45F may be carried back to a taxable year by reason of the application of any limi- 5 ...... 100. year beginning before January 1, 2002.’’ tation or other restriction described in para- ‘‘(4) DISTRIBUTION REQUIREMENTS.— (2) Subsection (c) of section 196 of such graph (3) or comparable limitation contained ‘‘(A) IN GENERAL.—Except as provided in Code is amended by striking ‘‘and’’ at the in the terms of the plan. subparagraph (B), the requirements of this end of paragraph (9), by striking the period ‘‘(6) OTHER DEFINITIONS AND RULES.—For paragraph are met if, under the plan— at the end of paragraph (10) and inserting ‘‘, purposes of this subsection—

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00067 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.026 pfrm02 PsN: H02PT1 H1802 CONGRESSIONAL RECORD — HOUSE May 2, 2001

‘‘(A) APPLICABLE EMPLOYER PLAN.—The pensation determined under section (B) EXCLUSION ALLOWANCE.—Effective for term ‘applicable employer plan’ means— 403(b)(3).’’. limitation years beginning in 2000, in the ‘‘(i) an employees’ trust described in sec- (F) Section 415(c) is amended by striking case of any annuity contract described in tion 401(a) which is exempt from tax under paragraph (4). section 403(b) of the Internal Revenue Code section 501(a), (G) Section 415(c)(7) is amended to read as of 1986, the amount of the contribution dis- ‘‘(ii) a plan under which amounts are con- follows: qualified by reason of section 415(g) of such tributed by an individual’s employer for an ‘‘(7) CERTAIN CONTRIBUTIONS BY CHURCH Code shall reduce the exclusion allowance as annuity contract described in section 403(b), PLANS NOT TREATED AS EXCEEDING LIMIT.— provided in section 403(b)(2) of such Code. ‘‘(iii) an eligible deferred compensation ‘‘(A) IN GENERAL.—Notwithstanding any (3) MODIFICATION OF 403(b) EXCLUSION AL- plan under section 457 of an eligible em- other provision of this subsection, at the LOWANCE TO CONFORM TO 415 MODIFICATION.— ployer as defined in section 457(e)(1)(A), and election of a participant who is an employee The Secretary of the Treasury shall modify ‘‘(iv) an arrangement meeting the require- of a church or a convention or association of the regulations regarding the exclusion al- ments of section 408 (k) or (p). churches, including an organization de- lowance under section 403(b)(2) of the Inter- ‘‘(B) ELECTIVE DEFERRAL.—The term ‘elec- scribed in section 414(e)(3)(B)(ii), contribu- nal Revenue Code of 1986 to render void the tive deferral’ has the meaning given such tions and other additions for an annuity con- requirement that contributions to a defined term by subsection (u)(2)(C). tract or retirement income account de- benefit pension plan be treated as previously ‘‘(C) EXCEPTION FOR SECTION 457 PLANS.— scribed in section 403(b) with respect to such excluded amounts for purposes of the exclu- This subsection shall not apply to an appli- participant, when expressed as an annual ad- sion allowance. For taxable years beginning cable employer plan described in subpara- dition to such participant’s account, shall be after December 31, 1999, such regulations graph (A)(iii) for any year to which section treated as not exceeding the limitation of shall be applied as if such requirement were 457(b)(3) applies. paragraph (1) if such annual addition is not void. ‘‘(D) COST-OF-LIVING ADJUSTMENT.—In the in excess of $10,000. (c) DEFERRED COMPENSATION PLANS OF case of a year beginning after December 31, ‘‘(B) $40,000 AGGREGATE LIMITATION.—The STATE AND LOCAL GOVERNMENTS AND TAX-EX- 2006, the Secretary shall adjust annually the total amount of additions with respect to EMPT ORGANIZATIONS.— $5,000 amount in paragraph (2)(A) for in- any participant which may be taken into ac- (1) IN GENERAL.—Subparagraph (B) of sec- creases in the cost-of-living at the same time count for purposes of this subparagraph for tion 457(b)(2) (relating to salary limitation and in the same manner as adjustments all years may not exceed $40,000. on eligible deferred compensation plans) is NNUAL ADDITION 1 under section 415(d); except that the base pe- ‘‘(C) A .—For purposes of amended by striking ‘‘33 ⁄3 percent’’ and in- riod taken into account shall be the calendar this paragraph, the term ‘annual addition’ serting ‘‘100 percent’’. quarter beginning July 1, 2005, and any in- has the meaning given such term by para- (2) EFFECTIVE DATE.—The amendment crease under this subparagraph which is not graph (2).’’. made by this subsection shall apply to years a multiple of $500 shall be rounded to the (H) Subparagraph (B) of section 402(g)(7) beginning after December 31, 2001. next lower multiple of $500.’’. (as redesignated by section 201) is amended SEC. 303. FASTER VESTING OF CERTAIN EM- by inserting before the period at the end the (b) EFFECTIVE DATE.—The amendment PLOYER MATCHING CONTRIBU- following: ‘‘(as in effect before the enact- made by this section shall apply to contribu- TIONS. ment of the Comprehensive Retirement Se- tions in taxable years beginning after De- (a) AMENDMENT OF INTERNAL REVENUE curity and Pension Reform Act of 2001)’’. cember 31, 2001. CODE.—Section 411(a) (relating to minimum (I) Section 664(g) is amended— vesting standards) is amended— SEC. 302. EQUITABLE TREATMENT FOR CON- (i) in paragraph (3)(E) by striking ‘‘limita- (1) in paragraph (2) in the matter preceding TRIBUTIONS OF EMPLOYEES TO DE- tions under section 415(c)’’ and inserting ‘‘ap- FINED CONTRIBUTION PLANS. subparagraph (A), by striking ‘‘A plan’’ and plicable limitation under paragraph (7)’’, and inserting ‘‘Except as provided in paragraph (a) EQUITABLE TREATMENT.— (ii) by adding at the end the following new (12), a plan’’; and (1) IN GENERAL.—Subparagraph (B) of sec- paragraph: (2) by adding at the end the following: tion 415(c)(1) (relating to limitation for de- ‘‘(7) APPLICABLE LIMITATION.— ‘‘(12) FASTER VESTING FOR MATCHING CON- fined contribution plans) is amended by ‘‘(A) IN GENERAL.—For purposes of para- TRIBUTIONS.—In the case of matching con- striking ‘‘25 percent’’ and inserting ‘‘100 per- graph (3)(E), the applicable limitation under tributions (as defined in section cent’’. this paragraph with respect to a participant 401(m)(4)(A)), paragraph (2) shall be applied— (2) APPLICATION TO SECTION 403(b).—Section is an amount equal to the lesser of— ‘‘(A) by substituting ‘3 years’ for ‘5 years’ 403(b) is amended— ‘‘(i) $30,000, or in subparagraph (A), and (A) by striking ‘‘the exclusion allowance ‘‘(ii) 25 percent of the participant’s com- ‘‘(B) by substituting the following table for for such taxable year’’ in paragraph (1) and pensation (as defined in section 415(c)(3)). the table contained in subparagraph (B): inserting ‘‘the applicable limit under section ‘‘(B) COST-OF-LIVING ADJUSTMENT.—The 415’’; The nonforfeitable Secretary shall adjust annually the $30,000 ‘‘Years of service: percentage is: (B) by striking paragraph (2); and amount under subparagraph (A)(i) at the 2 ...... 20 (C) by inserting ‘‘or any amount received same time and in the same manner as under 3 ...... 40 by a former employee after the fifth taxable section 415(d), except that the base period 4 ...... 60 year following the taxable year in which shall be the calendar quarter beginning Octo- 5 ...... 80 such employee was terminated’’ before the ber 1, 1993, and any increase under this sub- 6 ...... 100.’’. period at the end of the second sentence of paragraph which is not a multiple of $5,000 (b) AMENDMENT OF ERISA.—Section 203(a) paragraph (3). shall be rounded to the next lowest multiple of the Employee Retirement Income Secu- (3) CONFORMING AMENDMENTS.— of $5,000.’’. rity Act of 1974 (29 U.S.C. 1053(a)) is amend- (A) Subsection (f) of section 72 is amended (4) EFFECTIVE DATE.—The amendments ed— by striking ‘‘section 403(b)(2)(D)(iii))’’ and in- made by this subsection shall apply to years (1) in paragraph (2), by striking ‘‘A plan’’ serting ‘‘section 403(b)(2)(D)(iii), as in effect beginning after December 31, 2001. and inserting ‘‘Except as provided in para- before the enactment of the Comprehensive (b) SPECIAL RULES FOR SECTIONS 403(b) AND graph (4), a plan’’, and Retirement Security and Pension Reform 408.— (2) by adding at the end the following: Act of 2001)’’. (1) IN GENERAL.—Subsection (k) of section ‘‘(4) In the case of matching contributions (B) Section 404(a)(10)(B) is amended by 415 is amended by adding at the end the fol- (as defined in section 401(m)(4)(A) of the In- striking ‘‘, the exclusion allowance under lowing new paragraph: ternal Revenue Code of 1986), paragraph (2) section 403(b)(2),’’. ‘‘(4) SPECIAL RULES FOR SECTIONS 403(B) AND shall be applied— (C) Section 404(j) is amended by adding at 408.—For purposes of this section, any annu- ‘‘(A) by substituting ‘3 years’ for ‘5 years’ the end the following new paragraph: ity contract described in section 403(b) for in subparagraph (A), and ‘‘(3) SPECIAL RULE FOR MONEY PURCHASE the benefit of a participant shall be treated ‘‘(B) by substituting the following table for PLANS.—For purposes of paragraph (1)(B), in as a defined contribution plan maintained by the table contained in subparagraph (B): the case of a defined contribution plan which each employer with respect to which the par- The nonforfeitable is subject to the funding standards of section ticipant has the control required under sub- ‘‘Years of service: percentage is: 412, section 415(c)(1)(B) shall be applied by section (b) or (c) of section 414 (as modified 2 ...... 20 substituting ‘25 percent’ for ‘100 percent’.’’. by subsection (h)). For purposes of this sec- 3 ...... 40 (D) Section 415(a)(2) is amended by striking tion, any contribution by an employer to a 4 ...... 60 ‘‘, and the amount of the contribution for simplified employee pension plan for an indi- 5 ...... 80 such portion shall reduce the exclusion al- vidual for a taxable year shall be treated as 6 ...... 100.’’. lowance as provided in section 403(b)(2)’’. an employer contribution to a defined con- (c) EFFECTIVE DATES.— (E) Section 415(c)(3) is amended by adding tribution plan for such individual for such (1) IN GENERAL.—Except as provided in at the end the following new subparagraph: year.’’. paragraph (2), the amendments made by this ‘‘(E) ANNUITY CONTRACTS.—In the case of (2) EFFECTIVE DATE.— section shall apply to contributions for plan an annuity contract described in section (A) IN GENERAL.—The amendment made by years beginning after December 31, 2001. 403(b), the term ‘participant’s compensation’ paragraph (1) shall apply to limitation years (2) COLLECTIVE BARGAINING AGREEMENTS.— means the participant’s includible com- beginning after December 31, 1999. In the case of a plan maintained pursuant to

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00068 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.027 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1803 one or more collective bargaining agree- (II) the required beginning date (within the tion with a trade or business of the em- ments between employee representatives and meaning of section 401(a)(9)(C) of the Inter- ployer.’’ one or more employers ratified by the date of nal Revenue Code of 1986) of the employee. (b) EXCLUSION OF CERTAIN CONTRIBU- the enactment of this Act, the amendments (c) REDUCTION IN EXCISE TAX.— TIONS.—Section 4972(c)(6) is amended by add- made by this section shall not apply to con- (1) IN GENERAL.—Subsection (a) of section ing at the end the following new sentence: tributions on behalf of employees covered by 4974 is amended by striking ‘‘50 percent’’ and ‘‘Subparagraph (C) shall not apply to con- any such agreement for plan years beginning inserting ‘‘10 percent’’. tributions made on behalf of the employer or before the earlier of— (2) EFFECTIVE DATE.—The amendment a member of the employer’s family (as de- (A) the later of— made by this subsection shall apply to years fined in section 447(e)(1)).’’. (i) the date on which the last of such col- beginning after December 31, 2001. (c) NO INFERENCE.—Nothing in the amend- lective bargaining agreements terminates SEC. 305. CLARIFICATION OF TAX TREATMENT OF ments made by this section shall be con- (determined without regard to any extension DIVISION OF SECTION 457 PLAN BEN- strued to infer the proper treatment of non- thereof on or after such date of the enact- EFITS UPON DIVORCE. deductible contributions under the laws in ment); or (a) IN GENERAL.—Section 414(p)(11) (relat- effect before such amendments. (ii) January 1, 2002; or ing to application of rules to governmental (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable (B) January 1, 2006. and church plans) is amended— years beginning after December 31, 2001. (3) SERVICE REQUIRED.—With respect to any (1) by inserting ‘‘or an eligible deferred plan, the amendments made by this section compensation plan (within the meaning of TITLE IV—INCREASING PORTABILITY FOR shall not apply to any employee before the section 457(b))’’ after ‘‘subsection (e))’’; and PARTICIPANTS date that such employee has 1 hour of serv- (2) in the heading, by striking ‘‘GOVERN- SEC. 401. ROLLOVERS ALLOWED AMONG VAR- ice under such plan in any plan year to MENTAL AND CHURCH PLANS’’ and inserting IOUS TYPES OF PLANS. which the amendments made by this section ‘‘CERTAIN OTHER PLANS’’. (a) ROLLOVERS FROM AND TO SECTION 457 apply. (b) WAIVER OF CERTAIN DISTRIBUTION RE- PLANS.— QUIREMENTS.—Paragraph (10) of section 414(p) (1) ROLLOVERS FROM SECTION 457 PLANS.— SEC. 304. MODIFICATIONS TO MINIMUM DIS- is amended by striking ‘‘and section 409(d)’’ (A) IN GENERAL.—Section 457(e) (relating to TRIBUTION RULES. and inserting ‘‘section 409(d), and section other definitions and special rules) is amend- (a) LIFE EXPECTANCY TABLES.—The Sec- 457(d)’’. ed by adding at the end the following: retary of the Treasury shall modify the life (c) TAX TREATMENT OF PAYMENTS FROM A ‘‘(16) ROLLOVER AMOUNTS.— expectancy tables under the regulations re- SECTION 457 PLAN.—Subsection (p) of section ‘‘(A) GENERAL RULE.—In the case of an eli- lating to minimum distribution require- 414 is amended by redesignating paragraph gible deferred compensation plan established ments under sections 401(a)(9), 408(a)(6) and (12) as paragraph (13) and inserting after and maintained by an employer described in (b)(3), 403(b)(10), and 457(d)(2) of the Internal paragraph (11) the following new paragraph: subsection (e)(1)(A), if— Revenue Code to reflect current life expect- ‘‘(12) TAX TREATMENT OF PAYMENTS FROM A ‘‘(i) any portion of the balance to the cred- ancy. SECTION 457 PLAN.—If a distribution or pay- it of an employee in such plan is paid to such ment from an eligible deferred compensation employee in an eligible rollover distribution (b) REPEAL OF RULE WHERE DISTRIBUTIONS plan described in section 457(b) is made pur- (within the meaning of section 402(c)(4) with- HAD BEGUN BEFORE DEATH OCCURS.— suant to a qualified domestic relations order, out regard to subparagraph (C) thereof), (1) IN GENERAL.—Subparagraph (B) of sec- rules similar to the rules of section ‘‘(ii) the employee transfers any portion of tion 401(a)(9) is amended by striking clause 402(e)(1)(A) shall apply to such distribution the property such employee receives in such (i) and redesignating clauses (ii), (iii), and or payment.’’. distribution to an eligible retirement plan (iv) as clauses (i), (ii), and (iii), respectively. (d) EFFECTIVE DATE.—The amendments described in section 402(c)(8)(B), and (2) CONFORMING CHANGES.— made by this section shall apply to transfers, ‘‘(iii) in the case of a distribution of prop- (A) Clause (i) of section 401(a)(9)(B) (as so distributions, and payments made after De- erty other than money, the amount so trans- redesignated) is amended— cember 31, 2001. ferred consists of the property distributed, (i) by striking ‘‘FOR OTHER CASES’’ in the SEC. 306. PROVISIONS RELATING TO HARDSHIP then such distribution (to the extent so heading; and DISTRIBUTIONS. transferred) shall not be includible in gross (ii) by striking ‘‘the distribution of the em- (a) SAFE HARBOR RELIEF.— income for the taxable year in which paid. ployee’s interest has begun in accordance (1) IN GENERAL.—The Secretary of the ‘‘(B) CERTAIN RULES MADE APPLICABLE.— with subparagraph (A)(ii)’’ and inserting ‘‘his Treasury shall revise the regulations relat- The rules of paragraphs (2) through (7) (other entire interest has been distributed to him’’. ing to hardship distributions under section than paragraph (4)(C)) and (9) of section (B) Clause (ii) of section 401(a)(9)(B) (as so 401(k)(2)(B)(i)(IV) of the Internal Revenue 402(c) and section 402(f) shall apply for pur- redesignated) is amended by striking ‘‘clause Code of 1986 to provide that the period an poses of subparagraph (A). (ii)’’ and inserting ‘‘clause (i)’’. employee is prohibited from making elective ‘‘(C) REPORTING.—Rollovers under this (C) Clause (iii) of section 401(a)(9)(B) (as so and employee contributions in order for a paragraph shall be reported to the Secretary redesignated) is amended— distribution to be deemed necessary to sat- in the same manner as rollovers from quali- (i) by striking ‘‘clause (iii)(I)’’ and insert- isfy financial need shall be equal to 6 fied retirement plans (as defined in section ing ‘‘clause (ii)(I)’’; months. 4974(c)).’’. (ii) by striking ‘‘clause (iii)(III)’’ in sub- (2) EFFECTIVE DATE.—The revised regula- (B) DEFERRAL LIMIT DETERMINED WITHOUT clause (I) and inserting ‘‘clause (ii)(III)’’; tions under this subsection shall apply to REGARD TO ROLLOVER AMOUNTS.—Section (iii) by striking ‘‘the date on which the em- years beginning after December 31, 2001. 1 457(b)(2) (defining eligible deferred com- ployee would have attained age 70 ⁄2,’’ in sub- (b) HARDSHIP DISTRIBUTIONS NOT TREATED pensation plan) is amended by inserting clause (I) and inserting ‘‘April 1 of the cal- AS ELIGIBLE ROLLOVER DISTRIBUTIONS.— ‘‘(other than rollover amounts)’’ after ‘‘tax- endar year following the calendar year in (1) MODIFICATION OF DEFINITION OF ELIGIBLE 1 able year’’. which the spouse attains 70 ⁄2,’’; and ROLLOVER.—Subparagraph (C) of section (iv) by striking ‘‘the distributions to such 402(c)(4) (relating to eligible rollover dis- (C) DIRECT ROLLOVER.—Paragraph (1) of spouse begin,’’ in subclause (II) and inserting tribution) is amended to read as follows: section 457(d) is amended by striking ‘‘and’’ ‘‘his entire interest has been distributed to ‘‘(C) any distribution which is made upon at the end of subparagraph (A), by striking him,’’. hardship of the employee.’’. the period at the end of subparagraph (B) and inserting ‘‘, and’’, and by inserting after sub- (3) EFFECTIVE DATE.— (2) EFFECTIVE DATE.—The amendment (A) IN GENERAL.—Except as provided in made by this subsection shall apply to dis- paragraph (B) the following: subparagraph (B), the amendments made by tributions made after December 31, 2001. ‘‘(C) in the case of a plan maintained by an employer described in subsection (e)(1)(A), this subsection shall apply to years begin- SEC. 307. WAIVER OF TAX ON NONDEDUCTIBLE ning after December 31, 2001. CONTRIBUTIONS FOR DOMESTIC OR the plan meets requirements similar to the (B) DISTRIBUTIONS TO SURVIVING SPOUSE.— SIMILAR WORKERS. requirements of section 401(a)(31). (i) IN GENERAL.—In the case of an employee (a) IN GENERAL.—Section 4972(c)(6) (relat- Any amount transferred in a direct trustee- described in clause (ii), distributions to the ing to exceptions to nondeductible contribu- to-trustee transfer in accordance with sec- surviving spouse of the employee shall not be tions), as amended by section 502, is amended tion 401(a)(31) shall not be includible in gross required to commence prior to the date on by striking ‘‘and’’ at the end of subparagraph income for the taxable year of transfer.’’. which such distributions would have been re- (A), by striking the period and inserting ‘‘, (D) WITHHOLDING.— quired to begin under section 401(a)(9)(B) of and’’ at the end of subparagraph (B), and by (i) Paragraph (12) of section 3401(a) is the Internal Revenue Code of 1986 (as in ef- inserting after subparagraph (B) the fol- amended by adding at the end the following: fect on the day before the date of the enact- lowing new subparagraph: ‘‘(E) under or to an eligible deferred com- ment of this Act). ‘‘(C) so much of the contributions to a sim- pensation plan which, at the time of such (ii) CERTAIN EMPLOYEES.—An employee is ple retirement account (within the meaning payment, is a plan described in section 457(b) described in this clause if such employee dies of section 408(p)) or a simple plan (within the maintained by an employer described in sec- before— meaning of section 401(k)(11)) which are not tion 457(e)(1)(A); or’’. (I) the date of the enactment of this Act, deductible when contributed solely because (ii) Paragraph (3) of section 3405(c) is and such contributions are not made in connec- amended to read as follows:

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‘‘(3) ELIGIBLE ROLLOVER DISTRIBUTION.—For (d) SPOUSAL ROLLOVERS.—Section 402(c)(9) imum amount which may be paid into such purposes of this subsection, the term ‘eligi- (relating to rollover where spouse receives plan may not exceed the portion of the ble rollover distribution’ has the meaning distribution after death of employee) is amount received which is includible in gross given such term by section 402(f)(2)(A).’’. amended by striking ‘‘; except that’’ and all income (determined without regard to this (iii) LIABILITY FOR WITHHOLDING.—Subpara- that follows up to the end period. paragraph). graph (B) of section 3405(d)(2) is amended by (e) CONFORMING AMENDMENTS.— For purposes of clause (ii), the term ‘eligible striking ‘‘or’’ at the end of clause (ii), by (1) Section 72(o)(4) is amended by striking retirement plan’ means an eligible retire- striking the period at the end of clause (iii) ‘‘and 408(d)(3)’’ and inserting ‘‘403(b)(8), ment plan described in clause (iii), (iv), (v), and inserting ‘‘, or’’, and by adding at the 408(d)(3), and 457(e)(16)’’. or (vi) of section 402(c)(8)(B).’’. end the following: (2) Section 219(d)(2) is amended by striking (b) CONFORMING AMENDMENTS.— ‘‘(iv) section 457(b) and which is main- ‘‘or 408(d)(3)’’ and inserting ‘‘408(d)(3), or (1) Paragraph (1) of section 403(b) is amend- tained by an eligible employer described in 457(e)(16)’’. ed by striking ‘‘section 408(d)(3)(A)(iii)’’ and section 457(e)(1)(A).’’. (3) Section 401(a)(31)(B) is amended by inserting ‘‘section 408(d)(3)(A)(ii)’’. (2) ROLLOVERS TO SECTION 457 PLANS.— striking ‘‘and 403(a)(4)’’ and inserting ‘‘, (2) Clause (i) of section 408(d)(3)(D) is (A) IN GENERAL.—Section 402(c)(8)(B) (de- 403(a)(4), 403(b)(8), and 457(e)(16)’’. amended by striking ‘‘(i), (ii), or (iii)’’ and fining eligible retirement plan) is amended (4) Subparagraph (A) of section 402(f)(2) is inserting ‘‘(i) or (ii)’’. by striking ‘‘and’’ at the end of clause (iii), amended by striking ‘‘or paragraph (4) of sec- (3) Subparagraph (G) of section 408(d)(3) is by striking the period at the end of clause tion 403(a)’’ and inserting ‘‘, paragraph (4) of amended to read as follows: (iv) and inserting ‘‘, and’’, and by inserting section 403(a), subparagraph (A) of section ‘‘(G) SIMPLE RETIREMENT ACCOUNTS.—In the after clause (iv) the following new clause: 403(b)(8), or subparagraph (A) of section case of any payment or distribution out of a ‘‘(v) an eligible deferred compensation plan 457(e)(16)’’. simple retirement account (as defined in sub- described in section 457(b) which is main- (5) Paragraph (1) of section 402(f) is amend- section (p)) to which section 72(t)(6) applies, tained by an eligible employer described in ed by striking ‘‘from an eligible retirement this paragraph shall not apply unless such section 457(e)(1)(A).’’. plan’’. payment or distribution is paid into another (B) SEPARATE ACCOUNTING.—Section 402(c) (6) Subparagraphs (A) and (B) of section simple retirement account.’’. 402(f)(1) are amended by striking ‘‘another is amended by adding at the end the fol- (c) EFFECTIVE DATE; SPECIAL RULE.— eligible retirement plan’’ and inserting ‘‘an lowing new paragraph: (1) EFFECTIVE DATE.—The amendments ‘‘(10) SEPARATE ACCOUNTING.—Unless a plan eligible retirement plan’’. made by this section shall apply to distribu- described in clause (v) of paragraph (8)(B) (7) Subparagraph (B) of section 403(b)(8) is tions after December 31, 2001. amended to read as follows: agrees to separately account for amounts (2) SPECIAL RULE.—Notwithstanding any rolled into such plan from eligible retire- ‘‘(B) CERTAIN RULES MADE APPLICABLE.— other provision of law, subsections (h)(3) and ment plans not described in such clause, the The rules of paragraphs (2) through (7) and (h)(5) of section 1122 of the Tax Reform Act plan described in such clause may not accept (9) of section 402(c) and section 402(f) shall of 1986 shall not apply to any distribution transfers or rollovers from such retirement apply for purposes of subparagraph (A), ex- from an eligible retirement plan (as defined plans.’’. cept that section 402(f) shall be applied to in clause (iii) or (iv) of section 402(c)(8)(B) of (C) 10 PERCENT ADDITIONAL TAX.—Sub- the payor in lieu of the plan administrator.’’. the Internal Revenue Code of 1986) on behalf section (t) of section 72 (relating to 10-per- (8) Section 408(a)(1) is amended by striking of an individual if there was a rollover to cent additional tax on early distributions ‘‘or 403(b)(8),’’ and inserting ‘‘403(b)(8), or such plan on behalf of such individual which from qualified retirement plans) is amended 457(e)(16)’’. is permitted solely by reason of the amend- by adding at the end the following new para- (9) Subparagraphs (A) and (B) of section ments made by this section. graph: 415(b)(2) are each amended by striking ‘‘and 408(d)(3)’’ and inserting ‘‘403(b)(8), 408(d)(3), SEC. 403. ROLLOVERS OF AFTER-TAX CONTRIBU- ‘‘(9) SPECIAL RULE FOR ROLLOVERS TO SEC- TIONS. and 457(e)(16)’’. TION 457 PLANS.—For purposes of this sub- (a) ROLLOVERS FROM EXEMPT TRUSTS.— (10) Section 415(c)(2) is amended by strik- section, a distribution from an eligible de- Paragraph (2) of section 402(c) (relating to ing ‘‘and 408(d)(3)’’ and inserting ‘‘408(d)(3), ferred compensation plan (as defined in sec- maximum amount which may be rolled over) and 457(e)(16)’’. tion 457(b)) of an eligible employer described is amended by adding at the end the fol- (11) Section 4973(b)(1)(A) is amended by in section 457(e)(1)(A) shall be treated as a lowing: ‘‘The preceding sentence shall not striking ‘‘or 408(d)(3)’’ and inserting distribution from a qualified retirement plan apply to such distribution to the extent— ‘‘408(d)(3), or 457(e)(16)’’. described in section 4974(c)(1) to the extent ‘‘(A) such portion is transferred in a direct (f) EFFECTIVE DATE; SPECIAL RULE.— that such distribution is attributable to an trustee-to-trustee transfer to a qualified (1) EFFECTIVE DATE.—The amendments amount transferred to an eligible deferred trust which is part of a plan which is a de- compensation plan from a qualified retire- made by this section shall apply to distribu- tions after December 31, 2001. fined contribution plan and which agrees to ment plan (as defined in section 4974(c)).’’. separately account for amounts so trans- (2) REASONABLE NOTICE.—No penalty shall (b) ALLOWANCE OF ROLLOVERS FROM AND TO ferred, including separately accounting for 403(b) PLANS.— be imposed on a plan for the failure to pro- the portion of such distribution which is in- (1) ROLLOVERS FROM SECTION 403(b) PLANS.— vide the information required by the amend- cludible in gross income and the portion of Section 403(b)(8)(A)(ii) (relating to rollover ment made by subsection (c) with respect to such distribution which is not so includible, amounts) is amended by striking ‘‘such dis- any distribution made before the date that is or tribution’’ and all that follows and inserting 90 days after the date on which the Secretary ‘‘(B) such portion is transferred to an eligi- ‘‘such distribution to an eligible retirement of the Treasury issues a safe harbor rollover ble retirement plan described in clause (i) or plan described in section 402(c)(8)(B), and’’. notice after the date of the enactment of this (ii) of paragraph (8)(B).’’. (2) ROLLOVERS TO SECTION 403(b) PLANS.— Act, if the administrator of such plan makes (b) OPTIONAL DIRECT TRANSFER OF ELIGIBLE Section 402(c)(8)(B) (defining eligible retire- a reasonable attempt to comply with such requirement. ROLLOVER DISTRIBUTIONS.—Subparagraph (B) ment plan), as amended by subsection (a), is of section 401(a)(31) (relating to limitation) amended by striking ‘‘and’’ at the end of (3) SPECIAL RULE.—Notwithstanding any other provision of law, subsections (h)(3) and is amended by adding at the end the fol- clause (iv), by striking the period at the end lowing: of clause (v) and inserting ‘‘, and’’, and by in- (h)(5) of section 1122 of the Tax Reform Act serting after clause (v) the following new of 1986 shall not apply to any distribution ‘‘The preceding sentence shall not apply to clause: from an eligible retirement plan (as defined such distribution if the plan to which such ‘‘(vi) an annuity contract described in sec- in clause (iii) or (iv) of section 402(c)(8)(B) of distribution is transferred— tion 403(b).’’. the Internal Revenue Code of 1986) on behalf ‘‘(i) agrees to separately account for (c) EXPANDED EXPLANATION TO RECIPIENTS of an individual if there was a rollover to amounts so transferred, including separately OF ROLLOVER DISTRIBUTIONS.—Paragraph (1) such plan on behalf of such individual which accounting for the portion of such distribu- of section 402(f) (relating to written expla- is permitted solely by reason of any amend- tion which is includible in gross income and nation to recipients of distributions eligible ment made by this section. the portion of such distribution which is not for rollover treatment) is amended by strik- SEC. 402. ROLLOVERS OF IRAS INTO WORKPLACE so includible, or ing ‘‘and’’ at the end of subparagraph (C), by RETIREMENT PLANS. ‘‘(ii) is an eligible retirement plan de- striking the period at the end of subpara- (a) IN GENERAL.—Subparagraph (A) of sec- scribed in clause (i) or (ii) of section graph (D) and inserting ‘‘, and’’, and by add- tion 408(d)(3) (relating to rollover amounts) 402(c)(8)(B).’’. ing at the end the following new subpara- is amended by adding ‘‘or’’ at the end of (c) RULES FOR APPLYING SECTION 72 TO graph: clause (i), by striking clauses (ii) and (iii), IRAS.—Paragraph (3) of section 408(d) (relat- ‘‘(E) of the provisions under which dis- and by adding at the end the following: ing to special rules for applying section 72) is tributions from the eligible retirement plan ‘‘(ii) the entire amount received (including amended by inserting at the end the fol- receiving the distribution may be subject to money and any other property) is paid into lowing: restrictions and tax consequences which are an eligible retirement plan for the benefit of ‘‘(H) APPLICATION OF SECTION 72.— different from those applicable to distribu- such individual not later than the 60th day ‘‘(i) IN GENERAL.—If— tions from the plan making such distribu- after the date on which the payment or dis- ‘‘(I) a distribution is made from an indi- tion.’’. tribution is received, except that the max- vidual retirement plan, and

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00070 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.027 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1805 ‘‘(II) a rollover contribution is made to an ferred from the transferor plan to the trans- dations of benefits attributable to different eligible retirement plan described in section feree plan pursuant to a direct transfer rath- employers within a multiple employer plan. 402(c)(8)(B)(iii), (iv), (v), or (vi) with respect er than pursuant to a distribution from the ‘‘(5) Except to the extent provided in regu- to all or part of such distribution, transferor plan, lations promulgated by the Secretary of the then, notwithstanding paragraph (2), the ‘‘(II) the terms of both the transferor plan Treasury, a defined contribution plan shall rules of clause (ii) shall apply for purposes of and the transferee plan authorize the trans- not be treated as failing to meet the require- applying section 72. fer described in subclause (I), ments of this subsection merely because of ‘‘(ii) APPLICABLE RULES.—In the case of a ‘‘(III) the transfer described in subclause the elimination of a form of distribution pre- distribution described in clause (i)— (I) was made pursuant to a voluntary elec- viously available thereunder. This paragraph ‘‘(I) section 72 shall be applied separately tion by the participant or beneficiary whose shall not apply to the elimination of a form to such distribution, account was transferred to the transferee of distribution with respect to any partici- ‘‘(II) notwithstanding the pro rata alloca- plan, pant unless— tion of income on, and investment in, the ‘‘(IV) the election described in subclause ‘‘(A) a single sum payment is available to contract to distributions under section 72, (III) was made after the participant or bene- such participant at the same time or times the portion of such distribution rolled over ficiary received a notice describing the con- as the form of distribution being eliminated; to an eligible retirement plan described in sequences of making the election, and and ‘‘(V) the transferee plan allows the partici- clause (i) shall be treated as from income on ‘‘(B) such single sum payment is based on pant or beneficiary described in subclause the contract (to the extent of the aggregate the same or greater portion of the partici- (III) to receive any distribution to which the income on the contract from all individual pant’s account as the form of distribution participant or beneficiary is entitled under retirement plans of the distributee), and being eliminated.’’. the transferee plan in the form of a single ‘‘(III) appropriate adjustments shall be (3) EFFECTIVE DATE.—The amendments sum distribution. made in applying section 72 to other dis- made by this subsection shall apply to years ‘‘(ii) EXCEPTION.—Clause (i) shall apply to tributions in such taxable year and subse- beginning after December 31, 2001. plan mergers and other transactions having quent taxable years.’’. (b) REGULATIONS.— the effect of a direct transfer, including con- (d) EFFECTIVE DATE.—The amendments (1) AMENDMENT OF INTERNAL REVENUE solidations of benefits attributable to dif- made by this section shall apply to distribu- CODE.—Paragraph (6)(B) of section 411(d) (re- ferent employers within a multiple employer tions after December 31, 2001. lating to accrued benefit not to be decreased plan. SEC. 404. HARDSHIP EXCEPTION TO 60-DAY RULE. by amendment) is amended by inserting ‘‘(E) ELIMINATION OF FORM OF DISTRIBU- (a) EXEMPT TRUSTS.—Paragraph (3) of sec- after the second sentence the following new TION.—Except to the extent provided in regu- tion 402(c) (relating to transfer must be made sentence: ‘‘The Secretary shall by regula- lations, a defined contribution plan shall not tions provide that this subparagraph shall within 60 days of receipt) is amended to read be treated as failing to meet the require- as follows: not apply to any plan amendment which re- ments of this section merely because of the duces or eliminates benefits or subsidies ‘‘(3) TRANSFER MUST BE MADE WITHIN 60 elimination of a form of distribution pre- DAYS OF RECEIPT.— which create significant burdens or complex- viously available thereunder. This subpara- ities for the plan and plan participants and ‘‘(A) IN GENERAL.—Except as provided in graph shall not apply to the elimination of a subparagraph (B), paragraph (1) shall not does not adversely affect the rights of any form of distribution with respect to any par- participant in a more than de minimis man- apply to any transfer of a distribution made ticipant unless— after the 60th day following the day on which ner.’’. ‘‘(i) a single sum payment is available to (2) AMENDMENT OF ERISA.—Section 204(g)(2) the distributee received the property distrib- such participant at the same time or times uted. of the Employee Retirement Income Secu- as the form of distribution being eliminated, rity Act of 1974 (29 U.S.C. 1054(g)(2)) is ‘‘(B) HARDSHIP EXCEPTION.—The Secretary and may waive the 60-day requirement under amended by inserting before the last sen- ‘‘(ii) such single sum payment is based on tence the following new sentence: ‘‘The Sec- subparagraph (A) where the failure to waive the same or greater portion of the partici- such requirement would be against equity or retary of the Treasury shall by regulations pant’s account as the form of distribution provide that this paragraph shall not apply good conscience, including casualty, dis- being eliminated.’’. aster, or other events beyond the reasonable to any plan amendment which reduces or (2) AMENDMENT OF ERISA.—Section 204(g) of control of the individual subject to such re- eliminates benefits or subsidies which create the Employee Retirement Income Security significant burdens or complexities for the quirement.’’. Act of 1974 (29 U.S.C. 1054(g)) is amended by (b) IRAS.—Paragraph (3) of section 408(d) plan and plan participants and does not ad- adding at the end the following: versely affect the rights of any participant (relating to rollover contributions), as ‘‘(4)(A) A defined contribution plan (in this in a more than de minimis manner.’’. amended by section 403, is amended by add- subparagraph referred to as the ‘transferee (3) SECRETARY DIRECTED.—Not later than ing after subparagraph (H) the following new plan’) shall not be treated as failing to meet December 31, 2003, the Secretary of the subparagraph: the requirements of this subsection merely Treasury is directed to issue regulations ‘‘(I) WAIVER OF 60-DAY REQUIREMENT.—The because the transferee plan does not provide Secretary may waive the 60-day requirement some or all of the forms of distribution pre- under section 411(d)(6) of the Internal Rev- under subparagraphs (A) and (D) where the viously available under another defined con- enue Code of 1986 and section 204(g) of the failure to waive such requirement would be tribution plan (in this subparagraph referred Employee Retirement Income Security Act against equity or good conscience, including to as the ‘transferor plan’) to the extent of 1974, including the regulations required by casualty, disaster, or other events beyond that— the amendment made by this subsection. the reasonable control of the individual sub- ‘‘(i) the forms of distribution previously Such regulations shall apply to plan years ject to such requirement.’’. available under the transferor plan applied beginning after December 31, 2003, or such (c) EFFECTIVE DATE.—The amendments to the account of a participant or beneficiary earlier date as is specified by the Secretary made by this section shall apply to distribu- under the transferor plan that was trans- of the Treasury. tions after December 31, 2001. ferred from the transferor plan to the trans- SEC. 406. RATIONALIZATION OF RESTRICTIONS SEC. 405. TREATMENT OF FORMS OF DISTRIBU- feree plan pursuant to a direct transfer rath- ON DISTRIBUTIONS. TION. er than pursuant to a distribution from the (a) MODIFICATION OF SAME DESK EXCEP- (a) PLAN TRANSFERS.— transferor plan; TION.— (1) AMENDMENT OF INTERNAL REVENUE ‘‘(ii) the terms of both the transferor plan (1) SECTION 401(k).— CODE.—Paragraph (6) of section 411(d) (relat- and the transferee plan authorize the trans- (A) Section 401(k)(2)(B)(i)(I) (relating to ing to accrued benefit not to be decreased by fer described in clause (i); qualified cash or deferred arrangements) is amendment) is amended by adding at the end ‘‘(iii) the transfer described in clause (i) amended by striking ‘‘separation from serv- the following: was made pursuant to a voluntary election ice’’ and inserting ‘‘severance from employ- ‘‘(D) PLAN TRANSFERS.— by the participant or beneficiary whose ac- ment’’. ‘‘(i) IN GENERAL.—A defined contribution count was transferred to the transferee plan; (B) Subparagraph (A) of section 401(k)(10) plan (in this subparagraph referred to as the ‘‘(iv) the election described in clause (iii) (relating to distributions upon termination ‘transferee plan’) shall not be treated as fail- was made after the participant or bene- of plan or disposition of assets or subsidiary) ing to meet the requirements of this sub- ficiary received a notice describing the con- is amended to read as follows: section merely because the transferee plan sequences of making the election; and ‘‘(A) IN GENERAL.—An event described in does not provide some or all of the forms of ‘‘(v) the transferee plan allows the partici- this subparagraph is the termination of the distribution previously available under an- pant or beneficiary described in clause (iii) plan without establishment or maintenance other defined contribution plan (in this sub- to receive any distribution to which the par- of another defined contribution plan (other paragraph referred to as the ‘transferor ticipant or beneficiary is entitled under the than an employee stock ownership plan as plan’) to the extent that— transferee plan in the form of a single sum defined in section 4975(e)(7)).’’. ‘‘(I) the forms of distribution previously distribution. (C) Section 401(k)(10) is amended— available under the transferor plan applied ‘‘(B) Subparagraph (A) shall apply to plan (i) in subparagraph (B)— to the account of a participant or beneficiary mergers and other transactions having the (I) by striking ‘‘An event’’ in clause (i) and under the transferor plan that was trans- effect of a direct transfer, including consoli- inserting ‘‘A termination’’; and

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00071 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.027 pfrm02 PsN: H02PT1 H1806 CONGRESSIONAL RECORD — HOUSE May 2, 2001 (II) by striking ‘‘the event’’ in clause (i) For purposes of this subparagraph, the term ‘‘In the case of any The applicable and inserting ‘‘the termination’’; ‘rollover contributions’ means any rollover plan year beginning percentage is— (ii) by striking subparagraph (C); and contribution under sections 402(c), 403(a)(4), in— (iii) by striking ‘‘OR DISPOSITION OF ASSETS 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the 2002 ...... 165 OR SUBSIDIARY’’ in the heading. Internal Revenue Code of 1986.’’. (2) SECTION 403(b).— (b) ELIGIBLE DEFERRED COMPENSATION 2003 ...... 170.’’. PLANS.—Clause (i) of section 457(e)(9)(A) is (A) Paragraphs (7)(A)(ii) and (11)(A) of sec- (b) AMENDMENT OF ERISA.—Section amended by striking ‘‘such amount’’ and in- tion 403(b) are each amended by striking 302(c)(7) of the Employee Retirement Income serting ‘‘the portion of such amount which is ‘‘separates from service’’ and inserting ‘‘has Security Act of 1974 (29 U.S.C. 1082(c)(7)) is not attributable to rollover contributions (as a severance from employment’’. amended— (B) The heading for paragraph (11) of sec- defined in section 411(a)(11)(D))’’. (c) EFFECTIVE DATE.—The amendments (1) by striking ‘‘the applicable percentage’’ tion 403(b) is amended by striking ‘‘SEPARA- made by this section shall apply to distribu- in subparagraph (A)(i)(I) and inserting ‘‘in TION FROM SERVICE’’ and inserting ‘‘SEVER- tions after December 31, 2001. the case of plan years beginning before Janu- ANCE FROM EMPLOYMENT’’. SEC. 409. MINIMUM DISTRIBUTION AND INCLU- ary 1, 2004, the applicable percentage’’; and (3) SECTION 457.—Clause (ii) of section SION REQUIREMENTS FOR SECTION (2) by amending subparagraph (F) to read 457(d)(1)(A) is amended by striking ‘‘is sepa- 457 PLANS. as follows: rated from service’’ and inserting ‘‘has a sev- (a) MINIMUM DISTRIBUTION REQUIRE- ‘‘(F) APPLICABLE PERCENTAGE.—For pur- erance from employment’’. MENTS.—Paragraph (2) of section 457(d) (re- poses of subparagraph (A)(i)(I), the applica- (b) EFFECTIVE DATE.—The amendments lating to distribution requirements) is ble percentage shall be determined in accord- made by this section shall apply to distribu- amended to read as follows: ance with the following table: tions after December 31, 2001. ‘‘(2) MINIMUM DISTRIBUTION REQUIRE- SEC. 407. PURCHASE OF SERVICE CREDIT IN GOV- MENTS.—A plan meets the minimum dis- ‘‘In the case of any The applicable ERNMENTAL DEFINED BENEFIT tribution requirements of this paragraph if plan year beginning percentage is— PLANS. such plan meets the requirements of section (a) 403(b) PLANS.—Subsection (b) of section in— 403 is amended by adding at the end the fol- 401(a)(9).’’. 2002 ...... 165 (b) INCLUSION IN GROSS INCOME.— lowing new paragraph: 2003 ...... 170.’’. (1) YEAR OF INCLUSION.—Subsection (a) of ‘‘(13) TRUSTEE-TO-TRUSTEE TRANSFERS TO section 457 (relating to year of inclusion in (c) EFFECTIVE DATE.—The amendments PURCHASE PERMISSIVE SERVICE CREDIT.—No gross income) is amended to read as follows: made by this section shall apply to plan amount shall be includible in gross income ‘‘(a) YEAR OF INCLUSION IN GROSS INCOME.— years beginning after December 31, 2001. by reason of a direct trustee-to-trustee ‘‘(1) IN GENERAL.—Any amount of com- transfer to a defined benefit governmental pensation deferred under an eligible deferred SEC. 502. MAXIMUM CONTRIBUTION DEDUCTION plan (as defined in section 414(d)) if such RULES MODIFIED AND APPLIED TO compensation plan, and any income attrib- ALL DEFINED BENEFIT PLANS. transfer is— utable to the amounts so deferred, shall be ‘‘(A) for the purchase of permissive service includible in gross income only for the tax- (a) IN GENERAL.—Subparagraph (D) of sec- tion 404(a)(1) (relating to special rule in case credit (as defined in section 415(n)(3)(A)) able year in which such compensation or of certain plans) is amended to read as fol- under such plan, or other income— lows: ‘‘(B) a repayment to which section 415 does ‘‘(A) is paid to the participant or other ‘‘(D) SPECIAL RULE IN CASE OF CERTAIN not apply by reason of subsection (k)(3) beneficiary, in the case of a plan of an eligi- PLANS.— thereof.’’. ble employer described in subsection (b) 457 PLANS.—Subsection (e) of section ‘‘(i) IN GENERAL.—In the case of any defined (e)(1)(A), and 457 is amended by adding after paragraph (16) benefit plan, except as provided in regula- ‘‘(B) is paid or otherwise made available to the following new paragraph: tions, the maximum amount deductible the participant or other beneficiary, in the ‘‘(17) TRUSTEE-TO-TRUSTEE TRANSFERS TO under the limitations of this paragraph shall case of a plan of an eligible employer de- PURCHASE PERMISSIVE SERVICE CREDIT.—No not be less than the unfunded termination li- scribed in subsection (e)(1)(B). amount shall be includible in gross income ability (determined as if the proposed termi- ‘‘(2) SPECIAL RULE FOR ROLLOVER by reason of a direct trustee-to-trustee nation date referred to in section AMOUNTS.—To the extent provided in section transfer to a defined benefit governmental 4041(b)(2)(A)(i)(II) of the Employee Retire- 72(t)(9), section 72(t) shall apply to any plan (as defined in section 414(d)) if such ment Income Security Act of 1974 were the amount includible in gross income under this transfer is— last day of the plan year). subsection.’’. ‘‘(A) for the purchase of permissive service ‘‘(ii) PLANS WITH LESS THAN 100 PARTICI- (2) CONFORMING AMENDMENTS.— credit (as defined in section 415(n)(3)(A)) PANTS.—For purposes of this subparagraph, (A) So much of paragraph (9) of section under such plan, or in the case of a plan which has less than 100 457(e) as precedes subparagraph (A) is amend- ‘‘(B) a repayment to which section 415 does participants for the plan year, termination ed to read as follows: not apply by reason of subsection (k)(3) liability shall not include the liability at- ‘‘(9) BENEFITS OF TAX EXEMPT ORGANIZATION thereof.’’. tributable to benefit increases for highly PLANS NOT TREATED AS MADE AVAILABLE BY (c) EFFECTIVE DATE.—The amendments compensated employees (as defined in sec- REASON OF CERTAIN ELECTIONS, ETC.—In the made by this section shall apply to trustee- tion 414(q)) resulting from a plan amendment case of an eligible deferred compensation to-trustee transfers after December 31, 2001. which is made or becomes effective, which- plan of an employer described in subsection SEC. 408. EMPLOYERS MAY DISREGARD ROLL- ever is later, within the last 2 years before (e)(1)(B)—’’. OVERS FOR PURPOSES OF CASH-OUT the termination date. AMOUNTS. (B) Section 457(d) is amended by adding at ‘‘(iii) RULE FOR DETERMINING NUMBER OF (a) QUALIFIED PLANS.— the end the following new paragraph: PARTICIPANTS.—For purposes of determining (1) AMENDMENT OF INTERNAL REVENUE ‘‘(3) SPECIAL RULE FOR GOVERNMENT PLAN.— whether a plan has more than 100 partici- CODE.—Section 411(a)(11) (relating to restric- An eligible deferred compensation plan of an pants, all defined benefit plans maintained tions on certain mandatory distributions) is employer described in subsection (e)(1)(A) by the same employer (or any member of amended by adding at the end the following: shall not be treated as failing to meet the re- such employer’s controlled group (within the ‘‘(D) SPECIAL RULE FOR ROLLOVER CONTRIBU- quirements of this subsection solely by rea- meaning of section 412(l)(8)(C))) shall be TIONS.—A plan shall not fail to meet the re- son of making a distribution described in treated as one plan, but only employees of quirements of this paragraph if, under the subsection (e)(9)(A).’’. terms of the plan, the present value of the (c) EFFECTIVE DATE.—The amendments such member or employer shall be taken into nonforfeitable accrued benefit is determined made by this section shall apply to distribu- account. without regard to that portion of such ben- tions after December 31, 2001. ‘‘(iv) PLANS MAINTAINED BY PROFESSIONAL efit which is attributable to rollover con- TITLE V—STRENGTHENING PENSION SERVICE EMPLOYERS.—Clause (i) shall not tributions (and earnings allocable thereto). SECURITY AND ENFORCEMENT apply to a plan described in section 4021(b)(13) of the Employee Retirement In- For purposes of this subparagraph, the term SEC. 501. REPEAL OF PERCENT OF CURRENT LI- ‘rollover contributions’ means any rollover ABILITY FUNDING LIMIT. come Security Act of 1974.’’. contribution under sections 402(c), 403(a)(4), (a) AMENDMENT OF INTERNAL REVENUE (b) CONFORMING AMENDMENT.—Paragraph 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16).’’. CODE.—Section 412(c)(7) (relating to full- (6) of section 4972(c), as amended by section (2) AMENDMENT OF ERISA.—Section 203(e) of funding limitation) is amended— 207, is amended to read as follows: the Employee Retirement Income Security (1) by striking ‘‘the applicable percentage’’ ‘‘(6) EXCEPTIONS.—In determining the Act of 1974 (29 U.S.C. 1053(c)) is amended by in subparagraph (A)(i)(I) and inserting ‘‘in amount of nondeductible contributions for adding at the end the following: the case of plan years beginning before Janu- any taxable year, there shall not be taken ‘‘(4) A plan shall not fail to meet the re- ary 1, 2004, the applicable percentage’’; and into account so much of the contributions to quirements of this subsection if, under the (2) by amending subparagraph (F) to read one or more defined contribution plans terms of the plan, the present value of the as follows: which are not deductible when contributed nonforfeitable accrued benefit is determined ‘‘(F) APPLICABLE PERCENTAGE.—For pur- solely because of section 404(a)(7) as does not without regard to that portion of such ben- poses of subparagraph (A)(i)(I), the applica- exceed the greater of— efit which is attributable to rollover con- ble percentage shall be determined in accord- ‘‘(A) the amount of contributions not in tributions (and earnings allocable thereto). ance with the following table: excess of 6 percent of compensation (within

VerDate 02-MAY-2001 02:41 May 03, 2001 Jkt 089060 PO 00000 Frm 00072 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.027 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1807

the meaning of section 404(a)) paid or ac- ‘‘(A) any person subject to liability for the ‘‘(f) DEFINITIONS AND SPECIAL RULES.—For crued (during the taxable year for which the tax under subsection (d) exercised reasonable purposes of this section— contributions were made) to beneficiaries diligence to meet the requirements of sub- ‘‘(1) APPLICABLE INDIVIDUAL.—The term under the plans, or section (e), and ‘applicable individual’ means, with respect ‘‘(B) the sum of— ‘‘(B) such person provides the notice de- to any plan amendment— ‘‘(i) the amount of contributions described scribed in subsection (e) during the 30-day ‘‘(A) each participant in the plan, and in section 401(m)(4)(A), plus period beginning on the first date such per- ‘‘(B) any beneficiary who is an alternate ‘‘(ii) the amount of contributions described son knew, or exercising reasonable diligence payee (within the meaning of section in section 402(g)(3)(A). would have known, that such failure existed. 414(p)(8)) under an applicable qualified do- For purposes of this paragraph, the deduct- ‘‘(3) OVERALL LIMITATION FOR UNINTEN- mestic relations order (within the meaning ible limits under section 404(a)(7) shall first TIONAL FAILURES.— of section 414(p)(1)(A)), be applied to amounts contributed to a de- ‘‘(A) IN GENERAL.—If the person subject to whose rate of future benefit accrual under fined benefit plan and then to amounts de- liability for tax under subsection (d) exer- the plan may reasonably be expected to be scribed in subparagraph (B).’’. cised reasonable diligence to meet the re- significantly reduced by such plan amend- (c) EFFECTIVE DATE.—The amendments quirements of subsection (e), the tax imposed ment. made by this section shall apply to plan by subsection (a) for failures during the tax- ‘‘(2) APPLICABLE PENSION PLAN.—The term years beginning after December 31, 2001. able year of the employer (or, in the case of ‘applicable pension plan’ means— SEC. 503. EXCISE TAX RELIEF FOR SOUND PEN- a multiemployer plan, the taxable year of ‘‘(A) any defined benefit plan, or SION FUNDING. the trust forming part of the plan) shall not ‘‘(B) an individual account plan which is (a) IN GENERAL.—Subsection (c) of section exceed $500,000. For purposes of the preceding subject to the funding standards of section 4972 (relating to nondeductible contribu- sentence, all multiemployer plans of which 412. the same trust forms a part shall be treated tions) is amended by adding at the end the Such term shall not include a governmental as 1 plan. following new paragraph: plan (within the meaning of section 414(d)) or ‘‘(B) TAXABLE YEARS IN THE CASE OF CER- ‘‘(7) DEFINED BENEFIT PLAN EXCEPTION.—In a church plan (within the meaning of section TAIN CONTROLLED GROUPS.—For purposes of determining the amount of nondeductible 414(e)) with respect to which the election this paragraph, if all persons who are treated contributions for any taxable year, an em- provided by section 410(d) has not been made. ployer may elect for such year not to take as a single employer for purposes of this sec- ‘‘(3) EARLY RETIREMENT.—A plan amend- tion do not have the same taxable year, the into account any contributions to a defined ment which eliminates or significantly re- taxable years taken into account shall be de- benefit plan except to the extent that such duces any early retirement benefit or retire- termined under principles similar to the contributions exceed the full-funding limita- ment-type subsidy (within the meaning of principles of section 1561. tion (as defined in section 412(c)(7), deter- section 411(d)(6)(B)(i)) shall be treated as ‘‘(4) WAIVER BY SECRETARY.—In the case of mined without regard to subparagraph having the effect of significantly reducing a failure which is due to reasonable cause (A)(i)(I) thereof). For purposes of this para- the rate of future benefit accrual. graph, the deductible limits under section and not to willful neglect, the Secretary may ‘‘(g) NEW TECHNOLOGIES.—The Secretary waive part or all of the tax imposed by sub- 404(a)(7) shall first be applied to amounts may by regulations allow any notice under section (a) to the extent that the payment of contributed to defined contribution plans subsection (e) to be provided by using new such tax would be excessive or otherwise in- and then to amounts described in this para- technologies.’’. graph. If an employer makes an election equitable relative to the failure involved. (2) CLERICAL AMENDMENT.—The table of under this paragraph for a taxable year, ‘‘(d) LIABILITY FOR TAX.—The following sections for chapter 43 is amended by adding paragraph (6) shall not apply to such em- shall be liable for the tax imposed by sub- at the end the following new item: ployer for such taxable year.’’. section (a): (b) EFFECTIVE DATE.—The amendment ‘‘(1) In the case of a plan other than a mul- ‘‘Sec. 4980F. Failure of applicable plans re- made by this section shall apply to years be- tiemployer plan, the employer. ducing benefit accruals to sat- ginning after December 31, 2001. ‘‘(2) In the case of a multiemployer plan, isfy notice requirements.’’. SEC. 504. EXCISE TAX ON FAILURE TO PROVIDE the plan. (b) AMENDMENT OF ERISA.—Section 204(h) NOTICE BY DEFINED BENEFIT ‘‘(e) NOTICE REQUIREMENTS FOR PLANS SIG- of the Employee Retirement Income Secu- PLANS SIGNIFICANTLY REDUCING NIFICANTLY REDUCING BENEFIT ACCRUALS.— FUTURE BENEFIT ACCRUALS. rity Act of 1974 (29 U.S.C. 1054(h)) is amended ‘‘(1) IN GENERAL.—If an applicable pension (a) AMENDMENT OF INTERNAL REVENUE by adding at the end the following new para- plan is amended to provide for a significant CODE.— graphs: reduction in the rate of future benefit ac- (1) IN GENERAL.—Chapter 43 (relating to ‘‘(3)(A) An applicable pension plan to which qualified pension, etc., plans) is amended by crual, the plan administrator shall provide paragraph (1) applies shall not be treated as adding at the end the following new section: written notice to each applicable individual meeting the requirements of such paragraph (and to each employee organization rep- unless, in addition to any notice required to ‘‘SEC. 4980F. FAILURE OF APPLICABLE PLANS RE- DUCING BENEFIT ACCRUALS TO resenting applicable individuals). be provided to an individual or organization SATISFY NOTICE REQUIREMENTS. ‘‘(2) NOTICE.—The notice required by para- under such paragraph, the plan adminis- ‘‘(a) IMPOSITION OF TAX.—There is hereby graph (1) shall be written in a manner cal- trator provides the notice described in sub- imposed a tax on the failure of any applica- culated to be understood by the average plan paragraph (B) to each applicable individual ble pension plan to meet the requirements of participant and shall provide sufficient in- (and to each employee organization rep- subsection (e) with respect to any applicable formation (as determined in accordance with resenting applicable individuals). individual. regulations prescribed by the Secretary) to ‘‘(B) The notice required by subparagraph ‘‘(b) AMOUNT OF TAX.— allow applicable individuals to understand (A) shall be written in a manner calculated ‘‘(1) IN GENERAL.—The amount of the tax the effect of the plan amendment. The Sec- to be understood by the average plan partici- imposed by subsection (a) on any failure retary may provide a simplified form of no- pant and shall provide sufficient information with respect to any applicable individual tice for, or exempt from any notice require- (as determined in accordance with regula- shall be $100 for each day in the noncompli- ment, a plan— tions prescribed by the Secretary of the ance period with respect to such failure. ‘‘(A) which has fewer than 100 participants Treasury) to allow applicable individuals to ‘‘(2) NONCOMPLIANCE PERIOD.—For purposes who have accrued a benefit under the plan, understand the effect of the plan amend- of this section, the term ‘noncompliance pe- or ment. The Secretary of the Treasury may riod’ means, with respect to any failure, the ‘‘(B) which offers participants the option provide a simplified form of notice for, or ex- period beginning on the date the failure first to choose between the new benefit formula empt from any notice requirement, a plan— occurs and ending on the date the notice to and the old benefit formula. ‘‘(i) which has fewer than 100 participants which the failure relates is provided or the ‘‘(3) TIMING OF NOTICE.—Except as provided who have accrued a benefit under the plan, failure is otherwise corrected. in regulations, the notice required by para- or ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— graph (1) shall be provided within a reason- ‘‘(ii) which offers participants the option ‘‘(1) TAX NOT TO APPLY WHERE FAILURE NOT able time before the effective date of the to choose between the new benefit formula DISCOVERED AND REASONABLE DILIGENCE EXER- plan amendment. and the old benefit formula. CISED.—No tax shall be imposed by sub- ‘‘(4) DESIGNEES.—Any notice under para- ‘‘(C) Except as provided in regulations pre- section (a) on any failure during any period graph (1) may be provided to a person des- scribed by the Secretary of the Treasury, the for which it is established to the satisfaction ignated, in writing, by the person to which it notice required by subparagraph (A) shall be of the Secretary that any person subject to would otherwise be provided. provided within a reasonable time before the liability for the tax under subsection (d) did ‘‘(5) NOTICE BEFORE ADOPTION OF AMEND- effective date of the plan amendment. not know that the failure existed and exer- MENT.—A plan shall not be treated as failing ‘‘(D) Any notice under subparagraph (A) cised reasonable diligence to meet the re- to meet the requirements of paragraph (1) may be provided to a person designated, in quirements of subsection (e). merely because notice is provided before the writing, by the person to which it would oth- ‘‘(2) TAX NOT TO APPLY TO FAILURES COR- adoption of the plan amendment if no mate- erwise be provided. RECTED WITHIN 30 DAYS.—No tax shall be im- rial modification of the amendment occurs ‘‘(E) A plan shall not be treated as failing posed by subsection (a) on any failure if— before the amendment is adopted. to meet the requirements of subparagraph

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(A) merely because notice is provided before (1) IN GENERAL.—Paragraph (11) of section ‘‘(2) Notwithstanding paragraph (1), the ad- the adoption of the plan amendment if no 415(b) (relating to limitation for defined ben- ministrator of a plan to which more than 1 material modification of the amendment oc- efit plans) is amended to read as follows: unaffiliated employer is required to con- curs before the amendment is adopted. ‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN- tribute shall only be required to furnish a ‘‘(F) The Secretary of the Treasury may by MENTAL AND MULTIEMPLOYER PLANS.—In the pension benefit statement under paragraph regulations allow any notice under this para- case of a governmental plan (as defined in (1) upon the written request of a participant graph to be provided by using new tech- section 414(d)) or a multiemployer plan (as or beneficiary of the plan. nologies. defined in section 414(f)), subparagraph (B) of ‘‘(3) A pension benefit statement under ‘‘(4) For purposes of paragraph (3)— paragraph (1) shall not apply.’’. paragraph (1)— ‘‘(A) The term ‘applicable individual’ (2) CONFORMING AMENDMENT.—Section ‘‘(A) shall indicate, on the basis of the lat- means, with respect to any plan amend- 415(b)(7) (relating to benefits under certain est available information— ment— collectively bargained plans) is amended by ‘‘(i) the total benefits accrued, and ‘‘(i) each participant in the plan; and inserting ‘‘(other than a multiemployer ‘‘(ii) the nonforfeitable pension benefits, if ‘‘(ii) any beneficiary who is an alternate plan)’’ after ‘‘defined benefit plan’’ in the any, which have accrued, or the earliest date payee (within the meaning of section matter preceding subparagraph (A). on which benefits will become nonforfeit- 206(d)(3)(K)) under an applicable qualified do- (b) COMBINING AND AGGREGATION OF able, mestic relations order (within the meaning PLANS.— ‘‘(B) shall be written in a manner cal- of section 206(d)(3)(B)(i)), (1) COMBINING OF PLANS.—Subsection (f) of culated to be understood by the average plan whose rate of future benefit accrual under section 415 (relating to combining of plans) is participant, and the plan may reasonably be expected to be amended by adding at the end the following: ‘‘(C) may be provided in written, elec- significantly reduced by such plan amend- ‘‘(3) EXCEPTION FOR MULTIEMPLOYER tronic, telephonic, or other appropriate ment. PLANS.—Notwithstanding paragraph (1) and form. ‘‘(B) The term ‘applicable pension plan’ subsection (g), a multiemployer plan (as de- ‘‘(4)(A) In the case of a defined benefit plan, the requirements of paragraph (1)(B)(i) means— fined in section 414(f)) shall not be combined shall be treated as met with respect to a par- ‘‘(i) any defined benefit plan; or or aggregated— ticipant if the administrator provides the ‘‘(ii) an individual account plan which is ‘‘(A) with any other plan which is not a participant at least once each year with no- subject to the funding standards of section multiemployer plan for purposes of applying tice of the availability of the pension benefit 412 of the Internal Revenue Code of 1986. subsection (b)(1)(B) to such other plan, or statement and the ways in which the partici- ‘‘(C) A plan amendment which eliminates ‘‘(B) with any other multiemployer plan pant may obtain such statement. Such no- or significantly reduces any early retirement for purposes of applying the limitations es- tice shall be provided in written, electronic, benefit or retirement-type subsidy (within tablished in this section.’’. telephonic, or other appropriate form, and the meaning of subsection (g)(2)(A)) shall be (2) CONFORMING AMENDMENT FOR AGGREGA- may be included with other communications treated as having the effect of significantly TION OF PLANS.—Subsection (g) of section 415 to the participant if done in a manner rea- reducing the rate of future benefit accrual.’’. (relating to aggregation of plans) is amended sonably designed to attract the attention of (c) EFFECTIVE DATES.— by striking ‘‘The Secretary’’ and inserting the participant. (1) IN GENERAL.—The amendments made by ‘‘Except as provided in subsection (f)(3), the ‘‘(B) The Secretary may provide that years this section shall apply to plan amendments Secretary’’. in which no employee or former employee taking effect on or after the date of the en- (c) EFFECTIVE DATE.—The amendments benefits (within the meaning of section actment of this Act. made by this section shall apply to years be- 410(b) of the Internal Revenue Code of 1986) (2) TRANSITION.—Until such time as the ginning after December 31, 2001. under the plan need not be taken into ac- Secretary of the Treasury issues regulations SEC. 506. PROTECTION OF INVESTMENT OF EM- count in determining the 3-year period under under sections 4980F(e)(2) and (3) of the In- PLOYEE CONTRIBUTIONS TO 401(K) paragraph (1)(B)(i).’’. ternal Revenue Code of 1986, and section PLANS. (b) CONFORMING AMENDMENTS.— 204(h)(3) of the Employee Retirement Income (a) IN GENERAL.—Section 1524(b) of the (1) Section 105 of the Employee Retirement Security Act of 1974, as added by the amend- Taxpayer Relief Act of 1997 is amended to Income Security Act of 1974 (29 U.S.C. 1025) is ments made by this section, a plan shall be read as follows: amended by striking subsection (d). treated as meeting the requirements of such ‘‘(b) EFFECTIVE DATE.— (2) Section 105(b) of such Act (29 U.S.C. sections if it makes a good faith effort to ‘‘(1) IN GENERAL.—Except as provided in 1025(b)) is amended to read as follows: comply with such requirements. paragraph (2), the amendments made by this ‘‘(b) In no case shall a participant or bene- (3) SPECIAL NOTICE RULE.— section shall apply to elective deferrals for ficiary of a plan be entitled to more than one (A) IN GENERAL.—The period for providing plan years beginning after December 31, 1998. statement described in subsection (a)(1)(A) any notice required by the amendments ‘‘(2) NONAPPLICATION TO PREVIOUSLY AC- or (a)(1)(B)(ii), whichever is applicable, in made by this section shall not end before the QUIRED PROPERTY.—The amendments made any 12-month period.’’. date which is 3 months after the date of the by this section shall not apply to any elec- (c) EFFECTIVE DATE.—The amendments enactment of this Act. tive deferral which is invested in assets con- made by this section shall apply to plan years beginning after December 31, 2002. (B) REASONABLE NOTICE.—The amendments sisting of qualifying employer securities, made by this section shall not apply to any qualifying employer real property, or both, if SEC. 508. PROHIBITED ALLOCATIONS OF STOCK plan amendment taking effect on or after the such assets were acquired before January 1, IN S CORPORATION ESOP. (a) IN GENERAL.—Section 409 (relating to date of the enactment of this Act if, before 1999.’’. qualifications for tax credit employee stock April 25, 2001, notice was provided to partici- (b) EFFECTIVE DATE.—The amendment ownership plans) is amended by redesig- pants and beneficiaries adversely affected by made by this section shall apply as if in- nating subsection (p) as subsection (q) and the plan amendment (or their representa- cluded in the provision of the Taxpayer Re- by inserting after subsection (o) the fol- tives) which was reasonably expected to no- lief Act of 1997 to which it relates. SEC. 507. PERIODIC PENSION BENEFITS STATE- lowing new subsection: tify them of the nature and effective date of ‘‘(p) PROHIBITED ALLOCATIONS OF SECURI- the plan amendment. MENTS. N ENERAL TIES IN AN S CORPORATION.— (d) STUDY.—The Secretary of the Treasury (a) I G .—Section 105(a) of the Em- ployee Retirement Income Security Act of ‘‘(1) IN GENERAL.—An employee stock own- shall prepare a report on the effects of con- ership plan holding employer securities con- versions of traditional defined benefit plans 1974 (29 U.S.C. 1025 (a)) is amended to read as sisting of stock in an S corporation shall to cash balance or hybrid formula plans. follows: provide that no portion of the assets of the Such study shall examine the effect of such ‘‘(a)(1) Except as provided in paragraph plan attributable to (or allocable in lieu of) conversions on longer service participants, (2)— such employer securities may, during a non- including the incidence and effects of ‘‘wear ‘‘(A) the administrator of an individual ac- away’’ provisions under which participants count plan shall furnish a pension benefit allocation year, accrue (or be allocated di- earn no additional benefits for a period of statement— rectly or indirectly under any plan of the time after the conversion. As soon as prac- ‘‘(i) to a plan participant at least once an- employer meeting the requirements of sec- ticable, but not later than 60 days after the nually, and tion 401(a)) for the benefit of any disqualified date of the enactment of this Act, the Sec- ‘‘(ii) to a plan beneficiary upon written re- person. retary shall submit such report, together quest, and ‘‘(2) FAILURE TO MEET REQUIREMENTS.— with recommendations thereon, to the Com- ‘‘(B) the administrator of a defined benefit ‘‘(A) IN GENERAL.—If a plan fails to meet mittee on Ways and Means and the Com- plan shall furnish a pension benefit state- the requirements of paragraph (1), the plan mittee on Education and the Workforce of ment— shall be treated as having distributed to any the House of Representatives and the Com- ‘‘(i) at least once every 3 years to each par- disqualified person the amount allocated to mittee on Finance and the Committee on ticipant with a nonforfeitable accrued ben- the account of such person in violation of Health, Education, Labor, and Pensions of efit who is employed by the employer main- paragraph (1) at the time of such allocation. the Senate. taining the plan at the time the statement is ‘‘(B) CROSS REFERENCE.— SEC. 505. TREATMENT OF MULTIEMPLOYER furnished to participants, and ‘‘For excise tax relating to violations of PLANS UNDER SECTION 415. ‘‘(ii) to a plan participant or plan bene- paragraph (1) and ownership of synthetic eq- (a) COMPENSATION LIMIT.— ficiary of the plan upon written request. uity, see section 4979A.

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‘‘(3) NONALLOCATION YEAR.—For purposes of treated as such individual’s spouse for pur- which made the written statement described this subsection— poses of this subparagraph. in section 664(g)(1)(E) or in section ‘‘(A) IN GENERAL.—The term ‘nonallocation ‘‘(5) TREATMENT OF SYNTHETIC EQUITY.—For 1042(b)(3)(B) (as the case may be), and year’ means any plan year of an employee purposes of paragraphs (3) and (4), in the case ‘‘(2) in the case of an allocation or owner- stock ownership plan if, at any time during of a person who owns synthetic equity in the ship referred to in paragraph (3) or (4) of sub- such plan year— S corporation, except to the extent provided section (a), by the S corporation the stock in ‘‘(i) such plan holds employer securities in regulations, the shares of stock in such which was so allocated or owned.’’. consisting of stock in an S corporation, and corporation on which such synthetic equity (3) DEFINITIONS.—Section 4979A(e) (relating ‘‘(ii) disqualified persons own at least 50 is based shall be treated as outstanding to definitions) is amended to read as follows: percent of the number of shares of stock in stock in such corporation and deemed-owned ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For the S corporation. shares of such person if such treatment of purposes of this section— ‘‘(1) DEFINITIONS.—Except as provided in ‘‘(B) ATTRIBUTION RULES.—For purposes of synthetic equity of 1 or more such persons subparagraph (A)— results in— paragraph (2), terms used in this section have the same respective meanings as when ‘‘(i) IN GENERAL.—The rules of section ‘‘(A) the treatment of any person as a dis- used in sections 409 and 4978. 318(a) shall apply for purposes of determining qualified person, or ‘‘(2) SPECIAL RULES RELATING TO TAX IM- ownership, except that— ‘‘(B) the treatment of any year as a non- POSED BY REASON OF PARAGRAPH (3) OR (4) OF ‘‘(I) in applying paragraph (1) thereof, the allocation year. SUBSECTION (a).— members of an individual’s family shall in- For purposes of this paragraph, synthetic eq- ‘‘(A) PROHIBITED ALLOCATIONS.—The clude members of the family described in uity shall be treated as owned by a person in amount involved with respect to any tax im- paragraph (4)(D), and the same manner as stock is treated as posed by reason of subsection (a)(3) is the ‘‘(II) paragraph (4) thereof shall not apply. owned by a person under the rules of para- amount allocated to the account of any per- ‘‘(ii) DEEMED-OWNED SHARES.—Notwith- graphs (2) and (3) of section 318(a). If, with- son in violation of section 409(p)(1). standing the employee trust exception in out regard to this paragraph, a person is ‘‘(B) SYNTHETIC EQUITY.—The amount in- section 318(a)(2)(B)(i), individual shall be treated as a disqualified person or a year is volved with respect to any tax imposed by treated as owning deemed-owned shares of treated as a nonallocation year, this para- reason of subsection (a)(4) is the value of the the individual. graph shall not be construed to result in the shares on which the synthetic equity is Solely for purposes of applying paragraph (5), person or year not being so treated. based. this subparagraph shall be applied after the ‘‘(6) DEFINITIONS.—For purposes of this sub- ‘‘(C) SPECIAL RULE DURING FIRST NON- attribution rules of paragraph (5) have been section— ALLOCATION YEAR.—For purposes of subpara- applied. ‘‘(A) EMPLOYEE STOCK OWNERSHIP PLAN.— graph (A), the amount involved for the first The term ‘employee stock ownership plan’ ‘‘(4) DISQUALIFIED PERSON.—For purposes of nonallocation year of any employee stock this subsection— has the meaning given such term by section ownership plan shall be determined by tak- 4975(e)(7). ‘‘(A) IN GENERAL.—The term ‘disqualified ing into account the total value of all the person’ means any person if— ‘‘(B) EMPLOYER SECURITIES.—The term ‘em- deemed-owned shares of all disqualified per- ‘‘(i) the aggregate number of deemed- ployer security’ has the meaning given such sons with respect to such plan. owned shares of such person and the mem- term by section 409(l). ‘‘(D) STATUTE OF LIMITATIONS.—The statu- ‘‘(C) SYNTHETIC EQUITY.—The term ‘syn- bers of such person’s family is at least 20 per- tory period for the assessment of any tax im- thetic equity’ means any stock option, war- cent of the number of deemed-owned shares posed by this section by reason of paragraph rant, restricted stock, deferred issuance of stock in the S corporation, or (3) or (4) of subsection (a) shall not expire be- stock right, or similar interest or right that ‘‘(ii) in the case of a person not described fore the date which is 3 years from the later gives the holder the right to acquire or re- in clause (i), the number of deemed-owned of— ceive stock of the S corporation in the fu- shares of such person is at least 10 percent of ‘‘(i) the allocation or ownership referred to ture. Except to the extent provided in regu- the number of deemed-owned shares of stock in such paragraph giving rise to such tax, or lations, synthetic equity also includes a in such corporation. ‘‘(ii) the date on which the Secretary is no- stock appreciation right, phantom stock tified of such allocation or ownership.’’. ‘‘(B) TREATMENT OF FAMILY MEMBERS.—In unit, or similar right to a future cash pay- (d) EFFECTIVE DATES.— the case of a disqualified person described in ment based on the value of such stock or ap- (1) IN GENERAL.—The amendments made by subparagraph (A)(i), any member of such per- preciation in such value. this section shall apply to plan years begin- son’s family with deemed-owned shares shall ‘‘(7) REGULATIONS.—The Secretary shall ning after December 31, 2004. be treated as a disqualified person if not oth- prescribe such regulations as may be nec- (2) EXCEPTION FOR CERTAIN PLANS.—In the erwise treated as a disqualified person under essary to carry out the purposes of this sub- case of any— subparagraph (A). section.’’. (A) employee stock ownership plan estab- ‘‘(C) DEEMED-OWNED SHARES.— (b) COORDINATION WITH SECTION 4975(e)(7).— lished after March 14, 2001, or ‘‘(i) IN GENERAL.—The term ‘deemed-owned The last sentence of section 4975(e)(7) (defin- (B) employee stock ownership plan estab- shares’ means, with respect to any person— ing employee stock ownership plan) is lished on or before such date if employer se- ‘‘(I) the stock in the S corporation consti- amended by inserting ‘‘, section 409(p),’’ after curities held by the plan consist of stock in tuting employer securities of an employee ‘‘409(n)’’. a corporation with respect to which an elec- stock ownership plan which is allocated to tion under section 1362(a) of the Internal (c) EXCISE TAX.— such person under the plan, and Revenue Code of 1986 is not in effect on such (1) APPLICATION OF TAX.—Subsection (a) of ‘‘(II) such person’s share of the stock in date, such corporation which is held by such plan section 4979A (relating to tax on certain pro- hibited allocations of employer securities) is the amendments made by this section shall but which is not allocated under the plan to apply to plan years ending after March 14, participants. amended— (A) by striking ‘‘or’’ at the end of para- 2001. ‘‘(ii) PERSON’S SHARE OF UNALLOCATED graph (1), and TITLE VI—REDUCING REGULATORY STOCK.—For purposes of clause (i)(II), a per- BURDENS son’s share of unallocated S corporation (B) by striking all that follows paragraph stock held by such plan is the amount of the (2) and inserting the following: SEC. 601. MODIFICATION OF TIMING OF PLAN VALUATIONS. unallocated stock which would be allocated ‘‘(3) there is any allocation of employer se- (a) AMENDMENT OF INTERNAL REVENUE to such person if the unallocated stock were curities which violates the provisions of sec- CODE.—Paragraph (9) of section 412(c) (relat- allocated to all participants in the same pro- tion 409(p), or a nonallocation year described in subsection (e)(2)(C) with respect to an em- ing to annual valuation) is amended to read portions as the most recent stock allocation as follows: under the plan. ployee stock ownership plan, or ‘‘(4) any synthetic equity is owned by a dis- ‘‘(9) ANNUAL VALUATION.— ‘‘(D) MEMBER OF FAMILY.—For purposes of qualified person in any nonallocation year, ‘‘(A) IN GENERAL.—For purposes of this sec- this paragraph, the term ‘member of the tion, a determination of experience gains and family’ means, with respect to any indi- there is hereby imposed a tax on such alloca- losses and a valuation of the plan’s liability vidual— tion or ownership equal to 50 percent of the shall be made not less frequently than once ‘‘(i) the spouse of the individual, amount involved.’’. every year, except that such determination ‘‘(ii) an ancestor or lineal descendant of (2) LIABILITY.—Section 4979A(c) (defining shall be made more frequently to the extent the individual or the individual’s spouse, liability for tax) is amended to read as fol- required in particular cases under regula- ‘‘(iii) a brother or sister of the individual lows: tions prescribed by the Secretary. or the individual’s spouse and any lineal de- ‘‘(c) LIABILITY FOR TAX.—The tax imposed ‘‘(B) VALUATION DATE.— scendant of the brother or sister, and by this section shall be paid— ‘‘(i) CURRENT YEAR.—Except as provided in ‘‘(iv) the spouse of any individual described ‘‘(1) in the case of an allocation referred to clause (ii), the valuation referred to in sub- in clause (ii) or (iii). in paragraph (1) or (2) of subsection (a), by— paragraph (A) shall be made as of a date A spouse of an individual who is legally sepa- ‘‘(A) the employer sponsoring such plan, or within the plan year to which the valuation rated from such individual under a decree of ‘‘(B) the eligible worker-owned coopera- refers or within one month prior to the be- divorce or separate maintenance shall not be tive, ginning of such year.

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‘‘(ii) ELECTION TO USE PRIOR YEAR VALU- of 1986 who are eligible to make contribu- (C) does not provide benefits to anyone ex- ATION.—The valuation referred to in subpara- tions under section 403(b) of such Code pursu- cept the employer (and the employer’s graph (A) may be made as of a date within ant to a salary reduction agreement may be spouse) or the partners (and their spouses); the plan year prior to the year to which the treated as excludable with respect to a plan (D) does not cover a business that is a valuation refers if— under section 401(k) or (m) of such Code that member of an affiliated service group, a con- ‘‘(I) an election is in effect under this is provided under the same general arrange- trolled group of corporations, or a group of clause with respect to the plan, and ment as a plan under such section 401(k), if— businesses under common control; and ‘‘(II) as of such date, the value of the assets (1) no employee of an organization de- (E) does not cover a business that leases of the plan are not less than 125 percent of scribed in section 403(b)(1)(A)(i) of such Code employees. the plan’s current liability (as defined in is eligible to participate in such section (3) OTHER DEFINITIONS.—Terms used in paragraph (7)(B)). 401(k) plan or section 401(m) plan; and paragraph (2) which are also used in section ‘‘(iii) ADJUSTMENTS.—Information under (2) 95 percent of the employees who are not 414 of the Internal Revenue Code of 1986 shall clause (ii) shall, in accordance with regula- employees of an organization described in have the respective meanings given such tions, be actuarially adjusted to reflect sig- section 403(b)(1)(A)(i) of such Code are eligi- terms by such section. nificant differences in participants. ble to participate in such plan under such (b) SIMPLIFIED ANNUAL FILING REQUIRE- ‘‘(iv) ELECTION.—An election under clause section 401(k) or (m). MENT FOR PLANS WITH FEWER THAN 25 EM- (ii), once made, shall be irrevocable without (b) EFFECTIVE DATE.—The modification re- PLOYEES.—In the case of plan years begin- the consent of the Secretary.’’. quired by subsection (a) shall apply as of the ning after December 31, 2002, the Secretary (b) AMENDMENT OF ERISA.—Paragraph (9) same date set forth in section 1426(b) of the of the Treasury and the Secretary of Labor of section 302(c) of the Employee Retirement Small Business Job Protection Act of 1996. shall provide for the filing of a simplified an- Income Security Act of 1974 (29 U.S.C. SEC. 605. CLARIFICATION OF TREATMENT OF EM- nual return for any retirement plan which 1053(c)) is amended— PLOYER-PROVIDED RETIREMENT covers less than 25 employees on the first (1) by inserting ‘‘(A)’’ after ‘‘(9)’’; and ADVICE. day of a plan year and which meets the re- (2) by adding at the end the following: (a) IN GENERAL.—Subsection (a) of section quirements described in subparagraphs (B), ‘‘(B)(i) Except as provided in clause (ii), 132 (relating to exclusion from gross income) (D), and (E) of subsection (a)(2). is amended by striking ‘‘or’’ at the end of the valuation referred to in subparagraph (A) (c) EFFECTIVE DATE.—The provisions of paragraph (5), by striking the period at the shall be made as of a date within the plan this section shall take effect on January 1, end of paragraph (6) and inserting ‘‘, or’’, and year to which the valuation refers or within 2002. by adding at the end the following new para- one month prior to the beginning of such SEC. 607. IMPROVEMENT OF EMPLOYEE PLANS graph: year. COMPLIANCE RESOLUTION SYSTEM. ‘‘(7) qualified retirement planning serv- ‘‘(ii) The valuation referred to in subpara- The Secretary of the Treasury shall con- ices.’’. graph (A) may be made as of a date within tinue to update and improve the Employee (b) QUALIFIED RETIREMENT PLANNING SERV- the plan year prior to the year to which the Plans Compliance Resolution System (or any ICES DEFINED.—Section 132 is amended by re- successor program) giving special attention valuation refers if— designating subsection (m) as subsection (n) to— ‘‘(I) an election is in effect under this and by inserting after subsection (l) the fol- (1) increasing the awareness and knowledge clause with respect to the plan; and lowing: ‘‘(II) as of such date, the value of the assets ‘‘(m) QUALIFIED RETIREMENT PLANNING of small employers concerning the avail- of the plan are not less than 125 percent of SERVICES.— ability and use of the program; the plan’s current liability (as defined in ‘‘(1) IN GENERAL.—For purposes of this sec- (2) taking into account special concerns paragraph (7)(B)). tion, the term ‘qualified retirement planning and circumstances that small employers face ‘‘(iii) Information under clause (ii) shall, in services’ means any retirement planning ad- with respect to compliance and correction of accordance with regulations, be actuarially vice or information provided to an employee compliance failures; adjusted to reflect significant differences in and his spouse by an employer maintaining a (3) extending the duration of the self-cor- participants. qualified employer plan. rection period under the Administrative Pol- ‘‘(iv) An election under clause (ii), once ‘‘(2) NONDISCRIMINATION RULE.—Subsection icy Regarding Self-Correction for significant made, shall be irrevocable without the con- (a)(7) shall apply in the case of highly com- compliance failures; sent of the Secretary of the Treasury.’’. pensated employees only if such services are (4) expanding the availability to correct in- (c) EFFECTIVE DATE.—The amendments available on substantially the same terms to significant compliance failures under the Ad- made by this section shall apply to plan each member of the group of employees nor- ministrative Policy Regarding Self-Correc- years beginning after December 31, 2001. mally provided education and information tion during audit; and SEC. 602. ESOP DIVIDENDS MAY BE REINVESTED regarding the employer’s qualified employer (5) assuring that any tax, penalty, or sanc- WITHOUT LOSS OF DIVIDEND DE- plan. tion that is imposed by reason of a compli- DUCTION. ‘‘(3) QUALIFIED EMPLOYER PLAN.—For pur- ance failure is not excessive and bears a rea- (a) IN GENERAL.—Section 404(k)(2)(A) (de- poses of this subsection, the term ‘qualified sonable relationship to the nature, extent, fining applicable dividends) is amended by employer plan’ means a plan, contract, pen- and severity of the failure. striking ‘‘or’’ at the end of clause (ii), by re- sion, or account described in section SEC. 608. REPEAL OF THE MULTIPLE USE TEST. designating clause (iii) as clause (iv), and by 219(g)(5).’’. (a) IN GENERAL.—Paragraph (9) of section inserting after clause (ii) the following new (c) EFFECTIVE DATE.—The amendments 401(m) is amended to read as follows: clause: made by this section shall apply to years be- ‘‘(9) REGULATIONS.—The Secretary shall ‘‘(iii) is, at the election of such partici- ginning after December 31, 2001. prescribe such regulations as may be nec- pants or their beneficiaries— SEC. 606. REPORTING SIMPLIFICATION. essary to carry out the purposes of this sub- ‘‘(I) payable as provided in clause (i) or (ii), (a) SIMPLIFIED ANNUAL FILING REQUIRE- section and subsection (k), including regula- or MENT FOR OWNERS AND THEIR SPOUSES.— tions permitting appropriate aggregation of ‘‘(II) paid to the plan and reinvested in (1) IN GENERAL.—The Secretary of the plans and contributions.’’. qualifying employer securities, or’’. Treasury and the Secretary of Labor shall (b) EFFECTIVE DATE.—The amendment (b) STANDARDS FOR DISALLOWANCE.—Sec- modify the requirements for filing annual re- made by this section shall apply to years be- tion 404(k)(5)(A) (relating to disallowance of turns with respect to one-participant retire- ginning after December 31, 2001. deduction) is amended by inserting ‘‘avoid- ment plans to ensure that such plans with SEC. 609. FLEXIBILITY IN NONDISCRIMINATION, ance or’’ before ‘‘evasion’’. assets of $250,000 or less as of the close of the COVERAGE, AND LINE OF BUSINESS (c) EFFECTIVE DATE.—The amendments plan year need not file a return for that year. RULES. made by this section shall apply to taxable (2) ONE-PARTICIPANT RETIREMENT PLAN DE- (a) NONDISCRIMINATION.— years beginning after December 31, 2001. FINED.—For purposes of this subsection, the (1) IN GENERAL.—The Secretary of the SEC. 603. REPEAL OF TRANSITION RULE RELAT- term ‘‘one-participant retirement plan’’ Treasury shall, by regulation, provide that a ING TO CERTAIN HIGHLY COM- means a retirement plan that— plan shall be deemed to satisfy the require- PENSATED EMPLOYEES. (A) on the first day of the plan year— ments of section 401(a)(4) of the Internal (a) IN GENERAL.—Paragraph (4) of section (i) covered only the employer (and the em- Revenue Code of 1986 if such plan satisfies 1114(c) of the Tax Reform Act of 1986 is here- ployer’s spouse) and the employer owned the the facts and circumstances test under sec- by repealed. entire business (whether or not incor- tion 401(a)(4) of such Code, as in effect before (b) EFFECTIVE DATE.—The repeal made by porated); or January 1, 1994, but only if— subsection (a) shall apply to plan years be- (ii) covered only one or more partners (and (A) the plan satisfies conditions prescribed ginning after December 31, 2001. their spouses) in a business partnership (in- by the Secretary to appropriately limit the SEC. 604. EMPLOYEES OF TAX-EXEMPT ENTITIES. cluding partners in an S or C corporation); availability of such test; and (a) IN GENERAL.—The Secretary of the (B) meets the minimum coverage require- (B) the plan is submitted to the Secretary Treasury shall modify Treasury Regulations ments of section 410(b) of the Internal Rev- for a determination of whether it satisfies section 1.410(b)–6(g) to provide that employ- enue Code of 1986 without being combined such test. ees of an organization described in section with any other plan of the business that cov- Subparagraph (B) shall only apply to the ex- 403(b)(1)(A)(i) of the Internal Revenue Code ers the employees of the business; tent provided by the Secretary.

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00076 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.028 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1811

(2) EFFECTIVE DATES.— (1) AMENDMENT OF INTERNAL REVENUE ‘‘(G) the Chairman and Ranking Member of (A) REGULATIONS.—The regulation required CODE.— the Committee on Finance of the Senate; by paragraph (1) shall apply to years begin- (A) IN GENERAL.—Subparagraph (A) of sec- ‘‘(H) the Chairman and Ranking Member of ning after December 31, 2003. tion 417(a)(6) is amended by striking ‘‘90- the Committee on Ways and Means of the (B) CONDITIONS OF AVAILABILITY.—Any con- day’’ and inserting ‘‘180-day’’. House of Representatives; dition of availability prescribed by the Sec- (B) MODIFICATION OF REGULATIONS.—The ‘‘(I) the Chairman and Ranking Member of retary under paragraph (1)(A) shall not apply Secretary of the Treasury shall modify the the Subcommittee on Employer-Employee before the first year beginning not less than regulations under sections 402(f), 411(a)(11), Relations of the Committee on Education 120 days after the date on which such condi- and 417 of the Internal Revenue Code of 1986 and the Workforce of the House of Rep- tion is prescribed. to substitute ‘‘180 days’’ for ‘‘90 days’’ each resentatives; and’’; (b) COVERAGE TEST.— place it appears in Treasury Regulations sec- (4) in subsection (e)(3)(A)— (1) IN GENERAL.—Section 410(b)(1) (relating tions 1.402(f)–1, 1.411(a)–11(c), and 1.417(e)– (A) by striking ‘‘There shall be no more to minimum coverage requirements) is 1(b). than 200 additional participants.’’ and insert- amended by adding at the end the following: (2) AMENDMENT OF ERISA.—Section ing ‘‘The participants in the National Sum- ‘‘(D) In the case that the plan fails to meet 205(c)(7)(A) of the Employee Retirement In- the requirements of subparagraphs (A), (B) mit shall also include additional partici- come Security Act of 1974 (29 U.S.C. pants appointed under this subparagraph.’’; and (C), the plan— 1055(c)(7)(A)) is amended by striking ‘‘90- ‘‘(i) satisfies subparagraph (B), as in effect (B) by striking ‘‘one-half shall be ap- day’’ and inserting ‘‘180-day’’. pointed by the President,’’ in clause (i) and immediately before the enactment of the (3) EFFECTIVE DATE.—The amendments Tax Reform Act of 1986, inserting ‘‘not more than 100 participants made by paragraph (1)(A) and (2) and the shall be appointed under this clause by the ‘‘(ii) is submitted to the Secretary for a de- modifications required by paragraph (1)(B) President,’’, and by striking ‘‘and’’ at the termination of whether it satisfies the re- shall apply to years beginning after Decem- end of clause (i); quirement described in clause (i), and ber 31, 2001. (C) by striking ‘‘one-half shall be appointed ‘‘(iii) satisfies conditions prescribed by the (b) CONSENT REGULATION INAPPLICABLE TO by the elected leaders of Congress’’ in clause Secretary by regulation that appropriately CERTAIN DISTRIBUTIONS.— limit the availability of this subparagraph. (ii) and inserting ‘‘not more than 100 partici- (1) IN GENERAL.—The Secretary of the pants shall be appointed under this clause by Clause (ii) shall apply only to the extent pro- Treasury shall modify the regulations under the elected leaders of Congress’’, and by vided by the Secretary.’’. section 411(a)(11) of the Internal Revenue striking the period at the end of clause (ii) (2) EFFECTIVE DATES.— Code of 1986 to provide that the description (A) IN GENERAL.—The amendment made by of a participant’s right, if any, to defer re- and inserting ‘‘; and’’; paragraph (1) shall apply to years beginning ceipt of a distribution shall also describe the (D) by adding at the end the following new after December 31, 2003. consequences of failing to defer such receipt. clause: ‘‘(iii) The President, in consultation with (B) CONDITIONS OF AVAILABILITY.—Any con- (2) EFFECTIVE DATE.—The modifications re- dition of availability prescribed by the Sec- quired by paragraph (1) shall apply to years the elected leaders of Congress referred to in retary under regulations prescribed by the beginning after December 31, 2001. subsection (a), may appoint under this clause additional participants to the National Sum- Secretary under section 410(b)(1)(D) of the SEC. 612. ANNUAL REPORT DISSEMINATION. Internal Revenue Code of 1986 shall not apply mit. The number of such additional partici- (a) REPORT AVAILABLE THROUGH ELEC- before the first year beginning not less than pants appointed under this clause may not TRONIC MEANS.—Section 104(b)(3) of the Em- 120 days after the date on which such condi- exceed the lesser of 3 percent of the total ployee Retirement Income Security Act of tion is prescribed. number of all additional participants ap- 1974 (29 U.S.C. 1024(b)(3)) is amended by add- (c) LINE OF BUSINESS RULES.—The Sec- pointed under this paragraph, or 10. Such ad- ing at the end the following new sentence: retary of the Treasury shall, on or before De- ditional participants shall be appointed from ‘‘The requirement to furnish information cember 31, 2003, modify the existing regula- persons nominated by the organization re- under the previous sentence shall be satisfied tions issued under section 414(r) of the Inter- ferred to in subsection (b)(2) which is made if the administrator makes such information nal Revenue Code of 1986 in order to expand up of private sector businesses and associa- (to the extent that the Secretary determines reasonably available through electronic means or other new technology.’’. tions partnered with Government entities to appropriate) the ability of a pension plan to promote long term financial security in re- demonstrate compliance with the line of (b) EFFECTIVE DATE.—The amendment made by this section shall apply to reports tirement through savings and with which the business requirements based upon the facts Secretary is required thereunder to consult and circumstances surrounding the design for years beginning after December 31, 2000. and cooperate and shall not be Federal, and operation of the plan, even though the SEC. 613. TECHNICAL CORRECTIONS TO SAVER State, or local government employees.’’; plan is unable to satisfy the mechanical ACT. (5) in subsection (e)(3)(B), by striking tests currently used to determine compli- Section 517 of the Employee Retirement ance. Income Security Act of 1974 (29 U.S.C. 1147) is ‘‘January 31, 1998’’ in subparagraph (B) and inserting ‘‘May 1, 2001, May 1, 2005, and May SEC. 610. EXTENSION TO ALL GOVERNMENTAL amended— PLANS OF MORATORIUM ON APPLI- (1) in subsection (a), by striking ‘‘2001 and 1, 2009, for each of the subsequent summits, CATION OF CERTAIN NON- 2005 on or after September 1 of each year in- respectively’’; DISCRIMINATION RULES APPLICA- volved’’ and inserting ‘‘2001, 2005, and 2009 in (6) in subsection (f)(1)(C), by inserting BLE TO STATE AND LOCAL PLANS. the month of September of each year in- ‘‘, no later than 90 days prior to the date of (a) IN GENERAL.— volved’’; the commencement of the National Sum- (1) Subparagraph (G) of section 401(a)(5) of (2) in subsection (b), by adding at the end mit,’’ after ‘‘comment’’ in paragraph (1)(C); the Internal Revenue Code of 1986 and sub- the following new sentence: ‘‘To effectuate (7) in subsection (g), by inserting ‘‘, in con- paragraph (H) of section 401(a)(26) are each the purposes of this paragraph, the Secretary sultation with the congressional leaders amended by striking ‘‘section 414(d))’’ and all may enter into a cooperative agreement, specified in subsection (e)(2),’’ after ‘‘re- that follows and inserting ‘‘section 414(d)).’’. port’’; (2) Subparagraph (G) of section 401(k)(3) pursuant to the Federal Grant and Coopera- tive Agreement Act of 1977 (31 U.S.C. 6301 et (8) in subsection (i)— and paragraph (2) of section 1505(d) of the (A) by striking ‘‘beginning on or after Oc- Taxpayer Relief Act of 1997 are each amend- seq.), with the American Savings Education Council.’’; tober 1, 1997’’ in paragraph (1) and inserting ed by striking ‘‘maintained by a State or ‘‘2001, 2005, and 2009’’; and local government or political subdivision (3) in subsection (e)(2)— (A) by striking ‘‘Committee on Labor and (B) by adding at the end the following new thereof (or agency or instrumentality there- paragraph: of)’’. Human Resources’’ in subparagraph (D) and ‘‘(3) RECEPTION AND REPRESENTATION AU- (b) CONFORMING AMENDMENTS.— inserting ‘‘Committee on Health, Education, (1) The heading for subparagraph (G) of Labor, and Pensions’’; THORITY.—The Secretary is hereby granted section 401(a)(5) is amended to read as fol- (B) by striking subparagraph (F) and in- reception and representation authority lim- ited specifically to the events at the Na- lows: ‘‘GOVERNMENTAL PLANS.—’’. serting the following: (2) The heading for subparagraph (H) of ‘‘(F) the Chairman and Ranking Member of tional Summit. The Secretary shall use any section 401(a)(26) is amended to read as fol- the Subcommittee on Labor, Health and private contributions accepted in connection lows: ‘‘EXCEPTION FOR GOVERNMENTAL Human Services, and Education of the Com- with the National Summit prior to using PLANS.—’’. mittee on Appropriations of the House of funds appropriated for purposes of the Na- (3) Subparagraph (G) of section 401(k)(3) is Representatives and the Chairman and tional Summit pursuant to this paragraph.’’; amended by inserting ‘‘GOVERNMENTAL Ranking Member of the Subcommittee on and PLANS.—’’ after ‘‘(G)’’. Labor, Health and Human Services, and Edu- (9) in subsection (k)— (c) EFFECTIVE DATE.—The amendments cation of the Committee on Appropriations (A) by striking ‘‘shall enter into a contract made by this section shall apply to years be- of the Senate;’’; on a sole-source basis’’ and inserting ‘‘may ginning after December 31, 2001. (C) by redesignating subparagraph (G) as enter into a contract on a sole-source basis’’; SEC. 611. NOTICE AND CONSENT PERIOD RE- subparagraph (J); and and GARDING DISTRIBUTIONS. (D) by inserting after subparagraph (F) the (B) by striking ‘‘fiscal year 1998’’ and in- (a) EXPANSION OF PERIOD.— following new subparagraphs: serting ‘‘fiscal years 2001, 2005, and 2009’’.

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00077 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.029 pfrm02 PsN: H02PT1 H1812 CONGRESSIONAL RECORD — HOUSE May 2, 2001 TITLE VII—OTHER ERISA PROVISIONS is a participant in such plan during the plan first day of the plan year is determined tak- SEC. 701. MISSING PARTICIPANTS. year.’’. ing into consideration all of the employees (a) IN GENERAL.—Section 4050 of the Em- (b) DEFINITION OF NEW SINGLE-EMPLOYER of all members of the contributing sponsor’s ployee Retirement Income Security Act of PLAN.—Section 4006(a)(3) of the Employee controlled group. In the case of a plan main- 1974 (29 U.S.C. 1350) is amended by redesig- Retirement Income Security Act of 1974 (29 tained by two or more contributing sponsors, nating subsection (c) as subsection (e) and by U.S.C. 1306(a)(3)) is amended by adding at the the employees of all contributing sponsors inserting after subsection (b) the following end the following new subparagraph: and their controlled groups shall be aggre- new subsections: ‘‘(F)(i) For purposes of this paragraph, a gated for purposes of determining whether ‘‘(c) MULTIEMPLOYER PLANS.—The corpora- single-employer plan maintained by a con- the 25-or-fewer-employees limitation has tion shall prescribe rules similar to the rules tributing sponsor shall be treated as a new been satisfied.’’. in subsection (a) for multiemployer plans single-employer plan for each of its first 5 (c) EFFECTIVE DATES.— covered by this title that terminate under plan years if, during the 36-month period (1) SUBSECTION (a).—The amendments made section 4041A. ending on the date of the adoption of such by subsection (a) shall apply to plans estab- ‘‘(d) PLANS NOT OTHERWISE SUBJECT TO plan, the sponsor or any member of such lished after December 31, 2001. TITLE.— sponsor’s controlled group (or any prede- (2) SUBSECTION (b).—The amendments made ‘‘(1) TRANSFER TO CORPORATION.—The plan cessor of either) did not establish or main- by subsection (b) shall apply to plan years administrator of a plan described in para- tain a plan to which this title applies with beginning after December 31, 2001. graph (4) may elect to transfer a missing par- respect to which benefits were accrued for SEC. 704. AUTHORIZATION FOR PBGC TO PAY IN- ticipant’s benefits to the corporation upon substantially the same employees as are in TEREST ON PREMIUM OVERPAY- termination of the plan. the new single-employer plan. MENT REFUNDS. ‘‘(2) INFORMATION TO THE CORPORATION.—To ‘‘(ii)(I) For purposes of this paragraph, the (a) IN GENERAL.—Section 4007(b) of the Em- the extent provided in regulations, the plan term ‘small employer’ means an employer ployment Retirement Income Security Act administrator of a plan described in para- which on the first day of any plan year has, of 1974 (29 U.S.C. 1307(b)) is amended— graph (4) shall, upon termination of the plan, in aggregation with all members of the con- (1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’, provide the corporation information with re- trolled group of such employer, 100 or fewer and spect to benefits of a missing participant if employees. (2) by inserting at the end the following the plan transfers such benefits— ‘‘(II) In the case of a plan maintained by new paragraph: ‘‘(A) to the corporation, or two or more contributing sponsors that are ‘‘(2) The corporation is authorized to pay, ‘‘(B) to an entity other than the corpora- not part of the same controlled group, the subject to regulations prescribed by the cor- tion or a plan described in paragraph employees of all contributing sponsors and poration, interest on the amount of any (4)(B)(ii). controlled groups of such sponsors shall be overpayment of premium refunded to a des- ‘‘(3) PAYMENT BY THE CORPORATION.—If ben- aggregated for purposes of determining ignated payor. Interest under this paragraph efits of a missing participant were trans- whether any contributing sponsor is a small shall be calculated at the same rate and in ferred to the corporation under paragraph employer.’’. the same manner as interest is calculated for (1), the corporation shall, upon location of (c) EFFECTIVE DATE.—The amendments underpayments under paragraph (1).’’. the participant or beneficiary, pay to the made by this section shall apply to plans es- (b) EFFECTIVE DATE.—The amendment participant or beneficiary the amount trans- tablished after December 31, 2001. made by subsection (a) shall apply to inter- ferred (or the appropriate survivor benefit) SEC. 703. REDUCTION OF ADDITIONAL PBGC PRE- est accruing for periods beginning not earlier either— MIUM FOR NEW AND SMALL PLANS. than the date of the enactment of this Act. ‘‘(A) in a single sum (plus interest), or (a) NEW PLANS.—Subparagraph (E) of sec- SEC. 705. SUBSTANTIAL OWNER BENEFITS IN ‘‘(B) in such other form as is specified in tion 4006(a)(3) of the Employee Retirement TERMINATED PLANS. regulations of the corporation. Income Security Act of 1974 (29 U.S.C. (a) MODIFICATION OF PHASE-INOFGUAR- ‘‘(4) PLANS DESCRIBED.—A plan is described 1306(a)(3)(E)) is amended by adding at the end ANTEE.—Section 4022(b)(5) of the Employee in this paragraph if— the following new clause: Retirement Income Security Act of 1974 (29 ‘‘(A) the plan is a pension plan (within the ‘‘(v) In the case of a new defined benefit U.S.C. 1322(b)(5)) is amended to read as fol- meaning of section 3(2))— plan, the amount determined under clause lows: ‘‘(i) to which the provisions of this section (ii) for any plan year shall be an amount ‘‘(5)(A) For purposes of this paragraph, the do not apply (without regard to this sub- equal to the product of the amount deter- term ‘majority owner’ means an individual section), and mined under clause (ii) and the applicable who, at any time during the 60-month period ‘‘(ii) which is not a plan described in para- percentage. For purposes of this clause, the ending on the date the determination is graphs (2) through (11) of section 4021(b), and term ‘applicable percentage’ means— being made— ‘‘(B) at the time the assets are to be dis- ‘‘(I) 0 percent, for the first plan year. ‘‘(i) owns the entire interest in an unincor- tributed upon termination, the plan— ‘‘(II) 20 percent, for the second plan year. porated trade or business, ‘‘(i) has missing participants, and ‘‘(III) 40 percent, for the third plan year. ‘‘(ii) in the case of a partnership, is a part- ‘‘(ii) has not provided for the transfer of as- ‘‘(IV) 60 percent, for the fourth plan year. ner who owns, directly or indirectly, 50 per- sets to pay the benefits of all missing par- ‘‘(V) 80 percent, for the fifth plan year. cent or more of either the capital interest or ticipants to another pension plan (within the For purposes of this clause, a defined benefit the profits interest in such partnership, or meaning of section 3(2)). plan (as defined in section 3(35)) maintained ‘‘(iii) in the case of a corporation, owns, di- ‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.— by a contributing sponsor shall be treated as rectly or indirectly, 50 percent or more in Subsections (a)(1) and (a)(3) shall not apply a new defined benefit plan for each of its value of either the voting stock of that cor- to a plan described in paragraph (4).’’. first 5 plan years if, during the 36-month pe- poration or all the stock of that corporation. (b) EFFECTIVE DATE.—The amendment riod ending on the date of the adoption of For purposes of clause (iii), the constructive made by this section shall apply to distribu- the plan, the sponsor and each member of ownership rules of section 1563(e) of the In- tions made after final regulations imple- any controlled group including the sponsor ternal Revenue Code of 1986 shall apply (de- menting subsections (c) and (d) of section (or any predecessor of either) did not estab- termined without regard to section 4050 of the Employee Retirement Income Se- lish or maintain a plan to which this title 1563(e)(3)(C)). curity Act of 1974 (as added by subsection applies with respect to which benefits were ‘‘(B) In the case of a participant who is a (a)), respectively, are prescribed. accrued for substantially the same employ- majority owner, the amount of benefits guar- SEC. 702. REDUCED PBGC PREMIUM FOR NEW ees as are in the new plan.’’. anteed under this section shall equal the PLANS OF SMALL EMPLOYERS. (b) SMALL PLANS.—Paragraph (3) of section product of— (a) IN GENERAL.—Subparagraph (A) of sec- 4006(a) of the Employee Retirement Income ‘‘(i) a fraction (not to exceed 1) the numer- tion 4006(a)(3) of the Employee Retirement Security Act of 1974 (29 U.S.C. 1306(a)), as ator of which is the number of years from Income Security Act of 1974 (29 U.S.C. amended by section 702(b), is amended— the later of the effective date or the adoption 1306(a)(3)(A)) is amended— (1) by striking ‘‘The’’ in subparagraph date of the plan to the termination date, and (1) in clause (i), by inserting ‘‘other than a (E)(i) and inserting ‘‘Except as provided in the denominator of which is 10, and new single-employer plan (as defined in sub- subparagraph (G), the’’, and ‘‘(ii) the amount of benefits that would be paragraph (F)) maintained by a small em- (2) by inserting after subparagraph (F) the guaranteed under this section if the partici- ployer (as so defined),’’ after ‘‘single-em- following new subparagraph: pant were not a majority owner.’’. ployer plan,’’, ‘‘(G)(i) In the case of an employer who has (b) MODIFICATION OF ALLOCATION OF AS- (2) in clause (iii), by striking the period at 25 or fewer employees on the first day of the SETS.— the end and inserting ‘‘, and’’, and plan year, the additional premium deter- (1) Section 4044(a)(4)(B) of the Employee (3) by adding at the end the following new mined under subparagraph (E) for each par- Retirement Income Security Act of 1974 (29 clause: ticipant shall not exceed $5 multiplied by the U.S.C. 1344(a)(4)(B)) is amended by striking ‘‘(iv) in the case of a new single-employer number of participants in the plan as of the ‘‘section 4022(b)(5)’’ and inserting ‘‘section plan (as defined in subparagraph (F)) main- close of the preceding plan year. 4022(b)(5)(B)’’. tained by a small employer (as so defined) ‘‘(ii) For purposes of clause (i), whether an (2) Section 4044(b) of such Act (29 U.S.C. for the plan year, $5 for each individual who employer has 25 or fewer employees on the 1344(b)) is amended—

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00078 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.029 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1813 (A) by striking ‘‘(5)’’ in paragraph (2) and person on behalf of any such fiduciary or (i) be simple in form and easily maintained inserting ‘‘(4), (5),’’, and other person) with respect to a breach or vio- by multiple small employers, and (B) by redesignating paragraphs (3) lation described in paragraph (1) on or after (ii) provide for ready portability of benefits through (6) as paragraphs (4) through (7), re- the 30th day following receipt by such fidu- for all participants and beneficiaries, spectively, and by inserting after paragraph ciary or other person of written notice from (B) alternative arrangements providing (2) the following new paragraph: the Secretary of the violation, whether paid comparable benefits which may be estab- ‘‘(3) If assets available for allocation under voluntarily or by order of a court in a judi- lished by employee or employer associations, paragraph (4) of subsection (a) are insuffi- cial proceeding instituted by the Secretary and cient to satisfy in full the benefits of all in- under subsection (a)(2) or (a)(5). The Sec- (C) alternative arrangements providing dividuals who are described in that para- retary may, in the Secretary’s sole discre- comparable benefits to which employees may graph, the assets shall be allocated first to tion, extend the 30-day period described in contribute in a manner independent of em- benefits described in subparagraph (A) of the preceding sentence.’’. ployer sponsorship, and that paragraph. Any remaining assets shall (c) OTHER RULES.—Section 502(l) of the Em- (2) appropriate methods and strategies for then be allocated to benefits described in ployee Retirement Income Security Act of making pension plan coverage described in subparagraph (B) of that paragraph. If assets 1974 (29 U.S.C. 1132(l)) is amended by adding paragraph (1) more widely available to allocated to such subparagraph (B) are insuf- at the end the following new paragraph: American workers. ficient to satisfy in full the benefits de- ‘‘(5) A person shall be jointly and severally (b) MATTERS TO BE CONSIDERED.—In con- scribed in that subparagraph, the assets liable for the penalty described in paragraph ducting the study under subsection (a), the shall be allocated pro rata among individuals (1) to the same extent that such person is Secretary of Labor shall consider the ade- on the basis of the present value (as of the jointly and severally liable for the applicable quacy and availability of existing employee termination date) of their respective benefits recovery amount on which the penalty is pension benefit plans and the extent to described in that subparagraph.’’. based. which existing models may be modified to be (c) CONFORMING AMENDMENTS.— ‘‘(6) No penalty shall be assessed under this more accessible to both employees and em- (1) Section 4021 of the Employee Retire- subsection unless the person against whom ployers. ment Income Security Act of 1974 (29 U.S.C. the penalty is assessed is given notice and (c) REPORT.—Not later than 18 months 1321) is amended— opportunity for a hearing with respect to the after the date of the enactment of this Act, (A) in subsection (b)(9), by striking ‘‘as de- violation and applicable recovery amount.’’. the Secretary of Labor shall report the re- fined in section 4022(b)(6)’’, and (d) EFFECTIVE DATES.— sults of the study under subsection (a), to- (B) by adding at the end the following new (1) IN GENERAL.—The amendments made by gether with the Secretary’s recommenda- subsection: this section shall apply to any breach of fi- tions, to the Committee on Education and ‘‘(d) For purposes of subsection (b)(9), the duciary responsibility or other violation of the Workforce and the Committee on Ways term ‘substantial owner’ means an indi- part 4 of subtitle B of title I of the Employee and Means of the House of Representatives vidual who, at any time during the 60-month Retirement Income Security Act of 1974 oc- and the Committee on Health, Education, period ending on the date the determination curring on or after the date of enactment of Labor, and Pensions and the Committee on is being made— this Act. Finance of the Senate. Such recommenda- ‘‘(1) owns the entire interest in an unincor- (2) TRANSITION RULE.—In applying the tions shall include one or more model plans porated trade or business, amendment made by subsection (b) (relating described in subsection (a)(1)(A) and model ‘‘(2) in the case of a partnership, is a part- to applicable recovery amount), a breach or alternative arrangements described in sub- ner who owns, directly or indirectly, more other violation occurring before the date of sections (a)(1)(B) and (a)(1)(C) which may than 10 percent of either the capital interest enactment of this Act which continues after serve as the basis for appropriate adminis- or the profits interest in such partnership, or the 180th day after such date (and which may trative or legislative action. ‘‘(3) in the case of a corporation, owns, di- have been discontinued at any time during (d) STUDY ON EFFECT OF LEGISLATION.—Not rectly or indirectly, more than 10 percent in its existence) shall be treated as having oc- later than 5 years after the date of the enact- value of either the voting stock of that cor- curred after such date of enactment. ment of this Act, the Secretary of Labor poration or all the stock of that corporation. SEC. 707. BENEFIT SUSPENSION NOTICE. shall submit to the Committee on Education For purposes of paragraph (3), the construc- (a) MODIFICATION OF REGULATION.—The and the Workforce of the House of Rep- tive ownership rules of section 1563(e) of the Secretary of Labor shall modify the regula- resentatives and the Committee on Health, Internal Revenue Code of 1986 shall apply tion under section 203(a)(3)(B) of the Em- Education, Labor, and Pensions of the Sen- (determined without regard to section ployee Retirement Income Security Act of ate a report on the effect of the provisions of 1563(e)(3)(C)).’’. 1974 (29 U.S.C. 1053(a)(3)(B)) to provide that this Act on pension plan coverage, including (2) Section 4043(c)(7) of such Act (29 U.S.C. the notification required by such regula- any change in— 1343(c)(7)) is amended by striking ‘‘section tion— (1) the extent of pension plan coverage for 4022(b)(6)’’ and inserting ‘‘section 4021(d)’’. (1) in the case of an employee who returns low and middle-income workers, (d) EFFECTIVE DATES.— to work for a former employer after com- (2) the levels of pension plan benefits gen- (1) IN GENERAL.—Except as provided in mencement of payment of benefits under the erally, paragraph (2), the amendments made by this plan shall— (3) the quality of pension plan coverage section shall apply to plan terminations— (A) be made during the first calendar generally, (A) under section 4041(c) of the Employee month or payroll period in which the plan (4) workers’ access to and participation in Retirement Income Security Act of 1974 (29 withholds payments, and pension plans, and U.S.C. 1341(c)) with respect to which notices (B) if a reduced rate of future benefit ac- (5) retirement security. of intent to terminate are provided under cruals will apply to the returning employee TITLE VIII—PLAN AMENDMENTS section 4041(a)(2) of such Act (29 U.S.C. (as of the first date of participation in the SEC. 801. PROVISIONS RELATING TO PLAN 1341(a)(2)) after December 31, 2001, and plan by the employee after returning to AMENDMENTS. (B) under section 4042 of such Act (29 U.S.C. work), include a statement that the rate of (a) IN GENERAL.—If this section applies to 1342) with respect to which proceedings are future benefit accruals will be reduced, and any plan or contract amendment— instituted by the corporation after such (2) in the case of any employee who is not (1) such plan or contract shall be treated as date. described in paragraph (1)— being operated in accordance with the terms (2) CONFORMING AMENDMENTS.—The amend- (A) may be included in the summary plan of the plan during the period described in ments made by subsection (c) shall take ef- description for the plan furnished in accord- subsection (b)(2)(A); and fect on January 1, 2002. ance with section 104(b) of such Act (29 (2) except as provided by the Secretary of SEC. 706. CIVIL PENALTIES FOR BREACH OF FI- U.S.C. 1024(b)), rather than in a separate no- the Treasury, such plan shall not fail to DUCIARY RESPONSIBILITY. tice, and meet the requirements of section 411(d)(6) of (a) IMPOSITION AND AMOUNT OF PENALTY (B) need not include a copy of the relevant the Internal Revenue Code of 1986 or section MADE DISCRETIONARY.—Section 502(l)(1) of plan provisions. 204(g) of the Employee Retirement Income the Employee Retirement Income Security (b) EFFECTIVE DATE.—The modification Security Act of 1974 by reason of such Act of 1974 (29 U.S.C. 1132(l)(1)) is amended— made under this section shall apply to plan amendment. (1) by striking ‘‘shall’’ and inserting years beginning after December 31, 2001. (b) AMENDMENTS TO WHICH SECTION AP- ‘‘may’’, and SEC. 708. STUDIES. PLIES.— (2) by striking ‘‘equal to’’ and inserting (a) MODEL SMALL EMPLOYER GROUP PLANS (1) IN GENERAL.—This section shall apply to ‘‘not greater than’’. STUDY.—As soon as practicable after the any amendment to any plan or annuity con- (b) APPLICABLE RECOVERY AMOUNT.—Sec- date of the enactment of this Act, the Sec- tract which is made— tion 502(l)(2) of such Act (29 U.S.C. 1132(l)(2)) retary of Labor, in consultation with the (A) pursuant to any amendment made by is amended to read as follows: Secretary of the Treasury, shall conduct a this Act, or pursuant to any regulation ‘‘(2) For purposes of paragraph (1), the study to determine— issued under this Act; and term ‘applicable recovery amount’ means (1) the most appropriate form or forms of— (B) on or before the last day of the first any amount which is recovered from any fi- (A) employee pension benefit plans which plan year beginning on or after January 1, duciary or other person (or from any other would— 2004.

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00079 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.029 pfrm02 PsN: H02PT1 H1814 CONGRESSIONAL RECORD — HOUSE May 2, 2001 In the case of a governmental plan (as de- is to encourage those who have little if fied retirement plan made on behalf of fined in section 414(d) of the Internal Rev- any disposable income to make the ef- their non-highly-compensated employ- enue Code of 1986), this paragraph shall be fort to save, or if they can, to save ees. Qualifying contributions would be applied by substituting ‘‘2006’’ for ‘‘2004’’. even more. The credit would be up to 50 both non-elected employer contribu- (2) CONDITIONS.—This section shall not apply to any amendment unless— percent of annual contributions to a tions and employer matching contribu- (A) during the period— traditional individual retirement ac- tions, up to a total of 3 percent of com- (i) beginning on the date the legislative or count or to a qualified pension plan pensation for non-highly-compensated regulatory amendment described in para- like a 401(k), 403(b), or a 457 plan. employees. graph (1)(A) takes effect (or in the case of a It is important to understand that This is important to hear, Mr. Speak- plan or contract amendment not required by this amendment does not establish a er. The additional cost of this amend- such legislative or regulatory amendment, new savings vehicle. It only establishes ment is $46 billion over 10 years. When the effective date specified by the plan); and an incentive to use current pension ve- coupled with the cost of H.R. 10, the (ii) ending on the date described in para- graph (1)(B) (or, if earlier, the date the plan hicles. The eligible contribution would total cost remains under $100 billion. or contract amendment is adopted), not exceed $2,000, thus resulting in a We have managed to fit that into our the plan or contract is operated as if such maximum credit of $1,000 when the pro- $900 billion tax cut proposal on the plan or contract amendment were in effect; posal is fully phased in. The credit Democratic side. Surely the other side and amount phases down as income in- would not be asking too much if they (B) such plan or contract amendment ap- creases, phasing out at $75,000 for a could put that into the $1.6 trillion tax plies retroactively for such period. married couple. cut that they have offered. It is simply The SPEAKER pro tempore. Pursu- The two other credits that would be today a matter of political will. ant to House Resolution 127, the gen- added to the bill would reward small I would predict when the legislation tleman from Massachusetts (Mr. NEAL) businesses for establishing new pension comes back from the Senate, it will in- and a Member opposed each will con- plans. Many small employers would volve at least one and perhaps two of trol 30 minutes. like to establish qualified pension these amendments. Does the gentleman from Ohio (Mr. plans for their employees but they need In conclusion, let me say what I have PORTMAN) seek to control the time in some help in getting there. said repeatedly, I think the gentleman opposition to the amendment? We are all aware of how small em- from Ohio (Mr. PORTMAN) and the gen- Mr. PORTMAN. I do, Mr. Speaker. ployers struggle to attract and retain tleman from Maryland (Mr. CARDIN) The SPEAKER pro tempore. The gen- quality employees, particularly today. did a good job with this legislation. I tleman from Ohio (Mr. PORTMAN) will They can be successful in this effort have supported expanding IRA limits be recognized. only if they can compete with large since the day I arrived in the House 13 The Chair recognizes the gentleman businesses and the benefits they offer years ago, and along with the gen- from Massachusetts (Mr. NEAL) for 30 to their employees. Moreover, the 38 tleman from California (Mr. THOMAS), minutes. million employees who work in small carried the ROTH IRA in the House. Mr. NEAL of Massachusetts. Mr. businesses deserve the same secured re- There are many good provisions in Speaker, I yield myself such time as I tirement as employees in large busi- this bill. But at the same time, we have may consume. nesses. Yet, pension coverage of this a remarkable opportunity today. With Mr. Speaker, I would like to begin by group of workers continues to lag be- just a couple of small changes on the pointing out that this amendment is hind the coverage available for employ- edges, which the gentleman from Ohio being offered by myself, the gentleman ees of large companies. (Mr. PORTMAN) has at least grudgingly from New York (Mr. RANGEL), the gen- In a recent survey conducted by the acknowledged in committee were tleman from New Jersey (Mr. AN- Employee Benefit Research Institute, worthwhile, we could pass this bill DREWS), and the gentleman from Mas- 65 percent of small employers stated today almost unanimously here. sachusetts (Mr. TIERNEY). that the availability of tax credits was If we do not accept this challenge The amendment is comprised of three a significant factor in their decision on today, we are going to be back here parts, and is the same as the amend- whether to offer a pension plan to their next year and the year after and the ment I offered in the Committee on employees, second only to an increase year after. Ways and Means last week. in business profits. I do not know what is so difficult In the last hour, we have really gone Sixty-five percent is a most substan- today about addressing a couple of through a very helpful debate. I think tial number. Clearly the two small small issues that would allow low- and it demonstrates that we are not as far business credits in the amendment moderate-income Americans who go to apart on this legislation as some might would go a long way to increasing the work every day to participate in a good think. number of small business pension and predictable retirement savings Even though our differences may not plans. The gentleman from Ohio (Mr. plan. I know in his heart that the gen- be that large, they remain substantial PORTMAN) acknowledged this in the tleman from Ohio (Mr. PORTMAN) would for low- and moderate-income workers. committee debate. really like to do that today. He has As I said earlier, if we do not deal with The first small business credit would that opportunity with simply a nod to the issue of providing direct incentives provide a tax credit for expenses in- move on his side, and I hope that as for small businesses to offer pension curred by small businesses, employers this debate proceeds for the next few plans and direct incentives for workers with 100 or fewer employees, for costs minutes we will have a chance to say, to participate, then we are going to be associated with starting up new pen- look, there are many portions of this right back here again in the near fu- sion plans. Under this credit, small em- bill that are indeed desirable, but there ture arguing over these same issues. ployers would be eligible to claim a 3- are also two small portions of this bill While 70.8 percent of workers with year tax credit for an amount equal to on which we could improve upon today. adjusted gross incomes between $75,000 50 percent of administrative and retire- Mr. Speaker, I reserve the balance of and $100,000 participate in an employer ment education expenses incurred as a my time. pension plan, only 17.9 percent of those result of offering a new qualified pen- Mr. PORTMAN. Mr. Speaker, I yield workers whose gross adjusted income is sion plan. myself such time as I may consume. between $10,000 and $15,000 participate. Eligible expenses for the credit would Mr. Speaker, I applaud my friend, the The current system clearly fails be capped at $2,000 for the first year gentleman from Massachusetts, for his these workers with little or no dispos- and $1,000 for the second and third concern about expanding pension cov- able income. I do not believe that H.R. years. erage to low- and moderate-income 10 in its current form will achieve The second small business credit Americans. That is, as he knows, pre- much success with these workers, as would allow these same employers to cisely what we are trying to do in this well. This amendment deals with these be eligible for a tax credit for employer underlying legislation. issues by establishing a refundable re- contributions to a pension plan. This The small changes around the edges tirement savings credit for low- and credit would be equal to 50 percent of that he was just talking about happen moderate-income workers. The purpose the employer contributions to a quali- to just about double the cost of the

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00080 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.029 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1815 bill. The underlying bill is about $52 man’s proposal today, I have some con- the impact of this, and they did not billion over 10 years, which we hope to cerns about how that would work. It have it before; but they have now pro- be able to fit into the reduced tax bill does not cover the plans that many vided it. Essentially what they show is number. The amendments the gen- small businesses use, the SIMPLE plan, that two-thirds, two-thirds, of the ben- tleman is offering through the sub- the SEP plan, in any way. It also does efit would go to families making $75,000 stitute add another $45 billion, taking not cover some of the other plans, the or more. it up to $97 billion over 10 years, so it 403(b)s, 457s, and so on. It also would be So, essentially, we have a bill two- is doubling the cost. These are not very difficult for businesses to admin- thirds of it IRAs and two-thirds of the small changes. ister the way in which this credit is benefit going to families with incomes In terms of the changes, I do like the put together. of $75,000 and more. Almost half would start-up credit, which is $177 million The Clinton administration Treasury go to families with incomes of $100,000 over the 10-year period. The other two, Department had some of these changes or more. And those are not all rich peo- the employer credit, which is $5.4 bil- they wanted to see to our underlying ple. Many of these families, $75,000 or lion, and the individual credit, $35.5 bil- legislation. We thought they were ill- $100,000, they are hard working. In lion, I have problems with. advised because they went the wrong most cases both husband and wife are The gentleman mentioned that the way, adding more complexity, more working, and they are earning their in- Senate is likely to add these. I think regulation and regulations. come. They are not just clipping cou- the Senate is likely to do something in b 1345 pons. terms of the small business start-up, But, look, that is the fact; that most which is, again, a relatively small part. So I do not think this is the way to of the benefit of most of the cost of It is tinkering around the edges, I be- do it. this would go to families making lieve, in terms of the costs and impact Instead, let us stick to the under- $75,000 and more. And, essentially, I it will have, but it is important for lying bill, of which I appreciate the think this undercuts the notion that small business. gentleman’s support. It is focused ex- this is a bill aimed at mainly low- and But I do not think they are going to actly on these workers, focused on try- middle-income families. Surely not do the employer credit or the indi- ing to expand the coverage to the small low-income families and surely not vidual credit. I say that because legis- companies. Remember, only 19 percent most middle-income families. lation that was introduced on a bipar- of companies with 25 or fewer employ- What the gentleman from Massachu- tisan basis in the Senate by the Chair ees offer any kind of pension today. setts (Mr. NEAL) is suggesting is that and ranking members of the Finance Those are the people we are trying to we expand this bill so that we try to Committee did not include a refund- help. Those are the people we are try- bring everybody into the system, and able tax credit. It was a nonrefundable ing to encourage and incentivize to that is a very good idea. And to suggest credit at a much lower cost, as a re- offer a plan. that a tax credit is a bad idea because sult. So I hope we can stick to that today, of the error rate, we have argued this Second, on the merits of this, having rather than doubling the cost of the endlessly within Ways and Means. The a refundable tax credit does create a bill with something that is not tested, EITC error rate has been going down. new entitlement program. At a time something that is going to create a lot It is not clear it is much higher than a when we are struggling to try to make more complexity. lot of other error rates. the earned income tax credit work in Mr. Speaker, I reserve the balance of And there is the argument that tax terms of the compliance costs, and the my time. credits are suspect. The majority lead- Treasury Department under the Clin- Mr. NEAL of Massachusetts. Mr. er here has proposed a refundable ton administration told us there was a Speaker, I yield myself 30 seconds. health insurance tax credit. If it is mispayment of about 25 percent under That is precisely the point. We can good enough for health insurance, I that program, I think it would be ill fit $100 billion into a $900 billion tax would think it is good enough for a advised for us to start a new entitle- cut proposal on the Democratic side, pension program. ment program until we have at least and the gentleman from Ohio (Mr. So I would hope we would take this tried some of these other things that PORTMAN) has acknowledged they find seriously and that we would pass it. At we are talking about under this pro- difficulty in including it in a $1.6 tril- the least, if the majority here is not posal. lion tax cut, even though, as he has going to vote for it, is going to march What we are talking about in this pointed out, and again I think in a very in lockstep against it, I hope there will proposal is primarily expanding pen- sincere form, that there is at least part be adequate numbers of people voting sion coverage to small- and mid-sized of this he believes at the end of the day for this so we send a message to the businesses where there is very little is desirable. Senate that they should try to do bet- coverage today. Mr. Speaker, I yield 3 minutes to the ter. We can do better than this. Again, I commend the gentleman for gentleman from Michigan (Mr. LEVIN). The strong provisions in this bill can focusing on that, but that is what we (Mr. LEVIN asked and was given per- be enhanced by spreading the net of do in our underlying legislation. This mission to revise and extend his re- pension reform and pension participa- is where most of the low- and mod- marks.) tion to millions of other workers and erate-income workers are working Mr. LEVIN. Mr. Speaker, I wanted to millions of other families in the United today, where the folks are working who join the debate because it is an impor- States of America. That is good public do not have pension coverage. We are tant debate. Pension reform and expan- policy. So I would hope we would pass trying to do this through the increased sion are clearly necessary. There are this amendment as part of this bill limits in this legislation, through the some very strong provisions in this which will certainly pass the House. complexity provisions, which are very bill, and I think we all appreciate the Mr. PORTER. Mr. Speaker, I yield 31⁄2 important to get at the costs and bur- work of the chief sponsors of this. minutes to the gentleman from Florida dens. We know from the surveys that I do, though, want to very much rise (Mr. SHAW), a member of the Com- have been done they will help to ex- in support of the amendment of the mittee on Ways and Means, chairman pand coverage. gentleman from Massachusetts (Mr. of the Subcommittee on Social Secu- Also, though in terms of the port- NEAL) and address the underlying rea- rity. ability provisions, there will be faster sons for it and to respond to some of Mr. SHAW. Mr. Speaker, I thank the vesting. All of this is going to help pre- the criticisms. gentleman for yielding me this time. cisely the people that the gentleman’s We all agree the savings rate needs to I think it is important to point out refundable tax credit is aimed at, and be increased, and I hope we all agree that there is great bipartisan support without all of the complexity and all of that we want more and more people for the underlying bill in this Chamber. the compliance problems that are in- into this effort. Two-thirds of the cost And although it does have broad bipar- herent in that kind of a problem. of this bill are the IRA expansion. Two- tisan support, we have heard a few of Finally, on the business tax credit, thirds. I asked the Joint Tax Com- our colleagues say that the proposed which is the third piece of the gentle- mittee to put together an analysis of reforms in this bill are a giveaway to

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00081 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.072 pfrm02 PsN: H02PT1 H1816 CONGRESSIONAL RECORD — HOUSE May 2, 2001 those who are already wealthy; that speech and review this particular bill Now that tells us that right across this bill will make it less likely rather when we bring out individual retire- the board we have a lot of work to do, than more likely that companies will ment accounts for American workers but nowhere do we have more work to sponsor plans. as part of Social Security. It is the key do in this than in the plight of For the last 20 years, we have heard to saving Social Security, and I think moderate- to middle-earning house- that cutbacks in benefits and contribu- the refundable tax credit going into in- holds. For me, the situation for this tion limits and so-called top-heavy and dividual retirement accounts is some- Congress is to basically pay now or pay other provisions were necessary to in- thing I look forward to the gentleman later. Either we enhance the ability of crease plan coverage and benefits for supporting. these families to accumulate some of the most vulnerable employees. So Mr. NEAL of Massachusetts. Mr. their own assets in retirement savings, what has happened? Approximately 50 Speaker, I yield myself 30 seconds. help them accumulate assets to pay for million Americans now lack private There was no one on this side who their own retirement income security, pension coverage, while senior execu- said that this was a giveaway to the or we are going to have to provide gov- tives have made increasing use of non- rich in the 2 hours of debate that we ernment programs in the future for qualified plans. have been pursuing here. I think, in- destitute elderly that were unable to Since 1985, the number of defined stead, we suggested it was not a bal- acquire savings. benefit pension plans has dropped from anced proposal, in the sense that the Ten percent of those presently eligi- 114,000 to 45,000. In 1993, the year after very people that the gentleman from ble are saving in IRAs. Ten percent. So Congress reduced the compensation Florida (Mr. SHAW) has referenced here, for us to say, well, now you can save limit for calculating pension benefits people that make under $30,000 a year, $5,000 as opposed to $2,000 really may from $235,425 to $150,000, the number of they are the ones that depend upon So- fall short of what they need. If they companies in nonqualified plans tripled cial Security. cannot save $2,000, let me tell my col- We are never going to have a healthy from 20 to 67 percent. leagues, they are not going to save discussion about Social Security and Only 20 percent of small businesses $5,000. We need to help them save. I be- its future in this country as long as we with 25 or fewer workers now offer a re- lieve conceptually the simplest way to leave those people out of defined pen- tirement plan. Our savings rate is one- do it on a universal basis is by taking half of 1 percent, which is the lowest sion benefit plans. Mr. Speaker, I yield 3 minutes to the that tax deduction and making a tax level since the Great Depression. Sev- gentleman from North Dakota (Mr. credit. enty-six million baby boomers will re- I would frankly structure it slightly POMEROY), one of the experts in the tire within the next 10 years. But stud- House on retirement savings plans, a differently than the substitute puts ies show older baby boomers have less friend and a member of the Committee this provision forward, but I think the than 40 percent of the savings needed on Ways and Means, and a very com- substitute offers a way for us to exam- to avoid a decline in their standard of petent individual. ine the legitimacy of strengthening living after they retire. Mr. POMEROY. Mr. Speaker, I thank savings incentives for modest-earning Social Security was never designed the gentleman for yielding me this households. It is basically market prin- to be the sole source of retirement in- time and for his kind remarks. I be- ciples. They need more incentive to come. It was intended to be one leg of lieve he has made a significant con- save. Let us help them save, as the sub- a three-legged stool that included em- tribution to the debate today by offer- stitute does. ployer-sponsored retirement plans and ing the substitute, which I intend to Mr. PORTMAN. Mr. Speaker, I yield individual savings. This bill will re- support. 2 minutes to the gentlewoman from store the incentive for qualified plans As I said when we considered this Connecticut (Mrs. JOHNSON), who, as and increase savings, which will benefit last Congress, the problem with chair of the Subcommittee on Over- all American workers. Portman-Cardin is not what is in the sight, was one of the people who helped The bill restores the contribution bill, the problem is what is left out. draft this legislation, and continues to and benefit amounts to what they And what is left out is a more mean- be very important to focusing this leg- would have been had they not been re- ingful incentive to those who are hav- islation on defined benefit plans and on peatedly cut back. In order for highly ing the most difficult time saving, small businesses. paid employees to take advantage of moderate-earning households, that b 1400 the higher limits and still pass the simply do not have adequate discre- nondiscrimination test, companies will tionary income. For that reason we Mrs. JOHNSON of Connecticut. Mr. have to provide greater benefits to all have structured the substitute as an Speaker, I thank the gentleman for other workers. The bill’s simplifica- additive proposal. It takes all of yielding me this time. tions of the top-heavy and nondiscrim- Portman-Cardin and adds this to it. Mr. Speaker, I rise in strong support inatory rules do not weaken the pro- After all, the last two Congresses of the underlying bill and in equally tection afforded to our workers. have passed a variety of new incentives strong opposition to the amendment My colleagues also give little atten- for saving for retirement, but have before us. First of all, the amendment tion to the large number of measures done virtually nothing for the $50,000 does not take into account the remark- in the bill that are specifically de- and below household who already had able effect this bill is going to have on signed to promote the retirement secu- the tax deductible IRA. I think we the availability of pensions to employ- rity of rank-and-file workers. The bill ought to look at what is actually hap- ees across America. It particularly reduces the vesting period for em- pening out there. does not seem to notice that by mak- ployer-matching contributions from 5 In a recent study commissioned by ing pension plans far simpler to offer to to 3 years, ensuring that amounts are the Consumer Federation of America, your employees, stripping out a lot of not forfeited when workers change jobs and conducted by Ohio State economist the regulation, stripping out the cost, or leave the workforce for care of their Catherine Montalto, indicates exactly many, many employers are going to be children. the problem. Only 44 percent of house- able to offer their employees a defined Workers 50 years and older can make holds in this country are saving at a benefit pension plan. additional catch-up contributions to rate that will provide them an ade- We have seen a sharp decline in the their retirement plan. The security of quate retirement income. Not surpris- number of defined benefit pension the private employer-sponsored retire- ingly, that is differentiated exactly plans offered by employers in America ment system will be strengthened when along earnings lines. Twenty-three per- in recent years because of the heavy all workers, regardless of income level, cent of those earning between $10,000 regulation. They often require no con- share a significant stake in their same and $25,000 have adequate savings; one tribution by the employee, and they retirement plan. This bill provides out of four, one out of four of those guarantee you a benefit when you re- positive incentives for employers to do earning below $25,000. Fifty-four per- tire, as opposed to the defined con- exactly that. cent of those $50,000 to a $100,000 house- tribution plans which only guarantee And I would hope that the gentleman holds have adequate savings; 69 percent you what benefit your contribution from Massachusetts would review his of those over $100,000. was able to create.

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00082 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.077 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1817 Why are we helping low-income peo- the pay grade. They are in industries into place. Low- and moderate-income ple by offering them a defined con- where margins are very thin, and I be- people normally do not have the ability tribution plan when by expanding the lieve we can put any amount of tax in- to save on their own. They save at number of defined benefit plans, which centives for an employer in the bill, work. often do not require any contribution, and those employees cannot because Mr. NEAL of Massachusetts. Mr. we are going to create a far better op- they cannot afford to reach pension Speaker, I yield 3 minutes to the gen- tion for them? coverage. A plan that says the govern- tlewoman from Ohio (Mrs. JONES). Furthermore, many defined benefit ment will match part of the contribu- Mrs. JONES of Ohio. Mr. Speaker, I plans also do allow you to contribute. tions for these employees is one that thank the gentleman for yielding me The very people that they are con- will work. this time. cerned about, the amendment is con- I agree with the gentleman from Mr. Speaker, I want to commend the cerned about, the low-income worker North Dakota (Mr. POMEROY). We are gentleman from Maryland (Mr. CARDIN) who works for a small business, the either going to pay now or pay later. and the gentleman from Ohio (Mr. person earning $10,000 to $15,000, they People are going to live longer, their PORTMAN) for the underlying bill. I am are the people who get the biggest bang resources are going to be stretched fur- on record supporting the underlying from the tax cut. That is why our tax ther. If they do not have private pen- bill, but I rise in support of the Demo- bill that gives those low-income work- sion coverage, the Treasury will be cratic substitute because I think it ad- ers the biggest tax break between the called upon to meet those needs in fu- dresses an area that is not addressed by drop to a 10 percent bracket, the mar- ture years. This is a wise amendment the underlying bill. riage penalty relief, the child relief, that complements the underlying bill. I Since I came to Congress, a lot of and the bracket drops, these are the urge its adoption. people say, what are you going to be very people who are going to get more Mr. PORTMAN. Mr. Speaker, I yield remembered for when you leave Con- dollars and can put those dollars into 2 minutes to the gentleman from Texas gress. One of the things that I want to savings vehicles. (Mr. BRADY), a member of the Com- be remembered for is helping my con- But if they put them into savings ve- mittee on Ways and Means, who has stituents and people across the country hicles like a defined benefit plan, they taken an active role on this legislation. develop economic wealth, because I be- will get the expander effect of the em- Mr. BRADY of Texas. Mr. Speaker, I lieve economic empowerment is the ployer contribution. So this bill is dy- join others in congratulating the bipar- tool that is the equalizer for all people namite for low-income workers and tisan authors of this bill, the gen- in this country. small businesses. tleman from Ohio (Mr. PORTMAN) and If we can give them economic suffi- In a country where past pension pol- the gentleman from Maryland (Mr. ciency, then they can live in wonderful icy has forced employers to drop their CARDIN), because we make saving so homes where they can raise their fami- pensions because the regulations have difficult in this country. Every one of lies. If we can give them economic suf- been so heavy and so complicated, and us knows that to have a good, safe re- ficiency, they can afford to pay the the court costs so great, for a country tirement, we have to have a three- taxes to support their school systems that now has 50 percent of its working legged stool: Social Security that you and feel good about themselves and people working for employers who do can count on, personal savings in the make a decent wage and take a vaca- not provide any pension plan at all for bank, and a retirement plan at work. tion once in awhile. their employees, this bill is an impera- President Bush has signaled today One of the keys to economic wealth tive to pass now in the full form of its that he is dead serious about pre- development is the ability to purchase underlying legislation. serving Social Security once and for a home. The home becomes the wealth Mr. NEAL of Massachusetts. Mr. all. The timing of this bill could not be that one generation passes to the next Speaker, I yield 2 minutes to the gen- better because we are trying to address in a low- or moderate-income family. tleman from New Jersey (Mr. AN- the other two legs of that stool: per- Another way is a savings account, and DREWS), who is the ranking member on sonal savings and retirement plans at one of the ways that we begin to look the Subcommittee on Employer-Em- work. at or deal with low-income families ployee Relations. Some people call this tax relief. I dis- who have attempted to begin the proc- (Mr. ANDREWS asked and was given agree. I do not know why we tax people ess of saving is through IDAs, where we permission to revise and extend his re- at all for savings. I think we ought to match the income, that match the dol- marks.) encourage them to save for their re- lars that they save through saving pro- Mr. ANDREWS. Mr. Speaker, I thank tirement, for education, for college, for grams. In Ohio right now, we have a the gentleman for yielding me this health care. This is merely Washington wonderful program called Cleveland time. getting out of the way and allowing Saves that is being funded by the Ford Mr. Speaker, I rise in support of this people to put money aside. Foundation to encourage low- and amendment of which I am pleased to be I think the original bill is much moderate-income families to save. a cosponsor. I am a strong supporter of stronger for small businesses and for The third way is a retirement plan. It the underlying bill, but I believe this low- and moderate-income savers be- is my belief that the retirement plan amendment complements the under- cause of a simple approach. Under the under H.R. 10 does not focus in on the lying bill in a very positive way. Sev- amendment that is proposed right now, low- and moderate-income worker, and enty-nine percent of working Ameri- we basically say to small businesses, if that the tax cut that is being proposed cans who work for an employer with 25 you are eligible under plan A and insti- or is on the table does not truly benefit or fewer employees do not have a pen- tute plans B, C and D, and file under E the low- and moderate-income worker. sion. and F, you may be eligible for a partial The only way we can assist them in I think that some of those Americans tax credit. In other words, we will pay creating their own retirement plan is will be helped by the underlying bill, you to file more paperwork to endure through the adoption of the substitute but I think those who work in narrow- all of this paperwork. bill that is being offered by my col- margin industries, that is, companies The Portman plan does the opposite. league, the gentleman from Massachu- with small profit margins and particu- It says regulation complicates and setts (Mr. NEAL). larly those people who work at the frustrates savings. It is very, very important that we entry level, will not be largely helped We are going to remove the regula- start now to benefit families in low- by the underlying bill. They will be tion. We are going to encourage small and moderate-income areas to build re- helped by the substitute by the gen- businesses to set up plans for their em- tirement plans so they understand, as tleman from Massachusetts (Mr. ployees. We know it works because in time goes along, they will have some- NEAL). 1984 when we started regulating these thing in addition to Social Security to This amendment is about the people plans, the number of savings plans support their families. who wait on tables and work in the went from 114,000 to 45,000. We drove Mr. Speaker, again I say to my col- child care centers and work in the re- proven savers out of the market, and it leagues, the gentleman from Ohio (Mr. tail stores. They are at the bottom of is time to put those saving plans back PORTMAN) and the gentleman from

VerDate 02-MAY-2001 01:58 May 03, 2001 Jkt 089060 PO 00000 Frm 00083 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.093 pfrm02 PsN: H02PT1 H1818 CONGRESSIONAL RECORD — HOUSE May 2, 2001 Maryland (Mr. CARDIN), thank you for tleman from Vermont (Mr. SANDERS) ments that were made to me by the offering this legislation, but step a lit- whose pitched battle with IBM is on gentleman from Minnesota (Mr. GUT- tle bit to the left or a little bit to the the cutting edge of what the gentleman KNECHT), the gentleman from Vermont right, whichever way you choose to ex- from Minnesota (Mr. GUTKNECHT) just (Mr. SANDERS), and others. So we do press it, and adopt the Democratic sub- pointed out. address the issue, and we do it in a re- stitute on top of this underlying bill, Mr. SANDERS. Mr. Speaker, I thank sponsible way. and then all Americans in this country the gentleman for yielding me this Mr. Speaker, I yield 2 minutes to the will be able to benefit from your pro- time, and I want to echo the remarks gentleman from California (Mr. posal. of the gentleman from Mr. Minnesota ROYCE). Mr. PORTMAN. Mr. Speaker, I yield (Mr. GUTKNECHT). Mr. ROYCE. Mr. Speaker, I want to 2 minutes to the gentleman from Min- Mr. Speaker, I think there is a lot to begin by thanking the gentleman from nesota (Mr. GUTKNECHT). be said for the underlying bill. I think Ohio (Mr. PORTMAN) and the gentleman Mr. GUTKNECHT. Mr. Speaker, I the Democratic amendment makes the from Maryland (Mr. CARDIN) for their thank the gentleman for yielding me bill stronger, but I am going to vote effective effort to get this bill to the this time; and it is especially unusual against the Republican bill and the House floor. Let me just say that it for the gentleman from Ohio (Mr. Democratic alternative because in my was only a few generations ago that PORTMAN) to yield to me because I rise State and throughout this country, pensions were almost exclusive to a in the uncomfortable position of oppos- there are huge numbers of workers who privileged few in this country. For too ing both the bill and the substitute, were promised benefits when they many, the golden years were marked and I would like to explain why. signed up for the job, and then those by financial insecurity. Today, the ma- I am not an expert on pension policy, benefits were taken away from them in jority of American workers and their but I did serve on the pension commis- the dead of night when the defined ben- families have the opportunity to spend sion in the State of Minnesota, and I efits that they had signed on for were their retirement years in relative com- think I know a little bit about pension converted into cash balance payments. fort. policy. I personally regard it as an immoral Our private pension system has Mr. Speaker, virtually everything in outrage that IBM, among many other played a crucial role to accomplish this this bill is a good provision. Frankly, I companies, which has a CEO that has turnaround. Clearly, Social Security think what the gentleman from Massa- alone is not enough. The private pen- received $175 million in compensation chusetts (Mr. NEAL) is talking about is sion system is an indispensable part of in a 2-year period, has $500 million in something that deserves serious con- the retirement security of American unexercised stock options, felt it nec- sideration as we talk about the future workers. I believe this bill encourages essary when they had a pension surplus of Social Security. The fatal flaw of American workers to start saving for to cut back on the pension promises this bill is, it fails to deal with one of tomorrow today. I think the pension made to tens of thousands of their the most important issues, and that is reforms we are considering will help in- workers, not to mention the health a definition of the term ‘‘vested.’’ dividuals prepare for a better future. I care promises made to their retirees. A few minutes ago, the gentlewoman also believe that the potential for fraud Mr. Speaker, it is my intention to from Connecticut (Mrs. JOHNSON) said and abuse with regard to the substitute offer a motion to recommit, which is that she hoped this would mean more proposal is significant. I think it would cosponsored by the gentleman from companies would be offering defined certainly be very difficult to admin- benefit programs. I hope that is true. Minnesota (Mr. GUTKNECHT), among ister. The problem is, even if they offer those others, which basically says that when I support the underlying pension re- programs, the companies will have the a company makes an agreement with a form bill. And I think with that bill, chance to change those after the plan worker and promises defined benefit, we are raising the limit on IRA con- has started. This has happened to lit- that they cannot simply in the middle tributions, we have increased pension erally thousands of employees here in of the night change their minds and portability to allow workers to roll the United States. convert that to a cash balance pay- over their pension savings between It happened to many of the people in ment which could cost those workers plans when they change jobs, we have my district who worked for a great up to 50 percent of the benefits that basically streamlined rules and regula- company, IBM. After they had been they were promised. tions to make it easier for small busi- vested, IBM changed their pension plan All over this country there is what I nesses to offer pensions; and the under- from a defined benefit plan to a new, call pension anxiety, and that is work- lying bill increases protection for convoluted program that they call a ers who are 50–55 years of age who are workers by increasing notification and cash balance plan. None of those em- wondering whether or not they will re- disclosure in the area of cash balance ployees were given a choice to stay ceive the benefits, the retirement bene- conversion compared to existing law. I with the plan that they were vested in. fits, they were promised. I think they think if all these changes are enacted, The dictionary defines ‘‘vested’’ very should, and I think it is unfortunate they will provide millions of American clearly. It is law. It is settled. It is that the underlying bill and the workers with much better tools to pre- fixed. It is absolute, being without con- amendment do not address this impor- pare for retirement. tingency, a vested right. If we asked tant issue. Let us help Americans with their re- every Member of Congress and every b 1415 tirement security. I am pleased to be a American if that is how they define cosponsor of this legislation. I urge my ‘‘vested,’’ that is how we would define Mr. PORTMAN. Mr. Speaker, I yield colleagues to pass H.R. 10 and oppose it. But that is not how the law defines myself 1 minute just to respond briefly the substitute. it. to the gentleman from Minnesota (Mr. Mr. PORTMAN. Mr. Speaker, I yield That is a fundamental flaw of this GUTKNECHT) and the gentleman from 3 minutes to the gentleman from New legislation. It is a glaring mistake that Vermont (Mr. SANDERS). I think we York (Mr. FOSSELLA). this Congress has failed to address. And will have this on a motion to recommit (Mr. FOSSELLA asked and was given my colleagues, I promise, as sure as as well, but the point ought to be made permission to revise and extend his re- this is spring back in Minnesota, this is and made very clearly that the under- marks.) going to come raining down on this lying legislation actually addresses Mr. FOSSELLA. Mr. Speaker, I Congress or future Congresses. If we do this issue. It actually moves the ball thank the gentleman from Ohio for not deal with this issue, sooner or forward. It provides disclosure. It pro- yielding me this time. later, America is going to have hun- vides notification in the case of cash I think, as has been said many times dreds of thousands of employees who balance conversions. It also, as com- today, this bill is long overdue and it is thought their programs were vested, pared to last year, actually deals with a tremendous benefit for the American and they are going to find out that the issue of early retirement, so it not people. Essentially what it does and if they were not. only is an improvement from current you ask any American, I know if you Mr. NEAL of Massachusetts. Mr. law, it is an improvement from last ask anybody back home in Staten Is- Speaker, I yield 2 minutes to the gen- year’s bill, partly because of the com- land or Brooklyn, if they are given the

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00084 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.080 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1819 opportunity to set a little more money dresses the issue of notification. It I believe that we have reached a new aside for their retirement, will they makes sure that not only do we have age, though. This is an age where take advantage of it? This bill does disclosure but it is notification in ad- chances are a teenager has secured a that. This bill for the first time in vance of what current law requires. It credit card before he or she has secured years says to that hardworking indi- also says, as compared to last year’s a driver’s license. With that being said, vidual or two, you can take a little legislation, that changes to early re- it seems to me that we have to do ev- more money and save it for your gold- tirement benefits would also have to be erything we can to make it possible for en years. Is that not what we should be disclosed, which is not current legisla- all Americans to save and not just to trying to do? Should we not be empow- tion, not even the last year’s law. My save but to save for their retirement. ering Americans to say that they only point is that in a responsible way It is time for us to make it possible should have the freedom to spend a lit- we have tried to address this issue, and for all workers in this country to en- tle more money for their own retire- we have done it in a bipartisan manner. gage in pension investments. Unfortu- ment as they see fit? Mr. Speaker, I yield 2 minutes to the nately, we are not there yet. While We all know that different families gentleman from Illinois (Mr. KIRK), a H.R. 10, I believe, does a tremendous have different needs, young, old. But new Member of the Congress who has job of improving those opportunities we also should have a fundamental spent a lot of time looking at these re- for workers who currently have access agreement that when Americans, when tirement issues. to pensions, I believe we have to go individuals are given the freedom to in- Mr. KIRK. Mr. Speaker, I rise in sup- that extra mile now and talk about a vest and to save on their own, we are port of the majority bill here. H.R. 10 lot of America’s workers, principally doing not only them a service but we has a particular provision in it which I low- and moderate-income working are doing the entire Nation a service. strongly support, and, that is, the Americans who have not yet had the On Staten Island, for example, we have catch-up provision for individuals age opportunity to invest in pensions. It is a lot of police officers, firefighters, 50 and above. This is particularly im- time for us to do that, because if we do sanitation workers, a lot of civil serv- portant for working women. The provi- not, we will pay the price once they re- ants, city workers. Right now, if they sion allows women entering the work- tire. decide to change careers, which is their force, presumably after raising chil- Let us remember that H.R. 10 gives right, they cannot roll over their con- dren, to make an additional contribu- incentives principally through in- tributions into another retirement tion of up to $5,000 to their IRA or their creases in opportunities to invest, to plan, a 401(k) or an IRA. This bill 401(k) plan. put more money in, whether it is your Within the next 15 years, more than solves that problem, giving them more IRA or your 401(k). But if you do not 76 million baby boomers will retire. freedom and more flexibility. For the have the money left over at the end of Studies have shown that older baby carpenter, the tradesman, right now he the year to invest, you cannot take ad- boomers have less than 40 percent of vantage of those vehicles. It is time for is limited upon retirement with his the savings they will need to maintain us to give the incentives for lower-in- benefits. This bill allows him more their standard of living in retirement. money. It raises that cap. Is that not For women who have chosen to raise come workers to do exactly that, to what we should be trying to do? children at home and work intermit- say, I am going to save, I am going to In short, I credit the gentleman from tently, their situation is even more pinch a little bit more because if I do, Ohio and all Members of this body who dire. The Department of Labor esti- I am going to get a tax credit for hav- support this legislation, because at its mates that less than one in every three ing done so. For that small businessman or core it says to the American people, we women are covered by a retirement trust you. We want to give you more pension plan. These plans are proven to woman who would love to be able to incentives, more opportunities and pay out greater benefits than Social offer his or her workers those pension more freedom to set aside your hard- Security, yet they are not readily opportunities, if we give them a credit, earned money as you see fit for your available to most women and employ- the incentive, it is going to cost you a retirement. Then you can go off and ees of small businesses. H.R. 10 will little bit of money but we are going to buy that second home, invest in your allow women approaching retirement give you some of that back because we grandchildren’s education, buy that age to save the extra money they need, are going to give you a tax credit for second car but it is up to you. or to catch up on their retirement sav- having participated, what we in es- Mr. NEAL of Massachusetts. Mr. ings lost because of time off from work. sence have done is said to all Ameri- Speaker, I yield 30 seconds to the gen- H.R. 10 truly enhances retirement pen- cans, all workers in this country, we tleman from Vermont (Mr. SANDERS). sion fairness for women, an important want you to also participate in these Mr. SANDERS. I thank the gen- fact that is often overlooked in discus- savings. tleman for yielding time. sions about this legislation. H.R. 10 does a tremendous job of Mr. Speaker, a moment ago the gen- H.R. 10 will improve the quality of making retirement savings even more tleman from Ohio (Mr. PORTMAN) indi- life for millions of Americans during important to the average American cated that his legislation deals with their retirement. I urge my colleagues who wants to prepare for retirement. the fact that millions of workers have to support these important moderniza- What we do not do through H.R. 10 is seen reductions in the pensions prom- tions and to oppose the substitute. go the extra mile and talk to low- and ised to them by companies converting Mr. NEAL of Massachusetts. Mr. moderate-income working Americans from defined benefits to cash balance Speaker, I yield 3 minutes to the gen- and say we want you to participate as payments. I wonder if the gentleman tleman from California (Mr. BECERRA), well. We need to bring them into the from Ohio can be specific and tell those a valued member of the Committee on fold. If we do not, we will pay the price millions of workers who were double- Ways and Means. in the end of the game. I think what crossed by large companies like IBM Mr. BECERRA. Mr. Speaker, I thank the gentleman from Ohio (Mr. how his legislation is going to improve the gentleman for yielding time. Let PORTMAN) and the gentleman from their situation. me begin by complimenting the prin- Maryland (Mr. CARDIN) have done is a Mr. PORTMAN. Mr. Speaker, I yield cipal authors of this legislation. I know tremendous effort. I think if we pass myself 30 seconds to respond to the that the gentleman from Ohio (Mr. the Neal substitute, we make this an question from the gentleman since he PORTMAN) and the gentleman from even better bill and we do it for all asked for a question on our time. What Maryland (Mr. CARDIN) have been Americans. I urge everyone to vote for I said is accurate which is that this bill working for many years to get us to the Neal substitute. does address the question of cash bal- this point. I want to applaud their ef- Mr. PORTMAN. Mr. Speaker, I yield ance conversions. It does so in three forts to try to improve the retirement myself such time as I may consume. very important ways: number one, it system we have which will allow pen- Mr. Speaker, I want to start by addresses the issue of disclosure. It sions to be a more fruitful vehicle for thanking the gentleman from Cali- says the disclosure has to be in plain people in this country who work to fornia (Mr. BECERRA) for his comments English which is also in their motion have a chance to really live out their about the underlying bill and the way to recommit, I understand. It also ad- retirement in comfort. in which he and other members of our

VerDate 02-MAY-2001 01:58 May 03, 2001 Jkt 089060 PO 00000 Frm 00085 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.083 pfrm02 PsN: H02PT1 H1820 CONGRESSIONAL RECORD — HOUSE May 2, 2001 committee on the other side of the Let me give some very interesting Mr. Speaker, I reserve the balance of aisle have worked with us on this legis- statistics. I have heard here today how my time. lation. As I said at the outset, this has low-income workers are not going to Mr. NEAL of Massachusetts. Mr. been a 4- or 5-year process, bipartisan participate and so on. If an employer Speaker, I yield myself such time as I from the start. offers a plan, people will participate. If may consume. We have refined it through that proc- they build it, they will come. Among Mr. Speaker, at this time I would ess. We believe that this legislation, people who make $20,000 to $39,000 a close on our side. I want to thank the the underlying bill, addresses the prob- year, 85 percent participate when an gentleman from Ohio (Mr. PORTMAN) lem that confronts us, which is again employer offers a plan, even a SIMPLE for the quality of the debate that has that half the American workforce does plan, a SEP plan, the most simple of taken place here today and also to not have that critical third leg of the plans. A 401(k), it is even more than thank the gentleman from New York that. Among people who make less retirement savings stool which is em- (Mr. RANGEL) and the gentleman from than $20,000 a year, 68 percent, Mr. ployer-sponsored plans. We also help California (Mr. THOMAS) because the Speaker, over two-thirds of those peo- with regard to personal savings, the debate in committee I thought was ple participate when an employer of- critical second leg of that stool, by ex- good as well. I also appreciate the fact fers a plan. panding IRAs. Finally, as someone has that the gentleman from Ohio (Mr. said earlier today, the President today These statistics are from the Con- gressional Research Service, by the PORTMAN) said just a few moments ago has indicated his strong interest in that he had honest information that moving forward on that third impor- way. This is not from even the Com- mittee on Ways and Means, much less came from the Congressional Research tant leg, Social Security. Bureau, that the information did not All three are important. What we can the Republican side. This is unbiased information that shows that the great come from the Republican side or it did do today is make tremendous progress not come from the Committee on Ways focusing on where the most potential potential here is to get these small business employers in plans. That is and Means. So we do appreciate that for gain is, and that is among our small what we do. We do it through a number statement that the gentleman was able business employers. of different ways that I have talked to offer for us. I have talked a little about the sub- about, but we also help with regard to This has been a good debate, and it stitute today and some of the concerns vesting, taking it from 5 years to 3 has been legitimate. There is a sincere I have with it. First is the cost. It al- years because these very workers tend difference of opinion here on how to most doubles the size of the legislation to move jobs more quickly, more often. proceed. I have acknowledged time and before us. We are trying to keep this a We do it by dramatically improving again that I believe that the under- fiscally conservative bill so that it can the idea that someone ought to offer a lying support for this bill is indicative be part of any final tax relief package defined benefit plan. This is where the of the fact that it does address many of that goes to the President’s desk. Sec- employee makes no contribution. So the problems that we have spoken to in ond on the merits, the refundable tax the low-income employees who are in committee during the last few years. credit has a number of problems in companies that are now going to offer The key question that we face today, terms of its implementation, defined benefit plans, thanks to this Mr. Speaker, is essentially this: How administerability and this is some- legislation, are going to benefit di- do we get low- and moderate-income thing that has happened over the years rectly. workers to be full participants in the with the earned income tax credit. We do it by a very interesting change private retirement system of this coun- We know from the Treasury Depart- in the law that says there should no try? We must help those who are not ment in the Clinton years that the longer be an arbitrary limit, that 25 covered by a pension plan or who are mispayment rate is about 25 percent. percent of your compensation is all covered by a pension plan but do not We do not believe getting into that that can be put into a pension. Who participate, or those who simply can- kind of a program is necessary, and we does that hurt? That hurts the low- and not put enough money away in their think it has a lot of hazards to it par- moderate-income worker; well-mean- retirement plan, although they are try- ticularly in the area of trying to ad- ing restriction put in place by this ing very hard to make modest con- minister it with the small business tax Congress. It does not make any sense tributions. credits. I also have some concerns because it actually erodes the ability I submit that H.R. 10 as currently about the way in which it is drafted. It of the low-income worker and the mod- constructed really does not address does not cover some of the plans that erate-income worker to put what they those issues, although it does solve a most small businesses use. And finally want to put aside for their retirement. number of other problems in our pen- it adds some new restrictions to small We eliminate the 25 percent of comp sion system. I believe the issue of low- businesses that we do not think are im- rule altogether. and moderate-income workers needs to portant, in fact go the wrong way in We also have increased portability, be faced this year, or surely we are terms of loosening up the requirements as I said earlier, which will extremely going to be back here very soon at- and letting small business offer more of focus on the folks who are moving tempting to do something. Why not do these plans to their workers. around a lot, folks who now cash out it today? their plan because when they move b 1430 I do not think the cost is very great from job to job, say from a school- Finally, I will say that the legisla- teacher to a job in the private sector, given the size of the tax bills both tion, the underlying legislation, tar- they end up with two plans and most of Democrats and Republicans are talking gets precisely those people that the those people actually cash out. We are about, and I do not believe that there gentleman from Massachusetts (Mr. now saying those plans can come to- will be a great deal of administrative NEAL), in a good faith effort, is at- gether in a seamless way. complexity surrounding the retirement tempting to target in this substitute. The point, Mr. Speaker, is this: the saving account proposals. Workers Let me be more specific. Again, in underlying legislation addresses the know how much they put into their the area of small business, we only problem in the substitute. It addresses pension plans, and there is a paper trail have 19 percent of companies with 25 or it in a conservative way in terms of the that everybody can easily check, just fewer employees offering any kind of fiscal impact. It addresses it in a way like every other line on our income tax pension at all today. Those are the that directly relates to the existing forms. Pension contributions are a doc- very people who we are targeting by, problem, what we know about it, and it ument that on a taxpayer’s W–2 form yes, lessening the restrictions, the has been, as I said, over the last 4 or 5 right now, contributions under my costs, the burdens, the liabilities in years an entirely bipartisan effort, a RSA proposal, would receive the same these plans, by directly giving the peo- comprehensive look at our problems scrutiny and treatment. ple who make the decisions in these and the best ways to address them. H.R. 10 increases contribution limits plans more incentives to offer the plans I urge my colleagues to vote, there- on individual retirement accounts and by increased contributions. This is the fore, against the substitute and sup- on qualified pension plans in hopes whole focus of the legislation. port the underlying legislation. that business owners will bring other

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00086 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.085 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1821 employees along as they take advan- some $1.3 trillion over the next 10 savings opportunity with women who tage of these new provisions. The gen- years. choose to work outside the home. tleman from California (Mr. THOMAS) As I approached that discussion, I It should be only fair that we give ev- and I pursued this last year, the Roth looked at all the things that we are erybody an equal opportunity of this IRA. I do not object to that at all, but trying to accomplish in tax reduction, chance to save for their retirement the underlying tone of this debate and the fact of the matter is we have so years, irrespective of how they make today is, maybe so but maybe not so as much to do and so little room within their living for their family, outside well. Either way, it simply makes $1.3 trillion to accomplish it all. Cer- the house doing, of course, important sense to give small business owners a tainly we want to set some things things, or back home and doing at least direct incentive to offer pension plans right, end the marriage penalty and what we would have to recognize as the to their employees. the death taxes; reduce rates across the more heartwarming things, if not in- Tax credits to cover the part of ad- board on all taxpayers who are over- deed the more important things. ministrative costs of opening up a new taxed. Then the final thing that I like about pension plan and tax credits to help I was acutely aware that one of my this, especially in today’s world of employers with the cost of making con- personal objectives, my second highest work, where we have so much mobility, tributions on behalf of their employees priority for what I would expect to be is the opportunity for one to feel free in the early years simply makes very in that package, is this exact bill. I to move from this job to a better job, good sense. wanted to thank the gentleman from from this employer to a better em- In fact, it makes so much sense that Ohio (Mr. PORTMAN) for bringing this ployer, to a new opportunity and take these issues are going to be in the con- bill forward, as he has remained faith- their pension with them. This port- ference report one way or another. ful to it. ability feature is important. So this is I would urge us today to do it right Why do I feel so strongly about this? a good bill. now in the next half hour to 45 min- Because like the other things we try to There are a couple of problems I have utes. I hope my colleagues will support do, it speaks to the heart and the ob- with the substitute. I will just mention the substitute. It is anything but par- jectives and the hopes and the dreams them: one, as soon as one moves from tisan. It speaks to a legitimate interest of the American family. The American a tax exemption to a tax credit, one that we all have, and that is how do we working man and woman get a bum rap deals the Government back in. What get low- and moderate-income workers every now and then from the pundits, we are trying to do is get the Govern- into a bona fide retirement plan? The the commentators. All too often I hear ment of the United States out from be- proposal before us is a sound one. With that America is a Nation of people that tween the American citizen and their this substitute, we can improve upon are poor savers. That is not fair. That savings hopes. As soon as the Govern- the work of the gentleman from Ohio is not right. We are a Nation of people ment is back in, the Government will (Mr. PORTMAN) and the gentleman from that understand our hopes and dreams reintroduce its red tape; and we will be Maryland (Mr. CARDIN). I would ask a for a lifetime, and we understand that back to where we were with a com- favorable consideration at the right in our younger working years a very plicated system of government regula- time. big part of what we may do then and tions. Mr. Speaker, I yield back the balance now is to care for what we will be able The other is the cost. I am com- of my time. to have as resources in our older years mitted, with my highest sense of pri- Mr. PORTMAN. Mr. Speaker, I would and, therefore, saving is important to ority, to not only passing this bill like to commend the gentleman from us, but we struggle. We struggle in all today but to seeing this bill included in Massachusetts (Mr. NEAL) for a good those younger years when we have our the reconciliation package that will re- debate here on the floor, and I yield the young children to raise and all the ex- sult in real tax enacted in law signed remainder of our time to the distin- penses and all the things we would like by the President in the next few weeks. guished gentleman from Texas (Mr. to accomplish, in the building of a It is going to be tough enough for me ARMEY), the majority leader. There is home, sometimes the building of a to say to everybody with all their no Member of Congress in leadership or business, for some opportunity to save, other priorities, move over and let otherwise, Mr. Speaker, who is more against the fact that all too often we Portman-Cardin have their place in committed to passage of this legisla- are asked to save after-tax dollars. here. It is just, unfortunately, not tion and has been more helpful to it What this bill is doing to some extent something we could do if it was car- than the gentleman from Texas (Mr. is saying, let us get the Government rying that larger price tag. ARMEY). out of the way. Remove the Govern- So let us recognize we have a good ef- The SPEAKER pro tempore (Mr. ment from between a person and their fort here, an effort that is doable and QUINN). The gentleman from Texas (Mr. dream by giving them an enhanced op- when it is doable for us to accomplish ARMEY), the majority leader, is recog- portunity to save tax-exempt dollars in the right thing to do for the good and nized for 3 minutes. the current time period and catch up true working men and women of this Mr. ARMEY. Mr. Speaker, I thank with that later but now to get that country, to help them on their own the gentleman from Ohio (Mr. money forward. terms with their own resources fulfill PORTMAN) for yielding me this time, So the first reason I like this bill is their own dreams. We ought to do it. and I thank the gentleman from Massa- it enhances our opportunity for saving, So I would ask my colleagues, please, chusetts (Mr. NEAL) for his comments. first by expanding the opportunity to vote against the substitute. Vote for Mr. Speaker, I would have and had take tax-exempt dollars to our savings the bill, and let us get about the busi- planned to be here to speak in the gen- accounts. It also enhances our oppor- ness of making more savings opportu- eral debate on the underlying bill but tunity by removing government red nities more richly available for more was called to the White House to dis- tape and giving more institutions, working men and women in this coun- cuss the overall budget circumstances, more small businesses in particular, try. the overall tax bill. So if I may just more opportunity to offer savings as an Mr. HEFLEY. Mr. Speaker, I am opposed to take a moment to apologize to the gen- option at the world of work for these the Substitute Amendment. Americans should tleman from Massachusetts (Mr. NEAL) men and women. be allowed to prepare for their own retirement for speaking about the underlying bill Yes, it increases the dollars. It ex- and should be encouraged to do so. The na- during time on his substitute. pands the opportunity by dealing with tional savings rate is at an all time low. We At the White House, of course, we are those spouses in America, most of must improve our retirement plans so that very excited and enthusiastic about the whom are women, who choose to make Americans may take full advantage of the op- possibility of completing the budget, their living for their family at home, portunities that they provide. which we may expect to see on the where they specialize in what I like to H.R. 10 expands and strengthens our na- floor tomorrow, and then subsequently call the things one does for love and tion’s private retirement savings system, mak- to move forward and talk about the re- their pay is not there in the form of a ing it easier for Americans to save. The Sub- duction in taxes that we have available paycheck, who are today, under today’s stitute only creates a costly new entitlement for the American people within that laws, foreclosed from equal access to program. The Substitute Amendment adds

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00087 Fmt 7634 Sfmt 9920 E:\CR\FM\K02MY7.087 pfrm02 PsN: H02PT1 H1822 CONGRESSIONAL RECORD — HOUSE May 2, 2001 three new tax credits to H.R. 10, which only Lee Nadler Sherman Smith (TX) Thornberry Watts (OK) Levin Napolitano Shows Souder Thune Weldon (FL) complicate the Tax Code. A new refundable Lewis (GA) Neal Skelton Spence Tiahrt Weldon (PA) tax credit for savers, as proposed in the Sub- Lipinski Oberstar Slaughter Stearns Tiberi Weller stitute, would be difficult to monitor. Also, the Lofgren Obey Smith (WA) Stump Toomey Whitfield Substitute includes new Small Business Tax Lowey Olver Snyder Sununu Traficant Wicker Lucas (KY) Ortiz Solis Sweeney Upton Wilson Credits. Employers could only claim these Luther Owens Spratt Tancredo Vitter Wolf credits for three years, reducing their value as Maloney (CT) Pallone Stark Tauzin Walden Young (AK) incentives to start and maintain plans. H.R. 10 Maloney (NY) Pascrell Stenholm Taylor (NC) Walsh Young (FL) Markey Pastor Strickland Terry Wamp already helps small businesses by reducing Mascara Payne Stupak Thomas Watkins administrative burdens. Matheson Pelosi Tanner NOT VOTING—1 H.R. 10 simplifies the administrative rules Matsui Phelps Tauscher that apply to retirement plans. The Substitute McCarthy (MO) Pomeroy Taylor (MS) Moakley McCarthy (NY) Price (NC) Thompson (CA) Amendment only complicates the rules. H.R. McCollum Rahall Thompson (MS) b 1506 10 encourages individual retirement savings McDermott Rangel Thurman Messrs. FOLEY, FRELINGHUYSEN, by providing greater pension simplification and McGovern Reyes Tierney McIntyre Rivers Towns KING, TOM DAVIS of Virginia, increased savings opportunities. For these McKinney Rodriguez Turner TIBERI, GREENWOOD, and SAXTON reasons and more, I encourage my colleagues McNulty Roemer Udall (CO) changed their vote from ‘‘yea’’ to to support H.R. 10 and oppose this Amend- Meehan Ross Udall (NM) ‘‘nay.’’ ment. Meek (FL) Rothman Velazquez Meeks (NY) Roybal-Allard Visclosky Mr. MOORE and Ms. HARMAN b 1445 Menendez Rush Waters changed their vote from ‘‘nay’’ to Millender- Sabo Watt (NC) ‘‘yea’’. The SPEAKER pro tempore (Mr. McDonald Sanchez Waxman Miller, George Sandlin Weiner So the amendment in the nature of a QUINN). Pursuant to House Resolution Mink Sawyer Wexler substitute was rejected. 127, the previous question is ordered on Mollohan Schakowsky Woolsey The result of the vote was announced the bill, as amended, and on the Moore Schiff Wu as above recorded. amendment in the nature of a sub- Moran (VA) Scott Wynn Murtha Serrano The SPEAKER pro tempore (Mr. stitute offered by the gentleman from QUINN). The question is on the engross- Massachusetts (Mr. NEAL). NAYS—223 ment and third reading of the bill. The question is on the amendment in Aderholt Frelinghuysen McCrery The bill was ordered to be engrossed the nature of a substitute offered by Akin Gallegly McHugh and read a third time, and was read the the gentleman from Massachusetts Armey Ganske McInnis third time. (Mr. NEAL). Bachus Gekas McKeon The SPEAKER pro tempore. The Baker Gibbons Mica The question was taken; and the Ballenger Gilchrest Miller (FL) question is on the passage of the bill. Speaker pro tempore announced that Barr Gillmor Miller, Gary MOTION TO RECOMMIT OFFERED BY MR. the noes appeared to have it. Bartlett Gilman Moran (KS) SANDERS Barton Goode Morella Mr. NEAL of Massachusetts. Mr. Bass Goodlatte Myrick Mr. SANDERS. Mr. Speaker, I offer a Speaker, I object to the vote on the Bereuter Goss Nethercutt motion to recommit with instructions. ground that a quorum is not present Biggert Graham Ney The SPEAKER pro tempore. Is the and make the point of order that a Bilirakis Granger Northup gentleman opposed to the bill? Blunt Graves Norwood quorum is not present. Boehlert Green (WI) Nussle Mr. SANDERS. I am opposed to the The SPEAKER pro tempore. Evi- Boehner Greenwood Osborne bill in its present form, Mr. Speaker. dently a quorum is not present. Bonilla Grucci Ose The SPEAKER pro tempore. The Bono Gutknecht Otter Clerk will report the motion to recom- The Sergeant at Arms will notify ab- Brady (TX) Hansen Oxley sent Members. Brown (SC) Hart Paul mit. The vote was taken by electronic de- Bryant Hastings (WA) Pence The Clerk read as follows: vice, and there were—yeas 207, nays Burr Hayes Peterson (MN) Mr. SANDERS of Vermont moves to recom- Burton Hayworth Peterson (PA) 223, not voting 1, as follows: mit the bill (H.R. 10) to the Committee on Buyer Hefley Petri Education and the Workforce and the Com- [Roll No. 94] Callahan Herger Pickering mittee on Ways and Means with instructions Calvert Hilleary Pitts YEAS—207 Camp Hobson Platts to report the same back to the House forth- Abercrombie Conyers Hall (TX) Cannon Hoekstra Pombo with with the following amendment: Ackerman Costello Harman Cantor Horn Portman Strike section 504 and insert the following Allen Coyne Hastings (FL) Capito Hostettler Pryce (OH) new section: Andrews Cramer Hill Castle Houghton Putnam SEC. 504. TREATMENT OF PLAN AMENDMENTS Baca Crowley Hilliard Chabot Hulshof Quinn SIGNIFICANTLY REDUCING FUTURE Baird Cummings Hinchey Chambliss Hunter Radanovich BENEFIT ACCRUALS. Baldacci Davis (CA) Hinojosa Coble Hutchinson Ramstad (a) NOTICE REQUIREMENTS FOR DEFINED Baldwin Davis (FL) Hoeffel Collins Hyde Regula Barcia Davis (IL) Holden Combest Isakson Rehberg BENEFIT PLANS OF 100 OR MORE PARTICI- Barrett DeFazio Holt Cooksey Issa Reynolds PANTS.— Becerra DeGette Honda Cox Istook Riley (1) PLAN REQUIREMENT.—Section 401(a) of Bentsen Delahunt Hooley Crane Jenkins Rogers (KY) the Internal Revenue Code of 1986 (relating Berkley DeLauro Hoyer Crenshaw Johnson (CT) Rogers (MI) to qualified pension, profit-sharing, and Berman Deutsch Inslee Cubin Johnson (IL) Rohrabacher stock bonus plans) is amended by inserting Berry Dicks Israel Culberson Johnson, Sam Ros-Lehtinen after paragraph (34) the following new para- Bishop Dingell Jackson (IL) Cunningham Jones (NC) Roukema Blagojevich Doggett Jackson-Lee Davis, Jo Ann Keller Royce graph: Blumenauer Dooley (TX) Davis, Tom Kelly Ryan (WI) ‘‘(35) NOTICE REQUIREMENTS FOR DEFINED Bonior Doyle Jefferson Deal Kennedy (MN) Ryun (KS) BENEFIT PLANS OF 100 OR MORE PARTICIPANTS Borski Edwards John DeLay Kerns Sanders SIGNIFICANTLY REDUCING FUTURE BENEFIT AC- Boswell Engel Johnson, E. B. DeMint King (NY) Saxton CRUALS.— Boucher Eshoo Jones (OH) Diaz-Balart Kingston Scarborough ‘‘(A) IN GENERAL.—If a large defined benefit Boyd Etheridge Kanjorski Doolittle Kirk Schaffer plan adopts an amendment which has the ef- Brady (PA) Evans Kaptur Dreier Knollenberg Schrock Brown (FL) Farr Kennedy (RI) Duncan Kolbe Sensenbrenner fect of significantly reducing the rate of fu- Brown (OH) Fattah Kildee Dunn LaHood Sessions ture benefit accrual of 1 or more partici- Capps Filner Kilpatrick Ehlers Largent Shadegg pants, a trust which is part of such plan shall Capuano Ford Kind (WI) Ehrlich Latham Shaw not constitute a qualified trust under this Cardin Frank Kleczka Emerson LaTourette Shays section unless, after adoption of such amend- Carson (IN) Frost Kucinich English Leach Sherwood ment and not less than 45 days before its ef- Carson (OK) Gephardt LaFalce Everett Lewis (CA) Shimkus fective date, the plan administrator pro- Clay Gonzalez Lampson Ferguson Lewis (KY) Simmons Clayton Gordon Langevin Flake Linder Simpson vides— Clement Green (TX) Lantos Fletcher LoBiondo Skeen ‘‘(i) a written statement of benefit change Clyburn Gutierrez Larsen (WA) Foley Lucas (OK) Smith (MI) described in subparagraph (B) to each appli- Condit Hall (OH) Larson (CT) Fossella Manzullo Smith (NJ) cable individual, and

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‘‘(ii) a written notice setting forth the plan ‘‘(II) COMPENSATION AND OTHER ASSUMP- culated as if the accrued benefit were in the amendment and its effective date to each TIONS.—Such benefit shall be calculated by form of a single life annuity commencing at employee organization representing partici- assuming that compensation and all other the participant’s normal retirement age (and pants in the plan. benefit factors would increase for each plan by taking into account any early retirement Any such notice may be provided to a person year beginning after the effective date of the subsidy). designated, in writing, by the person to plan amendment at a rate equal to the me- ‘‘(ii)(I) The projected accrued benefit of which it would otherwise be provided. The dian average of the CPI increase percentage any applicable individual shall be calculated plan administrator shall not be treated as (as defined in section 215(i) of the Social Se- as if the benefit were payable in the form of failing to meet the requirements of this sub- curity Act) for the 5 calendar years imme- a single life annuity commencing at the par- paragraph merely because the statement or diately preceding the calendar year before ticipant’s normal retirement age (and by notice is provided before the adoption of the the calendar year in which such effective taking into account any early retirement plan amendment if no material modification date occurs. subsidy). of the amendment occurs before the amend- ‘‘(III) BENEFIT FACTORS.—For purposes of ‘‘(II) Such benefit shall be calculated by ment is adopted. subclause (II), the term ‘benefit factors’ assuming that compensation and all other ‘‘(B) STATEMENT OF BENEFIT CHANGE.—A means social security benefits and all other benefit factors would increase for each plan statement of benefit change described in this relevant factors under section 411(b)(1)(A) year beginning after the effective date of the subparagraph shall— used to compute benefits under the plan plan amendment at a rate equal to the me- ‘‘(i) be written in a manner calculated to which had increased from the 2d plan year dian average of the CPI increase percentage be understood by the average plan partici- preceding the plan year in which the effec- (as defined in section 215(i) of the Social Se- pant, and tive date of the plan amendment occurs to curity Act) for the 5 calendar years imme- ‘‘(ii) include the information described in the 1st such preceding plan year. diately preceding the calendar year before subparagraph (C). ‘‘(iii) NORMAL RETIREMENT AGE.—The term the calendar year in which such effective ‘‘(C) INFORMATION CONTAINED IN STATEMENT ‘normal retirement age’ means the later of— date occurs. OF BENEFIT CHANGE.—The information de- ‘‘(I) the date determined under section ‘‘(III) For purposes of subclause (II), the scribed in this subparagraph includes the fol- 411(a)(8), or term ‘benefit factors’ means social security lowing: ‘‘(II) the date a plan participant attains benefits and all other relevant factors under ‘‘(i) Notice setting forth the plan amend- age 62.’’. section 204(b)(1)(A) used to compute benefits ment and its effective date. (2) AMENDMENTS TO ERISA.— under the plan which had increased from the ‘‘(ii) A comparison of the following (A) BENEFIT STATEMENT REQUIREMENT.— 2d plan year preceding the plan year in amounts under the plan with respect to an Section 204(h) of the Employee Retirement which the effective date of the plan amend- applicable individual, determined both with Income Security Act of 1974 (29 U.S.C. ment occurs to the 1st such preceding plan and without regard to the plan amendment: 1054(h)) is amended by adding at the end the year. ‘‘(I) The accrued benefit and the present following new paragraphs: ‘‘(iii) The term ‘normal retirement age’ value of the accrued benefit as of the effec- ‘‘(3)(A) If paragraph (1) applies to the adop- means the later of— tive date. tion of a plan amendment by a large defined ‘‘(I) the date determined under section ‘‘(II) The projected accrued benefit and the benefit plan, the plan administrator shall, 3(24), or projected present value of the accrued ben- after adoption of such amendment and not ‘‘(II) the date a plan participant attains efit as of the date which is 3 years, 5 years, less than 45 days before its effective date, age 62. and 10 years from the effective date and as of provide with the notice under paragraph (1) a ‘‘(4) A plan administrator shall not be the normal retirement age. written statement of benefit change de- treated as failing to meet the requirements ‘‘(iii) A table of all annuity factors used to scribed in subparagraph (B) to each applica- of this subsection merely because the notice calculate benefits under the plan, presented ble individual. or statement is provided before the adoption in the form provided in section 72 and the ‘‘(B) A statement of benefit change de- of the plan amendment if no material modi- regulations thereunder. scribed in this subparagraph shall— fication of the amendment occurs before the ‘‘(i) be written in a manner calculated to Benefits described in clause (ii) shall be stat- amendment is adopted.’’. be understood by the average plan partici- ed separately and shall be calculated by (B) CONFORMING AMENDMENT.—Section pant, and using the applicable mortality table and the 204(h)(1) of such Act (29 U.S.C. 1054(h)(1)) is ‘‘(ii) include the information described in applicable interest rate under section amended by inserting ‘‘(including any writ- subparagraph (C). 417(e)(3)(A). ten statement of benefit change if required ‘‘(C) The information described in this sub- ‘‘(D) LARGE DEFINED BENEFIT PLAN; APPLI- by paragraph (3))’’ after ‘‘written notice’’. paragraph includes the following: CABLE INDIVIDUAL.—For purposes of this (3) EFFECTIVE DATES.— ‘‘(i) A comparison of the following amounts paragraph— (A) IN GENERAL.—The amendments made under the plan with respect to an applicable ‘‘(i) LARGE DEFINED BENEFIT PLAN.—The by this subsection shall apply to plan amend- individual, determined both with and with- term ‘large defined benefit plan’ means any ments taking effect in plan years beginning out regard to the plan amendment: defined benefit plan which had 100 or more after December 31, 1998. ‘‘(I) The accrued benefit and the present participants who had accrued a benefit under (B) SPECIAL RULE.—The period for pro- value of the accrued benefit as of the effec- the plan (whether or not vested) as of the viding any notice required by the amend- tive date. last day of the plan year preceding the plan ments made by this subsection shall not end ‘‘(II) The projected accrued benefit and the year in which the plan amendment becomes before the date which is 3 months after the projected present value of the accrued ben- effective. date of the enactment of this Act. ‘‘(ii) APPLICABLE INDIVIDUAL.—The term efit as of the date which is 3 years, 5 years, ‘applicable individual’ means— and 10 years from the effective date and as of (b) AGE-BASED REDUCTIONS IN THE RATE AT ‘‘(I) each participant in the plan, and the normal retirement age. WHICH BENEFITS ACCRUE UNDER A CASH BAL- ‘‘(II) each beneficiary who is an alternate ‘‘(ii) A table of all annuity factors used to ANCE PLAN VIOLATE AGE DISCRIMINATION payee (within the meaning of section calculate benefits under the plan, presented RULE.— 414(p)(8)) under an applicable qualified do- in the form provided in section 72 of the In- (1) DIRECTIVE.—The Secretary of the Treas- mestic relations order (within the meaning ternal Revenue Code of 1986 and the regula- ury shall apply section 411(b)(1)(H) of the In- of section 414(p)(1)(A)). tions thereunder. ternal Revenue Code of 1986 without regard ‘‘(E) ACCRUED BENEFIT; PROJECTED RETIRE- Benefits described in clause (i) shall be stat- to the portion of the preamble to Treasury MENT BENEFIT.—For purposes of this para- ed separately and shall be calculated by Decision 8360 (56 Fed. Reg. 47524–47603, Sep- graph— using the applicable mortality table and the tember 19, 1991) which relates to the alloca- ‘‘(i) PRESENT VALUE OF ACCRUED BENEFIT.— applicable interest rate under section tion of interest adjustments through normal The present value of an accrued benefit of 417(e)(3)(A) of such Code. retirement age under a cash balance plan, as any applicable individual shall be calculated ‘‘(D) For purposes of this paragraph— such preamble is and has been since its adop- as if the accrued benefit were in the form of ‘‘(i) The term ‘large defined benefit plan’ tion without the force of law. a single life annuity commencing at the par- means any defined benefit plan which had 100 (2) SAFE HARBOR IF NOTICE AND ELECTION TO ticipant’s normal retirement age (and by or more participants who had accrued a ben- CONTINUE BENEFIT ACCRUALS UNDER FORMER taking into account any early retirement efit under the plan (whether or not vested) as DEFINED BENEFIT PLAN INSTEAD OF UNDER subsidy). of the last day of the plan year preceding the CASH BALANCE PLAN.— ‘‘(ii) PROJECTED ACCRUED BENEFIT.— plan year in which the plan amendment be- (A) AMENDMENT TO INTERNAL REVENUE ‘‘(I) IN GENERAL.—The projected accrued comes effective. CODE.—Paragraph (1) of section 411(b) of the benefit of any applicable individual shall be ‘‘(ii) The term ‘applicable individual’ Internal Revenue Code of 1986 (relating to de- calculated as if the benefit were payable in means an individual described in subpara- fined benefit plans) is amended by adding at the form of a single life annuity commencing graph (A) or (B) of paragraph (1). the end the following new subparagraph: at the participant’s normal retirement age ‘‘(E) For purposes of this paragraph— ‘‘(I) ELECTION TO CONTINUE BENEFIT ACCRU- (and by taking into account any early retire- ‘‘(i) The present value of an accrued benefit ALS UNDER FORMER DEFINED BENEFIT PLAN IN- ment subsidy). of any applicable individual shall be cal- STEAD OF UNDER CASH BALANCE PLAN.—

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00089 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.024 pfrm02 PsN: H02PT1 H1824 CONGRESSIONAL RECORD — HOUSE May 2, 2001

‘‘(i) IN GENERAL.—A large defined benefit ‘‘SEC. 4980F. FAILURE TO OFFER ELECTION TO (A) IN GENERAL.—The amendments made plan that adopts an amendment which re- CONTINUE BENEFIT ACCRUALS by this subsection shall apply to plans and sults in such plan becoming a cash balance UNDER FORMER DEFINED BENEFIT plan amendments taking effect after Decem- plan shall be treated as not meeting the re- PLAN IN EVENT OF SIGNIFICANT RE- ber 31, 1998. DUCTIONS IN FUTURE BENEFIT AC- quirements of this paragraph unless such CRUALS. (B) SPECIAL RULE.—The period for pro- plan provides each participant with— ‘‘(a) IMPOSITION OF TAX.—There is hereby viding any notice required by the amend- ‘‘(I) notice and a written statement of ben- imposed a tax on the failure of any applica- ments made by this subsection shall not end efit change which meets the requirements of ble pension plan to meet the requirements of before the date which is 3 months after the section 401(a)(35), and subsection (d). date of the enactment of this Act. ‘‘(II) an election to continue to accrue ben- ‘‘(b) AMOUNT OF TAX.— (c) PREVENTION OF WEARING AWAY OF EM- efits under such plan, determined under the ‘‘(1) IN GENERAL.—The amount of the tax PLOYEE’S ACCRUED BENEFIT.— terms of such plan as in effect immediately imposed by subsection (a) shall be 50 percent (1) AMENDMENT TO INTERNAL REVENUE before the effective date of such plan amend- of the amount of the excess pension assets in CODE.—Section 411(d)(6) of the Internal Rev- ment. such plan, determined as of the effective enue Code of 1986 (relating to accrued benefit ‘‘(ii) PROTECTED ACCRUED BENEFIT.—For date of the amendment which has the effect may not be decreased by amendment) is purposes of clause (i), an accrued benefit of significantly reducing the rate of future amended by adding at the end the following shall include any early retirement benefit or benefit accrual of 1 or more participants. new subparagraph: retirement-type subsidy (within the meaning ‘‘(2) EXCESS PENSION ASSETS.—For purposes ‘‘(D) TREATMENT OF PLAN AMENDMENTS of subsection (d)(6)(B)(i)), but only with re- of paragraph (1), the term ‘excess pension as- WEARING AWAY ACCRUED BENEFIT.— spect to a participant who satisfies (either sets’ has the meaning given to such term by ‘‘(i) IN GENERAL.—For purposes of subpara- before or after the effective date of the section 420(e)(2). graph (A), a plan amendment adopted by a amendment) the conditions for the benefit or ‘‘(c) LIABILITY FOR TAX.—The following large defined benefit plan shall be treated as subsidy under the terms of the plan as in ef- shall be liable for the tax imposed by sub- reducing accrued benefits of a participant if, fect immediately before such date. section (a): under the terms of the plan after the adop- ‘‘(iii) TIMING OF ELECTION.—Except as pro- ‘‘(1) In the case of a plan other than a mul- tion of the amendment, the accrued benefit vided in regulations, the election required by tiemployer plan, the employer. of the participant may at any time be less clause (i)(II) shall be provided within a rea- ‘‘(2) In the case of a multiemployer plan, than the sum of— sonable time before the effective date of the the plan. ‘‘(I) the participant’s accrued benefit for amendment resulting in the plan becoming a For purposes of the preceding sentence, all years of service before the effective date of cash balance plan. multiemployer plans of which the same trust the amendment, determined under the terms ‘‘(iv) CASH BALANCE PLAN.—For purposes of forms a part shall be treated as 1 plan. For of the plan as in effect immediately before this paragraph, the term ‘cash balance plan’ purposes of this paragraph, if not all persons the effective date, plus means a defined benefit plan under which the who are treated as a single employer for pur- ‘‘(II) the participant’s accrued benefit de- rate of benefit accrual of any 1 participant poses of this section have the same taxable termined under the formula applicable to for a year of service is reduced as the years year, the taxable years taken into account benefit accruals under the current plan as of service of such participant increase.’’. shall be determined under principles similar applied to years of service after such effec- (B) AMENDMENT TO ERISA.—Section 204(g) of to the principles of section 1561. tive date. the Employee Retirement Income Security ‘‘(d) ELECTION TO CONTINUE BENEFIT ACCRU- ‘‘(ii) LARGE DEFINED BENEFIT PLAN.—For Act of 1974 (29 U.S.C. 1054(g)) is amended by ALS UNDER FORMER DEFINED BENEFIT PLAN purposes of this subparagraph, the term adding at the end the following new para- IN EVENT OF SIGNIFICANT REDUCTIONS IN FU- ‘large defined benefit plan’ means any de- graph: TURE BENEFIT ACCRUALS.—In the case that fined benefit plan which had 100 or more par- ‘‘(4)(A) For purposes of paragraph (1), in an applicable pension plan adopts an amend- ticipants who had accrued a benefit under the case of a plan amendment adopted by a ment which has the effect of significantly re- the plan (whether or not vested) as of the large defined benefit plan (as defined in sub- ducing the rate of future benefit accrual of 1 last day of the plan year preceding the plan section (h)(3)) which results in such plan be- or more participants, the requirements of year in which the plan amendment becomes coming a cash balance plan, such defined this subsection are met if the plan adminis- effective. benefit plan shall be treated as not satis- trator provides each participant who has a ‘‘(iii) PROTECTED ACCRUED BENEFIT.—For fying the requirements of this section unless nonforfeitable right to 100 percent of his ac- purposes of this subparagraph, an accrued such plan provides each participant with— crued benefits with— benefit shall include any early retirement ‘‘(i) notice and a written statement of ben- ‘‘(1) notice and a written statement of ben- benefit or retirement-type subsidy (within efit change which meets the requirements of efit change which meets the requirements of the meaning of subparagraph (B)(i)), but only subsection (h)(3), and section 401(a)(35), and with respect to a participant who satisfies ‘‘(ii) an election to continue to accrue ben- ‘‘(2) an election to continue to accrue bene- (either before or after the effective date of efits under such plan, determined under the fits under such plan, determined under the the amendment) the conditions for the ben- terms of such plan as in effect immediately terms of such plan as in effect immediately efit or subsidy under the terms of the plan as before the effective date of such plan amend- before the effective date of such plan amend- in effect immediately before such date.’’. ment. ment. (2) AMENDMENT OF ERISA.—Section 204(g) of ‘‘(e) TIMING OF ELECTION.—Except as pro- the Employee Retirement Income Security ‘‘(B) For purposes of subparagraph (A), an vided in regulations, the election required by Act of 1974 (29 U.S.C. 1054(g)) is amended by accrued benefit shall include any early re- subsection (d) shall be provided within a rea- adding at the end the following new para- tirement benefit or retirement-type subsidy sonable time before the effective date of such graph: (within the meaning of paragraph (2)(A)), but amendment. ‘‘(5)(A) For purposes of paragraph (1), a only with respect to a participant who satis- ‘‘(f) PROTECTED ACCRUED BENEFIT.—For plan amendment adopted by a large defined fies (either before or after the effective date purposes of this section, an accrued benefit benefit plan shall be treated as reducing ac- of the amendment) the conditions for the shall include any early retirement benefit or crued benefits of a participant if, under the benefit or subsidy under the terms of the retirement-type subsidy (within the meaning terms of the plan after the adoption of the plan as in effect immediately before such of section 411(d)(6)(B)(i)), but only with re- amendment, the accrued benefit of the par- date. spect to a participant who satisfies (either ticipant may at any time be less than the ‘‘(C) Except as provided in regulations, the before or after the effective date of the sum of— election required by subparagraph (A)(ii) amendment) the conditions for the benefit or ‘‘(i) the participant’s accrued benefit for shall be provided within a reasonable time subsidy under the terms of the plan as in ef- years of service before the effective date of before the effective date of the amendment fect immediately before such date. the amendment, determined under the terms resulting in the plan becoming a cash bal- ‘‘(g) APPLICABLE PENSION PLAN.—For pur- of the plan as in effect immediately before ance plan. poses of this section, the term ‘applicable the effective date, plus ‘‘(D) For purposes of this paragraph, the pension plan’ means a defined benefit plan ‘‘(ii) the participant’s accrued benefit de- term ‘cash balance plan’ means a defined that is subject to the notice requirements of termined under the formula applicable to benefit plan under which the rate of benefit section 401(a)(35).’’. benefit accruals under the current plan as accrual of any 1 participant for a year of (B) CLERICAL AMENDMENT.—The table of applied to years of service after such effec- service is reduced as the years of service of sections for chapter 43 of subtitle D of such tive date. such participant increase.’’. Code is amended by adding at the end the ‘‘(B) For purposes of this paragraph, the following new item: (3) EXCISE TAX ON FAILURE TO OFFER ELEC- term ‘large defined benefit plan’ means any TION.— ‘‘Sec. 4980F. Failure to offer election to con- defined benefit plan which had 100 or more (A) IN GENERAL.—Chapter 43 of subtitle D tinue benefit accruals under participants who had accrued a benefit under of the Internal Revenue Code of 1986 (relat- former defined benefit plan in the plan (whether or not vested) as of the ing to qualified pension, etc., plans) is event of significant reductions last day of the plan year preceding the plan amended by adding at the end the following in future benefit accruals.’’. year in which the plan amendment becomes new section: (4) EFFECTIVE DATES.— effective.

VerDate 02-MAY-2001 01:12 May 03, 2001 Jkt 089060 PO 00000 Frm 00090 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.024 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1825 ‘‘(C) For purposes of this paragraph, an ac- Mr. GUTKNECHT. Mr. Speaker, I dealt with this issue. They have not crued benefit shall include any early retire- know that we all have a lot of other dealt with this issue. Disclosure is fine, ment benefit or retirement-type subsidy issues going on and a lot of people are but disclosure will not help millions of (within the meaning of paragraph (2)(A)), but not paying attention, but this is a very workers who have already seen their only with respect to a participant who satis- fies (either before or after the effective date important point, because last year, pensions cut and many more who will of the amendment) the conditions for the about a year and a half ago, an awful see their pensions cut. Please vote benefit or subsidy under the terms of the lot of employees that worked for a ‘‘yes’’ on recommit. plan as in effect immediately before such great company that has been a great The SPEAKER pro tempore (Mr. date.’’. employer by the name of IBM, they QUINN). The gentleman’s time has ex- (3) EFFECTIVE DATE.—The amendments woke up one morning and all of a sud- pired. Is the gentleman from California made by this su,bsection shall apply to plan den their pension benefits were cut by (Mr. THOMAS) opposed to the motion to amendments taking effect after December 31, as much as 50 percent. The gentleman recommit? 1998. from Vermont (Mr. SANDERS) is exactly Mr. THOMAS. I am, Mr. Speaker. Mr. THOMAS (during the reading). right. The SPEAKER pro tempore. The gen- Mr. Speaker, I ask unanimous consent This is a good bill. The underlying tleman from California is recognized that the motion to recommit be consid- bill, the benefits, everything we do for 5 minutes. Mr. THOMAS. Mr. Speaker, the au- ered as read and printed in the RECORD. here is good, with one glaring excep- thors of the underlying bill said that The SPEAKER pro tempore. Is there tion: we do not define what the term they addressed the issue, not that they objection to the request of the gen- ‘‘vested’’ means. I want Members to all had dealt with it. This motion to re- tleman from California? think about that, what does ‘‘vested’’ commit is 22 pages of very specific di- There was no objection. mean? It means it is ours, it cannot be rected information that I will address The SPEAKER pro tempore. Pursu- taken away. That is not what the law ant to the rule, the gentleman from in a moment. in the United States says today. Those We have had an excellent discussion Vermont (Mr. SANDERS) is recognized pension benefits can be taken away. for 5 minutes in support of his motion about needful changes in the area of We have an opportunity in this bill pensions and IRAs. I would hope it is to recommit. to resolve that issue. If we do not do it Mr. SANDERS. Mr. Speaker, this enough for my colleagues to know that today, then shame on us. What hap- the gentleman from Ohio (Mr. issue affects the lives and well-being of pened to the IBMers we may not be millions of American workers, and I PORTMAN) and the gentleman from able to change, but remember this, Mr. Maryland (Mr. CARDIN) are in opposi- hope the Members would pay attention Speaker, if it could happen to good peo- to this debate. tion to this motion to recommit. This ple working at IBM a year ago, it can is not the way to deal with pension leg- This motion to recommit is cospon- happen to an awful lot of people work- sored by the gentleman from New York islation. ing in our districts tomorrow. Twenty-two specific pages. For exam- (Mr. HINCHEY), the gentleman from ple, in the materials explaining the bill Ohio (Mr. KUCINICH), and the gen- b 1515 it says, ‘‘The fact that cash balance tleman from Minnesota (Mr. GUT- The time is now to make this change. plan conversions violate current pen- KNECHT), so it has a tripartisan ele- Give those people that choice. Let us sion age discrimination laws is clear.’’ ment. vote for the motion to recommit. If it is clear, why on page 12, beginning Mr. Speaker, in the last several Mr. SANDERS. Mr. Speaker, I yield on line 6, does it say, ‘‘Directive. The years, major corporation after major to the gentleman from New York State Secretary of the Treasury shall apply corporation has cut back the pension (Mr. HINCHEY), who has been active on section 411 without regard to the por- benefits that they promised their this issue. tion of the preamble. Such preamble is workers. IBM, for example, which has a Mr. HINCHEY. Mr. Speaker, I thank and has been since its adoption without huge pension surplus, which pays its my friend, the gentleman from the force of law.’’ If it is clear, why do CEO $175 million over a 2-year period, Vermont, for yielding to me. my colleagues direct the Treasury to a said to its workers last year, yes, we Colleagues, this is a very important particular conclusion about that sec- made a promise to you, but we are issue. It is important because it affects tion? going to renege on that promise and, in our constituents; it affects their retire- It also involves the ERISA area, some cases, cut back the benefits that ment and their security and that of which is the jurisdiction of the com- you expected by 30 or 40 or 50 percent. their families. Across this country mittee of the gentleman from Ohio. That is wrong, and we have to deal some companies have changed their Mr. Speaker, I yield to the gentleman with it. Unfortunately, the underlying pension program from a defined benefit from Ohio (Mr. BOEHNER). legislation here does not in any mean- plan to a cash balance plan, thereby Mr. BOEHNER. Mr. Speaker, the mo- ingful way deal with this issue. The robbing their pension systems of enor- tion to recommit deals with the issue proponents of the bill say, we do deal mous amounts of money, billions of of cash balance pension plans, which with it, we do deal with it. But what we dollars, and reducing the pensions pro- are a form of defined benefit pension are really talking about is that we deal grams of virtually every employee. It plans that most of my colleagues on with it through disclosure. particularly adversely affects those the Democrat side want. We have had I guess it is a good thing to know in employees who are getting near retire- this huge decline in defined benefit advance if you are going to get the ment age. My colleagues’ constituents plans and a move toward defined con- death penalty. It helps. But more im- are affected by this. tribution plans. And as a way to save portantly, it would help if this legisla- We are not going to deal with this defined benefit plans, they came up tion did, as my amendment does, give issue outside of this bill. We are not with this idea of a cash balance conver- workers a choice. If a company is going going to return to the issue of pensions sion. to convert from defined benefits to anytime during this Congress. If we do These are very, very good for young- cash balance, workers should have a not do it now, it is not going to get er workers. And I might also add that choice, should not be forced to accept done; and the problem that exists will over 500 of these conversions have major cutbacks in pensions that were continue to exist and people will con- taken place. In almost every instance, promised to them. tinue to get hurt. the employer has in fact made all em- If Members are concerned about what Please join us in this simple motion ployees whole in the process. There happened at IBM, what happened at to recommit. Let us just correct this were some mistakes early on, but they other major corporations in America, one single deficiency in this bill, im- have been corrected. The gentleman let us stand up for those workers and prove it, and make it affect our con- from New Jersey (Mr. ANDREWS) and I, say, we support your right to have a stituents in a positive way. Vote for during the last administration, worked choice. the motion to recommit. with the Secretary of Labor, worked Support the motion to recommit. Mr. SANDERS. Mr. Speaker, let me with the White House, and came to an Mr. Speaker, I yield to the gentleman conclude by saying that the proponents agreement on this disclosure model from Minnesota (Mr. GUTKNECHT). of this bill will tell us that they have contained in this bill.

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00091 Fmt 7634 Sfmt 0634 E:\CR\FM\A02MY7.024 pfrm02 PsN: H02PT1 H1826 CONGRESSIONAL RECORD — HOUSE May 2, 2001 We should be very careful about the The SPEAKER pro tempore. The Diaz-Balart Kennedy (MN) Ros-Lehtinen Dooley Kerns Ross specific language in this motion to re- question is on the motion to recommit. Doolittle King (NY) Roukema commit that allows for choice, so that The question was taken; and the Dreier Kingston Ryan (WI) in the case of a cash balance conver- Speaker pro tempore announced that Duncan Kirk Ryun (KS) sion an employee could choose one or the noes appeared to have it. Dunn Knollenberg Sanchez Ehlers Kolbe Sandlin the other. This would require an em- Mr. SANDERS. Mr. Speaker, on that Ehrlich LaHood Saxton ployer to offer two separate plans. And I demand the yeas and nays. Emerson Lampson Scarborough they will do this: they will have no English Largent Schaffer The yeas and nays were ordered. Etheridge Larson (CT) Schiff plan, or there will be no conversion and The SPEAKER pro tempore. Pursu- Everett Latham Schrock then no defined benefit plan. ant to clause 9 of rule XX, the Chair Ferguson LaTourette Sensenbrenner It is a very bad and dangerous idea, will reduce to 5 minutes the minimum Flake Leach Sessions and we should reject this. Fletcher Lewis (CA) Shadegg time for any electronic vote on the Foley Lewis (KY) Shaw Mr. THOMAS. Mr. Speaker, it is my question of final passage. Ford Linder Shays pleasure to yield 30 seconds to the gen- The vote was taken by electronic de- Fossella Lipinski Sherman Frelinghuysen LoBiondo Sherwood tleman from North Dakota (Mr. POM- vice, and there were—yeas 153, nays EROY) in opposition to the motion to Gallegly Lucas (KY) Shimkus 276, not voting 2, as follows: Ganske Lucas (OK) Shows recommit. [Roll No. 95] Gekas Manzullo Simmons Mr. POMEROY. Mr. Speaker, I thank Gibbons Matheson Simpson the gentleman for yielding to me. YEAS—153 Gilchrest McCarthy (MO) Skeen Gillmor McCarthy (NY) Smith (MI) Colleagues, the bill contains lan- Abercrombie Hall (OH) Murtha Gilman McCrery Smith (NJ) Ackerman Hastings (FL) Nadler guage on disclosure for cash balance Gonzalez McHugh Smith (TX) Allen Hilliard Napolitano Goode McInnis Smith (WA) conversions advanced by the White Baca Hinchey Oberstar Goodlatte McIntyre Snyder House in consultation with Congress Baldacci Holden Obey Gordon McKeon Souder Baldwin Holt Olver last year. The motion should be de- Goss Mica Spence Barcia Honda Ortiz feated, because although it talks about Graham Miller (FL) Stearns Barrett Hooley Owens Granger Miller, Gary Stenholm mandating choice between defined ben- Becerra Inslee Pallone Graves Moore Stump efit and cash balance, it says nothing Bentsen Jackson (IL) Pascrell Green (WI) Moran (KS) Sununu Berkley Jackson-Lee Pastor about changing the pension plan all to- Greenwood Moran (VA) Sweeney Berman (TX) Payne Grucci Morella Tancredo gether for a defined contribution plan Blagojevich Jefferson Pelosi Hall (TX) Myrick Tanner or, worse, scrapping it all together. Blumenauer Johnson, E. B. Peterson (MN) Hansen Neal Tauscher Bonior Jones (OH) Phelps Those are much more serious options Harman Nethercutt Tauzin Boucher Kanjorski Rahall than moving from traditional defined Hart Ney Taylor (MS) Brown (FL) Kaptur Rangel Hastings (WA) Northup Taylor (NC) balance to cash balance. Brown (OH) Kennedy (RI) Reyes Hayes Norwood Terry Therefore, although well intended, Capps Kildee Rivers Hayworth Nussle Thomas Capuano Kilpatrick Rodriguez this motion does not work. It should be Hefley Osborne Thornberry Carson (IN) Kind (WI) Rothman Herger Ose Thune defeated. Carson (OK) Kleczka Roybal-Allard Hill Otter Tiahrt Mr. THOMAS. Mr. Speaker, I thank Clay Kucinich Rush Hilleary Oxley Tiberi Clayton LaFalce Sabo the gentleman. Hinojosa Paul Toomey Clyburn Langevin Sanders It is also true that members of the Hobson Pence Traficant Conyers Lantos Sawyer Hoeffel Peterson (PA) Turner Committee on Ways and Means are Costello Larsen (WA) Schakowsky Hoekstra Petri Upton very concerned about this, including Coyne Lee Scott Horn Pickering Vitter Cummings Levin Serrano the gentleman from Massachusetts Hostettler Pitts Walden Davis (IL) Lewis (GA) Skelton (Mr. NEAL), who indicated that it is not Houghton Platts Walsh DeFazio Lofgren Slaughter Hoyer Pombo Wamp the appropriate way to deal with this DeGette Lowey Solis Hulshof Pomeroy Watkins Delahunt Luther Spratt issue, through a motion to recommit; Hunter Portman Watts (OK) DeLauro Maloney (CT) Stark but that we would be pleased to look at Hutchinson Price (NC) Weldon (FL) Deutsch Maloney (NY) Strickland Hyde Pryce (OH) Weldon (PA) it in committee. Dicks Markey Stupak Isakson Putnam Weller As we continue through the 22 pages Dingell Mascara Thompson (CA) Israel Quinn Whitfield Doggett Matsui Thompson (MS) of this bill in terms of the specific di- Issa Radanovich Wicker Doyle McCollum Thurman rectives, my colleagues might also be Istook Ramstad Wilson Edwards McDermott Tierney Jenkins Regula Wolf interested to know that if they vote in Engel McGovern Towns John Rehberg Wu favor of the motion to recommit, on Eshoo McKinney Udall (CO) Johnson (CT) Reynolds Wynn Evans McNulty Udall (NM) page 16 they would be in favor of the Johnson (IL) Riley Young (AK) Farr Meehan Velazquez Johnson, Sam Roemer Young (FL) imposition of a tax. The tax is an ex- Fattah Meek (FL) Visclosky Jones (NC) Rogers (KY) cise tax. The amount of the tax im- Filner Meeks (NY) Waters Keller Rogers (MI) Frank Menendez Watt (NC) posed, and I am quoting, by subsection Kelly Rohrabacher A, shall be 50 percent of the amount of Frost Millender- Waxman Gephardt McDonald Weiner NOT VOTING—2 the excess pension assets in such plan. Green (TX) Miller, George Wexler Now, we are more than willing to Gutierrez Mink Woolsey Moakley Royce talk about reasonable adjustments Gutknecht Mollohan b 1546 where we find fault, but that is a bit NAYS—276 Mr. GILMAN changed his vote from Draconian. And I would only ask my Aderholt Bono Clement colleagues to look on page 22 of this Akin Borski Coble ‘‘yea’’ to ‘‘nay.’’ motion to recommit and look at the ef- Andrews Boswell Collins So the motion to recommit was re- fective date: ‘‘The amendments made Armey Boyd Combest jected. Bachus Brady (PA) Condit by this subsection shall apply to plan Baird Brady (TX) Cooksey The result of the vote was announced amendments taking effect after De- Baker Brown (SC) Cox as above recorded. cember 31, 1998.’’ Ballenger Bryant Cramer The SPEAKER pro tempore (Mr. Barr Burr Crane QUINN). The question is on the passage I would ask my colleagues, as this Bartlett Burton Crenshaw bill was constructed in a bipartisan Barton Buyer Crowley of the bill. way, let us reject this motion to re- Bass Callahan Cubin The question was taken; and the commit in a bipartisan way. Bereuter Calvert Culberson Speaker pro tempore announced that Berry Camp Cunningham Mr. Speaker, I yield back the balance Biggert Cannon Davis (CA) the ayes appeared to have it. of my time. Bilirakis Cantor Davis (FL) Mr. THOMAS. Mr. Speaker, on that I The SPEAKER pro tempore. Without Bishop Capito Davis, Jo Ann demand the yeas and nays. objection, the previous question is or- Blunt Cardin Davis, Tom The yeas and nays were ordered. Boehlert Castle Deal dered on the motion to recommit. Boehner Chabot DeLay The SPEAKER pro tempore. This There was no objection. Bonilla Chambliss DeMint will be a 5-minute vote.

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00092 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.095 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1827 The vote was taken by electronic de- Osborne Sanchez Taylor (MS) ELECTION OF MEMBERS TO CER- Ose Sandlin Taylor (NC) vice, and there were—yeas 407, nays 24, Otter Sawyer Terry TAIN STANDING COMMITTEES OF not voting 1, as follows: Oxley Saxton Thomas THE HOUSE Pallone Scarborough Thompson (CA) [Roll No. 96] Pascrell Schaffer Thompson (MS) Mr. FROST. Mr. Speaker, by direc- YEAS—407 Pastor Schakowsky Thornberry tion of the Democratic Caucus, I offer Paul Schiff Thune a privileged resolution (H.R. 129) and Abercrombie Delahunt Jackson-Lee Pelosi Schrock Thurman ask for its immediate consideration. Ackerman DeLauro (TX) Pence Scott Tiahrt Aderholt DeLay Jefferson Peterson (MN) Sensenbrenner Tiberi The Clerk read the resolution, as fol- Akin DeMint Jenkins Peterson (PA) Serrano Tierney lows: Allen Deutsch John Petri Sessions Toomey HOUSE RESOLUTION 129 Andrews Diaz-Balart Johnson (CT) Phelps Shadegg Towns Armey Dicks Johnson (IL) Pickering Shaw Traficant Resolved, That the following named Mem- Baca Dingell Johnson, E. B. Pitts Shays Turner bers be, and are hereby, elected to the fol- Bachus Doggett Johnson, Sam Platts Sherman Udall (CO) lowing standing committees of the House of Baird Dooley Jones (NC) Pombo Sherwood Udall (NM) Representatives: Baker Doolittle Jones (OH) Pomeroy Shimkus Upton Baldacci Doyle Kanjorski Portman Shows Velazquez Committee on Resources: Mr. Miller of Baldwin Dreier Kaptur Price (NC) Simmons Visclosky California to rank immediately after Mr. Ra- Ballenger Duncan Keller Pryce (OH) Simpson Vitter hall of West Virginia; Barcia Dunn Kelly Putnam Skeen Walden Committee on Science: Mr. Honda of Cali- Barr Edwards Kennedy (MN) Quinn Skelton Walsh fornia. Barrett Ehlers Kennedy (RI) Radanovich Slaughter Wamp Bartlett Ehrlich Kerns Rahall Smith (MI) Watkins The resolution was agreed to. Barton Emerson Kildee Ramstad Smith (NJ) Watt (NC) A motion to reconsider was laid on Bass Engel Kilpatrick Regula Smith (TX) Watts (OK) the table. Becerra English Kind (WI) Rehberg Smith (WA) Waxman Bentsen Eshoo King (NY) Reyes Snyder Weiner Bereuter Etheridge Kingston Reynolds Solis Weldon (FL) f Berkley Evans Kirk Riley Souder Weldon (PA) Berman Everett Kleczka Rivers Spence Weller Berry Farr Knollenberg Rodriguez Spratt Wexler REMOVAL OF NAME OF MEMBER Biggert Fattah Kolbe Roemer Stearns Whitfield AS COSPONSOR OF H.R. 39 Bilirakis Ferguson LaHood Rogers (KY) Stenholm Wicker Bishop Flake Lampson Rogers (MI) Strickland Wilson Mr. REYES. Mr. Speaker, I ask unan- Blagojevich Fletcher Langevin Rohrabacher Stump Wolf imous consent that my name be re- Blumenauer Foley Lantos Ros-Lehtinen Stupak Woolsey moved as a cosponsor of H.R. 39. Blunt Ford Largent Ross Sununu Wu Boehlert Fossella Larsen (WA) Rothman Sweeney Wynn The SPEAKER pro tempore. Is there Boehner Frelinghuysen Larson (CT) Roukema Tancredo Young (AK) objection to the request of the gen- Bonilla Frost Latham Royce Tanner Young (FL) tleman from Texas? Bonior Gallegly LaTourette Ryan (WI) Tauscher Bono Ganske Leach Ryun (KS) Tauzin There was no objection. Borski Gekas Levin Boswell Gephardt Lewis (CA) NAYS—24 f Boucher Gibbons Lewis (GA) Conyers Lee Payne Boyd Gilchrest Lewis (KY) Filner Matsui Rangel Brady (PA) Gillmor Linder Frank McDermott Roybal-Allard FISCAL YEAR 2002 BUDGET SUB- Brady (TX) Gilman Lipinski Gutknecht Neal Rush MISSION ON DISTRICT OF CO- Brown (FL) Gonzalez LoBiondo Hinchey Oberstar Sabo Brown (OH) Goode Lofgren Jackson (IL) Obey Sanders LUMBIA COURTS—MESSAGE Brown (SC) Goodlatte Lowey Kucinich Olver Stark FROM THE PRESIDENT OF THE Bryant Gordon Lucas (KY) LaFalce Owens Waters Burr Goss Lucas (OK) UNITED STATES (H. DOC. NO. 107- Burton Graham Luther NOT VOTING—1 63) Buyer Granger Maloney (CT) Moakley Callahan Graves Maloney (NY) The SPEAKER pro tempore laid be- Calvert Green (TX) Manzullo fore the House the following message Camp Green (WI) Markey b 1602 from the President of the United Cannon Greenwood Mascara States; which was read and, together Cantor Grucci Matheson Mrs. MEEK of Florida changed her Capito Gutierrez McCarthy (MO) vote from ‘‘yea’’ to ‘‘nay.’’ with the accompanying papers, without Capps Hall (OH) McCarthy (NY) So the bill was passed. objection, referred to the Committee Capuano Hall (TX) McCollum on Appropriations and ordered to be Cardin Hansen McCrery The result of the vote was announced Carson (IN) Harman McGovern as above recorded. printed: Carson (OK) Hart McHugh A motion to reconsider was laid on To the Congress of the United States: Castle Hastert McInnis the table. Chabot Hastings (FL) McIntyre In accordance with the District of Chambliss Hastings (WA) McKeon Columbia Code, as amended, I am Clay Hayes McKinney f transmitting the District of Columbia Clayton Hayworth McNulty Courts FY 2002 Budget Submission. Clement Hefley Meehan GENERAL LEAVE Clyburn Herger Meek (FL) The District of Columbia Courts have Coble Hill Meeks (NY) Mr. THOMAS. Mr. Speaker, I ask submitted a FY 2002 budget request for Collins Hilleary Menendez unanimous consent that all Members $111.7 million for operating expenses, Combest Hilliard Mica may have 5 legislative days within Condit Hinojosa Millender- $41.4 million for capital improvements Cooksey Hobson McDonald which to revise and extend their re- to courthouse facilities, and $39.7 mil- Costello Hoeffel Miller (FL) marks and include extraneous material lion for Defender Services in the Dis- Cox Hoekstra Miller, Gary on H.R. 10, the bill just passed. trict of Columbia Courts. My FY 2002 Coyne Holden Miller, George Cramer Holt Mink The SPEAKER pro tempore (Mr. budget includes recommended funding Crane Honda Mollohan QUINN). Is there objection to the re- levels of $105.2 million for operations, Crenshaw Hooley Moore quest of the gentleman from Cali- $6.0 million for capital improvements, Crowley Horn Moran (KS) fornia? Cubin Hostettler Moran (VA) and $34.3 million for Defender Services. Culberson Houghton Morella There was no objection. My transmittal of the District of Co- Cummings Hoyer Murtha lumbia Courts’ budget request does not Cunningham Hulshof Myrick f represent an endorsement of its con- Davis (CA) Hunter Nadler tents. Davis (FL) Hutchinson Napolitano MESSAGE FROM THE PRESIDENT Davis (IL) Hyde Nethercutt I look forward to working with the Davis, Jo Ann Inslee Ney A message in writing from the Presi- Congress throughout the FY 2002 ap- Davis, Tom Isakson Northup dent of the United States was commu- Deal Israel Norwood propriations process. DeFazio Issa Nussle nicated to the House by Ms. Wanda GEORGE W. BUSH. DeGette Istook Ortiz Evans, one of his secretaries. THE WHITE HOUSE, May 2, 2001.

VerDate 02-MAY-2001 02:41 May 03, 2001 Jkt 089060 PO 00000 Frm 00093 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.099 pfrm02 PsN: H02PT1 H1828 CONGRESSIONAL RECORD — HOUSE May 2, 2001 REMOVAL OF NAME OF MEMBER In 1969, he commanded a company of physical and moral/ethical develop- AS COSPONSOR OF H.R. 39 the 101st Airborne Division in combat ment of programs at the academy have Mr. LATOURETTE. Mr. Speaker, I in Southeast Asia. General Christman never been stronger and never been ask unanimous consent that my name occupied senior executive positions in more connected to the Army. With his be removed as a cosponsor of H.R. 39. Washington, D.C., requiring creative actions, General Christman has set the The SPEAKER pro tempore. Is there leadership and strategic vision. He course for officer education into the objection to the request of the gen- served as a staff assistant with Na- first half of the new century. tleman from Ohio? tional Security Council in the Ford A consummate professional, General There was no objection. White House. Prior to his West Point Christman’s performance of duty dur- ing his long illustrious career exempli- f assignment, he served as an assistant to the chairman of the Joint Chiefs of fies the finest traits of duty, honor, SPECIAL ORDERS Staff, advising the Secretary of State and country. His service reflects a deep The SPEAKER pro tempore (Mr. on a broad range of military and na- commitment to West Point, the Army, GRAVES). Under the Speaker’s an- tional security issues such as arms and to our Nation. nounced policy of January 3, 2001, and control with the Russian Federation Mr. Speaker, I ask my colleagues to under a previous order of the House, and the Middle East peace negotiations join me in thanking General Daniel the following Members will be recog- between Israel and Syria. Christman for his honorable service to nized for 5 minutes each. In June 1996, General Christman be- the citizens of the United States of f came the 55th superintendent of the America. I wish him, his lovely and in- U.S. Military Academy. Through his telligent wife, Susan, and their chil- TRIBUTE TO LIEUTENANT GEN- tenure, he demonstrated an exceptional dren continued success and happiness ERAL DANIEL WILLIAM combination of intelligence, character, in all of their future endeavors. CHRISTMAN and positive personality notable even Mr. SPENCE. Mr. Speaker, I rise today to The SPEAKER pro tempore. Under a in this highly selective environment. recognize an exceptional United States Army previous order of the House, the gentle- From the outset, he sought the com- officer, Lieutenant General Daniel W. woman from New York (Mrs. KELLY) is ments and insight of graduates, the Christman. Next, month, General Christman recognized for 5 minutes. academy, and even the neighboring completes a highly successful five year as- GENERAL LEAVE community to give them a closer iden- signment as the Superintendent of the United Mrs. KELLY. Mr. Speaker, I ask tification with and support for the in- States Military Academy, West Point, New unanimous consent that all Members stitution and decisions that were ulti- York. It is a pleasure for me to recognize a may have 5 legislative days within mately made. few of his many outstanding achievements. which to revise and extend their re- Development of a more cooperative A native of Hudson, Ohio, General marks and include extraneous material and positive environment has been the Christman graduated first in his class from the on the subject of my Special Order. hallmark of his superintendency. United States Military Academy in 1965. He The SPEAKER pro tempore. Is there General Christman arrived at West holds master’s degrees in civil engineering objection to the request of the gentle- Point at a time of significant financial and public affairs from Princeton University woman from New York? constraints. Severe cutbacks to the and a law degree from George Washington There was no objection. Army budget had seriously affected University. He is also a graduate of the Army Mrs. KELLY. Mr. Speaker, I rise both programs and infrastructure at Command and General Staff College and the today to recognize the outstanding the academy. He undertook strenuous National War College. He is a member of the service of Lieutenant General Daniel efforts to obtain the critical funding Pennsylvania and Washington, D.C. Bars and William Christman. General Christman support for an institution that was be- he is also a member of the Council on Foreign will retire on June 30, 2001, after an hind not only other colleges but also Relations. outstanding career of more than 36 many Army posts. Through his efforts General Christman’s major command as- years of service in peace and in war to and the support of the Army staff, he signments include serving as the nineteenth the Army and to our Nation. gained pledges for the funding nec- United States Representative to the North At- General Christman is currently serv- essary to restore the institution to a lantic Treaty Organization (NATO) Military ing out his final 2 months as super- competitive sustainment level nec- Committee, Brussels, Belgium (1993–94); intendent of the United States Military essary to encourage officers and sol- Commanding General, United States Army Academy. In this capacity, General diers to serve at West Point and to at- Engineer Center and Fort Leonard Wood, and Christman charted the course for offi- tract high-quality young cadets to em- Commandant, United States Army Engineer cer education into the new century. bark upon a career of service to the School, Fort Leonard Wood, Missouri (1991– Under his guidance, the academy craft- Army. 93); Commander of the Savannah District, ed a new mission statement, strategic At the same time, he tirelessly dealt United States Army Corps of Engineers in Sa- vision, and new public-funding struc- with the Department of Defense and vannah, Georgia (1984–86); Commander of ture needed to enable the institution to Members of Congress to make the case the 54 Engineer Battalion in Wildflecken, Ger- compete and excel in an era of trans- for critical funding for West Point. The many (1980–82); Company Commander in the formation. successful completion of Arvin Gym 326th Engineer Battalion, Hue, Vietnam His assessment of current needs and will be of great credit to Dan (1969–70); and Company Commander, 2nd insight of future possibilities has re- Christman. Engineer Battalion, Changpo-Ri, Korea (1966). sulted in a revised academic cur- In concert with his desire to prepare His major staff assignments involved service riculum and increased focus on the pro- the institution for the next century, he as a Staff Officer in the Office of the Deputy fession of officership. General revised the institution’s formal mis- Chief of Staff for Operations, Department of Christman leaves a notably improved sion statement to a more comprehen- the Army, Washington, D.C. (1976–78) and as academy in terms of leadership facili- sive expression of its foundation and a Staff Assistant with the National Security ties and morale. objectives. His leadership was also in- Council, The White House (1975–76). In both Prior to undertaking this role, Gen- strumental in establishment of the of these assignments, General Christman was eral Christman has distinguished him- William E. Simon Center. The center responsible for advising the Army Chief of self in numerous command and staff will promote the study of the profes- Staff and senior staff on the Strategic Arms positions with U.S. forces stationed sional military ethic in the Army and Limitation Talks (SALT). Further, he was both overseas and in the continental nationally. This project is but one ex- called upon to testify before the House Select United States. ample of General Christman’s efforts to Committee on Intelligence regarding Soviet In Europe, his assignments included enlist the skills, talents, and character compliance with earlier arms control agree- serving as the 19th U.S. representative of the West Point community for a ments. to NATO Military Committee, Brus- broader national purpose. General Christman served for 21 months as sels, Belgium, and Commander of the He leaves a notably improved acad- Assistant to the Chairman of the Joint Chiefs 54th Engineer Battalion in emy in terms of leadership, facilities, of Staff, General John M. Shalikashvili (1994– Wildflecken, Germany. and morale. The military, academic, 96). In this capacity, he supported Secretary

VerDate 02-MAY-2001 02:41 May 03, 2001 Jkt 089060 PO 00000 Frm 00094 Fmt 7634 Sfmt 9920 E:\CR\FM\K02MY7.104 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1829 of State Warren Christopher as a member of representing several fine military The SPEAKER pro tempore. Under a the Middle East Peace Negotiating Team and bases. As such, I am honored to rep- previous order of the House, the gen- in arms control negotiations with the Russian resent the men and women in uniform tleman from California (Mr. HORN) is Federation. Additionally, General Christman at these installations who give their all recognized for 5 minutes. served for a year and a half as Army adviser to make the United States military the (Mr. HORN addressed the House. His to the Chairman of the Joint Chiefs of Staff, greatest fighting force in the world. remarks will appear hereafter in the Admiral William J. Crowe, and then as Assist- They carry out their duties daily Extensions of Remarks.) ant to the Attorney General of the United knowing that at any moment they f States for National Security Affairs. might be asked to put their lives on ECONOMIC DISASTER IN KLAMATH General Christman also served as Director the line to defend our freedoms. BASIN of Strategy, Plans and Policy in the Depart- While I feel this same dedication to ment of the Army Headquarters, Washington, all of the military personnel in my dis- The SPEAKER pro tempore. Under a trict and around the world, I am here D.C. His duties in this assignment focused on previous order of the House, the gen- today to pay special tribute to two of negotiations relating to the Conventional tleman from Oregon (Mr. WALDEN) is the bases in my district, Seymour Forces in Europe (CFE) arms control talks be- recognized for 5 minutes. Johnson Air Force Base and Marine tween the NATO and the Warsaw Pact. In the Mr. WALDEN of Oregon. Mr. Speak- Corps Base Camp Lejeune. course of supporting these negotiations on be- er, we are in the midst of an economic On March 23, the Pentagon an- disaster in the Klamath Basin of Or- half of the Chief of Staff of the Army and the nounced the winners of the Commander Chairman of the Joint Chiefs of Staff, General egon that demands the attention of in Chief’s Award for Installation Excel- Congress and this country. Christman briefed former President Bush and lence. Camp Lejeune was named best of traveled to Europe to brief allied heads of The good people of this Basin were the Marine Corps and Seymour John- lured there by a promise made by the state and the NATO Secretary General. He son was honored as being the best of all has also been called upon to testify before the Federal Government nearly a century military bases across the services. ago: ‘‘Come settle the West, and we Congress on CFE initiatives, as well as on Each year, U.S. military installa- will provide you with land and water; other topics relating to our NATO commit- tions around the world compete within ments and Army force structure. their branch of service for this award. produce food for our Nation, secure our On June 24, 1996, Lieutenant General Dan- Five awards are given out to the best western expansion, and we will reward iel W. Christman arrived for duty as the 55th of the best of all of the bases. It is you.’’ Superintendent of the United States Military quite a distinction. The criterion for Moreover, the government gave first Academy at West Point. In this capacity, he qualifying is daunting. So I cannot priority to the men and women who was charged with educating, training, and in- truly express the pride that I felt to fought for our Nation’s freedom in spiring the Corps of Cadets, so that each learn that two of the five best bases in World War I and World War II. Yes, our graduate is a commissioned leader of char- the world are in the Third District of veterans who risked life and limb were acter committed to the values of duty, honor, North Carolina. rewarded, indeed enticed, to help the and Country; professional growth throughout a These awards are a tribute to com- government reclaim the land and feed career as an officer in the United States Army; mitment to excellence of the men and the country. and a lifetime of selfless service to our Nation. women who serve at these bases. They In 1905, the newly created Bureau of Among his military decorations are the De- are also tributes to the fine leadership Reclamation started construction of fense Distinguished Service Medal (two at each installations: General Norman the Klamath Reclamation Project on awards), Distinguished Service Medal (two Seip at Seymour Johnson Air Force the land surrounding Upper and Lower awards), Defense Superior Service Medal, Le- Base and General Ron Richard at Camp Klamath Lakes in Oregon. It is on the gion of Merit (two awards), Bronze Star Medal Lejeune. Oregon-California border. The project, (two awards), Meritorious Service Medal (two I commend all of them for not just using dams, canals and ditches, awards), and the Air Medal (three awards). the dedication that it takes to win brought water to the arid land. these pivotal awards but to their great Mr. Speaker, Dan Christman has come to Three years later, President Theo- service to our Nation. dore Roosevelt designated our coun- epitomize those qualities that we as a Nation Mr. Speaker, this Friday the five have come to expect from our Army—abso- try’s first national wildlife refuge in bases that received the Commander in the Klamath Basin. Roosevelt under- lutely impeccable integrity and character, as Chief’s Award for Installation Excel- well as professionalism. He has served our stood and supported the need for irri- lence will be honored during a cere- gated agriculture and the inter- Country with distinction for the past 36 years, mony at the Pentagon. and he has demonstrated a dedication to duty relationship the project had with the that is in keeping with the highest standards b 1615 refuge. For years, farming and wildlife coex- and proud traditions of the Armed Forces of While schedule conflicts will unfortu- isted beneficially. Water from the our Nation. As he moves into new endeavors, nately prevent me from attending the project fed into the refuge, and farmers I call upon my colleagues from both sides of ceremony, I wanted the men and grew crops that in part were available the aisle to wish him and his lovely wife, women who serve at Seymour Johnson for the birds. A resurgence of bald ea- Susan, much continued success. Air Force Base and the Marine Corps’ gles occurred. f Camp Lejeune to know I am truly hum- bled and honored to be their represent- Today, of all this is threatened; the The SPEAKER pro tempore. Under a ative in the United States Congress. quality of the refuge, the livelihood of previous order of the House, the gen- So I offer my most heartfelt con- the farmers. Why? Because over time tleman from Missouri (Mr. SKELTON) is gratulations to Marine Corps Base the government has passed new laws recognized for 5 minutes. Camp Lejeune and the people of Jack- that reallocate the water in more ways (Mr. SKELTON addressed the House. sonville, North Carolina, and to Sey- than there is water. And on April 6, the His remarks will appear hereafter in mour Johnson Air Force Base and the Bureau of Reclamation announced for the Extensions of Remarks.) people of Goldsboro, North Carolina, on the first time in this country’s history, f being recognized for what we in North there would be no water for farmers. Carolina have known all along, that None. Zip. Zilch. Nada. The headgates COMMANDER IN CHIEF’S AWARD they are indeed the best in the world. would remain closed. The canals would FOR INSTALLATION EXCELLENCE f remain dry. The farmers were on their The SPEAKER pro tempore. Under a The SPEAKER pro tempore (Mr. own. previous order of the House, the gen- GRAVES). Under a previous order of the Suckers, that is right, sucker fish, in tleman from North Carolina (Mr. House, the gentlewoman from the Dis- Upper Klamath Lake now had to be JONES) is recognized for 5 minutes. trict of Columbia (Ms. NORTON) is rec- saved at all costs. Higher lake levels Mr. JONES of North Carolina. Mr. ognized for 5 minutes. were set. Meanwhile, other biologists Speaker, as the elected representative (Ms. NORTON addressed the House. said more water must flow down the of North Carolina’s Third Congres- Her remarks will appear hereafter in Klamath River to help threatened sional District, I have the privilege of the Extensions of Remarks.) salmon runs. More water in the lake. H1830 CONGRESSIONAL RECORD — HOUSE May 2, 2001 More water in the river. But no water (Mr. BURTON of Indiana addressed eral Government to protect these for farmers. the House. His remarks will appear roadless areas. As a consequence, the The Endangered Species Act is sup- hereafter in the Extensions of Re- last administration issued a rule that posed to have a reasonable and prudent marks.) did exactly that, that followed 96 per- test, so I ask you, is it reasonable and f cent of the people in the State of Wash- prudent to bankrupt nearly 2,000 farm ington, who responded to this issue, to families? Is it reasonable and prudent PROTECTING ROADLESS AREAS protect these roadless areas. to bring economic disaster to an entire IMPORTANT TO COUNTRY So it seems to me, when 96 percent of basin? Is it a reasonable and prudent The SPEAKER pro tempore. Under a the people tell their Federal Govern- operations plan for the project to not previous order of the House, the gen- ment what they want, the Federal Gov- operate the project? Monday, a Federal tleman from Washington (Mr. INSLEE) ernment ought to respond, ought to lis- Court basically said yes. is recognized for 5 minutes. ten to those wishes. But, unfortu- Well, I could not disagree more, and Mr. INSLEE. Mr. Speaker, I come to nately, following a long series of lis- these new requirements are anything the well today to alert the House to a tening to the special interests, we are but reasonable and prudent for the decision that the administration will very concerned that the Bush adminis- farming families and the communities make this Friday, May 4, extremely tration will in fact take a dive in this in the Klamath Basin. important to the future of our forests lawsuit of folks who are seeking to So today we are facing a disaster, in this Nation, because this Friday, overturn this rule. and today we must decide as a Nation this administration will either come to The reason I say that is a recent if we are going to pass laws for the the aid, to the preservation of our Washington Post article that revealed ‘‘benefit’’ of the whole country; then, if roadless areas and our Forest Service that the administration had asked the those laws bring about the demise of a land, or it will take a dive and refuse, Attorney General for ways to get out few, the whole Nation needs to com- in fact, to defend the law of the United from underneath this rule, to in fact pensate the few for their loss. States that is designed to protect these take a dive. We had testimony in my So I am proceeding with aggressive roadless areas in a lawsuit in Idaho. I Committee on Resources a couple of efforts to get disaster relief to the am here to urge this administration to weeks ago where a Department of Agri- farmers and others in the Basin who follow the law, to follow the will of the culture official revealed, in fact, they are living this hardship every day. I am American people to protect these last had been asked about how to do ex- also working closely with the Bush ad- remaining roadless areas in our forest actly that in this rule. That would be ministration to step up efforts to add lands. wrong. What would be right would be to the water storage in the Basin, so Let me tell you why I feel strongly to listen to the will of the American that fish and farmers will have ade- about that. A couple months ago the people and let this roadless policy quate supplies in the years ahead. President came to this Chamber and stand. If the government is going to allo- gave a speech that was well received. I will tell you why Americans feel so cate more water than it has, then it One of the things he said, he quoted strongly about it. It is my second point darn well better figure out how to keep Yogi Berra, which I liked, he quoted here today. This roadless area policy is its commitment by adding to the stor- Yogi Berra in the famous quote, ‘‘When required to respond to certain Amer- age. you come to a fork in the road, take ican values of taking care of your nat- I commend the gentleman from Utah it.’’ But unfortunately, recently this ural world, to preserve it for your her- (Chairman HANSEN) for appointing a bi- President has taken the fork and he itage and your kids and grandkids and partisan task force to look into the En- stuck it in every environmental policy great-grandkids. In fact, what we found the testimony dangered Species Act and how it is af- that has come before him on his plate. in these 600 meetings revealed is, peo- fecting people and communities. Today May 4, this Friday, is an opportunity ple do not want to see their salmon I have asked him to use the situation for this President to change that pat- habitats destroyed by clear-cutting, be- in the Klamath Basin specifically as a tern of failure for our environment by, cause what we found in the State of perfect example of the problem we face. in fact, defending the roadless area pol- Washington is, when you do this clear- Too often in the past, the Federal icy that needs defending in a lawsuit in cutting in these roadless areas, you get Government has set the standards and Idaho. erosion off the hills and that silts up then gotten in the way of our ability to Let me tell you why, clearly, the ad- the salmon streams and that destroys achieve them. Today, I met with Fed- ministration ought to take these steps. the salmon and that creates an endan- eral officials and urged them to let Or- Number one, the American people want gered species, and that ends salmon egonians have more say in how we it. In one of the most exhaustive proc- fishing in the Northwest, a heritage meet Federal laws. What we need most esses in adopting the roadless area pol- right now is for the Federal Govern- that we have enjoyed throughout the icy, we have come to a very clear con- generations. ment to work with us, not against us; sensus that in fact the American peo- This roadless area is designed to pre- to stand up for balance, not disaster. ple want this roadless policy. They vent the end of salmon in the Pacific This administration has tried in vain want their wilderness areas protected. Northwest and other places. We need to find a way to provide water to farm- They want their old growth protected this administration to listen to the ers this year, but they were boxed in by from the incursions of roads for clear- people who said we want to preserve the unworkable requirements of the cutting, for oil drilling, for mining. our salmon. Endangered Species Act. They have in- How do I know that? I know that be- So, Mr. Speaker, in conclusion, I just herited a mess, but at least they are cause the Forest Service conducted want to say it is not the time to start working with us to bring a change. over 600 meetings over the last couple drilling in our National Forests. We From the dust bowl and disaster that of years in every corner of this coun- ought to stick with this roadless pol- will result this summer perhaps will try. In my State of Washington they icy. It certainly would be wrong to rise the change that is so needed and so had scores of meetings, in towns like drill in our National Forests at the overdue. We should never have ended Morton and Okanagan, not just Se- same time we do not increase the aver- up in this place. attle, but little areas, 600 meetings, age mileage for our vehicles. Perhaps the recognition will come where over 1.6 million Americans told f that people and communities must be their Federal Government what they part of any successful effort to improve thought about the roadless policy. GOVERNMENT BANKRUPTING our environment and not simply dou- The results were amazing. In Wash- KLAMATH BASIN AREA ble-crossed and run off the land. ington State there were tens of thou- The SPEAKER pro tempore. Under a f sands of people who contacted their previous order of the House, the gen- The SPEAKER pro tempore. Under a government. You know what they told tleman from California (Mr. HERGER) is previous order of the House, the gen- their Federal Government? Ninety-six recognized for 5 minutes. tleman from Indiana (Mr. BURTON) is percent of the people who responded in Mr. HERGER. Mr. Speaker, a govern- recognized for 5 minutes. the State of Washington told their Fed- ment-caused disaster is bankrupting an

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00096 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.112 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1831 entire farming community in the We have seen lives lost because of the States to avert civil conflagration because of a Klamath Basin of Northern California. Endangered Species Act, preventing us popular uprising against his regime. The civil Families are being told simply that from fixing levees. We have seen the unrest arose following a controversial election there is zero water for farming this rights of property owners trampled. in which President Marcos claimed to have year. It is an unspeakable tragedy and Now we are seeing people lose all they defeated Corazon Aquino but was widely ac- an appalling example of the power of have or worked for. The loss of life, the cused of election fraud. Growing street dem- the Endangered Species Act. loss of livelihoods, the trouncing of onstrations in support of Mrs. Aquino raised This is a poster child for the need to fundamental rights to freedom and the fears of violence against what many viewed as reform this misguided law and for all pursuit of the American dream, all of a fraudulent election result. President Marcos that is wrong, unjust and unbalanced this is occurring under the extremes of left the Philippines on February 25, 1986 at with extreme environmental policies. the Endangered Species Act. U.S. urging and went into exile in Hawaii. It is a heartbreaking example of how I would venture to guess that this is President Marcos, his wife Imelda and 88 people, families and, indeed, entire not what the American people truly members of his staff and their families were communities, can be sacrificed at the want, and that this is not what Con- advised that they were being allowed into the stroke of a biologist’s pen, and based gress envisioned when it crafted this United States with ‘‘parole’’ status for the con- on nothing more than incomplete data, legislation more than 30 years ago. venience of the U.S. Government. This status speculation and guesswork. I am committed to making sure the is a legal fiction in which the individual is There is little consideration given to entire Nation knows that this is hap- physically present in the United States but had the human species under the Endan- pening, and to working with this Con- never been ‘‘admitted’’ to the United States. gered Species Act. Once an animal or gress and with the administration in The Immigration and Naturalization Service fish species is listed, its needs must making sure that it does not happen (INS) can terminate parole status at any time. come first, before the rights and liveli- ever again. We need a fundamental The individual can be treated as if he or she hoods of the American people. This is change in this law so that we can pre- had entered the United States illegally and not reasonable, it is not balanced, it is vent our local economies and the envi- had no right to be here. In this case, it is ex- not prudent. ronment from being pitted against one tremely unfair. Farmers should be irrigating right another. If we put a man on the moon, INS has instituted proceedings to expel now, but the normally bustling towns I know that we can do this. some of these individuals and their families of the Klamath Basin in Northern Cali- but not all of them. The only pattern which fornia and Southern Oregon are quiet. f seems to exist is that only individuals living in Without water for the crops that drive The SPEAKER pro tempore. Under a Hawaii are targeted for removal or exclusion this economy, farmers cannot work in previous order of the House, the gen- proceedings. Based on reports I have re- their fields; the fertilizer companies, tleman from New Mexico (Mr. UDALL) the maintenance shops, all agricul- is recognized for 5 minutes. ceived, no member of the Marcos entourage tural-related businesses are closing. (Mr. UDALL of New Mexico ad- who moved to the mainland had been the tar- Delivery trucks and processing plants dressed the House. His remarks will ap- get of any exclusion, deportation or removal sit idle. Unemployment will rise. pear hereafter in the Extensions of Re- proceeding. More than 12 years ago the govern- marks.) These immigrants were invited to the United ment decided that a species of fish was f States to help care for President Marcos who in decline and had to be protected The SPEAKER pro tempore. Under a was already ailing and died in 1989. They under the Endangered Species Act, de- previous order of the House, the gen- were told that they could bring their families spite the fact that nobody really knows tleman from Pennsylvania (Mr. with them. They have been in the United States for fourteen years and are fully inte- how many fish there are, how many PLATTS) is recognized for 5 minutes. there have been historically, and how (Mr. PLATTS addressed the House. grated into our society. These people should many there should be. But because the His remarks will appear hereafter in not be deported. They came to the U.S. for an ESA requires protection at any cost the Extensions of Remarks.) important reason. Because that reason is now past should not cause us to turn against them. and all costs, the water has been shut f off completely and there will be no To rectify this unfair treatment, the bill The SPEAKER pro tempore. Under a grants the individuals and their families the farming this year. The Federal Govern- previous order of the House, the gen- ment has reneged on its promise and right to remain in the United States. These tleman from Colorado (Mr. UDALL) is honest, hardworking people came to the has left these farmers wondering how recognized for 5 minutes. this could happen. United States at the invitation of our govern- (Mr. UDALL of Colorado addressed ment. Their presence was known and they But, Mr. Speaker, this need not hap- the House. His remarks will appear pen. Three decades ago this country have done nothing to violate our immigration hereafter in the Extensions of Re- laws. To uproot them would be an injustice to put men on the moon. With technology marks.) and know-how, the impossible became them and their families that we should not possible, and I know that we can do f allow. this in the Klamath Basin and through- The SPEAKER pro tempore. Under a The exile Marcos government in Hawaii was out the country. previous order of the House, the gentle- instigated by the U.S. to save the Philippines Protecting the environment and woman from California (Ms. SANCHEZ) from political turmoil and rebellion. Those who maintaining our local economies need is recognized for 5 minutes. came to implement this policy to end civil un- not be mutually exclusive. In fact, we (Ms. SANCHEZ addressed the House. rest in the Philippines should have the protec- have studies that tell us, as surprising Her remarks will appear hereafter in tion of this government. as this may seem, that more water the Extensions of Remarks.) I urge my colleagues to support this bill. does not necessarily equal more fish. f f b 1630 IMMIGRATION RELIEF FOR THE IN SUPPORT OF A MISSILE The issue is one of water quality, and SUPPORT STAFF OF FERDINAND DEFENSE SHIELD FOR AMERICA we can do some things to improve that MARCOS The SPEAKER pro tempore. Under a for the fish without simply taking The SPEAKER pro tempore. Under a previous order of the House, the gen- water from our farmers. But the ex- previous order of the House, the gentle- tleman from California (Mr. HUNTER) is treme environmentalists want this to woman from Hawaii (Mrs. MINK) is rec- recognized for 5 minutes. be an either/or proposition. ognized for 5 minutes. Mr. HUNTER. Mr. Speaker, the Many of us have been working for Mrs. MINK of Hawaii. Mr. Speaker, today I President of the United States has years to fundamentally change the rise to re-introduce a bill that provides immi- stated to the world that he is going to ESA, knowing that it allows for just gration relief for the support staff of Ferdinand embark on a program to defend the this kind of tragic result. We have sim- Marcos. This bill is similar to H.R. 4370, which American people from incoming bal- ply asked for reasonableness, for com- I introduced in the 106th Congress. listic missiles. mon sense, for balance between the In 1986, President Marcos of the Philippines This position, this statement, has needs of people and the needs of fish. was granted political asylum in the United started the machinery of dissent

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00097 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.115 pfrm02 PsN: H02PT1 H1832 CONGRESSIONAL RECORD — HOUSE May 2, 2001 throughout the United States, and in- selves. North Korea now has recently military retires, he or she may join the deed, in some of the forums of govern- tested a missile which, if we extrapo- Survivors Benefit Plan, known as SBP. ment in adversarial states and in some lated its flight, would have enough After paying a premium for many, of our allied states, with some of our stretch, enough distance to get to the many years, the retiree expects that friends around the world. United States, or at least parts of the his or her spouse will receive, as is Mr. Speaker, today it is against the United States. claimed in the literature, 55 percent of law for the United States of America to Iraq and Iran are now testing mis- the retired military pay when that vet- defend itself from incoming ballistic siles with increasing capabilities. They eran dies. missiles. It is against the treaty known never signed any ABM treaty or agree- But it turns out, in a very painful re- as the ABM treaty. That treaty has the ment not to defend themselves, or for alization, that this is not the case. force of law in this country. the United States not to defend itself Most of the survivors who receive SBP That means that if Russia, for exam- against incoming missiles. They never benefits are military widows. We may ple, should launch a ballistic missile to signed the ABM treaty. North Korea not realize it, but when these widows the United States, we have agreed, we did not sign the treaty. China did not who are receiving SBP benefits turn 62, have promised in a treaty, not to try to sign the treaty. what is called a Social Security offset destroy that missile but to let it land As time goes on, we are going to see causes their benefits to be reduced in the United States and destroy mil- that this is the age of missiles. More from the 55 percent they thought they lions of Americans, presumably, if it and more nations are building those were getting to 35 percent of their hus- hits in a major city, or if it hits in a missiles. To some degree, we are like band’s military retired pay. That is military installation, destroy thou- this country was in the 1920s when Gen- quite a shock for widows. sands of American uniformed service eral Billy Mitchell came back to the This occurs even when the Social Se- personnel. Coolidge administration and said, ‘‘You curity comes from the wife’s employ- Now, we made this agreement with know something, we live in an age of ment. That is, they were entitled to Russia, which seems like a stupid air power. We had better start building the Social Security, the premium was agreement, I think, to most people airplanes, because lots of other people, paid for for their retirement, and yet, looking at it intuitively for the first including potential adversaries, are they offset one another. time, we made this agreement with building airplanes. If we do not build Let me tell Members what this Russia when they had an extremely airplanes, if we do not get into the means to a military widow. I have re- large nuclear arsenal and we had an ex- aerospace age, we are going to lose a ceived a lot of letters on this topic tremely large nuclear arsenal. We lot of Americans dead on the battle- from my constituents and from around thought that the best way to prevent a field of the next war.’’ the country. Here is what one of them war from starting was to say that nei- We did not pay too much attention to says: ther one of us would protect ourselves. Billy Mitchell. In fact, we court- My husband, who served in the Army for 20 So if they threw the first the first martialed him for saying the Nation years, was on Social Security disability be- rock, we could not stop that rock, but was unready for war. In fact, we were cause of heart problems and could no longer we could respond with an over- moving into the aerospace age. Al- work. He died when I was 61. I received So- whelming fusillade of rocks ourselves, though we lagged with our industrial cial Security income plus my SBP. With that is, nuclear weapons, and both na- base, we were able to catch up. It was those two incomes I was doing fine, paying tions would be totally destroyed by because of American aerospace domi- my monthly bills and having enough left for groceries. But when I turned 62, I was noti- these nuclear explosions. nance in World War II that we were fied that my SBP was reduced from $476 to This doctrine was called the doctrine able to prevail in that war. Ever since $302. What a shock. That was my grocery of MAD, mutually assured destruction. then, our country has dominated the money that they took away from me. Because of that, we adhered to our skies with respect to aircraft. Another letter said: treaty not to ever build a defense By the same token, Mr. Speaker, we against an incoming nuclear weapon. While my husband was alive, we worked live today in an age of missiles. In fact, out a budget for me in case he died. I felt se- Now, President Reagan did not like it was in the Desert Storm operation cure in the knowledge that he had provided that. He said the best way to defend that we saw for the first time Ameri- for me by joining the Survivors Benefit Plan. this country is to truly defend it, not cans killed by ballistic missiles; slow I could not believe it when I learned I was simply to wreak vengeance on someone missiles, but ballistic missiles. not going to get the amount we were prom- who throws that first nuclear weapon. For that reason, President Bush, in ised. I cannot believe that our government The way to be most humane and not to conclusion, Mr. Speaker, is absolutely would do this to the widow of a veteran. destroy cities and not to kill millions right on to launch this program that Mr. Speaker, it is past time to of people is to have a shield, to have a will defend uniformed American serv- change this misleading and unfair law. shield or a protection against that in- icemen and our citizens against incom- We must provide some equity to the coming ballistic missile. ing ballistic missiles. The American survivor spouses of our military retir- That was some 17 years ago, Mr. people should get behind it. ees. My bill would fix this problem by Speaker. Today President Bush re- f eliminating the callous and absurd re- newed that idea and that philosophy, duction of benefits and give what is ex- and said it will soon be manifested in THE MILITARY SURVIVORS pected and what is deserved, 55 percent an American missile defense program. EQUITY ACT of the military retired pay. To put it Now, even for those people who The SPEAKER pro tempore. Under a simply: no offset; a simple solution to thought that MAD, mutually assured previous order of the House, the gen- a difficult problem, but an equitable destruction, was a good treaty to have tleman from California (Mr. FILNER) is solution to a mean-spirited practice. between the United States and Russia, recognized for 5 minutes. Mr. Speaker, I hope my colleagues then the Soviet Union, it does not Mr. FILNER. Mr. Speaker, I would will join me in cosponsoring H.R. 1232, apply anymore. The reason it does not bring my colleagues down to Earth the Military Survivors Equity Act. Let apply anymore is because there are after the last speaker. us do this for our veterans and for their now lots of countries that never signed I rise today to speak about a bill to widows, their surviving spouses. We are any treaty with the United States who restore equity, equity, Mr. Speaker, to causing them great pain and anguish. now are developing missiles with the the survivors of our Nation’s veterans. capability of carrying nuclear, biologi- I call that bill the Military Survivors f cal, or chemical warheads into the Equity Act, H.R. 1232. United States. It is hard to believe that we continue FURTHER MESSAGE FROM THE For example, China never signed that to condone a system that penalizes the PRESIDENT treaty. They are building ballistic mis- aging survivors, mostly widows, of the A further message in writing from siles right now and aiming them at veterans of our Nation. But that is ex- the President of the United States was American cities and telling us, it is actly what the Military Survivors Ben- communicated to the House by Ms. your obligation not to defend your- efit Plan does. When a member of the Wanda Evans, one of his secretaries.

VerDate 02-MAY-2001 02:41 May 03, 2001 Jkt 089060 PO 00000 Frm 00098 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.122 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1833 PERIODIC REPORT ON NATIONAL crease the revenues, or we decrease the the business world. He had the advan- EMERGENCY WITH RESPECT TO benefits and the amount of money tage of having the appropriate care SUDAN—MESSAGE FROM THE going out. when he was a baby. And yet if we look at what has happened, my colleagues, PRESIDENT OF THE UNITED b 1645 STATES around the country, with the advent of And what some of us have been sug- The SPEAKER pro tempore laid be- managed care, we will see cases like gesting for several years is that we in- fore the House the following message this. crease revenue by getting a better real from the President of the United Before coming to Congress, I was a return on some of that money rather States; which was read and, together plastic and reconstructive surgeon. I than simply lending it to the Govern- with the accompanying papers, without took care of lots of babies that were objection, referred to the Committee ment. born with birth defects like this, a cleft on International Relations and ordered We have heard a lot of bragging that lip and a cleft palate. And in the last to be printed: we are paying down the public debt. several years, at least 50 percent of the To the Congress of the United States: Actually, we are borrowing the money surgeons who take care of children As required by section 401(c) of the from Social Security and writing an with birth defects like this have had National Emergencies Act, 50 U.S.C. IOU and then using that money to pay operations on their patients denied be- 1641(c), and section 204(c) of the Inter- down the so-called debt held by the cause they were not ‘‘medically nec- national Emergency Economic Powers public, or I call it the Wall Street debt. essary.’’ Not medically necessary. Act (IEEPA), 50 U.S.C. 1703(c), I trans- I urge the President to urge this Let me give a few other examples. In mit herewith a 6-month periodic report commission to move quickly. I urge 1996, Musette Batas was 6 months preg- on the national emergency with re- the commission to look at the legisla- nant when she had an inflammatory spect to Sudan that was declared in Ex- tion that many of us have been intro- bowel disease flare-up. Her insurance ecutive Order 13067 of November 3, 1997. ducing over the last 6 or 7 years to company authored a 1-day hospitaliza- tion. Her primary care physician asked GEORGE W. BUSH. make sure we keep Social Security sol- THE WHITE HOUSE, May 2, 2001. vent. for a longer stay, but her HMO concur- rent review nurse looked at Mrs. Batas’ f I think it is very important for the American people to know, Mr. Speaker, chart and said it was not ‘‘medically SOCIAL SECURITY that we should not accept any rec- necessary.’’ The SPEAKER pro tempore. Under a ommendation from the White House Now, the nurse never consulted with previous order of the House, the gen- that does not keep Social Security sol- the physician; she never saw the pa- tleman from Michigan (Mr. SMITH) is vent for at least the next 75 years. It is tient. Musette Batas went to the emer- recognized for 5 minutes. too easy to say let us put Social Secu- gency department 10 days later with Mr. SMITH of Michigan. Mr. Speak- rity first and then do nothing except fever and pain. A physician sought ap- er, I am going to talk about Social Se- add rhetoric and maybe pay down the proval for exploratory surgery. Three curity, a little bit about the problems, debt a little bit. But what we have days later, the doctor still had not a little bit about the commission that done with the so-called lockbox, with heard from the HMO and her intestine was appointed today by the President the so-called paying down the debt held burst. Four days after emergency sur- gery, in which part of her colon was re- of the United States, George Bush, to by the public, does not help solve the moved, the HMO nurse told her physi- try to come to a conclusion that is long-term Social Security problem. cian she had to be discharged. The phy- going to keep Social Security solvent. So I appreciate this time, Mr. Speak- sician refused. The nurse reviewed her We have been looking and acknowl- er; and I urge the commission to act as chart, she consulted Millimen and Rob- edging for almost 6 years now the seri- quickly as possible. I do see members ertson’s care guidelines, and based on ous problem of Social Security sol- of that commission that are going to that, the nurse said the HMO would not vency. It has been a problem because be on the bottom end of the learning when we developed Social Security in pay for any more time in the hospital curve. That means that if they are 1934, it was set up as a pay-as-you go because it was not ‘‘medically nec- going to understand the complexity program, where current workers pay in essary.’’ So she left the hospital be- and seriousness of the Social Security their Social Security tax and it is im- cause she could not afford to pay for it problem, that they need to do a lot of mediately sent out to current retirees. herself. What we have been experiencing over burning of the midnight oil. How about down in Texas in the last the last 65 years is a dwindling number f few years? There is a gentleman named in the birth rate and an increasing life- PATIENT PROTECTION AND PRE- Plocica. Mr. Plocica. He was suicidal. span of seniors. So, for example, in SCRIPTION DRUG COVERAGE He was in the hospital. His psychiatrist 1942, we had almost 40 people working LEGISLATION said he needed to stay in the hospital. paying in their Social Security tax for His HMO said no, we do not think he The SPEAKER pro tempore (Mr. every one retiree. Today, yes, Mr. does. It is not medically necessary. So GRAVES). Under the Speaker’s an- Speaker, there are three people work- we are not going to pay for any more nounced policy of January 3, 2001, the ing paying a much higher Social Secu- hospitalization. And when an HMO gentleman from Iowa (Mr. GANSKE) is rity tax to accommodate every one re- does not pay for a hospitalization, tiree. recognized for 60 minutes as the des- most people cannot stay in the hospital The guess is that within 20 years, it ignee of the majority leader. because they cannot afford the care. is going to be two workers paying their Mr. GANSKE. Mr. Speaker, just a They could not afford to pay for it tax for one retiree, so the challenge is heads up, I will probably only take out of pocket, so Mr. Plocica went increasing the return on that money about half of this time, so that if any home. His family reluctantly took him that is being paid in by employees and Members on the other side are going to home, and that night he drank half a employers in the United States. give a Special Order, they should real- gallon of antifreeze and he committed Right now, the average employee is ize that I will not take the full hour. suicide. going to get a 1.7 percent return on the Mr. Speaker, I want to talk a little How about Nancy T. Vogel? She had money they have paid in to Social Se- bit about two health care issues that a total abdominal hysterectomy to re- curity in Social Security taxes. Today are very important: patient protection move two tumors that weighed more the President appointed a commission. legislation and prescription drug cov- than 31⁄2 pounds. Her doctor said she It was my recommendation that we do erage. Just last night, Mr. Speaker, I needed at least 96 hours in the hospital not use a commission to further delay was at an event here in Washington, to recover. As a physician, I would say the implementation of a solution for and a gentleman who is a CEO of one of that is the minimum. An HMO nurse this, because the fact is that the longer the world’s largest corporations re- looked at Millimen and Robertson’s we put off this decision, the more dras- ceived an award. This gentleman had guidelines, guidelines that are used by tic the changes are going to have to be. had, when he was a child, a bilateral HMOs, and determined that only 48 There are only two ways to solve the cleft lip repaired, and he spoke beau- hours was medically necessary. So she Social Security dilemma: We either in- tifully. He has risen to the pinnacle of left after 48 hours.

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00099 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.124 pfrm02 PsN: H02PT1 H1834 CONGRESSIONAL RECORD — HOUSE May 2, 2001 I would argue that those definitions cost of care needed, i.e., his amputa- has happened also, as has been outlined of ‘‘medical necessity’’ are a medical tions. Is that justice? in cover stories in Time magazine. judgment under those HMO contracts. I We had testimony 4 years ago in It is time for this Congress to do think a licensed physician should be front of my committee from an HMO something on the Patients’ Bill of the one making those medical judg- medical reviewer who testified that she Rights, something real, not an HMO ments, not the HMO. And certainly not had made decisions that had cost peo- protection bill, but something that based on guidelines like Millimen and ple their lives. She had denied them helps people. Robertson’s. In fact, Millimen and Rob- proper care, and she could hide behind I urge this Congress to move forward ertson’s itself admits that its guide- what she called the smart bomb of expeditiously. I urge the Senate to lines are not based on prevailing med- HMO cost containment: denials on bring this bill up as soon as possible, ical opinion but are ‘‘goals’’ that pre- medical necessity. and I think that we will do that on the dict what should happen in the best In fact, under contracts that HMOs House side also. I ask my colleagues cases with patients free of any com- can write, they can define medical ne- not to listen to the HMOs. plications. cessity in any way they want to under Whose side are you going to be on? How about this case? Another med- the Federal law ERISA. They can write Are you going to be on the side of your ical judgment case by an HMO. A little a contract with an employer that says constituents and your patients, or are baby, James, who was about 6 months we define medical necessity as the you going to be on the side of the old when this picture was taken. One cheapest, least expensive care. A per- HMOs? Can you justify a Federal law night he has a temperature of about son who does not have enough blood that gives legal immunity to health 104, 105. He is really sick. It is 2 or 3 in supply going to his legs, where a physi- plans that are making life-and-death the morning. His mother phones the 1– cian could save the legs by vascular re- decisions millions of times a day, when 800–HMO number, explains that her construction, that HMO could justify just a year ago we held hearings in this baby is really sick and needs to go to an amputation. Because, after all, House on Bridgestone and Firestone, on tires that blew up. Is there any the emergency room, and from some under their own definition, that is the other industry in this country that has disembodied voice thousands of miles cheapest, least expensive care. legal immunity other than foreign dip- away she gets instructions: I want you We have to do something to fix this. lomats? to go to this particular hospital, and This is a travesty. We have been having It was a perversion of the law 25 that is the only hospital I will author- this debate on patient protection for 5 years ago, that was passed to be a con- ize you to go to, because that is the years now, and yet the forces of the sumer protection law for pensions, that only one we have a contract with. And HMO industry have spent hundreds of became an avenue for HMOs to avoid the mother says, well, where is it? And millions of dollars to try to defeat us. their responsibility, a way for them to the reviewer says, well, I do not know, Eighty-five percent of the people in cut corners regardless of whether it find a map. this country want to have Congress fix hurt people. This Congress has a moral So they start looking for this hos- that Federal law. They think Congress obligation to come back and fix that pital. It is 70 miles away, clear on the should do something to prevent a trav- Federal law. We should do it soon. other side of Atlanta, Georgia. But esty like this from happening. Now let me talk a little bit about an- mom and dad, they are not medical b 1700 other health care issue that is really professionals, they do not know ex- Our bill would do that. The Ganske- important. That is the issue of the high actly how sick little James is. They do cost of prescription drugs. Dingell bill in the House, the McCain- know that if they go to an unauthor- Mr. Speaker, this is a photo of Bill Edwards bill in the Senate, we set up a ized hospital they will be stuck with Newton. He is 74 years old from Al- the bill, and they are not rich people. system to prevent this type of thing toona, Iowa, my district. His savings So they bundle Jimmy up, they start from happening, Mr. Plocica from vanished when his late wife, Juanita, on their trip, and halfway through the being sent home prematurely from the whose picture he is holding, needed trip they pass three emergency rooms hospital and then committing suicide. prescription drugs which cost as much that they could have stopped at but for We set up a review process because if as $600 per month. He said, ‘‘She had to which they did not have an authoriza- there is a disparity based on standard have them. There was no choice. It is a tion. They were not told by the re- of care, ultimately you can go to an very serious situation and it is not get- viewer that their baby was really sick, independent review panel. Even on an ting any better because drugs keep take him to the nearest emergency expedited basis, you can get an inde- going up and up.’’ room. Oh no, we will only authorize pendent panel to make a medical judg- Mr. Speaker, I have constituents that care at this very distant hospital. And ment, a panel that does not have a con- write me letters, some of them go down before they get to the hospital, little flict of interest, that is not paid for by to Texas for vacation and they go James has a cardiac arrest. the HMO, so that you would know that across the border to Mexico and they So imagine this. You are dad, driving they would be independent and be giv- find that their prescription drug costs like crazy, and mom trying to keep ing you the truthful answer. are half of what they are in the United this little baby alive, after the HMO We believe our bill would prevent the States. Look at the difference in drug makes a medical judgment over a tele- types of lawsuits that resulted from costs between the United States and phone never having seen the baby. the care that Nancy Vogel received. Europe. Well, they come screeching into the But more importantly, we think that if Premarin: U.S. price, $14.98; Euro- emergency room. Mom leaps out of the our bill were law, we could help pre- pean price, $4.25. Coumadin: 25 pills, 10 car screaming, ‘‘Save my baby. Save vent a little boy from losing both milligrams, $30 in the United States, my baby.’’ Nurses come running out, hands and both feet, Mr. Plocica from $2.85 in Europe. and they manage to get an IV started. committing suicide, Nancy Vogel from How about Claritin, for 20 10-milli- They manage to get the baby’s heart being sent home prematurely after gram pills, it costs $44 in the United going, and they save his life. The won- having 3.5 pounds of tumor removed States and it costs $8.75 in Europe. ders of modern medicine. But they from her belly. We need to do something about this. were not able to save all of Jimmy, be- I ask my colleagues to talk to their We need to do something about the cause Jimmy ended up with gangrene constituents back home about this high cost of prescription drugs, not in both hands and both feet. Because of issue. I guarantee that a very large just for senior citizens, but for every- that HMO’s medical judgment, both of percentage of them will not have been one. Because, Mr. Speaker, the main his hands and both of his feet had to be treated fairly by their employer’s reason why health insurance premiums amputated. health plan, or they know somebody at have gone up so fast in the last couple My colleagues will be happy to know work who has not been treated fairly, of years has been to cover the 20–25 per- that under a Federal law that was or they have a family member who has cent annual increase in the cost of pre- passed by Congress 25 years ago, that not been treated fairly. Let us pray to scription drugs. HMO is liable for nothing for that neg- God that they have not had somebody Now, last year, we had a Republican ligent medical decision other than the who has lost their life, because that bill and a Democratic bill. Both of

VerDate 02-MAY-2001 02:41 May 03, 2001 Jkt 089060 PO 00000 Frm 00100 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.127 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1835 them were voluntary. Both of them move it up to 175 percent, it would be 2012. That age wave, my demographic were set up essentially so that a person $600 billion. group, the baby boomers, start to re- had to have about $1,000 out-of-pocket Some of those costs are already being tire. We will double the number of expense before they would get a benefit covered by Medicaid, so probably $120 Medicare senior citizens in about 20 for the increased premiums that they billion could be deducted from this, years, but we start that in the year would pay. And both of those bills’ pre- which means that if we are talking 2012. If my colleagues think that this miums were premised on the fact that about covering low-income seniors, let prescription drug program is expensive 85 percent of seniors would sign up for us say from 135 percent of poverty to now, wait till 2012 when the baby the program. 175 percent of poverty, we are probably boomers start to retire and we will not Mr. Speaker, look at this data from looking at needing at least $300 billion just see $1.4 or $1.5 trillion, we will see 1999: 14 percent of senior citizens had just to do that. multiple trillions of dollars. And then no drug expenditures a couple of years Now, Mr. Speaker, I want my col- we are going to have to ask ourselves, ago; 36 percent had less than $500; an- leagues to listen to this. Under the cur- how do we find those funds? How do we other 19 percent had less than $1,000. rent budget resolution which will prob- keep the other aspects of Medicare That meant that 50 percent of the ably come to the House in the next few such as hospital care going? Medicare population had drug expenses days, we have only budgeted $300 bil- We cannot just think, Mr. Speaker, that were less than what the cost of lion for a prescription drug benefit. about a 10-year window. We have to their premiums would have been under That means that we would essentially take into account that in 2012, 1 year either the Republican or the Demo- cover low-income seniors and no one past this 10-year window, the baby cratic plan last year. Under a vol- else. But I would bet that 6 months boomers start to retire; and we are untary plan, that becomes very ques- from now those estimates will be read- going to see astronomical increases in tionable whether people will sign up for justed higher than they are now. That Medicare costs. I beg my colleagues, a benefit if it is going to cost them is just typically the way that it has when we are looking at doing a benefit more than the benefit is worth. been when we have tried to estimate on prescription drugs, and next year Last year, when I talked about this prescription drug costs. when the elections start to roll closer on the floor, we had some predictions That is why I have a bill before Con- and the pressures get heavy to get in terms of what those costs would be. gress which I encourage my colleagues something done on prescription drugs, I remember back in 1988, I was not in to sign onto that I think is realistic. It which I think we ought to, and I think Congress then, but I remember when addresses the difference in cost be- we ought to help senior citizens who Congress passed a catastrophic bill tween prescription drugs made in the need it the most, let us look at a way with a prescription drug benefit, passed U.S., but sold overseas, and helps fix to do this program that helps those it one year and repealed it the next be- the reimportation loopholes. It does that need it the most and then see cause the senior citizens did not like that. where we are going to be past that 10- the premium increases. I remember But for Medicare, it will help the year window. Maybe Medicare reform within 6 months the Congressional low-income senior citizen who is not so will help on that. But I think we ought Budget Office had doubled their esti- poor that he or she is already on Med- to see the proof in the pudding before mates for what the cost would be. icaid, getting a drug benefit from Med- we start committing ourselves, not I think it is informative to look at icaid, but allow senior citizens up to just to $1.5 trillion but to multiple, what the estimates today are for what 135 percent of poverty and then phased multiple trillions of dollars on a pre- last year’s House Republican and the out to 175 percent of poverty to utilize scription drug benefit. Democratic bills were. Last year, the the State Medicaid drug programs and On that cheery news, Mr. Speaker, I House Republicans estimated that the pay for it from the Federal side. We are remain eternally optimistic that we bill would cost $150 billion. The new es- not requiring a match from the State are going to muddle our way through, timate in about a 6-month period of legislatures or the State governors be- that we will pass a real patients’ bill of time is now, and if that bill were law, cause a lot of them are finding that rights through a lot of hard work and it would cost $320 billion. So in a 6- they are under budgetary constraints. contention, and I am sincerely hopeful month period, the estimate for the cost No cost share; we provide for this on that we will be able to look at a pre- of the Republican bill, that passed this the Federal side, but we utilize the scription drug benefit and do the right House, more than doubled. State programs that are already in thing for this. How about the Democratic bill from place. We do not have to duplicate the f last year, the Daschle bill? It was esti- wheel. Those State programs have al- PRESCRIPTION DRUG COVERAGE mated last year that it would cost $300 ready negotiated discounts with the FOR SENIORS billion. This year the estimate, if that pharmaceuticals, and that benefit, I were law, it would cost $550–$600 bil- think, would fit within what we are The SPEAKER pro tempore (Mrs. lion. talking about for a budget. And it is an CAPITO). Under the Speaker’s an- Now, here are some figures that are important first step on this. nounced policy of January 3, 2001, the mind-boggling. The CBO, the Congres- Mr. Speaker, it would help the senior gentleman from Texas (Mr. TURNER) is sional Budget Office, estimate for how citizen, the elderly widow who today is recognized for 60 minutes as the des- much prescription drugs would cost trying to pay her energy bills, her food, ignee of the minority leader. senior citizens for the years 2002 to 2011 her housing, and her prescription drugs Mr. TURNER. Madam Speaker, I is $1.456 trillion. Now, last year, we off of a Social Security check. She would like to talk about a subject this thought that the Federal Government needs that help; and we can do that. evening that has been ignored, I think, would cover about, roughly speaking, But I want to tell my colleagues for the entire Congress that we have 35 percent of that cost. That means what the really scary statistic is. That been in since the first of the year, an that the estimate from last year, which is that these 10-year projections for issue that many of us feel very strong- was $150 billion, would be today $510 what the costs are going to be for pre- ly about, an issue that many of us cam- billion. scription drug coverage, whether we paigned on on both sides of the aisle, Last year, we estimated the cost at are talking at the 35 percent level or a an issue that I think must be dealt providing full coverage for low-income 50 percent level, they all go up, and with if we are going to have a budget seniors to be something in the range of this is really important, I hope my col- that is honest and realistic, and that is $80 billion. Well, if we look at the new leagues are listening to this, these esti- dealing honestly with the problem of figures, if we are talking about cov- mates are all from 2002 to 2011. providing prescription drug coverage ering prescription drugs for people who for our senior citizens. are below the poverty line, for 100 per- b 1715 Tomorrow, this House will vote on a cent of people below the poverty line, I want to ask my colleagues some- budget that emerges from a conference we are now looking at an estimate of thing. What happens in the year 2012? I committee. The details of that budget $255 billion. If we move it up to 135 per- will tell my colleagues what happens. at this hour, at this late hour, are still cent, it would be $425 billion. If we The baby boomers start to retire in very murky, but one thing is clear: a

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00101 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.130 pfrm02 PsN: H02PT1 H1836 CONGRESSIONAL RECORD — HOUSE May 2, 2001 promise that we all made to our senior thing else. The Blue Dogs have advo- tion drug benefit under Medicare that citizens this past fall, a promise of af- cated giving a substantial portion of will allow any senior citizen to walk in fordable prescription drugs, is being that surplus toward paying down our their local pharmacy and get the pre- shoe-horned into this budget as an national debt, and we believe very scriptions that their doctor prescribes afterthought. There are many of us strongly in that. But in addition to for their ailments and to do it at a rea- who believe very strongly that pre- those priorities, we must have a pre- sonable cost under a reasonable plan. scription drug coverage under Medicare scription drug plan that will work that Now, it is not a plan that is without for our senior citizens should be our makes common sense for our senior some cost to the senior citizen. It has highest priority. citizens. been estimated that it may cost $25 to I am pleased to be joined today in Adding a prescription drug benefit $30 a month in a premium for a senior this special order hour by several mem- under Medicare would require only citizen to have this coverage because bers of the Blue Dog Democrat Coali- about 6 percent of this $5.6 trillion 10- the government, frankly, cannot afford tion. The Blue Dog Democrats have year surplus that everybody hopes will to pay for the entire plan. But we be- worked hard to advocate the inclusion show up around here over the next dec- lieve that a plan that would require $25 of a meaningful and an honest prescrip- ade. It is small enough to fit within a or $30 a month from our seniors, that tion drug benefit for our seniors under responsible budget. It deserves more would take care of the first $4 or $5,000 Medicare. We all understand the sky- than being listed as a possibility under of their prescription coverage cost, at rocketing prices that we are paying at the 10-year budget that the Congress least pay half of that and then over the our pharmacies. We understand that as will pass tomorrow. $4 or $5,000 pay all of it, is a plan that a very stark reality. And instead when It just makes plain common sense. makes sense for our seniors. this House passed its budget, it in- We must have a budget that balances We can afford to do that if we are cluded prescription drugs as a mere our priorities, and our budget that we willing to commit $300 billion of this contingency item in a contingency will vote on tomorrow does not do surplus over the next 10 years to doing fund that is far overloaded with items that. It neglects a promise that many that. They had a vote in the Senate that need to be funded. of us made to our constituents, a prom- just a few days ago when they were de- So we are here this evening to urge ise that we would try to bring the high bating this budget. An amendment was this Congress and this President to in- price of prescription drugs down and offered that would provide $300 billion clude a real prescription drug benefit that we would provide a benefit for all for a real prescription drug plan for under Medicare in the budget this Con- seniors under Medicare. seniors under Medicare. When the votes gress will pass tomorrow. When we Medicare is the roof that protects our were counted, it was 50 for and 50 have so many constituents out here senior citizens. It is 30 years old but it against with the Vice President casting who are having to choose every day be- has dangerous leaks. Thirty-five years the deciding no vote. Later an amend- tween filling their prescription and ago when Medicare was created, it did ment was offered that said that we will paying their rent or buying their gro- not include any coverage for prescrip- have a prescription drug plan and set ceries, we cannot afford to ignore this tion drugs because prescription drugs aside $300 billion of the contingency problem. I have received many letters were not a big part of our health care fund in this budget if we reform Medi- in the last few weeks from senior citi- costs. Since that time, we have had care first, and that was adopted by one zens who said, I heard a whole lot last amazing advances, amazing discov- vote, the Vice President again casting Congress about solving this problem of eries, new prescription drugs that cure the tie vote. prescription drugs. Some of them even our ills. Those of us who know the reality of write they saw television ads run by We think it is very important to be this problem for our seniors say that is candidates for Congress, some of whom sure that all of those remedies are not good enough, that surely in a coun- are reelected and are here in this Con- available to all of the American people. try as generous and as compassionate gress talking about taking care of our The least we can do with this surplus as we like to claim we are, surely we seniors. They ask, ‘‘Why haven’t y’all that we are so proud of is to ensure can provide a basic, meaningful pre- done anything about it?’’ that our senior citizens have a pre- scription drug benefit for our seniors The answer is very simple. This Con- scription drug benefit under Medicare. under Medicare. gress has not placed a proper priority Many doctors and nurses from hos- Now, we are not forcing this plan on on providing prescription drug cov- pitals in my district have told me sto- anybody. It is an option under Medi- erage for our seniors under Medicare. ries about the massive hospital bills care, just as your current part B Medi- The budget that we will vote on tomor- that could have been prevented if the care is an option for your doctor cov- row is created entirely around a tax patient had merely taken the nec- erage. So if you have got a plan that cut that leaves very little room for essary prescription drugs. There is no you like and you do not want to anything else. The Blue Dogs presented question that providing prescription change, you do not need the coverage, a budget to this House. We lost by a drug coverage is the right thing to do do not sign up. But this plan should be handful of votes. Our budget included a for our citizens. The only question is available for the hundreds of thousands meaningful prescription drug benefit whether this Congress is going to stand of seniors all across this country who under Medicare. up and face the problem or continue to are struggling today to pay for their Now, we all favor significant tax re- put it aside and ignore it and try to prescription drugs. lief. I do not find anybody in this Con- deal with it at a later date. We are fortunate to have on the floor gress that does not understand that tax There are some in this Congress who with us tonight a Member of Congress, relief is an important priority for all have hidden behind the issue of Medi- a fellow Blue Dog, the gentleman from the American people. But we have to care reform. They have said we are Arkansas (Mr. ROSS), who is a phar- balance that interest and that priority going to provide a prescription drug macist, who understands this problem with the other priorities of govern- benefit in a Medicare reform package. all too well. It gives me a great deal of ment. One of those should be providing Nobody, to my knowledge, knows pleasure to yield to the gentleman prescription drug coverage for our sen- clearly how this Medicare reform pack- from Arkansas to share his perspective iors. Everybody is quick to talk about age is going to be put together nor on this very, very important issue. this $5.6 trillion surplus, but when we what it is going to look like. We can- Mr. ROSS. Madam Speaker, I might break it all down, we understand that not wait for Medicare reform to deal clarify one thing. I am not a phar- much of that surplus has already been with the problem of prescription drug macist. I never was smart enough to be committed. coverage for our seniors. one. My wife is one. Together we do This Congress uniformly agrees that All of us who believe in honoring our own a family pharmacy. I come from a Medicare and Social Security trust commitment to our senior citizens to small town in rural south Arkansas. It funds should not be spent. That means providing the assistance that they need is a town called Prescott, a town of almost half of that surplus cannot be for a meaningful prescription drug plan about 3,500 people. It is a town I love spent by this Congress in either tax want to do it now, not tomorrow. We very much. For those Members who cuts, new spending programs, or any- have advocated a universal prescrip- were raised in small towns or perhaps

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00102 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.132 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1837 still live in small towns like I do, they pital. This is very important to our Mr. TURNER. Mr. Speaker, I thank know what I am talking about when I seniors. This is an issue that I ran for my colleague, the gentleman from Ar- say that in small towns, there are al- the Congress on, an issue that I will kansas (Mr. ROSS), for his remarks; and ways one or two gathering places. not stop fighting for until we finally do I beg his forgiveness for mentioning that he was a pharmacist. I did recall b 1730 truly modernize Medicare to include a prescription drug benefit that is vol- that his wife is a pharmacist, but she My wife and I are very fortunate that untary but guaranteed just like going makes the gentleman work in the phar- in our hometown of Prescott, the fam- to the doctor, just like going to the macy whenever he is at home. We are ily pharmacy that we own is such a hospital. glad the gentleman has the perspective gathering place. It is a place where One of the problems we have in this that he does to share with us because it people come to share recent photo- country, I think, is created by the big is only by being there. I had the oppor- graphs of their children and grand- drug manufacturers. I have bottles of tunity in my district to be in several children, to celebrate the good times medicine on the shelf of my pharmacy pharmacies to talk about this issue, together and, yes, to be there for one that cost more than I paid for a new and just as I was there talking about another during the difficult times. car in 1979, and yet that same bottle is the issue people would come in trying I must say, I see way too many dif- being sold in Canada and Mexico for to fill their prescriptions. One lady ficult times. Prior to being elected to ten cents on the dollar. We are talking came to the gathering that was just in the United States Congress last year, I about drugs that are being invented in a local grocery store, not too far from worked in that pharmacy. This is an America, oftentimes with government the pharmacy counter, and she said I issue I do not just talk about. I worked subsidized research. They are being am glad to hear what you are saying. I with it. I saw seniors that were lit- made in America, and they are being did not know you were going to be erally forced to choose between buying shipped from America and sold for a here, but I was just in here yesterday their medicine, paying their natural fraction of the cost to these other and left my prescription; and I was just gas bill and buying their groceries. countries. back at the window to pick it up, and Living in a small town, I would learn So what does that mean? That means when the pharmacist told me how a week later where a senior would end all of us in America are subsidizing the much it was, I told him he would have up in the hospital running up a $10,000 cost of health care for these other to just keep it. or $20,000 Medicare bill or where a dia- countries. I think it is time we stood Those are the kinds of problems that betic would lose a leg or spend in ex- up to the big drug manufacturers and seniors are having today. They are cess of half a million dollars of Medi- said enough is enough. It is time we de- very real. They are very serious and care money receiving kidney dialysis manded the kind of rebates to help pay ones we must tend to in this Congress. Mr. Speaker, I am pleased now to before eventually dying, simply be- for a Medicare drug program from yield to a fellow colleague, the gen- cause they could not afford their medi- them that they are now dishing out tleman from Texas (Mr. SANDLIN), an- cine or could not afford to take it prop- left and right to the big HMOs and to erly. other Blue Dog who has worked hard to our States’ Medicaid programs. Now I try to provide a meaningful prescrip- I do not just talk about this. I know the debate so far in Congress has worked with it. I saw it. I can put tion drug benefit for our seniors. been about the budget and tax cuts, Mr. SANDLIN. Mr. Speaker, we need names to the faces. and I hope we can now move from that to ask ourselves, who built this coun- This is America, and I believe we can very important subject of the budget try? Who built this country? It was do better than that by our seniors. and tax cuts into spending some qual- built by people that got up every morn- That is why I will continue to fight to ity time making something happen ing and made a sandwich and threw it modernize Medicare to include a vol- that will truly modernize Medicare to in the pail, went to work, built a prod- untary, but guaranteed, prescription include medicine for every single sen- uct, sent their kids to school, and lived drug benefit. ior citizen in America who needs it and the American dream. It was built by Now what do I mean by that? When I wants it. men and women, our veterans, who say voluntary, that means if one has a Now we are hearing a lot of talk traveled the world in the cause of free- plan, if they are fortunate enough to be about this projected surplus, some $5 dom, who took the red, white and blue, one of the few seniors on Medicare in trillion. Well, it is a projection over 10 the symbol of freedom, brilliant with America who have medicine coverage years, and it is being projected by the color, signifying the American way of from a previous employer, and they same bureaucrats that missed it by the life. It is now time for us to honor our like it, they ought to be able to keep tune of hundreds of billions of dollars senior citizens. It is time to honor our it. So it should be voluntary. last year. Seventy-five percent of that veterans. It is time to keep our prom- Just recently, during the spring dis- surplus does not even get here until ise and make sure that prescription trict work period, I had a townhall 2006 through 2011, based on their projec- drugs are available, accessible and af- meeting in conjunction with the Na- tions, if they are right. Nearly half fordable to the American public and tional Committee to Preserve Social that surplus is Social Security and particularly to our senior citizens. Security and Medicare in one of the Medicare Trust Fund money. The cost of prescription drugs con- more affluent counties in my 26-county When we talk about the highway tinues to escalate. I am pleased, as are district, Garland County. More than trust fund we do not dare talk about many of my colleagues, to see that the 100 seniors showed up for that townhall counting it in the surplus. I am not ad- White House has recognized that this is meeting on Social Security and Medi- vocating that we do. The highway trust a very, very serious problem in the care, and I asked those who had medi- fund money ought to go to improve our United States and we must do some- cine coverage of any kind to raise their roads. What I am advocating is that we thing about it. However, we need to hand. Less than 10 hands in the room stop talking about Medicare and Social move toward a real prescription drug went up. Then when I asked them to Security when we talk about this Na- benefit. keep their hand up if they were con- tion’s surplus. That is why the first bill Unspecified benefits that have been fident they would be able to keep that I filed as a Member of the United sent over by the White House are not coverage for the rest of their life, near- States Congress was a bill to tell the adequate, and I think we need to tell ly every single hand in the room went politicians in Washington to keep their the administration that placing the down. hands off the Social Security Trust Medicare surplus in jeopardy to pay for I come from a very rural and poor Fund, to keep their hands off the Medi- these benefits is a complete nonstarter. district. The average household income care Trust Fund. In this time of alleged surpluses, cer- in my district is only $19,000 a year. It I urge my colleagues to work to- tainly we can address issues that are is where very few seniors have any pre- gether. Let us put progress over par- important to our senior citizens, some scription drug coverage. So it should be tisanship, and let us give our seniors a of our most vulnerable citizens in this voluntary, but it should be guaranteed. Medicare prescription drug benefit that country. If indeed we have a surplus, Just like under Medicare one can go to means something, one that they can then certainly we can share that sur- the doctor and they can go to the hos- count on. plus with those that built this country.

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00103 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.133 pfrm02 PsN: H02PT1 H1838 CONGRESSIONAL RECORD — HOUSE May 2, 2001 If, in fact, we will continue to develop senior citizens choosing between rent tive. Nothing else is adequate. Nothing some of the finest pharmaceuticals and food and pharmaceuticals and from the White House, nothing from that the world has ever seen, those clothing is just not right. We cannot the Congress, nothing else is adequate, pharmaceuticals have to be available put up with it in this country. We can- but to say, here is a need and here is to American citizens. not stand idly by while senior citizens how we are going to address it. Pharmaceutical companies have done take one prescription and not the We can do it. We have 435 people in an excellent job in developing drugs other, while they cut their pills in half, here working hard. We have 100 people that have increased our life span, have while we have spouses sharing medica- in the Senate. We have knowledge given us a better quality of life, have tion and say I will take one pill one about these issues. We know what the allowed us to be with our families for a day, you take a pill the next day, or issue is, we know what the need is. Let longer period of time. Most drugs have say we are going to have to live on us not play around. Let us not do been developed on the backs of the macaroni and cheese this week because smoke and mirrors. Let us not say we American taxpayers. Research and de- we have to get the medication. can do this tax cut or that tax cut or velopment dollars are deductible, as Some are having, for example, three give away this money or that money they should be. It has been shown that to four to five prescriptions; and they before we meet our commitments to as research and development dollars in- take two to three and not the others. the people that made this country crease, the development of beneficial That is just not right. We cannot do great. drugs increase and our public benefits. this in this country. We cannot ask our Mr. TURNER. Mr. Speaker, I thank There are also Federal grants for the senior citizens who sacrificed their my colleague from Texas. I have no development of drugs. That is as it lives, who built this country up, who doubt that what this group that is on should be, and we all share in the bene- gave up opportunities to fight in wars, the floor tonight is seeking is a defi- fits. Mr. Speaker, if these drugs are de- we cannot now ask them to suffer and nite commitment in the budget to a veloped with American taxpayer dol- allow citizens in other countries to prescription drug plan for seniors. lars, as they are, then these drugs have reap the benefits of the research in this Another fellow Member of the Blue to be available to American taxpayers, country. Dog Democrat Coalition here on the particularly to our senior citizens. Our seniors deserve better. As I said, floor with us tonight is our friend, the They should not be just available to we appreciate the fact that it has now gentleman from Mississippi (Mr. our friends in Canada. They should not been recognized as a serious problem SHOWS.) He also shares our deep com- be just available to our friends in Mex- by the administration, but let us keep mitment to dealing with this very seri- ico. They should not be available to ev- our promises that we have already ous problem for our seniors. I am hon- eryone except for the American tax- made. Let us keep Social Security in- ored to yield to the gentleman. payer who helps develop these drugs. violate and keep it off budget. Let us Mr. SHOWS. Mr. Speaker, it is a All of us, as we travel our districts make sure that we keep that Medicare pleasure to be here. We appreciate the across the country, hear stories from surplus where it is to answer the needs opportunity to speak. our constituents about the avail- of Medicare. While we have a surplus, Mr. Speaker, when I was cam- ability, accessibility, and affordability we can use the surplus money to ad- paigning in 1998, I had traveled around of prescription drugs. dress the needs of senior citizens for the State of Mississippi a good bit. I Gilmer, Texas, is a small city in my prescription drugs. We can do no less in was a highway commissioner and State district. I was approached recently by a this country. We have a moral and a senator, and the highway commis- man who had some heart medication. legal obligation to do that. sioners in Mississippi travel thousands He showed me the medication, made in As I have talked to my friends across of miles across the district. I really the United States, packaged in the the country from other districts, I have was not involved in national legisla- United States, FDA approved. That seen that this same problem exists dis- tion at that point in time, except for drug can be manufactured in the trict by district, State by State, all Federal funds. United States, package it, ship it to across this great country that we call But when I decided to run for Con- Mexico and sell it and make a profit, America. It is our obligation to answer gress, I really did not know what the both for the seller and for the pharma- that call and to do something now, to issues were going to be out there when ceutical company for 1⁄2 of what that do something immediately, to do some- we were approaching this level of poli- same drug cost in Gilmer, Texas. He thing definitive that covers all Ameri- tics. So, as I started out, I told the peo- could get a prescription for this heart cans, especially all senior Americans; ple in my campaign, I said, we are medication for 30 days for the same not targeted groups of Americans, not going to find out what this thing is all cost as he could get the medication for just Americans that are below the pov- about. 360 days in Mexico. Now something is erty level, not just those involved in Well, after about a week and a half just not right about that. some kind of catastrophic illness, but out there, going door-to-door, driving We also did a study in my district re- we should all share. around every community and talking cently that showed on average senior to all the people, I came back to my of- citizens paying 101 percent more for b 1745 fice and the campaign staff and I said, prescription drugs than the preferred If the stock market is going to con- you know what it is about; it is medi- purchaser, such as HMOs, the insur- tinue to have records, everyone should cine and health care. That is what this ance companies. Now that is not the share. If we are going to continue to campaign is going to be about. It was result only of bulk purchasing. That is say we have a budget surplus in this that way in 1998, it was that way in the result of a systematic and targeted country, everyone should share in 1999, and it was the same topic in the effort by the pharmaceutical compa- those efforts, everyone should share in last election we just won. nies to raise prices to those people who the benefits of that surplus. I think what happens is, when you need these drugs and those people who So, as we move forward, we are ask- think about your traveling across your can least afford the increase. So senior ing for a definitive program, not just a district and the scenario does not citizens in my district, and I would as- notation in a budget, not just an indi- change, we are still having people, sume it is the same across the country, cation that there is a problem, not just these grandmothers and grandfathers, are paying twice what the HMOs pay a statement that, well, we think that our parents, aunts and uncles, that for the same drugs, twice plus a little probably more than likely, under most cannot afford their medicine. It was an bit more; and that is just not fair. circumstances, it looks possible that issue then and it is an issue now, and it One estimate shows that more than we may be able to address prescription does not really make sense. one in eight of older Americans have drugs with some contingency in the We all hear the stories, and the gen- been forced to choose between buying budget. tleman that spoke before me talked food and buying medicine. That is out- We need to identify what we can do, about, our office will get calls, ‘‘We rageous. We have the greatest, most how much it is going to cost, put it in have to make the decision between powerful and richest country that the the budget. And we need to do it. We paying our electric bill or buying food world has ever seen; and to have our need to answer it. We need to be defini- or buying medicine.’’ Those stories, May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1839 they have got to get to you. They get our medicines from Canada, France, prescription drugs that are second to us, and I know it gets to my staff, Germany, Italy, Japan and the United class. They go down there and buy the and it really breaks your heart. Kingdom, and we are going to average same medicine by the same manufac- I will tell you the other people it gets our prices by what they are selling to turer and in the same bottle they can to. You go to the little pharmacists in them for. buy it in their local pharmacy. They little towns in rural Mississippi and Let us look at one thing. If they are just get it a whole lot cheaper. rural America, and you have to listen making a profit in the United States, So all these seniors in Houston de- to them. Some of them actually give and we know they are making a tre- cided to lease a bus, and they all got in them to some of them to help them mendous profit, what kind of profit are this Greyhound bus and went down to out. they making in these other countries Mexico and they filled their prescrip- Well, when we came to Washington and getting half-price for what we are tions. When they came back, they got we said we wanted to make a dif- paying for in the United States? So let to calculating how much they had ference, and we did want to make a dif- us take the average foreign price. If we saved, and they figured that they could ference, and we did cosponsor the bill do this, we could save those seniors 40 save $10,000 on a year’s worth of pre- last year that the gentleman from percent on their medicine. It is just scriptions just by making that trip to Maine (Mr. ALLEN) introduced and co- like cutting taxes. That is a real tax Mexico to fill their prescriptions. sponsored the bill he has now. cut. It may be survival for those folks I talked to a fellow not too many But you start comparing, why in the that really need it. Let us quit price months back who had a friend, who had world should American citizens or the discrimination on our seniors. a little single-engine plane, and he had American people pay the highest prices They say, if you do this—and this is some expensive heart medication, and in the world for their medicine? Cer- always the argument, they say, if you his friend flew him down into interior tainly some of these medicines that are do this, we will not have the money for Mexico to fill his heart medication. He being discovered by the pharma- research. Well, you know, last year saved literally thousands of dollars by ceutical companies are getting re- when I looked these numbers up, they making this trip, and he said if you go search dollars from the Federal Gov- spent $17 billion on research, and I am into the interior of Mexico, you can get ernment, a certain percentage of them, glad they do, but they spent $11 billion an even better deal than you can at heart medicines and some of the major on entertainment. They say, this is some of these pharmacies along the medicines we need. why we cannot do it. Well, if you have border. Yet the American citizens, for the re- got to raise prices, raise prices in Mex- So it is really time to do something about this problem and to be sure that warding of offering a free country, and ico or raise prices in Canada. these older folks that have a genera- We must also have a prescription our seniors get some prescription drug tion that helped make this country plan under Medicare, because this coverage under the Medicare program, free, all of a sudden are put at a real could be done separately. and to be sure that all Americans are big disadvantage, because they do not We must guarantee our parents, the treated fairly on their prescription live in Mexico or Canada or Europe people and grandparents who made this drug costs. Mr. SHOWS. Well, think about the where they pay half-price for it. country free, the availability of pre- communities that have been impacted But let us look at the price for what scription medicine. It is our duty and by NAFTA. They have lost jobs. The they are having to pay. In Mississippi, our obligation. I think not to let that community I live in, Jeff Davis Coun- we did the survey, we surveyed 10 drug- happen would be a crime and an injus- ty, unemployment is 11 percent. stores in my Congressional District, tice. Now, you look at the parts of this over the 15 counties, and I think every- Mr. TURNER. Mr. Speaker, I appre- country that are doing well, and finan- body has got these same figures. Even ciate the gentleman joining with us cially these people may be making it the people who do not support our bill this evening and advocating a mean- all right; but you take these poorer or our move to try to do something ingful, universal prescription drug ben- communities and rural districts that about prescription medicine have these efit under Medicare. I know that the have been devastated by loss of jobs, same figures. gentleman has studied this issue a long and how much revenue is lost out of But in Mississippi, you pay $110 for time and sees it firsthand in his Mis- these areas and how much harder it is Zocor; in Canada, you pay $46. Prilosec sissippi district. for these people to be able to buy this is $117, which is for ulcers, which I I do think it is hard for the American expensive medicine. take, in Mississippi; it is $55 in Canada. people to understand why they are pay- And there is just something wrong Procardia, a heart medicine, in Mis- ing so much higher prices for prescrip- with a country that has a budget sur- sissippi, $138; in Canada, $74. Despite tion medicines than any other people plus, and the tax cuts are fine, and all the rhetoric and talk last year, we around the world. The answer to that is some we like better than others, but still have not got anything for the drug really quite simple, because every what could be a truer, better tax cut, benefit program. other country around the world has because we know the families, the chil- Let us think about the people that some kind of restriction on the price of dren, the wage earners, are having to made this country free, the World War prescription medicine. So, compared to supplement their parents and grand- II veterans and these same parents and what they pay, we are footing the en- parents or aunts and uncles, so it is grandparents that went through the tire bill. taking money away from them. Depression, went through World War II A lot of the drug manufacturers have So it is just really compounding and fought other major battles to weighed in on this issue of prescription itself when you have a married couple, make this country free, are now fight- drug coverage under Medicare because or a couple that has their parents or ing for their own survival, their own they fear that what may result is the grandparent living in the same county, war, and that is to buy their medicine. American people might end up paying and they were to get in on the job so I am proud of the drug companies and the same lower prices as the people all they could help their parents or grand- American pharmaceutical companies around the world are paying. Of course, parents with their expenses of medi- that have made this technology so that would significantly cut into their cine, and now they are hurting because available to our parents for medicine. profits. But the American people de- their job is gone. Now what is going to But still what good does it do them to serve to know why it is that when you happen to those people? have the medicine if they cannot afford walk into your local pharmacy, you There are so many people in this to buy it? have to pay over twice as much for pre- country today who, without the fam- I have joined my colleagues in re- scription drugs as you do any other ily’s support, would absolutely die introducing the Prescription Drug place in the world. without it, would absolutely not sur- Fairness for Seniors Act. It is a little There was a group of seniors down in vive. Then, to be compounded even different this time in the structure. Texas several months ago, and a lot of worse, the loss of jobs in my area that They said they could not afford the folks in Texas, a lot of them go across have gone to other parts of the coun- other one, it would not work. So they the border into Mexico and fill their try, to Mexico, it is kind of like our be- are taking the average foreign price of prescriptions. We are not talking about rets are going to China, and now our

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00105 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.137 pfrm02 PsN: H02PT1 H1840 CONGRESSIONAL RECORD — HOUSE May 2, 2001 jobs have gone to Mexico, and now the all be drinking that free bubble-up and home and face their constituents and loss of revenue; and it is just hard for eating that rainbow stew.’’ I think it is tell them, ‘‘Well, we are going to take these people to supplement their par- rainbow stew time. care of that next year,’’ or, ‘‘We are ents now. In Arkansas, in our folklore there, we going to figure out some way to make Mr. TURNER. I like what you said have something called a buckeye. It people think we are going to take care there about a prescription drug benefit looks like a nut. As far as I know, it is of it,’’ knowing that these seniors cre- for our seniors and fair pricing for all not good to eat and nobody eats it, and ated this country we have today, and of us would be as good as a tax cut. It animals do not eat it. yet they are being ignored by their own is not unusual for us to run into people According to the folklore, if you get government. who are paying $400 and $500 or more a a buckeye and put it in your pocket, it Not only are we not providing pre- month just to fill all their prescription will ward off evil spirits and give good scription drug benefits for these sen- drugs, and when you know that we are luck, and keep rheumatism from at- iors, we are allowing the prescription paying twice as much as anybody else tacking you. I have been carrying a drug manufacturers of this country to in the world for our medicines, if you buckeye, but I have been giving them rob them at the same time. It is not had fairness in pricing, they would save away, because that is the only pre- right, it is not fair, and every Member $200 or $250 a month. scription drug plan it looks like we are of this Congress should be working day Goodness, I do not know any of these going to get from the Bush administra- and night to try to do something about tax proposals that everybody is talking tion. I am giving it to as many of my it. about that are going to give an average senior friends as I can, and I am out of We should not allow this to go past family $2,400 a year. So if we could pro- buckeyes now. I wish I had one to show Memorial Day and not do something vide fairness in drug pricing and a pre- it to the Members. It looks like that is about the fact that the American peo- scription drug benefit for our seniors, going to be the prescription drug plan. ple are being terribly mistreated by the we would help many of them many The President has already said he prescription drug manufacturers. times over what they can expect under does not want to do anything about Again, I cannot begin to thank my any of our tax-cut proposals. price. It is all right for the American colleague, the gentleman from Texas, I am pleased that we have tonight people to get robbed day after day after for the leadership he has provided on another member of the Blue Dog Coali- day. Whether one is a senior or not, this matter. I think we are very fortu- tion with us, the gentleman from Ar- one is getting robbed. nate to have such leaders, and I con- kansas (Mr. BERRY). Here we are, we are going to be asked sider myself privileged to work with Mr. BERRY is trained as a phar- tomorrow to vote for a budget that no- the gentleman from Texas (Mr. TURN- macist. He understands this problem body has seen. The most we are going ER), not only in the Blue Dogs, not full well, and he cochairs the Blue Dog to know about it is what speculation only on prescription drug and health Democrat’s Task Force on Health Care. we can get and what little bit of infor- care matters, but also as we work I am very pleased to have him join us mation we can get from the committee through this budget, through the other on the floor tonight and to yield to staff in some way or other. I do not issues that are going to determine him. even think some of them have seen whether or not we are going to have much of it. these kinds of benefits for our seniors. 1800 b We are going to be asked to vote for Mr. Speaker, our majority leader Mr. BERRY. Mr. Speaker, I thank my a lot of things, particularly for some ever since 1995 has mentioned on the distinguished colleague, the gentleman major tax cuts. Like my colleague, the floor I believe that we should let Medi- from Texas, for yielding to me. gentleman from Mississippi, said a care wither on the vine. This is pre- I also want to thank him for his lead- while ago, I am in favor of some of cisely the direction we are headed in if ership in this matter, and for his con- those tax cuts. But what could be a we do not do something about not only tinued effort to see that not only the better tax cut than to see that our sen- a prescription drug benefit for Medi- senior citizens in this country but also ior citizens are not thrown into abject care, but making sure that we have the American people are treated fairly poverty, or create a situation where adequate funding in that program to when they go to the drugstore to buy their family has to lend great support see that our seniors will have Medicare their medicine that they have to have to them to see them stay healthy, stay and a prescription drug benefit in years to stay healthy and stay alive and have alive, and have what they need to have to come. a decent life. a decent life? The budget we are going to be asked It is an amazing thing to me that These are the very people that built to vote on tomorrow will actually here we are, the richest, most powerful this country into the great nation it is make that situation worse, not better. nation in the history of the world, and today. They worked hard, played by We all know that. There is expected to yet our senior citizens do not have the the rules. Now we are telling them, be a provision in there that basically medicine that they need to stay ‘‘Well, we just really do not think we robs the Medicare trust fund, takes healthy and stay alive, and those that can afford to take care of you. We do away our ability to provide even the are able to buy it are thrown into ab- not know you anymore. We gave you services that we are providing now to ject poverty many times, and forced to Medicare in 1965.’’ our seniors. I think that is absolutely make a decision between food and med- A health care plan for seniors today irresponsible. icine. without a prescription drug benefit is Mr. TURNER. Mr. Speaker, I thank How many times have we come to the equivalent of not having Medicare the gentleman from Arkansas. I found this floor in the last 4 years, I say to in 1965. It does not make any sense. It it very interesting, his comments my colleague from Texas, how many certainly does not seem like the right about the last election. That was so times have we come to this floor to thing to do. true. Every candidate that was running talk about this? I think it is absolutely irresponsible for office last November was talking In the last election, Republicans and to bring a budget to the floor tomorrow about trying to provide a prescription Democrats, every candidate we saw, that does not provide a good, honest, drug benefit for our senior citizens. said, ‘‘Boy, we are for it. We are going straightforward prescription drug ben- I am sure there are many seniors out to take care of it. We are going to do efit for our senior citizens, and the there tonight that wonder what hap- everything. We are going to provide mechanism where Americans do not pened; how could all of these Members you with your medicine, and every- have to pay twice as much or three of Congress be campaigning for office, thing is going to be wonderful.’’ times as much for their medicine as talking about how committed they Merle Haggard, the great country any other country in the world. were to helping our seniors afford pre- and western singer, has this wonderful I would urge the majority party to scription drugs, and now nothing has song he sings called Rainbow Stew. He think about these things before they happened. Very seldom do we hear any says, ‘‘When a man is elected and goes bring that budget to the floor. Think discussion of the issue, and those of us through the White House doors and about the commitments they made in who bring it to the floor, as we are to- does what he says he will do, we will the last election. How can they go night, are doing so in a special order

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00106 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.139 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1841 hour, not with the opportunity to bring have said you want to buy our food, are going to be better off working with it before a committee that would have and we are pleased about that. We cer- us than working against us. the opportunity to actually take some tainly want to sell it to you. Our farm- Last year in this country nine out of action, or bring it to this floor on a ers need the business. Our markets are the top ten drug manufacturers spent regular calendar, where we could actu- in bad shape and we need your help, more money marketing than they ally vote on a program, but we are rel- and you need our food. But you had not spent on research and development. A egated to this special order evening talked about medicine. Do you not lot of times these big pharmaceutical hour, which is set aside for discussion want to buy our medicine?’’ manufacturers say, ‘‘Oh, if you make of issues that we choose to talk about And they laughed a very cynical us have our drugs purchased by the to begin to discuss once again the prob- laugh and looked across the table at government or available to our seniors lem of prescription drug coverage for our delegation. They said, ‘‘We can buy under a Medicare program, we are not seniors. your medicine anyplace in the world going to make as much money. We will I do not know if the gentleman saw cheaper than we can go buy it from not be able to do all this research and any of the ads that were run during the you. We can buy it in Canada, Mexico, development that allows us to come up last campaign, but I watched them Panama, Great Britain, Argentina; just with all these miracle cures.’’ carefully. It was very interesting to me pick a place, we can buy it for one- b 1815 to see them. I think it is important third of what you are paying for it.’’ perhaps for us to talk a little bit to- Then they looked me right in the eye Well, that gets your attention be- night about why it is so difficult to and they said, ‘‘Why do you do that to cause the pharmaceutical manufactur- pass a meaningful prescription drug your own people?’’ I do not believe I ers have done an excellent job coming benefit plan in this Congress when all have ever felt more inadequate than I up with new medicines for our ail- of the Members of the Congress profess did at that moment. I did not have an ments, and we want to be sure they to say they are for it. answer for them. The best answer that continue to do that. But the truth is, I think it is important for us to dis- I could give them is, ‘‘We are trying to when they spend more money on mar- cuss a little bit what the roadblocks change it.’’ keting than they do for research and really are, because when it comes right We are going to keep trying until we development, that argument sort of down to it, there are powerful forces at get it done, because it is just a matter rings hollow with me. After all, we are work opposing our efforts to provide a of basic fairness. all familiar with the TV ads that are prescription drug benefit under Medi- Mr. TURNER. I certainly agree with running all the time now telling us to care for our seniors. the gentleman. I am sometimes dis- go down and ask our doctor for some The foremost opposition that we couraged when I try to talk to seniors prescription medicine. And I am sure have faced comes from the pharma- in my district about this issue, because there are a lot of people that see those ceutical industry itself. I think there they know they are paying more for ads that go down and get the medi- are a lot of our seniors out there and medicine than their counterparts in cines. That is why they are running the across America who do not understand Mexico or Canada or anywhere else in ads. And that is great they now know why it is we cannot do something the world, and they do not know why it about them, and they will go take the about this problem, but the truth is, is that we cannot do something about medicines. But the truth is, they are the pharmaceutical industry has con- it here in the Congress, why we cannot spending millions of dollars peddling sistently opposed a prescription drug provide a benefit under Medicare. their products to the American people benefit under Medicare. What I try to point out to them is at exorbitantly high prices when com- Some folks may say, why in the what I mentioned a moment ago, and pared to the rest of the world. world would they do that? The gen- that is that the pharmaceutical manu- So I think it is time to get a pre- tleman knows and I know and many facturers have opposed our efforts, and scription drug benefit under Medicare. others in this House certainly know try to explain to them how many dol- It is a voluntary plan. Everybody that that the pharmaceutical industry is lars are actually at stake for these big wants to sign up for it can sign up for afraid that if we have a prescription it. If they do not want to sign up for it, drug benefit under Medicare, that the pharmaceutical manufacturers. I suspect that what the gentleman they do not have to sign up for it. It is government will no longer pay them just said is the truth, that if we could going to cost not only the seniors in a those exorbitantly high prices that have prescription drugs at affordable monthly premium, but there is a cost they are currently able to charge our that we are going to have to pay here seniors for prescription drugs. prices, they would sell more of them Is that not really about what it and they will still make profits. But to at the Federal Government so that we comes down to? date, they do not seem to be convinced. can keep the premium within reach of Mr. BERRY. Absolutely. Mr. Speak- In fact, in the last campaign cycle, the average senior, and that cost has er, if the gentleman will yield, one of they spent over $2 million in direct been estimated to be something in the the interesting things is that analysts campaign contributions to try to influ- neighborhood of $300 billion. That is a have looked at the situation and they ence this Congress not to have a pre- lot of money. But that is only about 5 indicate that our people would use a scription drug benefit under Medicare. or 6 percent of this budget surplus that lot more medicine if they could afford In fact, they spent $75 million over the we are so proud of. it, and that it actually would not dam- last session of the Congress just lob- My colleagues would think that if we age the pharmaceutical companies’ bying the Congress, trying to be sure have a $5.6 trillion surplus that is profits at all, that they would continue that no bill moved through the House going to show up here in Washington to be very successful. or Senate to provide a prescription over the next 10 years, we could not And we want them to be successful, drug benefit under Medicare. only cut our taxes but we could take but it all comes down to money. I That tells us, Mr. Speaker, that care of the most vulnerable segment of think it is such an irresponsible thing those pharmaceutical manufacturers our society, our senior citizens, that to expect our seniors and to expect really feel threatened by this proposal consume the majority of the prescrip- other Americans that have to take to provide a prescription drug benefit tion drugs in this country. It seems medicine to continue to pay two and under Medicare. I guess they are kind that surely we could be compassionate three times as much for their medicine of the last segment of health care that enough to take care of those who are as anybody else in the world. is not covered under the Medicare pro- most vulnerable. I happened to be in Cuba about this gram. I know, as the gentleman from Ar- time last year. We were there to meet I think that there is a way for rea- kansas knows, that the fight is not an with the ministers of the Cuban gov- sonable people to sit down and to work easy one, and our fight has been long. ernment to talk about them buying out a piece of legislation that will give Our fight has been hard. We have both food from us, and also talk about buy- our seniors access to prescription drugs talked about this subject since we first ing our medicine. under Medicare, and do it in a way that came to Congress over 4 years ago, and As we were beginning to conclude our pharmaceutical manufacturers will I suppose we are going to have to keep these talks, we said to them, ‘‘You understand that in the long term, they talking about it before we will ever see

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00107 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.141 pfrm02 PsN: H02PT1 H1842 CONGRESSIONAL RECORD — HOUSE May 2, 2001 it happen. I know and the gentleman Madam Speaker, I thank the gen- yesterday at the National Defense Uni- knows that we can do something about tleman from Arkansas for joining me. versity. He said that we need to change it and we can put a prescription drug f the basic parameters which we live benefit under Medicare. I think it is under and deal with in our relations DEFENSE OF AMERICA’S really a disgrace to have a budget com- with Russia and other countries rel- HOMELAND ing before this Congress tomorrow, the ative to the ABM Treaty. The ABM conference committee report, without The SPEAKER pro tempore (Mrs. Treaty, which was negotiated in 1972, having in it a clear set-aside of the CAPITO). Under the Speaker’s an- allows both the United States and the money necessary to provide a meaning- nounced policy of January 3, 2001, the former Soviet Union to rely on deter- ful prescription drug benefit for our gentleman from Pennsylvania (Mr. rence so that neither country would at- seniors. It is going to be an empty WELDON of Pennsylvania) is recognized tack the other for fear of retaliation. promise in that budget; there is no for 60 minutes. In addition, that treaty says that doubt in my mind about that. Mr. WELDON of Pennsylvania. each country can have one missile de- The Senate debated it. They had a Madam Speaker, I rise tonight to focus fense system, one ABM system. The vote on putting $300 billion or more in on an issue that is dominating the Russians chose to deploy such a system the budget. That vote was 50 for and 50 front page of every newspaper in Amer- around Moscow, which protects about against, with the Vice President voting ica today and that is the defense of 75 percent of their population. America no and defeating the amendment. But America’s homeland. President Bush chose not to pursue any system, be- we are coming close. We are getting gave a major speech yesterday where cause it was politically impossible in closer, and we are going to get there; he outlined a commitment to pursuit America to choose one city over an- and I am just very hopeful that at of a national missile defense and pro- other and leave the rest of America some point in this session of the Con- vide a protection for this Nation from vulnerable. gress the President and the leadership the bully pulpit leadership that he can Today, Madam Speaker, America is of this Congress will step forward and provide, which has not been there for totally vulnerable. If an accidental do the right thing, provide a meaning- the past 8 years. launch occurred of one missile from ful press drug benefit under Medicare. Tonight I will talk about that issue Russia, from North Korea, which we There are some here who advocate it, in depth. I will talk about the objec- know now has the long-range capa- but they say we are going to do it after tions that are being raised by some; bility, or from China, we have no capa- we reform Medicare. Now, I am a little why we need this kind of capability; bility to respond. unclear about reforming Medicare. I what the current system capability is Now, is that such a far-fetched idea think Medicare has worked very well that we are developing. And I am going or notion? Well, Madam Speaker, let for our seniors. Most of the seniors to respond to criticisms that this will me document for our colleagues what that I talk to got upset when we start- start a new arms race. occurred in January of 1995. As we ed seeing this Congress a few years ago, But let me also start by saying that know, the Russians have hundreds of before the gentleman and I arrived, we have had some absolutely over- missile launchers, all of which can change Medicare so that seniors could whelming success, Madam Speaker, in reach any city in America within 25 go through an HMO and get their Medi- a program that actually you helped us minutes, and all of which have nuclear care coverage. They were enticing sen- put forward this year to provide sup- warheads on top of them. iors to sign up with all kind of add-ons, port for our domestic defenders in Now, there is a very sophisticated like a little prescription drug benefit; America, our Nation’s fire and EMS command and control system on those and the first thing you know, all those personnel. For the last 220-some years missiles, as there are on our missiles; HMOs decided to cancel their coverage in America we have not done anything but a significant number of Russia’s and left literally thousands of seniors in Washington to support those brave missiles are on mobile launchers. They all across this country without any men and women in 32,000 departments are called SS–25s. If my colleagues saw prescription drug coverage, which was across this country, 1.2 million men a photograph of one, it would look like the very reason they had signed up and women, 85 percent of whom are it is on the back of a tractor-trailer with an HMO in the first place. So I do not know what Medicare re- volunteers, who protect our towns and truck. But that missile, even though it form is. Does the gentleman have a feel cities. can be transported any place over an As Madam Speaker knows, last year for what that means? I do not know. open road area, can travel the nec- the defense authorization bill, and she And I know the gentleman has worked essary distance to hit any city in on this issue, as I have. Everybody lobbied for this as a candidate in West America and devastate that city. Each says, well, we will provide prescription Virginia, and I appreciate that leader- of those SS–25s are controlled locally, drug coverage when we reform Medi- ship, we in fact were able to success- even though they have to have the care. Has anybody told the gentleman fully put in place a program that pro- command authorization of the central what reforming Medicare really is vides grants for these individual emer- Russian Government. going to be? gency response departments nation- Let us look at what happened in Jan- Mr. BERRY. Well, if the gentleman wide on a competitive basis. The time uary of 1995. Norway was going to will yield, I am afraid it is going to be period for applying for the grants was launch a rocket into the atmosphere to that buckeye in that rainbow stew I re- 30 days, and it ended today. sample weather conditions. So Norway ferred to earlier. Now, some said there would not be contacted Russia and told the Russian As best I am able to determine what much in the way of requests because Government not to worry when we the plan by the party across the aisle there is not much need. The prelimi- launch this three-stage rocket; it is and by the administration currently is, nary results at FEMA are in. Madam simply for us to gather more informa- it is to force our seniors into a man- Speaker, over 20,000 grant application tion about weather conditions affecting aged care plan. And the only way they requests were received in 30 days, and our country. Now, because Russia’s will be able to get a prescription drug the requests will total in excess of $2 military has been in a state of dis- benefit is to accept this managed care billion. There is a significant need out array, they have not been able to in- plan as a substitute for Medicare. It there for America to respond to help vest and reinvest in improving their will have the same result that the gen- for our first responders, especially as it conventional alert systems and their tleman just referred to; it will be an in- relates to homeland defense. We only intelligence collection systems. So surance company effort that the insur- have $100 million to allocate this year, that when Norway launched that three- ance companies will pull out of, ask but it is my hope that with the support stage rocket, the Russian intelligence continuously for more money, and we of Members on both sides of the aisle agencies misread it as an attack from will be spending our Federal dollars for we can continue to increase that fund- an American nuclear submarine. insurance companies rather than for ing availability. Boris Yeltsin acknowledged the week health care for our seniors. Madam Speaker, my real topic to- after that incident that Russia had, in Mr. TURNER. That is what I was night is to focus on the missile defense fact, for one of only three times that afraid of. Our time has expired; but, speech that President Bush presented we know of, put their entire offensive

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00108 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.143 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1843 ICBM system on alert, which meant, against a missile that would be also know that North Korea is devel- Madam Speaker, that Russia was with- launched against an American city. oping a nuclear weapon, if they do not in 15 minutes of launching an ICBM As a result of the launch of that Scud already have one, which could be with a nuclear warhead against an missile by Saddam Hussein, 28 Ameri- placed on a missile. American city. With 7 minutes left, cans came home in body bags because Let us take a scenario for a moment. Boris Yeltsin overruled the other two we let them down. America had no sys- Let us suppose that North Korea would holders of what we call the black tem in place to defend against that invade South Korea, which they have boxes, or the chegets, in the Russian kind of a missile attack, even in a talked about off and on for years. The command and control structure, the small area the distance between Iraq U.S. would, because of our relationship, general in charge of their command and Saudi Arabia. probably come to the aid of South staff and the defense minister, Paval The sad part, Madam Speaker, is that Korea. And what if North Korea’s lead- Grachev and General Kolesnikov. With 9, 10 years later we still do not have a ership then, and they have certainly 7 minutes, left Boris Yeltsin overruled highly effective system for missile de- indicated unstable decision-making them and called off the response fense to protect our troops and allies processes in the past, suppose they said against an American city. and our Nation. Part of the reason is to America, If you do not pull your Now, Madam Speaker, for just one because President Clinton and Vice troops out of South Korea, we are moment let us imagine that one of President Gore consistently opposed going to launch our long-range missile those missiles is accidentally launched, missile defense, and consistently found at one of your cities. which are preprogrammed to hit a cer- ways to avoid America moving forward Now, unlike in the past, we know tain spot in America, and all of their in developing successful and reliable North Korea has that kind of very rudi- missiles are preprogrammed, as ours systems. mentary capability. Do we then attack are preprogrammed. What if that oc- So the first reason we need missile North Korea preemptively? Do we wipe curred and what if President Putin defense is to protect us against an acci- out any capability they might have? then realized Russia had made a grave dental or deliberate launch. The CIA Do we bomb their cities? Madam Speaker, we cannot allow a mistake; that they accidentally al- has now documented that North Korea, rogue state to have the potential for lowed, either because of a lack of con- an unstable nation, in August of 1998 causing problems in the decision-mak- trol of a command unit, who may have test-launched a three-stage Taepo ing process of our President and com- gotten the launch codes, or because of Dong II rocket that traversed into the atmosphere. It did not complete its mand officers because of the potential some other glitch, Russia accidentally for a launch, illogical launch as it launched one missile against America? line of flight, but the CIA estimated if it had, it would have been able to reach might be, against our sovereign Nation What would the phone conversation be or our allies. American soil, the West Coast of Cali- like between President Putin and The idea of a missile defense system fornia, parts of Alaska and parts of Ha- President Bush? under George Bush is not what Ronald Well, it might go something like this: waii. Reagan proposed, and there will be That allowed the CIA to say publicly ‘‘President Bush, I am sorry to tell you some in this country who say, there that North Korea has the ability to we have made a tragic mistake. We goes George Bush trying to restart the launch from its soil a long-range, have accidentally launched a missile Cold War, trying to bring back Star three-stage missile that could deliver a against one of your cities. We did not Wars, or the Strategic Defense Initia- mean to do it, but our command and light payload against an American tive. control system failed.’’ What would be city. That missile might not be very That is not what President Bush was President Bush’s response? Would he accurate, they might aim for Los Ange- talking about yesterday. No one is pro- then call a national press conference les and hit San Francisco, but if you posing that we attempt to build a and tell the people of that target city are a resident of San Francisco, it does shield over America that could stop that they have 25 minutes to move? Be- not matter where they aimed. Russia if they wanted to attack us with cause, Madam Speaker, we have no de- The point is, North Korea has a capa- all of their missiles. That is not the fense today against a ballistic missile bility that they never had. Unlike idea being discussed. And most experts launch against America. We have no when the ABM Treaty was developed, agree that would be technically and fi- defense system in place. you only had two major countries with nancially impossible to achieve. We are For the past 6 years, Madam Speak- this kind of ability, the Soviet Union only talking about a limited capa- er, I have chaired the research and de- and the United States, and we could re- bility, a system that would give us the velopment committee for national se- spectfully agree that neither would at- ability to defend against a small num- curity. I have been on the security tempt to attack the other for fear of ber of missiles, an accidental launch or committee for 15 years. So I work these retaliation. Also, when the Soviet a deliberate launch of perhaps 1 to 10 issues. The possibility of an accidental Union was in fact a coherent country missiles, that we could defend against. launch is not very high, but it does prior to 1992 before the breakup, the This does not destabilize our relation- exist. Soviet military was well-paid and well- ship with Russia because Russia knows fed. They had discipline. They were b 1830 full well that they could launch hun- well-respected in Russia. Today, there dreds of missiles at America and very And the fact is that today America are severe internal problems and sta- easily overcome the kind of system has no defense against such a launch. bility problems within the Russian that President Bush is talking about. There is no system we can put into military. For these reasons, Madam Speaker, space, there is no plane we can send up Therefore, because of those problems, it is important that America provide a that can shoot down an incoming ICBM there is a greater likelihood of a prob- defense for our people. at the speed it would be traveling. lem potentially occurring, as there is The interesting thing is that some of The same thing occurred in 1991 when with the possibility of North Korea or the opponents of missile defense have in Desert Storm Saddam Hussein de- China threatening a launch against the consistently opposed all research in cided that he wanted to harm Amer- U.S. this area. And I would say to our col- ican soldiers. He could have put a bomb Madam Speaker, it is not just wheth- leagues, as I did several years ago when on a truck, and he could have had it er or not they would launch a missile we voted on H.R. 4, my missile defense driven into Saudi Arabia where our against us, because the opponents of bill in the House, and we pulled more troops were headquartered. But he did missile defense will say, wait a minute. Democrats with us than President not do that. Saddam Hussein chose the Does anybody really believe that North Clinton did, 103 Democrats voted in weapon of choice, a low-complexity Korea is going to fire a missile against favor of H.R. 4, 102 Democrats voted Scud missile with a conventional bomb the United States? We would wipe against it and all but two Republicans on top of it and fired that missile into them out. We would wipe China out. voted in favor of that bill, giving us a an American barracks in Saudi Arabia. That is not the issue, Madam Speaker. veto-proof margin. Our goal is to give We could not defend against that mis- The problem is that we now know us the capability that every nation in sile, much like we cannot defend North Korea has the capability. We the world is now pursuing.

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00109 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.145 pfrm02 PsN: H02PT1 H1844 CONGRESSIONAL RECORD — HOUSE May 2, 2001 Israel is one of our key allies. Israel threat to an attack on our homeland, Two high ranking officials were em- needs missile defense to protect her but we now begin to allow missile de- powered by our two governments to ne- people from the missile technology fense systems. gotiate and look at ways that we could that Iran, Iraq, Syria and Libya now Now, the question is, why would cooperate together in missile defense possess. We are working with Israel America pursue missile defense, it is in 1992. Those meetings, entitled the helping to fund the Arrow program and only going to back Russia into a cor- Ross-Mamedov talks took place on an the theater high-energy laser program, ner. That is not true. The fact is that ongoing basis. In 1993, when Bill Clin- giving Israel a capability they did not Russia believes in missile defense, as ton and Al Gore came into office, they have in Desert Storm. does America. They believe in deter- had opposed missile defense. Without The Patriot program was not de- rence, as does America. The Soviet consulting with the Russian govern- signed to shoot down missiles in Desert Union developed the only operational ment, they abruptly canceled the Ross- Storm. It was a system developed by ABM system around Moscow. That sys- Mamedov talks. We sent the first sig- our Department of Defense to shoot tem has been upgraded four times, and nal to the Russians that we do not down airplanes. But when we knew it still exists today. want to cooperate with you on missile that Desert Storm was going to take When I have been in negotiations defense. We do not want to be your place, and we knew that Saddam Hus- with my Russia friends, and I have partner in looking at ways to change sein had missiles, we had to help Israel gone to Russia 23 teams, I speak the the dynamic of our relationship. defend herself, and so we gave her a language, I formed and I chair the The second signal was sent to the system designed to shoot down air- Interparliamentary Commission with Russians in 1996 and 1997. We had in planes, and we asked the contractor in the Russia Duma and the Federation fact funded one joint program between this country to provide a more robust Council. When I travel to Moscow and our Defense Department and the Rus- engine to make that missile move meet with my Russian friends and we sian defense department in the missile more quickly. talk about missile defense, I candidly defense area called Ramos. Ramos was It was not the answer, and it was not ask them, If you really believe in de- designed to build two satellites, one successful. Only 40 percent of the at- terrence alone, take down your ABM controlled by Russia, one controlled by tempted launches or the successful system. Be as vulnerable as America is, the U.S., identical in operation, so that launches of the Scud missiles by Sad- and have no system and rely on deter- each country would get the same iden- dam Hussein were stopped by the Pa- rence. tical information when a rocket was triot systems. We need to do better, They look at me and smile and laugh launched someplace on the surface of and that is why for the past 10 years we and say, You know we will never do the Earth, so we would have the same have used our tax dollars in coopera- that. alert mechanism. It also was designed tion with Israel to help her build mis- The point is that the Russians be- to build trust between our countries in sile defense systems. lieve in missile defense. They have ag- the area of missile defense. The pro- We have also helped the Europeans. gressive and very capable theater mis- gram was supported aggressively by We are working on a program called sile defense systems. They have the the Congress. In fact, as the chairman MEADS, the Medium Extended Air De- SA–10, the SA–12, the S–300, the S–400. of the Research Committee, I put fense System, which is a cooperative They have now been trying to sell a Ramos in as a line item in the defense program between the United States, system to both Greece and Israel called budget. In 1996 and 1997 with no ad- between Italy and Germany. The pro- the Anti-2500 system. It is a very capa- vance notice to the Russians nor to the gram is designed to give those coun- ble, mobile system that can be used by Congress, the Clinton administration tries a missile defense capability in all any Nation to defend against missile decided to cancel the Ramos program. of Europe. We do want to cooperate attack. When the Russians found out about with our allies. This is not just about In fact, Russia’s systems are com- this, they were livid. I got three phone protecting America. parable to systems that we are build- calls and faxes and e-mails at my office In fact, we proposed the same kind of ing. So it is not a case of America pur- from senior Russian leaders. assistance to our friends in the Far suing missile defense and embarrassing They said, ‘‘Congressman WELDON, East, and we have also proposed to co- Russia because they do not have any what is going on? We thought America operate in the same way with our Arab systems; they have some of the best wanted to work with us in finding ways friends in the Middle East. The goal systems in the world available today. to cooperate.’’ I said, ‘‘Well, that was that President Bush laid out for the Why then, Madam Speaker, would our thought and that was our idea.’’ I world is that we need to change the di- Russia not trust us? Why then would then called Deputy Secretary of De- mension. It should no longer be a pol- the Russian leader publicly express his fense John Hamre and I called Leon icy of mutually assured destruction. concerns about the President’s speech? Fuerth, Vice President Gore’s defense Now, to me as a teacher, it is out- Why would Russian leaders and Euro- adviser. I said, ‘‘What is going on here? rageous that we would base our foreign pean leaders express concern about What you are doing by canceling this policy with Russia on mutually assured moving forward with missile defense? program is you are undermining con- destruction. You attack us, we will an- Let me say this, Madam Speaker. If I fidence in Russia that we are trying to nihilate you. We attack you, you will were a Russian today and if I had wit- build.’’ I then went over to the Senate annihilate us. That is a crazy way to nessed what the Clinton administra- and enlisted the support of Democrat have a world order, especially when tion did in terms of cooperation with Senator Carl LEVIN who agreed with you have other nations that are not in Russia, I would not trust America in me as the top Democrat on the Armed any way, shape or form anywhere near the area of missile defense either. Services Committee in the Senate. He as reliable as the Soviet Union was and I worked vigilantly with our col- during the Cold War, and we did not b 1845 leagues, and we overturned the admin- have the instability that we now have Let me give you the reasons why I istration’s decision. The program is inside of Russia with the problems, in- say that, Madam Speaker. We have still funded today. But the damage was ternal with their military and the com- sent mixed signals to Russia for the done. Because for the second time, the mand and control and alerting prob- past 10 years. The first one came in Clinton administration told the Rus- lems that they have in reading what is 1993. In 1992, Boris Yeltsin challenged sians, ‘‘We do not want to cooperate happening in terms of rocket launches George Bush, Sr. to work together on with you.’’ around the world. missile defense, to have Russian sci- The third time occurred in 1997. At a So for all of these reasons, President entists and American scientists cooper- time when most people in the world Bush has proposed a new dynamic. I ate and explore ways that we could and in this country were acknowl- call it asymmetric deterrence, and that work together. George Bush, Sr. ac- edging that the ABM treaty had out- means that we continue to negotiate cepted that challenge. The two Presi- lived its usefulness because we were no with our allies and friends and coun- dents of the two countries involved the longer in a bipolar world with two tries like Russia, and we continue to Ministry of Foreign Affairs in Russia countries, the Soviet Union and Amer- rely on deterrence as the ultimate with the State Department in the U.S. ica. We now had other countries with

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00110 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.147 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1845 long-range missile capability, China in a small country like Israel, a the- thought was our word. Three times in 8 and North Korea and Iran moving in ater program like THAAD is a national years we sent mixed signals to Russia that direction. At a time when most in program to Israel because it can cover about missile defense. It is no wonder this country were saying, let us pro- their entire territory. In America, a that the Russians do not understand vide some flexibility in the way this program like THAAD would not be a what America’s real intentions are in treaty is being interpreted, what did national missile defense because it terms of missile defense. Now, they un- the Clinton administration do? They could not cover all of our territory. derstand my intentions, because I have sent our U.S. negotiators to Geneva ‘‘How did you determine the dif- a good solid relationship with them. where we were in ongoing discussions ference?’’ They know that I want us to be in- with the Russians over the ABM trea- General Koltunov told me, after volved with Russia. The Russians know ty. thinking for a few moments, ‘‘Well, that we want to be partners with them. Instead of trying to find ways to Congressman, there were serious nego- We want to find common ground. make the ABM treaty more flexible, tiations between our scientists and In fact, the weekend before our vote the Clinton administration was negoti- your scientists, and they arrived at on H.R. 4 which this House passed over- ating a tightening up of the ABM trea- these numbers.’’ But he did not give me whelmingly, I invited Don Rumsfeld, ty, contrary to the thought of almost any justification. Well, I was not satis- our current defense secretary, who was everyone in this country. I for the life fied. I came back to the United States. chairman of the Rumsfeld Commission; of me could not understand what the We concluded those negotiations in Ge- Jim Woolsey, who was Bill Clinton’s Clinton administration was doing. neva. President Clinton sent the signal CIA director; and Bill Schneider, a When I read about these discussions to Russia that America was supportive Deputy Secretary of State, to travel with the Russians, I heard about this of tightening up the ABM treaty. So with me to Moscow. I took several the Russians again for the third time plan to multilateralize the treaty, Members of Congress from both parties took us at our word. But the Clinton bring other countries in, even though along. We went to Moscow before the administration knew, Madam Speaker, they did not have long range missiles, vote here so that we could reassure the they could not get either of those two and I heard about this artificial demar- Russians that our intent in moving for- changes to the treaty through the U.S. cation, differentiating between theater ward in missile defense was not to back Senate, even though the U.S. Constitu- and national missile defense, Madam tion requires any substantive change the Russians into a corner. We did not Speaker, I did something that no other to any treaty to be submitted to the see Russia as the enemy. We were not Member of Congress did. doing this to try to create an advan- I went to Geneva. I got the approval Senate for advice and consent. For 3 years, from 1997 to the year tage over Russia. And that we wanted of our State Department, and we set up 2000, actually to the year 2001 because to work together with Russia. a negotiating session. The chief U.S. that is today, until the end of the Clin- Madam Speaker, I am convinced negotiator was on my side, Stanley ton administration, the administration through my contact with Russian lead- Rivales and the chief Russian nego- failed to submit either of those two ers that they can and will understand tiator was sitting across from me, Gen- that America’s intent on missile de- 1 changes to the ABM treaty to the Sen- eral Koltunov. We talked for 2 ⁄2 hours ate as required by our Constitution so fense is not to create an arms race. The about the administration’s negotia- the Senate could debate them. I am Russians believe in missile defense be- tions for these two ideas of tightening convinced the reason the administra- cause they know the threats are real. up the ABM treaty. So I inquired of tion did not do that was because they We believe in missile defense because General Koltunov, ‘‘General, why do knew that neither one of them would the threats are real. For those who say you in Russia want to bring more coun- pass the Senate. They could not even the threats are not real, I say, tell that tries in as signatories to the ABM trea- get a majority of Democrats in the to the families of those 28 young Amer- ty?’’ Only two nations were the origi- Senate to support those two changes. icans who were buried in this country nal signatories, the Soviet Union and They were not in America’s best inter- because we could not defend against the U.S. Why did you pick three former ests. So for 3 years, the Russians had that missile attack in 1991 in Saudi Soviet states, Kazakhstan, Belarus and been convinced by Clinton that we Arabia. Ukraine, to become equal partners to were supportive of tightening up the Madam Speaker, with the Russian the U.S. and Russia? That will make it ABM treaty, even though the adminis- leaders that I work with, people like more difficult to amend the treaty. tration knew the Senate and the Amer- Dr. Yevghenie Velakof who heads up And none of those three countries have ican people would not support those the Kurchatov Institute understand long range missiles. They have all been changes. what we are trying to accomplish. In returned to Russia after the breakup of Last May, when the Russian Duma fact Dr. Velakof and I coauthored an the Soviet Union. was considering ratification of the op-ed 3 years ago that was entitled General Koltunov looked at me and START II treaty, a treaty which our ‘‘From Mutually Assured Destruction he said, ‘‘Congressman WELDON, you Senate had already passed years ago, to Mutually Assured Protection.’’ Dr. are asking that question of the wrong the Clinton administration, I am con- Velakof understands what George Bush person. We didn’t propose to vinced, convinced the Russian leader- is trying to do. When Russians under- multilateralize the treaty. The person ship to have the Duma add those two stand that we are serious and want sitting next to you did.’’ Meaning that changes to the ABM treaty onto the them involved and that we are not our government was trying to push the back of the START II treaty. Why playing games, they will cooperate Russian government into expanding would they do that? Because they knew with us. the treaty to include three former So- the START II treaty had already been But, Madam Speaker, I have to tell viet states. Why would you do that es- ratified by the Senate and because they you, there is one other group in this pecially when none of those three coun- knew they could not get those two country who is causing the feeling of tries had long range missiles, unless ABM changes through the Senate, so instability in Russia. There is one your purpose was to make the ABM they said if the Russians add them on, other group in this country who will be treaty more difficult to modify? then the Senate will have to accept vigorously against missile defense, who The second question dealt with de- them when the treaty comes back to us are actually causing more unrest marcation. I could not understand how for re-ratification. So when the state among the Russian people than the we could negotiate with the Russians Duma in Russia ratified the START II missile defense idea itself. Who are an artificial differentiation between a treaty last spring, they added those those people, Madam Speaker? They theater missile defense system for a two Geneva protocols on the START II are some of the very arms control orga- given area and a national missile de- treaty, it then came back to the U.S., nizations in this city that claim to be fense with longer range. So I said to and what did our Senate say? ‘‘No way for peace, that claim to be for stable the chief Russian negotiator, General are we going to pass the START II relations. Koltunov, ‘‘General, explain to me, treaty.’’ Why do I say that, Madam Speaker? how did you arrive at these numbers of So the Russians for the third time Let me tell you what Yevghenie interceptor speed and range?’’ If I am saw America going back on what they Velakof told me 2 years ago. At the

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00111 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.148 pfrm02 PsN: H02PT1 H1846 CONGRESSIONAL RECORD — HOUSE May 2, 2001 height of our bill being passed by the have missiles. Some have conventional above the fold: ‘‘U.S. Catches Russia House and the Senate, Yevghenie weapons on them. Some have the po- Transferring Guidance Systems to Velakof came in for one of his regular tential to put a chemical or a biologi- Iraq.’’ That was the headline. I was in meetings at my office. He brought with cal agent on them, but they all have Moscow, so I went to our embassy and him a Time magazine edition, I believe missiles and they all have launchers. I met with Ambassador Pickering, who it was February 25, I believe it was in Mr. Speaker, today in the world over most recently was the number three 1998. 22 nations can build missiles and are person in the State Department under There was a two-page feature in Time building them, and they are selling Bill Clinton. magazine on missile defense. It was them to other nations. Missiles are out I said, Mr. Ambassador, what was the written about the new plan being of control. We did not expect this Russian response when you asked the pushed by the Congress to give Amer- threat to come from unstable nations Russians about the illegal transfer of ica the protection that George Bush for another 15 to 20 years, but over the technology to Iraq? outlined yesterday. They called the past 10 years we have lost control of He said, Congressman WELDON, I have plan Star Wars II, or sequel to what proliferation. Because of Russia’s in- not asked them yet. Reagan had done, which is a misnomer. stability and because of China’s lack of I said, why would you not ask them? But the idea was to lay out for the compliance, Russia and China have al- That is a violation of the missile tech- American people the idea of what we lowed technology to flow to unstable nology control regime, an arms control are talking about with a limited mis- nations which then have given those agreement between us and them and sile defense system. In one corner of nations abilities in missile technology other countries. He said that has to come from Wash- that article, taking up almost one-half that we did not think they would have ington. It has to come from the White of one page was the chart I am going to for at least 15 years. Let me talk about that for a mo- House or the Secretary of State. present that I have had blown up. In a So I came back to America, and I ment, Mr. Speaker, because that has a story about missile defense and how wrote President Clinton a letter, a 3- direct bearing on why President Bush America was trying to pursue protec- page letter, asking him to respond to yesterday said we have to have missile tion for our people was this chart. Let the allegation. In March of that year, defense now, because the threats are me read the top and the bottom open- President Clinton sent me a letter, here today. Iran now has a Shahab III ing sentences. which I still have; and in the letter he system they are working on. The ‘‘Destroying Russia. Arms control said, Congressman WELDON, I share advocates map the Pentagon’s top se- Shahab IV and Shahab V, which are your concern about the allegation that cret plan for waging war. 1200 warheads medium-range missile systems, can Russia may have transferred guidance hit 800 targets.’’ This is a map of Rus- kill tons of people all throughout Eu- systems to Iraq that would improve sia. They have got locations where we rope and can hit Israel directly. We their missile systems; and I can say if supposedly have a top secret plan to know Iraq has missiles. We know all it occurred and we can prove it, we will destroy Russia. Across the bottom is these countries have missiles. take aggressive action. But, Congress- How did they get this technology, the following statement. ‘‘Killing man WELDON, we do not have any evi- zones. The vast spread of radiation will Mr. Speaker? Unfortunately, because of dence. Yes, we have allegations, but we wipe out more than 20 million people in America’s lack of enforcement of arms cannot prove that Russia transferred Russia.’’ Dr. Velakof said to me, control agreements. guidance systems to Iraq. ‘‘CURT, I know what your intention is Two years ago, I asked the Congres- So, Mr. Speaker, I brought the proof with missile defense. It is to protect sional Research Service, an inde- today. For the past year, Mr. Speaker, your people. But this is what the Rus- pendent, bipartisan research arm of the I have taken these devices around the sian people will see.’’ They will see an Library of Congress, it is not partisan, country with me. This is an acceler- article in Time magazine with a chart all of our colleagues use it, I asked ometer, a very high-priced device that produced by the Natural Resources De- them to do a study for me of how many controls the speed of a missile. This is fense Council, an arms control group, instances of arms control violations a gyroscope. This system locks into a that is trying to say that our real in- had occurred in the 1990s. I put that re- satellite GPS mechanism to control tent is to kill 20 million Russian peo- port in the CONGRESSIONAL RECORD last the accuracy of where the missile is ple. year. going. When one puts these two devices The answer is that up until 1998, we b 1900 in a missile, they make that missile had evidence that Russia and China very accurate. That is why the Russians are con- had illegally transferred technology, Iraq cannot build these devices. They cerned about missile defense. It is not much of it missile technology, to un- are too sophisticated. Only the U.S., because of the system. It is because of stable nations in violation of arms con- Russia and China, because they got the an inconsistent, incoherent, roller trol agreements 38 times; 20 times by technology from us over the past 5 coaster foreign policy where three the Chinese, 18 times by the Russians. years, can build these devices. It is ille- times in 8 years we sent mixed signals The arms control agreements are sup- gal to give these devices to unstable to Moscow on missile defense. It is be- posed to have sanctions applied when nations. cause of the arms control crowd that we catch other countries in violation. These devices have Soviet markings tries to scare the Russian people into Much like if we catch an American on them. These devices were clipped off thinking that somehow our real intent company illegally selling technology of SSN–19 long-range Soviet missiles. is to wipe them out and dominate to a foreign nation that they should These devices used to be in missiles in them. That has to be dealt with in this noting selling to, we arrest their offi- Russian submarines aimed at U.S. cit- debate that began yesterday. cers. We fine them and, if necessary, we ies, but because of treaties, when Rus- We have to put the facts on the table. put them in jail. Thirty-eight times we sia discarded these old missiles they Our goal is not to wipe out Russia. Our caught the Russians and Chinese ille- were supposed to destroy these, but goal is not to kill 20 million Russian gally giving technology to our enemies. they did not do it. We caught the Rus- people. In fact, our goal is to work with Only two times out of 38 did we impose sians three times transferring not one Russia; it is to work NATO; it is to the required sanctions when we caught set of these devices, but over 100 set of work with Ukraine; it is to work with the Chinese transferring M–11 missiles these devices to Iraq. Canada; with the European countries to Pakistan, when we caught the Chi- What would Iraq want with them? to develop something we have not had nese transferring ring magnets for Iraq would want them to put in their before, an ability to shoot down offen- their nuclear program to Pakistan. The missiles like the one they sent into sive missiles. other 36 times we turned our head. Desert Storm that killed 28 young Mr. Speaker, over 70 nations today in Let me give a real example, Mr. Americans to make their missile more the world have missiles that they con- Speaker, for our colleagues to remem- accurate. We allowed the technology to trol. Countries like Iran, Iraq, Syria, ber. I was in Moscow in January of flow, and we did nothing about it. Libya, India, Pakistan, North Korea 1996. The Washington Post had just re- Here is the evidence, Mr. Speaker. I and a whole host of other countries all ported in December a front page story, cannot say where I got them, but I can

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00112 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.150 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1847 say agencies of our Government have trust our intentions. If I were a Rus- ership and the Russian people con- over 100 sets of these devices. And let sian then, I would not trust our inten- cerned. me say, my guess is there are probably tions either. We blew it to some extent, Mr. Speaker, we need to move for- thousands of these devices that were il- Mr. Speaker. ward with missile defense in coopera- legally sent from Russian entities to The visual image Americans had in tion with the Russians and the rest of Iraq and Iran. 1992 was Boris Yeltsin standing on a the peace-loving people in the world. I Now, do I blame the Russian Govern- tank outside the Russian White House, cannot, for the life of me, as a teacher, ment? Not necessarily. It is caused by openly defying Communism, 20,000 peo- understand how those in this country instability in Russia, but we in Amer- ple around him. As he stood on the still want to rely on offensive weapons ica had an obligation to enforce arms tank and said Communism is dead, the to kill each other, as opposed to defen- control agreements. Now, why would Soviet Union is over, we are in a new sive weapons to protect our people. President Clinton not want to enforce strategic alliance, Russia and America That does not make sense to me. an arms control agreement? We caught together, that was 1992. 1999, what was We can achieve what President Bush them red handed. We have the evi- the visual picture on CNN in the fall of wants. dence. 1999? Ten thousand, 15,000 young Rus- Now, it is a tough task, because you The answer, Mr. Speaker, lies in the sians outside the Embassy of the are talking about hitting a bullet with fact that the Clinton foreign policy for United States in Moscow, clogging the a bullet, stopping a projectile in the at- 8 years was a personal friendship be- street, throwing paint at our embassy, mosphere that is moving very quickly, tween Bill Clinton and Boris Yeltsin. firing handguns at our embassy and and stopping it with another bullet. As long as those two people were burning the American flag, because we And you cannot hit that projectile friendly and in power, President Clin- had been supporting corrupt institu- when it is on the way down or it will ton assumed that our relationship with tions and people in Russia. We had rain terror on the people in that coun- Russia would be stable. been denying reality, and the Russian try, in this case our people. Now, Mr. Speaker, I wanted Yeltsin people lost faith and confidence in That happened in Israel when those to succeed as much as President Clin- what America was really all about. Scud missiles kept landing. Even ton; but our goal in Russia should not In fact, it was about that time I had though the Patriot system may have have been to support a man. It should a Russian Duma member over here. He hit it, the debris kept coming down on have been to support institutions: the did a national press conference and this the Israeli people. We need technology, institution of the presidency, whoever is what he said to the American people as President Bush rightly outlined, to that might be; the institution of a free on national TV. He said, you know, the hit the missile in the ascent phase, as parliament and Duma, whoever they Soviet Communist Party spent tens of it is on the way up. It is called boost- might elect; the institution of a legal billions of dollars over 70 years to con- phase intercept. The reason why that is system, of an economic framework. vince the Russian people that America important is, you knock that missile We should have been supporting in- was evil and Americans were evil, and out on the way up, and the only people stitutions of democracy as opposed to a they failed. Your government has man- harmed are the people who launched personality, because as Boris Yeltsin aged to do in a few short years and the missile against someone else. lost the vigor that he first brought to months what the Russian Soviet Com- What President Bush is saying is, we his job, he began to surround himself munist Party could not achieve in 70 need to develop a new capability, using with corrupt individuals. In fact, he years. technology with our allies, to give us named the oligarchs that ended up run- The last formal request of Boris that kind of protection; and he has pro- ning Russia’s banks. These Russian Yeltsin, before he left office for his posed for the first time in the last 10 oligarchs, many of whom were crooks hand-picked successor, was a commit- years that he will use the bully pulpit and thieves, were ending up taking bil- ment he received from President Putin to move the technology forward. lions of dollars of foreign money, IMF to pardon him and his family. The first Are we prepared today? No. There and World Bank money, that was sup- official action of President Putin, when still is additional testing. Have we had posed to help the Russians rebuild he took office, was to pardon Boris success? Absolutely. Out of 31 at- their economy, rebuild their schools, Yeltsin and his family, including his tempts, we have been successful in over their roads and their communities. But daughter Tatyana, from crimes com- half of them. Our THAAD program has instead, the friends of Boris who con- mitted against the Russian people, had intercepts, successful ones. Our trolled the economic institutions in that America knew about and pre- PAC–3 program has had five successful Russia diverted that money to illegal tended we did not see. That is why the intercepts. Our National Missile De- operations, to Swiss bank accounts, to Russians do not trust our intentions. fense program has had one successful U.S. real estate investments. In fact, The biggest challenge for President intercept. We know the technology is our Justice Department issued indict- Bush is rebuilding the trust of the Rus- achievable. It is an engineering prob- ments against five Bank of New York sian people and its leadership that lem to integrate the systems, and that officials just 2 years ago. America wants to be a stable trading is the challenge that we have to help The allegation is that they were in- partner with Russia. We will not tol- the President overcome. volved in corruption with Boris erate proliferation. We will not tol- I am convinced, Mr. Speaker, that Yeltsin’s friends in diverting up to $5 erate giving foreign unstable nations those of our colleagues in this body and billion of money that was supposed to illegal technology, but we want Russia the other body who supported missile help the Russian people. to succeed. We want to help them cre- defense last year and the year before What did we do? We went like this ate a mortgage program for their peo- will again come back and support and like this. Just as we did with the ple, which is my number one priority. President Bush. This is not a partisan arms control violations, we pretended We want to help their defense industry issue. The battle for missile defense in we did not see them. We pretended we get back on its feet and produce other America was not a Republican battle; did not have evidence. We knew 5 years products. We want to engage their it was won by a bipartisan effort with ago that there were corrupt Russians military with our military. We want to Democrats and Republicans coming to- working with corrupt Americans, steal- help them solve the problem of nuclear gether, understanding that threats ing money to benefit the Russian peo- contamination in the Arctic, a big were emerging quicker than we ple. Do we wonder why now the Rus- issue for the Russians. We want to help thought they would emerge. sian people do not trust our intentions? Russia succeed and become a trading We need to work together to give the When Yeltsin was about to leave of- partner of the U.S. President the kind of support he has fice, his popularity in Moscow was 2 outlined in his vision for a new world percent. Ninety-eight percent of the b 1915 order, one where we focus cooperative Russian people felt he was corrupt and Missile defense is not the reason that efforts together. The Europeans can co- had become a drunk, but there we were Russia is concerned, it is the lack of operate with us, as they are already still supporting Boris Yeltsin. We won- trust and confidence in what America doing. In fact, I am hoping right now to der why the Russian people do not really wants that has the Russian lead- establish a meeting, an unofficial

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00113 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.152 pfrm02 PsN: H02PT1 H1848 CONGRESSIONAL RECORD — HOUSE May 2, 2001 meeting, in one of the Arab countries, professors, one at a time or as a group, turn to democracy ever since the Octo- where I will plan to invite the Israelis to come into your offices. They are not ber 1999 coup d’etat by the military. and the Russians to sit down and have doing any contract work with defense The Musharraf government has out- a conversation about how we can joint- contractors. They are not on the Pen- lawed public rallies of any kind ever ly pursue missile defense cooperation tagon’s payroll. They are from univer- since President Clinton’s visit to the in the Middle East, with Jews and al- sities, like Texas A&M, like some of region in March of 2000. In addition, lies working together, with Americans our major engineering schools, who un- this government has become increas- and Russians. derstand the physics is achievable. ingly hostile and has created a security On Friday of this week, Mr. Speaker, They will be available as we begin threat to the United States and the I will travel to New York City, where I this debate to counter those who will South Asia region by supporting the will give a major foreign policy speech simply try to use their doctorate titles Taliban and the Osama Bin Laden net- at the World Russian Forum, and I will to convince us that somehow we can- work logistically, figuratively, finan- tell the leaders of Russia, I will tell the not accomplish this. cially and otherwise. business leaders in Russia, that we I asked the head of the Boeing pro- In the most recent U.S. State Depart- want to work together, George Bush gram in a hearing last year, a fellow by ment’s annual report on global ter- wants Russia to be our friend and part- the name of Dr. Teller, how difficult it rorism, which was released Monday, ner. There is no reason why we cannot was to achieve the result of missile de- Secretary of State Colin Powell stated achieve that. fense for America and its people. He that Pakistan’s military government, I will then come back to Washington said, ‘‘Congressman WELDON, I have headed by General Pervez Musharraf, and next week will sponsor with the been assigned to this all my life.’’ He has continued previous Pakistani gov- Free Congress Foundation, with Paul said managing the Space Station was a ernment support for several groups re- Weyrich, a bipartisan conference on tougher challenge than building mis- sponsible for attacks on civilians in the Hill with Russian leaders. The sile defense. Kashmir. The report also states that chairman of the International Affairs Together, Republicans and Demo- the Harkat ul-Mujahideen, the HUM, a Committee for the Russian Duma, crats, allies and our own people, we can designated foreign terrorist organiza- Dmitrii Rogozin, will be here, and he create a new world, a safe world, where tion, continues to be active in Paki- and I and others will come together all of our people can be protected from stan without discouragement by the and talk about cooperation. We will what happened to those 28 Americans Government of Pakistan. then travel to Moscow and we will have in 1991. Mr. Speaker, this Congress and its a conference in Moscow on missile de- f members, as proponents of democracy, fense cooperation. We will work to- have an overarching moral obligation PAKISTAN: DEMOCRACY AND PO- gether to find common ground, to build to show solidarity with each struggle LITICAL RIGHTS, A STATE OF confidence among both countries to for democracy around the world. Ex- SHAME move forward together. pressing shock, the Pakistan People’s We need to put away the arguments The SPEAKER pro tempore (Mr. Party senior representative Khohru and the petty wars of the Cold War era. CARTER). Under a previous order of the said, ‘‘They,’’ the army, ‘‘have totally Relying on mutually assured destruc- House, the gentleman from New Jersey clamped down. We are trying to march tion is not the answer. Working to- (Mr. PALLONE) is recognized for 5 min- but obviously every place is a jail. The gether for peaceful protection of our utes. whole city is under siege.’’ friends, our allies and our neighbors, is Mr. PALLONE. Mr. Speaker, Mr. Mr. Speaker, if I could say, we must the solution of the 21st century. That Speaker, I come to the House floor not let political repression go by unno- is what George Bush outlined for us today to denounce the Pakistan Ruling ticed. We must go on record publicly yesterday. He is on the right track. He Army’s dictatorial and wholly unac- expressing the strong opposition of the did not say we have all the answers, be- ceptable treatment of nonviolent polit- United States Congress to the military cause we do not, but he did say, to- ical activists as they assembled yester- coup in Pakistan and call for a civilian gether, there is nothing we cannot ac- day to demand a return to democracy. democratically elected government to complish. May 1, International Labor Day, has be returned to power in Pakistan. I was a young kid in school when historically been a day when rights of f John Kennedy made a very famous those unrepresented and under-rep- speech in 1960. He said ‘‘I challenge resented have been fought for around FIGHTING THE HIV-AID PANDEMIC America to land a man on the moon the world. The political workers and The SPEAKER pro tempore. Under within this decade.’’ I can tell you, peo- activists of Pakistan had announced the Speaker’s announced policy of Jan- ple laughed at him. They thought, this May 1 as their day of peaceful assem- uary 3, 2001, the gentlewoman from guy is crazy. Here is President Ken- blage, asking for return to civilian gov- North Carolina (Mrs. CLAYTON) is rec- nedy saying we are going to land on ernment. General Musharraf, the chief ognized for 60 minutes. the moon? We cannot even get our executive of the country, has com- Mrs. CLAYTON. Mr. Speaker, I join planes to fly totally safe in the atmos- pletely clamped down on the very basic with my colleagues today to talk about phere. How are we going to land on the civilian right of the people to assem- an issue that is causing great human moon? He challenged America to land ble. In his own words, ‘‘Once we have devastation internationally and that on the moon, to explore outer space said there will be no political activity, continues to be a major health and technology. there will be no political activity.’’ quality-of-life problem domestically. You know what happened, Mr. Speak- General Musharraf has called these The HIV-AIDS pandemic that now we er. Nine years later, in July of 1969, we protestors and democracy fighters refer to has deeply impacted the Afri- landed the first human being on the ‘‘useless politicians.’’ This reign of ter- can continent, particularly sub-Saha- moon. It was an historic event that ror by the army has to be stopped, Mr. ran Africa. Sub-Saharan Africa has showed that America can accomplish Speaker, and we must denounce it in been far more severely affected by anything. no uncertain terms. AIDS than any other part of the world. There are those who will say, there Mr. Speaker, Pakistan is taking a In 16 countries, all in sub-Saharan Afri- are a few of them, who will say this is wrong path. Since the October 1999 ca, more than one in ten adults is in- not technologically possible. Mr. coup d’etat in Pakistan, the army gov- fected with the HIV virus, affecting Speaker, that is hogwash. In fact, to ernment has flagrantly violated basic some 25 million people. counter those, we have put together a civil rights of the people. The state of According to the joint United Na- task force of professors. None of the the press is severely threatened. Jour- tions program on HIV and AIDS, three- professors we have on this ad hoc com- nalists are routinely harassed and their fourths of all deaths caused by AIDS mittee are working for any contractor. offices ransacked regularly. The con- are in sub-Saharan Africa since the be- They are all professors. stitution has been abolished. ginning of the epidemic. It is estimated I am going to be inviting all of my The erstwhile political parties of that one-half or more of all 15-year-old colleagues in Congress to ask those Pakistan have been demanding a re- children may eventually die of AIDS in

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00114 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.154 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1849 some of the worst affected countries, and with the Ted Turner Foundation to HIV/AIDS shows no sign of relenting. such as Zambia, South Africa and Bot- provide programs and services to urban It is estimated that each day 16,000 swana, unless, unless, the risk of con- youth. more people become infected. Mr. tracting the disease is sharply reduced. They are also in the planning stage Speaker, to put this tragedy into con- Of the 34 million HIV-AIDS cases in of partnering with the Gates Founda- text, many companies in South Africa the world, 24 million, or 70 percent, are tion and Merck to also bring about are forced to hire two employees for in Africa. In Zambia, 20 percent of the needed resources and medical care to every single available position because adult population is infected with HIV- fight the crisis. There still, however, is mortality rates are so high. AIDS. As a result of HIV-AIDS virus, a great need to establish the health Even with the substantial discounts 650,000 children may have been or- care infrastructure with trained health in the drug prices that the South Afri- phaned, and 99,000 Zambians died in care providers to administer the medi- can law garners, antiretroviral drugs 1999. cation or vaccine if this partnership is will still cost around $300 per year. Zambia is centrally located among to have great impact. Also, many regions of Africa do not the sub-Saharan Africa nations, bor- Soon after I returned from Botswana, have the resources necessary to dis- dered by eight different countries. I sponsored an HIV/AIDS round table tribute or administer these com- There is a growing effort to develop discussion in my district that consisted plicated medications. international disease-prevention inter- of public health officials, community Rather, it must be made clear that vention in Zambia because of its loca- activists, HIV-AIDS case management, these drugs, while desperately needed, tion and its diverse African culture and community health providers, and indi- treat HIV/AIDS and do not halt the language group. I am encouraged that viduals suffering from HIV/AIDS. This spread of the disease. We must make Duke University Medical School, along round table was sponsored because my prevention a priority if we are to win with other pioneers, including the Uni- district in eastern North Carolina has the war against HIV/AIDS. This in- versity of Alabama, are developing an an increased incidence of HIV. Eastern cludes seeking a vaccine, distributing HIV-AIDS intervention program in North Carolina accounts for 30 percent drugs that prevent transmission of Zambia. of the State HIV disease reported re- AIDS from mother to child, and inten- Not only in Africa, but around the cently, while only accounting for 12 sive educational efforts on how HIV/ world, including Russia, China and percent of the North Carolina popu- AIDS is contracted. Most importantly, more must be India, the HIV pandemic continues to lation. In my district, there are far done to empower and assist women in grow. There were 5.3 million new HIV more female HIV/AIDS cases as com- poor countries. Women in poor coun- infections worldwide during the year pared to the State average, and African tries now are the fastest-growing HIV- 2000, and 3 million people died as a re- Americans make up 87 percent of the positive population. sult of AIDS, more annual deaths than new disease reported in my district. I want to commend the administra- ever before. Clearly, this is an issue that is affect- tion for its focus on the international I recently visited Botswana to see up ing us both domestically and inter- fight against HIV/AIDS. The collabora- close the destruction this disease has nationally. tion between Secretary of State Colin I will stop now and yield to my col- caused. Approximately 35 percent of Powell and Health and Human Services Botswana’s adult population is infected league, the gentleman from Illinois Secretary Tommy Thompson to create with HIV. AIDS has cut the life expect- (Mr. RUSH), who also had an oppor- a Marshall Plan to cope with the inter- ancy in Botswana by nearly 30 years. It tunity to visit Africa. He has been very national HIV/AIDS crisis is, indeed, has resulted in the death of so many active on the issue of AIDS. I am glad commendable. people who otherwise would be in the he is joining me in this special order. However, just like any other infec- prime of their life. Mr. RUSH. Mr. Speaker, I thank the tious disease outbreak, HIV/AIDS gentlewoman for yielding to me. b 1930 knows no border or countries. While we Mr. Speaker, first of all, I want to must focus on the international spread The visit strengthened my conviction commend my colleague, the gentle- of HIV/AIDS, as my colleague indicated to do my part in bringing awareness to woman from North Carolina, for this earlier, we cannot forsake efforts do- this institution, and to work with my special order. It certainly shows her mestically. colleagues in Congress, the national sensitivity, her commitment, and it The President’s budget takes a step government, States, the local govern- shows that she is indeed the type of backwards in the fight against HIV/ ment, health and human rights activ- person who, throughout her tenure in AIDS domestically by freezing the ists around the world, to do more for the Congress and since I have known Ryan White AIDS program funding. If the people who have the virus and to do her, has taken the lead on issues that we are to win the war against HIV/ more to prevent the spread of the dis- affect not only the citizens of this Na- AIDS, we must expand our efforts, both ease. tion but citizens all across the world. I domestically and abroad. Only then We need to establish a partnership. commend her for this special order. can we have a victory against this awe- We have heard of the African saying, Mr. Speaker, it is with great pride some enemy. ‘‘It takes a village to raise a child.’’ It that I stand before this Chamber today Mrs. CLAYTON. Mr. Speaker, I want will take a global village to adequately to congratulate the South African peo- to thank the gentleman from Illinois address the AIDS pandemic. ple on their victory to obtain access to for his thoughtful statement. He is While sub-Saharan Africa is dis- anti-AIDS drugs and other medicines right to commend the government of proportionately affected by the virus, at lower costs. AIDS activists, the South Africa, as well as the pharma- it is by no means limited to Africa. As South African government, and inter- ceutical companies, in their with- stated earlier, this truly is a global epi- national organizations deserve a round drawing and the successful conclusion demic that has moved to be a pan- of applause for their efforts. of the case that was against South Af- demic. Also, I want to thank the 39 pharma- rica, because indeed, South Africa did I was encouraged by the government ceutical companies for placing humani- not need that suit, and the people of Botswana’s response to the crisis in tarian concerns over profits by drop- could not afford that. that country. This is truly an issue ping their suit against the South Afri- I also think it is a victory for the that remains a top priority with the can law and government. pharmaceutical companies that they President of that country. The govern- However, before we celebrate this saw the value of withdrawing the suit ment of Botswana has formed partner- victory in the war against HIV-AIDS, and trying to find ways of reducing the ships in an effort to help its citizens we must pause and take stock of how cost of their drugs, and understood the with the treatment and prevention of far we still have to go. HIV-AIDS is plight, that people were trying to im- HIV-AIDS. truly a ruthless enemy of humanity. port affordable drugs because they did The government is in partnership More than 25 million Africans are now not have the money. But even as they with the Bill and Melinda Gates Foun- living with HIV, and last year alone, reduce it, there will be millions of peo- dation to help set up youth centers 2.4 million Africans died from the HIV/ ple who just do not have enough that offer youth counseling services, AIDS disease. money.

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00115 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.156 pfrm02 PsN: H02PT1 H1850 CONGRESSIONAL RECORD — HOUSE May 2, 2001 So the gentleman is absolutely right ommendations, comments, and state- ferent types of messages here. They are in that. I want to applaud the gen- ments, we have to educate people about contradictory. If the Secretary of HHS tleman for saying that we must make how to prevent the disease of HIV/ and the Secretary of State are devel- prevention, prevention, the key in our AIDS, and how to conduct themselves oping a Marshall Plan for AIDS inter- fight against AIDS. There is no cure in a manner that will not allow them nationally, and at the same time he is for AIDS, but there is prevention from to fall victim to the disease. withdrawing resources, vitally needed getting HIV. We can prevent that. Mrs. CLAYTON. I do not know in the resources, dollars from the Ryan White There are ways to do that. We need to gentleman’s area, but I am looking at program here in America, well, then, find ways to do it. health statistics and I am seeing an in- that sends a contradictory message. I also agree with the gentleman, we crease in sexually-transmitted diseases And he has to be clear. We need one cannot go backwards domestically in domestically. We see syphilis, other voice, one approach to dealing not only our fight. The budget that the adminis- transmissible disease, things we with AIDS internationally but also to tration, the Bush administration, has thought were long cured or no longer deal with the epidemic of AIDS right put forward certainly does not support existing. This is emerging again. here at home. his commitment to be very strong on Again, there is just a lack of vigilance Again, I want to thank my colleague AIDS. I applaud him, too, in terms of in health standards or in protected hy- for her outstanding leadership on this making AIDS an issue internationally, giene, and in protected sex of adults, as particular issue. but also the budget needs to reflect and well. Mrs. CLAYTON. Well, I want to be supportive of that. Now, we are seeing not necessarily thank the gentleman for his leadership, Again, I thank the gentleman for his that one causes the other, but the vul- because I know he has been very active leadership. nerability that one puts oneself in and in his community. I know a wonderful Mr. RUSH. I just want to say to my one’s body when they have a sexually- AIDS initiative the gentleman has in colleague, she is an inspiration in transmitted disease, it breaks down the Chicago, the coordinated effort with all terms of the type of leadership she pro- immunity so the likelihood that one the medical schools working. I think it vides on this issue. As the gentle- would be susceptible to HIV/AIDS is in- is probably one of the finest there is in woman knows, I also had the privilege creased greatly. the country in terms of that effort. So of visiting Africa over this last month So we are having to almost educate I thank the gentleman for his leader- and was able to see firsthand the situa- people we thought knew these things ship. tion. and remind them that that is here. Cer- We have been joined, Mr. Speaker, by Mrs. CLAYTON. What are some of tainly we have an education and pre- the gentlewoman from California (Ms. vention challenge, also, internation- the countries the gentleman went to? MILLENDER-MCDONALD), who is very, Mr. RUSH. We went to South Africa, ally. very much engaged in this and has The gentleman is absolutely right, I Kenya, Nigeria, and North Africa; a been engaged in it for a number of think prevention is indeed the answer. North African country, Tunisia. But in years. Her particular emphasis re- That is why it makes it so troubling South Africa, it was driven home most cently has also been with respect to that the Ryan White funds are being graphically the effects of this problem women, but I know she is interested in reduced or flattened, because that is of HIV/AIDS and how it affects the all of it. I thank her for joining us. the outreach. We can prevent, we can- children. A lot of folk do not realize Ms. MILLENDER-MCDONALD. I not cure. I think we ought to invest in that in South Africa, one of every thank the gentlewoman from North research, and I commend that, but we three public school teachers is affected Carolina, especially for her leadership do not have to do it either/or, we can with AIDS. That means that the future on this. I can say unequivocally, do both. Why spend so much money in of South Africa is definitely threatened though, that every member of the Con- trying to treat a disease that we can- by this dreaded disease. gressional Black Caucus has made this not cure when we have also the option Mrs. CLAYTON. That is an inter- a centerpiece, a priority, in this Con- to prevent the disease? esting observation. I was reading some- So we need to take care of those who gress as well as Congresses before and thing on the United Nations report. are affected, but we certainly need to Congresses to come, because this is a Poverty and HIV are related. AIDS is be wise and prudent in investing in pre- very critical issue. And it is so timely not a disease of poverty, but they be- vention. I thank the gentleman for em- today given that just last Saturday I come intertwined and connected be- phasizing that part. had my fifth annual Minority Women cause having AIDS moves one to the Mr. RUSH. I just want to add that in and Children’s AIDS Walk. point where poverty will be the case. my district and in my State, sexually- Mrs. CLAYTON. We did not give the In fact, they said in this report that transmitted diseases are also on the gentlewoman any peanuts this year. I actually the more mobile, the more in- rise. I certainly share the gentle- usually give her peanuts every year to telligent, and more educated person, woman’s comments. Syphilis, gonor- make sure they have energy when they those who had great access to move rhea, all those diseases that we make this great march. around and resources to facilitate that, thought had been abolished, elimi- Ms. MILLENDER-MCDONALD. Yes, they were the ones getting the AIDS. nated, they are on the rise, and pri- the gentlewoman did give me peanuts. So the teachers comment would be marily because information is not get- I had them from North Carolina. They right in line with that statement. That ting out to the people. Information is were there, and we had them in the is the future of that continent. not getting out to them in the way stuffed bags along with those from Ala- Mr. RUSH. Really, one of the most that they communicate. There is no bama and Georgia. salient examples is right here in this But the one thing that we are happy popular ad campaign dealing with this Nation. When HIV/AIDS first became to say is that that has now presented issue. known, it was not poor people who had We can see advertisements all across us proceeds of over $600,000 that we are it, it was educated people who were ig- the television and the radio about giving to different health facilities to norant of not only the disease, but how every other thing except how to pre- treat persons, especially women and to prevent the disease. vent HIV/AIDS. This is a real serious children, with this very deadly disease. It was years ago that someone told Therefore, I agree, it is not a disease epidemic, pandemic, as the gentle- me about this disease; and I thought, that strikes just those who are poor, it woman indicated, across the world, but well, I am in the State legislature, try- is those who are ignorant in terms of it is an epidemic, and almost a pan- ing to pass laws, and I really do not how the disease is contracted and those demic in certain communities here in have time for this. But it was not until who have very little means to combat this Nation. the disease, and also those who are un- that next year or so that someone aware how to prevent the disease. It is b 1945 brought me the facts, brought me the a disease of ignorance more so than a And the awareness is not there. The data; and that is when I said, no, that disease of poverty. commitment is not there. is not their problem, it is our problem Part of what we have to do in our I believe that the President needs to and, more importantly, it is my prob- community, for the gentlewoman’s rec- be reminded that he is sending two dif- lem to look at.

VerDate 02-MAY-2001 01:22 May 03, 2001 Jkt 089060 PO 00000 Frm 00116 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.158 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1851 We know that HIV/AIDS continues to White Act program has been cut. We because their ministers will find out devastate women throughout the can ill afford to do that. We must try and family members. And it is a very world, and nowhere is it more over- to find some methodology by which we hard thing when we talk with the whelming than on the African con- can include funds for this dreadful women who are over 50 who have now tinent. As news reports tell us daily, deadly disease. The President has spo- contracted this. So it is not just the AIDS in Africa has reached crisis pro- ken in very sensitive and very caring young women, the young men; it is the portions. In fact, it is a pandemic. Two- terms about persons afflicted with HIV/ older women as well. thirds of the world’s 33 million AIDS- AIDS. We are asking now that we have So we do have quite a battle, but I infected victims live on the African that so that we can expand the out- know with the help of the gentlewoman continent. Tragically, the epicenter of reach, expand the medicine, the ther- from North Carolina, and the help of this disease is among African women, apy, and expand the education for this this Congress, which the gentlewoman with profound effects on their children. deadly disease. is right, there is not a Member who has More than nine-tenths of 8 million chil- The landmark public-private partner- not been sensitive to this issue, we will dren were orphaned by AIDS last year, ship that was authored under the Glob- continue to do both. and those kids were in Africa. al AIDS and Tuberculosis Relief Act of Mrs. CLAYTON. We are simply try- So when we ask ourselves, what can 2000 is designed to leverage contribu- ing to raise their sensitivity with this. we do? Simply go around and have an tions with additional resources from I just think people of good conscience outreach program, an education pro- the international donor community as cannot look at the epidemic and turn gram on this devastation. No one needs well as from the private sector. We all away. If you do, it says just volumes to wait for groups like mine, the AIDS know that money alone, though, Mr. about where you are not, not where walk, or anyone else. Simply just go to Speaker, will not solve this problem; you are. your churches and your organizations but it is a vital part of the solution. Ms. MILLENDER-MCDONALD. Like and your schools encouraging folks to These funds are necessary to imple- you said, I tried to put my head in the remain abstinent, because we cannot ment HIV/AIDS best practices in coun- sand, but that head was lifted rather continue to see the devastation that is quickly when I saw the data that was tries hardest hit by HIV/AIDS. affecting our children and this deadly While the HIV/AIDS disease con- presented to me. So I do not think any- disease that is permeating commu- tinues to devastate humanity and the one can really shy away from it. nities of color. Mrs. CLAYTON. Again, I want to human element, and finding a cure I have a bill that is called the Moth- thank the gentlewoman for her con- seems far into the future, we cannot af- er-to-Child Transmission bill which tribution. speaks of the drug therapy Nevirapine. ford to give up. I will continue to fight Mr. Speaker, given the loss of lives Because if that drug is given to the and devote my time and energy to find- AIDS has caused internationally, the mother, the child will not come out of ing solutions to the myriad difficulties destruction of entire communities, and the womb of the mother with this dead- surrounding the treatment and fight the long-term impact of economic ly disease. And programs like that new against AIDS. I call on all of my col- growth, we should strengthen our com- and inexpensive drug treatment that leagues to support local and inter- mitment and effort to fight the dev- help prevent mother-to-child trans- national efforts to fight this deadly astating disease. With children dying mission need to be employed in Africa. disease at home and abroad. at the age of 15 or younger, with the This is what I am concentrating on at Again, my colleague, the gentle- life expectancy of only 45 years for this point, trying to see whether we woman from North Carolina (Mrs. children born in many countries now in can get pharmaceutical companies to CLAYTON), I thank so much for her te- the latter part of the 1900s and 2000 in invest in Nevirapine on the continent nacity, for her leadership and for her Africa, clearly this is a human tragedy, of Africa. And not only that but in ongoing support of all of the efforts we an epidemic unknown to mankind and India, China, Eastern Europe and Cen- have put on this floor through legisla- current civilization. To ignore the tral America. All of those areas we tion to try to find a cure for this. problem is to our peril. To know the have found now have a very alarming Mrs. CLAYTON. Well, I thank the impact of AIDS and to ignore it is in- percentage of women and children who gentlewoman for her leadership and for deed to our shame. have been affected and contracted this her statement; and I also thank her for Secretary Colin Powell has stated deadly disease. bringing us up to date on her successful that HIV/AIDS is a national-inter- Governments, corporations, non- tradition and raising funds to combat national security issue that the Bush governmental organizations must co- and bring awareness to the whole issue administration plans to address, and I ordinate their strengths and their of HIV/AIDS. And the gentlewoman is applaud them for that effort. I also ap- projects in addressing major problem right to bring the attention to women plaud the pharmaceutical industry for areas, including the critical absence of and how it disproportionately affects dropping its lawsuit. We heard one of adequate infrastructure throughout women, not only in this country but in our colleagues talking about that ear- the continent. I heard the gentle- Africa. lier, the gentleman from Illinois (Mr. woman from North Carolina (Mrs. I think the gentlewoman is also right RUSH), and to prevent the South Afri- CLAYTON) speak about that just a mo- to bring the attention that we need to can Government from importing cheap- ment ago, because there has to be the have more funds in order to do the er anti-AIDS drugs and other medi- infrastructure to deal and to help those work. We have been very fortunate in cines to respond to those who have the who have been afflicted with this dead- this country in the sense that it has virus. Now we must increase the effort ly disease. Ofttimes those who are in not spread as fast, but because we have to provide affordable, and the emphasis villages and tribes and other places do had efforts like those of the gentle- is on affordable for Africa and afford- not have the adequate infrastructure. woman and others across the country, able for those living in developing It is very important that we have and and because this Congress has been countries, affordable anti-AIDS drugs we look for funding to expand and to committed to it too. So we certainly do to all who need them. bring about the infrastructure that is not want to go back. We are moving in I challenge the pharmaceutical in- needed, especially in Africa and in the right direction to try to find both dustry, countries worldwide, and the India. the appropriate care and medication, United States to engage in a collective Local capacity must be developed but we also want to try to provide pre- effort to make available affordable nec- through education of the masses, the vention in all the communities. And to essary drugs to people affected by HIV search for a vaccine must be acceler- the extent that we pull that out, we and AIDS. It is important to form ated, and access to medicine must be will lose so much in that battle. these partnerships, because even if expanded as well. I again call on this Ms. MILLENDER-MCDONALD. And cheaper drugs are purchased by coun- administration to include $150 million may I please add that women now over tries, they still are out of reach for far in its fiscal year 2002 budget for the 50 we are finding by data, mostly Afri- too many. According to a recent Wash- World Bank AIDS Trust Fund. can American women, are contracting ington Post article entitled ‘‘A War I was told just a month ago, and now this HIV/AIDS. And it is so devastating Chest to Fight AIDS,’’ dramatic reduc- in looking at the budget, that the Ryan because they are fearful of disclosure, tions in price for anti-retroviral drugs

VerDate 02-MAY-2001 01:39 May 03, 2001 Jkt 089060 PO 00000 Frm 00117 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.160 pfrm02 PsN: H02PT1 H1852 CONGRESSIONAL RECORD — HOUSE May 2, 2001 are key to treatment; but the cost infection. At the social level, food inse- LEACH) and the gentlewoman from would be now $400 or $500 per person, curity is a major cause for vulner- California (Ms. LEE) which had to do some 10,000, which is a great reduction, ability to HIV. with the Marshall Plan. We joined the but there are many people, many peo- Reduced agriculture production is gentlewoman from California (Ms. WA- ple that do not make $400 per year and also one of the impacts of HIV. There- TERS) on debt relief, and now we are could not afford that. fore, the legislation, H.Con.Res. 102, moving forward with legislation that The United States must respond to Hunger to Harvest Resolution, A Dec- both of us are cosponsoring. this need by allocating more dollars ade of Concern for Africa, which has We have been on an journey. Even as than proposed by the Bush administra- been introduced in the House by the we discuss the African Growth and Op- tion in their current budget. So I want gentleman from Iowa (Mr. LEACH) and portunity Act, some two sessions ago, to challenge them to really put more the gentleman from New Jersey (Mr. or maybe the beginning of the 106th monies in there. PAYNE), I am also a cosponsor, should Congress, there were several amend- I am greatly encouraged about the be supported. This legislation will com- ments to that trade bill. We had indi- recent news that the world’s richest bat AIDS, provide education for all cated that we would not let that trade countries are close to committing bil- children, strengthen farming and small bill move through the Congress with- lions of dollars a year to fight against business, promote peace and good gov- out acknowledging if multinationals AIDS and other infectious diseases in ernment. This legislation has a pro- benefited from doing trade with Africa, parts of Africa, Asia, and the Caribbean posed commitment of $1 billion. that they needed to also engage in the where they have reached pandemic pro- The President and Congress must issues of survival, and that was to put portions. The World Bank and the keep this as a top priority. The phar- money aside. One of our pharma- United Nations would be involved in maceutical companies must be urged ceuticals did just that, put money setting up a global trust fund to help to provide needed drugs to Africa at aside to provide assistance. countries suffering from the HIV and substantially reduced prices and may But I think there are some key ele- AIDS pandemic. Again, the United want to consider making that as a do- ments that we need to focus on, and I States must be a vital part of this ef- nation. Drugs should be made available would like to share with you these ele- fort and the trust fund. not only to populations that can afford ments even though we may have al- it, but also the populations who des- ready had this come to our attention. b 2000 perately need it. This is a declaration This is a plague. It is a pandemic. I A global trust fund, coupled with ef- that no country has to fight this battle note my comments on my remarks say forts introduced by the gentlewoman alone, and no nation should stand by ‘‘biblical proportions’’ because we from California (Ms. WATERS) and the without offering help. think of the flood and we understand gentlewoman from California (Ms. I am pleased to be joined by my col- what that means. It has claimed 17 mil- LEE), that would provide debt relief for league, the gentlewoman from Texas lion lives in recent decades, and unlike these countries suffering greatest from (Ms. JACKSON-LEE) who has been a the Black Plague in the 14th century in HIV-AIDS, this indeed would help re- strong fighter and provides valuable Europe, the means to control AIDS are lieve that burden. More than 6,000 peo- leadership. known. We know prevention, and so we ple die every day in African nations Ms. JACKSON-LEE of Texas. Mr. understand that. from AIDS, yet their governments lack Speaker, I was pleased to join the gen- We are gratified that there has been sufficient financial resources to help tlewoman from North Carolina (Mrs. some compromise on the lawsuit in them or to relieve the suffering. CLAYTON) in our recent trip to Bot- South Africa, and we hope as South Af- In addition to the burden of repaying swana. Your leadership was evident rica begins to work steadily in its ef- the debt often incurred by unaccount- there as we both listened to the brief- fort to fight the devastation in South able government officials, these coun- ings and visited sites where the persons Africa, we all accept that poverty is tries also must pay user fees and inter- who had full-blown AIDS were being not good to help people get better. We est for these medications. These condi- cared for. We noted that they were in do know that HIV is a virus that in- tions require action by this Congress. great need of hospital personnel, cer- fects you and that it can result in full- The legislation introduced by my col- tainly more beds, but the individuals blown AIDS. leagues and myself is extremely impor- that were working were certainly On the other side of full-blown AIDS tant and has bipartisan support. It working with a spirit that they were there is the question of survival, how means economic relief for those coun- willing to fight the good fight. long and what kind of medication is tries. I think that is the spirit under which available to you. There needs to be a comprehensive we come to the floor today, because I So I think the focus should be to en- partnership waging a global campaign am sure as we debate and speak to this courage the administration to say it to prevent HIV and care for AIDS-af- issue on the floor of the House, maybe will not work and we will not be suc- fected patients. We are reminded of the Americans who may be much more in- cessful if we start and stop. If we un- complicated world surrounding global formed about HIV-AIDS and HIV the dermine the funding and the efforts AIDS. infection, and then full-blown AIDS, that have been made to provide sub-Sa- In developing countries like Africa, might think that we are speaking too haran Africa and other parts of Africa AIDS is one of several burdens or con- frequently and too often and all is well; with the infrastructure that they need, ditions that must be endured. In Afri- and they know this is a disease, but it the prescription drugs that they need, ca, often AIDS is in the midst of severe will not happen to them. the medical personnel, support system poverty, inadequate food, severe pov- I believe that it is important that the that they need, then we are going to erty, and lack of housing; therefore, administration realize that the mo- regress. the effect of AIDS has been and con- mentum that had been created, not in I would like to speak to the fact that tinues to make these problems worse. a partisan manner but in a bipartisan it is not just giving money to the con- It has posed the greatest threat to the manner under the leadership of the tinent, it is also looking at their prob- very generation of young people who past President, President Clinton, and lems. Botswana is a good example. are the most productive and are poised Sandy Thurman whom we all worked They are a small country and they are to take Africa into a brighter future with at the White House office. Her trying to work against this tide. They economically. task was not easy, working with Mem- have about a 39 percent infected popu- Those countries most affected by bers of Congress who had different per- lation, yet the president is very sen- AIDS are oftentimes the same ones suf- spectives, and then Congress working sitive to it. He speaks about it. He fering from hunger and food insecurity. with several perspectives, but we fi- takes this to the national bully pulpit, Nutrition and HIV operate in tandem nally came to the point of being able to and his constituencies are working at the level of both the individual and focus, I think, about a year or two ago, very hard. His medical director or the community. For many individuals, $100 million on the AIDS issue. And health director is working very hard. nutrition deficiency probably makes then, of course, we came forward with His physicians, his nurses are working people more susceptible to disease and a bill by the gentleman from Iowa (Mr. very hard.

VerDate 02-MAY-2001 01:39 May 03, 2001 Jkt 089060 PO 00000 Frm 00118 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.162 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1853 What they said to me when I went to a modest level of effort to address the spread about $10,000 a year. It is estimated that even one of their sites, infrastructure is im- of the disease. For these reasons, I have and if treatment costs were reduced to only $1,000 portant. In order to get the drugs from will continue to support additional funding for a year it would still be far too expensive for the airport, they need good roads. In medication to be made available to the mil- Third World countries. order to be able to monitor those who lions of poor around the world to fight the Drug therapies that have significantly ex- need to take the drugs, they need med- growing death toll attributed to HIV/AIDS. tended the lives of people living with HIV/AIDS ical personnel. This crisis is having a direct impact on the in the United States and other developed So our appropriations process should future viability of many sub-Saharan African countries could cost between $4,000 and look at how we can constructively col- communities. I recently witnessed the effects $20,000 per person per year in sub-Saharan laborate, the World Health Organiza- of HIV/AIDS while I was traveling with Con- Africa. tion, USAID, United Nations, and how gresswoman CLAYTON and other congres- In the United States, where the treatment we get the right kind of funding and we sional members in Botswana. This disease de- has become standard, the AIDS-related mor- do not want to see the funding under- prives nations of parents, workers, and teach- tality rate fell 75 percent in three years. mined and diminished. In particular, ers, destabilizing the social and economic The therapies, which use various combina- we will see all of the progress that we framework of the nation. tions of antiviral drugs that emerged in West- have made clearly go back to point The impact of the HIV/AIDS epidemic on ern countries five years ago have transformed zero. sub-Saharan Africa has been especially se- the health and future of AIDS patients who As I spoke to an infected person who vere. Since the beginning of the epidemic, took them. had been infected for 5 or 6 years, liv- over 80 percent of all AIDS deaths have oc- Since that time the gap in medical care be- ing with AIDS, he said it was a great curred in sub-Saharan Africa. By the end of tween rich and poor countries has grown tre- leap from when he was infected to now. 2000, there were an estimated 25.3 million mendously—our nation along with others Now his whole family knows of his con- people in sub-Saharan Africa living with HIV/ should be ashamed at this condition. dition. They are accepting and edu- AIDS—70 percent of the total number of I would like to commend Congresswoman cated about it, and they are preventing adults and 80 percent of the total number of CLAYTON for her efforts to offer a clear per- it from spreading. This is the kind of children infected worldwide. 3.8 million people spective on the HIV/AIDS epidemic both inter- information that can be enhanced by were newly infected in this region in 2000 nationally and domestically. the resources that we need. alone. There, over five thousand AIDS-related Now, more than ever, the leadership of the I indicated this was a pandemic. funerals occur per day. United States is needed in order to avert a Since the beginning of this, over 80 per- According to the UNAIDS Update report on tragedy on the Continent of Africa. Therefore, cent of all AIDS deaths have occurred HIV/AIDS infection rates, in many countries up I implore my fellow colleagues of the House to in sub-Saharan Africa. By the end of to 35 percent of all adults are infected with the commit the desperately needed funds for this 2000, there were an estimated 25.3 mil- disease. Nearly 4.2 million of South Africa’s 45 critical area. lion people in sub-Saharan Africa liv- million people are infected with the virus, more Many people have asked why this is impor- ing with HIV-AIDS, 70 percent of the than in any other country. The report also esti- tant to the United States. Aside from the hu- total number of adults and 80 percent mates that half of today’s teenage population manitarian perspective, HIV/AIDS has become of the total number of children in- in parts of Africa will perish from HIV/AIDS. a threat to our national security. HIV/AIDS un- fected, worldwide. The most vulnerable group being affected by dermines democracy and progress in many I do not want this to be seen as a con- HIV/AIDS are the women of Africa; their infec- African nations and the developing world. Left demnation of the continent. It is a tion rate is far greater than males. In sub-Sa- to its own course HIV/AIDS will lead to polit- wonderful continent. It is a continent haran Africa, 55 percent of all adults living ical instability and may result in civil wars, that is seeking after technology. It is with HIV are women, and this rate is expected which may affect the global balance of power seeking after education and building to continue to rise in countries where poverty, as well as economic viability of many African schools. I believe the gentlewoman poor health systems and limited resources for nations. In many of these instances, our mili- from North Carolina was excited about prevention and care are present. What fuels tary service personnel may be pressed into the opportunities for rural America in the spread of this disease? Ignorance, misin- service in order to defend American interest in collaborating in agriculture. It is a formation, unsafe cultural practices, apathetic any attempt to bring stability to those nations continent that is alive. leadership and neglect by nations who have that decline into civil strife because of the rav- the resources to fight the disease. Frankly, I think we should view this ages of HIV/AIDS. HIV/AIDS, like any epi- At least by the early 1990s, the world knew as the potential dynamic of the world. demic, cannot be contained in any specific the size of the coming catastrophe in Africa As I traveled to India with the Presi- and had the means available to slow its pro- geographical area. It does not discriminate be- dent, I believe last session, there was gression. Estimates from the World Health Or- tween rich and poor nations. Unfortunately, talk of its moving to India. There is ganization in 1990 and 1991 projected a case- when this dreaded disease came to our talk of its moving to China. Those are load, and eventual death toll, in the tens of shores, many believed that it was a calamity huge population centers. millions by 2000. only for homosexuals and drug users. But Mr. Speaker, I rise to join my democratic Less than 20 years after doctors first de- AIDS knows no boundaries. With globalization, colleague Representative EVA CLAYTON from scribed its symptoms, HIV has infected 57.9 we also must be conscious of the potential for North Carolina in expressing our concerns million people. So far, nearly 22 million have AIDS and other infectious diseases to be car- about the ravages of HIV/AIDS both abroad died; this is roughly the population along the ried across borders. and in our own country. The African continent Amtrak route from New York to Washington, The World Health Organization estimates has been particularly hard hit by this deadly DC. that 36.1 million children and adults worldwide disease. For this reason I am in favor of any Pharmaceutical corporation Bristol-Myers are living with HIV and/or AIDS. We must effort by this body to increase access to HIV/ has pledged $115 million towards fighting this work to bring this tragic situation under control AIDS treatment and education throughout the epidemic in sub-Saharan Africa. However, this using all means at our disposal as a nation, world, but especially on the continent of Africa. effort will only benefit just a few of the millions which includes acting in a leadership capacity HIV/AIDS has been declared the world’s of victims of HIV/AIDS in Africa. We must do to encourage other nations to join in an effort deadliest disease by the World Health Organi- more. to address this mammoth health crisis. zation. HIV/AIDS has become a plague on the I offer that the drug manufacturers and the I would ask my colleagues not to continue Continent of Africa of biblical proportions by Congressional Black Caucus should be on the to bury their minds under useless words, but claiming over 17 million lives in recent dec- same side in this effort. It is only a matter of to apply our collective resources to find solu- ades. Unlike the Black Plague in 14th century funding, and this Administration can take the tions to the problem of HIV/AIDS in Africa. Europe, which took half as many lives, the lead in gathering from the global community of Mrs. CLAYTON. Mr. Speaker, the means to control AIDS are known. I, too, re- wealthier nations. Congress and drug manu- gentlewoman is absolutely right. It is joice in the good news that the pharmaceutical facturers should make leading this effort a top in Russia, China and India, as you indi- companies have withdrawn their lawsuit in priority. We could see an end to unnecessary cated, so it is worldwide. In fact, there South Africa so that the South African govern- deaths and suffering by the close of this year are 33 million people who have died of ment can provide affordable HIV/AIDS drugs if we make the commitment to do so today. it, 33 million; 24 million of them were to those in need. However, most African and The cost of HIV/AIDS treatment for those in Africa. But HIV-AIDS is in Russia, other foreign governments make no more than living in the third world is estimated to be China, India and other parts of Asia.

VerDate 02-MAY-2001 01:39 May 03, 2001 Jkt 089060 PO 00000 Frm 00119 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.164 pfrm02 PsN: H02PT1 H1854 CONGRESSIONAL RECORD — HOUSE May 2, 2001 This is something, if we fail to contain like crime. We get crime, too. But sur- Some of this we can do with just it where it is most severe, you are prisingly for a number of reasons, it elbow grease, some of this we can do right, we will regret that later. has not been reported or people were with private sector contributions or Ms. JACKSON-LEE of Texas. That is not reporting themselves and all of a collaboration. The church or faith- why your special order this evening sudden the incidence is going up. based community, we are trying to get and this discussion is very important. I In fact, we represent, in eastern them involved and engaged, but we am hoping that people will not get North Carolina, a little more than my cannot afford to do this without Ryan tired of listening to how they can pro- district, though, I represent about 30 White treatment dollars for the whole tect themselves and how they can help percent of all the new HIV reported. We population here in the United States, by indicating to their Members of Con- represent only 12 percent of the popu- now I am over into the United States, gress and indicating to the administra- lation in my district. So the dispropor- that will continue treating problems, tion that this is a health problem of tion of the increase has been that peo- without the public hospital system such proportion that any slow-up ple are lax, they do not have the infor- where many of these people go because would be devastating. mation, they are not taking the pre- they are uninsured or underinsured. I do want to acknowledge that we caution, and also there is not this kind Nor can we do this without the sup- have had some success with our cor- of sophisticated infrastructure both in port of the funds that have been help- porations. I know that Bristol-Myers community and education and medical ing our various health agencies, in had put aside $115 million towards to bring the awareness. counseling money, prevention money fighting the epidemic, but we need We are now forming this partnership and education money. And then let me more of that along with the public in the community to bring to the at- just say and complement as I close, tention that in our local area, we do complement, if you will, the public dol- that we certainly cannot do this if we not have a pandemic, I am not trying lars. You can maximize them or match do not keep the Foreign Ops or the to scare, as you say, people to things with private dollars, but they also send funding either under HHS or Foreign that are not there, but we are alarming a signal about the fact that we are Ops that in particular goes to helping them of what things are there and the committed to the war. fight the pandemic internationally. It potential. And people are coming for- We did some of that when we went to is crucial. ward to say what their conditions are, the United Nations when, in actuality, I hope that we are not sounding like, how they are struggling, either they do the U.N. Security Council declared forgive me for saying this, a broken not have homes or once they know HIV-AIDS as a security risk for all of record. I hope that this is not taken as they have AIDS sometimes their fam- those very prominent world countries ‘‘we have heard this before.’’ I really ily puts them out. There are all kinds that are sitting around the U.N. Secu- do. Because I think both of us saw this of human tragedies and stories we firsthand. We heard those numbers. We rity Council. They were convinced that hear. as their military personnel travels We have a cultural issue to look on, were startled; were we not? Mrs. CLAYTON. We were very star- from place to place, if there is infec- we have an education issue and an tled. tion, the potential of the military be- awareness issue. The gentlewoman is Ms. JACKSON-LEE of Texas. They coming infected there and bringing it absolutely right. We have to focus on clearly are not because people are not back home was enormous. our local area as well. I think if we can think along those Ms. JACKSON-LEE of Texas. I think trying to overcome. Mrs. CLAYTON. I think we are all lines, we begin not to be isolated about it is important that we have this dis- sensitive when we raise a flag and say this issue. I know that when we were in cussion as it relates to our local areas. this is a problem, that people will want Botswana, one of the doctors said if the I was about to mention the fact that I number of people that were dying in had the United States Surgeon General to reject us because indeed we are re- sub-Saharan Africa were moved, it in my district the entire day this past peating. But we have to do what we would be comparable to the United Monday, April 30. We started about 7:30 have to do to get them to know. I am States, it would be almost like 13,000 in the morning and went straight confident that when people understand persons a day dying in America. through to different health areas, dif- the seriousness of it, they will respond So the challenge that we have is to ferent health facilities and different appropriately. I am hopeful that the not frighten people into inaction. The issues until about 5 o’clock. education and prevention will get peo- challenge that we have to the Presi- A part of our day was spent in focus- ple aware enough to take some things dent, although he has mandated a 4 ing on the question of HIV/AIDS in in their own hands. percent across-the-board cut, which I Houston. In the 18th Congressional Dis- I have also been startled by the in- think is going to be very difficult, and trict, in particular my district, showed crease of sexually transferred disease, that is why there is a lot of debate that 53 percent of the new AIDS cases which we thought had been abolished about this $1.5 million tax cut, I hear were African Americans; and I have the almost. That has been increasing. $1.2 trillion, it is certainly something highest number of those. This is not a Again that is something people can that troubles me, because I believe in condemnation. I hope we will step take responsibility for and control. giving the people back a return on away from condemning because there Education is a key in that. We need to their investment certainly. are a variety of sources of contacting get our churches involved. As you said, this disease, but the one thing that we the condemnation needs to be put in b 2015 knew was important, we focused on, perspective of educating people to take I for one was for a straight out $60 and I know that might be what you are responsibility now that they know billion tax cut this year, give it to peo- focusing on, is education and preven- they need to do these things. ple and infuse the economy, but I am tion and getting people tested. You and I both are interested in the really uncertain about whether we do I was very delighted that one of my whole issue of teenage pregnancy, this have a $5 trillion surplus, and what is constituents, a Mr. Ernie Jackson, put is related. If indeed we do not involve going to happen in this war against forward a very, very powerful presen- our young people very early in the HIV/AIDS. I just want to steer back to tation on how we were collaborating whole issue of abstinence and telling personal experience and that is in my with various community groups and them about a far more productive life congressional district. I do not know if various concerts, if you will, rallies to and giving them some opportunities to we have spoken about our own personal encourage people to come and be test- expand their life beyond being in an en- experiences, but I think we should. ed. We were up into the thousands. We vironment that is conducive to de- Mrs. CLAYTON. I did mention a lit- are going to continue. I might com- structive behavior. In addition to that, tle bit about the incidence increasing pliment one of our famous gospel sing- we also have to be honest about the in my district. I live in a rural district, ers, Yolanda Adams, did a gospel con- whole sexual education and protecting as the gentlewoman knows. She has cert. The tickets were given away free, young people and giving them informa- been to my district. Sometimes in a and the persons were to be tested. But tion that empowers them to know the rural area, we do not think what hap- really what it shows is that we will consequences of their behavior. When pens to cities happens to a rural area, have to be creative. they do that, again I have confidence,

VerDate 02-MAY-2001 01:39 May 03, 2001 Jkt 089060 PO 00000 Frm 00120 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.165 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1855 people will take information and use it The SPEAKER pro tempore (Mr. was an agreement that what is needed is a for their advantage and become em- CANTOR). Is there objection to the re- war chest and a war strategy against HIV/ powered because of it. quest of the gentlewoman from North AIDS. Information is power. We ought to Carolina? Money alone will not solve the problem—but spread the good news that there are There was no objection. it is a critical part of the solution. Total global things you can do. You can prevent it. Mrs. MORELLA. Mr. Speaker, I want to support for HIV/AIDS in developing countries Prevention is a key. In fact, the United thank my good friend and colleague Con- last year was under $1 billion, less than a third Nations report says that as bad as the gresswoman EVA CLAYTON for arranging this of the estimated need in Africa alone. For FY statistics are, this is someone address- special order on AIDS in Africa. We are be- 2001 Congress provided $315 million to ing the United Nations, all the African coming more and more aware that—as CNN USAID for global HIV/AIDS, a $115 million in- heads, we are encouraged because there reported, the African AIDS epidemic is ‘‘the crease over the previous year. USAID was in- are practices we know that will work. worst health calamity since the Middle Ages structed to provide $10 million for the Inter- They cited Brazil. They cited Uganda. and one likely to be the worse ever.’’ national AIDS Vaccine Initiative; $15 million for They cited some other areas where Statistics of the economic, social and per- research on microbicides and up to $20 million they are beginning to be part of a fab- sonal devastation of the disease in sub-Saha- for the International AIDS Trust Fund at the ric of showing that you can cut down ran Africa are staggering. World Bank. However, our forward progress the incidence of HIV. No cure for AIDS 23.3 million of the 33.6 million people with must continue. The creation of new drugs and but you can cut down the incidence of AIDS worldwide reside in Africa. vaccines cannot stand alone and we must HIV. 3.8 million of the 5.6 million new HIV infec- also continue to invest in the development of Those are the kinds of things we tions in 2000 occurred in Africa. public health infrastructure. It is estimated that want to bring awareness to. The part- African residents accounted for 85 percent it will take as much as $6 billion to address nership, the gentlewoman and I were of all AIDS-related deaths in 2000. the pandemic. struck, I know I was impressed by the 10 million of the 1.3 million children or- The United States is uniquely positioned to partnership that had been formed in phaned by AIDS live in Africa. lead the world in the prevention and eradi- Botswana with the President of Bot- Life expectancy in Africa is expected to cation of HIV/AIDS. Some believe that the swana taking the lead and serving as plummet from 59 years to 45 years between year 2000 was a turning point in the inter- the chair of that program. Yet al- 2005 and 2010. national response to the epidemic. We can be though those resources were on the Many experts attribute the spread of the encouraged by this trend; however, we must table, you are correct. We need the in- virus to a number of factors, including poverty, not become complacent. We must continue to frastructure. That is what we are work- ignorance, costly treatments, lack of sex edu- provide the drugs, and the care to lessen the ing toward. cation and unsafe sexual practices. Some pain and the suffering of millions of men, Ms. JACKSON-LEE of Texas. I am blame the transient nature of the workforce. women and children throughout the world who not sure whether or not the word is Many men, needing to leave their families to are infected with HIV. getting out of the great work that is drive trucks, work in mines or on construction The Global Health Act of 2001 which I being done in Botswana. Certainly projects, engage in sex with commercial sex strongly support will provide an additional Uganda should be cited. I just briefly workers of whom an estimated 90 percent are $275 million or HIV/AIDS, an additional $225 want to add that we need to include in HIV positive. In addition many men go untest- million for child survival, an additional $200 our discussion malaria and tuber- ed and unknowingly spread the virus. million for infectious diseases, an additional culosis. I was very gratified in the Many of those infected cannot afford the po- $200 million for international family planning meeting I had in my district. A number tent combination of HIV treatment available in services and an additional $100 million for ma- of us have signed a list, if you will, to Western countries. In some countries only 40 ternal health. organize, to see how more resources percent of the hospitals in some capital cities Mr. Speaker, the Global Health Act in con- can get into these American districts, have access to basic drugs. junction with a global AIDS trust fund must be these urban districts to help these While efforts are continuing to find an AIDS our goal. Confronting AIDS in Africa as well as communities. I think we should not vaccine, many experts fear that some African the rest of the world is one of the most impor- step away from the resources that are countries hardest hit by the epidemic lack the tant international humanitarian battles we face needed nationally. basic infrastructure to deliver the vaccine to today. Mrs. CLAYTON. I am glad the gentle- those most in need. woman mentioned malaria as well as More than 25 percent of working-aged f the tuberculosis, because there is data adults are estimated to carry the virus. Coun- RECESS that shows that if a person has HIV and ties have lost 10 to 20 years of life expectancy The SPEAKER pro tempore. Pursu- also contracts tuberculosis, that pulls due to this disease. ant to clause 12 of rule I, the Chair de- the immunity down further and the 80 percent of those dying from AIDS were clares the House in recess subject to likelihood of dying is increased. So you between ages 20 and 50, the bulk of the Afri- the call of the Chair. increase the chance of the person not can workforce. Accordingly (at 8 o’clock and 25 min- living long with HIV but in fact caus- 40 million children will be orphaned by the utes p.m.), the House stood in recess ing the death. Malaria is another of disease by 2010. Many of these children will subject to the call of the Chair. those infectious diseases. There are be forced to drop out of school to care for a treatments for malaria and there is dying parent or take care of younger children. f prevention for tuberculosis. That, we Children themselves are being infected with b 2338 can prevent. It does not cost a lot of the disease many through maternal-fetal trans- AFTER RECESS money. There are vaccines and things mission. While drugs like AZT have been we can do. We are hopeful that our col- proven effective in reducing the risk of an HIV The recess having expired, the House leagues and others who we know care positive mother infecting her newborn child, was called to order by the Speaker pro about this issue will help. I am also en- those drugs are too costly for most nations. tempore (Mr. DREIER) at 11 o’clock and couraged by the present administra- However, today unprecedented opportuni- 38 minutes p.m. tion. Colin Powell has reaffirmed that ties exist to improve health around the world. f this is a national security issue and The private sector, led by the Gates founda- that AIDS is going to be on their radar. tion, has provided additional resources for RECESS We just want to make sure that the health programs in developing countries. The SPEAKER pro tempore. Pursu- money will be there to support it. Last weekend, members of the World Bank, ant to clause 12 of rule I, the Chair de- GENERAL LEAVE the International Monetary Fund and the clares the House in recess subject to Ms. CLAYTON. Mr. Speaker, I ask Group of Seven met in Washington and articu- the call of the Chair, which will be ap- unanimous consent that all Members lated the fact that HIV/AIDS is no longer just proximately 7 a.m. may have 5 legislative days within a health problem but a global health develop- Accordingly (at 11 o’clock and 39 which to revise and extend their re- ment problem, threatening to reverse many of minutes p.m.), the House stood in re- marks on the subject of my special the development gains made over the past cess subject to the call of the Chair, at order today. half-century. What came out of these meetings approximately 7 a.m.

VerDate 02-MAY-2001 01:39 May 03, 2001 Jkt 089060 PO 00000 Frm 00121 Fmt 7634 Sfmt 0634 E:\CR\FM\K02MY7.167 pfrm02 PsN: H02PT1 H1856 CONGRESSIONAL RECORD — HOUSE May 2, 2001 EXECUTIVE COMMUNICATIONS, Authority, transmitting a copy of the the need for assistance and relief from this ETC. Authority’s statistical summary for Fiscal circumstance; to the Committee on Energy Year 2000, pursuant to 16 U.S.C. 831h(a); to and Commerce. Under clause 8 of rule XII, executive the Committee on Transportation and Infra- communications were taken from the 46. Also, a memorial of the Legislature of structure. the State of Washington, relative to Senate Speaker’s table and referred as follows: 1690. A letter from the Attorney General, Joint Memorial 8006 memorializing the U.S. 1680. A letter from the Secretary, Depart- transmitting the 2000 annual report on the Fish and Wildlife Service to apply for suffi- ment of Defense, transmitting a letter on the number of applications that were made for cient funding to construct the fish passage approved retirement of Lieutenant General orders and extension of orders approving modifications necessary at the Leavenworth Michael J. Byron, United States Marine electronic surveillance under the Foreign In- National Fish Hatchery, and that Congress Corps, and his advancement to the grade of telligence Surveillance Act, pursuant to 50 shall see fit to appropriate the necessary lieutenant general on the retired list; to the U.S.C. 1807; to the Committee on Intelligence funds; to the Committee on Resources. Committee on Armed Services. (Permanent Select). 1681. A letter from the Secretary, Depart- 1691. A letter from the General Counsel, 47. Also, a memorial of the Legislature of ment of Energy, transmitting the Depart- General Accounting Office, transmitting a the State of Kansas, relative to Senate Con- ment’s Annual Report for the Strategic Pe- report entitled, ‘‘Elections: The Scope of current Resolution 1611 memorializing the troleum Reserve, covering calendar year Congressional Authority in Election Admin- United States Congress to oppose any legis- 2000, pursuant to 42 U.S.C. 6245(a); to the istration’’; jointly to the Committees on lation which would nullify the legal rights of Committee on Energy and Commerce. House Administration and the Judiciary. the State of Kansas preserved by the Indian Gaming Regulatory Act and the interpreta- 1682. A letter from the Acting Assistant 1692. A letter from the Secretary, Depart- tion of such act by the decision of the Tenth Secretary for Legislative Affairs, Depart- ment of Health and Human Services, trans- Circuit Court of Appeals; to the Committee ment of State, transmitting the Depart- mitting a draft bill entitled, ‘‘HCFA Claims on Resources. ment’s annual report on international ter- Processing User Fee Act of 2001’’; jointly to rorism entitled, ‘‘Patterns of Global Ter- the Committees on Ways and Means and En- 48. Also, a memorial of the Senate of the rorism: 2000,’’ pursuant to 22 U.S.C. 2656f; to ergy and Commerce. State of Georgia, relative to Senate Resolu- the Committee on International Relations. tion 193 memorializing the United States 1683. A letter from the Acting Director, Of- f Congress to enact legislation reclassifying fice of Personnel Management, President’s MEMORIALS water well drilling vehicles and equipment Pay Agent, transmitting a report justifying as agricultural equipment under the federal the reasons for the extension of General Under clause 3 of rule XII, memorials commercial driver’s license laws; to the Schedule (GS) locality-based comparability were presented and referred as follows: Committee on Transportation and Infra- payments to non-GS categories of positions 41. The SPEAKER presented a memorial of structure. that are in more than one executive agency, the House of Representatives of the State of pursuant to 5 U.S.C. 5304(h)(2)(C); to the 49. Also, a memorial of the Legislature of Arkansas, relative to House Concurrent Res- Committee on Government Reform. the State of Washington, relative to House olution memorializing the United States 1684. A letter from the Director, Federal Joint Memorial 4002 memorializing the Congress to take all reasonable action nec- Emergency Management Agency, transmit- United States Congress to take action nec- essary to provide adequate and timely fund- ting the Agency’s Final Annual Performance essary to amend the 1946 Rescission Act and ing to the federal agencies responsible for Plan for FY 2002; to the Committee on Gov- honor our country’s moral obligation to re- ernment Reform. the treatment and restoration work on dam- store the Filipino veterans full United States 1685. A letter from the Director, Adminis- aged forestlands in Arkansas; to the Com- veterans status with the military benefits trative Office of the U.S. Courts, transmit- mittee on Agriculture. that they deserve; to the Committee on Vet- ting the annual report on applications for 42. Also, a memorial of the House of Rep- erans’ Affairs. resentatives of the State of Arkansas, rel- court orders made to federal and state courts 50. Also, a memorial of the General Assem- ative to House Concurrent Resolution memo- to permit the interception of wire, oral, or bly of the State of Ohio, relative to House rializing the United States Congress to re- electronic communications during calendar Concurrent Resolution 8 memorializing the view, with the goal of reducing, the paper- year 2000, pursuant to 18 U.S.C. 2519(3); to the United States Congress to take all actions work created by federal laws and regulations Committee on the Judiciary. that are necessary to stop the dumping of related to special education; to the Com- 1686. A letter from the President, The foreign steel in the United States, including mittee on Education and the Workforce. Foundation of the Federal Bar Association, the amendment of existing foreign trade 43. Also, a memorial of the Legislature of transmitting a copy of the Association’s laws or the enactment of new foreign trade the State of Maine, relative to Joint Resolu- audit report for the fiscal year ending Sep- law to address the crisis in the steel indus- tion memorializing the United States Con- tember 30, 2000, pursuant to 36 U.S.C. 1101(22) try; to the Committee on Ways and Means. and 1103; to the Committee on the Judiciary. gress to strengthen efforts to ensure that 1687. A letter from the Chairman, U.S. women are paid fairly for their work; to the 51. Also, a memorial of the Senate of the Naval Sea Cadet Corps, transmitting the an- Committee on Education and the Workforce. State of Mississippi, relative to Senate Reso- nual and financial reports for the year 2000, 44. Also, a memorial of the House of Rep- lution 15 memorializing the United States pursuant to Public Law 87–655; to the Com- resentatives of the State of Arkansas, rel- Congress to repeal the Federal Unified Gift mittee on the Judiciary. ative to House Concurrent Resolution memo- and Estate Tax effective immediately; to the 1688. A letter from the Chairman, Amtrak rializing the United States Congress to take Committee on Ways and Means. Reform Council, transmitting the Second all reasonable action to assure that prescrip- 52. Also, a memorial of the House of Rep- Annual Report entitled, ‘‘Intercity Rail Pas- tion drugs are available and affordable to all resentatives of the State of Arkansas, rel- senger Service In America: Status, Prob- citizens; to the Committee on Energy and ative to House Concurrent Resolution memo- lems, And Options For Reform,’’ pursuant to Commerce. rializing the United States Congress to sup- Public Law 105–134 section 203(h) (111 Stat. 45. Also, a memorial of the Senate of the port and enact the Railroad Retirement and 2581); to the Committee on Transportation State of Kansas, relative to Senate Resolu- Survivors Improvement Act in the 107th Con- and Infrastructure. tion 1845 memorializing the United States gress; jointly to the Committees on Trans- 1689. A letter from the Acting Vice Presi- Congress regarding the availability of pre- portation and Infrastructure and Ways and dent, Communications, Tennessee Valley scription drugs to individual consumers and Means.

VerDate 02-MAY-2001 02:03 May 03, 2001 Jkt 089060 PO 00000 Frm 00122 Fmt 7634 Sfmt 0634 E:\CR\FM\L02MY7.000 pfrm02 PsN: H02PT1 May 2, 2001 CONGRESSIONAL RECORD — HOUSE H1857 PETITIONS, ETC. states to give full faith and credit to war- for TANF cases; to the Committee on Ways rants issued by state civil courts against al- and Means. Under clause 3 of rule XII, petitions leged violators of state civil court child sup- 12. Also, a petition of a Citizen of Cody, and papers were laid on the clerk’s port orders and further authorizing and re- Wyoming, relative to petitioning the United desk and referred as follows: quiring state law enforcement and other ap- States Congress to redress the grievances of 9. The SPEAKER presented a petition of propriate state officials to execute such war- abuses of the Social Security Administration the Legislature of Rockland County, New rants and extradite such alleged violators to in concert with the Internal Revenue Serv- York, relative to Resolution No. 120 peti- the issuing jurisdictions; to the Committee ice; to the Committee on Ways and Means. tioning the United States Congress to enact on the Judiciary. 13. Also, a petition of the Legislature of legislation entitled the Federal Election 11. Also, a petition of the Legislature of Rockland County, New York, relative to Res- Modernization Act of 2001 to provide funding Rockland County, New York, relative to Res- olution No. 118 petitioning the United States for the replacement of Rockland County’s olution No. 76 petitioning the United States Congress and the New York State Legisla- voting machines with electronic voting ma- Congress to enact legislation permitting ture to enact legislation requiring health in- chines; to the Committee on House Adminis- state courts to require violators of child sup- surance companies to cover the purchase of tration. port orders due to private individuals where hearing aids and providing similar coverage 10. Also, a petition of the Legislature of no Temporary Assistance to Needy Families to government employees and to partici- Rockland County, New York, relative to Res- (TANF) is involved in the case to participate pants of the medicare programs; jointly to olution No. 77 petitioning the United States in work programs or other rehabilitative the Committees on Energy and Commerce, Congress to enact legislation requiring programs funded by the federal government Government Reform, and Ways and Means.

N O T I C E Incomplete record of House proceedings. Today’s House proceedings will be continued in the next issue of the Record.

VerDate 02-MAY-2001 02:03 May 03, 2001 Jkt 089060 PO 00000 Frm 00123 Fmt 7634 Sfmt 8633 E:\CR\FM\L02MY7.002 pfrm02 PsN: H02PT1 E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 107 CONGRESS, FIRST SESSION

Vol. 147 WASHINGTON, WEDNESDAY, MAY 2, 2001 No. 58 Senate The Senate met at 9:30 a.m. and was U.S. SENATE, BETTER EDUCATION FOR STU- called to order by the Honorable PRESIDENT PRO TEMPORE, DENTS AND TEACHERS ACT—MO- GEORGE ALLEN, a Senator from the Washington, DC, May 2, 2001. TION TO PROCEED Commonwealth of Virginia. To the Senate: Under the provisions of rule I, paragraph 3, The ACTING PRESIDENT pro tem- of the Standing Rules of the Senate, I hereby pore. Under the previous order, the PRAYER appoint the Honorable GEORGE ALLEN, a Sen- Senate will now resume postcloture The Chaplain, Dr. Lloyd John ator from the Commonwealth of Virginia, to consideration of the motion to proceed Ogilvie, offered the following prayer: perform the duties of the Chair. to S. 1. Holy God, before Whom we dare not STROM THURMOND, The ACTING PRESIDENT pro tem- swagger in self-sufficiency, we humbly President pro tempore. pore. The Senator from Wyoming. confess our need for You. We don’t Mr. ALLEN thereupon assumed the Mr. THOMAS. Mr. President, I would have all the answers; we are not always chair as Acting President pro tempore. like to have the opportunity to discuss right; and we are not perfect in our f the education bill for 10 minutes, judgments of people or what is best. We please. turn to You for wisdom, penetrating RESERVATION OF LEADER TIME The ACTING PRESIDENT pro tem- insight, and precise analysis. Bless the The ACTING PRESIDENT pro tem- pore. The Senator from Wyoming is so Senators to know that You give the pore. Under the previous order, leader- recognized for 10 minutes. day and You provide the way. Thank ship time is reserved. Mr. THOMAS. Mr. President, we You for their deep desire to know what come to the floor again today to con- f is right and do it, to discern Your best sider education. I think, unfortunately, for America, and to pledge their lives, RECOGNITION OF THE ACTING we are still talking about the their fortunes, and their sacred honor MAJORITY LEADER postcloture motion and have not yet to achieve it. We join with the psalm- The ACTING PRESIDENT pro tem- had the opportunity actually to move ist, claiming Your promise: ‘‘The hum- pore. The Senator from Wyoming. to the bill. We are hopeful there will be ble You guide in justice and the hum- some decisions made in the next hour, ble You teach Your way.’’—Based on f hour and a half, so that we can come to Psalm 25:9. May our fresh praise for SCHEDULE the bill. Your blessings be the antidote to any Clearly, there will be differences of Mr. THOMAS. Mr. President, today false pride. You alone are the source, our views with respect to this legisla- the Senate will resume the remaining security, peace, and hope because You tion. That is not a new idea. But we hours of the postcloture debate on the alone are our Lord and Saviour. Amen. need to get on with it. We need to come motion to proceed on the education to this Chamber and begin to make our f bill. arguments and, where there are dif- CHARGING OF TIME ferences of opinion, have amendments PLEDGE OF ALLEGIANCE I now ask unanimous consent that and move forward with them. The Honorable GEORGE ALLEN led the the time until 10:30 a.m. be equally di- I think most people agree that one of Pledge of Allegiance, as follows: vided in the usual form and that it be the major issues before us is education. I pledge allegiance to the Flag of the charged accordingly under rule XXII. Certainly there are different views as United States of America, and to the Repub- The ACTING PRESIDENT pro tem- to what the role of the Federal Govern- lic for which it stands, one nation under God, pore. Is there objection? ment is with regard to elementary and indivisible, with liberty and justice for all. Without objection, it is so ordered. secondary education. There are dif- Mr. THOMAS. The Senate is expected ferent views as to how much involve- f to begin full consideration of the bill ment the Federal Government ought to during today’s session. Therefore, have with respect to financing elemen- APPOINTMENT OF ACTING amendments will be offered, and votes tary and secondary education. PRESIDENT PRO TEMPORE on the amendments are expected. Mem- I think most of us believe that is a The PRESIDING OFFICER. The bers will be notified as the votes are primary function of the State and local clerk will please read a communication scheduled. Senators are encouraged to governments, and has been tradition- to the Senate from the President pro work with the bill managers if they in- ally over time, and I believe for good tempore (Mr. THURMOND). tend to offer amendments to the bill. reason. No. 1, we want the control The bill clerk read the following let- I thank my colleagues for their at- largely to remain there; indeed, it ter: tention. should remain there.

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

S4125

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VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4126 CONGRESSIONAL RECORD — SENATE May 2, 2001 With respect to money, even though, be discussed at some point during the ferent school districts those things are obviously, it is very important, money consideration of this bill. quite different. is not the only salvation for education. Accountability: Schools in a correc- I can take you to some schools in There needs to be policy changes. tive action category that fail to make Wyoming where class size is not the There needs to be more accountability, progress over 3 years would be required issue. I went to a one-room school in measurement of progress. Money to do something different—to change Wapiti, WY. Class size wasn’t the prob- alone—and we talked about this when I staff, to close the school, to do some- lem. Other things—technology, for ex- was in the Wyoming legislature—we thing that would show that progress ample, access to the Internet, doing know that money alone is not the only needs to be made. the kinds of technological things that salvation, that there need to also be We mentioned public school choice. may be in a particular school—are these other principles. But without That is there. We happen to have some much more important. So this idea is money, of course, those things cannot experience in my hometown of Casper, to have some flexibility and to allow be accomplished. WY, where they have started a number local school districts and the States to Since 1994, when the Republicans of charter schools. Casper, by the way, have, of course, the decisionmaking, took over Congress as the majority, is not a big city—about 50,000 people. It along with the accountability. We there has been a 50-percent increase in is our second largest city in Wyoming. can’t just expect to send taxpayers’ funding for education. We will hear They have charter schools so there are money out from the Federal level and about how the Republicans are reluc- some choices within the public school say: Do whatever you want; we don’t tant to fund education properly. The system so that parents can participate. care what happens to it. That is not fact is, this Republican Congress has In this bill there are opportunities for the point. The point is, use it for what funded it at a much higher rate than assistance in transportation for stu- you want with some accountability. was done previously by the Democrats dents of that kind and also some oppor- Other provisions: Of course, there are or, indeed, even suggested under the tunities for low production schools for going to be reading initiatives. Most of Clinton administration. It still is an people to be able to use some of the us do believe that the ability to read, issue, but the idea that Republicans Federal money for that. and read early, is certainly the first have not been generous with money is The key to education, most everyone prerequisite to becoming successful in just simply not factual. would agree, is teachers, quality teach- education. Bilingual education, of There are other issues, however, that ers. We have excellent teachers gen- course, is one of the real keys to many are really key to what we want to do erally, and teachers try very hard to do of the students who have difficulty in with S. 1. First, it is symbolic that it is their things. I admire teachers very meeting standards, and so is literacy in S. 1. That indicates that as we came much, particularly since my wife is one English. So there are going to be a into this Congress, education was our in a public high school. On the other number of these things. highest priority. So there we are. hand, we are going to find a time soon School safety: Obviously, we have There are a number of things that when there will be lots of teachers re- had lots of bad experiences in the last are very important. One is account- tiring and running into that, whatever several years in terms of school safety. ability. Title I of this bill indicates profession it is, whether it is nurses or The Columbine incident sort of re- that when schools fail to adequately teachers. We are going to need a great molded our ideas about what we do have progress, they will receive tech- number of new teachers, and there there in terms of drug prevention and nical assistance from the Federal Gov- needs to be incentives for teachers to in terms of other kinds of safety. That ernment. In order to make sure there is be trained. There needs to be some op- will also be dealt with in this bill. So progress, of course, there has to be portunities for teachers to have con- there are just really lots of things that some testing. tinuing education certainly and to do are very helpful and things on which Clearly, there are different views some things, to do some things particu- we need to move forward. about testing: Whether it ought to be larly in specifics. If they are teaching I am afraid we are going to find our- mandated, whether it ought to be done math, if they are teaching science, selves, before this week is over, dealing only by the State’s decision. I happen there ought to be people who have real- with the budget. I believe there is to believe the States ought to be the ly good backgrounds in that. going to be some agreement there. So ones to decide how it is done. But there The technology, of course, is one of we continue to put off this very impor- needs to be testing if you are going to the things for which we will be search- tant issue, and we need to move for- have Federal funding. If you are going ing—opportunities to do that. ward with it. to have the kind of mobility we have Here we are, talking about account- I mentioned the expenditures. I wish where young people are going to school ability. We are talking about improv- I had some of those charts here. It is in Utah and end up working in New ing teaching opportunities, improving really interesting, as you look at a York, there needs to be some measure the skills of teachers so they can be, chart on expenditures versus reading of whether or not those educational op- indeed, more effective in the teaching scores that we have now, that expendi- portunities are going to be similar so they do. tures go up fairly dramatically, up to that you can deal with the mobility we One of the areas, of course, is going about an $8,500 per pupil expenditure in all have. to be flexibility. This is always a con- this country. But 12th grade reading, So under this title, there would be troversial thing with Federal money. 8th grade reading, 4th grade reading technical assistance available for With Federal money, do there have to stay very constant and, indeed, edge schools where the progress was not up be regulations that go with it to use it down a little bit in the 4th grade cat- to the average and certainly not mak- this way or the highway? No, it doesn’t egory. ing advancement. If the school failed need to be that way. It can be much So again, as we said, money is not to have adequate progress in the sec- more flexible. I suppose in many the only element. Indeed, it may not be ond year, it would be placed in another things, but in education there is such a the most important element in terms category of corrective action. Students difference between the needs in small of turning around where we are with in that school then would begin to be towns of Wyoming or Utah as opposed respect to making improvements in our able to transfer to other public schools. to downtown New York or Philadel- educational direction. This is one of the things where you phia. In many of the schools, that is So these are the things we have measure performance and then give one of the controversies we have had talked about; these are the things that some kind of relief when, in fact, per- over time. With Federal money, ac- are before us. I don’t find it particu- formance is not being exhibited. This cording to the last administration, you larly new that we have different views does not, at the present time, include had to use it for smaller class size. on how to do this. That is what this the private school options. Some argue, That is the only thing you can use it Senate is all about—to bring together of course, that there ought to be for, or you use it for construction of different views, to bring together dif- vouchers for private schools. Again, school buildings, and that is all you ferent representations of the needs of there is a very legitimate difference of can use it for. Both of those, of course, our individual constituencies, and yet view as to that issue. I am sure it will are very important issues, but in dif- to blend them in with the overall need

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4127 for the national values of education this law, we are not just changing let- Those are my five principles as we and what our role is in causing those ters on a page; we are changing the law begin this debate on education policy. things to be even better. that helps make our schools more Next, I want to outline some of the This morning we will be talking in equal, more fair, and more successful concerns I have at the start of this de- fairly general terms about the general- for students across the country. I take bate. First of all, so far, I do not see a ities that are in this bill, which has re- this responsibility very seriously. commitment from this administration ceived a great deal of attention and ef- The Senate may only debate edu- to provide the resources so all students fort. It is a good one. It is generally cation for a few weeks, but what we de- can reach high standards. We can’t just supported, of course, by the adminis- cide will be felt in classrooms across tell students they have to meet certain tration, by the President who, by the the country for a decade or more. So goals without giving them the support way, had education as his No. 1 issue in let’s make sure we do this right. they need to get there. Just telling stu- his campaign. I have been very proud of As we begin this debate, there are dents they have to pass a test or their the President, as a matter of fact, as some things about which all of us school will be reconstituted won’t help someone who went out and talked agree. We all agree that we want every a single student to learn to read or about issues, put priorities on issues in child to reach his or her full potential. write. his campaign, laid them before the peo- We all agree that taxpayer dollars So far, this administration has been ple before the election, and now is com- should be used for efforts that we know very vocal about saying it will punish mitted to doing things he said he was work. We all agree that we can make a schools that don’t improve. But it has going to do. That is as it should be. difference at the Federal level with been way too quiet on how they will I hope we are able to move forward what we do. Otherwise, this debate provide the resources so students can and have an opportunity to debate would not be so heated. We know that improve. Imposing tests and punish- these things and come to a favorable Federal support is an important part of ments without resources will not help conclusion. every child’s education. students to learn. It will just punish I suggest the absence of a quorum. Finally, we all want to be proud of them. The ACTING PRESIDENT pro tem- America’s schools. Today, there is a lot I have a second concern, and this is pore. The clerk will call the roll. to be proud of. Every day, we hear sto- about the President’s testing plan. As The bill clerk proceeded to call the ries about the progress kids are mak- we all know there is a lot of discussion roll. ing. Every day, we talk to leaders who about testing and whether or not it Mrs. MURRAY. Mr. President, I ask were inspired by teachers in our public works. That is a debate we ought to unanimous consent that the order for schools—teachers who helped them have and I expect we will. But one the quorum call be rescinded. succeed. I know I would not be here thing is clear: We cannot require The PRESIDING OFFICER. Without today without great public school States to conduct these expensive tests objection, it is so ordered. teachers. on a yearly basis without also giving The truth is, we have made a lot of Mr. THOMAS. Mr. President, I ask the States the resources to do what we progress as a country in improving unanimous consent that following the are requiring. education. This is an opportunity to Senator from Washington, the Senator As a former school board member and build on that progress. I have been in from Idaho be able to speak. a State senator, I can tell you what classrooms where teachers are excited The PRESIDING OFFICER. Without will happen. President Bush will send and where the kids’ eyes are bright and objection, it is so ordered. an unfunded mandate to the States re- Mrs. MURRAY. Mr. President, as the their minds are eager to learn. In Washington State, our teachers, quiring them to test students every Senate gets ready to update our Na- parents, educators, and businesses have year. The States and the districts and tion’s Federal education policy, I want put together annual assessments that the schools will have to take money— to talk this morning about the impor- are changing the way we think about some estimate the cost at $7 billion— tance of the education debate, some of education and expanding our possibili- away from things such as hiring teach- the issues that we all agree on, the ties. We are working on this bill be- ers and developing curriculums to pay principles that guide my decision, and cause we know that States and local for the tests. That is going to end up a few concerns I have as we look at this school districts want a Federal part- hurting students. bill coming before us. ner, and we are excited because we If President Bush doesn’t pay for the Since 1965, the Elementary and Sec- know that being a responsible partner tests he is imposing, students will get ondary Education Act has defined how can help make sure great things hap- hurt. I know a lot of my friends on the the Federal Government helps students pen in every school. Republican side are very concerned across the country. In America, we be- Because we will be talking about a about unfunded mandates from the lieve that no matter where you are lot of different issues, I want to outline Federal government to the States, so I born, no matter who you are or where some of the principles I have developed hope they will follow through by ensur- you come from, and no matter whether to make sure we are doing what is ing that we fund the tests that we are your parents are rich or poor, every right for our students. demanding. child deserves an equal chance to suc- First of all, we have to invest in the There is another important question ceed. methods we know work. I have been related to these new Federal tests. How This law, the ESEA, puts that prin- saying this for years. It is critical as are we going to use the results of these ciple into practice. Forty years ago, we update our Nation’s education pol- tests? If we use test results to punish, many students did not get the help icy. we are not helping students. We should that they needed. Many lived in poor or Second, we have to protect disadvan- use those test results for what they rural areas that didn’t have the tax taged students and make sure they get are—a tool—to show us what areas base to support them. Many were dis- the extra help and support they need. need improvement. And we cannot stop criminated against and many were left Third, we have to make sure that there. We need to invest in the areas behind because they had special needs. public taxpayer dollars stay in public that need improvement. That is the In 1965, Congress passed the historic schools. right way to use tests: to make schools Elementary and Secondary Education Fourth, we have to help meet the na- better and to allow students to learn. Act to fix those problems, providing a tional education goals we are com- Finally, as I look at this proposed safety net for disadvantaged students, mitted to, whether it is making sure bill, I see gaping holes. The bill leaves a stepping stone to help all students that every child can read, making sure out dedicated funding for class size re- succeed, and a way to help us meet our every child gets the skills they need for duction, for school construction, for education goals. tomorrow’s workforce, or making sure teacher recruitment, and for school li- During the Cold War, ESEA helped us every child attends a school where they braries. We know these efforts have focus on building skills in math and are safe. made a very positive difference for stu- science. Today, with our high-tech Finally, we have to set high stand- dents across this country. economy, ESEA is helping students ards and provide the resources so all Amendments are going to be offered, learn to use technology. As we update students can meet them. as we work our way through this bill,

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4128 CONGRESSIONAL RECORD — SENATE May 2, 2001 to make sure it funds those important what Americans have been asking for a levels of measurement, and most as- efforts. I plan to introduce one myself long time. suredly there are levels of acceptance. on class size. I look forward to sup- We have underperforming schools, How do you determine an underper- porting a number of the others. and when we have underperforming forming school? Clearly, that is deter- So as the Senate gets ready to begin schools we have children who have not mined by the child in that school who this very important debate, I hope we been provided the opportunity to ad- isn’t performing at the required level. will all remember that what we do here vance as rapidly as they are capable of All of these are components of what will have a real impact on students for doing. we work to accomplish in the reauthor- years to come. We have an opportunity Clearly, if schools are underper- ization of this most important public to bring success to every student forming, then children are underper- law for our country. I am pleased to be across the country, to support the ef- forming. And if they are not able to part of it, involved with it, to work forts that are working, and to continue compete, then the likelihood is they with my colleagues who spend most of our role as an important partner in run the risk of underperforming for the their time in this area and understand educational excellence. remainder of their lives. it a great deal better than I. I am Students, parents, and teachers are With the reauthorization of this act pleased the Senate is now focused on looking for support and for leadership, and its modernization, we are creating what really is one of the most impor- and I am going to do everything I can levels of accountability that can be- tant issues we will deal with this year. to make sure we provide it. come the cornerstone of the advance- I am proud to have a President who has I yield the floor and suggest the ab- ment of the quality of education in our made education a priority and who has sence of a quorum. country, the kind of accountability said and now is backing up not only in The ACTING PRESIDENT pro tem- that will bring constant reform to the words but actions that in his tenure as pore. The clerk will call the roll. educational system. President of our country no child will The legislative clerk proceeded to Key to accountability is the com- be left behind. call the roll. monsense notion that we should not I yield the floor and suggest the ab- Mr. CRAIG. Mr. President, I ask allow Federal dollars to follow failure, sence of a quorum. unanimous consent that the order for but clearly we have. If we used the con- The PRESIDING OFFICER (Mr. EN- the quorum call be rescinded. cept that the current system needed SIGN). The clerk will call the roll. The ACTING PRESIDENT pro tem- more money and the current system, in The assistant legislative clerk pro- pore. Without objection, it is so or- some instances, is failing, that is ex- ceeded to call the roll. dered. The Senator from Idaho. actly what has been going on. We were Mr. THOMAS. Mr. President, I ask Mr. CRAIG. Mr. President, as you financing failure without any level of unanimous consent that the order for know and certainly now as our country measurement that would determine the quorum call be rescinded. knows, for this week and until we have what that failure was and how it could The PRESIDING OFFICER. Without concluded, we are focused on the reau- be replaced. objection, it is so ordered. thorization of the Elementary and Sec- Accountability is, without question, Mr. THOMAS. Mr. President, we had ondary Education Act and the impor- going to be the greatest key factor in an hour of postcloture debate. That tant role it plays in the future edu- what we do with the reauthorization time has expired. I ask unanimous con- cation of our young people. and the modernization of this act: ac- sent that the next hour be equally di- By overwhelming majorities, Ameri- countability in the schools and allow- vided and the time be counted under cans have said time and again that ing the parents an element of measure- the provision of rule XXII. they want education in this Nation im- ment, working to improve those The PRESIDING OFFICER. Without proved. We cannot improve education schools that are underperformers, but objection, it is so ordered. by merely throwing money at the prob- at some point if the system does not Mr. THOMAS. Mr. President, there lem. We have tried that for a long respond, giving the parents the flexi- are efforts being made to come to some time. Yet the performance of our bility to move that child elsewhere. agreement to bring to the floor. I young people against the performance Empowering parents and children in thank the Chair. I suggest the absence of other young people around the world the educational system will, by its of a quorum. simply does not rate as it should. very character, push it toward reform. The PRESIDING OFFICER. The Our educational system does not It is that kind of dynamic we must clerk will call the roll. need money alone, and that is why we demand of our public education system The assistant legislative clerk pro- have spent the last several years look- in this country. To strengthen, to as- ceeded to call the roll. ing at the concepts that fall together sure that a free society always has ac- Mr. BURNS. Mr. President, I ask to create a dynamic education program cess to a public learning system has unanimous consent that the order for of the kind that is so important for the been the strength of our country his- the quorum call be rescinded. future of our country and our country’s torically and can continue to be our The PRESIDING OFFICER. Without young people. strength. As we work in this area of objection, it is so ordered. Increased funding alone, as I have education and work to reauthorize this Mr. BURNS. Mr. President, we mentioned, will not help. Do we need legislation, that is clearly part of the opened up the debate on education. money? Of course we do, and with this goal toward passage of this act. And, of course, they tell us that we bill, there is a substantial amount of I am pleased to be a part of it. I will have an agreement in principle. So at more money authorized. What we real- come back to the Chamber over the this point, for all who believe that it is ly need to look at is the tremendous course of the next several weeks as we good for kids, let’s go on and do it. We bureaucracy of education that has debate this issue to participate with are hearing a lot of words with regard grown up over the years in the public my colleagues in explaining to the to policy and money, and basically systems in our country and does that, American people what we are attempt- money will not be a part of this debate in fact, function in the dynamic ways ing to do, what role the Federal Gov- and should not be a part of this debate. that are necessary to stay on the edge ernment can play with the States and There is a good reason for that. of educating in a contemporary soci- local communities. We hear stories—some of them are ety. At the same time, we need to deal I and others believe that the bulk of not too good—about the condition of with all young people and all levels of the educational responsibility does re- some of our schools. There is no doubt learning that are so necessary to have side with the State and the local com- about it; we see some schools in very a thorough and responsible system. munities. The funding, the tax base, poor condition. Our President has said time and the local school districts, the parents— I represent the State of Montana. again over the course of the last year that is where the greatest responsi- Some of its schools are on our Indian that he wants to leave no child behind. bility lies. With help, we set standards reservations, and some of our Native Neither do we. The combination of our that are flexible, that fit States, that Americans are under crowded condi- work, with the leadership of this new States can participate in, so it is not tions. In fact, there are a couple of President, I believe, can accomplish one Federal-size-fits-all, but there are schools that we are going to replace to

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4129 help them get into new facilities next sound argument is when we relate to mon sense because what we need to do year; now young people are going to how things are in our own neighbor- now is restore the accountability in class in the janitor’s closet. hood. There was a time when you could and the support for our public edu- Then we like to compare the good old pass a school bond, and it was nothing cation system because it is the corner- days of our education. Sometimes I to it. If you needed more money for stone of this free society. hear it said, in fact, that it is a wonder buildings—brick and mortar—if you Do not test the young people for we as a nation have accomplished what needed more teachers, if you needed reading. Do not test them for math. we have because of our educational sys- more money to run the school, a school Test them on history because, I will tem. I don’t want to talk about that. bond was fairly easy to pass because tell you, that is where the seed of free- We should be talking about the suc- everybody supported the local schools dom remains in a society to be perpet- cesses of our system and the successes and what they were doing. uated for future generations. of yesteryear in education. I look at my own neighborhood and Mr. President, in accordance with I went to a rural school. It was a the support of the teachers and the rule XXII, I ask unanimous consent country school with one room. I think schools. It is still there. But there is that the remaining time under my con- it ranged in size anywhere from 18 to 25 something missing because we have trol be yielded to the Senator from or 26 kids. The eighth graders taught now experienced a history over the last Texas, Mrs. HUTCHISON. the first graders how to read. We only few years of school bonds going down, The PRESIDING OFFICER. Is there had one teacher. voted down, to where it takes a real ef- objection? All of us could tell stories like that fort—a real public relations effort—to Without objection, it is so ordered. about our life as a young person in a pass just an ordinary school bond. The Senator from New Hampshire. rural setting. We could talk about There is a given in this debate: Any- Mr. GREGG. I ask the Senator from that. We could also say how we grad- time education comes before this body, Texas to yield me such time as I may uated from a smaller high school. it is sure to attract a great deal of at- consume. There were only 29 students in my tention. I do not know of a soul in the Mrs. HUTCHISON. Mr. President, I graduating class. We could talk about public sector or in this Chamber who yield the remainder of the time on the all the things we missed in our edu- does not have an opinion on education, Republican side to the Senator from cation, but we don’t. We like to talk and they will readily give it to you. New Hampshire. about our accomplishments. I have also found some other things The PRESIDING OFFICER. Twelve When we hear the debate in this to be true. Everybody knows how to and a half minutes is yielded to the Chamber, do we, as policymakers, have run a school. That is another given. Senator from New Hampshire. all of the answers to the challenges of But I also have found that very few Mr. GREGG. I thank the Senator public education and what it faces look at the record and can think their from Texas. today? No, I do not think we do. We way through the idea that we have ar- I congratulate the Senator from might think we do. We need to face the rived at a time in the history of the Montana for his excellent statement on fact that we now come to a subject evolution of public education and real- how we should approach educational where success will be based on how we ize that systemic reform is now needed. reform—especially on his emphasis for make choices. That is the basis for the I am no different than most in this the need for reform, not the need to debate. body. One could say: My schooling was put more dollars into education to fol- The Founding Fathers of this coun- sufficient for me; therefore, it would be low dollars that have already failed in try placed a high priority on public good enough for our children. But we helping our children receive a good education. They did it for a simple rea- know that is not true. If we did that, education. son. We cannot be a free society and then we would be stuck in low gear. I want to continue this discussion on understand the Constitution unless we We have to look at this. Again, we education which was started so effec- do it with educated minds. should not be talking money. We tively by the Senator from Montana. I It is remarkable when you look at should be talking accountability. If we want to review very quickly where we the documentation of the two great are to have great support for public are. wars fought on this continent, in our education, we have to have account- The President of the United States country. If you look at the Revolu- ability. Everybody understands that. has made education his No. 1 priority. tionary War, very small snippets of his- Accountability means testing. It The Senate has aggressively pursued tory are found in our history books be- means the product that you are pro- trying to address the issues which the cause most of the people who partici- ducing has to be a good one. Testing is President has raised. Specifically, we pated in the Revolutionary War at the only way to do that. You can have have tried to adjust, with the bill that ground level were illiterate. They a big argument about who is going to is before us today, the role of the Fed- could not read and they could not give the test and all that. I still say it eral Government in education. write. should be left to the States. Testing The Federal Government has tradi- Then almost 100 years later—not also gives us, and public educators, the tionally taken small parts of education quite, about 90—we had the Civil War, information needed to develop the and focused on them—whether it is the of which we find documentation and sound support that public education needs of special students or, in the case letters that soldiers wrote home to should have. of this bill, the needs of students who their folks and to their loved ones, to We should be supporting the pro- come from lower income families. We their mothers and to their brothers and grams that work, reduce the bureauc- have, as was pointed out so effectively sisters, to their families and their racy, and give increased flexibility to by the Senator from Montana, not been friends. From those letters we piece to- those who run our schools. very successful in our goal. gether a complete history of the Civil I leave you with a closing thought. Our goal was to increase the edu- War of this country. The Founding Fa- Money is not the answer. You will see cational capacity and achievement of thers said that public education is a many charts throughout the debate. As kids from low-income families. We must. We have to have a high degree of this chart shows, we have increased have spent $120 billion trying to do literacy in this country if we are to spending in education drastically. that, and in fact during the decade of maintain a free and responsible soci- Look at the blue line on the chart. It the 1990s we spent the majority of that ety. goes right on up. That shows how we money. Yet the educational scores and Ever since those days, we have seen have increased spending on education. educational proficiency of kids from strong public support for public edu- But look where the achievement line is low-income families have actually de- cation. In fact, there has been overall on the chart. Have we improved read- teriorated, according to the reviews support for a strong public school sys- ing and math? No. So money is not the that have looked at it, or remained the tem throughout my life—until, I would answer. Systemic reform is what is same, at best. say, maybe the last 10 years. needed. Unfortunately, the child who comes What happened along the way? And I I am looking forward to the debate. from a low-income family today reads say the only way we make a good, But I think we have to use some com- at two grade levels below the children

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4130 CONGRESSIONAL RECORD — SENATE May 2, 2001 from other families in the same class- from Massachusetts who I see just local school district, the principal spe- room in the fourth grade. That is true came to the Chamber. He has been such cifically, working with parents, work- right through the school system. That a major player in this issue for so ing with the teachers in the class, who is true of math also. It is also true of many years. can understand whether they need the graduation rates where there has I have been picking out certain sec- more teachers to teach or whether they been a distinct dropoff in graduation tions of this bill to talk about to try to need their teachers who are teaching to rates of kids who come from low-in- give people some exposure they might be better educated on the subject mat- come families and in their proficiency not have otherwise gotten because the ter, or whether they have some really upon graduation. So we have not suc- bill is so big and complex. There are a good teachers in their classrooms who ceeded in addressing the needs of kids lot of interesting issues in it. I am try- are being attracted to work outside the from low-income families even though ing to focus on them in sequence just school system and they are afraid they we have spent a huge amount of for the edification of my colleagues. are going to lose them because they money. Let me focus on one function today, can’t pay them enough, or whether The President has suggested: Let’s and that is what we do relative to those teachers need technical assist- stop throwing money at the problem. teachers, how we try to assist teachers. ance in order to communicate better to Although he is significantly increasing There has been a debate raging in the their students. We don’t know that. We the funds, he is suggesting: Let’s first Congress for the last few years which don’t know any of those factors. look at reforming the issue so we actu- was energized, in great part, by Presi- Unfortunately, the original program, ally give these kids from lower income dent Clinton’s initiative called class- as has been put forward and may be put families more of a chance in America room size. Essentially his proposal was: forward as an amendment on the floor, to be academically competitive with Let’s put a lot of money out there to was, we are going to tell local school their peers and, therefore, to have the try to help schools hire more teachers districts: You must, in order to get opportunity of the American dream. because we know there is a teacher these dollars, hire more teachers. The American dream today depends on shortage. That is a given. There is a There are a lot of school districts in being educated and being able to com- huge shortage in this country. His pro- the country that don’t need more pete in a technological society. posal was: Let’s create a categorical teachers, but they do need the teachers He has suggested four basic themes: program which says, here is a bunch of they have to be better educated. They First, that we change the Federal pro- money, $1.4 billion; you can use that, need to be able to retain the good grams from being focused on bureauc- school systems, to hire more teachers teachers they have or they need more racy to being focused on the children. and to try to reduce class size down to technology for those teachers. It is called the child-centered ap- a ratio of 18 to 1. What we have done in this bill is proach: Second is that we give local This was an interesting proposal, and something called the Teacher Em- teachers and parents and principals it was in some ways appropriate, but powerment Act. We have merged the more flexibility, which is absolutely unfortunately the execution of it was two major funding streams for teach- critical as to how they educate the not effective. ing—Eisenhower grants and classroom child, especially the child from low-in- We have in this bill tried to reform size grants—and we have said: Here is a come family. They know what they that proposal and make it more effec- large pool of money. Last year it would need. We here in Washington don’t tive. First, you should understand that have been $2.3 billion appropriated and know what they need. We can’t cat- teacher ratio is not necessarily the $3.2 billion authorized. We have merged egorize programs so that we are going function of a better education. Much those two streams of money, and we to help a child. It is much more impor- like putting more money into the prob- are saying to local school districts: tant that we give the principal and the lem, reducing the number of kids in a You can use this money to hire more teacher and the parent more capacity classroom does not necessarily improve teachers. If you have a classroom size to control these dollars and have some education. If you put fewer kids in a issue, if you have a teacher need, you decision processes which will lead to classroom with a teacher who is incom- can use this money to hire teachers. better education. So he has suggested petent, the kids still aren’t going to But you don’t have to hire teachers. more flexibility. learn any better. The competency of You can also use this money to pay Third, however, in exchange for the the teacher, the teacher’s ability to ac- your good teachers more, or you can flexibility, the President has said he tually teach and to be an exciting use this money to bring your teachers expects and we should expect academic teacher who excites the minds and in- up to speed in the disciplines in which achievement. That means bringing the terests of the children with whom they they are teaching, or you can use this child up to the level of being competi- are dealing, is the key category as to a money to give them the technical sup- tive with their peers; in fact, doing teacher’s capacity to improve that port they need in order to teach their even better than their peers in some classroom. courses better. programs. And fourth, the President That requires teachers who are well We are giving the local school dis- has suggested that the academic informed, teachers who understand and tricts a great deal more flexibility with achievement level be made account- are teaching subject matters in which these funds. We are actually giving able; in other words, that we not allow they have been trained, teachers who them a lot more funds, but we are also the low-income child to be left behind are up to date with the latest tech- giving them more flexibility. Rather because we norm them in with every nology, if they happen to be in the than a specific top-down, Washington- other child. We basically put them in science area, and the latest develop- knows-best approach, we are essen- with the law of averages, and by put- ments in the disciplines in which they tially saying: You, the local school dis- ting them there, we actually ignore are teaching, teachers who have had tricts, make the decisions as to what them and lose them in the process. the chance to maybe go to an extra you need in the teaching area. These His proposals make a great deal of course or an extra workshop to learn to funds are dedicated to help you as a sense as to fundamentally reforming teach better. We in Washington cannot supplement, essentially, to your local the system, giving the system more unilaterally decide whether a teacher efforts in teaching. And as a result, flexibility, making it more child cen- in Epping, NH, or Cheyenne, WY, or hopefully, the teaching in that school tered, expecting more academic ac- San Francisco, CA, is going to be a district will better serve the students countability, and getting account- good teacher or a bad teacher. We can’t in that school district. ability of what is happening in our sys- even decide whether the classroom size I pick out this part of the bill to talk tem in exchange for more money. in that community is the right ratio. about because I think it reflects the These are positive steps, and that is It should be noted that the vast ma- overall thrust of this bill, which I be- positive reform. It is reflected in the jority of the States in the country al- lieve is so positive in many ways. I bill that underlies this legislation and ready have a classroom ratio which is have reservations about certain sec- hopefully will be reflected in an agree- below 18 to 1. I believe 41 States al- tions of the bill, but the overall thrust ment we can work out and we are at- ready have met that ratio. But that of the bill is in the right direction. tempting to work out with the Senator really isn’t the issue. It really is the This section on teaching reflects that.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4131 This Teacher Empowerment Act is I want to just take a few moments to mation on how schools have progressed essentially saying: OK, local school dis- go over the basic elements of the Ele- in relation to their State standards and tricts, we understand you have a prob- mentary and Secondary Education leg- assessments; and information on lem. We are going to try to help you islation that will be before us this schools identified for improvement. with some dollars, but we are not going afternoon and then speak on what I Reading is the golden door to oppor- to tell you that you must do it one way consider to be the outstanding missing tunity. Unfortunately, forty percent of or the other. We are going to give you element in this bill. I ask the Chair to fourth grade students do not achieve a variety of options to solve the prob- tell me when I use 10 minutes of my the basic reading level, and 70 percent lems. time. of fourth graders are not proficient in I view it as a cafeteria line, where The legislation we will be consid- reading. Children who fail to acquire the Federal Government says here are ering builds upon the excellent work basic reading skills early in life are at three or four different programs you done in a bipartisan way on the Health a disadvantage throughout their edu- can use. In the teacher areas, they in- Education Labor and Pensions Com- cation and later careers. They are more clude hiring more teachers, improving mittee. The bill includes the elements likely to drop out of school and be un- the pay of the teachers, improving the of our Committee bill plus some of the employed. The BEST Act triples fund- knowledge base of the teachers, or im- other agreements that have been ing for the reading programs and proving the technical support for the worked out over the recent days. strengthens the Reading Excellence teachers; and, you, the local school dis- The Nation’s schools face many chal- Act to ensure that all children learn to trict, can go down that cafeteria line lenges that must be addressed if all read—and learn to read well early—so and pick off the plate what you need to students are to be challenged to they have a greater chance for success- help your students in your classrooms. achieve high academic standards. ful lives and careers. Rather than saying you only get one School enrollments are at record high Over the next 10 years, we will need choice on your cafeteria line, we are levels and continue to rise. Large seg- to recruit more than 2 million teachers saying you get four choices. ments of the teaching force are pre- to teach the record number of elemen- I think it is much more constructive. paring to retire. Diversity is increas- tary and secondary students in our I think we will have a much more ag- ing, bringing new languages and cul- public schools. Nothing in education is gressive and effective impact on the tures into the classrooms, and family more important than ensuring a highly quality of teaching—to the extent the structures are changing. More women qualified teacher for every classroom. Federal Government can assist in that. are participating in the workforce, cre- Research shows that what teachers It is basically the theme of this ating a greater demand for quality be- know and can do is the most important whole bill—at least of the President’s fore, after, and during summer school influence on what students learn. In- proposals as they have come forward activities. creased knowledge of academic content on the bill—to give the local commu- In addition, many of the Nation’s by teachers and effective teaching nities more flexibility. Let’s also hold school buildings are deteriorating and skills are associated with increases in them more accountable. There are, by must be renovated and modernized so student achievements. the way, more accountability stand- all students can learn in a safe learning The BEST bill includes strong defini- ards in this bill on teachers. We require environment. The demand for Internet tions of professional development, higher levels of proficiency and of cer- skills is at an all-time high, but the mentoring, and highly qualified teach- tification within the bill. So this is supply of computers connected to the er and contains strong accountability just one concept that I thought should Internet is inadequate in school build- and application requirements. In par- be outlined as we go forward. ings located in the poorest districts. ticular, the bill contains many of the I thank the Chair and yield the floor. The BEST bill is a good start toward elements that research indicates con- The PRESIDING OFFICER. The Sen- improving student achievement in the stitute effective mentoring and profes- ator’s time has expired. Nation’s public schools. This bill cre- sional development—sustained, inten- The Senator from Massachusetts is ates tough standards that must be es- sive activities that focus on deepening recognized. tablished for States, districts, and teachers’ knowledge of content, col- Mr. KENNEDY. Mr. President, what schools which hold them accountable laborative working environments, and is the time situation? for improving student achievement. We training that is aligned with standards The PRESIDING OFFICER. The mi- must drive resources and support the and embedded in the daily work of the nority has 29 minutes. most chronically failing schools to en- school. The Senator from Massachusetts has sure they get the help they need to Under this bill, limited-English-pro- 20 minutes of his time under turn around and to succeed. ficient students will get substantially postcloture remaining. The bill requires that every child more support to help them learn Mr. KENNEDY. So is it possible for should be tested each year in grades 3– English and achieve high academic me to use that 20 minutes and then use 8, not as a punishment, but so that par- standards. We are experiencing a tre- a few minutes of the minority time? ents and educators know where every mendous growth in the number of lim- The PRESIDING OFFICER. The Sen- child stands and what more needs to be ited-English-proficient and immigrant ator would have to get unanimous con- done to help them. We hope to students in our Nation’s classrooms— sent to do so. strengthen provisions within the bill to from 3.4 million students in the 1997–98 Mr. KENNEDY. I ask unanimous con- ensure that these State tests are high school year to an estimated 4.1 million sent to be able to use up to 9 minutes, quality, so that parents will know that of our school children today. which would be the total amount allo- the results of these tests are meaning- Dramatic shifts are taking place in cated to the Democrats. ful for their children. the growth of our immigrant popu- The PRESIDING OFFICER. Is there All parents deserve a complete pic- lation in the United States, and immi- objection? ture of what is happening in their grant students are emerging in areas Mrs. HUTCHISON. No. Mr. President, child’s school. A recent survey by the where their presence had previously the Senator very kindly gave his time Center For Community Change found been invisible. The most recent census last night to the Senator from that 36 States produce some variation data shows that, between 1990 and 1998, Vermont. So I ask unanimous consent of a school report card that includes our States in the South have experi- that he be allowed to use the 29 min- student achievement in other factors. enced a growth in the Hispanic popu- utes. Report cards will highlight school chal- lation by 93 percent. The PRESIDING OFFICER. Without lenges and provide parents with infor- The BEST Act responds to this chal- objection, it is so ordered. mation they can use to become more lenge by providing additional opportu- Mr. KENNEDY. Mr. President, I re- involved in their child’s education. nities for success. The BEST Act in- quest just 15 minutes. They will include information on stu- creases the federal commitment to pro- I thank the Senator from Texas. She dent achievement by desegregated vide educational assistance to our lim- is always gracious and courteous, as groups of students; graduation and ited English proficient students well as a gifted Senator. dropout rates; teacher quality; infor- through the Bilingual Education Act.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4132 CONGRESSIONAL RECORD — SENATE May 2, 2001 When the program is appropriated at with national school modernization This legislation offers these opportuni- $700 million, it will become a state for- costs of more than $127 billion. The ties to only a small percent of the eli- mula program based on 67 percent LEP BEST bill as reported by the com- gible children, and that is wrong. population, and 33 percent new immi- mittee is silent on school construction We have fashioned a good bill that grant population. Our bill responds to needs. can benefit all children. So it is a rea- States in which the limited English We should really commit to leaving sonable question to ask: Why aren’t we proficient population has grown at a no child behind by fully funding title I. taking care of all the children? Why tremendous rate, and where there is It takes resources, as well as testing are we taking care of just one-third? little or no infrastructure in place to and accountability, to do school reform Do we have the resources? Yes. Do we provide for the educational needs of right. have the will? Evidently not. Do we these students. We should maintain our commitment have other priorities? Apparently so. A Research shows that children who to reduce class sizes for 2 million chil- small percentage of the extraordinary are home alone after school hours re- dren instead of backing away from it. tax cut of $1.3 trillion, about $5.3 bil- port higher use of alcohol, cigarettes, Senator MURRAY will address that lion a year over 4-years, would allow and marijuana. Nearly 45 million chil- issue. every one of these children to get the dren ages 14 years and younger are in- We should provide subject matter assistance they need to achieve suc- jured in their homes every year and training for every teacher in high pov- cess. most unintentional, injury-related erty schools. There is a high demand for after- deaths occur when children are out of New teachers should have mentors to school programs. Last year, there were school and unsupervised. The bill ex- pass on wisdom and keep them in the more than 2,250 applications for after- pands the successful 21st Century Com- profession. school programs, and only 310 were munity Learning Centers, increasing We should fix 5,000 crumbling schools funded. the authorization from $846 million to over the next 10 years. What happens in these afterschool $1.5 billion in fiscal year 2002. It also And we should ensure every child has programs if we do not have enough re- changes the program to a state formula a safe and supportive place to go after- sources? Why are afterschool programs program, ensuring students in every school. so important? First, we have 7 million state will have expanded after-school Without these types of investments, children between ages 9 and 13, who are opportunities. After-school opportuni- our efforts at school reform will fall of left unsupervised after school hours. ties are necessary to keep children safe their own weight. Afterschool opportunities are nec- before, after, and during summer Mr. President, in order to reach the essary to keep children safe, help par- school to keep children safe, help par- elements of this legislation, we have to ents work, and expand children’s learn- ents work, and expand children’s learn- provide the resources. ing opportunities. ing opportunities. Yet demand for The fact is only one-third of the Do parents want this service? Yes. Do these programs continues outpace sup- neediest children are going to benefit children need it? Yes. Are they effec- ply. According to a report from the from what we have developed if we do tive? Yes. Do we have the money? No. U.S. Census Bureau last year, almost 7 not increase the funding. We are going We are talking about the future of million children aged 5 to 14 are left to leave behind two-thirds of the chil- the country. We are talking about 80 unsupervised on a regular basis during dren who qualify for assistance. percent of the children going to inner- the after school hours. The fact remains, we have approxi- city schools in the eighth grade are The PRESIDING OFFICER. The Sen- mately 12 million poor children in without an adequate math teacher who ator has used 10 minutes. America. We made a decision in the can teach them algebra. We know all Mr. KENNEDY. I thank the Chair. early 1960s to give special assistance to educators will effectively agree if chil- The PRESIDING OFFICER. The Sen- those children. It is still primarily a dren do not learn algebra, they have a ator has 19 minutes remaining. State and local responsibility. difficult time advancing on to college. Mr. KENNEDY. I thank the Chair. When I listen to my colleagues on the Unless someone is going to help pro- Prior to the passage of the Class Size other side talk about the failure of vide the well-trained teachers who can Reduction program in 1998, under the these programs, it is really an indict- teach student necessary math skills, leadership of Senator MURRAY, more ment of the failure of States and local we are effectively saying to millions of than 85 percent of the Nation’s stu- communities to provide the kind of as- children in the country, that oppor- dents were in classes with more than 18 sistance which is necessary to make a tunity is closed to them. students, and 33 percent were in classes difference to these children. We know This issue effects the future of our of 25 or more students. Because of the what it takes to educate children. That Nation. We are talking about a world Class Size Reduction Act, 1.7 million is not a great mystery. We have many economy, a highly educated society; we children are benefitting from smaller schools that annually produce very tal- are talking about updating skills; we classes this year: 29,000 were hired with ented and creative students. are talking about continuing training fiscal year 1999 funds; 1,247 are teaching I will tell you, Mr. President, what I programs for people in jobs so they can in the first grade, reducing class sizes fear about this legislation. compete. Are we meeting that chal- from 23 to 17; 6,670 are teaching in the Looking at the funding levels for this lenge at the local level? We are not. second grade, reducing class size from legislation, we see we are currently That is the extraordinary tragedy in 23 to 18; 6,960 are teaching in the third reaching one-third of these children. this program. grade, reducing class size from 24 to 18; We state in this legislation that all of This legislation is the basis of some- 2,900 are in grades 4–12; 290 special edu- these children, the 12 million who are thing that can be enormously impor- cation teachers have been hired. And, basically poor and somewhat smaller tant and, I believe, can make a real dif- on average, 7 percent of the funds are numbers who are actually eligible who ference in the education of some of the being used for professional develop- are very poor. None of these children neediest children in our country. How- ment for these new teachers. We should should be left behind. ever, we are going to fail to meet that continue the Class Size Reduction Act. Under the President’s budget, in fis- test unless we have the resources. Un- When we send childen to crumbling cal year 2001, 3.5 million children are less we are going to provide those re- schools, we send them the message served under title I funding; fiscal year sources, we are going to fail our chil- that they don’t matter. Fourteen mil- 2002, 3.7 million; fiscal year 2003, 3.9 dren. lion children attend schools in need of million; fiscal year 2004, 4.1 million, We know that many poorer schools at least one major repair, such as fixed and fiscal year 2005, 5.2 million chil- are more challenged today. We have heating or plumbing systems. Half of dren. added approximately 5 million spe- all schools have at least one environ- The Democrats start off with the cially challenged children, who were mental hazard, like inadequate ventila- same base at 3.5 million, up to 5.2 mil- not in the schools 10 years ago. They tion. One-third of all schools are more lion, 6.9 million, 8.6 million, and by fis- are taking the tests. than 50 years old. Urban, rural, and cal year 2005, no child is left behind. We have seen the expansion of the suburban communities are struggling That is the basic and fundamental gap. number of homeless children in our

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4133 schools, some 600,000 homeless chil- then Senator GORDON SMITH be given I 1994 reauthorization, the Democrat- dren. We have approximately 500,000 up to 5 minutes, following which the ically-controlled Congress appropriated seasonal workers’ children, a third at- minority would have their 15 minutes, a mere 5.7-percent increase in the fol- tending school, and then moving on. following which Senator BUNNING from lowing year, fiscal year 1995. We have migrant children in our Kentucky would have 20 minutes, fol- So, when in control, the other side of school. We have challenges with dif- lowing which the minority would have the aisle has offered increases associ- ferent languages, with more than 4 mil- 20 minutes. ated with reforms of somewhere be- lion school age children who are either The PRESIDING OFFICER. Is there tween 5 and 6 percent a year. Yet in our limited English Proficient or immi- objection? negotiations several weeks ago they grants. We have seen an increase in Without objection, it is so ordered. asked, not for what they had put for- separations and divorces, which has The Senator from Tennessee. ward, and appropriated, throughout placed pressure on children. We have Mr. FRIST. Mr. President, I rise to their history of being in charge, which also seen the explosion of violence in speak very briefly—for 10 minutes—on is an increase of 5 to 6 percent, but in- our society—and in our schools. Many the Better Education for Students and stead came to the table recommending, of the schools and teachers bear the Teachers Act, a bill that was passed suggesting, insisting, on a 75-percent brunt for dealing with those special out of the Health, Education, and Pen- increase, and not in 5 years or 10 years, needs. All of these factors are impact- sions Committee, a bill that speaks but in just 1 year. ing children as they go to school. very well to the principles, to the At this moment negotiations are un- We must not fail to do what works. ideals, to the practical application of derway. I am not in the middle of those That means a well-trained teacher in what President George W. Bush has put negotiations, but the figures being ne- every classroom. It is amazing so many forth as his principles for education re- gotiated by the other side of the aisle teachers in the inner-city schools form. are a 50-percent increase, a 49-percent working as long and as hard under such Let me say at the outset, as most increase. That ends up being about $5.2, circumstances. They are extraordinary people know, that there is a lot of dis- $5.3 billion. individuals making a difference in peo- cussion today about funding. We have a I point out to my colleagues that ple’s lives under extraordinary condi- bill with significant reforms that I never, ever in the program’s entire his- tions. We need to give them help, as- hope will very soon be brought to the tory has it grown by even $1 billion. So sistance, and confidence. We need to floor. That reform effort, which is ter- these proposals are significant in- make sure they will have the equip- ribly important, as we all know, and as creases. But I hope that when agree- ment they need to get a first-class edu- both sides of the aisle agree, is being ment is reached in the next several cation. linked in concept, but also in process, days, whatever figure we end up with, Why do we say education counts and to increased funding, as we just heard that the American people will under- then have children go to a crumbling from my colleague from Massachu- stand that it is a figure dramatically school? It makes no sense. We can talk setts. I want to quickly provide some larger than any ever suggested by the the talk but unless we are prepared to perspective about the funding side. other side of the aisle. walk the walk, we fail the children. While we have been talking a lot about President George W. Bush has dem- We need accountability to make sure the reform side, and will continue to onstrated a strong and remarkable the children are actually learning. We talk about it, the funding side has been leadership position in reforming and want to make sure those schools will pushed aside. People know negotiations modernizing education. He has focused be safe. We want smaller class sizes in are underway. But I want to put it in in particular—and this is reflected in the early grades, so a teacher can take perspective. the agreements and in the policy that a little time with a child that has a The primary argument for increased is being formulated in a bipartisan particular need during the course of funds, according to the other side of way—on serving the most needy stu- the day, rather than looking at the the aisle, is that the modernization of dents, so that, indeed, no child will be child as a number. the Elementary and Secondary Edu- left behind. On this side of the aisle, we are vir- cation Act requires increased funding We have all talked a lot about the tually united in insisting we are going to pay for those reforms. I want to achievement gap which has not nar- to get the resources to be able to do make it very clear, again, to my col- rowed but in fact gotten wider over that. leagues and to people who may be time, the gap between the most needy We know now there are 10,000 failing watching this debate across the coun- students and others, between the un- schools. We also know that it costs try, that when the Democrats were in derserved and others. The commitment about $180,000 to turn a school around. charge of this body, that was not the of the President of the United States, There are a series of 57 different op- principle that was applied. There was and the bipartisan commitment in the tions that have been tried and tested no dramatic increase in funding for re- underlying policy, is something, again, that are suitable for different schools. forms. that we need to keep first and foremost It would take $1.8 billion out of a tril- One example: In 1988 a Democrat in our mind—putting the emphasis on lion dollar budget, to try and turn Congress reauthorized the Elementary children, on individuals, and not on bu- schools around. and Secondary Education Act, the reaucracies, on programs, or, I would We are missing an extraordinary op- same law enacted in 1965 that has been add, indeed, not just throwing money portunity and responsibility in doing reauthorized seven times, and in the at a system uncoupled with reform. something about these children’s edu- subsequent appropriation year—1989—a The President of the United States cation. If this is going to be a first pri- 5.1-percent increase in title I was en- has expressed a willingness to support ority for the administration, it ought acted to cover those 1988 reforms. the largest increase in education fund- to draw on first priority dollars and re- Five years later, in 1994, a Democrat ing, focusing on title I, ever proposed sources and invest in the children who Congress reauthorized ESEA, again in the 35-year history of the program. I need it. We ought to provide the re- hailing at the time that it was the mention that because we tend to lose sources necessary to leave no child be- most significant reform package since perspective. The bottom line is this hind, to reach every child before we the bill was initially put into effect in President has proposed, and we sup- even consider providing the tax breaks 1965. I quote a Senator from the other port, the largest increase ever in the in the President’s budget. side of the aisle who said: 35-year history of the Elementary and I yield the floor. It is the most important reauthorization of Secondary Education Act. The PRESIDING OFFICER (Mr. BUN- ESEA since the landmark Act was passed in We have a great opportunity as we go NING). The Senator from Texas. 1965. forward. We look at the failure of per- Mrs. HUTCHISON. Mr. President, I That particular Senator went on to formance of ESEA, especially as we ask unanimous consent, with the hail the bill’s accountability and high focus on the neediest students, and the agreement of the minority, that Sen- academic standards. I want to point opportunity to reform and modernize ator FRIST be given 10 minutes of the out that for the major comprehensive with, yes, an increase in investment, next 30 minutes of divided time, that reform effort, at that time, to the title but also with reform that captures the

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4134 CONGRESSIONAL RECORD — SENATE May 2, 2001 very best of what the American spirit hopeful that we can, even though the You can’t prove your commitment to is all about, and that is the creativity, other side objects to its being brought children, your commitment to edu- the innovation, and the freedom to ad- to the floor. cation just by tossing around dollar dress issues and reward success rather I yield the floor. figures. Talk is always cheap. There is than failure, as we have done in the The PRESIDING OFFICER (Ms. COL- a difference between just spending past. LINS). The Senator from Kentucky is more money and spending it wisely. The underlying bill, which I am very recognized. This bill recognizes that difference. hopeful will be released by the other Mr. BUNNING. Madam President, I For instance, today there are 58 pro- side and brought to the floor so we can ask unanimous consent to be allowed grams funded through the Elementary talk about it, stresses issues such as to take my 20 minutes now and concede and Secondary Education Act alone, accountability. to the opponents or the opposition 20 and we are going to spend approxi- Let me also point out that although minutes following my 20 minutes. mately $18 billion on these programs people say we do not know what is in The PRESIDING OFFICER. Without this year alone. the underlying bill, that bill is before objection, it is so ordered. The bill before us simply doesn’t just us, on all of our desks. Yes, there are Mr. BUNNING. Thank you, Madam tack more programs onto current law modifications and there are certain President. and increase spending as part of a hol- agreements that are being reached that Madam President, I rise today to low promise to improve education. will be added to that bill. But they can talk for a few minutes in support of S. That would be a cheap out, an easy look at that bill. I hope that bill will 1, the President’s education reform way to make us all feel better. Instead, be brought to the floor. Basically, it bill. this legislation makes more funda- does four things. No. 1, it increases ac- We all agree that every child should mental and significant changes. It folds countability for student performance; receive a top-notch education, and that many of these programs into more con- No. 2, it rewards success; No. 3, it in- no child should be left behind. There structive approaches, and repeals oth- creases flexibility and freedom; and, isn’t one Senator who disagrees with ers that don’t work. No. 4, it puts emphasis on parents. that. That does not happen often in Wash- No. 1, it increases accountability for But we can disagree on the best ways ington—getting rid of a program that student performance. Over the last 24 to meet this goal, and that’s what doesn’t work. hours in negotiations, we have reached much of the debate is going to be But this bill does it. And I think it’s general agreement on how to build in about. going to make a difference for the kids. that accountability in a strict way. I believe that the bill before us today And by folding programs and some Yes, we give more freedom to innovate, deserves our support for a number of spending into block grants, we put but we link that to demonstrable re- reasons. And it ensures that no child more power in the hands of the local sults, measurable results. It is called left behind is more than a campaign officials and teachers who are on the average yearly progress. The technical slogan—it’s a promise to our families front lines and have the most experi- aspects that have been worked out, and and their children. ence with what methods really work. that language will be available shortly First, the legislation makes badly Another good aspect in this bill is today. needed changes to the Department of that it requires results and instead of No. 2, the BEST bill. It is called the Education—changes that will help us just tossing funding at a problem, it in- B-E-S-T bill, Better Education for Stu- do a better job at educating our kids. jects serious accountability into edu- dents and Teachers Act. Again, the em- In the past we’ve relied too much on cation. phasis is on teachers and students. It creating new programs and the failed By testing students annually from focuses on what works. As I pointed notion that spending more and more grades three to eight, we make sure out in my previous remarks on the money, and that creating more and they are actually learning and not sim- floor, what is important is that we more government, are answers to the ply getting passed along to become have an understanding, a measure- question of how to best educate our someone else’s problem. ment, of what works based on good kids. And it holds teachers and school science, on good research. No. 3, the BEST bill will also reduce If that were true, Federal welfare boards accountable for these results. If bureaucracy. It will get rid of red tape, spending would have ended poverty scores don’t improve, the kids can and it will increase flexibility. That years ago. leave those failing schools and funding really comes back to the importance of And Federal education spending will follow them to institutions that having local control and innovation, of would have ensured that every child work and teach. rewarding what works and recognizing could read and write. That hasn’t hap- Schools that fail to educate their what does not work. Additional flexi- pened because money isn’t the answer. students will face the consequences. bility will be given to the States, to Many of my friends on the other side Parents will be notified and students the districts, and to the schools, strip- of the aisle talk about spending more will be allowed to transfer to other ping away the unnecessary and need- money as if it were a magic pill that public schools. less red tape that results in teachers will fix all of our problems. If the problems continue, the school not being able to teach; that takes This just isn’t true. Look at the could be forced to implement a new time away from teaching; that pre- schools in the District of Columbia. curriculum, the school’s staff could be vents principals from spending time Per student spending there is among replaced, or the school could be re- administering their schools. the highest in the land, and the school opened as a charter school. No. 4, the underlying bill focuses on system has been in terrible shape for This legislation contains other prom- parents and on the individual student. years. ising initiatives, including the Reading It involves an element of choice. No More money and more programs First Program that makes sure all longer will a child be locked into a aren’t the answer. It might sound good. children read by the end of third grade. school that fails today, that will fail It might make some of us feel better. Instead of social promotion, we are next year, and the year after that. in But it’s a false promise that cheats our actually going to make sure that kids spite of reform, in spite of additional kids. master the most fundamental skill of resources. That child, for the first time And I would like to remind my all—reading. And there is an Early in the history of this country, will be friends on the other side who are now Reading First program that focuses on given an opportunity to choose another questioning our commitment to kids reading for children ages 3 to 5. public school. that the last time Congress worked on I realize that this sort of testing and Those principles are accountability, reauthorizing the ESEA back in 1994 accountability is a change from the rewarding success, reducing bureauc- that they didn’t say one word about past for many and makes a lot of folks racy, increasing flexibility, and em- linking the bill to appropriations—not nervous. powering parents. one word. However, there are times when I am very excited about this oppor- So all of their complaining now rings change is necessary. And this is one of tunity to move forward. I am very a little bit hollow. those times. We should not be happy

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4135 with the status quo when it comes to be called to task for the results. Per- ers in the House and Senate who have, educating our children, and should al- sonally, I think that one of the most I am told, preserved the one thing I ways be looking for better ways to edu- effective parts in this bill is the provi- wanted most in this budget, which was cate. sion that gives children the power to a $28 billion authorization for 3 years If something doesn’t work, you change schools if their school fails to expand health care to the uninsured. change it. Fear of improvement or a them. To sum it up, in this legislation I came to this issue not this year, but fresh approach is no reason to continue the money follows the kids. If a child from the first year I entered public life to shortchange our kids. By requiring escapes a failing school, the money as an Oregon State senator and won the States to test children, this bill used to help educate them follows them membership on our health care com- maintains another crucial aspect of our to an institution that works. mittee. I was not around when we cre- educational system—local control. I support completely the choice of ated the Oregon Health Plan, but I did Some of my colleagues might remem- schools for children. I think it is the play a role in obtaining funding for it. ber last year when President Clinton best way to give schools an incentive The Oregon’s Medicaid program, known took a tour around the country to pro- to do a good job. Competition is the as the Oregon Health Plan, has dra- mote one of his education proposals. way to ensure the best results when it matically reduced the number of the Some of the Washington bureaucrats comes to markets and practically working uninsured in the State of Or- put together a map of his tour that in- every other part of our society. But for egon. cluded a stop in Owensboro, KY. some reason, when it comes to edu- We have a tradition in our State of Of course the map and the PR mate- cation and our kids the opponents of trying to take care of those who can- rial they put out about the President’s choice say no. I don’t know why the op- not take care of themselves. I express trip to Owensboro showed it being in ponents of choice think that it won’t gratitude to my colleagues on the the middle of Tennessee, and actually work for kids and schools. I believe Democrat and Republican side for this lopped off the western part of Ken- that this cheats our neediest students budget agreement that will help our tucky and gave it to Illinois. and takes power away from them. I State and others do just that. That is just a funny little mistake, look forward to this part of the debate. I believe we need tax reduction and but it demonstrates my point that But even if we don’t succeed in giving tax reform. I think we are going to do Washington does not know best. complete freedom of choice to stu- something very significant in our gen- I definitely trust folks in western dents, the fact that this bill gives stu- eration with what we will likely adopt Kentucky—who know where Owensboro dents in public institutions the power very soon in this body and the other, really is—to educate our Kentucky to change their schools is a dramatic and that President Bush will sign. It kids than officials who work here at improvement over the status quo. will put real dollars into the pockets of the Department of Education. In conclusion, I urge support for the working Americans. I already talked a little but about bill. The legislation before us presents But I must say how grateful I am block grants and about how they’ll an important choice to us: Do we con- that this budget item has been pre- work. I’m also glad that the legislation tinue with the status quo, or do we served—$28 billion for the uninsured— strengthens the successful ED-Flex take an important step in improving because while we cut taxes for Ameri- Program and I hope it eventually in- education for children, and ensuring a cans, it is also appropriate that we care cludes the important straight A’s Pro- bright future for them? Do we listen to for those who cannot care for them- gram. those who sing the tired old songs selves. Those are crucial parts of this bill about more money and more money, or Madam President, I ask unanimous that guarantee local control and the do we opt for real reform and account- consent an editorial from the Wash- best possible results. Under the Presi- ability? I, for one, will vote to improve ington Post of this morning entitled dent’s plan, States test kids in grades education and for a fresh start for our ‘‘Timeout for the Uninsured’’ be print- 3–8 in reading and math, States are re- kids. I urge support for this legislation ed in the RECORD. sponsible for creating the tests as well before us today. There being no objection, the mate- as setting performance goals and cre- I yield the floor. rial was ordered to be printed in the ating a plan for ensuring that all of The PRESIDING OFFICER. The Sen- RECORD, as follows: their students are proficient on their ator from Oregon. [From the Washington Post, May 2, 2001] statewide tests within 10 years. Addi- Mr. SMITH of Oregon. Madam Presi- TIMEOUT FOR THE UNINSURED tionally, States will also administer a dent, I was not here when the order House conferees have been fighting with national test, called the National As- came for my 5 minutes in a unanimous their Senate counterparts to reduce the sessment of Educational Progress in consent agreement. I ask unanimous spending levels in the congressional budget grades 4 and 8, to make sure all stu- consent I be allowed 5 minutes now, resolution. No doubt some cuts can be made dents across the country are not being and any time I get be added to the in the Senate totals without the country’s cheated out of a good, positive edu- Democratic side. I will be very brief. suffering harm. But at least one relatively cation. The PRESIDING OFFICER. Is there minor Senate proposal deserves to remain. Oregon Sens. Gordon Smith and Ron By protecting the role of State objection? boards of education, we help ensure Wyden won inclusion in the budget of an ad- Without objection, it is so ordered. ditional $28 billion over three years to reduce that local communities can play their The Senator may proceed. the number of Americans without health in- traditional role in instructing our chil- f surance. The money would mainly be spent dren. And just to make sure that the on lower-income people. Exactly how would work gets done, the Federal Govern- THE BUDGET RESOLUTION AND be up to the authorizing committees, but an ment will foot the bill for these testing UNINSURED AMERICANS add-on of some kind to Medicaid and/or the procedures by paying for half of the Mr. SMITH of Oregon. Madam Presi- children’s health insurance program that cost of the statewide tests, and the full dent, I have come to this Chamber in Congress enacted several years ago seems cost of the national assessment test. the past to express my frustration most likely. The modest expansion would hardly solve the un-insurance problem, but Local education agencies will be held when things have not seemed to be pro- it would push in the right direction. to the same standards of improving ceeding and we seemed to have been About a seventh of the population remains student achievement, and will face stuck in gridlock. Today is a very real uninsured. Most are poor or near poor. They similar consequences if they fail. Just exception to that feeling. I rejoice that lack insurance mainly because they can’t af- as students have to pay a penalty if we have a budget agreement, and that ford it. The administration has proposed a they fail, so should teachers and we are working on education reform tax credit to help those whose employers schools if they fail in their responsibil- that puts serious resources behind seri- don’t offer insurance. But the credit would ities. Education is a serious business. ous reform in our educational system. cover only part of the cost of an average pol- icy, and most uninsured families still would There should be real consequences for I am here as well to thank the lead- find such a policy beyond their means. Some failing our kids. We trust schools and ers of the conference committee on the people think the industry might respond by educators with our kids’ futures, and Budget, specifically Senator DOMENICI offering only partial policies, but it’s not there is no reason why they shouldn’t and Senator LOTT on our side, and oth- clear that would be a good result, either.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4136 CONGRESSIONAL RECORD — SENATE May 2, 2001 The administration proposal has some in- plan will give businesses a tax credit if of attack or maintaining the security teresting features and would do limited good, they chip in more to offer quality of the United States of America. but limited is the operative word. The spend- health care to their low-income em- If there is a real potential of a rogue ing programs for the lower-income uninsured ployees. Many low-wage employees are have shown themselves to be efficient ways nation—and I underscore ‘‘if’’ there is a of increasing coverage. Whatever the fate of working hard but are having trouble real potential of a rogue nation—firing the tax credit, they should be expanded. paying the full amount for health in- a few missiles at any city in the United Much attention has lately been paid to the surance. States, responsible leadership requires health care problems of the already insured. Second, our plan will extend Med- the most thoughtful steps possible to The elderly lack a drug benefit; people en- icaid coverage to more low-income prevent losses as a consequence there- rolled in managed care complain that care is Americans. Many low-income adults of. sometimes sacrificed to cost. But at least who cannot afford or are not offered The same is true of accidental these people have insurance. More than 40 health insurance will be eligible for million don’t. The budget argument this launch. If at some point in time, God year has been mainly about how large a tax Medicaid coverage. As I indicated, we forbid, there were to be an accidental cut to give the better-off. What about a want to expand the CHIP program. launch of a nuclear missile, the notion timeout to pay a little heed to those who The PRESIDING OFFICER (Mr. BUN- that any country in the world, if tech- can’t afford to get sick? NING). The Senator’s time has expired. nology were available, should be sub- Mr. SMITH of Oregon. The Wash- Mr. SMITH of Oregon. Mr. President, ject to that possibility would be unac- ington Post editorial states: I ask unanimous consent for 1 more ceptable. All of us in the civilized House conferees have been fighting with minute. world need to take steps to try to pro- their Senate counterparts to reduce the The PRESIDING OFFICER. Without tect ourselves against the potential of spending levels in the congressional budget objection, it is so ordered. that ever happening. resolution. No doubt some cuts can be made Mr. SMITH of Oregon. We believe Let me make it clear. The rogue mis- in the Senate totals without the country’s that expanding health insurance to sile rationale that has been offered on suffering harm. But at least one relatively millions of hard working low-income minor Senate proposal deserves to remain. many occasions really merits much Americans will relieve the uncertainty greater analysis than many people They are referring to this $28 billion and fear many people face, knowing have given it. For a state to develop a that we can use to reduce the ranks of that they are one illness away from missile capacity, it would require some the uninsured. Currently that is about losing their life savings or their home. measure of testing, some measure of 17 percent of our fellow citizens, over 43 It is the right thing to do. It is the actual deployment, such as we have million Americans. right time to do it. seen in North Korea with its Taepo Senator WYDEN and I, when we came As the editorial in the Washington Dong 2. It would also require a launch up with this idea, hoped we could cut Post says: site and capacity, all of which are de- this number in half. It is now up to the What about a timeout to pay a little heed tectable by the United States, all of Finance Committee to achieve that. to those who can’t afford to get sick? which are traceable over a period of They have the money now authorized I thank my colleagues on the budget time. to accomplish that. conference committee for preserving Good programs do exist for providing If, indeed, a state is to such a degree this critical line item for the unin- a rogue state that we think its leader- health care to the uninsured. Medicaid, sured. I urge all my colleagues to vote as we all know, is working. It needs ship might be in a position of firing one for it when it comes out of this con- or two rogue missiles at the United more resources. There is also the Chil- ference and then later when it is craft- dren’s Health Insurance Program, or States, we ought to also think beyond ed into final form by the Finance Com- that as to what they would be inviting CHIP, which has also reduced the num- mittee. ber of uninsured children in this coun- as a response. Clearly, one or two mis- I yield the floor. siles clearly traceable, obviously com- try. The PRESIDING OFFICER (Mr. ROB- One of the things I was most grateful ing from a particular rogue state, ERTS). The distinguished Senator from would invite their annihilation. to have been a part of when I first Massachusetts is recognized. So when we measure threats, we came to the Senate was a compromise Mr. KERRY. Mr. President, I ask don’t just measure capacity to be able between Senator HATCH and Senator unanimous consent to speak as in to do something. We measure the in- KENNEDY for the CHIP program, which morning business. became the pivot point for the bal- The PRESIDING OFFICER. Without tent to do something. We measure the anced budget agreement. Oregon’s Chil- objection, it is so ordered. consequences of somebody doing some- thing. Indeed, Saddam Hussein, who dren’s Health Insurance Assistance f Program has enrolled 13,000 children in possessed weapons of mass destruction, our State. But there are more than NATIONAL SECURITY saw fit not to use those weapons of 61,000 eligible children without cov- Mr. KERRY. Mr. President, yester- mass destruction when we went to war erage because of the limited amount of day the President of the United States against him, even when he was losing money budgeted for this purpose. Sen- gave a very broad outline of a new na- the war. The reason that he didn’t was ator WYDEN and I hope the Finance tional security strategy that moves because, Secretary Baker made it pat- Committee will expand this program to away from the reliance on deterrence ently clear what would happen to them include their parents. and arms control towards missile de- if they did. What we are doing is providing access fenses and unilateral arms reductions. Even the most unreasonable, most to health care for low-income Ameri- Frankly, the President’s brief re- demonized of leaders still calculates cans. This is the No. 1 bipartisan agen- marks raise more questions than they risk and still calculates the repercus- da item we have. We have started on answer. I wanted to take a few minutes sions of his actions. that plan and will build on its past suc- to address in this Chamber some of the Indeed, our military, in making a cesses. key issues he touched on yesterday. judgment about the different tiers of I believe expanding coverage can be First, the President stressed that we threat we face, places the threat of a done in a way that will promote State must move away from our reliance on rogue missile attack at the very bot- flexibility, avoid new bureaucracies, deterrence to keep our citizens and our tom of threats the United States might and protect the employer-based cov- allies safe from aggression or from nu- face. erage system, while providing a mean- clear blackmail. While I agree that in Here we are in a debate about edu- ingful, affordable benefit to millions of principle we want to find alternative cation and we are being told we are not Americans. methods of being able to protect our- sure we have enough money for edu- Our first component that we will pro- selves from the potential of nuclear cation; we are not sure we have enough pose to the Finance Committee will be blackmail or terrorism, the hard re- money for alternative and renewable to give businesses incentives to make ality is that there will always be a fuels; we are not sure we have enough quality health insurance more afford- measure of deterrence in any approach money for a prescription drug program able for their low-income workers. Our we find with respect to the prevention for seniors; we are not sure we have

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4137 enough money to fix our schools and If you have a system that is 100-per- put them on submarines. In one— provide the next generation with the cent effective, you have also dramati- maybe two—instances, they beat us. kinds of education we want—we need cally changed the equation of the bal- With Sputnik, they beat us. In every to balance what we get for our expendi- ance of power because if you are sitting other instance, the United States led. tures in terms of national security there and your adversary says, well, We were the first to put out the more against other initiatives that also have they have a system that is 100-percent sophisticated weaponry capacity. an impact on the national security of effective against an intercontinental But what happened? Inevitably im- our country. ballistic missile, so we had better de- mediately it may have taken we found I say, with respect, that the Presi- liver systems that completely avoid ourselves in this race. The whole pur- dent’s efforts with respect to the rogue the intercontinental ballistic missile— pose of the SALT talks and the START missile threat seem to be willing to do if, indeed, they are an adversary—if talks—now START I and START II— things to the ABM treaty, to our rela- China is sitting there and their strate- where we have the capacity to lower tionships with Russia and China that gists are saying the United States now from 7,200 weapons down to the 3,500, is go well beyond what we could possibly has the ability to shoot down all of our the notion that we have arrived at an gain in terms of our security. missiles—they have a 100-percent effec- equilibrium and we are prepared to Let me come back to missile defense, tive defense—that means they have the ratchet down together to make the which is really only a response of last first strike capacity because the world safer. resort when diplomacy and deterrence minute you have developed a 100-per- I say to my colleagues, very simply, have failed. I support research and de- cent defense, you have translated de- if we can get China and Russia and our velopment of a limited missile defense fense into offense because if you are allies to understand that a mutual de- system that, indeed, might have the 100-percent protected, you can fire with ployment of a clearly verifiable, highly ability to knock down one or two in- impunity first, knowing nothing hits transparent system, mutually arrived coming missiles. I think it would be, in you in return. at in protocol—if we can deploy that, fact, a step forward for the United So what you have done is really all of us together, with a clear under- States to be able to at least know that turned on its ear the very concept of standing of the reductions we are seek- we have that capacity. I suggest, very fear by both sides that the con- ing, that could be salutary in its ex- respectfully, that most scientists and sequences of a conflict are so great traordinarily limited way. most strategists who are well respected that you avoid the conflict. In point of But if the United States insists on in this country recognize the extraor- fact, one of the reasons the United moving unilaterally, abrogating a trea- dinary difficulties developing a system States restrained itself from consid- ty, we will send a message to already that might do much more than take ering even greater escalation in Viet- paranoid hardliners in other countries out a selected number of missiles, and nam, and in other parts of the world in that the United States once again that if this were something more than conflicts, was knowing that the Soviet wishes to have technological superi- a limited system, if it were a system Union and China have this extraor- ority. That will drive them to respond designed to provide some kind of shield as a matter of their security perception or some kind of larger protection dinary capacity to escalate to the ulti- and as a matter of their politics, the against the potential of a larger at- mate confrontation. It was always the same politics we have, where a bunch tack, and was in fact deployed in that fear of the ultimate confrontation that of people sit around and say: How can way, we would simply be inviting the drove us to restrain ourselves and ulti- kind of counterresponse we saw mately to put in place the ABM Trea- you allow them to do that? You are a throughout the cold war, when we uni- ty. weak leader. You had better respond. If laterally initiated some advance in The ABM Treaty represents the con- you don’t respond, you are going to be technology which the Soviet Union in- clusion of Republican and Democrat thrown out of office. And they respond. terpreted in a way that invited them to administrations alike that we need to What happens? We wind up spending respond. find a way out of the continuing esca- trillions of dollars on something that Most people who make judgments lation of the arms race. That is why we takes us to a place that we will ulti- about the potential of knocking down put it in place. It gave us a guarantee mately decide is more dangerous than missiles, given the difficulties of de- that we knew we could begin to reduce the place we are in today and from coys, of the extraordinary techno- weapons because neither side was going which we need to back off. logical difficulty of discerning the dif- to upset this equilibrium. That is why Sam Nunn and DICK LUGAR, two of ference between artificial and real tar- China and Russia are so deeply upset at the most respected Senators—one gets, the capacity of 1 warhead to po- what we are now considering doing—if former Member and one current Mem- tentially carry 100 different bomblets, we do it unilaterally. I am not against ber of this institution—have led this which you have to discern the dif- doing it if it is arrived at mutually. I body in a well known effort to reduce ference between in a matter of sec- want to research the capacity. I think the nuclear threat from the former So- onds—to suggest you can somehow there is a value to being able to say to viet Union. We had distinguished bipar- have a system that is going to be 100- New York City or Los Angeles, you are tisan testimony in the Foreign Rela- percent effective would be to stretch never going to be hit by a rogue missile tions Committee a few weeks ago that the imagination to where I think no or an accidental launch. we need some $30 billion more than we strategist would want to go. I don’t But what good is it if you deploy it in are allocating now just to reduce the think anybody worth their salt in mak- such a way that you abrogate the trea- threat of the nuclear missiles we are ing judgments about potential conflict ty that has held the balance and invite trying to dismantle in the former So- would come to a conclusion that one is your adversaries to interpret it as the viet Union. Yet we are talking about 100-percent failsafe protected. efforts of the United States to gain this spending more than that to create a So if you are not 100-percent failsafe superior edge, which then leads them whole new round of mistrust and mis- protected, you are still dependent, ulti- into the same response—the tit-for-tat understanding. mately, on deterrence. We can’t get rid syndrome that led us through the en- The President, yesterday, also of that equation. If you know you are tire arms race in the first place? stressed the fact that national missile going to suffer some damage, the judg- That arms race is completely trace- defense is only one part of a com- ment then becomes, well, how much able. We were the first people to actu- prehensive national security strategy. damage? If we suffer that amount of ally use an atom bomb. People forget I could not agree more; it is. But let damage, what is it going to take in re- that. We used it for a noble purpose—to me underscore that missile defense will turn to be able to guarantee that they end the war and hopefully save lives. do nothing to address what the Pen- will, too? So, in effect, you are pushed But we used it. After that, quickly tagon itself considers a much more back into a corner where you are still Russia did an atom bomb. Then we did likely and immediate threat to the dependent on the mutual assured de- the hydrogen bomb. Russia did the hy- American homeland from terrorists struction equation—the very equation drogen bomb. Then we did long-range and from nonstate actors, who can we have lived with since the beginning bombers. They did long-range bombers. quietly slip explosives into a building, of the Cold War in 1945. We put them on submarines, and they unleash chemical weapons into a

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4138 CONGRESSIONAL RECORD — SENATE May 2, 2001 crowded subway, or send a crude nu- the PAC–3, the THAAD, and the Navy gimes bent on terrorism and accidental clear weapon into a busy harbor. theater-wide TMD systems, but they or unauthorized launches. The Clinton I ask my colleagues: What do you prohibit us from developing or testing administration invested a great deal of think is the more likely scenario? Do capabilities that would enable these time and diplomatic effort convincing you really believe that North Korea systems to shoot down ICBMs. Russia that the threat is real and it af- will leave the trail of a missile, a tar- Russia might not be happy about fects us both. We must make the same getable trail and send a missile to the that, but I believe they would prefer effort with China. If we fail to take United States, and like the sleeping that to a system that would really this task seriously, we will jeopardize giant that was awakened in Pearl Har- scrap the entire treaty and all the limi- stability in the Pacific. bor, have us return the compliment, or tations on strategic defenses that The President’s proposal on NMD do you believe if they were intent on would come with it. lacks specifics and his intentions on doing injury to the United States, they I agree that the strategic situation the ABM Treaty are vague. He and his would take a little bottle of anthrax we confront today is worlds apart from advisors know that the American peo- and drop it in the water system in the one we faced in 1972, but nothing in ple will not support an expensive, inef- Washington, DC? this changed environment suggests fective NMD system, or one that comes What do you think is more likely? Do that we will be better off by walking at the expense of a Treaty that has you think it is more likely perhaps away from the ABM Treaty. If some- made them safer over the last 20 years. that some rogue nation might say: how Russia and China are not per- So to sweeten the President’s bad news Wait a minute, they have the ability to suaded by President Bush’s assurances on these two issues, he promised— knock down our missile, so let’s put that our missile defense system is not again without any detail—to unilater- one of these illegally purchased weap- aimed at undermining their nuclear de- ally reduce the U.S. arsenal of stra- ons in the marketplace—because we terrent capabilities, and instead they tegic nuclear weapons. are not doing enough to stop prolifera- perceive a growing threat to their in- The proposal to unilaterally reduce tion internationally so they can go out terests, they will act to counter that U.S. nuclear stockpiles is an important and purchase a small nuclear weapon— threat. We will not be safer if our NMD and overdue first step toward reducing and they bring it in on a rusty freight- system focuses their energies on devel- the nuclear danger. Unfortunately, be- er under the Verrazano Bridge, and det- oping—and eventually selling—new fore the President can make good on onate a nuclear weapon just outside ways to overwhelm our defenses. this promise, he will have to convince New York City. The ABM Treaty can be amended to his Republican colleagues in the Con- I would like to see us focus on those reflect our changed security environ- gress to repeal a provision in the FY 98 things that most threaten us, not cre- ment. But to abandon it all-together is Defense Department Authorization bill ate these notions of false threat that to welcome an arms race that will that prohibits the reduction of stra- require us to debate for hours to stop make us more vulnerable, not less. tegic nuclear delivery systems to levels something that does not necessarily The President made a point of an- below those established by the START promise a very positive impact for the nouncing that he will begin high-level I treaty. long-term interests of our Nation. consultations with our allies about his Senate Democrats have tried for the Obviously, the President gave very plans for NMD and he stressed that he last three years to repeal this provi- few details yesterday because he can- would seek real input from them as he sion, which prevents exactly the kind not. We do not have an architecture moves forward. This is critical. Even if, yet. We do not even have a budget yet. of nuclear reduction President Bush as can be expected, our allies in Europe has spoken about. But they have been We do not even have enough successful and Asia accept a U.S. NMD system, tests yet to suggest we should be rap- stymied by a Republican leadership they have a lot at stake in how we de- idly deploying and abrogating the ABM that believes the U.S. should not move velop and deploy that system. The Treaty. What are we talking about? to START II arms levels even though The President said he wants to pur- President must take their views into the Senate ratified that treaty in sue technology that would allow us to account as he determines what archi- 1996—before Russia has done so. intercept a ballistic missile at the tecture he will pursue and the timing I hope we can move immediately to boost phase when they are moving the of deploying. Clearly, these are impor- repeal this prohibition and begin the slowest. I agree with that. In June of tant discussions that will require more process of cutting our strategic arsenal 2000, I called on the previous adminis- than one or two cursory consultations. in half—from more than 7,000 warheads tration to explore the technology for a The administration must also pay today to the 3,500 allowed under boost phase intercept system which close attention to our allies concerns START II. While those reductions are would build on the current technology about Russia. Because they are keenly underway, the President should imme- of the Army’s land-based THAAD and aware that a fearful, insecure Russia is diately proceed to talks with Russia on the Navy’s sea-based theater-wide de- a dangerous Russia, they have consist- a START III agreement, which could fense system to provide forward-de- ently stressed the importance of in- bring our arsenal to below 2,000 war- ployed defenses against both theater cluding Moscow in our discussions on heads and codify similar, transparent, missile ballistic threats and long-range NMD. Let me be clear: the importance verifiable and irreversible reductions ballistic missile threats. of working with Russia as we move for- by Russia. I welcome President Bush’s commit- ward is not to suggest that Moscow has Mr. President, for 40 years, the ment to investing considerable re- a veto over our missile defense plans. United States has led international ef- sources needed to make those systems But we have an obligation to avoid uni- forts to reduce and contain the danger capable of reaching the speeds nec- lateral steps that will throw our al- from nuclear weapons. We can continue essary to intercept an ICBM. A for- ready tenuous relations with Russia that leadership by exploiting our tech- ward-deployed boost phase intercept into further turmoil. Serious discus- nological strengths to find a defense system would allow us to target rel- sions with Moscow on amending the against ballistic missiles, and by ex- atively small ballistic missile arsenals ABM Treaty—even if they are not ulti- tending that defense to our friends and and shoot down a very few accidental mately successful—will allow us to allies. But we must not jeopardize sta- or unauthorized launches. move toward NMD deployment trans- bility in Europe and Asia by putting Deploying such a system, even parently and with minimal provo- political ideology ahead of commit- though it might require amendments cation. ments that have kept us safe for dec- to the 1997 ABM Treaty Demarcation As with Russia, if an NMD decision is ades. Agreement, would establish the line be- made absent serious discussions with f tween theater missile defense systems China, the leadership in Beijing will that are not limited by the treaty and perceive the deployment as at least BETTER EDUCATION FOR STU- the strategic defenses that the treaty partially directed at them. The Admin- DENTS AND TEACHERS ACT—MO- prescribes. istration must try hard to reach a com- TION TO PROCEED—Continued In a nutshell, these agreements allow mon understanding with China that Mr. KERRY. Mr. President, I ask the United States to deploy and test there is a real threat from isolated re- unanimous consent to proceed for a few

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4139 minutes within my hour on the motion of citizenship, who have the capacity in into, a false equation of reform. We in- to proceed. an age of managing more information sist there be adequate funding of those The PRESIDING OFFICER. Without to be able to process the information communities that simply do not have objection, it is so ordered. and translate it into good civic activi- the ability to be able to make the dif- Mr. KERRY. I thank the Chair and ties, the acceptance of values, the ac- ference. That is the best of what the my colleagues. I will be brief. I see the ceptance of family responsibilities, the Federal Government exists for in the Senator from Maryland is here, as well acceptance of community responsibil- sense we assert a national priority, as others. ities, then every student, indeed, better something in the interest of everybody Mr. President, I do not think there is have the best of opportunities. in this country—educating our kids, a person in the Senate who does not I have joined with JOE LIEBERMAN, making sure they have values, making view education as the single most im- EVAN BAYH, MARY LANDRIEU, BLANCHE sure they are in safe communities, portant domestic priority this year. A LINCOLN, JOHN BREAUX, TOM CARPER, where they can grow up to full citizen- number of us have been working for a and a host of Democrats in agreeing we ship. We share the capacity of our long period of time to advance the dia- have to change the dynamics of this de- country to be able to guarantee that no log with respect to education. Indeed, a bate; that we need strict account- child is left behind. couple of years ago, we Democrats were ability; that we cannot put money into In the budget that President Bush prepared to move forward on the Ele- a school and allow it year after year as has presented, with only a 5 percent in- mentary and Secondary Education Act. a consequence of some kind of reform crease in disadvantaged children’s We were prevented from doing so be- to fail. But everybody in this institu- funding, how can one possibly live up cause, frankly, our colleagues on the tion knows there are countless commu- to that promise? This is not a political other side, for political reasons, were nities in the United States of America fight. This is not a political food fight. unwilling to allow President Clinton to that just cannot afford to do the ba- This is not just Washington somehow be the person who signed a bill that sics. Property tax is what funds edu- being the same. passed education reform in the coun- cation. Come to Lawrence, New Bed- I respect President Bush’s effort to try. ford, or Holyoke, MA, or countless change the tone and be bipartisan. Politics trumped real reform. Poli- other communities in America where Right now, the only bipartisanship has tics trumped, once again, the interests they don’t have the tax base, particu- been movement on our side of the aisle of young people in our country. larly through the property tax, where to consolidate the programs, to move I remember JOE LIEBERMAN, others, people are on fixed incomes trying to toward a more sensible regime for ac- and myself talking for hours with Paul hang on to a home and cannot afford countability. The question we are ask- Coverdell, our late colleague, with higher property rates. In many States, ing is, where is the bipartisanship on Slade Gorton, and others trying to find there are limits on what can be raised the other side of the aisle that moves the common ground so we could move on the property tax—mine among toward us with respect to this critical forward on this critical issue. them. element of funding? Here we are this year with Demo- The question is, how do we provide You can have accountability, but if crats having moved in ways that many adequate numbers of teachers to have a you don’t have adequate funding to people would have argued they never class size where a teacher can actually make it happen, it is a complete sham would have moved previously. There cope with children? How do we keep and waste of time. Likewise, we believe has been a challenging of the ortho- school doors open into the evening if you can have a lot of money but if you doxy that has governed the debate on the community can’t pay the don’t have the accountability, it is education for a long period of time. So custodians or the additional teachers equally a sham and waste of time. If we we have a consolidation of programs. or have remedial classes? How do we are prepared to change the dynamic We have an effort to deal in a realistic put in the technology if they can’t af- and provide this country with edu- way with the problem of account- ford to buy it? cation reform it deserves, we must be The bottom line is, we have put in ability. prepared to adequately fund the reform place in this bill an enormous change, It used to be there were some pretty effort. a sea change, in how we are prepared to I reserve the balance of my hour, and one-sided discussions. Some people on try to encourage accountability, to en- I ask unanimous consent I be per- the other side of the aisle thought it courage reform and encourage change. mitted to speak again within the hour, was just good money chasing after bad, But we cannot do it if there isn’t an if necessary. and so they did not even want to talk adequate commitment of resources for The PRESIDING OFFICER. Without about resources. All the discussion was IDEA, the greatest burden we hear objection, it is so ordered. about an alternative to the public edu- principals talk about in schools, to the The distinguished Senator from cation system—fundamentally, vouch- capacity to be able to have a teacher Maryland is recognized. ers. On this side there was fundamen- for certain classes. We have some Ms. MIKULSKI. Mr. President, I rise tally only a discussion about school schools where 80 percent of the chil- to speak on the motion to proceed to construction or class size. Nothing hap- dren in the school do not have an alge- the Elementary and Secondary Edu- pened. Most important, nothing hap- bra teacher. Teachers are teaching out cation Act, and I yield myself 15 min- pened for our kids. The schools did not of field. utes. get much better, except in isolated in- Test students all you want, but if I hope we will proceed. I intend to stances where extraordinary leadership they do not get the fundamentals, they vote for the motion to proceed so we managed to break through. will be in deficit from the beginning. can get on the bill and get serious in The fact is that 90 percent of Amer- This is a choice for the Senate. Ei- the Senate about addressing the com- ica’s children go to school in public ther we fund education reform to the pelling human needs that exist in schools. There are not enough vouchers degree that will empower it to actually America’s public schools. and there are not enough private and take place or we will invite an incred- I believe education is the most im- parochial schools to offer enough ible new round of cynicism. We will portant crucial rung in our Nation’s choice to all of the students of this pass something and call it reform, and opportunity ladder. During the coming generation to get the education they teachers and parents across the coun- days, we will discuss how we can need by alternatives. try will say: Thank God, reform at strengthen this opportunity ladder. The bottom line is if 90 percent of last. It is coming. But if you don’t em- The Elementary and Secondary Edu- America’s children go to school today power them to be able to do it, you can cation Act is only the first step. It sets in public schools, if we are going to see the next wave of discussion. It will the framework for reform, and also it have the workforce we need for the fu- be: The public schools have failed; they will establish how we will address our ture, but equally important, if we are did not live up to the expectations. We public education. going to have the skilled labor force we gave them the opportunity, and they We do need reform in our public need, and much more important, if we didn’t make it. Now it is alternatives. schools, and at the same time we need are going to have young people who I am not going to buy into, as I think to have the resources to put the re- grow up to understand the obligations many of my colleagues will not buy forms into action. However, if we put

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4140 CONGRESSIONAL RECORD — SENATE May 2, 2001 the reforms on the Federal law books A weakness in the bill is that it fo- These are the issues on which I look but do not put the resources in the cuses entirely on schools and not forward to working. I believe we can Federal checkbook, this will be a hol- enough on the communities where chil- move the bill on a bipartisan basis. low opportunity. dren learn. Everybody does not en- Let’s have reform with resources so we There are some on my side of the tirely learn in school. Many people can have results. Those are the three aisle who question whether we should learn in structured afterschool activi- R’s I want: Reform, resources, and re- embark upon testing. First, I stand ties and in the community. This is why sults. Let’s get our kids and our coun- squarely in the corner of supporting I will offer an amendment on commu- try ready for the 21st century. We have the concept of accountability. I also nity tech centers, to establish 1,000 made great progress in the past, and I stand squarely in the corner of sup- community tech centers, throughout know we can do so in the future. porting testing, but making sure the the United States of America. That I yield the floor. I yield back any Federal Government does pay the bill. means that they can be run by non- time I may not have consumed. In the State of Maryland, we have profits including the Boys and Girls The PRESIDING OFFICER. The dis- had testing for more than a decade. Clubs, faith-based organizations, and tinguished Senator from Florida is rec- Testing enabled us to provide an inven- Latino heritage organizations. Let’s ognized. tory of where our schools were, what get tech into the community. In some Mr. NELSON of Florida. Mr. Presi- schools needed intervention and what instances our children are in schools dent, I would like to be recognized on type of intervention. that are so dated they cannot be wired. the motion. I view testing like a CAT scan. It We want to make sure our kids are The PRESIDING OFFICER. The Sen- gives an inventory of where the prob- wired for the future. ator is recognized. The minority has 16 lems might be and identifies other We also need to focus on teachers, re- minutes 6 seconds remaining. areas of potential problems. I believe cruiting the best, training the best, Mr. NELSON of Florida. Mr. Presi- we should proceed with testing and and retaining the best. I am pleased dent, I listened closely to the eloquent comments of our colleague from Mas- also aggressively fight for the re- the education bill authorizes almost $3 sachusetts this morning. It was his late sources. At the same time, we should billion for teacher training. At the brother, President Kennedy, in 1962, not hold up on getting an inventory of same time, we could use more. I believe who said in a message to the 87th Con- where we are. we need at least $2 billion more for In keeping with this principle, I sup- teacher training to bring them into the gress: ‘‘A child miseducated is a child port six priorities for educational re- classroom and also to upgrade their lost.’’ Today, nearly four decades later, form. One is something I am calling skills. these words ring truer than ever. Far ‘‘digital opportunity.’’ I know the Pre- Another priority I believe we need to focus on is smaller class size. Everyone too many of our children, particularly siding Officer is deeply troubled about poor and minority children, remain the need to have more people educated will tell you we do need smaller class sizes. I will be supporting Senator miseducated today despite efforts over in math, science and technology in the years to strengthen and reform order to meet our growing national se- MURRAY’s effort to continue to try to hire 100,000 new teachers for our class- America’s public schools. The latest curity needs. The Rudman-Hart report rooms. tests by the National Assessment of clearly indicates we need to have chil- Coming back to where children learn, Educational Progress, for example, dren technologically competent, not I support structured afterschool activi- showed that only 32 percent of our Na- only for the new economy but also for ties. Children need structured after- tion’s fourth graders were proficient or the new security threats facing the school activities where they can learn, better in reading and more than one- United States of America. Issues such have fun, and be safe. In many of these third of the fourth graders read below as cyberterrorism are an example of neighborhoods this is absolutely cru- basic minimum standards. That is un- why we need to make the availability cial. acceptable, especially today, when the of educational technology a priority. Speaking of safety, this then takes consequences of such poor performance I worked very hard to have a series of us to school modernization. The aver- have never been greater. amendments creating digital oppor- age school in the United States of In this era of rapid technological tunity. One, a national goal that every America is 42 years old. Many of them change, business and industry require child be computer literate by the time are crumbling. Many are dated. Some highly skilled, highly educated work- they finish the eighth grade. I enjoyed are even dangerous. We really need to ers. If we fail to improve our school bipartisan support on this issue in the work out how we can be a partner with systems, many of our young people will committee and it passed. To make the State and local governments on the im- be locked out of well-paid jobs and de- goal a reality, I offered an amendment provement of schools to modernize nied opportunities to succeed in a to make technology funds more robust those facilities. changing global economy. We cannot and more effective. The BEST bill au- The other area where we also need to deny them that opportunity, nor can thorizing $1 billion for education tech- keep our commitment is on funding for we deny this Nation the talent and nology. IDEA, the Individuals with Disabilities skills it needs to grow and prosper. The new technology block grant that Education Act. The Federal Govern- This 107th Congress must lead so no President Bush is advocating is some- ment passed, some years ago, a man- child is left behind. thing I will support because it will date that local school districts are sup- As for their leadership thus far, I mean the programs will no longer be posed to come up with individual edu- wish to compliment many of our col- scattered through the Department of cation plans for children who are dis- leagues who have engaged in tough and Education. As we are dealing with the abled. We promised them if they did bipartisan negotiations aimed at ensur- scattered problem, we also have to deal that, they would get 40 percent of the ing that we adequately address our Na- with the skimpy problem and make cost from the Federal Government. tion’s educational priorities. The ad- sure we have the funds for hardware, Guess what. We only provide about 15 ministration has proposed one plan, software, and teacher training. percent. In Maryland it’s 9 percent. I and some parts of it are very good. I know, also, we are not considering believe we should keep the policy, but They are certainly in step with the re- the e-rate in ESEA. Sometimes in leg- let’s really, now, meet that mandate. If forms many of us have advocated in islation the best thing we can do is do over the next 3 years we could work the past—particularly as I tried to ar- no harm. The Bush administration every year to increase the funding for ticulate in this last election cycle in talked about eliminating the E-rate or IDEA, the money would go right into Florida. But other parts of the admin- consolidating the E-rate with ESEA the school districts. It would help the istration’s plan are seriously flawed or technology programs. I am pleased local communities. It would alleviate a are grossly underfunded. At the outset that in our discussion with the White lot of the financial pressure on the we must decide to put partisan inter- House they clarified the E-rate will be state and locals to serve our special ests aside and do what is right for our a subject of further discussion in the kids, without us becoming the school- children. future. I am a big supporter of the E marm or chairman of the school board By the way, more than 90 percent of rate. I hope we do not change it. in local school districts. our children attend public schools. We

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4141 must debate and resolve the important committing this Nation to a tax cut port cards from their school districts issues that still separate us, keeping in that could overwhelm the projected on the performance of their children’s mind our common goal of giving every surplus. It is a tax cut that is said to be schools, not just their individual child the opportunity to succeed, not $1.6 trillion, but in a real estimate of child’s report card. If, despite our best only in school but also in life. what it would cost in terms of deficit efforts, a school continues to fail, they The teachers and public schools in reduction, it is $2.5 trillion. It would be ought to have a choice so their kids are Melbourne, FL, along with my parents, reckless to use the surplus for that in- not trapped in failure. But when the gave me my start and instilled in me a stead of investing any increase in Fed- Nation’s taxpayers are paying for it, lifelong love of learning. Public ele- eral education over the next 10 years. the choice ought to involve public mentary and secondary schools gave The White House claimed its proposed schools, and not private ones, if it is me the opportunity to go on to college budget would provide an 11.5 percent public school money. and to law school, and to serve in the increase for education in the coming I believe our negotiations are on the Army and the Florida legislature and fiscal year. But the real increase would right track for providing options for the U.S. House of Representatives. be half that amount, and could leave transfers to charter schools, magnet That public school education also al- the States with unfunded mandates, schools, or other schools within a dis- lowed me to serve as Florida’s State something the Congress in 1995 vowed trict, or for extra help from outside tu- treasurer and as a member of the State that it would never do—put unfunded toring to summer school. cabinet, as a member of the State mandates on the States. I want to make sure that we don’t di- board of education, overseeing public If we are truly to leave no child be- vert public school tax dollars to pri- education. Now I have the privilege of hind, then we can do a whole lot better. vate schools through vouchers. We being here as a Member of the Senate. We must do better. need to improve public schools that I am forever indebted to my teachers In my view, there is no higher pri- perform poorly. We don’t need to aban- and to those schools. Those schools ority than providing a first-rate edu- don them. As we make our schools and were good ones, located in a growing, cation for the children in our public local school systems accountable, we prospering community along the east school systems. Our Federal Govern- also need to give them more control coast of Florida. I was blessed. As we ment, which now provides just 7 per- and greater flexibility to use the Fed- know and as the recent reading scores cent of the money for all of our schools eral funds in ways that better meet demonstrate, not every child is that nationally, ought to provide a larger local needs. I believe that we can con- fortunate. Too many of them come investment for school construction, for solidate programs and cut bureaucratic from broken families, too busy putting dropout prevention, for smaller and strings without sacrificing those Fed- food on the table to worry about the safer classes, for teachers who are both eral initiatives that are an essential absence of books in their homes. Too well trained and well paid, and for pro- part of the solution. For example, we know that children many attend failing schools in failing grams that assist children with pre- learn better in smaller classes. Why in neighborhoods, or crumbling schools school education and afterschool care. the world would we want to abandon with overcrowded classrooms. Too The amendments we adopted last our national commitment to reducing many have outdated textbooks, insuffi- month in our Senate budget resolution class size, to building new schools and cient numbers of books to go around, would strengthen the Federal invest- renovating the old ones if we know and tired teachers who believe they ment in public education and children that creates an environment in which lack the support they need. with disabilities by more than $250 bil- children can better learn? We can do Thanks to economic growth and the lion over the next decade. We can also better. fiscal discipline imposed by the Con- help failing schools succeed by In February, I joined with 10 other gress, we now have a unique oppor- strengthening our programs for dis- Senators in introducing the Public tunity this session to help our States advantaged children and targeting ad- Education Reinvestment, Reinvention, and local school districts address these ditional Federal money to needy stu- and Responsibility Act, which we call problems. We have an opportunity not dents and to the poorest schools, some the three Rs. Its aim is to streamline only to provide more of the financial represented by the distinguished Sen- the Federal role in education and help needed but also to ensure that ator who honors me with his presence eliminate some of the bureaucratic those dollars help produce a better edu- here, the distinguished Senator from strings that hinder local school dis- cation for our children. We must not West Virginia. tricts. Its goal is to establish a clear squander that opportunity now. Along with increased support, the national priority to ensure that every I am encouraged that the White education bill that Congress enacts child has a chance at a quality edu- House has emphasized education. I also this year should provide for greater ac- cation. These priorities include—and am encouraged that progress has been countability. It should condition future let’s think about these; they are com- made in the negotiations so that we help on academic performance stand- mon sense—closing the achievement can give the States and school districts ards set by the States and measured by gap between poor and more affluent greater flexibility on spending while testing students yearly and uniformly children; helping immigrant children also holding them more accountable within each State. learn English; improving teacher qual- for results. These are goals we all We also need to ensure that the ity; reducing class size in the early share. States set meaningful standards and grades; spurring innovative practices; I am confident that we can resolve measure real progress. and promoting choice within the public our remaining differences on this legis- We can do all of this in part by using school framework. lation and work out the details on how the National Assessment of Edu- I am pleased that many of our pro- best to achieve those goals that we cational Progress tests of fourth and posals are now embraced in the com- share. But I am also convinced that the eighth grade students and as a way to mittee bill that is now pending before administration’s commitment to leave audit the results of the yearly State us. As our deliberations proceed, I will no child behind will be nothing more reading and math tests that would be be fighting to ensure that they receive than an empty slogan unless we bolster provided under this bill in grades three adequate funding. it with sufficient resources needed to through eight. We must succeed in this endeavor. get the job done. Reform without re- So the States do their thing, with Failure is not an option. We cannot af- sources is not reform. their own accountability, but we then ford to abandon our young people. In In this regard, the President’s de- will have a national measure, a stand- the long run, such failure would be far mand for excessive tax cuts contradicts ard by which to compare the States more costly than investing in quality his pledge to do right by America’s with the National Assessment of Edu- education for all of our children. schoolchildren. I believe that it would cation Progress test. This will then en- Let us make sure that no child is be reckless to risk a return to the an- able us to confirm that Federal dollars miseducated, and let us make sure that nual budget deficits that you and I, Mr. were well spent. no child is lost. President, experienced in the 1980s and Parents have an important role to I thank the distinguished Senator return to mounting national debt by play. They are entitled to timely re- from West Virginia for being kind

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4142 CONGRESSIONAL RECORD — SENATE May 2, 2001 enough to be interested and to be on 30 minutes of postcloture debate be we also do not want to become victims the floor as I present my maiden equally divided between the majority of the process. speech on education. and Senator HOLLINGS from the minor- I saw last year where we spent weeks I yield the floor. ity and that the time be deducted from on the Elementary and Secondary Edu- The PRESIDING OFFICER. The time each individual Senator as provided cation Act, and where we had other of the distinguished Senator has ex- under rule XXII. items of important business that would pired. The time of the minority has ex- The PRESIDING OFFICER. Without interrupt the education debate, and pired. objection, it is so ordered. where we would return to the edu- Mr. BYRD. Mr. President, I ask unan- Mr. THOMAS. Madam President, I cation debate, and while there was imous consent that the Senator from am waiting for one of our Senators. In never a formal filibuster, the effect Florida may have 3 additional minutes. the meantime, let me again say how last year was to have a filibuster by The PRESIDING OFFICER. Is there important it is that we move on with amendment and by process, so that ex- objection? Without objection, it is so what we started to do in this Chamber. traneous amendments prevented us ordered. We have been working on the education from ever getting a final vote on the Mr. BYRD. Mr. President, I thank bill now for a very long time. The com- Elementary and Secondary Education the Chair and thank the distinguished mittee has done a great deal of work. Act and the reauthorization of this im- Senator from Florida for yielding. I But we find ourselves now sort of post- portant bill. The losers, as always, are thank him for the thoughtful remarks poning consideration of the bill. This is the American people and, more criti- he has just made. I heard him as I was the third time I have been in this cally, the children of this country. in my office, and I came to the floor be- Chamber today to ask for another hour I urge my colleagues to allow us to cause I knew I would hear something of postcloture activity. proceed with the bill. I know there are worth listening to. I gave some time to The time has come, certainly, for us good-faith negotiations occurring on the Senator from Florida. I am very to begin consideration of the bill, to important subjects. I have been in- impressed with his dedication to his begin to move forward, to begin to talk volved in those. I think they are in Senate duties, and I appreciate his love about those areas of disagreement, and good faith. I applaud the efforts that for the Senate. I am going to have a to begin to offer the amendments that are ongoing. But we have spent a long few remarks later concerning edu- need to be considered. time on this issue. The differences now cation and our schools and this legisla- I think, clearly, this bill is one of the are fairly small, whether it be in fund- tion. I will want to scan very care- most important issues on which we will ing or whether it be in policy. It is fully—perhaps it would not be scan- be working. We have talked for a long critically important that we go ahead ning—I will want to study very care- time about the need for accountability. and proceed to consider the bill and fully the words of the Senator from We have talked for a very long time begin the process of offering amend- Florida before I make my own re- about the need for additional funding. ments and debating this issue. marks. The process of what occurred in the I thank him for his contribution to We have talked a long time about the Health, Education, Labor, and Pen- the Senate and for his contribution to flexibility that should exist when we sions Committee and the bill that was the debate on this extremely important have Federal money going to local and voted out of that committee, as well as subject. I look forward to reading his State governments so that there can be the bipartisan policy agreements that comments and hearing him from time enough changes made to allow for the have been reached through negotia- to time. It is a pleasure to work with differences that exist in communities. tions, have produced, I suspect, 95-per- him. Certainly that is important. (Mrs. CLINTON assumed the chair.) We have talked a lot about how we cent agreement now on policy. In both Mr. NELSON of Florida. Madam need to help teachers become more effi- of these instances—both the committee President, just in the remaining mo- cient and more effective in that they and the negotiated agreement—we ment, I say to the Senator from West are the most important aspect of edu- have taken a tremendous step forward Virginia what a tremendous role model cation. in education in this country and have he has been to all of us new Senators, We have talked about parental choice made a tremendous move toward real including the Senator now presiding in so that students can move between educational reform. the chair. What a tremendous pillar of public schools in the various commu- Let me mention a few of the areas. historical example he has been in car- nities at the choice of the parent. Cer- Let’s reiterate them again. We must rying forth the traditions of the Senate tainly that is an important item. have accountability in educational re- and imparting those traditions to the There will never be agreement on all form. To pour billions of dollars more new Senators, and then in his vision these things among all of us, but cer- into the Federal contribution to edu- for the future to keep alive those tradi- tainly it is an issue with which we have cate our children without requiring tions. to proceed. I look forward to that. real accountability would not only be I have been so educated sitting in Madam President, I yield the floor to foolhardy but would be a waste of tax- this Chamber listening to Senator my friend from Arkansas. payers’ dollars. So we must have ac- BYRD bring in the history of the world The PRESIDING OFFICER. The Sen- countability. to make his point on a particular argu- ator from Arkansas. The bill that is before us—the nego- ment in which he might be engaged. He Mr. HUTCHINSON. I thank the Chair tiations and what has resulted from recalls to mind, for me, the great ora- and thank the distinguished Senator those negotiations—brings us real ac- tors who have been in this Chamber. from Wyoming for his leadership in countability, and it transforms the Again, that is another part of he being this debate. way we have thought about account- a wonderful role model for all of the Madam President, I will just take a ability for the last 35 years. What it new Senators. few moments to again speak on the has been in the past has been asking So I am eternally grateful, and I am very important issue of education and the local schools, local education au- especially honored that he would think the legislation we have pending before thorities: Are you spending the money me worthy of coming and listening to us, and to urge my colleagues to sup- the way we prescribed that you spend my comments today on education. port the motion to proceed. it? That is what we have defined as ac- Mr. BYRD. Madam President, I I believe we have spent close to a countability. Did you fill out the pa- thank the distinguished Senator for his week—perhaps more than a week— perwork correctly? Did you cross the generous and overly charitable re- talking about education without hav- t’s correctly? Did you dot the i’s cor- marks. I thank him very much. ing yet taken a single vote on an rectly? Did you spend it the way we Mr. NELSON of Florida. Madam amendment. prescribed you to spend it? President, I yield the floor. I believe this issue is of such great Whether it made good sense locally The PRESIDING OFFICER. The Sen- importance that while we do not want or not, whether it was in the best inter- ator from Wyoming. to shortchange the amount of time we est of the children or not, if it con- Mr. THOMAS. Madam President, I spend on this issue, and while we do formed with what we in Washington be- ask unanimous consent that the next not want to short circuit the process, lieved was the right way to spend it, we

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4143 said, then that is accountability. You tem better. We suggest in this legisla- to eliminate, we hear from those con- have met the accountability require- tion that real consequences mean stituencies. But let the educators of ments. greater parental choice. this country realize, there is no reduc- We have changed that and gone in a We also say that where a school will tion in funding. In fact, the funding is whole new direction. We have said not change and will not teach, those dramatically increased in this legisla- every child ought to be tested every parents should be able to find supple- tion. year. We ought to know whether or not mental services to assist in the edu- The flexibility for local educators to children are learning. We are taking a cation of their children. Parents should use those resources in the area they giant step away from how old are you, not be forced to sacrifice the future of feel is most essential for local edu- what grade should you be in, have we their children because they happen to cational reform is enhanced under this shuffled you through the system, to be in a school that will not make the legislation. Whether that is class size what do you know. academic investment in those children. I have heard the critics of testing and We say, yes, if a parent has children reduction, hiring more teachers, the testing proposals. Testing is by no who are in a school that after years whether it is tutors, school nurses, means perfect, but I ask my colleagues, does not improve and is still not doing whether it would be a form of merit is there a better way to measure what the job, is still a failing school, the pay, paying the best teachers more, en- children know? The answer is, of parents ought to be able to take those hanced flexibility would be there for course, no. That is the best tool we children to a Sylvan Learning Center these local educators under this legis- have to know whether or not children or they should be able, with their title lation. So consolidation is a very im- are progressing academically, whether I dollars, to hire a tutor. They ought to portant part of what we are doing in or not they should be moved ahead and be able to take that portion of the Fed- this education reform. promoted. That is very important. If eral contribution to local education Then what I hope comes out of the you are going to have real account- and ensure that their children are not ongoing negotiations is a form of the ability, you must not only measure sacrificed in a failing system. President’s proposal regarding charter through testing; there must be con- Accountability is a huge part of the States. This was a bold initiative that sequences to those schools that are not legislation that is before the Senate President Bush campaigned on and teaching, that are not succeeding, that and that I hope we will begin voting on spoke eloquently about and that has are not preparing their students to go soon. been whittled down and whittled down out into the workplace and compete in A second aspect of this legislation is and diminished and deluded, but there this global economy. the consolidation that occurs. One of is a form of it still remaining. We are Under this bill, there are real con- the frustrations of local educators for talking about perhaps seven States as sequences for those schools that will many years has been the plethora of a demonstration project with perhaps not teach and will not change. Yes, ad- programs that we have created at the 25 local educational authorities or ditional resources; yes, additional help, Federal level, oftentimes well in- school districts that would be given the but in the end, if a school will not tended, oftentimes with a very good option of applying for this new status change and it will not teach and the purpose in mind, and frequently never created called charter States. In last children are being trapped in a school funded by the Federal Government, year’s deliberations, we called it the that is handicapping their future, then just authorized without any funding. Straight A’s Program. we say, in this legislation, there should Sometimes when we question officials be consequences to those schools. at the Department of Education about The concept is we will give States The best consequence, the best way how many programs they have, it is broad new flexibility to consolidate you hold schools accountable is to en- very difficult to get a clear, unequivo- streams of funding and to make local sure that parents have greater choices. cal answer. They simply don’t know education reforms in exchange for Yes, after schools are given an oppor- how many programs are under their ju- strict accountability standards. tunity to improve and to address the risdiction that have been created The concept of charter schools has shortcomings of failing schools, and through the years, since the depart- for years been used successfully across still they do not make the changes, ment was established, authorized, some the country. That is why they are in- then we would say parents should have funded, some not funded, some having creasing in number. We say to a char- the right to take those children and wilted away but still on the books. ter school: You have a waiver in effect move them to the public school of their They don’t know how many programs from local and State education require- choice. I would prefer that the choices there are. ments in exchange for results we ex- be expanded, but in the bill before us at We know that while it has been re- pect from what you are doing in that least there is the expansion of parental peated frequently during the debate on charter school. If it works at the local choice in the sense that they can go to education that we contribute between 7 school, why shouldn’t it work if we another public school. Competition is and 9 percent of the local school’s give States, the laboratories of democ- good in any sector in our economy. It budget from the Federal Government, racy, that kind of flexibility. So States is good in business and in education. we contribute about 50 percent of the would be given a new element of free- The public schools will be better when paperwork with which local educators dom and flexibility in exchange for a that element of competition is in- are required to comply. That is prob- performance agreement with the De- jected. ably the best gauge of how many Fed- partment of Education and the Sec- The evidence is overwhelming, eral mandates accompany that 7 to 9 retary of Education as to what they in- whether you look at Milwaukee, WI, or percent of the funding at the local tend to accomplish and how they in- whether you look at the State of Flor- level. tend to accomplish it and ensuring ida, that where you have competition, What the President has suggested that there is going to be increased an- you have improvement in the public and what the committee has produced nual yearly progress. schools. in the committee deliberations is a bill We recently heard from the Mil- that consolidates this plethora of Fed- That is a good deal for schools; it is waukee superintendent of schools, the eral programs into a more manageable, a good deal for States; and it is a good longest choice program in the Nation. more simple stream of funding for the deal for the American people. There His testimony was that the public local schools. The funding is still there will be a little bit of that proposal that schools in Milwaukee are better today but, as a result, there is far greater survives so that a few States can apply, because of the choice element, because flexibility than there has been in the and a few States will be willing to try parents of low-income children have past because we have consolidated it, to break out of the old mold. The re- the right to take those children and these many programs. sult will be an example that a lot of move them into a private, public, paro- That is something that needs to be other States will want to try in the fu- chial, or charter school where they done. Local educators acknowledge ture. have a whole range of options; that that. Yes, every program has a con- I commend the President for his choice has made the public school sys- stituency. When we try to consolidate, strong emphasis upon early childhood

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4144 CONGRESSIONAL RECORD — SENATE May 2, 2001 education and particularly his empha- kind of education reform they deserve, teachers, parents, school board mem- sis upon reading programs, his willing- and that will truly put meaning behind bers, and administrators who know the ness to triple funding for reading pro- what has become a very popular names of the children, know their prob- grams. So often the tragedy of shuf- phrase—‘‘leaving no child behind.’’ We lems, know their opportunities. fling children through the system all are leaving them behind today. We Every single one of us have a vested begins in kindergarten and first grade have an opportunity to leave far fewer interest in the success of today’s gen- and second grade, where the foundation behind. Every child can learn if given eration and future generations of is not adequately laid. The President’s the opportunity and the expectations. youth in this country. Therefore, we emphasis upon reading is to be com- This legislation, through account- have a vested interest in the improve- mended and is an important part of ability and flexibility, testing require- ment of our public education system. this legislation as well. ments, through increased funding, does For many decades Congress has de- One aspect that I and my staff have many good things in moving us in the bated numerous education issues, in- been involved in, that will not get a lot right direction toward greater edu- cluding the federal role and federal of attention but is going to be a very cational opportunity for every child in funding. Even after the completion of significant step, is the change that is America. I hope that we get on with it, this specific debate, discussions and de- made in the bilingual education pro- get on the bill, and pass the bill and bates will continue. The debates con- gram. send it to the President, who has been tinue because we are constantly seek- Historically, that has been a com- a dynamic leader on education reform ing ways to improve upon our public petitive grant program. Many States in this country. education system. However, we must be careful. One of that have had growing minority popu- I yield the floor. lations—particularly—in the State of The PRESIDING OFFICER. The Sen- the main reasons that I support Presi- dent Bush’s plan and S. 1 is because it Arkansas, with a growing population ator from Missouri is recognized. streamlines and consolidates many of have received almost nil under the cur- Mr. BOND. Madam President, I know the countless individual education pro- rent system. Because of the changes I am out of order, but I do not see a grams that exist. We have all read the made in the legislation, we will not representative from the other side. I reports and have heard several col- only have increased funding nation- ask unanimous consent that I may be leagues talk about the 760 education wide, but we will have a formula that allowed to proceed out of order for up programs scattered throughout 39 dif- will benefit many of these States such to 8 minutes. ferent federal agencies. According to as Arkansas and Alabama, and many of The PRESIDING OFFICER. Without the Education Commission of the the rural States that have fared so objection, it is so ordered. States, ‘‘In the 1999–2000 budget, the poorly under the past approach on bi- Mr. BOND. Madam President, I rise federal government spent almost $44 lingual education. In addition, there today to support President Bush’s edu- billion on elementary and secondary will be emphasis—in fact, a require- cation initiative and S. 1, the Better education programs. This funding was ment—on teaching English in these Education for Students and Teachers spread across 35 different education programs. Act. As a new member of the Health, This is a huge step in the proper di- Education, Labor, and Pensions Com- programs in 15 different federal depart- rection of reform. I know my colleague, mittee I have been involved in the tre- ments.’’ All the programs that exist today Senator BOND, is on the floor. I am mendous bipartisan progress that has were started with good intentions. anxious to hear what he has to say on been made in Congress thus far on pub- Some I have advocated and numerous lic education reform. I look forward to this subject. Senator BOND has been in- others I have supported. All along, all the swift conclusion of the debate, the volved in education for years. of us have tried to do the right thing. I will conclude by addressing an issue signing ceremony that will take place, But—what have they gotten us? that we have heard repeatedly on the but most importantly—the improve- Today, our good intentions have got- floor, and we are going to hear a lot ments to public education that will re- ten us burdensome regulations, un- more about it in the next couple weeks, sult to ensure that ‘‘no child is left be- funded mandates, and unwanted med- and that is the issue of spending. For hind.’’ dling. Parents, teachers, and local those who say this is an unfunded man- It is obvious that the American pub- school officials have less and less con- date upon the States, for those who say lic places improvement of our public trol over what happens in the class- it is unconscionable to do education re- education system as a top priority. room. The myriad of federal education form without fully funding the Elemen- Parents and communities are aware of programs make the jobs of our school tary and Secondary Education Act, I the same statistics that have been pro- administrators and teachers harder just say: Where have you been? This is vided to us. Our children are not read- than they should be. Teachers are the first time that the Republican Sen- ing at the basic level. Too many stu- taken of the task of teaching, pre- ate, with a Republican Congress and dents never graduate from high school. paring lesson plans, taking on after with a Republican President, has had U.S. students lag behind too many school student activities and instead an opportunity to reauthorize the countries in science and math. Our are researching for grant opportuni- ESEA. Historically, with a Democrat higher education institutions are ties, reading regulations, preparing ap- President and Democrat Congress, the spending too much money on remedial plications, filling out paperwork re- funding increases when ESEA has been education and businesses have to spend quirements, complying with cum- reauthorized, have been between 5 and billions of dollars teaching their em- bersome rules, and reporting on how 6 percent. So to demand that the only ployees what the schools did not teach they spend the little federal funding re- way you will support education reform them. ceived. We even have teachers and ad- is if there is a full commitment to I believe there is agreement that edu- ministrators that decide that the little funding ESEA for the next so many cation, while a national priority, is a extra federal funding is not worth the years is really disingenuous. responsibility and obligation of the time and effort that it will take to The President has made a strong state and local communities. The edu- apply and comply so they do not even commitment to dramatic increases in cation of our children has always been bother with the process. Instead of em- education funding—in fact, more than carried out and implemented at the powering parents, teachers, and local in any other Cabinet department—and local level. The American public is in- school officials we have empowered the has been willing to move even higher terested in the debate here in Wash- federal government and bureaucrats. on those numbers in the negotiation ington, but they understand what real- We have slowly eroded the oppor- process across the aisle. ly matters is what takes place in the tunity for creativity and innovation on So I just plead with my colleagues on schools and classrooms around the the local level and have established a both sides of the aisle that we not country—not the Senate or House system where supposedly the Olym- allow a bogus debate on funding to dis- floors. pians on the hill know what is best for tract us from the very important task The decisions that are going to im- the peasants in the valley. of giving the children of this country prove children in a particular school Knowing where we now are, how can and the families of this country the district are going to be made by the we afford to keep spending our federal

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4145 education dollars in the same way we From all the newspaper articles, tele- their area. Rural schools have prob- have been doing for years if it is not vision reports, letters to the office, et lems, urban schools have problems get- simulating academic success for our cetera, we know that the American ting qualified teachers in some of the children? We can’t. Not only will I not people want more, demand more, and core subject matters, and especially stand for it, but parents, teachers, deserve more when it comes to public math and science are lacking in quali- school boards, communities, and busi- education. Let’s put partisan rhetoric fied public teachers. nesses cannot afford to stand for con- aside, let’s move past the squabbling, We are trying to add some creativity tinued lackluster performance and fail- and let’s move forward on our common into the process by giving incentives to ure in some cases. goal. Let’s get on with our business. school districts to bring more people The President’s education plan and Let’s have our votes. We want to be a into the teaching profession. We must S.1 are huge steps in the right direc- positive contribution to educating our be a partner with the States. It is the tion recognizing that the answer to im- children for a lifetime of achievement. States that set the salaries and the proving public education does not lie Madam President, I ask unanimous benefits and the hours for the teachers. within the Halls of Congress or in the consent that the next 30 minutes of That is first and foremost what needs granite buildings of the downtown postcloture debate be equally divided to be improved. I don’t know of one Washington education establishment. between the majority and minority public school teacher making enough As an editorial from one of my parties and the time deducted from money—not one. Not even in our best homestate newspapers, the Southeast each Senator as provided under rule public schools are teachers making Missourian stated, ‘‘The answer to fix- XXII. what they are worth. Our teachers ing America’s educational woes rests The PRESIDING OFFICER. Without should be making what our major cor- with individual school boards and pas- objection, it is so ordered. porate CEOs are making. What they sionate educators. The bureaucrats Mr. BOND. Madam President, I sug- are doing is more important than what must reduce the red tape and mandates gest the absence of a quorum. any corporate CEO could possibly do. that are strangling our schools. Give The PRESIDING OFFICER. The They are determining if our democracy those who know best the time, talent clerk will call the roll. is going to stay intact. We should pay and incentives to finally fix public edu- The legislative clerk proceeded to them more. Most States are trying to cation.’’ I agree with what the South- call the roll. do that. east Missourian said. Mrs. HUTCHISON. Madam President, My home State of Texas is in its leg- The President’s proposal and S. 1 I ask unanimous consent that the order islative session now and they are look- stress high academic achievement for for the quorum call be rescinded. ing for ways to augment what teachers all students so the achievement gap The PRESIDING OFFICER. Without are paid, as well as benefits for teach- that exists will erode. The legislation objection, it is so ordered. ers. I imagine most States are trying stresses the importance of literacy and Mrs. HUTCHISON. Madam President, to do it because I think we all agree, making certain our children can read. I rise to speak again on the education public school teachers are not being We know that reading is a basic, essen- bill that I hope will be before the Sen- paid what they are worth. tial, and fundamental tool for personal ate very shortly. We have been talking We can do more at the Federal level growth and self-sufficiency. Reading about this bill off and on for 2 weeks. It where we can’t set the salaries and we provides the foundation for all other is time for the Senate to get down to can’t set the hours and we can’t set the learning and eventually for productive the real debate. school days. We can be creative. We employment. Accountability, as well as Let us bring the bill forward, propose can reach out, and we have done so, as flexibility, are incorporated in the amendments, let everyone have their in the Troops to Teachers Program Bush plan and S. 1 to ensure that the say, and send a bill to President Bush which would go for the many wonder- needs of the individual child and school he can sign. We have the opportunity fully qualified military personnel who can be addressed while also ensuring in this debate to change the course of are retiring, sometimes at the age of that our tax dollars are resulting in public education in this country, and I 40, 45. They are looking for a second ca- academic success. Finally, one of the believe it needs changing. reer. We want them to go into teach- most important aspects from my per- We have seen year after year, in the ing. Many of them have skills where spective—advocation for increased pa- last 25 years in this country, more there are teacher shortages. rental involvement. It is very simple spending going into public education For instance, a military person is flu- and well documented. Children whose from the Federal level but not im- ent in French, Spanish, Chinese, or parents are involved in their education provements in the overall education of Japanese. We have schools all over our from the very beginning are more suc- our children. I do not think throwing country that cannot teach these cessful in school and score higher on more money at education is the only courses because they don’t have quali- tests. Parents are a child’s first teach- answer. We are going to put more fied teachers. We are offering incen- er, and we can do things to help them money into education, but we are going tives for alternative certification to be better teachers. to do it in a reformed education sys- Parental involvement, especially as get those people into the classrooms in it relates to early childhood education, tem. In fact, we need to shake up the their areas of expertise, although they is something that everyone has heard system. don’t have educational certification or We have some very good public me talk a lot about, and they are going educational degrees. to hear more about it. schools in our country, but we don’t Someone has a math degree, but they There is bipartisan recognition that have a uniform standard of public didn’t get an educational degree. How- we must try something new to improve schools where we can say all of them ever, they are very qualified to teach our public education system. My dear meet the test of giving every child the math. Why not give them an incentive friend and colleague, the Senate leader chance to reach his or her full poten- to come into the classroom and teach from the other side of the aisle, Sen- tial with a public education. That the area in which they are expert? ator BYRD, said the following on the should be the standard. We must be My amendment will be called careers Senate floor in the 105th Congress: able to help each individual child learn to classrooms. It is modeled after the . . . when one goes the last mile of the way in the best way that child possibly can, Troops to Teachers Program. It says to and concludes from what he sees, from what if that child is going to reach his or her a retiree of a computer firm, perhaps he hears, and from what he reads, concludes full potential. That is exactly what we one of the wonderfully successful com- from analytical reports about public edu- are trying to do with the bill we hope puter firms that has done well and the cation that we are not doing well, that there to bring up soon. person can retire at the age of 40, 45, 50, is something working, then it seems to me I will talk about a couple of amend- or 55, if they would like to do some- that, in the interest of the public schools ments I want to include in the bill that thing else, they are not ready to retire, system, we may have to try a little different approach, else the confidence of the Amer- are not included now. One is to help why not encourage them to teach com- ican people in that system and the support of bring more good teachers into the puter skills to our young people in the the American people for that system are classroom. Every Member knows of a classroom by offering an incentive for going to erode. We see that happening. teacher shortage in a public school in an alternative certification for that

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4146 CONGRESSIONAL RECORD — SENATE May 2, 2001 teacher to be able to come into the public schools. I graduated from the With that attention and that focus, classroom with a minimum of hassle, a University of Texas and the University come great expectations. I believe as a minimum of bureaucratic red tape. of Texas Law School. I want every Congress we must seize that oppor- Let’s break the red tape. Let’s get the child to have the same opportunity I tunity. We must work together, both qualified people into our classrooms, had. I want every child to be able to go sides of the aisle, to work with the targeting the schools that have teacher to public school and compete in any President of the United States and shortages—rural schools and urban arena. I have competed in debates, I take advantage of that opportunity to schools. have had opponents who have had a creatively improve how the Federal My careers to classrooms amendment wonderful Harvard education, and I Government addresses education and will be just such an incentive that we won. I couldn’t have done that without to answer the question: What is the ap- hope will reach out to more teachers or the quality public education. propriate Federal role and how can we more potential teachers and bring I want every child to have the same best leverage that Federal role to leave them into the classroom and enrich the opportunity I had so that young people no child behind? experience of the young people in the with private school degrees and public I spoke a little bit to that point yes- classroom. school degrees will have the equal op- terday. It was to get Washington out of The second amendment I am plan- portunity to reach their full potential. the business. Remember, of the total ning to offer, along with Senator Madam President, the choices are amount of money spent on education SUSAN COLLINS, with the help of Sen- what make our country great. The for K–12 in this country, only 7 percent ator BARBARA MIKULSKI and others, is basis we must provide is quality public comes from the Federal Government— the single sex option for public schools. education. I am excited about the op- from the taxpayer, I should say, I believe if our public schools are going portunity to reform education, and I through the Federal Government. to compete, we are going to have to am excited about the President’s plan. In my mind, it means we need to give every option to parents. Many par- I am excited about what Congress will change that Washington role from one ents can afford to send their children be able to do to make sure that future of regulator to one of education inves- to private schools. So they have their generations have the quality public tor—to invest in education and to regu- young girl attend a girls’ school, or education that has been the foundation late only to the degree that we accom- their boy attend a boys’ school. of our democracy. That is what I want plish that goal of reducing the achieve- However, if you go to public schools for every child for the future in our ment gap, of boosting the academic or you cannot afford to send your chil- country. achievement of all children to make dren to private schools, you probably I hope we can get on to the bill. I them more ready for the world they in- don’t have that single sex option. It think it is time. We have talked about herit. It comes down to the concept of has proven, time and time and time policy and all the priorities that we allowing innovation and creativity to again, some young people at certain have for a long time—about 10 days address the problems we have identi- ages, usually in that junior high school now. It is time for us to start amending fied and then coupling the freedom to to high school age range, and not later this bill and going forward so we will innovate and create, the freedom to than elementary school, some young have the winds of change in this coun- teach with measurable results, which people do so much better in a single sex try in public education. I urge my col- clearly is a Federal role, to couple atmosphere. It was found girls do bet- leagues to come together and make it whatever requirements and assess- ter in math in a single sex atmosphere happen. ments we place, mandates—yes, man- in those age levels. It was found that Madam President, I yield the floor dates—that we place in terms of test- rowdy boys do better in a single sex at- and suggest the absence of a quorum. ing and assessing that we attach to mosphere, particularly in an urban set- The PRESIDING OFFICER. The freedom and flexibility, to have those ting. clerk will call the roll. measurable results. Why not allow parents the options? The legislative clerk proceeded to We must continue, I believe, to cut We are not talking mandate. Many par- call the roll. the redtape, to cut the unnecessary bu- ents prefer to have their children in co- Mr. FRIST. Madam President, I ask reaucracy that has resulted from a lit- educational schools. Some parents unanimous consent the order for the any, a myriad of programs that were might want to give a special needs quorum call be rescinded. all well-intended. They were Federal child that single sex atmosphere. They The PRESIDING OFFICER. Without programs passed in this body over the can’t afford to send their children to objection, it is so ordered. last 35 years, but they have resulted in private schools, so why not let them Mr. FRIST. I ask unanimous consent a complex network of overlapping re- have the option of going to their school I may speak notwithstanding the pre- sponsibility in terms of the target pop- board and saying they would like to vious agreement. If someone from the ulation: excessive and confusing bu- have a single sex math class in the other side of the aisle arrives to the reaucracy, and paperwork. We need to fifth grade in the elementary school. floor, I will yield. get rid of the overly prescriptive Fed- Why not give them the option? We The PRESIDING OFFICER. Without eral mandates on the Federal role in want to take away the barriers being objection, it is so ordered. education, those mandates put on the put in front of the parents, putting Mr. FRIST. Madam President, I rise floor, taken through the legislative schools in fear they may be sued if to continue our discussion as we pre- arena, and imposed on our commu- they have a single sex educational op- pare to bring to the floor a very impor- nities. I believe it is our opportunity portunity. tant bill that I believe realizes the today to cut that red tape and remove There would be a requirement for a dream of the President of the United those overly prescriptive mandates. comparable opportunity for young peo- States, his campaign pledge, the vision I think the result of our discussion ple of the other sex. That is fair. We he has put forward of dramatically and debate on this bill, once we are al- want that to be allowed, also. shaping and reshaping and modifying lowed to bring it to the floor, will re- We want to offer all the options a and changing Washington and the Fed- sult in innovation, in creativity, all of parent could possibly have if the par- eral Government’s role in education. which will translate, again, to leaving ent had the opportunity to go to paro- We are at a unique time. I believe no child behind. chial schools or private schools for never before in this body, at least in One aspect of our bipartisan discus- their children. We want those options the history of the last 35 years since sion of the last 3 months that I look to be available in public schools. I will the Elementary and Secondary Edu- forward to talking more about at the offer the single sex amendment to this cation Act was first enacted, have the appropriate time is what is called bill because I want to grow the oppor- American people, and their Representa- Straight A’s, the Academic Achieve- tunities; I don’t want to kill them. I tives on both sides of the aisle, been so ment for All Act. That is why it is want public schools to be the best. focused on education, kindergarten called Straight A’s, which really in a I always like to proudly say I am a through 12th grade, and the reform of demonstrable, optional way allows for total product of public schools. I grew education so that we truly leave no a consolidation of a lot of the programs up in a small town of 15,000. I went to child behind. that we have inherited—given that

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4147 consolidation of programs in funding reauthorize ESEA and its prospects for to help our public schools, help every all the way down to the State or down stirring a real revolution in our public child learn at a high level, for greater to the district—and allows those funds educational system. flexibility to allow the local educators to be used but attaches them to demon- The discussions we have had over the to decide, as they know best, how best strable, measurable results of academic last several weeks involving Senate to spend their Federal dollars to meet achievement. Democrats and Republicans and the the specific needs of their students, and This is, again, a demonstration pro- White House have been a model of how also to encourage innovation and ex- gram that hopefully will allow up to this place should work. There has been perimentation with different edu- seven States to participate. They will civility. There has been healthy de- cational reform models at the local have what is called a performance bate. There has been disagreement level. agreement. In that performance agree- from time to time. But there has also We have in this bill stronger account- ment with the Secretary of the Depart- ultimately been a shared sense of com- ability. That is the way we test the re- ment of Education and the administra- mon purpose. We have had our dis- sults. That is the way we make sure we tion, there will be high standards, high agreements—some of them profound— are not giving up on any child in Amer- accountability, measurable results but the Members and our staff have ne- ica and that we are going to take them coupled with freedom, with consolida- gotiated in good faith and with good to the highest level their God-given po- tion of programs so we can, with a per- will. In doing so, I think we have dem- tential gives them to achieve in edu- formance agreement, link, to the max- onstrated that we can find common cation. That is particularly true of imum extent possible, flexibility and ground on a consequential issue and low-income and minority students. We freedom to innovate with measurable move this country forward as we do so. propose this new equation, which we results. This can be a real breakthrough given call invest in reform, and insist on re- I see we have other Members on the some of the rancor and division that sults, as a possible bridge to a bipar- floor. As I said, by unanimous consent have plagued the education debate too tisan compromise. I will be glad to yield the floor at this often in recent years. Last year, President Bush went juncture and look forward to coming I commend our leaders, my col- across a bridge of his own and em- back and continuing a discussion of leagues from both parties, the Presi- braced some of those same goals and what is in the underlying bill as well as dent, and representatives from the values and articulated a similar reform what I hope will be added to the bill White House who participated in these plan for realizing them, and for encour- over the course of the day as the lan- negotiations. I think we all want to re- aging and accelerating the growing guage becomes available. alize the same goal, which is the best movement in many States towards Madam President, I request recogni- public educational system in the world. standards and accountability—focus on tion to briefly speak on behalf of the We all understand that today we have results. What are our children learn- leader. significant challenges ahead of us if we ing? The PRESIDING OFFICER (Mrs. LIN- are going to achieve that goal. This year, the President made that COLN). Without objection, it is so or- We all want to close the persistent plan a legislative priority and signaled dered. achievement gap separating the haves his seriousness not just on the subject Mr. FRIST. Madam President, I ask in our society from the have-nots. That of education but on the kind of edu- unanimous consent that the next 60 is by far the biggest hurdle I think we cational reform that is embraced in our minutes of postcloture debate be equal- have to overcome. We all want to de- three R’s bill. ly divided between the majority and liver on the promise of equality and op- It was focused on transforming the the minority parties and the time be portunity for every child. We all want Federal Government into a catalyst for deducted from each individual Senator to increase the supply of highly skilled change, on demanding results, and on as provided under rule XXII. workers, which we all know is critical no longer tolerating failure, so that The PRESIDING OFFICER. Without to our future economic competitive- this bill, about which we are now de- objection, it is so ordered. ness and the long-term prosperity and bating a motion to proceed and around The Senator from Connecticut is rec- security of this Nation. Now, through which negotiations are continuing and ognized. the reforms in this bill, we are not just coming ever closer to a bipartisan Mr. LIEBERMAN. Madam President, talking the same points of principle; agreement, builds on that common I thank my colleague from Tennessee. we are actually walking the same path ground we have forged on those critical Madam President, I rise today to to progress. innovative ingredients to the recipe of speak about the landmark educational I am particularly encouraged and reform. reform bill and plan we are currently gratified that a number of the ideals The centerpiece of the three R’s plan debating, and in fact are currently ne- and ideas that Senator BAYH and I and and of the President’s blueprint was a gotiating, a plan that, I think, if it so many other Members of the new tough new accountability system that reaches its proper drafting conclusion Senate Democratic coalition have been would reward States in making real and, most importantly, is adequately advocating for the past few years progress in meeting high standards funded, will spur bold changes and in- through our three R’s reform bill and while sanctioning those that did not novations in our public schools and that so many of these ideas presented and would require local districts to will ultimately help improve the qual- by the distinguished occupant of the take strong remedial action to fix ity of education for every child in Con- Chair, and other colleagues, are re- chronically failing schools. necticut and every child in America. flected in the historic agreement on a We are not going to sit back and let It is premature at this moment to core bipartisan amendment to ESEA schools continue to fail to educate our talk about this comprehensive legisla- that we are very close to achieving. kids. We are not going to continue to tion with total certainty and in all of As some of my colleagues know, we push kids ahead from one grade to an- its details, so I intend to make a fuller started out with the three R’s bill with other just because a year has passed, statement about the bill once the nego- the new vision of education policy, one regardless of whether the school has tiations are complete. But I did want that focuses not on progress but on per- taught them anything or whether they to come to the floor today as we work formance, not on rules and regulations have made progress. out the final pieces of this complicated but on results, not so much on what we This is a system that tracks the pro- policy puzzle to offer both a few con- put into the system, although obvi- gressive reform that State leaders gratulations and a few concerns about ously that is important, but ultimately around America, including my own what I would call this important near on the real test, which is what we get State of Connecticut, have already im- agreement on reauthorization of the out of the system. What are the re- plemented. It has proven effective. Elementary and Secondary Education sults? How well are our children being I will say that in the negotiations Act. educated? that have gone on over the last few Let me start by saying how encour- We drew up a reform blueprint that weeks, we have had some differences on aged I am about the process we have translates these principles into poli- how to set those standards for judging followed for formulating this plan to cies, calling for increased investments performance, which is to say, How do

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4148 CONGRESSIONAL RECORD — SENATE May 2, 2001 we define progress for our students? That is why we pushed so hard to rec- school districts to take similarly How do we strike the right balance be- ognize that we cannot have more blue strong steps to strengthen the quality tween truly holding schools and States ribbon schools without less redtape. of their teaching force, setting a firm accountable for raising academic And not least of all, that is why we goal of having all teachers in the high- achievement, and particularly closing who advanced the three R’s bill decided est poverty districts highly qualified the achievement, without setting the that imposing real consequences on within 4 years. But reaching that bar so high that we end up grading schools and districts that chronically benchmark is clearly going to take a most schools as failing? fail to educate disadvantaged children significant increase in funding for re- We have worked through those prob- is a necessary and critical element of a cruitment, retention, and professional lems over the last few weeks. true educational reform proposal. development. We have an obligation— I want my colleagues to know that But we also recognize that money is since we are making these demands on we have reached an agreement cer- a crucial part of the equation. We sim- the local school districts and on the tainly on policy on a reasonable and re- ply cannot expect States and local dis- schools and on the teachers—to help alistic middle ground. That agreement tricts to improve the quality of teach- States meet those high standards by is now being drafted. Hopefully, we will ing and reduce class size to help every giving them adequate financial re- have the opportunity to present it in child—for instance, an immigrant child sources to do so. this Chamber before very long. But it to master English, to reconstitute Also, consider title I, the heart of our is a significant, real, and hopeful agree- chronically underperforming schools, traditional Federal focus on disadvan- ment. and in particular to end the national taged children. Here again, the distin- While I would have liked, in some disgrace of having African American guished occupant of the Chair, the jun- ways, to have made the provisions and Latino American children reading ior Senator from Arkansas, and I have stronger, I have not given up hope of and doing math, on the average around talked often about this problem. It is enhancing them in our discussions with our country, at a level that is substan- real, from the cities of Connecticut to the House. I do think this agreement is tially below their fellow students in the cities and towns of Arkansas. The suitably explicit and demanding, as America’s schools—if we do not sub- reality is that one-fifth of urban and well as suitably fair, and will achieve stantially increase our investments in rural districts, with 50 to 75 percent of our goal of driving real change and our public schools. This is something their students living in poverty, re- bold reform. I hope soon to be able to most Americans recognize, which is ceive no title I funding today. It is share the details of that agreement why there is overwhelming support for hard to believe. with our colleagues. significantly increasing our national Title I was a program established 35 But as much as I appreciate this sig- investment in education. years ago to help disadvantaged kids, At home, in conversations I have had nificant bipartisan achievement, I re- low-income kids. Yet today, I repeat, with people in Connecticut, and from main deeply concerned—as I believe al- one-fifth of urban and rural districts, public opinion surveys I read about most all my colleagues on this side of with 50 and 75 percent of their students American attitudes, it is clear that the the aisle do—about one missing, indis- living in poverty, receive no title I American people put education at the pensable ingredient to the recipe for funding. That is, in good part, because top of their priority list, and sensibly genuine educational reform in Amer- we do not target those dollars well so. The American people know you can- ica, and that is investment. It is clear with the formulas we are using today. not bring millions of children, particu- to us that these reforms will not work That is a shortcoming we are working without a significant increase in re- larly low-income children who cannot read, up to grade level on the cheap. It very hard to fix in these negotiations sources from the Federal Government. that are ongoing. But it is also because To date, the Federal Government cannot be done. Consider a few specific examples, we are not providing the resources— supplies only about 7 cents of every such as teacher quality. The reality is enough money—to fully serve dis- dollar spent on public schools in Amer- that we must hire, train, and ulti- advantaged children and carry out our ica. Under the President’s current mately retrain about 2 million new responsibilities under the Elementary budget, we will not provide much more teachers over the next several years—2 and Secondary Education Act. than that. Some would go a step fur- million new teachers over the next sev- According to independent estimates, ther and suggest we may, in fact, be eral years. it would take $17 billion to fully fund setting up schools and children to fail The reality is, 95 percent of urban title I, an increase of about 100 percent if we do not back up the new demands school districts are experiencing a above current funding levels. That is for results that are in this bill—which shortage of qualified math and science an annual number. we all agree are critically important— teachers and that 50 percent of new The accountability system we are with new dollars to meet those de- teachers quit high-need schools during working on now will help make title I mands. If that becomes the case, then the first 3 years of their teaching a much more effective program for kids we do not have a system of genuine ac- there. in high-poverty districts—whether countability; we have a system that The reality is, educational reform they live in Connecticut, Arkansas, or sets standards and does not help the will not succeed if we do not provide anywhere else throughout America— local school districts meet those stand- every child with a good teacher. Many requiring States and local districts to ards. people in our society do important turn around chronically underper- We clearly recognize, of course, that work, but no one in our society today forming schools, empowering parents money alone will not solve the prob- does more important work than a good whose children are trapped in those lems plaguing our public schools. teacher. We learned that lesson in Con- failing schools with new choices and Money will not spur innovation and necticut, which has invested millions new options to help their kids get a lasting reform, and it will not stream- of dollars—tens of millions, hundreds better education, sanctioning States line inert and inefficient bureauc- of millions—over the last several years that do not make progress in raising racies. Money will not set high stand- to raise teachers’ salaries, to attract the academic achievement of disadvan- ards and hold schools responsible for and train high-quality professionals, taged students, and closing the gap be- meeting them. and develop a nationally recognized tween the haves and the have-nots. That is why we New Democrats mentoring program to nurture young Again, we cannot expect those inter- pushed so hard in this bill to shift our teachers in their early years in the pro- ventions to succeed, those choices to be Federal focus from process to perform- fession. That has produced, I am proud meaningful, or those sanctions to be ance, to streamline duplicative and in- to say, one of the best teaching forces fair if we do not invest in reform while effective programs, to accentuate the in the Nation. In turn, they have we are insisting on results. That means freedom of local teachers to innovate— helped to produce consistently high infusing title I with substantial in- they are the heart of our whole edu- scores by Connecticut students on na- creases in funding. cational system—to have principals tional education tests. Unfortunately, the Bush administra- enact reforms, superintendents to set The bill we are working on will push tion has to date been unwilling to new standards, and try new, bold ideas. all of America in all of America’s match their commitment to reform

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4149 that we are so near agreement on with lion in tax cuts over the next 11 years. as the two of us have said, because we commensurate resources on which we Yet they declined to find the funding have essentially reached agreement on are still some distance from agree- which would be necessary to support the core issues relating to this bill. Our ment. The President’s initial proposal the amendment of our colleague and staffs are drafting and we will meet for ESEA programs included only a friend, Senator HARKIN. again later in the day, but this is a $700 million increase for the next fiscal As my colleague remembers, Senator substantial accomplishment. It shows year and less than $500 million for title HARKIN, during the budget debate, ini- that we have common purposes, and we I. In the last few days, the White House tiated an amendment that was passed can reach common ground across party has increased that now to a total num- with strong bipartisan support for $250 lines, across Pennsylvania Avenue, be- ber of more than $2 billion. But this billion for education over the life of cause what is on the line here is the counteroffer is still far from sufficient the budget. That virtually disappeared well-being of our children and the fu- to meet either the needs we have iden- in these negotiations. That cannot be ture of our country. tified or the demands we will place on found. The position of the Senate, All of these agreements we have now America’s schools with this legislation. which was bipartisan, and the major- reached and are drafting are just not That is particularly hard to justify ity, is virtually eliminated. going to mean anything much unless when we know that we are projecting a I find it difficult. In looking over this we help the States and local govern- $200 billion surplus for next year, $69 budget and consulting with members of ments and school districts meet the ad- billion of which apparently will be the Budget Committee and asking ditional responsibilities we are placing spent on the President’s tax plan. That them whatever happened to it, it just on them through this bill. is almost 35 percent of the projected disappeared. It virtually was elimi- The Senator from Massachusetts has surplus next year for the tax plan and nated. In that was the funding, as the spoken about the amendment to the a little more than 1 percent for addi- Senator remembers, for the expansion budget resolution introduced by Sen- tional funding for education. of Head Start Programs. It had funding ator HARKIN, our colleague from Iowa. We can do better. Hopefully, to- in terms of increased funding on title I. It passed with bipartisan support. It gether, as we have come some substan- It had additional programs in terms of took over $200 billion from the tax tial distance on most of the critical child care support, the block grant pro- plan, used it to pay down the debt, policy issues facing American edu- gram, other programs that were tar- took a similar amount, over $200 bil- cation over the last several weeks in geted on children and needy children. lion, and asked that it be invested in our bipartisan negotiations, we can We have been told in these conversa- education. This expresses the concern similarly close the gap when it comes tions that we have had with the admin- across the aisle here in the priority to our remaining disagreement on re- istration: We are prepared to give some placed on education. sources to make reform real. funds, some additional funds for title I, In that amendment, as I read it, over In the same spirit in which we have but we are unable to make a commit- the 10 years there was approximately negotiated this agreement to insist on ment in future years. $100 billion of that money that was to results, we appeal today to the Presi- I notice in those budget figures that go through the Elementary and Sec- dent to join us in investing in reform. came out from the Budget Committee, ondary Education Act that we are con- We have a unique opportunity at this they are prepared to list for million- sidering now, about $50 billion there for moment, and we cannot afford to let it aires what the reduction of their inher- the first 5 years which we are consid- slip away. The truth is, we can afford itance tax will be in the year 2011. Here ering as part of this authorization; to give every child in America a qual- we have, for the wealthiest individuals, therefore, $10 billion a year. That is ity education. That is our responsi- a very clear roadmap about how their what was voted by this Senate in a bi- bility and, if we do it right, that will taxes are going to be reduced in 2011, partisan vote. guarantee that our future is brighter. but we can’t get the administration to Here we are with the President say- Mr. KENNEDY. Madam President, I commit that over the next 4 years they ing to us that the most he can do at wonder if the Senator would be good are prepared to allocate sufficient this point, as I understand it, is some- enough to yield for a question. funds so that the benefits of this bill what over $2 billion. And while so Mr. LIEBERMAN. I certainly would. will reach the children who are quali- much more next year—$69 billion—is Mr. KENNEDY. First of all, I com- fied to benefit from the program. being put into the tax cut, 35 percent of mend the Senator for an excellent pres- Is the Senator from Connecticut the projected surplus in the tax cut, 1 entation and, more importantly, for all troubled by that development? percent is in education. I agree with of his good work in the past weeks in Mr. LIEBERMAN. Responding, if I the Senator. It doesn’t make any sense helping move the process along and for may, to the Senator from Massachu- to say we can’t make a long-range the work that has been done in the setts, this Senator certainly is trou- commitment to the children of Amer- past. bled by that. ica for their education, but we can, in As the Senator spoke, one of the Let me say, before I respond directly, the budget resolution, somehow make points he underlined was the need for what a pleasure it has been to work a long-range commitment to the additional funding. As we understand with the Senator from Massachusetts wealthiest taxpayers who, if I may say funding, for the Senator from Con- on this bill. There is not a better law- so personally, don’t need the help as necticut and myself, we are talking maker/legislator in the literal meaning much as the children of America. about investments. We are talking of that word in this Chamber than the So the Senator is right. I say, again, about investing in children and in their Senator from Massachusetts. I have when you think about the plenty that future and our Nation’s future. The seen his talents, his persistence, his we have available to us, when you Senator has made that case very effec- knowledge, and his great skill as an ad- think about the strong economy we tively. vocate at work. I have actually enjoyed have had for the last several years, and I join with the Senator from Con- the experience. the restraint we have shown at the necticut in the importance of devel- I thank him for his leadership. He Federal Government level that pro- oping the kind of blueprint which has has been responsible for successive ad- duces these extraordinary surpluses been developed which we believe can vances in the quality of life in our ahead, the likes of which we have never really make a difference if it reaches country, particularly for our children. seen before, this all comes down to pri- out to the children who are out there If we can bring this one to a conclu- orities and choices. How do we want to who need the assistance. One of the sion, it will be yet another extraor- invest this money? major struggles and one of the major dinary accomplishment that he has led, I say proudly, with the Senator from battles has been over funding. working not just with members of this Massachusetts, who has been the lead- Yesterday, we saw the President and party but across the aisle and, in fact, er, we want to invest it in our chil- our Republican friends make the an- with the White House. dren’s education. nouncement on the budget for this year The numbers the Senator from Mas- The PRESIDING OFFICER. Under and projected over future years. In that sachusetts cites are troubling to me. the previous order, the 30 minutes al- budget, the negotiators found $1.35 tril- They are particularly troubling today, lotted to the Democrats has expired.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4150 CONGRESSIONAL RECORD — SENATE May 2, 2001 The Senator from Tennessee. Today they do not have that flexi- ability. We have very specifically ad- Mr. FRIST. Madam President, I want bility. dressed the idea of targeting both for to take the next 7 or 8 minutes to com- Straight A’s is an optional program. the title I component and the title II plete the remarks I had begun 30 or 40 There is no school district that must component. An element of targeting is minutes ago. It really boils down to participate in this demonstration written into the bill, and the dem- this whole theme of a change, a change project if it chooses not to. That is the onstration project, to ensure that the in the Washington approach to edu- way it is outlined and presented in the money goes to the people who need it cation, from kindergarten through 12th bill. It is an optional program, limited the most. grade. That is very much what I be- to just seven States. Even if there is a Today, States, localities, and school lieve the underlying bill is all about. great demand, we will limit it to seven districts are the engines of change. Not We recognize that 35 years and $125 bil- States. Personally, I would like to in- Washington. We are locked into a sys- lion later, we have failed to accomplish crease the number of participation tem where change is not allowed. That the original goal of the 1965 Elemen- states, but in negotiations we decided is the sort of reform I am very hopeful tary and Secondary Education Act. We that as many as seven States would we will be able to debate and put for- have not met that goal, that is we have have the option of being freed from reg- ward. We want to support that engine not reduced the achievement gap be- ulations if they agree to be held ac- of change that is going on in States all tween the served and underserved, or countable for strong, measurable re- across America. We want to encourage the advantaged and disadvantaged, and sults. it, make it possible, because there are we want to accomplish that, working Straight A’s is not a block grant. We teachers out there who care, who want together in a bipartisan way, under the hear that, and it scares people. Block to teach, who will teach, if we get rid leadership of President Bush and the grant means when you give money to a of the bureaucracy. principles he has laid out. group of people en bloc instead of hav- We have parents who care, nobody An important element of the Presi- ing a hundred different programs and cares more about children than par- dent’s plan is flexibility based on local saying the money has to be used for a ents. But right now, they have little in identification of the problems and computer or software or to hire an- the way of choice, very little power to challenges facing schools today, cou- other teacher. The idea is to give that direct resources. We talk about supple- pled with strong accountability—ac- money in the aggregate. This is not a mental services and how important countability for the taxpayer dollars block grant program. It is a perform- they are so parents can have some ele- that are being invested, accountability ance grant, linked to results. There is ment of choice, some way to direct in exchange for the freedom that we, strong accountability. It is not just their taxpayer dollars in a direction through this legislation, will give local giving the money away. I think we that will benefit their children. schools, teachers, school districts, have done that for too long. If you look This is very different than the cur- communities and States in return for at the last 35 years, we have spent rent system. That system over the last measurable results. about $120 billion. And for that $120 bil- 35 years, involved always thinking up As I mentioned, we must cut the red lion we neither received nor demanded new programs, and funding those pro- tape and get rid of the overly prescrip- results. grams—usually inadequately—hoping tive regulations, which we know have What I think is great about this bill it would do some good. So that now we not worked. We must change the Wash- is that it provides both local control have hundreds of programs each with ington approach, and transform the and flexibility. Local folks receive the their own bureaucracy, each their own Federal role from that of education funds, they are held accountable for re- requirements, each inadequately fund- regulator, which has not worked, to sults, but how they use those funds is ed, and all of which have resulted in education investor, because we are in- up to them. the failure we see today. vesting in education, in policies that Teachers in a classroom know what I just want to share with my col- we know are successful, in programs they need. Is it a piece of software? If leagues what the Chicago school sys- that work. We must not reward pro- so, they can use the money for that. Is tem officials—again, this is not par- grams that don’t work by investing in it a new computer? If so, they can use tisan—reported to the task force on them further. the money for that. Smaller class size? education that we conducted in the Education investor versus education Those things are best determined by an Budget Committee under the leader- regulator. To me that’s what it’s all individual school or perhaps an indi- ship of Senator PETE DOMENICI. Those about. vidual subject area of a school. Why officials from the Chicago school sys- One element of our education invest- should we be dictating that from above tem extolled the virtues of flexibility ment plan is a piece of legislation when local schools, teachers or parents and credit much of the success they called Straight A’s. The formal name, can make those decisions and partici- have seen in Chicago to this increased of course, is the Academic Achieve- pate in the process? flexibility. I quote: ment for All Act—a lot of A’s in there, It might be that this money could be We know the system and we believe we which is why we call it Straight A’s. used for reducing class size or improv- know the things that it needs to have in That is an easy way to remember what ing technology, or hiring better teach- order to improve. So the more flexibility we it is all about. ers. I can also be used for teacher de- have with Federal and State funds, the easi- Ultimately, Straight A’s addresses velopment. If, for example, a teacher er it is to make those changes. the fact that we know there is exces- does not feel qualified to teach in a It makes sense. People at the local sive regulation out there—well-in- certain area, that money, available for level can best identify those needs. So tended, but excessive. It addresses the the first time, can be used for teacher we need to free up, get rid of those un- fact that we know there are and hun- development, to ensure that every necessary regulations which have tied dreds of programs, again well-intended, child in this country is given the op- their hands, that have prevented them but programs that straitjacket our portunity to be in a safe classroom, from boosting student achievement and teachers to the point that they can no drug-free classroom, with an excellent reducing that achievement gap. longer teach because they are spending teacher at the head of that class. We will have time, hopefully, in the all their time complying with federal So, this is not a block grant, it is a next several days to continue the dis- law. Rather than teaching that indi- performance agreement. Account- cussion of this concept of flexibility, vidual child face-to-face, they are ability is part of that agreement, it is accountability, and local control. I ap- doing paperwork. written in. You will hear a lot about preciate the opportunity to share with Straight A’s will free them up of that accountability, accountability and my colleagues this concept of Straight red tape, get those regulations off their high standards, because we all feel very A’s which will be a part of the under- backs, so they can do what we want strongly that boosting student achieve- lying agreement by allowing greater them to do, what we’d like to hold ment, reducing that achievement gap, flexibility, coupled with those demands them accountable for doing: teaching is the essence of accountability meas- of achievement. our children. Yes, it’s what they want, urement. Washington will become, not the edu- but more importantly, its what our For this increased flexibility we have cation regulator, but the education in- children need and deserve. built even higher standards of account- vestor.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4151 I yield the floor. been the primary engine of education I believe our legislation today is a The PRESIDING OFFICER. The Sen- in America. The Federal Government big step in the right direction. This ator from Texas. does not need to take over. legislation is designed to provide a way Mrs. HUTCHISON. Madam President, I do not think there is anyone who to give schools more money with less I thank the Senator from Tennessee for will stand up and defend a major, mas- strings in return for accountability. his leadership in the area of education. sive Federal takeover of education in Many Senators have talked about ac- We do have an opportunity to reform America, but we are paying a substan- countability. It seems to me they have the system. What Senator FRIST was tial sum of money. We spend $125 bil- a misconception of what account- discussing on the issue of account- lion improving the education of low-in- ability actually is. They seem to think ability is the key. We can pass all the come children, trying to narrow the accountability is when somebody laws in the world. We can pass all the gap, and it has not worked. spends Federal Government money pre- regulations that fill the books, but if What do you learn when you talk to cisely, exactly as written in a rule we do not have accountability, it will the teachers and principals? They are book. They think that if they spend it not work. frustrated. They tell me the paperwork that way, that is accountability, even We know that because it has not is substantial; the regulations are bur- though learning has not been improved worked so far. We have poured in more densome; the money they get can only one bit. money. We have tried to give man- be used for certain programs which The growing consensus, I think, is bi- dates; we have given them red tape; we may not be programs they need in partisan. Our bill came out of the com- have given regulations; but that has their school, and they cannot use the mittee almost unanimously. We believe not helped. money for things they think are impor- accountability means finding out if the What we need to do is have account- tant and would improve learning in children are learning. Have they bene- ability. We need parents, teachers, and their school system. fitted from the instruction or are they principals to work together to deter- They tell me the Federal Govern- falling behind? We must look at those mine what is best in any particular ment—and I spend a lot of time dealing test scores and make sure they are area. Then we need to test to see if it with this issue—is creating mandates brought up to speed. We must ask what is working, not so we can point fingers. under IDEA. School officials are not can be done, at the earlier grades, to We need to test so we can identify able to discipline children with disabil- identify when children are falling be- weaknesses and strengthen those weak- ities who are disrupting a classroom. hind? We must not let even one child nesses. That is the difference. They must keep them in the classroom fall behind. We have 15 more minutes of our time, day after day, even though the child is When the Secretary of Education, Dr. but I understand the Democrats would not benefiting from being in the class- Paige, was in Houston, he doubled the like to start a little early. I ask Sen- room and even though that child is dis- number of students passing the basic ator SESSIONS to take up to 10 minutes, rupting the other children in the class- Texas proficiency test. Dr. Paige says and then we will allow the Democrats room. if you love children and care about to take the rest of the time until we I started in recent months to ask them, you will test them and find out determine the next amount of time teachers, Which would you rather do: if they are keeping up. If they are not, that we will have on the subject. Take the 10 percent from the Federal and you love them, you figure out a The PRESIDING OFFICER. The Sen- Government or let them go away and way to help them do better. He did that ator from Alabama. run the schools the way you want to in Houston. Some say he got a lot of Mr. SESSIONS. Madam President, I run them? extra money to administer these tests, appreciate the opportunity to speak. I You would be surprised how many but he did not. The third or fourth year thank the Senator from Texas for her say: Take your money and leave us he picked up bit extra, but in 5 years steadfast leadership and commitment alone. That is shocking. I am not sure he doubled the test scores mainly to education. She has been a stalwart they really meant that, but their hands through changes in policy by doing on these issues and cares about them went up when I asked that question. It things differently, with the passion to deeply. reflects a deep frustration that we are achieve. If schools in his system were I also appreciate the leadership on not being good partners in this deal. not conforming, he confronted them, the Health, Education, Labor, and Pen- How do these programs come about? and fixed them. He did not let continue sions Committee of Dr./Senator BILL How have we ended up with 700 Federal to fail. FRIST of Tennessee. He is one of the education programs in America? It is In Alabama we have an excellent champions for doing something dif- something like this: Some State devel- State superintendent of education and ferent this time. ops a good idea for an education pro- some wonderful schools and magnifi- Yes, we have the largest increase in gram. A Senator or Congressman hears cent teachers. The new superintendent spending percentagewise in education about it. He thinks it is popular and believes in testing. He has been testing than any other budget item, but that is would be popular back home if he au- for some time, and test scores are mov- not what is so special about our edu- thored a bill to fund that kind of pro- ing upward. Some say the tests in Ala- cation debate today. gram around the country, and program bama may be the most difficult in the Our debate today is about children. after program gets adopted over the Nation. Students cannot get a degree if Our debate today is about making sure years. they do not pass the basic proficiency what we do furthers not just a system Some are good, some not good. Some test, and the test scores are moving up. that has not been as effective as it may have been good 15, 20 years ago, If a school allows children to move to should be, but actually furthers learn- but are not good today. Some of the a higher grade without learning, the ing. That magic moment in a class- programs are successful, and my col- State superintendent can take over the room when a child and teacher come leagues have to understand that some school system and fix it. The State is together and learning occurs is what it of those special programs were success- putting a lot of money into this test- is all about. Nothing else really counts. ful because the teacher who ran it was ing, and we need to know it is being When you visit schools as I have for special, and they could make certain spent well. the last year, 25 or more schools things happen in a way that cannot be Let’s get out of the business of around the State, and talk to teachers, replicated with a teacher who does not micromanaging schools. Let’s make principals, and superintendents, and have that passion to run that par- sure progress is being made, that chil- you hear them express their deep frus- ticular program. So we created all dren achieve, that the school system is tration at the burdensome strings that these systems. not leaving children behind, that they are attached to the Federal Govern- We send the money and say: You can are not being abandoned, are not given ment’s education funding. The Federal only use it for this science instruction, up on. Because when children reach the Government only makes up about 10 this reading instruction, this math in- ninth grade, still unable to read, un- percent of education spending—90 per- struction. It has burdened our school able to do basic math, they drop out of cent of it is funded by the State, and systems and has not created as much school with no prospects for any good well it should be. States have always good will as we would like. economic future.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4152 CONGRESSIONAL RECORD — SENATE May 2, 2001 We can do better. Every child may The PRESIDING OFFICER. The Sen- Common sense makes clear that a not be able to handle advanced mathe- ator from Texas. property-tax-based financial system for matics and the high sciences, but most Mrs. HUTCHISON. I ask unanimous our public education leaves unequal children are able to do the basic read- consent the period for postcloture de- education rampant in our society. ing, writing, and mathematics nec- bate be extended until 4:40 p.m. with No, if we are serious about education, essary to be successful in America the additional time equally divided be- we need to make it a national priority. today. tween the majority and the minority We need to ensure that our national Some complain about tests, calling it parties, and the time be deducted from government plays an active and aggres- punishment, a way to categorize or each individual Senator as provided sive role, making sure every child has stigmatize a child. I don’t see it that under rule XXII. access to quality public education. way. Neither does Dr. Paige who be- The PRESIDING OFFICER (Mr. Our public schools can not assure lieves it is part of a good education. CRAPO). Without objection, it is so or- equal outcomes in life, but they should The way to teach is to find out how dered. provide equal opportunity. children are learning and progressing. The Senator from New Jersey. I am optimistic that we can make When we know what they need, we can Mr. CORZINE. Mr. President, I rise that happen, and that we will soon pass do it better. I think it is the right today to discuss the importance of a strong bill that addresses the most adopting legislation to expand and im- thing to do. serious pressing issues facing education First, we want the States to conduct prove the Federal Government’s com- today. I thank Senator JEFFORDS, Sen- the tests. We encourage them to de- mitment to education. In my view, ator KENNEDY, and the many other velop tests that fundamentally are fair there is no more important issue before leaders in the Senate for their tremen- the Congress than how we deal with and objective. If a test focuses on basic dous bipartisan efforts to ensure we education. As our economy becomes in- reading, basic math, basic science, and have an exceptional bill. These are true creasingly global, based on high tech- students are tested on those things, leaders, making sure our children come nology, its future is increasingly de- how can anyone complain if a teacher first. I want to do what I can to help pendent on the quality of our work- teaches to the test? Isn’t that what we ensure their efforts are rewarded with force. want? Don’t we want to make sure that passage in the Senate. The better our educational system, Today, I would like to take a few the basics are not being overlooked in the stronger our economy and our Na- minutes to discuss some of the most the classroom? tion will be. That is why as a nation we important issues that I hope we will be I am excited about the possibility should make education our number-one addressing in the debate ahead. today that, across the Nation, we could priority. First, let me mention some of the achieve a fraction of the progress that Let me begin by saying our current areas in which I think most of us our Secretary of Education achieved in educational system, while it has many agree. For example, I think we all Houston. faults, does have real strengths. Today, agree that we need to promote parental Mrs. HUTCHISON. Will the Senator throughout our Nation, dedicated involvement in education. It is com- yield? teachers are working long, hard hours mon sense. That means giving parents The distinguished Senator from Ala- to educate our children. Often they get more information about their chil- bama mentioned Rod Paige was the su- little public recognition and acknowl- dren’s schools, and giving them in- perintendent of schools in Houston be- edgment for their contributions. Al- creased options in choosing among pub- fore he became Secretary of Education. most always, they are paid much less lic schools. That is the right thing to What struck me most about Rod than individuals educated similarly do, and I am glad these ideas have Paige’s attitude was that he wanted can earn in the private sector. I know broad support. testing. He wanted parents to have a because my mother was a teacher for 30 I am also glad that we generally choice. He wanted parents to be able to years, my wife for 7. agree about the value of promoting lit- send their children wherever they We have an incredible commitment eracy. President Bush—and I com- thought they could get a better chance. to teaching from folks across the coun- pliment him for this—has proposed $1 He was open to it. Because he was try. We should start this debate on billion annually for a reading first bill, open, the public schools ended up win- education by saying thank you to these and I applaud him for that. We need to ning the competition. More students teachers. They deserve our apprecia- make sure appropriations follow the came into public schools rather than tion and our support. authorization. We need to make sure into private schools because he said, I Of course, while our Nation is fortu- we put our money where our mouth is, want parents to have the freedom. nate to have so many dedicated and so we ensure that all children can read He has had the experience at the selfless teachers, the fact remains our by the end of the third grade. grassroots level. He is not somebody educational system still has serious Another area of broad agreement is reading about it out of the book. He problems. Too many of our schools are the need to improve teacher quality. has been there. He had a troubled dilapidated, ill-equipped, and unsafe. A good teacher is probably the most school system, and he turned it around During the recent recess I visited important single factor in the quality by seeking creativity, by seeking open- schools in Jersey City, NJ, that were of a child’s education. We can do every- ness, by seeking choice, by seeking 100 years old or older. There are still thing else right, but if we do not have more opportunities for parents, be- too many children in too many classes excellent teachers, the educational sys- cause he wants parents to know they that are not up to the latest standards. tem just will not be top drawer. are getting the very best chance for Too few schools are at the cutting edge That is why it is critically important their children. of new technologies and new ap- that we provide real resources to at- That is what struck me about Rod proaches, and mediocrity continues to tract and retain quality teachers, and Paige’s style of leadership. be tolerated in too many of our school to help teachers develop their skills Mr. SESSIONS. I agree. That is pre- systems, without the accountability and create a career of teaching our cisely the way I feel. To hear him talk necessary to improve performance. children. with such compassion and concern and Some have suggested that local Unfortunately, there is a lot of work determination was exciting. school boards should be left alone to to do in this area. Last year, schools in His advice was, ‘‘[If we don’t care solve these problems on their own. I high poverty areas hired 50,000 unquali- about a child, we will let them just go disagree. I do support local control of fied teachers, and only 39 percent of along and we won’t find out if they are education. It is fundamental in Amer- teachers in these areas have an under- falling behind.]’’ What happens if we ica. But local control does not mean graduate major or minor in the pri- don’t test? A child will be left behind. much if you don’t have adequate re- mary field of instruction. That is not He deeply believes in President sources within your control. And it’s acceptable. And I am grateful that col- Bush’s vision that no child should be not enough to leave the problem to leagues on both sides of the aisle seem left behind. The Houston example is states, which can pit urban areas to agree. perfect. against suburban communities—a fight Unfortunately while there is much I yield the floor. with no winners. about education with which we can all

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4153 agree, there are also some areas of dis- need to put money where we want our Mr. HOLLINGS. Mr. President, many agreement. priorities to be—and our children in the Senate today have not seen that I’m especially concerned about the should be that. much participation with respect to the need to reduce class sizes. In my view, If we want to reform schools, we need education debate. I have found out it is abundantly clear that smaller to provide them with real resources. I after 30-some years up here that you classes are better for children, and we would highlight, in particular, the title have to direct your attention to where have made progress in recent years. I program, which focuses funds on you can do the most good. I am not on But we have not gone far enough. areas with the greatest needs. Title I the Education Committee. That Jersey City school I visited, the can and should be the real engine for Let me qualify. No. 1, 50 years ago I average class size was 29—29 children. reform. Yet today we are meeting only wrote a 3-percent sales tax for public No one believes that is the right size to one-third of related needs. And that is education in the State of South Caro- make sure that you have quality edu- just not good enough. My own State lina. We were trying to play catchup cation going on in the classroom. struggles to cover the costs of imple- ball with our sister State, North Caro- It is abundantly clear that smaller menting parity in education for the lina. They had passed theirs in 1936, classes are better for children and we school children in our Abbott Dis- some 14 years ahead of us. They were have made some progress in recent tricts—urban districts, the economi- getting the industry in, and we were years, but we have not gone far enough. cally deprived. Especially given our getting no investment whatsoever. The Bush administration in my view historic surpluses, is not the time to Right to the point, if somebody is walking away from the class size ini- leave behind the children from low-in- wants to attract an industry, don’t tell tiative. In my view, that’s a serious come families who need our help the me about the taxes, the highways, the mistake. I look forward to working most. I look forward to working with climate, the rivers, the availability of with Senator MURRAY and my other my colleagues to dramatically increase water and that kind of thing. Get your- colleagues to secure approval of an our commitment to the critical title I self good school buildings and a school amendment to reduce class sizes later program. system. in the debate. We ought to move that I also want to take a few moments to So I venture to say of the six-person down to 18 per class. discuss an issue of particular interest committee that I headed up, five lost I am also disappointed that the ad- to me: teaching students the basic the election right after that. ministration has failed to address one principles of financial literacy. But be that as it may, no one has put of the most compelling needs in edu- Unfortunately, when it comes to per- in to repeal that particular measure. It cation: the need to modernize our sonal finances, young Americans do has been a saving grace in the sense schools. Mr. President, 14 million chil- not have the skills they need. Too few that not only is it 3, but we have now dren now attend schools that need understand the details of managing a increased it to 5 percent, and we have major renovations, like fixed heating checking account, for example, pre- embellished it with technical training. and plumbing systems. Nationwide, paring tax returns or using a credit I immediately started to work the school construction needs total more card. A recent survey by the non-profit week after I was elected in 1948. The than $127 billion. The problem is worse JumpStart Coalition for Personal Fi- superintendent of the schools in my in our cities, where two-thirds of the nancial Literacy revealed the extent of hometown said, FRITZ, I want you to schools—serving 10 million students— this problem, finding that only 36 per- get in the car and I want to show you report problems. In my State of New cent of surveyed high school students something. We went across the river on Jersey, 87 percent of schools report a could correctly answer basic personal the bridge on Christ Church Parish need to upgrade or repair a building; finance questions, and only 33 percent Road, and there was a big square build- one in six say that the effort will re- of students believed that financial ing of just one story with four sides quire between $1.7 million to $30 mil- issues strongly impacted their daily and a roof and a pot-bellied stove. It lion. The average age of all New Jersey lives. was November. There was a class in school buildings is 47 years, compared In my view, it is time to make sure one corner, a class in another corner, a to the national average of 35 years. that our education system teaches our class in the third, and a class in the That is why in New Jersey, we have children all the skills they need, in- fourth corner, and one teacher. begun a $12 billion funding program to cluding the fundamental principles in- Those were the schools we had at modernize our schools. I believe the volved with earning, spending, saving, that time for minorities in South Caro- Federal Government should be a part- and investing. lina. I have this to say for those who ner in that effort. These skills will help them stay out weep and wail about the past 36 years, Despite the size of these needs, the of debt and maintain a good credit I have been putting money into edu- Bush administration is proposing to record, save money for the future, and cation for the past 50 years and it’s eliminate virtually the entire school negotiate an increasingly exceedingly still not enough. construction program that means high- complex financial system. Yes. I started an equalization of fa- er taxes at the local level. That would I filed an amendment that would in- cilities with that sales tax. But we be wrong. I look forward to working clude financial education in S. 1, and I have yet to perform the sort of catchup with my colleagues to protect the pro- am very fortunate to have the support where we provide schools in rural gram, and increase our commitment to of my colleagues, Senators ENZI and areas, and those we have abandoned school modernization. AKAKA. I am hopeful that, working to- within the city, with equal facilities as We have heard a lot of rhetoric lately gether, we can ensure that our next those in the wealthier suburbs. about the need to ensure that no child generation is prepared to meet the I came to Washington with that bone is left behind, and about the need for challenges of the new economy. in my craw, as the saying goes, and I school reform. But, at least until now, In conclusion, I again thank Senators put in a revenue-sharing plan. But in Congress simply has been unwilling to JEFFORDS and KENNEDY for their re- taking the plan around, I found that I put our money where our mouth is. markable leadership on this legisla- couldn’t put it in just for education. Whether we do now may be the most tion. I look forward to working with That is what I was intent upon. If you important issue of all. them and with colleagues on both sides can single out and target the program, There may be broad support for in- of the aisle to make a real commit- I thought you could get the support. creased testing in our schools. But it ment to education in the legislation But I was told no, you couldn’t get the does no good to diagnose a problem if before us. support unless you could get it back to you lack the resources to treat it. But we must put resources with re- the States for general purposes. They I have heard in the last few hours form. The stakes couldn’t be higher be- did not suffer the ills and needs of my that even in the conference committee cause the future of our children and great State of South Carolina. on the budget we have now dropped the our Nation depends on it. So I put in on February 1, 1967, the Harkin amendment, putting $225 bil- Thank you, Mr. President. first revenue-sharing bill, later abol- lion over 10 years into supporting our The PRESIDING OFFICER. The Sen- ished in the 1980s, interestingly, from school system. This is a mistake. We ator from South Carolina. the standpoint of Howard Baker who

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4154 CONGRESSIONAL RECORD — SENATE May 2, 2001 led the abolition, or repeal. He said we I am not for these toys. I am for edu- They want to know what works. We were just financing the Government cation. That is the best defense. have had mathematical studies con- and we should send money back to the Give me $225 billion; give me the Har- ducted about the benefits of title I for Governors so they could take the kin amendment. That is what I want. the disadvantaged. For every dollar we money and do with it what they want- Give me the moneys to flesh out these put in title I, the Government and soci- ed. So we were financing our opposi- programs that have worked. But they ety reap $7. For Head Start, it is $4. tion. We weren’t financing education. come and say the programs have not That works. We were financing our own education. worked. It is ignorance. We are going to have this testing to We learned the hard way. So we did I say to Senator WELLSTONE, the find out who is failing and who is suc- away with revenue sharing. Governors met in 1988. The distin- ceeding, but we are not testing the The next thing I got into was a tui- guished Governor from Arkansas got school building, we are not testing the tion tax credit. I can see the distin- together with another Governor, a Re- principal, we are not testing the school guished Senator from New York now publican leader at the time, and they board, we are not testing, really, the founded, so to speak, Goals 2000. But talking about his Boston Latin school. pupil. President Bush would not put it in. I had the assistance of the Senator As my distinguished colleague from from Arkansas, Kaneaster Hodges. We Then when President Clinton got here to put it in, they fought it. Minnesota says, we are testing wealth. fought that particular diversion of Why? Because the wealthy student— funds from public schools to private So I begin to wonder when they say: We don’t know how the schools are per- the one who starts his education in a schools, and thereupon they fought the good pre-school and has books read to institution, the Department of Edu- forming. Ha, they fought the Depart- ment of Education. They fought to pri- him, and everything else of that kind— cation. We, along with President Car- by the time he’s tested in third grade, ter, established the Department of vatize all the public money for public schools with vouchers, charter schools, he has had 6 years of schooling. With- Education. They wanted to, by gosh, tuition tax credits, any way they out these advantages, a child has only avoid and oppose the Department of could, to destroy the public support for three years of schooling coming into Education. the test. So you are testing wealth. Then I have been on the floor, of public schools. And they come now and The Senator from Minnesota has edu- course, with the vouchers and trying to say they don’t know, when they fought cated this Senator. He has really got- force those. But I had not paid good Goals 2000. We had testing in the Elementary ten into things that mean something enough attention to the testing and ac- and Secondary Education Act in 1994. to this body and this country. We are countability debate until I started lis- They act as if we haven’t heard of test- about to go the way—as I am convinced tening to the distinguished Senator ing. We have testing coming out of our we are running up the national debt, from Minnesota, Mr. PAUL WELLSTONE, ears. But the polls say: Accountability; and we have interest costs of $1 billion and now I know we have to fight. He discipline, discipline, yes. a day—of hollering surpluses, sur- knows of what he speaks. He is not I say to the Senator, in relation to pluses, surpluses, when we have defi- talking about the pollster thing. That that discipline, I remember the mother cits, deficits, deficits. That is their way is the thing I resent and resist around who sent her little boy to school with of getting rid of the Government. And here, this entire operation—that it’s a note for the teacher. It said: Dear this is their way of getting rid of public pollster driven. The cardinal rule of the teacher, my boy Ivan is very sensitive. education—anything to get rid of pub- pollster is: Never take a position that If he misbehaves, slap the child next to lic education. divides the voters. Don’t say you are him. That is punishment enough for We have not really equipped our mi- for chairs and desks. Don’t say you are my Ivan. nority teachers, and yet they have out- against them. Say I am concerned They say: Discipline, yes. I am for ac- standing schools here, there, and yon- about these chairs and desks; they countability. We are going to find out. der. And then we have very poor ones. trouble me. All the Senators are run- Don’t give me that stuff. Bug off. As We know. I read in the morning paper— ning around, and they are all troubled. my grandchildren say: Get a life. I do not have to wait to pass this bill— That is the nonsense we are engaged in. We provide $7 of every $100 spent—or about schools that are practically But I take a poll, and everybody is 7 cents for every $1 spent—on edu- closed. So they are going to take the for tax cuts. We have forgotten from cation. We act as if we have invented test. And what are we going to find whence we came. I am completely ab- education and all of a sudden we are out? What we already know. It is like solutely opposed to the budget settle- going to do something about it. One taking a fellow who can’t swim, who is ment of $1.235 trillion, plus the stim- way or the other, we are not going to drowning 100 yards offshore, and throw- ulus $1.35 trillion, because I believe in do much. But what we do that is work- paying down the debt, not increasing ing ought to be allowed to continue. ing him a 50-yard lifeline. We haven’t it. Specifically, we have the women’s, made it all the way for Head Start, for But the polls do not do that. They infants, and children’s nutrition pro- title I, for all of these measures. And ask you if you are for a tax cut, but gram, which is not part of the edu- then we are going to have the test to they do not tell you we are spending cation budget, but it is an important see whether he can swim, while the surpluses that do not exist. I will bet part of education. I worked with Sen- poor fellow drowns. No. We ought to be anybody any amount of money, with ator Humphrey from Minnesota, a realistic and look at what we know is any odds, that we will end this fiscal state where I worked on and wrote a there. year with an increase in the national book on hunger. I got with him, and we I campaigned all over the State of debt. We have done that each year, put in the women’s, infants and chil- Texas. I have never forgotten it. It was since Lyndon Johnson was President, dren’s program. You have 21 billion not the ‘‘best little whorehouse in for the last 30 years. brain cells, and I have 21 billion brain Texas,’’ it was the best little poor- But now comes education, and it is cells, and 17 billion of the 21 billion house—poorhouse. The Rand Corpora- polled also: Accountability, account- brain cells have developed in the first 5 tion agreed last year that Texas had ability. Here is the crowd that says: We months in the mother’s womb. Without failed to improve on key education want to find out what is wrong. Heav- the proper nutrition in relation to the points. I can get into that debate on ens above, they come to government as protein and the synthesis of the nerve schools, but it isn’t the point here. The if it begins with them. cells during those first 5 months, there point is, we do not want to really find Senator WELLSTONE is really fighting can be as much as 20 percent less cel- that 20 percent or a third of our schools the fight for the youngsters of Amer- lular development when that child is are failures. You do not have to admin- ica, for the economic strength of Amer- born, causing what we call organic ister a test to see what the good ica, and for its defense. The best de- brain damage. The child can’t function, schools are doing. fense is an educated citizen. Do not can’t assimilate. That has everything So what are we going to do about it? give me all the toys—the Osprey: to do with their education, and yet What are we going to do about it? Mr. Jump, move forward, jump around, get WIC is not adequately funded to meet President, nothing. We are going to in it, and kill everybody who gets in it. the needs of all those who are eligible. talk. We are going to speak to the polls

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4155 and say in the campaign: I was for ac- what we have in the Patients’ Bill of gamesmanship and polling politics and countability. I am for accountability Rights, some accountability. If they really do something for public edu- and I voted for testing. absolutely step aside, if they engage in cation in the United States. The Senator from Minnesota and malicious and reckless conduct, mal- If they want a starting point, our dis- some of us others are going to have an practice, then we can bring the suit. tinguished friend from Massachusetts extended debate on this issue. We have That makes them accountable. But, no, has led the way and held the line on to educate our colleagues and get the they are opposed to that kind of thing. public schools for the years I have been support to kill the so-called account- If the test shows schools are failing, up here. I have been glad to associate ability in its crib, the accountability we are not going to put up the billions with him. they refused in Goals 2000 and earlier to improve schools. Instead, they are But I can tell you here and now, this with the testing in the 1994 act. Now going to put on a full course drive for is dangerous to come in and start, they act as if they have a discovery to vouchers to $1,500. What is that going under the auspices of accountability, identify the problem—hit-and-run driv- to do? testing from the third to the eighth ing. The real need is to get teachers’ pay grade every student in all of America. Yes, accountability, accountability, up. If I were king for a day—I ran for They are going to create the very cost accountability. Ask them about the the Presidency on this back in the and the bureaucracy they want to get Patients’ Bill of Rights. There are too 1980s—they laughed but it is still just rid of and waste money that is needed many lawsuits when you bring a suit to as efficacious—I would increase teach- for teachers’ pay. The ultimate is, of get accountability. No, no, we are not er pay, because that $36,000, the aver- course, finding out that there are a lot for accountability. We have too many age pay of a teacher in South Carolina, of schools in need, and we know where lawyers. Get rid of the lawyers. That is doesn’t do the job. they are, and we are trying to get as- also in the polls. Kill all the lawyers, But I go across the stage having sistance to them. I saw it 50 years ago said Shakespeare in Henry VI. Ac- made a graduation speech, and stu- when I put in a county-wide millage for countability. dents approach me and say: Senator, I a school in Awendaw. You put in 100 Unfunded mandates, where are they? wanted to get into teaching, but I mills property tax in that rural area, They were jumping all over the place 7 couldn’t save enough money with the and you couldn’t build a lunchroom, years ago on unfunded mandates. Now pay to send my kids to college. We much less a school. So as chairman of they are pell-mell down the road. For have a lot of dedicated teachers in the the delegation, I put it in. what? The President has put in $320 classrooms and a lot of great schools, So don’t give us these nebulous state- million to cover an estimated $2 to $7 but we are missing out on bringing in ments of flexibility and empowerment billion in costs over the 4-year testing the feedstock of that professional and all these buzz words around here. period. I am concerned that the states teacher because we are not paying Let’s give us some education and test will have to pick up a substantial part enough. We are doing it on the cheap. the Senate. That is where we ought to of that cost. We are doing it on the cheap, and we have a test. Find out if we have passed We had the Governors. We had the know it. the test first. Have we really fleshed local people say, heck, we know, we are But we are going to tinker around. out the women, infants, and children’s there. It is amazing to me the distin- We are going to have reading. We are program? Have we really fleshed out guished President, who had been a Gov- going to have math and science, and we and supported 100 percent Head Start. ernor, acts as if he never has been in are going to have the size of the class- Have we really financed title I for the government before. He would know room. And we are going to build an- disadvantaged? Have we built school that this would hackle every Governor, other building, and we are going to toy buildings so that students can learn every school board, every school super- around with it to try the hit-and-run without the ceiling falling in on their intendent, every principal. They know drive, to identify with the problem but heads or freezing to death? Have we about testing. They are trying to get not solve it. done that? Give us the test first. Find the money. But, no, we have account- Begin at the beginning. Somehow out what we have done. ability. We have unfunded mandates let’s get some revenue sharing with the Or have we regarded what we have al- now, and right on down the road with a teacher out in that rural school or ready known to be the case, what the program that can’t possibly work. But combat pay for the inner-city class- Governors have come in with, Goals it is only going to highlight the need, room teacher. They deserve combat 2000? Have we responded to the test they say, for vouchers. pay trying to keep law and order and that we prescribed with the flexibility The Senator from Minnesota has an act as a parent at the same time. The they said they wanted? In 1994, they amendment that fleshes out a program role of a teacher is just almost unable wanted the States to be able to decide. that works; namely to fully fund Title to be performed in the sense that Have we passed that test? Give us a I before we proceed with a testing man- teachers can’t get around to teaching flunking grade, a zero—except for the date. You have to teach the course be- because of the other particular duties Senator from Massachusetts, the Sen- fore you give the exam. The U.S. Con- at hand. ator from Minnesota, the Senator from gress has not taught the course. We I will have plenty more to say when Iowa, and some others, such as the haven’t given students, in many in- this measure comes up about account- Senator from Connecticut, Mr. DODD. stances, the building. We haven’t given ability. Please spare the Senator here They have been out here working for them the professional classroom teach- from all of these expressions, the poll- education. But there are only a handful er. We haven’t given them the right sters. Has anyone ever heard of a poll- of them who can pass the test if given size class so that they can get the ster being elected to anything? If they to the Senate itself. That is what I teacher’s attention. We haven’t given can find me a pollster who has been want to see. Cut out the pollster’s them counselors, and they need coun- elected to office, I would like to find gamesmanship and the campaigning seling. We haven’t given, of course, the one. A pollster has never experienced and let’s think not of our needs to be different courses and other assistance anything. reelected, but the needs of the country that we have all found, from time to Here are some expressions. We have to prosper and survive. time, is very necessary. So we haven’t to give the child ‘‘a real chance.’’ We I yield the floor and suggest the ab- taught the course, but we are going to want to ‘‘find out what works’’ and so sence of a quorum. give them the exam. We are going to forth like that. We need to ‘‘increase The PRESIDING OFFICER. The have accountability, and we are going flexibility.’’ We need to ‘‘reduce bu- clerk will call the roll. to puff and blow and walk all around reaucracy.’’ We need to ‘‘empower par- The bill clerk proceeded to call the on the political stump saying: I was in ents.’’ Come on. Don’t give us all of roll. Washington and I told that Washington that. Parents are working day and Mr. BYRD. I ask unanimous consent crowd that we had to have account- night and the child is home and nobody that the order for the quorum call be ability. is helping him with his homework. And rescinded. I want them to come with the Pa- we know it. We don’t need a test to The PRESIDING OFFICER. Without tients’ Bill of Rights, because that is prove it. Let’s get away from all of this objection, it is so ordered.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4156 CONGRESSIONAL RECORD — SENATE May 2, 2001 Mrs. HUTCHISON. Mr. President, I ideas about things and discuss them at There is not a more principled, fair understand our time would start in length.’’ person in the entire news media than about 10 minutes. I am going to yield Well, if Sunday morning is the Bob Schieffer. I certainly appreciate time to Senator BYRD, the time up to 4 smartest time period on television— the kind remarks made by the Senator o’clock, and then we will reclaim our that is what Bob Schieffer says it is— from West Virginia. I know Bob time because we have speakers coming I say another reason for that would be Schieffer is very happy tonight, cele- at 4. So such time as he may consume, that it is Bob Schieffer’s time when he brating the anniversary of ‘‘Face the until 4, I yield to Senator BYRD. is reporting to the Nation. He decries— Nation.’’ He has taken it to new The PRESIDING OFFICER. Does the as do I—the 30-second sound bite that heights just by being a person who is Senator from Texas yield time from has replaced the true interaction be- trusted and respected by the American the Republican side to Senator BYRD tween voters and public officials. One people. Both Presidential candidates until the hour of 4 p.m.? reason I decry it, of course, is I am not choosing Bob Schieffer to be the mod- Mrs. HUTCHISON. I yield up until 4 very good at it. A 30-second sound erator of a debate shows he is well re- o’clock to Senator BYRD, but I would bite—it takes me about that long to garded by Republicans, Democrats, and not want it to come from the Repub- say hello or good morning. Independents throughout our country. Sitting in the anchor chair at CBS is lican time if others come and want to f speak on the Republican time. a high responsibility, a high responsi- Mr. BYRD. If the distinguished Sen- bility, an important responsibility. It BETTER EDUCATION FOR STU- ator from Texas will yield, may I sug- was the chair from which Roger Mudd DENTS AND TEACHERS ACT—MO- gest that I only take—I think we have and Walter Cronkite would report TION TO PROCEED—Continued 5, 6 or 8 minutes—— every night. It was the chair in which Mrs. HUTCHISON. Mr. President, I The PRESIDING OFFICER. It is 71⁄2 Edward R. Murrow—perhaps the grand- want to talk about the education bill minutes. father of in-depth, thorough television that is so important to all of us. We are Mr. BYRD. May I suggest that I take reporting—hosted ‘‘CBS Reports’’ and hopefully very close to agreement on that amount of time now and make a ‘‘Person to Person’’ and ‘‘See It Now.’’ bringing the bill before the Senate. few remarks about Bob Schieffer. Then Edward R. Murrow set the standard. We are all a little frustrated because I will wait until 4:30. I could have more Bob Schieffer excels at meeting that we have been waiting for the bill for time at that point, as I understand it. standard. about 10 days. There have been a lot of Mrs. HUTCHISON. Yes, that is cor- There is no obstacle that cannot be negotiations. rect. overcome by the vigorous mind deter- There are some very key issues that Mr. BYRD. I thank the Senator for mined to follow truth. That seems to need to be discussed, and I hope they her efforts to accommodate me. be the philosophy that guides the work will be discussed in the open. I hope The PRESIDING OFFICER. The Sen- of Bob Schieffer. He follows the truth. they will not be negotiated away. Re- ator from West Virginia is recognized. He has a vigorous mind, and he follows form is the key to success in education. the truth, he keeps after it. He does f We are going to spend more money not invent the truth. There is a dif- on education. In fact, President Bush BOB SCHIEFFER’S TENTH ANNI- ference in following and pursuing the has put forward a budget that provides VERSARY AT ‘‘FACE THE NA- truth and attempting to invent it. Bob an 11.4-percent increase in spending in TION’’ Schieffer does not invent the truth, he education. That is warranted because Mr. BYRD. Mr. President, this asks the questions. He asks the ques- we do need to add emphasis to certain evening, politicians, celebrities, and tions, but he does not assume the an- areas of public education. newscasters alike will gather to honor swers. He listens and, from the answers What is going to determine success one of the most trusted reporters in he receives, we all then learn. or failure is whether we reform our sys- Bob Schieffer once told an audience, Washington; namely, Bob Schieffer of tem, whether we make it accountable, ‘‘Your trust is the greatest honor I can CBS News. Bob Schieffer has gained a whether we give parents the ability to receive.’’ Now that says it all. I am not reputation as a man of integrity, an know what their children are doing and a news man, but if I were a news re- honest man, a man who holds fairness porter, it would seem to me that that how they are doing. If a child comes and the truth in the highest regard. would be the pith, the crux, the milk in home with A’s or B’s and is promoted Nothing better can be said about a the coconut. ‘‘Your trust is the great- to the next grade, and you, as a parent, politician, and certainly nothing better est honor I can receive.’’ We know find out 5 years later the child did not can be said about a news reporter. I that, as a general rule, the people of read at grade level, that is a failure in will say that again about Bob America do not trust news people. the system. Schieffer. Mr. Schieffer has gained the They do not trust news reporters. They If a parent does not have the tools to reputation as a man of integrity, an do not trust the news media. They do find out if there is a weakness in the honest man, a man who holds fairness not trust politicians. So Bob Schieffer child’s education, the parent is at a and the truth in the highest regard. We said it well when he said, ‘‘Your trust significant disadvantage, and the child will remember that Plato, while vis- is the greatest honor I can receive.’’ He is doomed forever. iting with Hiero, was asked, ‘‘Why have can speak for me as a politician on We need to make sure parents have you come here?’’ Plato said, ‘‘I am that line also. The trust of the people, the knowledge of how a school is doing. looking for an honest man.’’ So we he says, is the greatest honor he can A lot of people say we should not have have one here—a man of integrity, an receive. That trust is well earned. tests. If we do not have tests, how will honest man, a man who holds fairness I congratulate Mr. Schieffer on his we have a benchmark? How will we and the truth in the highest regard. decade of service at ‘‘Face the Nation,’’ know where the weaknesses are? Now that is saying something in to- and I look forward to watching him for If we have tests, even if the test is day’s world. That is saying something many years to come. He is a man I not perfect, it will show a red flag and about a news man. trust. we will see the weakness. We can deter- Bob Schieffer is a Texan who started Mr. President, I yield the floor. I, mine if the test is not right, if the fail- in journalism as a reporter for the Fort again, thank the Senator from Texas. ure is not real. At least we will check Worth Star-Telegram. He moved on to Mrs. HUTCHISON. Mr. President, I on it to make sure, but most of the a local television station and then to thank the Senator from West Virginia. time the failure is real. CBS. For 20 years, Bob was the net- I so appreciate the remarks he made If we catch the failure at third grade work’s Saturday evening news anchor. about my friend, Bob Schieffer, and instead of eighth grade, we will save For the past decade, he has hosted ‘‘Face the Nation.’’ I, too, have known that child’s future. We will save that ‘‘Face The Nation’’ on Sunday morn- Bob Schieffer for a long time. He grew child’s productive life because we can ings. He has called Sunday mornings up in Fort Worth, TX. His brother and make sure that every child can read at the smartest time period on television, I served together in the Texas Legisla- grade level in the third grade. If we do saying, ‘‘It is the last place on tele- ture. I have known him and his family that, then every child will have the vision where people can lay out their for a long time. chance to absorb the rest of his or her

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4157 educational experience. But that child ability to get an education because to reach his or her full potential with will never be able to absorb the his- their parents never could have afforded a public education. That is the point of tory, the geography, the math, and the to send them. The Pell grants are an this bill. science if that child cannot read at added incentive for them to go to col- Increased accountability. Focus on grade level in the third grade and have lege. In fact, one of the creative parts what works. Look at the other schools the chance to progress. of this bill is increasing Pell grants by to see what they do that works. Talk That is why we are trying to set a $1,000 to any low-income student who to people who have made it work. standard, not a mandate to every State will enter the math or science field in I visited a school in my hometown of about the test that is given but a man- college. Dallas, TX, an elementary school. I date that there be some kind of ac- That would be an exciting oppor- have never seen so much creativity. countability, some kind of test so par- tunity for our minority students, for The students have parents who are in- ents know where the weaknesses are. our low-income students, for students terested. The PTA is very active in the In addition, we want to take the who have not had a chance to have that school. The principal welcomes the schools that are doing well in the same extra Pell grant. If that extra Pell PTA. Stonewall Jackson Elementary socioeconomic area and give that infor- grant will give them an incentive to go School has a diverse student body. mation about what works to the school into the field of math and science, then They are excited about learning. The that is not doing well. That is the pur- that student is going to have a bright teachers are pumped up; the principal pose of accountability: to find out what future. is open and creative; the parents love does work so we will have a chance to We are going to increase by $412 mil- working for the school. It works be- help those that are not performing up lion teacher professional development, cause everyone comes together to try to speed by showing them what has making sure teachers have the tools to make sure every child has the most worked in schools with the same weak- they need to teach, that the best tech- opportunity that child can have. ness areas. niques are given to the teachers teach- This particular school also has a If it is reading that is a weakness, or ing our young people. number of deaf students. They are inte- math, or computer sciences, we will We are going to have a $90 million in- grated into the elementary school. have some examples to show what does crease in the National Science Founda- Deaf students and hearing students are work because we do want to make sure tion, the math and science partner- in the same classes, so the hearing stu- no child is left behind. ships program, so we can assure qual- dents know how to function with the We are talking about reforms that in- ity opportunities in math and science deaf students; the deaf students know clude accountability, some kind of to nurture our potential inventors. how to function with the hearing stu- testing to see where they are and There is a $40 million increase in dents. It is wonderful to see it work be- where the weaknesses are. We are talk- school construction funding for impact cause of the interest of the parents, the ing about creativity to make sure aid schools. An impact aid school is a teachers, the principal, the school su- schools that have teacher shortages school that is near a military base. perintendent, and school trustees. It is have a bigger pool from which to These are school districts that do not a teamwork effort. That is what we are choose. If we do not have a teacher who have the same tax base because a mili- trying to foster in every school in our can teach French and the students are tary installation does not pay local country. not able to learn French in that school taxes. Many of these schools have been We want to reduce bureaucracy in district, why not go the extra mile to starved over the years. We are going to Washington and increase flexibility. certify a person who majored in French give them a boost to try to upgrade the We want school districts to do what in college but does not happen to have school construction in these heavily fits them best. Maybe they need a sin- a teacher’s certificate? Why not expe- impacted school districts where there gle-sex school in part of an urban area dite the teacher certification so the are large Federal institutions. where they have problems with dis- young people in that particular school There is a lot of increased spending cipline. Why shouldn’t they be able to district will be able to learn French? in this bill. But that is not all this bill That is what we are trying to do: give is. If we just increase spending, we offer an all-boys school or an all-girls creativity incentives so there will be don’t need to debate the issues of re- school in a public school environment, more teachers available to teach form; we don’t need to talk about ac- if that is what the parents believe will French, Russian, Japanese, or the Chi- countability; we don’t need to talk focus their children on education. Why nese language; more teachers who can about vouchers or choice for parents or don’t we open our horizons and look at teach math, science, and computer charter schools or trying to get more what we can do to be more creative? skills where there are teacher short- teachers to take up the teaching pro- Most of all, we are trying to empower ages. fession. Why would we do that if we parents. We are trying to give parents We must be creative. We must leave just throw money at it and not do any- the information they need to make the no stone unturned to make sure every thing more? We could just pass an ap- best decisions for their children. We child will get the chance to succeed propriations bill. That is what we have are trying to make sure parents will be with a public education. been doing. That is what hasn’t able to get their children out of a bad We are going to increase spending. worked. environment and into an environment We are going to triple the funding for What we are hoping to do is to now where their child can learn and children’s reading programs to over $1 reform the system. We want to give in- progress and do better. That is exactly billion next year. We will have a 30-per- dividual attention to every child. We what this bill is trying to do. cent increase in funding for Hispanic- are trying to give the Federal money in I am very pleased we have a Presi- serving institutions and historically block grants to the State and local dent whose major priority is education. black colleges because these programs, governments with benchmarks—not I am very pleased we have a bill that which have been increased for the last mandates, not heavy books of regula- will put some creativity into the few years at a very large rate, are tions they have to thumb through be- schools. I am very pleased we will have doing a great service for our country. fore they can take a step. That is not some amendments that I hope will add They are nurturing students in those what we are trying to do. to the creativity and the choices par- schools to keep them in school to get We are saying: Here is the standard ents will have. The bottom line is, if those degrees to be eligible for the we want you to meet. We want every parents know what their children are good jobs that a college education can child to read at grade level at the third learning and if they have an interest in give them. grade. How you do it is your choice. We their schools, they are not going to let We are adding an additional $1 billion will give you extra money for teaching their children stay in a bad environ- for Pell grants next year. At colleges teachers how to teach reading for Pell ment; they are not going to let their and universities where I have made grants, for the added emphasis on math children stay in an environment that is commencement addresses, I have had and science classes, all of those things not serving the needs of their children. so many students tell me it is Pell that would go toward making sure each I hope we can start the amendment grants that are responsible for their individual student has the opportunity process on this bill because I think we

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4158 CONGRESSIONAL RECORD — SENATE May 2, 2001 have a chance to recreate public edu- course, nobody argues with that. That spending remains strong, business in- cation in our country. It needs to be re- is our goal and it should be. We start frastructure investment is rising, man- created. It has fallen down in the last with preschool and go on to have the ufacturing activity is inching up, and 25 years. It is time we brought it back best kind of education we possibly can factory inventories are falling. up. It is time we do not take no for an have for everyone. Not only is that Even the stock markets—and we answer. It is time we do not allow good for everyone, the people them- have learned that the stock market is someone to say that some children just selves, but it is good for our society. not the economy—but even the stock can’t learn. Every child can learn. We We cannot really have successful de- markets are rebounding from their re- just must make sure we fit that child’s mocracy unless we have educated citi- cent lows. The Dow Jones increased individual needs and every child will zens. from 9,500 in early March to almost learn. The key is catching the child That is what we are talking about. It 10,900 yesterday—10,898.34—a 15 percent early enough that we can give the child sounds easy: we are going to support increase. The Nasdaq increased from the full chance to have a quality public schools, we are going to do this, we are 1,619 in March to 2,168 yesterday—a 34 education. If we find out in the ninth going to do that. Then we think it out percent increase. grade that the child is reading at the and say: How do we best do this? How In the midst of the Great Depression third grade level, 6 years will have been do we get accountability? Where should of 1932, which I lived through, Presi- lost for that child’s development. That the money come from? How important dent Franklin Roosevelt cautioned is not fair. We can do better. That is is it as compared to teaching expertise, that the only thing we have to fear is what I hope we will do. for example? What does that have to do fear itself. In the midst of the pseudo- I yield the floor. with buildings, facilities, and these recession of 2001, the only thing that The PRESIDING OFFICER. The Sen- things? the Bush administration has to fear is ator from Wyoming. It is an interesting topic. I hope we stirring up public doubt. Mr. THOMAS. Mr. President, I would will get to it soon. The bill before us This administration has been walk- like to continue under the time on edu- will cover almost all these things. It ing a fine line between promoting the cation, please. will have to do with accountability. It President’s tax cut proposal on the one The PRESIDING OFFICER. The Sen- will have to do with financial capacity. hand and alarming consumers and in- ator is recognized. It will have to do with choice. It will vestors. The Bush administration has Mr. THOMAS. I suppose we are all touted the President’s tax cut plan as a hopeful the committee will soon come have to do with how the money is spent and who decides that. I look forward to possible ‘‘second wind for economic together with their proposal and have growth,’’ so that bad economic news some agreement on the bill and bring it that. I think the arrangements have been becomes good news for the tax cut. here. That is the tune the administration for the Senator from West Virginia to As we think more and more about plays. the education bill, and we begin to begin now, so I yield the floor. The problem is that, in attacking an The PRESIDING OFFICER (Mr. think what are the elements of a suc- illusory problem through the bogus cessful education for young people, of BROWNBACK). The Senator from West cure of massive tax cuts, this Adminis- course we immediately begin to think, Virginia. tration creates two very real problems. first of all, about families, about par- f It threatens our debt repayment efforts ents. That is the early responsibility. BUSH TAX CUT PROPOSAL AND and cuts back on our ability to address It is so interesting to watch in our THE PSEUDO-RECESSION OF 2001 a backlog of infrastructure needs. communities, as we see the youngsters Let’s consider, for a moment, our na- Mr. BYRD. Mr. President, last Fri- with parents who, when the children tional debt. The Congressional Budget day, the Commerce Department re- are very small, begin to help with read- Office projects that the national debt ported that the U.S. economy grew at a ing, begin to give parental support. will increase from its current levels of rate of 2 percent during the first 3 Then as they get to school, we can see $5.7 trillion to $6.7 trillion in FY 2011. their opportunities are much greater. months of this year, January 2001 to The President’s budget would set aside The other things, of course, that we March 2001. That is twice the rate that $2 trillion to retire the national debt talk about are the facilities, the teach- forecasters were projecting. It doubles over the next ten years, but that num- ing opportunities that are provided by the pace of late last year, October 2000 ber is based on two highly unlikely as- the community. We begin to try to put to December 2000. sumptions: (1) that $5.6 trillion in all these things together. Then we Saturday’s Washington Post quoted budget surpluses will materialize in begin to say what is the role of dollars? economist Jim Glassman of J.P. Mor- spite of CBO warnings that they might I think the average expenditure per gan Securities saying: not, and (2) that discretionary spending child is maybe $500. There are substan- These are great numbers. They suggest should be limited to the unrealistically tial differences in the costs of edu- that the economy is not nearly as weak as low numbers proposed by the Presi- cation throughout the country. Then was feared and that we are not close to being in a recession. dent. we begin to measure reading perform- If the massive-permanent tax cuts ance against the amount of dollars This information stands in stark con- are enacted, our debt retirement ef- that are spent. We see as dollars go up, trast to what the administration has forts may be compromised and that reading capacity does not necessarily been telling the American people in re- could significantly disrupt the finan- go up. So we say what is it that has to cent months. In presenting his budget cial markets, resulting in higher inter- be done besides dollars? and tax cut proposals to a joint session est rates and slower economic growth. We begin to think of the role of the of Congress on February 28, President An equally important concern is Federal Government versus the role of Bush declared: whether these tax cuts will allow us to the school board and the State, in the long economic expansion that began al- adequately address this country’s fail- terms of decisions about school build- most 10 years ago is faltering. ing infrastructure. Roads, bridges, air- ings, for example. Traditionally, the As recently as March, White House port runways, mass transit systems, building of school facilities has been a aides warned that $1.6 trillion in tax water and sewer systems, and energy responsibility of local governments. cuts were needed to avert an impending delivery systems—we could go on and Local governments make the decisions. recession. on—are vitally important to support Then we find ourselves looking at Contrary to the administration’s dire thriving businesses. They enhance pro- things that need to be done in that warnings, the economy has continued ductivity. They provide jobs. They are area and we see we need Federal its unbroken 10-year expansion—the basic to a strong economy. money. When Federal money comes, longest economic expansion in U.S. his- Yet, according to the American Soci- along with it comes regulation. People tory. The Nation’s unemployment rate ety of Civil Engineers, ASCE, one-third say: Wait a minute, get the Federal is near historic lows at 4.3 percent. of the nation’s major roads are in poor Government out of our lives. Consumer spending increased from a 2.8 or mediocre condition, costing Amer- It is not an easy issue. Do we want to percent rate in February to a 3.1 per- ican drivers an estimated $5.8 billion a have the best education we can? Of cent rate in March. Construction year.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4159 The latest ASCE survey revealed and not have to sit on the porch of the Drinking Water/Wastewater: The that 29 percent of the nation’s bridges old county poor farm, and not have to President proposes to reduce funding are structurally deficient or function- call upon their children, who were al- for EPA clean and safe drinking water ally obsolete. ready struggling, to take them in. by $463 million and grant and loan lev- Airport capacity has increased only 1 What do we see happening? els for the rural water/wastewater by percent in the past 10 years. No wonder We see that the Social Security pro- $100 million. airport congestion delayed nearly gram provides the financial safety net I traveled around the world in 1955, 46 50,000 flights in one month alone last for our Nation’s seniors, yet it will not years ago. In most of the countries year. be able to rely on payroll tax revenues where I traveled, we did not find clean Due to aging, outdated facilities, and after 2016 just 15 years from now. Un- drinking water. We were told not to severe overcrowding, 75 percent of our less we plan now for this eventuality, turn on the faucet, not to drink the tap nation’s school buildings are inad- where will the revenue come from to water: Don’t drink it. Boil it in ad- equate to meet the needs of school chil- ensure that these retirement benefits vance. Oh, I saw many of the beautiful dren—to meet the needs of America’s are paid if the surpluses don’t mate- sights of the world—the Taj Mahal, the schoolchildren, tomorrow’s citizens, rialize? pyramids of Egypt, Angkor Wat in and tomorrow’s leaders. Federal dollars also support high- Cambodia—but the most beautiful The nation’s 54,000 drinking water technology research which, in turn, is sight I saw, after that 66 days of trav- systems face an annual shortfall of $11 transferred to the private sector to eling around the world, were the two billion to comply with federal water help domestic businesses compete more little lights, the two little red lights in regulations. efficiently in the international market the top of the Washington Monument Some of the nation’s 16,000 waste- place. when I flew back into National Airport water systems are 100 years old. More Where will the money come from to at the end of that journey. And what a than one-third of U.S. surface waters finance these human infrastructure joy it was just to be able to go to the do not meet water quality standards. needs—if the kitty is blown—if the spigot in the kitchen and turn on the These statistics show the infrastruc- kitty is blown on tax cuts? water and get a glass of fresh, clean, ture needs of a third-world nation, not The reality of this year’s budget safe drinking water. the world’s last remaining super power. process is that if the Senate decides to There are millions of people in this Furthermore, these statistics only approve 10-year tax cuts as large as $1.6 country today who cannot go to the reflect the gap between federal funding trillion, or even $1.35 trillion or $1.2 water faucet and turn it on and get safe and our nation’s physical infrastruc- trillion, it is likely to do so at the ex- drinking water—right in this country. pense of everything else that we owe to ture needs. What about our human in- One does not have to go to Kandahar, the American people. frastructure needs? one does not have to go to Afghanistan You, the people as I am looking right The Senate voted last month to set or to Pakistan or to Vietnam or to into your eyes through that electronic aside $225 billion in tax cuts to finance Korea in order to experience what I am camera behind the Presiding Officer’s investments in education. talking about. Just go to West Vir- chair. It is you. Yes, it is your money, The Senate also declared its intent to ginia. There are some places in West but it is also your Social Security pro- set aside $300 billion for a prescription Virginia where the people do not have gram, it is your Medicare program. drug benefit—twice the amount allot- safe, clean drinking water. Whether you are young or whether you What about dams and navigable wa- ted in the President’s budget. are old, it is going to affect you, the Medicare is estimated to have 45 mil- terways? American people. The President proposes to reduce lion beneficiaries in 2015 (11 million The administration is fond of saying funding for the Corps of Engineers from more than 2000), yet the program will that these projected surpluses are the $4.5 billion to $3.9 billion. The Presi- not have the resources to finance bene- people’s money. And they are. Yes, it is dent proposes no new starts despite a fits after 2016, 15 years from now. the people’s money. But what the backlog of $38 billion of authorized but Let me say that again. This should American people expect for their tax unfunded projects. be of interest to everybody in this dollars— modern and safe roads—safe Hazardous waste disposal, what about country. roads on which they can take their that? Despite a $13.6 billion backlog for Medicare is estimated to have 45 mil- children to the childcare center, on cleaning up toxic sites on the national lion beneficiaries in 2015; yet the pro- which they can go to church, on which priority list, the administration pro- gram will not have the resources to fi- they can go to school, on which they poses to freeze Superfund at the FY nance benefits after 2016. can go to the bank, on which they can 2001 level. Freeze it. Do not increase it. Likewise, the Social Security pro- go to the grocery store, on which they Leave it at the 2001 level. gram provides a financial safety net for can go to work—safe roads, modern Instead of addressing the Nation’s in- our Nation’s seniors; yet it will not be roads, clean drinking water, adequate frastructure needs, this administration able to rely on payroll tax revenues health care, reliable retirement bene- chooses to devote its resources to a so- after 2016. fits, access to higher education, and called fiscal stimulus, even though the Let me say that again, talking about better public schools. economy seems to be correcting itself the Social Security program. The President’s budget does not even without one. I can remember when we didn’t have allow for what the Congressional Budg- The President has said that the eco- any Social Security program in this et Office says is necessary to maintain nomic engine is beginning to sputter, country. I can remember when Frank- current services in such key areas as and that tax cuts are needed to accel- lin Delano Roosevelt and a Democratic transportation, agriculture, and en- erate the economy. What good does it Congress provided the Social Security ergy—we have an energy problem in do to rev up the economic engine if the program in the country. this country, don’t we?—and certainly roads are in such a state of disrepair Before that time, when people be- does not provide what is necessary to that they cannot be traveled? Even the came too old to work, they either stood address the backlog of infrastructure fastest, most expensive, most shiny, at the gates of their children with their needs in education, health care, and a glossy car in the world cannot travel hats in their hands hoping that their whole host of other areas. over bridges that are dangerous, falling children would take them in, or, other- Consider the following: Highways, apart, and roads filled with potholes. wise it was over the hill to the poor- bridges and transit: The President pro- And one does not have to travel very house. I can remember that. poses to divert—yes, you heard me ex- far to see potholes. Just drive around All through the years, the actly; divert—$430 million of TEA–21 in the Nation’s Capital. Potholes—one workpeople of America, the people who funding in FY 2002 from highway con- sees on television the pictures of auto- have labored and earned their bread by struction to other transportation pro- mobiles hitting those potholes and the sweat of their brow, paid into that grams. then having to go to the nearest garage Social Security program as did their Schools: The President proposes to to have the axle replaced. The tires are employers, and looked forward to the terminate the $1.2 billion school con- blown. Right here, in the city of pot- time when they could retire in dignity, struction program. How about that? holes, Washington, DC. One does not

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4160 CONGRESSIONAL RECORD — SENATE May 2, 2001 have to go to Mud, WV, or to Duck, ticipate needs. How can we do that if Wellstone and Bond amendment, or for WV, or to Sophia, WV. Just go to we squander our ability to make in- fossil fuel programs, or for the Na- Washington, DC. The potholes are vestments for the future because of tional Science Foundation, the Bond there. huge tax cuts, huge tax give-backs and Mikulski amendment, for food Most people expect to get something now, based on projections which may safety, the Clinton amendment, for for the taxes they pay. They expect not be real? conservation funding, the Murkowski clean, safe water. The taxpayers expect The Associated Press is reporting amendment, for energy research, the to see, modern highways, and transpor- today that President Bush has struck a Reid amendment, or for law enforce- tation systems. They expect to see food deal with the Republican leadership on ment, the Leahy amendment? The free of toxics, a sound education sys- a so-called budget deal. Further, I un- President proposes to cut State and tem, decent health care, and safe derstand that the House and Senate local law enforcement by over $1 bil- streets and neighborhoods. The frustra- Budget Committee chairmen are rush- lion. Where will the money come from tion comes when the taxpayers don’t ing to file the budget resolution con- to restore those cuts? Where will the see their tax dollars working for them. ference report this evening. This is an- money come from to add funds for We tell them their tax dollars are col- other example, if it is true, of the health centers, the Bond amendment? lected to buy these things that will im- President and the Republican leader- The PRESIDING OFFICER. The Sen- prove their lives. ship disregarding the President’s prom- ator has used his 30 minutes. When we don’t deliver, we break faith ise to bring bipartisanship back to Mr. BYRD. I ask unanimous consent with our promise and we undermine Washington. that I may proceed for 5 minutes. the trust of the taxpayers. I say the The House and Senate took up the The PRESIDING OFFICER. Without people don’t want their money back, budget resolution without a detailed objection, it is so ordered. they want their money’s worth. We President’s budget. For the first time Mr. BYRD. And what about our Na- hear this refrain being sung. I can hear in its history, the Senate Budget Com- tion’s infrastructure? Where will we it now wafting its way in the refresh- mittee did not mark up the budget res- get the money to restore the cuts pro- ing air of May from the White House at olution. And now we hear we will have posed for clean water and safe drinking the other end of Pennsylvania Avenue: a budget resolution conference report water, for the Corps of Engineers, and The people want their money back. No, that was produced without the involve- for school construction? I say; the people want their money’s ment of the ranking members of the Very often in this country, there worth. House and Senate Budget Committees, seems to be nothing on our radar If I go to the grocery store with my also without any input by the ranking screen except the immediate, the here wife Erma to buy food for the weekend, members of the Senate and House Ap- and now. We think no further than I don’t want the grocery man to smile propriations Committees. next week, next year or the next elec- at me and say: I won’t fill up your So what is in this conference report? tion. Where are we if our leaders fash- shopping cart but I will give you your We do not have the report, but accord- ion fiscal policy on such things, on money back. I don’t want my money ing to the press reports, it contains such bases? Where are we as a Nation if back; I want my money’s worth. $1.35 trillion for tax cuts over 11 years the most vision we can muster is a co- When I hire a contractor to fix my lossal tax cut for the wealthy that may roof if it is leaking, I don’t want him to and it limits discretionary spending to a 5-percent increase for fiscal year 2002. jeopardize such basics as our ability to tell me he won’t do the job but he will ensure a clean water supply to all of give me my money back. I want to be Where is the bipartisanship? I am not our citizens? It is a hollow vision. It is dry. I don’t want the rain to come into in on such a deal. I am the ranking a vision that appeals to greed. It is a my modest cottage. I don’t want my member of the Appropriations Com- vision that fails to ask us to pull to- money back; I want my money’s worth. mittee. Where is the bipartisanship? If I take my old Chevrolet to a me- The Administration puts on a big show, gether as Americans for the good of the chanic because it won’t run, I don’t having invited everybody down to the whole country. It is a vision that sets want to be told that the car can’t be White House. Where is the bipartisan- up a patchwork quilt of a nation, with fixed but I will get my money back. I ship in this budget conference report, if areas of prosperity next to areas of don’t want my money back. I want my what we are reading in the press is poverty. It is a vision that makes a money’s worth. Fix my car. That is true? hollow joke out of the word ‘‘biparti- what the American people want. They I am also told that it contains budget sanship.’’ It is a ‘‘fold your hands,’’ want us to get the most from the taxes process provisions, such as a defense ‘‘you do it’’ vision, based on an ide- we collect. They want us to plan ahead firewall, that were in neither the House ology and an experiment that failed in and invest in our country. They want nor Senate resolutions. the 1980’s. Most people in West Virginia us to exercise stewardship in their best What will be the effect of a 5-percent won’t benefit from this tax cut, but interest. They don’t want us to creep increase for discretionary programs? they will suffer from the continued up to them with our head down and That is what I hear: Discretionary will lack of investment in the basics. They with a long face and say to them: Here, be 5 percent. are not by themselves. West Virginians you gave us this tax money. I hid it in At best, this level provides only won’t be suffering alone. There will be a napkin. Here is your money back. No. enough of an increase for nondefense others like them in every State of the That is like the unfaithful steward in programs to maintain last year’s fund- Union. They don’t want their money the Biblical proverb. ing levels, adjusted for inflation. This back. I am talking about my constitu- The American people want to get the level will leave no resources for in- ents. They don’t want their money most from the taxes we collect. They creases that we all know are necessary back; they want their money’s worth. want us to plan ahead and to invest in for education, for infrastructure, for I implore this administration to take our country. They want us to do the research and development, and for pro- off the dark sunglasses and think about basics that feed the economy, to allow moting our energy independence. What that word ‘‘bipartisanship’’ and lift its for future growth and anticipate future about Social Security or Medicare? nose from the ideological bible of the change. We fail them if we don’t do The increases being debated on the tax cut religion. Let me say that again. these things. We have failed them if we floor for elementary and secondary I implore this administration to lift its say: Here, just take your money back. education this week could not be fund- nose from the ideological bible of the The people can’t repair highways. They ed, to say nothing of other education tax cut religion. There is much more to can’t build sewers and clean up water programs such as Pell grants. During keeping faith with the American peo- systems. They can’t build new airports. debate on the budget resolution in the ple than tax give-backs for the better They can’t inspect the food supply. Senate over twenty amendments were off. Government exists to take care of adopted to add discretionary spending. Building a strong Nation does not things that people cannot do on their Almost half of those amendments were just mean building another weapons own. offered by Republicans. Where are we system. Building a strong Nation It also exists to make intelligent going to get the money to pay for in- means giving our people the basics, the choices about future trends and to an- creases for veterans’ medical care, the education, the health, the opportunity

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4161 to compete in an increasingly global pened over 10 years ago, and as I sit been getting for the last 20 years. We economy. It means providing the roads, here in this Chamber and listen to the will spend more money and we won’t transportation, water and sewer facili- debate on education, it hits me that get anything any better. ties which support a thriving economy nothing has changed. The issues that Unfortunately, as I listen to speeches and allow the people to follow their were prominent 10, 15 years ago are in this Chamber, particularly the dreams. still the issues we are dealing with, and speeches from those who are dis- This morning’s newspapers reported that is very depressing. appointed with President Bush’s pro- that the Republican leadership had I go back to a comment that was posal, I discover that there is an inter- reached a tentative deal on the overall made to me by one of the employees of esting attitude in Washington: If a pro- amount of tax cuts that can be passed the Utah State Board of Education gram is good, Washington says spend by the Senate. I noted that no deal has when we were talking about changes more money on it. If a program is bad, yet been reached with regard to discre- that needed to be made. He said to me, Washington says spend more money on tionary spending, although a consensus ‘‘Bob, don’t be so hard on us. We are it. They don’t seem to differentiate be- seems to be consolidating around a 5- changing. We are changing a little bit tween one situation and the other be- percent figure. That is not bipartisan- all the time. It is just that we are not cause they have a one-size-fits-all solu- ship. Where was I? Where were the changing as fast as you want us to tion, which is to spend more money. It ranking members? Where were the change. Some of the things you are makes us feel good to spend more chairman and the ranking member of asking us to do, it will take us 15 years money. It makes us feel good to be able the Senate Appropriations Committee to do.’’ to go home to town meetings and say, in this deal? Where is the ranking I stopped and pointed out to him that as I have said—I fall into the same cat- member of the Senate Budget Com- 15 years is longer than it takes a child egory when somebody starts attacking mittee in this deal? Does the White entering school in kindergarten to me on education—I have voted to in- House call this bipartisanship? graduate from high school. I said, ‘‘In crease the budget on education every I hope the Senators will give due rec- other words, you are saying if we come time since I have been in the Senate. ognition to the real threats facing this to the conclusion that this is the right That kind of shuts them up. They can’t country—the declining state of our in- thing to do, no one currently in Utah attack Senator BENNETT for being anti- frastructure and our national debt— schools will get the benefit of that. A education if he promises to keep spend- and not chase will-o’-the-wisp, pseudo- whole 15-year cycle could go by and ing more money on education. They recessions, and money-back guarantees somebody could enter kindergarten and never ask me the fundamental ques- that cannot deliver the goods. graduate from high school without get- tion: What have you done to change Mr. President, I yield the floor. ting the benefit of something we decide the system so that it gets better? f now has to be done.’’ What have you done to change the BETTER EDUCATION FOR STU- The depressing thing is that con- system so that the reading scores start DENTS AND TEACHERS ACT—MO- versation took place close to 15 years to go up? Well, that is a little harder. TION TO PROCEED—Continued ago and we are still having the same It is much easier to say, well, I voted The PRESIDING OFFICER (Mr. debates around here. to spend more money, and send me to I have put up a chart, which the Sen- ALLARD). The Senator from Utah is Washington and I will vote to spend ator from Maine, SUSAN COLLINS, has recognized. more money. Mr. BENNETT. Mr. President, we used. I want to refer to it again be- President Bush wants to spend more have had a lot of conversation on the cause we need to reinforce a funda- money on education. A lot of people floor in the last week about education, mental truth. The source for the chart say, boy, that is unusual for a Repub- and given that education is the No. 1 is the National Center For Education lican. The Democrat reaction is, we issue before us and the one that, ac- Statistics, in the Digest of Education want to spend even more money than cording to the polls, is the No. 1 issue Statistics. The red line is expenditures President Bush wants to spend, and we on the minds of most Americans, I on education in 1999 dollars. So these are back in the same Washington trap, think that is appropriate. So I am are constant dollars adjusted for infla- which is, if it is a good program, spend going to join in that conversation and tion. Back in 1971, this is where they more money on it; if it is a bad pro- make some comments on education to- were, and now you see the line goes up. gram, fix it by spending more money night. I trust I will have an oppor- This is where they are today. It is on it. tunity to make some comments on roughly double the dollar amount. Here We need to get away from that. We education a little later on as the de- are the reading scores; it is absolutely need to break out of that syndrome and bate proceeds. flat. The yellow line is the fourth say: Let’s not spend more money; let’s Members of this body have heard me grade; it is absolutely flat. The eighth spend smarter money; let’s begin to de- before talk about my experience as far grade is also absolutely flat. The 12th mand a return on our investment; let’s as education is concerned. It was the grade is absolutely flat. begin to say this is not good enough educational issue that got me back We keep spending more and more and we are not going to give you more into public life. I was enjoying a career money on education and keep getting money until we can be convinced that as a businessman at a relatively pros- exactly the same results. The former the money we are spending is pro- perous organization. I was the chief ex- Senator from New York, Mr. Moy- ducing better results. ecutive officer, so I got to make a lot nihan, once made a comment while That brings me smack into the issue of decisions. For example, I got to looking at a chart that was even more that has been discussed today, which is choose what kind of health care I had. distressing than this, where the ex- fully funding title I. None of the other employees got to do penditures per pupil were going up and That is a great political hot button: that, the way the health care system reading scores were going down, and we must fully fund title I. That is why works in America, but I did because I with his sense of humor and sense of it is not working. That is why we are was the chief executive. irony he said, ‘‘Maybe we can postulate not getting the effectiveness. We have I got a phone call from the chair of that spending more money on edu- only funded it to this level, and we the Utah State Board of Education cation causes education to get worse, should be funding it to that level. asking if I would serve as a member of because that is the trend line. The That is a great way to put off this de- the strategic planning commission for more we spend, the worse things are.’’ cision. That is a great way to continue that body, and I agreed. Then she Well, this chart indicates, at least, doing what we have been doing without called back a little later and said, ‘‘We that the more we spend, the more facing the fundamental question, which want you to chair.’’ I said, ‘‘Well, all things stay the same. If we are satis- is, Why has title I not been effective? Is right.’’ So I became chairman of that fied with what we are getting in edu- there a possibility there is a reason planning commission and immersed cation right now, then all we should do other than the fact that we have not myself in issues of education. is leave things exactly as they are but been spending enough money on it? It was a wonderful experience. The spend more money on them. We will Oh, that is very hard to discuss in most distressing part of it is that hap- get exactly the same results we have Washington because, as I say, the all-

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4162 CONGRESSIONAL RECORD — SENATE May 2, 2001 purpose answer to everything is, fund measure where they are without pay- kets and it turned out to be really stu- it; spend more money on it. ing them to measure where they are. pid—heavy investiture with little or no Have we ever looked at title I to de- I ask the question, What responsible return. But some of the products revo- termine if there are other reasons why State superintendent is not anxious to lutionized the company. Some of the it is not as effective as it is supposed to conduct assessments right now? I can new territories we entered turned into be, other reasons besides money? The say that with some validity because in vast new opportunities and overall, by last comprehensive study of title I and my home State of Utah, they are al- being willing to try and assess and, how it works was made in 1994, 7 years ready doing the assessments. They are yes, spend more money, we grew the ago. We have been flying blind for 7 paying for it with State dollars. company from a few hundred thousand years. For 7 years we have been going Why? Because they have come to the dollars a year to a $400 or $500 million on faith. same conclusion that President Bush business. You say schools are different; I believe in faith. I will yield to no has: If you are going to spend the you are not trying to grow the school Member of this body in my faith in a money smarter, you have to under- or trying to be entrepreneurial. I am religious concept to which I have made stand what is going on. So it is intel- not trying to grow the school, but I am a very firm and solid commitment. But ligent stewardship on the part of the trying to grow the trim lines and see when it comes to things that are not of State board of education in Utah for that after 20 years of being flat, can’t the spiritual world, I want some proof. them to take precious money in the there be a wiser spending of money. I want something besides just blind State and spend it on assessing where If you want to get the results you are faith. I think in 7 years we ought to be people are, what is happening, what are getting, keep doing what you are able to come up with some assessments the outcomes, how well are we doing. doing. That is a fundamental truth and some understanding of how things One of the questions I will raise when they teach in business school. If you are going that will cause us to spend the amendment comes up that says we want to keep getting the results you our money smarter. have to have Federal funds to pay for are getting now, keep doing what you We now have a President who is say- the assessment is this one: What hap- are doing now. If you want different re- ing, let’s test the results school by pens if the State is already paying for sults, you have to do something dif- school and monitor who is doing well the assessment? Does it still get the ferent. That, ultimately, is the chal- and who is not. I come out of the busi- Federal funds that it would otherwise lenge of the Bush proposal on edu- ness community. That is a little like get or are you going to penalize the cation. saying, let’s start to keep books on our States that are doing the right thing It has taken a little while for a lot of sales. Instead of just saying, well, we now by saying we will not give you the people to understand that, for a lot of have a sales force, let’s spend money on money and, thus, reward the States people to come to grips with that. sales, let’s start to keep track of which that are avoiding assessments by giv- President Bush is proposing something different. How threatening that is. How salesman or saleswoman is performing ing them the money? better than which other one. These are issues that are very dif- unsettling. How disturbing. The Presi- To a businessman and business- ferent from the standard Washington dent of the United States is saying we woman, that is just obvious. You do answer which is: Just give them the are not getting what we need to get; let’s try something else. And he is will- not make an expenditure until you money; just spend the money. have an assessment of how things are No, we need to know where we are. ing to spend for it. The amount of going. You do not hire somebody or One of the first places that we should money that the President has proposed give somebody a raise or hand them a start in assessments is appropriately as an increase in education spending is more than the Clinton administration bonus until you have at least some un- title I. Yes, title I money and title I ever proposed. So no one can say he is derstanding of how well he is doing. If circumstances are very controversial. being cheap about this. No one is say- you have somebody who is not doing We have not had a complete analysis of ing he is not willing to put his money very well, you do not give him a bonus. how well that has been doing since where his mouth is, to use the lan- You try training him; you try moti- 1994. Let’s start to assess title I. Before guage of the gambling community. He vating him; you transfer him to an- we say the magic words ‘‘fully fund,’’ is willing to put up the money. But he other position where he might be bet- let’s ask the magic question: What are is saying, I don’t want to spend it in ter suited; but you do not automati- we funding? Are we funding failure? We the same old ways; I want to try some- cally say, Well, you are not doing it do not know. Are we funding medioc- thing new. I am willing to fund the ex- rity? We do not know. We are funding very well, but the way to solve your periment, but I want to find out if we problem is to give you more money. a wonderful sounding goal, but are we can’t do it better. That is the attitude in education: We funding results or are we funding fail- In order to find out if we can’t do it do not really care whether you are ure? better, we have to start making assess- doing well or not. All we know is we Let’s find out. Let’s do the assess- ments and then we have to pay atten- can feel good about spending money on ments. Let’s spend the money to find tion to what the assessments tell us. education because we are all for edu- out what is happening with title I kids, Boy, is that revolutionary. Is that cation. how it could be done better, how it scary. Track what is happening as we The core of the Bush proposal is as- could be done smarter, how it could be spend this money in different ways and sessment of results. The core of the done quicker, and then I am perfectly then pay attention to what that track- Bush position on education is to find willing to vote for the money. I am per- ing says. out where we are. The driving force be- fectly willing to spend the money if I No, the President’s opponents say, it hind everything he is pushing is under- know it is being spent on something is all too threatening. It is all too dif- standing what is happening, and that is that will get results. ferent. Better fall back into the old po- so threatening to people who are com- My history as a businessman was litical ruts we have been in forever in mitted to life as it has been, the status that I was willing to take a risk with this town, which is, pick up the slogan, quo, that they can all find reasons to the shareholders’ money. Some of the pick up the good-sounding title, and complain about it. shareholders did not like it. They paste money on it. Then go home and One of the reasons to complain about wanted business just as it was always brag to your constituents that you are it that I have heard is that it is going done: Don’t try anything new; don’t pro-education. After 20 years of doing to cost money. Hey, we cannot spend launch any new product, that is risky; that, there has been no progress. money on assessments; we must spend don’t try to break into any new mar- Maybe it is time we did something money in the traditional way to get ket, that is expensive. A business that different. Not ‘‘maybe’’—it is definitely the traditional results. takes that position is a business that time we did something different. Some say, All right, we will go along dies over time. Let me ask this question rhetori- with the assessments as long as the When I was running our business I cally. Suppose the Bush program Federal Government pays for it. We tried some new products and some of doesn’t work. Suppose we spend all of should not put that burden on the them failed badly. They were expen- this money that President Bush is try- States. We should not insist the States sive. I tried to go into some new mar- ing to get us to spend in different ways

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4163 and the reading scores stay flat. What enter the United States; that Toyota will meet those needs. If we can, we have we lost? What has that cost been cars were stopped at the shore and not can start to see these test score lines compared to business as usual? allowed to come in. Toyota was so on this chart begin to come up along Yes, President Bush can be faulted threatening to them, they even came with the expenditure line. for spending that extra money on edu- to the Congress and asked for legisla- President Bush is not afraid to raise cation and not getting any tangible re- tion that would have effectively kept the top line, the expenditures. We Re- sults. But I suggest if we go the route Toyota out. publicans are not afraid to do it with many in this Chamber want to go, Why was Toyota so threatening? him. But we don’t want to do it focus- which is to say ‘‘don’t change the sys- There was a fundamental difference in ing on the system. We want to do it fo- tem in any fundamental ways, but do focus. General Motors, Ford, and cusing on the child. raise the money,’’ we will get exactly Chrysler were focused on the car. What So when somebody says fully fund the same result. Everybody will feel does the car look like? How does the title I, my question is, How is title I good about it, except the kids. car drive? What is the engine in the helping the children? How is title I That is where I want to end up be- car? What can we change in the car? working? cause that is where the primary focus The whole focus was on the car. Well, we don’t know. should be. That is the fundamental Toyota came to America with the Why don’t we know? Because the last issue of education—the kids. We don’t focus on the driver. What does the driv- study that has been done on the effec- fund education in this country to make er want? Well, they did a little sur- tiveness of title I was done in 1994. All right, I have gone around the ar- politicians feel good, or at least we veying and they discovered that the gument. I do not want to repeat it one shouldn’t. We don’t fund education be- driver wanted, among other things, re- more time. But I do want to summarize cause we want to maintain the sanc- liability in the car. They didn’t want it it and make the point one more time. tity of those buildings that we put up to break down after 20,000 miles. The This is a fundamental crossroads for or because we want to provide employ- driver wasn’t as interested in style as the Senate, the Congress, the Govern- ment for the teachers, the aides, the he was in stability. Toyota said, Find ment as a whole. Are we going to keep janitors, and the school lunch people. out what the driver wants and then de- doing what we have always done, which Boy, they would all be in the unem- sign a car that fits it. By focusing on gives us a warm, personal, political ployment ranks if we did not keep the driver, they made cars smaller so feeling and political cover when we go funding education. they could fit in parking lots. By focus- That is not why we fund education. ing on the driver, they made cars home, by saying we spent more money We fund education for one purpose and cheaper to operate so you didn’t buy as on education, to prove how much we one purpose only: to empower our chil- much gasoline. They found a ready love education? Or are we willing to dren to function effectively in society. market in the United States for their take the risk that President Bush is Put in place whatever subdefinition cars. asking us to take, to say the time has you want. We fund education to em- Fortunately, the American manufac- come to think about doing it dif- power our children to become good turers were not successful in keeping ferently? The time has come to think citizens. We empower our children to Toyota out, and the pressure of the about spending the money differently. become good wage earners. We em- competition of Toyota made the Amer- The time has come to make assess- power our children so they can become ican cars substantially better. The ments and evaluations that will help us good parents. Put whatever subset you American manufacturers decided they direct the money more intelligently. The time has come, instead of con- want, but the fundamental reason we had better focus on the driver, too, and gratulating ourselves on the fact that fund education, the only reason we each manufacturer picked a niche of we make the red line go up, to say, fund education, is so that our children drivers and began to produce products Let’s hold ourselves accountable for will be able to function effectively in that would fit those drivers and they the fact that the blue and the green society, in whatever role they have. began to prosper and discovered that For far too long the focus of edu- Toyota was not going to put them out and the yellow lines have not budged in cational funding and educational re- of business. They had a shift in their 20 years. That is the challenge President Bush form and educational structure has focus: one group focusing on the car, has given us. I hope we are equal to it. been the system and not the children. I the other group focusing on the driver. Mr. President, I suggest the absence went through that when I was in my The group focusing on the driver was of a quorum. situation as chair of the strategic plan- winning until the other group started The PRESIDING OFFICER. The ning commission that I mentioned. focusing on the driver as well. clerk will call the roll. Over and over again, everybody who I use that analogy to say, You people The legislative clerk proceeded to came before me talked about ‘‘the sys- are focusing on the car. You are focus- call the roll. tem.’’ This is how we tweak the sys- ing on the school building. Should it be Mr. ALLARD. Mr. President, I ask tem; this is how we change the struc- painted blue or yellow? How many unanimous consent the order for the ture; this is how we work on the orga- rooms should it have? What kind of air quorum call be dispensed with. nization. conditioning should we have in the The PRESIDING OFFICER (Mr. BEN- I kept saying, Wait a minute. Wait a school? What kind of landscaping NETT). Without objection, it is so or- minute. Your focus is in the wrong should there be? What should be the dered. place. Your focus should be on the chil- structure of organization? Should the Mr. ALLARD. Mr. President, I lis- dren. principal have one aide or two aides? tened to your comments with enor- They would say, Sure, sure, sure, You are focusing on the system. Who is mous interest because I think you that’s right. Now, let’s go back. In focusing on the kids? made some very good points. I wanted order to fix things we have to change It is just possible that the kids are to bring some comments to the floor the structure, we have to change the going through this school, this system from a neighbor’s perspective, a neigh- organization, we have to change the re- you have built and created, and they bor of the great State of Utah, what I porting relationship. are not being empowered to function have been hearing about education in No, no, no, I would say. Your focus effectively in society. What do the kids Colorado. isn’t on the children. need to function effectively in society? Colorado has taken a very progres- Finally, I came up with this analogy. As soon as you put your focus on that, sive approach to education with the It is imperfect, but I hope it makes the you may discover a very different kind new Governor of Colorado, Governor point. I remember when the big three of school needs to be constructed Owens, and the Colorado Legislature. auto manufacturers had one common around the needs of the children. That They have decided to try to do some- enemy, the one thing they were abso- is what President Bush is talking thing about education. In that regard, lutely united on. That enemy was about. Let’s make some assessments of they are probably somewhat ahead of named Toyota. They were determined what is happening with the students what we see happening in other States. they would do everything they possibly and then see if, from those assess- What they are attempting to do is could to see to it that Toyota did not ments, we can create a system that very much the same type of program

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4164 CONGRESSIONAL RECORD — SENATE May 2, 2001 that the President is proposing to the I have talked with educators in the needs are. It may be that they just Congress. As a Congress, we need to State of Colorado. I have members in built a new school building and they help the President give the States my family who are educators. I have a don’t need more money for a school more control over the educational sys- great uncle who is president of the building. So they can’t participate in tem—with accountability. I do think Teachers College. Obviously, education the dollars that go towards a new accountability is the key. I share the is important to our family. It is impor- school building. Their need is for observations of my colleague from tant to me. teachers. So the school district, in that Utah that test scores are not getting We have to develop a ‘‘can do’’ atti- case, needs to have the flexibility to better. I am looking at the test score tude in education. We need to encour- move that money into teaching. It may trend, not recently but over several age the fact that we can do better than be that they have plenty of teachers decades, as to how we compare with what we have been doing. We need to and the school building is not in good other countries in math scores, how we look at ways in which we can give local shape. So they need to have the flexi- have been doing over time in math and school districts the flexibility they bility to take those dollars and put it English scores, and I am disturbed by need to do a better job in educating in a building program so they can have the trend. students and allowing parents to have a better environment for learning. We need to do things that will im- a greater role in educating students. It That is just one example. There are a prove the math skills of our students. is going to require a team effort with number of other examples that most of We need to do things that will improve parents working within the school sys- us could point to as to what could be the English-proficiency skills of our tem to make sure that things get bet- done in the way of adding more flexi- students. Not only am I responding to ter. bility to the school districts so they what I am observing as to the scores, I admit that in some cases we need to can meet their various needs. but when I go out and visit the employ- look at the disciplinary situation in I travel throughout the State of Col- ers of the State of Colorado, I hear the classes. When I talked about education orado, and I don’t think we are any dif- same message that I have observed as and improving education, I mentioned ferent than any other State. But there far as test scores; that is, students are the fact that we needed to do some- are a lot of differences in Colorado be- not as well prepared for math or not as thing to improve discipline in the tween the various school districts de- well prepared to deal with the English classroom. One of the problems I see pending on where you are in the State. language in the workplace. I think that with discipline in the classroom is the We have a lot of different problems goes right down to the Senator’s bot- type of liability the school district and throughout the country because there tom line, that education is to prepare the teacher may incur trying to impose are different types of school districts. I people to carry on with their daily ac- discipline on the classroom. I think think to try to put forth a solution in tivities in a democracy such as we have that is a Federal problem as well as a Washington where you have a one-size- in the United States. I do think edu- State problem, and it is certainly fits-all program is a mistake. cation is key to that. When the President says he wants to something that perhaps as a Congress I am here to praise President Bush have more flexibility, I believe this is we ought to investigate at a later date. for his commitment to education, mak- what he is talking about. That is why ing it his top legislative priority. I like I think the State legislators them- I think it is important that we give his commitment to making sure that selves ought to look at the liability of school districts the flexibility they no child is left behind. the teacher and school districts in try- need. Over the last 35 years, the Federal ing to apply discipline in the school A teacher in Weld County recently Government has spent $120 billion on districts or within the classrooms. told me that his school is using a jani- poor kids. They have shown no im- This is a good first step that the tor’s closet as a classroom because of provement in basic math and reading President is suggesting. I think what is the lack of space available. If we can skills. The President’s education blue- coming to the floor of the Senate and give him more dollars for flexibility, print demands accountability. He is that was reported out of the education then that would give him an oppor- asking the States to set higher stand- committee is a good first step. It is tunity to change that classroom situa- ards. I think that is great. Then he moving us in the right direction. tion. If we pass amendments that say holds the States and school districts I hope we can quickly get this piece our extra dollars will go to hiring more and individual schools to those stand- of legislation moved out of the Senate teachers, it is not going to do that ards and allows some flexibility be- without any further delay. It disturbs school any service in trying to create a cause not all States are the same, not me when I see the delay in one piece of good education for its students. all school districts’ problems are the legislation after another. And the edu- I am here to support the bill that we same, certainly not all community cation bill we now have before the Sen- have on the floor. I think it is moving problems are the same. School districts ate went through some of that delay us in the right direction. I am here to and local agencies should have more process. Then when we vote to move it support President Bush because I think flexibility to spend the Federal money. on, we get a very substantial margin in he is moving in the right direction. I In addition to that, he has suggested moving forward with a particular piece like his theme that we don’t leave any we need to come close to tripling the of legislation. child behind because it provides flexi- amount of money we provide for edu- It is important to the history of this bility to States and school districts. It cation, an increase as compared to the country that we do something about promotes accountability and it in- rest of the budget. In other words, the education. It is important to the em- creases parental involvement. rest of the budget he proposed had a 4- ployer. It is important to the future of My hope is that as we move forward percent increase. Education was some- the child. We want to make sure that with this debate, we don’t linger, and where around an 11-percent or 12-per- no child gets left behind. that we get the bill passed quickly and cent increase. With added flexibility The solution in the past was that we be supportive of what the President is must come more accountability. So he would have more money for education trying to do. He is bringing some new is saying to the States: OK, States, go from Washington but with more man- ideas to education. ahead and design a test so you can dates. We are seeing some of those I know there are individuals in this measure performance, which is very issues that will probably come up as body that get real apprehensive when important, grades 3–8. amendments on the floor as we debate you start talking about new ideas for Then you measure the progress with- the education bill. Some of these education. But we need to take some of in the State. That allows the students amendments are going to say we will those inherent risks. I think that the as well as the parents to measure what take the flexibility from the school dis- risk is minimal when you put the con- is happening as far as their educational tricts and put it in the buildings, or fidence in local school districts and effort in the various school districts. It they will say we will have to put it in you measure results. We do that with a allows the parents to take a greater teachers. I think the proper and sen- flexible testing program that is estab- role in the progress of the child’s edu- sible approach is to give maximum lished with the States. cation. I think that is entirely appro- flexibility for those dollars to the I am one who is saying we ought to priate. school district to decide where their change education, and we need to move

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4165 forward. We need to take a positive at- So money is a problem. We will de- Senator from California, Mrs. BOXER, titude in education. We can do better bate during the consideration of this as well as our minority leader, that with math and we can do better with bill how to spend money, as we should. will say, No. 1, there ought to be a cer- English. We need to measure those re- I tend to be supportive of the Presi- tain amount of money there but, No. 2, sults. dent’s desire for accountability in test- the teeth of this amendment says that I yield the time. I suggest the ab- ing. Testing isn’t the only answer, but if we do not appropriate the amount of sence of a quorum. it is part of the answer. If you have too money that we authorize, then parts of The PRESIDING OFFICER (Mr. subjective a test, teachers, recognizing this legislation will not take effect. ALLARD). The clerk will call the roll. they will only be measured by how If we emerge with a paltry increase The bill clerk proceeded to call the they grade their own students, will in- in education funding, I believe that, roll. flate the values. So you need some kind first, the President will pay a price, Mr. SCHUMER. Mr. President, I ask of objective testing. I agree with the and those who are against increased unanimous consent that the order for President on that. funding will pay a price but, far more the quorum call be rescinded. I do not want to lower the bar. I do importantly than that, America will The PRESIDING OFFICER. Without not think a child should be promoted pay a severe price. objection, it is so ordered. from the second grade to the third We cannot continue to attract the The Senator from New York is recog- grade if they are reading at the first best people into teaching if the salaries nized. grade level. I do not think there should are going to be so low, particularly in Mr. SCHUMER. Mr. President, I am be teachers in our schools who do not areas such as math and science. We here also to add my voice to those who know much about math who are teach- cannot educate our children very well have already spoken on this bill. I ing math. But keep the bar high, my if they do not have up-to-date tech- would like to talk on two particular colleagues. You have to provide the nology in their classrooms. We cannot subjects. I am not going to elaborate wherewithal to get people over that educate children in schools where the plaster is falling from the ceiling. on how important education is to bar. The localities can no longer do it. When my daughter attended kinder- America. We all know that. Nor the So if you believe that education is a garten in PS 230, there were two kin- problems that our schools are having. national imperative—which I do—if dergarten classes in one classroom be- We know those, too. But I would like you believe in this country, and want cause they did not have enough class- to talk about two areas that I will be us to stay the leading economic power room space for the students. She does addressing as we move to debate this in the world, and you believe that edu- not get the extra curricular activity very important bill. cation, No. 1, will keep us there or sink going to a New York City public school The first area is funding. Frankly, I us, you have to then increase the Fed- have been—I couldn’t use a better that she should. It is a price we are eral role. willing to put up with because of the word—shocked at the low level of fund- The President campaigned on that. other advantages that she has going to ing proposed by the administration. Thank God he said the days when many a public school. But that is just the Initially, the administration proposed wanted to abolish the Department of frills. It is the sinew of education that a $700 million increase. And this from Education are over. He understood is suffering. As costs go up—the en- the President who says he is the edu- there was a Federal need and a Federal cation President I find—to be kind— ergy, the salaries, and everything role. In the way he campaigned, I was else—and education budgets fall flat, troubling. very enthusiastic about his role in edu- We all know that throwing money at we fall further and further behind. cation. If you had to sum it up, you So if I could make one point to my a problem does not always yield a solu- would say: Do not lower the bar but colleagues it is this: All the verbiage tion. We also know that the starting provide some of the wherewithal to and all the legislative language are not salary for teachers is very low. We help the localities, the students, the going to make much difference if we do know that class size has dramatically teachers to get over that bar. I think not fund them. I urge my colleagues on increased. We know that the property that is a great way to do it. the other side of the aisle just to look tax which has funded education I think there are many on our side at our priorities as a whole and ask, Is throughout America is such an unpopu- who will meet the President on stand- the tax cut more important than ade- lar tax that local school boards—any ards. But we wish he would be more quately funding education? Is an in- one of them you talk to—are totally forthcoming in meeting us on increas- crease in a new military program more strapped in terms of providing the new ing the dollars that education needs be- important than funding education? Ad- dollars that they need to lure teachers, cause no matter how you slice it, every mittedly, all three are important. But to keep teachers, to expand their school board is pressed and cannot do the priorities in terms of the amount of schools, to wire them. the things it wants to do. money the Republican majority and My children attend public schools in So when we propose that there be full the President have proposed in this bill New York City. I believe in the public funding of title I, when we propose, in are out of whack, not only out of school system. It was good to me; it is relation to IDEA, that the Federal whack with the priorities I might have being very good to them. But go to any Government finally live up to its prom- but out of whack with their own rhet- school and talk to the principal—it can ise and fund 40 percent of what we oric. It just does not add up. And that be in a large city; it can be in a small mandate on localities in terms of spe- is not right. rural town; it can be in a suburban cial education, we are supported by The second area I would like to talk area—and they will tell you that these just about every school board in the about is a related area, which is teach- days, with all the demands placed on country, just about every teacher, and er quality and attracting teachers. education, they do not have the dol- almost all who study education. Since I care a lot about education, I go lars, plain and simple. And their school We need to do this to keep our coun- around my State, as I mentioned ear- boards tell them that the property tax try great. When I see that the Presi- lier, and I talk to the superintendents taxpayers, justifiably and understand- dent proposed $700 million, and then of school districts, principals of ably, believe that the property taxes goes up to $1.7 billion, but proposes 5 schools, teachers, and parents. are so high they cannot raise them. times that increase in the military, When you ask them what their larg- That may not be true in every school and proposes 50 times that increase in est problem is, it is very rarely things district that I visit, but it is true in the tax cuts, I say, this is not the edu- we talk about. It is recruiting and re- overwhelming majority throughout my cation President because, my col- taining good teachers. I will talk more State, and my State is so large it has leagues, you cannot just talk the talk. about this later because I have some school districts that mirror those in You have to walk the walk. Part of the amendments that I have been working just about every other State. There are walk is standards and part of the walk on with some of my colleagues—many even many that resemble those in rural is upgrading our schools, but part of of them are bipartisan—to try to im- Colorado, such as in the Adirondack the walk is more dollars. prove the quality of teachers. Mountains, I say to the Presiding Offi- So I will be offering an amendment, In almost every corner of America, cer. on which I will be working with the you cannot get new, good teachers in

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4166 CONGRESSIONAL RECORD — SENATE May 2, 2001 math and science because the starting don’t think it is as important as im- Unless we give teachers some support salary for a teacher in those two areas proving the quality of the teacher. I in the classroom, we won’t solve the is so outweighed by the amount that would rather have a good teacher for 21 problem. It takes money, and it takes the private sector will pay you just kids than a mediocre teacher for 18. If standards, both. You can’t have one; cannot get good teachers. We had 40,000 we can’t replace all the good teachers you can’t have the other. You need new math and science teachers in for the 21 kids, we have real trouble. both. Just money, low standards, for- America last year, and 3,000 majored or We can’t even start talking about class get it. It is wasted. Just standards, low minored in math or science—3,000. The size. Yet that is what is happening. We money, you won’t get the people who other 37,000 did not have the back- have to change that. If we could do one can meet the standards. ground. Some of them might be good thing in the educational system, that The second area I will be focusing on teachers, but if this is such an impor- is what we have to do. as we debate this bill in the weeks tant subject, don’t we want someone Now, how do we do it? Well, certainly ahead is how to improve the quality of with an adequate background? we want teachers to have more pres- our teachers. It is key. I wouldn’t want In every corner of my State, people tige. I am totally befuddled by those this choice, but I would rather have a talk about this problem. In the past, who would try to improve the edu- school that is a little old and a little we were lucky in America. We had cap- cational system by bashing teachers. It grimy with a teacher who really cared tive cohorts of people who went into makes no sense to me. Most teachers I and did a great job than a brand spank- teaching. In the 1930s and 1940s, we had meet are pretty good and pretty dedi- ing new school and a mediocre teacher. Depression babies, people who knew cated. There are some bad apples, as I would rather have almost nothing in the pain of unemployment in their there are in every profession, but over- the education world except for parents homes. They went out and got a civil all they are pretty good. who watched their kids and taught service job. It might not have paid that I just flew home last night. My young them values and helped them with much, but they had job security. daughter, who is 12, was in her school their homework. That is probably first. Then in the 1950s and 1960s, we had concert. She plays the oboe. We have But second? Good teachers. fabulous women go into teaching. In been hearing the oboe play ‘‘Water- You get what you pay for, when the those days, so many other careers were melon Man’’ for the last 3 months in starting salary for a teacher now in not open and available to women, so the house. Why the oboe? Because she America is $26,000 in what should be they became teachers. Some became is a nice kid, and her music teacher the exalted profession of the 21st cen- nurses. I am talking about teachers said: Alison, if you don’t play the oboe, tury, particularly in math and science, today, but for both fields the cause was we will have no oboe in the Hudde Jun- but even some other areas, special ed, the same. Because of the lifting of the ior High School band. She said: OK. languages, computer skills. barriers, half the medical school en- Now she regrets it because she is I hope my colleagues will pay atten- rollees today are women and half the more a trumpet-type girl than an oboe- tion to this debate. It is crucial for law school enrollees are also women. type girl. But the music teacher was America. I hope it will be a long and That is great. That is America living fabulous, a dedicated man; you could full debate. I hope that I will get the up to its potential. We no longer have see him get up there. These kids who kind of bipartisan support that I think a captive audience of teachers. were in the sixth grade, who had only Then there was a third cohort. We the measures I am talking about de- been playing their instruments for 6 often forget, but large numbers of serve. months, were great. Last night, that young men in the late 1960s and early I thank the Chair and suggest the ab- person personified, to me, the dedica- 1970s went into teaching because you sence of a quorum. tion of so many teachers, to take these would get draft deferment. And par- The PRESIDING OFFICER. The kids, sixth graders, 12-year-olds—they ticularly during the Vietnam war, clerk will call the roll. would rather be doing a lot of other when millions of young men did not The bill clerk proceeded to call the things—and get them to play so well want to go fight that war for whatever roll. together. reason, they became teachers. Many Mr. NICKLES. Mr. President, I ask We have to make teaching more pres- stayed. unanimous consent that the order for At open school night for my daugh- tigious, and we should praise our the quorum call be rescinded. ter, who is in the 11th grade, I asked teachers when they do good. We have The PRESIDING OFFICER (Mr. SES- her six teachers in her six subjects how to give teachers more authority in the SIONS). Without objection, it is so or- they became teachers. There were classroom. The rules and regulations dered. three women. They fit the category I that prevent a teacher from dealing f mentioned. And there were three men, with an unruly student go overboard. I would rather see those changed and UNANIMOUS CONSENT all three of whom started teaching in AGREEMENT—S. 1 the late 1960s. give the teacher more authority and Those captive audiences of teachers not see teachers worried that they will Mr. NICKLES. Mr. President, I ask are gone. In fact, the average age of a be sued for this or that if they try to unanimous consent that all time under teacher in America is around 50. Half exercise some authority. All those rule XXII be yielded back and the mo- our teachers will retire in the next dec- things are necessary. Most of them are tion to proceed to S. 1 be agreed to. I ade. If we don’t do anything, the people up to the locals. further ask consent that immediately we replace them with will not be close But we will not improve teachers un- following the reporting of the bill, the to as good or as dedicated, and our edu- less we raise the salaries. The reality Senate then proceed to a period of cational system, which has trouble is, right now we ask people to make morning business, with Senators to now, will get worse. sacrifices. In New York City, we can’t speak up to 10 minutes each. Finally, I Studies show that the most impor- get certified teachers for all the rea- ask consent that the Senate resume tant things in how well a student does sons I mentioned. How about in our consideration of S. 1 at 9:30 a.m. on in school are the values and input from wealthy suburbs where a starting sal- Thursday morning and Senator JEF- that student’s family. We are not here ary for a teacher is pretty good, $35,000, FORDS be recognized at that time to changing that right now. We need pray- which in New York, Long Island, for in- offer an amendment to the so-called bi- er and internal workings and spiritu- stance, is not a lot. You can do a lot partisan amendment. ality and a lot of other things to bring more with $35,000 in Mississippi than The PRESIDING OFFICER. Without the family back up. I believe strongly you can in Long Island, but it is still objection, it is so ordered. in that, although I don’t think it is a not bad. When do they all quit? Three f governmental matter. But the second years later when they have to buy a BETTER EDUCATION FOR largest thing that influences how well home. a student does is the quality of the Unless we do more for teachers’ sala- STUDENTS AND TEACHERS ACT teacher. ries, we won’t solve the problem. Un- The PRESIDING OFFICER. Under I have always supported reducing the less we do more to help give prestige to the previous order, the clerk will re- number of kids in the classroom, but I teachers, we won’t solve the problem. port the bill.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4167 The assistant legislative clerk read or out of a cowboy camp. I knew this For over three decades, Chief Robert as follows: man’s father. We go way back in Mon- Langston has been an active and inte- A bill (S. 1) to extend programs and activi- tana and the ranching history. gral part of this esteemed and proud ties under the Elementary and Secondary It says: organization. Indeed, it is from a long Education Act of 1965. Friend CONRAD: Well, looks like you’re tradition of police personnel who are of done for. So I guess we might as well divide f his high caliber that the Park Police up your stuff. I’ll take your saddle. Ray. have drawn their source of pride in MORNING BUSINESS There is a kindness in that letter their competence and their quality. The PRESIDING OFFICER. Under that probably only can be appreciated Chief Langston began his career with the previous order, the Senate is now by those of us who have been in those a bachelor of science degree in crimi- in a period of morning business. cow camps and sat at these folks’ fire. nology from Florida State University. I thought I would share that with some He started work as a Park Police pa- f folks. There is still some humility trolman covering foot, cruiser and mo- OLDER AMERICANS MONTH around and great comradery that torcycle assignments. Even with the comes from that. Mr. CRAIG. Mr. President, because of challenge of full-time police duty and a the traffic and the business in the f young family, he continued his edu- Chamber yesterday, I was not able to A TRIBUTE TO CHIEF ROBERT cation at the University of Virginia speak on May as Older Americans LANGSTON with master level courses in police ad- Month, but I did submit a resolution as ministration, and at the FBI Academy Mr. LOTT. Mr. President, today I rise in Quantico, VA. He was promoted to chairman of the Senate Aging Com- before you to honor the service of re- mittee to recognize May as Older sergeant in 1971 with service in the cently retired Chief Robert E. training branch and later in the oper- Americans Month, as we have for 38 Langston of the U.S. Park Police. Chief ations division as a patrol sergeant. In years, saying that this is the official Langston has honorably served the De- 1973, he was promoted to lieutenant month during which we pay tribute to partment of the Interior, the National and served as shift commander before the contributions of 44 million older Park Service, and U.S. Park Police for accepting command of the communica- Americans. over 30 years. It is during this month that we as a Chief Langston has led America’s tions section. He was promoted again, nation recognize older Americans for oldest Federal uniformed law enforce- in 1975, to the rank of captain, and as- their service, hard work, and sacrifice ment agency, formed by President signed as watch commander in the Na- that helped assure us the freedom and George Washington to serve the public tional Park Service’s Southeast Re- security we now enjoy. squares of the District of Columbia. gion. Upon returning to Washington, There is a great deal more I could Congress later gave the Park Police he served as commander of the oper- say, and through the month of May the same powers and duties as the D.C. ations division’s central district, and there will be a great deal said about Metropolitan Police, and the Park Po- was promoted to major. His upward the contribution that older Americans lice have become a primary partner in progress only continued, and he was se- make to this great society of ours. keeping the peace. lected as deputy chief in charge of the Of course, for those of us who still Countless numbers of the visiting field offices division. In 1988, he became have parents or grandparents who are public tour Washington’s monuments the assistant chief of police, and was active and contributing to their com- at all hours of the day and night with named Chief of Police in 1991. After nearly a decade of service as munities, we know how valuable this a confidence that they can visit these chief, Bob Langston still is the same group of citizens is in our culture. national treasures safely. What a testa- gentleman of great enthusiasm and The program we will be looking at ment that is to the Park Police, and to commitment that shows through in ev- when we reauthorize, as we did the the Park Police leadership. How many erything he does. His selfless dedica- Older Americans Act, is going to ad- other places, in a major urban area, tion to duty has been thoroughly time- vance once again the surety of a good can so many have so much confidence tested and consistently proven many of the programs that are avail- on such a regular basis, at all hours of throughout each stage of his career. able to them. We reauthorized it last the night? In fact, the Park Police are Even when resources were stretched year finally after 5 years. It is impor- so good at what they do, that it is and duty was intense, he calmly pro- tant we did that because so many of sometimes all too easy to take their vided direction and oversight for the those programs drive results at the valiant services for granted. department. Through some of the most local community level that are ex- So in honoring Chief Langston, trying times literally in our Nation’s tremely valuable to all of us. today, we also honor the entire Park Police, a full service department with history, Chief Langston always did With this authorization, Congress over 800 officers and investigators and much more than his duty. was able to add an important compo- over 100 civilian employees. Among its Through it all, he stayed active in nent to the act, and that was the pro- jurisdiction, the Park Police are as- professional and civic organizations, gram to authorize $125 million to es- signed to National Park Service lands, such as the International Association tablish a new National Family Care- parkways, monuments, and memorials of Chiefs of Police, the D.C. and Mary- givers Support Program to provide in Washington, DC, New York City, and land Chiefs of Police Association, and grants to States to provide information San Francisco, CA. the Federal Law Enforcement Training and services to family caregivers, an- Members of the force are trained at Commission, to name only a few. Here, other one of those broadening concepts the Federal Law Enforcement Training too, he willingly accepted the call to on which we work with the senior com- Center in Georgia, and provide a com- leadership, and served as president of munity of our Nation. plete range of police services from foot the FBI National Academy Associates, I wanted to take time briefly this and cruiser patrols to highly complex and a member of the Bethesda-Chevy morning to recognize May as Older missions such as search and rescue, Chase Rescue Squad for over 40 years, Americans Month and the resolution antinarcotics operations, and dignitary with 15 years as rescue squad president. that was submitted yesterday by my- protection that includes protecting the Chief Langston has gained much rec- self and others. President of the United States. ognition for his service and exceptional f To support its operations, the force efforts as part of the U.S. Park Police. draws on resources that include award- He has been awarded the regional di- GET-WELL CARD winning air, water, and horseback rector’s award for excellence as well as Mr. BURNS. Mr. President, as you units. The Park Police are so renowned the Marshals Service award for out- know, I had a little round with the sur- for their attention to detail that they standing service and the State Depart- geon during our Easter break. I got a often are called upon by other law en- ment’s diplomatic service award for get-well card from a good friend who forcement agencies to sites often far outstanding service. lives in Montana, something that away from their permanent head- For all his professional achieve- would come out of sort of cowboy lore quarters. ments, Chief Robert Langston is most

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4168 CONGRESSIONAL RECORD — SENATE May 2, 2001 admired and respected for simply being improve our over burdened transpor- THE VERY BAD DEBT BOXSCORE a kind, decent human being who never tation system. Passage of the High Mr. HELMS. Mr. President, at the let rising through the ranks cloud his Speed Rail Act of 2001 isn’t just in Am- close of business yesterday, Tuesday, eyes from seeing things from the grass- trak’s interest; it is in America’s inter- May 1, 2001, the Federal debt stood at roots perspective as well as from the est. $5,651,070,445,048.89, Five trillion, six bird’s eye view. His associates know f hundred fifty-one billion, seventy mil- him as a seasoned professional and his lion, four hundred forty-five thousand, subordinates know him as a mentor; THE MUSCULAR DYSTROPHY CARE ACT forty-eight dollars and eighty-nine but, his neighbors know him simply as cents. a trusted friend, and his wife Beverly, Mr. COCHRAN. Mr. President, I am One year ago, May 1, 2000, the Fed- son Robert and daughter Kellie know pleased to join the distinguished Sen- eral debt stood at $5,660,726,000,000, Five him as a caring husband and faithful ators from Minnesota and Maine, Mr. trillion, six hundred sixty billion, father. All who know Bob Langston WELLSTONE and Ms. COLLINS, in the in- seven hundred twenty-six million. know him as an upstanding Christian troduction of the Muscular Dystrophy Five years ago, May 1, 1996, the Fed- man of sterling integrity who is a role Community Assistance, Research, and eral debt stood at $5,096,321,000,000, Five model in all that he does. Education Act. trillion, ninety-six billion, three hun- I know his colleagues, friends and I have worked with them over the dred twenty-one million. family join me today when we say to past several months to develop this Ten years ago, May 1, 1991, the Fed- Chief Robert Langston, thank you for legislation. eral debt stood at $3,438,851,000,000, staying the course and thank you for The Muscular Dystrophy CARE Act Three trillion, four hundred thirty- helping mold and maintain the Park will help ensure that federal agencies eight billion, eight hundred fifty-one Police into one of the truly great po- are coordinating muscular dystrophy million. lice forces of our Nation. In an unpre- initiatives. The bill will create three Fifteen years ago, May 1, 1986, the dictable world, Chief Langston and the Centers of Excellence under the Na- Federal debt stood at $2,020,548,000,000, men and women of the Park Police do tional Institutes of Health. These cen- Two trillion, twenty billion, five hun- their duty with a diligence that is de- ters will conduct basic and clinical re- dred forty-eight million, which reflects pendable, supporting us and keeping us search that will help move scientific a debt increase of more than $3.5 tril- safe to enjoy sacred symbols of free- discoveries from the laboratory to the lion, $3,630,522,445,048.89, Three trillion, dom that the Department of the Inte- bedside. The act also ensures that the six hundred thirty billion, five hundred rior, the National Park Service, and Centers of Disease Control and Preven- twenty-two million, four hundred the U.S. Park Police both protect and tion will conduct basic epidemiological forty-five thousand, forty-eight dollars in fact embody for the people of Amer- research and data analysis of the im- and eighty-nine cents during the past ica and for the future of our Nation. pact this disease has on our country. 15 years. f The passage of this legislation will f THE THIRTIETH ANNIVERSARY OF help improve the quality and length of ADDITIONAL STATEMENTS CONGRESS’S CREATION OF AM- life for tens of thousands who suffer TRAK from muscular dystrophy. I encourage all Senators to support this effort. A PASSOVER MESSAGE FROM Mr. CLELAND. Mr. President, Yes- RABBI ISRAEL ZOBERMAN terday marked the thirtieth anniver- f sary of Congress’s creation of Amtrak. LOCAL LAW ENFORCEMENT ACT ∑ Mr. ALLEN. Mr. President, I ask Congress acted then because we real- OF 2001 that a ‘‘Passover Message from Rabbi Israel Zoberman’’ be printed in the ized that along with cars and planes, Mr. SMITH of Oregon. Mr. President, RECORD. passenger rail was a vital part of Amer- I rise today to speak about hate crimes ica’s transportation future. Today the The message is as follows: legislation I introduced with Senator The Biblical account of the Exodus from need for passenger rail is greater than KENNEDY last month. The Local Law ever. All across this great land, trav- Egypt became the Leitmotif of Rabbinic the- Enforcement Act of 2001 would add new ology, perceiving in the Israelites’ redemp- elers are facing gridlock not only on categories to current hate crimes legis- tion from a House of Bondage God’s guidance our highways but we are quickly ap- lation sending a signal that violence of and goodness. Thus the three Pilgrim Fes- proaching it in our skies too. any kind is unacceptable in our soci- tivals of Pesach, Shavuot and Sukkot, re- I believe many Americans are grow- ety. volving around the common theme of the Ex- ing tired of spending so many hours odus, point at the divine gifts of both free- Today I would like to detail a hei- stuck in traffic, or hanging around air- dom and responsibility as essential require- nous crime that occurred June 1, 2000, port terminals. They want an alter- ments for fulfilling the human potential. in Baltimore, MD. Gary William Mick, native, now. The awesome and complex journey-phys- Fortunately, there is an alternative 25, pleaded guilty to first-degree mur- ically, spiritually and psychologically—from der, attempted murder, and armed rob- servitude to liberation of the people of Israel to growing gridlock and ‘‘winglock.’’ It was to be a model for the entire human fam- is called high-speed passenger rail, and bery after admitting that he murdered a gay man and tried to kill another be- ily, culminating the Messianic vision of a it is a way of traveling that is pleasant world redeemed in the prophetic promise. We and easy, and allows travelers to make cause, he told police, he thought gay have chosen to transform the bitter herbs of the most of their valuable time. men were ‘‘evil.’’ In the first attack, a our exile into the sweet charoset of home- So far, high-speed rail exists only in New Jersey man was bludgeoned to coming in all. It is the symbolic hovering the Northeast. But Amtrak’s vision is death with a claw hammer at the Ad- presence at the Seder table of the prophet to build a national passenger railroad miral Fell Inn in Fells Point. Mick met Elijah for whom we open the door and set system consisting of many regional his second victim, a dentist, at a bar, aside a special cup of wine, which provides the eternal hope for universal shalom. It is high-speed corridors linked by long-dis- had dinner with him and went home with him. He later attacked him with a the peace we have kept alive as a flickering tance service. This plan will bring an- light in the darkness of a trying and chal- other option to the American business knife. The men struggled and the vic- lenging history. traveler, commuter and tourist no tim escaped. The perpetrator told po- Our Passover joy is diminished through by matter where they live. lice that a childhood incident caused the continued detention in China of the That is why I strongly support the him to hate homosexuals. twenty-four-member crew of the U.S. Navy High Speed Rail Investment Act of I believe that government’s first duty plane as we pray and call for their release, as 2001. It will provide Amtrak with what is to defend its citizens, to defend them well as the release of Dr. Gao Zhan, who has our highways and airports already against the harms that come out of been separated for too long from her husband hate. The Local Law Enforcement En- and child in Virginia. The festival’s promise have: a source of long-term capital by a compassionately passionate heritage is with which to build the high-speed rail hancement Act of 2001 is now a symbol ultimately rooted in its revolutionary view corridors of the future. that can become substance. I believe by of the infinite worth of each of the Creator’s With high-speed rail, we can give passing this legislation, we can change children, recalling that God silenced the an- travelers the choices they deserve, and hearts and minds as well. gels on high when jubilant at the drowning

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4169 of the Pharaoh’s troops. When we particu- nant. I can remember not knowing lack insurance mainly because they can’t af- larly preserve our adversary’s humanity, dif- what I was going to do. I guess in a lot ford it. The administration has proposed a ficult as it is, we maintain our own essential of ways I just acted as if there was tax credit to help those whose employers human stature. nothing wrong. For about three months don’t offer insurance. But the credit would We rejoice in the presence of our special cover only part of the cost of an average pol- guest, Adam Nguyen, who escaped from Viet- no one knew of my pregnancy but me icy, and most uninsured families still would nam in 1971 and is president of the Zen Bud- and a friend. Then we just really start- find such a policy beyond their means. Some dhism Association of Hampton Roads and ed talking about what to do one day people think the industry might respond by whose first Seder it is. As we share our cele- and that’s when it happened, just like offering only partial policies, but it’s not bration with him, we protest the destruction a sign from God, a billboard sign say- clear that would be a good result, either. and desecration of the irreplaceable, pre- ing: ‘‘Pregnant and alone call . . .’’ so The administration proposal has some in- cious and priceless two giant Buddha statues we rode back to her house and called. A teresting features and would do limited good, from the third and fifth centuries respec- soft sweet voice answered the phone, but limited is the operative word. The spend- tively, by the oppressive and repressive ing programs for the lower-income uninsured Taliban regime in Afghanistan. Pleas from ‘‘St. Elizabeth Foundation.’’ That is have shown themselves to be efficient ways the world at large, including Muslim coun- how I started my friendship and love of increasing coverage. Whatever the fate of tries along with its ally Pakistan, to desist for the people at St. Elizabeth’s.’’ This the tax credit, they should be expanded. from such an unwarranted act fell on deaf is just one of many examples of the Much attention has lately been paid to the ears. An assault on one religion is an assault special interventions that bring health care problems of the already insured. on all religions and on civilization itself. We strength, hope and comfort to hundreds The elderly lack a drug benefit; people en- congratulate neighboring Tajikistan for re- of families. rolled in managed care complain that care is storing another historic Buddha relic. A native of Cut Off, LA, Lillie’s work sometimes sacrificed to cost. But at least We suffer the ongoing lethal violence sub- these people have insurance. More than 40 stituting for life-enhancing vision in our on behalf of the children of Louisiana million don’t. The budget argument this American society sacrificing its precious is not limited to her outstanding work year has been mainly about how large a tax youth, tomorrow’s promise, on the alien al- at St. Elizabeth’s. After graduating cut to give the better-off. What about a tars of the false gods of wanton conduct and from St. Mary’s Dominican College in timeout to pay a little heed to those who perverted values. The plight of the three kid- New Orleans, she returned to LSU to can’t afford to get sick?∑ napped Israeli soldiers and their agonizing obtain a graduate degree in child devel- f families, including Benny Avraham from our opment and social services. She used sister city of Pardes Katz, remains of grave DR. NAN S. HUTCHISON BROWARD those skills to teach early childhood at concern to us. We are in pain given the dead- SENIOR HALL OF FAME the college level, found a Montessori ly deadlocked scenario in our beloved Land ∑ Mr. GRAHAM. Mr. President, today I of Israel, ancient source of shalom’s holy pre-school and served as the founding wellspring of blessings, still so tragically director of the statewide Gifted/Tal- am delighted to recognize an out- eluding it and the vastness of a wondrous ented Program in the Louisiana State standing group of men and women from universe designed to reflect the Divine’s lov- Department of Education. As if that is Broward County. The dedication and ing embrace. not enough, she also spent several compassion demonstrated by these 10 Rabbi Israel Zoberman, spiritual leader of years as host of a popular TV edu- inspiring senior citizens who have been Congregation Beth Chaverim in Virginia cation program. nominated to the Dr. Nan S. Hutchison Beach, is President of the Hampton Roads Broward Senior Hall of Fame is truly Board of Rabbis and Chairman of the Com- Anyone who meets Lillie knows they munity Relations Council of the United Jew- have met someone very special. Her exceptional. The selfless efforts of ish Federation of Tidewater. He was born in loving heart and determined spirit these nominees to address the needs of Kazakhstan in 1945 to Polish Holocaust Sur- make her a tenacious advocate for chil- individuals in all walks of life serve as vivors.∑ dren and their families and Louisiana an example for others throughout our f and the Nation have been the great Nation to emulate. beneficiary. Her 36 year marriage to This year’s honorees are Ilo Cox, RETIREMENT OF LILLIE PETIT Sydney Dworkin, Flora Fasciani, Ena GALLAGHER her husband, George, serves as a loving example, not only to her four beautiful Henry, Edward Levy, Johnnie McCray, ∑ Ms. LANDRIEU. Mr. President, I children and precious grandchild, but Elizabeth Phillips Scheuerman, Bert would like to take a moment out of to the young people she serves. My best Soft, Lotte Stein, and Ralph Weinstein. this morning’s business to commemo- wishes to you, Lillie, your husband, Ilo Cox has endeavored to improve rate a very special occasion in the life George, and your beautiful family.∑ the quality of life for Floridians by of a dear friend and a valued advisor, promoting such diverse initiatives as f Lillie Petit Gallagher. This Friday, crime prevention, community develop- May 4, 2001, marks the last day of a TIMEOUT FOR THE UNINSURED ment, advancement of the arts and long and distinguished career in public ∑ Mr. SANTORUM. Mr. President, I funding research to find a cure for cys- service for Lillie. As the Executive Di- ask consent that the following article tic fibrosis. In addition, she has held rector of St. Elizabeth Foundation in be printed in the RECORD. positions of leadership with the Fort Baton Rouge, she has not only coun- The article follows: Lauderdale Woman’s Club. seled hundreds of birth mothers but [From the Washington Post, May 2, 2001] Sydney Dworkin has given gener- also helped in placing their children TIMEOUT FOR THE UNINSURED ously of his time to the Florida Lakes with loving families. In the thirteen House Conferees have been fighting with Alzheimer Care Center since its incep- years she has served as executive direc- their Senate counterparts to reduce the tion in 1993. At the center he brings tor of this fine organization, she has spending levels in the congressional budget warmth and light into the lives of all been a trusted friend, a surrogate resolution. No doubt some cuts can be made those whom he assists. He has recog- mother, a guardian angel and a wise in the Senate totals without the country’s nized the importance of a friendship in counsel to hundreds of parents and suffering harm. But at least one relatively the life of someone afflicted by a men- families. minor Senate proposal deserves to remain. tally debilitating disease. The US Census Bureau estimates Oregon Sens. Gordon Smith and Ron Flora Fasciani has been a steadfast Wyden won inclusion in the budget of an ad- that in one year 500,000 teenagers will ditional $28 billion over three years to reduce supporter of children’s programs and choose to parent their babies; 450,000 the number of Americans without health in- charities, coordinating and supervising will have abortions. Because of people surance. The money would mainly be spent several fundraising Salvation Army like Lillie, these young adults have the on lower-income people. Exactly how would balls in Broward. She also acts as a confidence and support they need to be up to the authorizing committees, but an spokesperson for the University of choose adoption for their child. To add-on of some kind to Medicaid and/or the Miami Organ Donor Program and orga- demonstrate for you the kind of impact children’s health insurance program that nizes the biannual Red Cross blood Lillie has had in shaping St. Eliza- Congress enacted several years ago seems drive. most likely. The modest expansion would beth’s, let me read an excerpt from a hardly solve the un-insurance problem, but Ena Henry has been an active mem- letter from one of her birth mothers, ‘‘I it would push in the right direction. ber of her church community; volun- was eighteen and fresh out of a bad re- About a seventh of the population remains teering her time in programs aimed at lationship when I found out I was preg- uninsured. Most are poor or near poor. They educating the youth and fostering a

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4170 CONGRESSIONAL RECORD — SENATE May 2, 2001 bond between the younger and older School, in St. Louis, MO, after 34 years Grass Roots Leadership Network. She generations. In addition, she provides in education. During his long service to is also the recipient of the Martin Lu- relief to disaster victims and aids indi- education, he has been a leader and ther King Humanitarian Award from gent families of prisoners during the role model for thousands of children. the Marin County Human Rights Com- holiday season, supplying them with James started out teaching fourth, mission. food and gifts. fifth, and sixth grades before serving as I think Betty’s daughter, Ida, put it Edward Levy uses his own experience Assistant Principal at Bernard and best when she said: ‘‘My mother was as a wounded ex-soldier to aid fellow Trautwein Elementary. In 1986, he be- the strongest person I know. She in- ex-servicemen. For the last 25 years he came Principal of Beasley Elementary stilled very strong values in all of us, has generously volunteered countless School. even her grandchildren. She was my hours assisting veterans, widows, and James’ commitment to his work is best friend, and we were all incredibly dependents. He also participates in the overshadowed only by his dedication to proud of her. Her impact in this county Broward Meals on Wheels program, de- serving his community. Instead of call- rippled throughout the State.’’ livering meals to homebound seniors. ing it quits at five o’clock, James de- I am a better person for having Johnnie McCray is an invaluable votes his time and energy to helping known and worked wit Betty Times. I asset to her community. She has acted the community through his volunteer extend my sincere condolences to Bet- as a key fundraiser for the executive activities. He lends his skills to the ty’s husband John, her mother Alice board of the Sylvia Poitier T. Williams Parish Council at St. Margaret Mary Coleman, and to her large and loving Senior Center. Moreover, she has been School, advising them on various edu- family.∑ active in a multitude of area organiza- cation issues. He coaches baseball and f tions, including the Negro Chamber of soccer and serves as a Parent Teacher Commerce, the South Florida Associa- Organization officer. TRIBUTE TO STATE OF HAWAII tion of Woman’s Clubs and the Florida I know that the teachers, parents, REPRESENTATIVE HELENE HALE Association of Women’s and Girl’s and students at Beasley Elementary ∑ Mr. INOUYE. Mr. President, I wish to Clubs. will greatly miss James. I wish James honor Hawaii’s tireless public servant, Elizabeth Phillips Scheuerman has and his wife Jeanne all the best in re- Helene Hale, who recently celebrated been a champion of literacy in the tirement, and I urge my colleagues to her 83rd birthday and is the oldest per- Broward area. Through the efforts of join me in saluting James Schibig.∑ son ever elected to the State of Hawaii this former Florida State president of f House of Representatives. the American Association of Univer- I ask that the following proclama- IN MEMORY OF BETTY TIMES sity Women, the community was able tion, signed by the Honorable Harry to obtain its first bookmobile. In addi- ∑ Mrs. BOXER. Mr. President, it is Kim, mayor of the county of Hawaii, be tion, she has been active in the Sym- with both pride and sadness that I ask printed in the RECORD. phony Society, the Gold Circle of the Senate to pause briefly so that I The Resolution follows: NOVA University, and the American may share a little of the remarkable Whereas, Helene H. Hale has served the Cancer Society. life of Betty Times, a long-serving people of Hawaii in various elective capac- Bert Soft is a woman of valor. Over- Marin County civil servant, political ities for almost 50 years, and in at least one coming personal tragedy, she founded activist and human rights advocate, office in each of the past six decades: in the the Frank Soff Chapter of the Alz- who died last Thursday after an 8-year 50s and 60s as a County Supervisor, in the 60s heimer’s Family Center. Under her battle with cancer. as Chairman or Mayor of Hawaii County, in Betty Times was born 62 years ago in 1978 as a delegate to the State’s Third Con- leadership, the chapter’s membership stitutional Convention, and in the 80s and 90s has grown from 13 to 170 members. Her Louisiana, and moved at age 5 to Marin as the County Council; and initiative and persistence have earned City where her father worked at the Whereas, at the age of 92 years young, in her acknowledgment as the Deborah Marinship shipyard in Sausalito. Mrs. the year 2000, she was elected to the State ‘‘Woman of the Year’’ and the Florida Times lived in and enriched the com- House of Representatives on the slogan ‘‘Re- Association of Non-Profit Organiza- munity of Marin City and the County cycle Helene Hale,’’ becoming the oldest tions’ ‘‘Woman of Valor.’’ of Marin for 56 years. freshman ever elected to the State House, Lottie Stein has been instrumental She leaves a lasting legacy of com- and she has taken State government by munity service that includes 14 years storm; and in implementing community improve- Whereas, far from being a career politi- ment and awareness programs. She is as head of Marin County’s Citizens cian, she has combined government service actively involved with citizen crime- Service Office, 18 years on the with other vocations, including wife, mother, watch organizations and has been com- Sausalito School Board, one term on college lecturer, bookstore manager, coffee mended for her efforts in launching the the Marin General Hospital district grower, realtor, U.N. supporter, and founder GIVE program, which attempts to at- board, and countless years of leader- of the Merrie Monarch Festival, and she has tract people to the volunteer experi- ship in Marin City, as a mother of five, brought to each of these the same intel- ence. a mentor, chairman of the board of the ligence, wit, energy and dedication which Community Development Corporation have marked her service in governments; and Ralph Weinstein was a key actor in Whereas, Helene Hale has claimed many the foundation and incorporation of and as executive director of the Marin ‘‘Firsts,’’ including first female government the first Alzheimer’s Day Care Center City Project. official in Hawaii since Queen Liliuokalani, in Broward County at the Northeast I first got to know Betty more than first African ‘‘American elected official in Focal Point Center. Through this orga- 20 years ago when I served as a Marin Hawaii, first resident of Hawaii on the cover nization he addresses the physical and County supervisor, and we were both of Ebony, first female chief executive of a emotional needs of children, adults, founding members of the local chapter county in Hawaii, and the first octogenarian seniors, and Alzheimer’s patients. of the National Women’s Political Cau- in Hawaii to campaign for public office in a cus. She also served as vice president of bathing suit; and Florida and Broward County are for- Whereas, Jeremy Harris, Mayor of the City tunate to have these exceptional men the national NWPC. and County of Honolulu, proclaimed March and women who have given so much of Betty somehow also found the time 23, 2001, as ‘Helene H. Hale Day’ in the City themselves to the community. I con- to serve as an active member of the and County of Honolulu; and gratulate them today and wish for Democratic Party, and was a longtime Whereas, Helene Hale is a resident of the them many more productive and member of the State and local Demo- County of Hawaii, and her political career healthy years.∑ cratic Central Committees as well as a has been here, not in Honolulu, and we can- not allow Honolulu to steal credit for our f 1976 delegate to the Democratic Na- tional Convention. In 1991, she was Helene; TRIBUTE TO JAMES SCHIBIG elected to the Marin Women’s Hall of ‘‘Now, therefore, I, Harry Kim, Mayor of ∑ the County of Hawaii, do hereby proclaim Mrs. CARNAHAN. Mr. President, I Fame. (belatedly) March 23–29, 2001, as Helene H. am delighted today to pay tribute to Just this February and as her health Hale Week in the County of Hawaii, and ex- Mr. James Schibig, who is retiring as was failing, Betty was honored for her tend belated best wishes for a Happy Birth- principal of Beasley Elementary years of service by the Marin County day and many more in the future.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4171 ‘‘In witness whereof, I have hereunto set EXECUTIVE MESSAGES REFERRED MESSAGE FROM THE HOUSE my hand and caused The Seal of the County of Hawaii to be affixed. Done this 10th day of As in executive session the Presiding At 3:07 p.m., a message from the April, 2001, in Hilo, Hawaii.’’∑ Officer laid before the Senate messages House of Representatives, delivered by from the President of the United Mr. Hayes, one of its reading clerks, f States submitting sundry nominations announced that the House has passed NATIONAL CHILD CARE WORTHY which were referred to the appropriate the following bills, in which it requests WAGE DAY committees. the concurrence of the Senate: ∑ Mrs. CARNAHAN. Mr. President, I (The nominations received today are H.R. 182. An act to amend the Wild and want to tell you about one of my con- printed at the end of the Senate pro- Scenic Rivers Act to designate a segment of stituents, Julianne Woodle. Julianne ceedings.) the Eight Mile River in the State of Con- necticut for study for potential addition to was raised in St. Louis and went to the f the National Wild and Scenic Rivers System, University of Missouri-Columbia after REPORT ON THE DISTRICT OF CO- and for other purposes. high school. As she worked toward a H.R. 309. An act to provide for the deter- bachelor’s degree in children and group LUMBIA COURTS FISCAL YEAR mination of withholding tax rates under the settings, she planned to take her de- 2002 BUDGET SUBMISSION—MES- Guam incomes tax. gree and find a job in the classroom. SAGE FROM THE PRESIDENT— H.R. 601. An act to redesignate certain She dreamed of working with pre- PM 16 lands within the Craters of the Moon Na- schoolers in a childcare center, helping The PRESIDING OFFICER laid be- tional Monument, and for other purposes. them develop the social and mental fore the Senate the following message The message also announced that the skills necessary to start school. from the President of the United House has agreed to the following con- When she graduated in 1998, she States, together with an accompanying current resolutions, in which it re- started looking for a job. There were report; which was referred to the Com- quests the concurrence of the Senate: many available, but none of them paid mittee on Governmental Affairs. H. Con. Res. 91. Concurrent resolution rec- enough for her to live on. She looked ognizing the importance of increasing aware- To the Congress of the United States: for more than a month, but seven or ness of the autism spectrum disorder, and In accordance with the District of eight dollars an hour was the most supporting programs for greater research Columbia Code, as amended, I am and improved treatment of autism and im- anyone could pay her. Julianne still transmitting the District of Columbia proved training and support for individuals dreamed of working with young chil- Courts FY 2002 Budget Submission. with autism and those who care for them. dren in a classroom setting, but she The District of Columbia Courts have H. Con. Res. 95. Concurrent resolution sup- had to make a living. It was a hard porting a National Charter Schools Week. submitted a FY 2002 budget request for choice, but Julianne decided to go back H. Con. Res. 117. Concurrent resolution ex- $111.7 million for operating expenses, to school. She hopes that a master’s pressing sympathy to the family, friends, $41.4 million for capital improvements degree will allow her to find a job and co-workers of Veronica ‘‘Roni’’ Bowers to courthouse facilities, and $39.7 mil- where she can work with children and and Charity Bowers. lion for Defender Services in the Dis- still earn a decent salary. The message further announced that trict of Columbia Courts. My FY 2002 It is because of people like Julianne pursuant to 15 U.S.C. 1024(a), the budget includes recommended funding that I cosponsored S.R. 79, calling for Speaker appoints the following Mem- levels of $105.2 million for operations, the designation of May 1, 2001 as ‘‘Na- bers of the House of Representatives to $6.0 million for capital improvements, tional Child Care Worthy Wage Day.’’ the Joint Economic Committee: Mr. and $34.3 million for Defender Services. This resolution calls on the President RYAN of Wisconsin, Mr. SMITH of Texas, My transmittal of the District of Co- to set aside the first day in May as Ms. DUNN of Washington, Mr. ENGLISH lumbia Courts’ budget request does not ‘‘National Child Care Worthy Wage of Pennsylvania, Mr. PUTNAM of Flor- represent an endorsement of its con- Day.’’ ida, Mr. STARK of California, Mrs. tents. Study after study has shown that MALONEY of New York, and Mr. WATT I look forward to working with the good quality infant and toddler care of North Carolina. Congress throughout the FY 2002 ap- has positive long term effects on chil- The message also announced that propriations process. dren, and that poor quality care can pursuant to 44 U.S.C. 2702, the minority GEORGE W. BUSH. have devastating effects. Despite the leader reappoints the following indi- THE WHITE HOUSE, May 2, 2001. extreme importance of their work, vidual to the Advisory Committee on child care providers earn an average of f the Records of Congress: Dr. Joseph Cooper of Baltimore, Maryland. only $7.42 an hour nationally. In Mis- REPORT ON THE NATIONAL EMER- souri the average is even lower, just GENCY WITH RESPECT TO f $7.02 an hour. The average housekeeper SUDAN—MESSAGE FROM THE MEASURES REFERRED and restaurant worker make more. PRESIDENT—PM 17 Child care providers are largely re- The following bills were read the first sponsible for the social, emotional, and The PRESIDING OFFICER laid be- and the second times by unanimous mental development of the children in fore the Senate the following message consent, and referred as indicated: their care, yet we do not pay enough to from the President of the United H.R. 182. An act to amend the Wild and attract qualified individuals to the States, together with an accompanying Scenic Rivers Act to designate a segment of report; which was referred jointly, pur- the Eight Mile River in the State of Con- field. Instead young graduates like necticut for study for potential addition to Julianne, who really want to nurture suant to the order of January 30, 1975 as modified by the order of April 11, the National Wild and Scenic Rivers System, and teach young children, are forced to and for other purposes; to the Committee on look elsewhere for jobs. It is a pressing 1986 to the Committees on Appropria- Energy and Natural Resources. national problem, and it deserves rec- tions; Banking, Housing, and Urban Af- H.R. 309. An act to provide for the deter- ognition and attention from our na- fairs. mination of withholding tax rates under the tional leaders. The resolution is a sym- To the Congress of the United States: Guam income tax; to the Committee on En- bolic action, but it is an important ergy and Natural Resources. As required by section 401(c) of the H.R. 601. An act to redesignate certain one. We must bring this issue to the National Emergencies Act, 50 U.S.C. lands within the Craters of the Moon Na- forefront of public discussion. 1641(c), and section 204(c) of the Inter- tional Monument, and for other purposes. We owe it to our children.∑ national Emergency Economic Powers The following concurrent resolutions f Act (IEEPA), 50 U.S.C. 1703(c), I trans- were read, and referred as indicated: mit herewith a 6-month periodic report MESSAGES FROM THE PRESIDENT H. Con. Res. 91. Concurrent resolution rec- on the national emergency with re- ognizing the importance of increasing aware- Messages from the President of the spect to Sudan that was declared in Ex- ness of the autism spectrum disorder, and United States were communicated to ecutive Order 13067 of November 3, 1997. supporting programs for greater research the Senate by Ms. Evans, one of his GEORGE W. BUSH. and improved treatment of autism and im- secretaries. THE WHITE HOUSE, May 2, 2001. proved training and support for individuals

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4172 CONGRESSIONAL RECORD — SENATE May 2, 2001 with autism and those who care for them; to mental Protection Agency, transmitting, of Arkansas relative to the availability of the Committee on Health, Education, Labor, pursuant to law, the report of a rule entitled funds to prevent catastrophic damage from and Pensions. ‘‘Approval and Promulgation of Air Quality wildfires; to the Committee on Appropria- H. Con. Res. 95. Concurrent resolution sup- Implementation Plans; State of Maryland; tions. porting a National Charter Schools Week; to Approval of Revisions to Volatile Organic HOUSE CONCURRENT RESOLUTION NO. 1035 Compounds Regulations and Miscellaneous the Committee on the Judiciary. Whereas, the ice storms of December 13 Revisions’’ (FRL6973–3) received on May 1, H. Con. Res. 117. Concurrent resolution ex- and 25, 2000, ravaged thousands of acres of 2001; to the Committee on Environment and pressing sympathy to the family, friends, private and public forests in Arkansas, Okla- and co-workers of Veronica ‘‘Roni’’ Bowers Public Works. EC–1709. A communication from the Dep- homa, and Texas; and and Charity Bowers; to the Committee on Whereas, President Clinton declared sixty- Foreign Relations. uty Associate Administrator of the Environ- mental Protection Agency, transmitting, a seven (67) Arkansas counties as federal dis- f report entitled ‘‘Eligibility of Indoor Plumb- aster areas for the purposes of providing EXECUTIVE AND OTHER ing Under Alaska Sanitation Infrastructure early financial assistance to cities and coun- ties to help with their most urgent ice COMMUNICATIONS Grant Program’’; to the Committee on Envi- ronment and Public Works. storm-caused health and safety problems; The following communications were EC–1710. A communication from the Dep- and laid before the Senate, together with uty Associate Administrator of the Environ- Whereas, these early funds do not provide accompanying papers, reports, and doc- mental Protection Agency, transmitting, a for the critical treatment and restoration report entitled ‘‘EPA Review of 2000 Section work needed to prevent catastrophic uments, which were referred as indi- wildfires on the private and public cated: 303(d) Lists’’; to the Committee on Environ- ment and Public Works. forestlands of Arkansas; and EC–1701. A communication from the Acting EC–1711. A communication from the Dep- Whereas, if these lands go untreated, the Deputy Administrator for Defense Programs, uty Associate Administrator of the Environ- ten-fold increase in fuel loadings may result National Nuclear Security Administration, mental Protection Agency, transmitting, a in major conflagrations that destroy private Department of Energy, transmitting, a re- report entitled ‘‘Interim Data Quality and public property and threaten the health port relative to updating the President’s Amendment to the EPCRA Section 313 En- and safety of countless Arkansans; and Budget Request; to the Committee on Armed forcement Response Policy (ERP)’’; to the Whereas, supplemental appropriation re- Services. Committee on Environment and Public quests detailing the need by program area EC–1702. A communication from the Dep- Works. and the work that would be accomplished uty Associate Administrator of the Environ- were sent by agency field officers to their f mental Protection Agency, transmitting, agency headquarters in Washington, D.C.: pursuant to law, the report of a rule entitled PETITIONS AND MEMORIALS Now, therefore, be it ‘‘Approval and Promulgation of Air Quality The following petitions and memo- Resolved by the House of Representatives of the eighty-third General Assembly of the State Implementation Plans; District of Columbia; rials were laid before the Senate and Oxygenated Gasoline Program’’ (FRL6973–7) of Arkansas, the Senate concurring therein, received on April 27, 2001; to the Committee were referred or ordered to lie on the That the Arkansas General Assembly urges on Environment and Public Works. table as indicated: the President of the United States and the EC–1703. A communication from the Dep- POM–34. A concurrent resolution adopted United States Congress to take all reason- uty Associate Administrator of the Environ- by the House of the Legislature of the State able action necessary to provide adequate mental Protection Agency, transmitting, of Arkansas relative to the Railroad Retire- and timely funding to the federal agencies pursuant to law, the report of a rule entitled ment and Survivors Improvement Act; to the responsible for the treatment and restora- ‘‘Hazardous Waste Management System; Committee on Finance. tion work on these lands. Be it further Identification and Listing of Hazardous HOUSE CONCURRENT RESOLUTION NO. 1008 Resolved, That upon adoption of this reso- Waste; Final Exclusion’’ (FRL6968–6) re- Whereas, the Railroad Retirement and Sur- lution, the Chief Clerk of the House of Rep- ceived on April 27, 2001; to the Committee on vivors Improvement Act of 2000 was approved resentatives shall transmit a copy of this Environment and Public Works. in a bipartisan effort by 391 members of the resolution to the President of the United EC–1704. A communication from the Dep- United States House of Representatives in States, to the presiding officers of the United uty Associate Administrator of the Environ- the 106th Congress, including the entire Ar- States Senate and the United States House mental Protection Agency, transmitting, kansas delegation to Congress; and of Representatives, and to each member of pursuant to law, the report of a rule entitled Whereas, more than eighty United States the Arkansas congressional delegation. ‘‘Approval and Promulgation of State Plans Senators, including both Arkansas’ Senator for Designated Facilities and Pollutants: Tim Hutchinson and Senator Blanche Lin- POM–36. A concurrent resolution adopted South Carolina’’ (FRL6973–9) received on coln, signed letters of support for this legis- by the House of the Legislature of the State April 27, 2001; to the Committee on Environ- lation in 2000; and of Arkansas relative to prescription drugs; to ment and Public Works. Whereas, the bill now before the 107th Con- the Committee on Health, Education, Labor, EC–1705. A communication from the Dep- gress modernizes the railroad retirement and Pensions. uty Associate Administrator of the Environ- system for its 748,000 beneficiaries nation- HOUSE CONCURRENT RESOLUTION NO. 1027 wide, including over 10,000 in Arkansas; and mental Protection Agency, transmitting, Whereas, the price of prescription drugs in pursuant to law, the report of a rule entitled Whereas, railroad management, labor and retiree organizations have agreed to support the United States has increased significantly ‘‘Approval and Promulgation of Air Quality in each of the past several years; and Implementation Plan; Commonwealth of this legislation; and Whereas, this legislation provides tax re- Whereas, a large percentage of the people Pennsylvania; Reasonably Available Control lief to freight railroads, Amtrak and com- who cannot afford to buy drugs needed to Technology Requirement for Volatile Or- muter lines; and maintain a reasonable quality of life are ganic Compounds and Nitrogen Oxides’’ Whereas, no outside contributions from children and the elderly who have no means (FRL6973–4) received on April 27, 2001; to the taxpayers are needed to implement the to improve their financial situation; and Committee on Environment and Public changes called for in this legislation; and Whereas, many people in this country Works. Whereas, all changes will be paid for from must make a choice of buying food or buying EC–1706. A communication from the Dep- within the railroad industry, including a full the drugs they need; and uty Associate Administrator of the Environ- share by active employees: Now therefore, be Whereas, the states have very limited abil- mental Protection Agency, transmitting, it ity to take the necessary action to assure pursuant to law, the report of a rule entitled Resolved by the House of Representatives of that prescription drugs are available and af- ‘‘Allocation of Fiscal Year 2001 Youth and the eighty-third General Assembly of the State fordable to those who need them and only the Environment Training and Employment of Arkansas, the Senate concurring therein, the U.S. Congress has the authority to ac- Program Funds’’ received on May 1, 2001; to That the General Assembly urges the United complish this goal, now, therefore, be it the Committee on Environment and Public States Congress to support and enact the Resolved by the House of Representatives of Works. Railroad Retirement and Survivors Improve- the eighty-third General Assembly of the State EC–1707. A communication from the Dep- ment Act in the 107th Congress. Be it further of Arkansas, the Senate concurring therein: uty Associate Administrator of the Environ- Resolved, That copies of this Resolution be That the Arkansas General Assembly here- mental Protection Agency, transmitting, sent by the Chief Clerk of the House of Rep- by urges the United States Congress to take pursuant to law, the report of a rule entitled resentatives to the President of the United all reasonable action to assure that prescrip- ‘‘Clean Air Act Approval and Promulgation States, the President of the United States tion drugs are available and affordable to all of the Redesignation of Shelby County; Ten- Senate, the Speaker of the United States citizens. Be it further nessee, to Attainment’’ (FRL6947–6) received House of Representatives, and all members Revolved, That upon adoption of this reso- on May 1, 2001; to the Committee on Envi- of the Arkansas Congressional Delegation. lution, the Chief Clerk of the House of Rep- ronment and Public Works. resentatives shall transmit a copy hereof to EC–1708. A communication from the Dep- POM–35. A concurrent resolution adopted the President of the United States, to the uty Associate Administrator of the Environ- by the House of the Legislature of the State presiding officers of the U.S. Senate and the

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4173 U.S. House of Representatives, and to each disability or more an allowance for each de- Whereas, the United States economy has member of the Arkansas Congressional Dele- pendent and the allowance is increased with seen a tremendous boom in the last decade, gation. the amount of disability; and whilst the Federal Government has seen Whereas, the Department of Defense de- budget surpluses unprecedented in recent POM–37.A concurrent resolution adopted ducts the entire amount of a dependent’s al- times, with the budget surplus for Fiscal by the House of the State of Arkansas rel- lowance, essentially leaving a disabled mili- Year 2000 expected to be One Hundred Sev- ative to Special Education; to the Com- tary retiree without a dependent’s allow- enty Billion Dollars ($170,000,000,000) and the mittee on Health, Education, Labor, and ance, thereby extending the discrimination surplus through 2010 predicted by President Pensions. to families of military longevity retirees; Clinton to be Seven Hundred Forty-six Bil- HOUSE CONCURRENT RESOLUTION NO. 1044 and lion Dollars ($746,000,000,000); and Be it resolved by the House of Representatives Whereas, it is unfair to require disabled Whereas, Guam has made its contribution of the eighty-third General Assemble of the military retirees to fund their own Veterans to the political security and stability of the State of Arkansas, the Senate concurring there- Administration compensation by deductions United States that has helped to nurture this in: on a dollar-for-dollar basis to the Depart- vibrant economic growth by giving up a That the United States Congress is urged ment of Defense; and large portion of its small land mass to the to review, with the goal of reducing, the pa- Whereas, no such deduction applies to U.S. Department of Defense for military in- perwork created by federal laws and regula- similarly situated federal civil service or stallations, which were critical to American tions related to special education. congressional retirement benefits to receive security for decades, now therefore, be it Be it further Resolved, That upon adoption Veterans Administration compensation; and Resolved, That I Mina’Bente Sais Na Whereas, a statutory change is necessary of this resolution, with the Senate concur- Liheslaturan Gua˚ han does hereby, on behalf to correct this injustice and discrimination ring therein, the Chief Clerk of the Arkansas of the people of Guam, respectfully request in order to insure that America’s commit- House of Representatives shall transmit cop- that the United States Congress appropriate ment to national and international goals ies to the presiding officer of the United One Hundred Ninety-three Million Dollars will be matched by the same allegiance to States Senate and the United States House ($193,000,000) to the government of Guam for those who sacrificed on behalf of those goals; of Representatives, and to each member of the following purposes: now therefore be it the Arkansas congressional delegation. (1) Forty-eight Million Dollars ($48,000,000) Resolved, That the Massachusetts Senate to build eight (8) new elementary schools in POM–38. A resolution adopted by the Sen- respectfully urges the Congress of the United the Villages of Dededo, Yigo, Tamuning, ate of the Legislature of the State of Massa- States to enact legislation to provide parity Mangilao, Barrigada, Yona, Sinajana, Agat chusetts relative to benefits for all retired of benefits to all retired career military per- and Mongmong-Toto-Maite; career military personnel; to the Committee sonnel; and be it further (2) Twenty Million Dollars ($20,000,000) to Resolved, That a copy of these resolutions on Veterans’ Affairs. build one (1) new middle school in Dededo, be transmitted forthwith by the Clerk of the Whereas, American servicemen and women which is by far the most populated village on Senate to the President of the United States, have dedicated their lives and careers to pro- Guam; the Secretary of Defense, the Chairmen of tect the rights we all enjoy; and (3) Thirty Million Dollars ($30,000,000) to Whereas, in serving our country, career the Armed Forces Committee and the Vet- build one (1) new high school in Northern military personnel endured hardships, depri- erans Affairs Committee, the House and Sen- Guam, which has deteriorating and dan- vation and threats of death, disability and ate Majority and Minority Leaders, the pre- gerously crowded schools in Tamuning and long separations from their families; and siding officer of each branch of Congress and Yigo that suffer from teen violence and other Whereas, integral to the success of our to the members thereof from the common- problems as a result of the lack of attention military forces are those military personnel wealth. that comes from overcrowded schools; who have made careers of defending our (4) Seventy-five Million Dollars ($75,000,000) great Nation during times of both war and POM–39. A resolution adopted by the Leg- for the Guam Waterworks Authority to im- peace from the revolutionary war to present islature of Guam relative to Federal funds prove a badly corroded and leaking sewer day; and for upgrades in education, water, and hos- and water infrastructure that results in low Whereas, there exists a gross inequity in pital; to the Committee on Appropriations. water pressure in many areas, wasting water the Federal Statutes that denies equal rights RESOLUTION NO. 27 resources daily and incurring large numbers to disabled career military who seek to re- Whereas, Guam’s tourism-based economy of manpower hours fixing spot leaks that ceive Veterans Administration disability has been suffering over the last few years surface; compensation concurrent with the receipt of due to the Asian economic crisis, resulting (5) Twenty Million Dollars ($20,000,000) for earned military pay; and in government budget shortfalls, an in- upgrading and expanding facilities at the Whereas, legislation has been introduced in creased government deficit, layoffs of many Guam Memorial Hospital, which is insuffi- the United States Congress to remedy this private and public sector employees, and an cient, as Guam’s only hospital and emer- inequity applicable to career military per- unemployment rate that may be as high as gency care facility, to provide for vital sonnel dating back to the nineteenth cen- twenty percent (20%); and health care services to people on Guam, who tury; and Whereas, such economic reversal and a must seek prohibitively expensive care off- Whereas, the injustice concerns those who high unemployment rate would be considered Guam, as well as providing health care to are retired, are denied concurrent receipt of an economic disaster in most parts of the the people of Micronesia who have been hard earned military retirement pay and United States; and granted access to Guam’s medical infrastruc- Veterans Administration awards for service- Whereas, Guam’s water and sewer infra- ture due to the compacts of free association connected disabilities; and structure has deteriorated over the years to entered into by the United States of America Whereas, career military earn retirement the point where it is no longer sufficient to and these Pacific Nations; and be it further benefits based on longevity for honorable support the Island’s growing population; and Resolved, That the United States Congress and faithful service and rank at the time of where it is badly corroded and in disrepair in and the President of the United States dele- retirement; and some areas, resulting in a costly waste of gate the Officer In Charge of Construction Whereas, Veterans Administration com- water, costly spot repairs, and low or no (‘‘OICC’’) of the U.S. Naval command on pensations serve a different purpose from water pressure in some areas of the Island; Guam, otherwise known as Commander longevity retired pay and are intended to and Naval Forces Marianas, to oversee all as- compensate for pain, suffering, disfigure- Whereas, Guam’s population has grown be- pects of infrastructure construction detailed ment, chemicals, wound injuries and loss of yond the capacity of its school facilities, re- herein, inclusive of contract management, earning ability, with a minimum require- sulting in the overcrowding and deteriora- procurement, etc.; and be it further ment of 90 days active duty; and tion of existing school facilities, a condition Resolved, That the United States Congress Whereas, the prevailing idea that military that is a detriment to the education of the is requested to stipulate as a condition of retirement pay is free is false as there is a Island’s youth, and ultimately is detrimental this funding, in legislation, a detailed deficit contribution to retirement pay which is cal- to all aspects of the local community; and reduction plan for Guam which the govern- culated to reduce military base pay and re- Whereas, the Guam Memorial hospital, ment of Guam shall adhere to for the pur- tirement pay by 7 per cent when pay and al- Guam’s only hospital and emergency care fa- pose of eliminating the deficit in the General lowances are computed and approved by Con- cility, is also badly in need of upgrade and Fund of the government of Guam within gress; and expansion, to the point where many patients seven (7) years; and be it further. Whereas, traditionally, a career military must be sent to off-Guam facilities for emer- Resolved, That the Speaker certify, and the person receives a lower pay and retirement gency or specialized care at great expense to Legislative Secretary attests to, the adop- than his or her civilian counterpart and has the government and local families, an ex- tion hereof and that copies of the same be invested a life of hardships and long hours pense that many families cannot afford; and thereafter transmitted to the Honorable without the benefit of overtime pay and with Whereas, Guam’s tourism industry, which George W. Bush, President of the United a lack of freedom of expression through the faces an uphill struggle to recovery after a States; to the Honorable Richard B. Cheney, unions; and prolonged slump, is in need of an economic President of the United States Senate; to the Whereas, the Veterans Administration boost and an upgrade in infrastructure and Honorable J. Dennis Hastert, Speaker of the awards to disabled veterans with a 30 percent facilities; and United States House of Representatives; to

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4174 CONGRESSIONAL RECORD — SENATE May 2, 2001 the Honorable Robert A. Underwood, Mem- Whereas, the cost of travel to facilities lution to Guam’s perennial financial prob- ber of the U.S. House of Representatives; and that provide such life-saving treatment can lems is to exercise restraint in spending; and to the Honorable Carl T.C. Gutierrex, I be prohibitive, especially for many of our Whereas, although a requirement for a bal- Magalahen Gua˚ han. people without the means; and in addition, anced budget exists in local legislation, no the health of people in severe cases may not such requirement exists in the 1950 Organic POM–40. A resolution adopted by the Leg- withstand the travel; and Act of Guam; and islative of Guam relative to reparations for Whereas, the current language of the Or- Whereas, until such time as the people of Guam victims of World War II; to the Com- ganic Act of Guam in regards to the adminis- Guam adopt their own constitution, the 1950 mittee on Energy and Natural Resources. tration of the public health services is re- Organic Act of Guam serves in its stead; and RESOLUTION NO. 26 (LS) strictive, preventing creative and sensible Whereas, an amendment to the 1950 Or- Whereas, the people of Guam who endured solutions to the management problems of ganic Act of Guam requiring a balanced World War II, and their families, attempted the Guam Memorial Hospital and other pub- budget for the government of Guam will as- in vain for years to obtain just war repara- lic health services; and sist Guam in making changes essential to tions for the wartime grievances suffered by Whereas, amending the Organic Act of the long term financial health of our govern- the Chamorros, who are the native inhab- Guam to allow the laws of Guam to govern ment, now therefore, be it itants of Guam; and the public health and hospital services, as Resolved, That I Mina’Bente Sais Na Whereas, while many other peoples re- the United States Congress did with the pub- Liheslaturan Gua˚ han does hereby, on behalf ceived war reparations from Japan, such as lic education system on Guam, would be a of the people of Guam, respectfully request the people of the Commonwealth of the more accountable and less restrictive solu- that the United States Congress amend the Northern Marianas and the Republic of the tion; and 1950 Organic Act of Guam to require a bal- Philippines, the people of Guam have yet to Whereas, such a solution has the potential anced budget for the government of Guam in receive proper atonement and justice for the to revitalize and streamline Guam’s public each fiscal year; and be it further personal suffering, the widespread destruc- health and hospital, and therefore has the Resolved, That exception to this require- tion of personal property, the obliteration of potential to improve public health on Guam ment should be permissible only in the event homes, businesses and farms, the loss of fam- and save the lives of people who depend on of an official declaration by the President of ily members and loved ones, and the humil- such vital services; and the United States of Guam as a disaster iation of occupation by an enemy military Whereas, the importance of such a life-sav- area; and be it further power; and ing and health-improving solution cannot be Resolved, That the Speaker certify, and the Whereas, the government of the United overstated, and action should not be delayed Legislative Secretary attests to, the adop- States of America has totally exonerated the any further; now therefore, be it tion hereof and that copies of the same be government of Japan from making any war Resolved, That I Mina´ Bente Sais Na thereafter transmitted to the Honorable reparations to the people of Guam through a Liheslaturan Gua˚ han does hereby, on behalf George W. Bush, President of the United post-war agreement with Japan; and of the people of Guam, respectfully request States; to the Honorable Richard B. Cheney, Whereas, after years of suffering followed the Congress of the United States of America President of the United States Senate; to the by years of waiting for just atonement, war amend Paragraph (a) of § 1421g of Title 48 of Honorable J. Dennis Hastert, Speaker of the reparations to the people of Guam are long the United States Code (1950 Organic Act of United States House of Representatives; to overdue; now therefore, be it Guam) to read as follows: the Chairman of the House Committee on ´ Resolved, That I MinaBente Sais Na ‘‘(a) Public Health Services. Subject to the Natural Resources; to the Chairman of the ˚ Liheslaturan Guahan does hereby, on behalf laws of Guam, the Government of Guam Senate Committee on Energy and Natural of the people of Guam, respectfully request shall establish, maintain, operate or con- Resources; to the Honorable Robert A. that Guam’s Delegate to the U.S. Congress tract public health services on Guam, includ- Underwood, Member of the U.S. House of reintroduce previous legislation to obtain ing hospitals, dispensaries and quarantine Representatives; and to the Honorable Carl proper war reparations for Guam victims of stations, at such places on Guam as may be T.C. Gutierrez, I Maga’lahen Gua˚ han. World War II; and be it further necessary, and shall promulgate quarantine Resolved, That I Mina´ Bente Sais Na and sanitary regulations for the protection POM–43. A resolution adopted by the Leg- Liheslaturan Gua˚ han does hereby, on behalf of Guam against the importation and spread islature of Guam relative to a human rights of the people of Guam, respectfully request of disease.’’; and be it further issue; to the Committee on Foreign Rela- that the Chairman of the United States Resolved, That the Speaker certify, and the tions. House of Representatives Committee on Ju- Legislative Secretary attests to, the adop- RESOLUTION NO. 58 (LS) diciary hold a hearing on the aforementioned tion hereof and that copies of the same be Whereas, the most important principles war reparations legislation at the earliest thereafter transmitted to the Honorable and precepts in the founding and formation possible date; and be it further George W. Bush, President of the United Resolved, That the Speaker certify, and the of our great American Nation and democracy States; to the Honorable Richard B. Cheney, Legislative Secretary attests to, the adop- are guarantees of protection of life, liberty President of the United States Senate; to the tion hereof and that copies of the same by and the pursuit of happiness for every man, Honorable J. Dennis Hastert, Speaker of the thereafter transmitted to the Honorable woman and child, regardless of race, color, United States House of Representatives; to Richard B. Cheney, President of the United national origin or religious preference; and the Honorable Robert A. Underwood, Mem- States Senate; to the Honorable J. Dennis Whereas, the fundamental right to freedom ber of the U.S. House of Representative; and Hastert, Speaker of the United States House of religious belief and worship is severely re- to the Honorable Carl T.C. Gutierrez, I of Representatives; and to the Chairman of stricted in the People’s Republic of China; Maga´ lahen Gua˚ han. the United States House of Representatives and Committee on Judiciary; to the Chairman of Whereas, Mr. Zhang Hongbao, fearful for POM–42. A resolution adopted by the Leg- the Senate Energy and Natural Resources his personal well-being because of his spir- islature of Guam relative to the change of Committee; to the Honorable Robert A. itual beliefs, fled China, seeking personal the 1950 Organic Act of Guam to require a Underwood, Member of the U.S. House of safety and asylum on Guam; and balanced budget; to the Committee on En- Representatives; to the Honorable Carl T.C. Whereas, because Mr. Zhang Hongbao’s ar- ergy and Natural Resources. Gutierrez, I Maga´ lahen Gua˚ han. rival on Guam is classified as an ‘‘unauthor- RESOLUTION NO. 24 (LS) ized entry,’’ requiring the intervention of the POM–41. A resolution adopted by the Leg- Whereas, the government of Guam is in U.S. Immigration and Naturalization Service islature of Guam relative to amending the dire financial straits, due in part, to an econ- (‘‘INS’’), he has been detained for over one (1) 1950 Organic Act of Guam; to the Committee omy which has suffered tremendously as a year; and on Energy and Natural Resources. result of the Asian economic slump and the Whereas, Mr. Zhang Hongbao’s confine- RESOLUTION NO. 22 (LS) reduction of the U.S. military presence on ment on Guam is inconsistent with the tra- Whereas, some of the most vital services Guam; and ditional Chamorro belief that freedom is fun- provided by the government of Guam are the Whereas, Guam’s expenditures have, on damental to life itself, representing an em- public health services, including the services most occasions, exceeded the availability of barrassment to the People of Guam since the of Guam’s public hospital, the Guam Memo- revenues; and injustice continues on our Island, the west- rial Hospital; and Whereas, as result, the government of ernmost stanchion of American democracy Whereas, without an efficient and well-run Guam has built a large deficit in its General and religious tolerance, which serves as the hospital and public health service, the health Fund; and Pacific gateway for the great message of and well-being of the people of Guam are in Whereas, such deficit is detrimental to the Lady Liberty: ‘‘Give me your tired, your severe danger, and the lives of the people of ability of the government of Guam to pro- poor, Your huddled masses yearning to Guam are in jeopardy; and vide consistent and required service to the breathe free, . . . I hold my lamp beside the Whereas, without an efficient and well-run people of Guam, as well as make an adequate golden door’’; now therefore, be it hospital and public health service, many investment in developing infrastructure; and Resolved, That I Mina’Bente Sais Na people on Guam are faced with the grim Whereas, although we look forward to an Liheslaturan Guahan, in keeping with the prospect of looking to off-Guam health fa- increase in economic activity on Guam, re- precepts and principles which make Amer- cilities to provide life-saving treatment; and sulting in higher revenues, the only true so- ica’s belief in fundamental human rights,

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4175 calls for the immediate and unconditional Whereas, Congressman Hamilton was S. 814. A bill to establish the Child Care release of Mr. Zhang Hongbao from deten- raised in Evansville, Indiana, but considers Provider Retention and Development Grant tion; and be it further Nashville, Indiana, his hometown; Program and the Child Care Provider Schol- Resolved, That the Speaker certify, and the Whereas, Congressman Hamilton received arship Program; to the Committee on Legislative Secretary attests to, the adop- his bachelor’s degree from DePauw Univer- Health, Education, Labor, and Pensions. tion hereof and that copies of the same be sity in 1952 and his Doctor of Jurisprudence By Mr. MURKOWSKI: thereafter transmitted to the Honorable Degree from Indiana University in 1956; S. 815. A bill to make improvements to the George W. Bush, President of the United Whereas, While attending college, Con- Arctic Research and Policy Act of 1984: to States; to the Honorable Colin Powell, Sec- gressman Hamilton excelled not only in the the Committee on Governmental Affairs. retary of the U.S. Department of State; to classroom but also on the basketball court; By Mr. BREAUX: the Honorable John Ashcroft, U.S. Attorney Whereas, Congressman Hamilton was first S. 816. A bill to amend the Internal Rev- General; to the Honorable Richard Cheney, elected to Congress in 1964 from Indiana’s 9th enue Code of 1986 to allow certain coins to be President of the United States Senate; to the District; acquired by individual retirement accounts Honorable J. Dennis Hastert, Speaker of the Whereas, Congressman Hamilton served in and other individually directed pension plan U.S. House of Representatives; to the Honor- the House of Representatives from 1965 until accounts; to the Committee on Finance. able Robert A. Underwood, Guam’s Delegate 1999; By Mr. DOMENICI (for himself and Mr. to the U.S. House of Representatives; and to Whereas, Congressman Hamilton faithfully BINGAMAN): the Honorable Carl T.C. Gutierrez, I represented the citizens of Indiana’s 9th Dis- S. 817. A bill to amend the National Trails Maga’lahen Gua˚ han. trict for 34 years—17 Congressional terms; System Act to designate the Old Spanish Whereas, Once in office he walked a mod- Trail as a National Historic Trail; to the POM–44. A concurrent resolution adopted erate line on social and economic issues, but Committee on Energy and Natural Re- by the House of the Legislature of the State was a strong advocate of U.S. international sources. of Indiana relative to the Railroad Retire- involvement; By Mr. HATCH (for himself, Mr. ment and Survivors’ Improvement Act; to Whereas, Congressman Hamilton also TORRICELLI, Mr. KYL, and Mr. MUR- the Committee on Finance. earned a reputation as one of the Democratic KOWSKI): HOUSES CONCURRENT RESOLUTION NO. 17 Party’s most thoughtful leaders in the realm S. 818. A bill to amend the Internal Rev- Whereas, The Railroad Retirement and of foreign policy; enue Code of 1986 to provide a long-term cap- Survivors’ Improvement Act of 2000 is de- Whereas, Congressman Hamilton was ital gains exclusion for individuals, and to signed to improve significantly both the fi- chairman of the House Intelligence Com- reduce the holding period for long-term cap- nancing and benefits of railroad retirement mittee, the House chairman of the Iran- ital gain treatment to 6 months, and for and to increase industry responsibility for Contra Committee from 1987 to 1988, and other purposes; to the Committee on Fi- the part of the program that is similar to a chairman of the House Foreign Affairs Com- nance. private pension plan; mittee from 1993 to 1996; f Whereas, The Railroad Retirement and Whereas, When the Republicans became Survivors’ Improvement Act of 2000 was ap- the majority in the House, Hamilton became SUBMISSION OF CONCURRENT AND proved in a bipartisan effort by 391 members the ranking Democrat on the House Foreign SENATE RESOLUTIONS of the United States House of Representa- Affairs Committee; tives in the 106th Congress, including nine of The following concurrent resolutions Whereas, While serving in Congress, he re- the ten members of the Indian congressional and Senate resolutions were read, and ceived numerous public service awards, in- delegation; cluding the Paul H. Nitze Award for Distin- referred (or acted upon), as indicated. Whereas, More than 80 United States Sen- By Mrs. MURRAY (for herself, Mr. ators, including Indiana Senators Richard guished Authority on National Security Af- BOND, Mr. MCCAIN, Ms. CANTWELL, Lugar and Evan Bayh, signed letters of sup- fairs, the Philip C. Habib Award for Distin- Mr. WARNER, Mr. LEVIN, Mr. KEN- port for the legislation in 2000; guished Public Service, the Indiana Human- NEDY, Mrs. HUTCHISON, Mr. THUR- Whereas, The bill, now before the 107th ities Council Lifetime Achievement Award, MOND, Mr. AKAKA, Ms. COLLINS, Mr. Congress, modernizes the railroad retire- and the U.S. Association of Former Members ment system for 748,000 beneficiaries nation- of Congress Statesmanship Award; NELSON of Nebraska, Mr. DURBIN, and wide, including over 15,000 in Indiana; Whereas, Although Congressman Hamilton Mr. DAYTON): Whereas, Railroad management, labor, and has left Congress, he has not gone very far; S. Res. 80. A resolution honoring the retiree organizations have agreed to support Whereas, Congressman Hamilton was ‘‘Whidbey 24’’ for their professionalism, brav- this legislation; named the director of the Woodrow Wilson ery, and courage; to the Committee on Whereas, This legislation provides tax re- International Center for Scholars in Wash- Armed Services. lief to freight railroads, Amtrak, and com- ington, D.C., which is the federally supported By Mr. SCHUMER (for himself, Mr. muter lines; institution on international affairs that BROWNBACK, Mr. BAYH, Mr. LIEBER- Whereas, This legislation provides benefit ‘‘mixes the world of ideas with the world of MAN, Mr. SANTORUM, Mr. SMITH of improvements for suviving spouses of rail policy’’; New Hampshire, Mr. SMITH of Or- workers who under current law suffer deep Whereas, Congressman Hamilton will also egon, Mr. DURBIN, Mr. LEAHY, Mr. cuts in income when the rail retiree dies; serve as the director of the Center on Con- FITZGERALD, Mr. SPECTER, and Mrs. Whereas, No outside contributions from gress at Indiana University; and CLINTON): taxpayers are needed to implement the Whereas, Accomplishments such as Con- S. Con. Res. 35. A concurrent resolution ex- changes called for in this legislation; and gressman Hamilton’s deserve special rec- pressing the sense of Congress that Lebanon, Whereas, All changes will be from within ognition: Therefore, be it Syria, and Iran should allow representatives the railroad industry including a full share Resolved by the House of Representatives of of the International Committee of the Red by active employees; Therefore, be it the General Assembly of the State of Indi- Cross to visit the four Israelis, Adi Avitan, Resolved by the House of Representatives of ana, the Senate concurring: Binyamin Avraham, Omar Souad, and the General Assembly of the State of Indi- Section 1. That the Indiana General As- Elchanan Tannenbaum, presently held by ana, the Senate concuring; sembly urges Congress to rename the Fed- Hezbollah forces in Lebanon; to the Com- Section 1, That the Indiana General As- mittee on Foreign Relations. sembly urges the United States Congress to eral Building in New Albany, Indiana, in support the Railroad Retirement and Sur- honor of former Congressman Lee Hamilton. f Section 2. That the Principal Clerk of the vivors’ Improvement Act in the 107th Con- ADDITIONAL COSPONSORS gress. House of Representatives transmit a copy of Section 2, That the Principal Clerk of the this resolution to former Congressman Ham- S. 127 House of Representatives transmit copies of ilton, the President of the United States, the At the request of Mr. MCCAIN, the this resolution to the President of the President of the United States Senate, the names of the Senator from Montana United States, the President of the United Speaker of the United States House of Rep- (Mr. BURNS) and the Senator from Or- States Senate, the Speaker of the United resentatives, and members of the Indiana States House of Representatives, and all congressional delegation. egon (Mr. SMITH, of Oregon) were added as cosponsors of S. 127, a bill to give members of the Indiana congressional dele- f gation. American companies, American work- INTRODUCTION OF BILLS AND ers, and American ports the oppor- POM–45. A concurrent resolution adopted JOINT RESOLUTIONS tunity to compete in the United States by the House of the Legislature of the State cruise market. of Indiana relative to honoring former Con- The following bills and joint resolu- gressman Lee Hamilton; to the Committee tions were introduced, read the first S. 131 on Environment and Public Works. and second times by unanimous con- At the request of Mr. JOHNSON, the HOUSE CONCURRENT RESOLUTION 22 sent, and referred as indicated: name of the Senator from New Jersey Whereas, Lee H. Hamilton was born in By Mr. DODD (for himself and Mr. (Mr. CORZINE) was added as a cosponsor Daytona Beach, Florida, April 20, 1931; CORZINE): of S. 131, a bill to amend title 38,

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4176 CONGRESSIONAL RECORD — SENATE May 2, 2001 United States Code, to modify the an- 327, a bill to amend the Elementary of S. 540, a bill to amend the Internal nual determination of the rate of the and Secondary Education Act of 1965 to Revenue Code of 1986 to allow as a de- basic benefit of active duty educational provide up-to-date school library media duction in determining adjusted gross assistance under the Montgomery GI resources and well-trained, profes- income the deduction for expenses in Bill, and for other purposes. sionally certified school library media connection with services as a member S. 133 specialists for elementary schools and of a reserve component of the Armed At the request of Mr. BAUCUS, the secondary schools, and for other pur- Forces of the United States, to allow names of the Senator from Nevada (Mr. poses. employers a credit against income tax ENSIGN) and the Senator from Georgia S. 399 with respect to employees who partici- (Mr. MILLER) were added as cosponsors At the request of Mr. EDWARDS, the pate in the military reserve compo- of S. 133, a bill to amend the Internal name of the Senator from Illinois (Mr. nents, and to allow a comparable credit Revenue Code of 1986 to make perma- DURBIN) was added as a cosponsor of S. for participating reserve component nent the exclusion for employer-pro- 399, a bill to provide for fire sprinkler self-employed individuals, and for vided educational assistance programs, systems, or other fire suppression or other purposes. and for other purposes. prevention technologies, in public and S. 543 S. 152 private college and university housing At the request of Mr. DOMENICI, the At the request of Mr. GRASSLEY, the and dormitories, including fraternity name of the Senator from New Jersey name of the Senator from Massachu- and sorority housing and dormitories. (Mr. CORZINE) was added as a cosponsor setts (Mr. KERRY) was added as a co- S. 403 of S. 543, a bill to provide for equal cov- sponsor of S. 152, a bill to amend the At the request of Mr. COCHRAN, the erage of mental health benefits with Internal Revenue Code of 1986 to elimi- name of the Senator from Maine (Ms. respect to health insurance coverage nate the 60-month limit and increase SNOWE) was added as a cosponsor of S. unless comparable limitations are im- the income limitation on the student 403, a bill to improve the National posed on medical and surgical benefits. loan interest deduction. Writing Project. S. 633 S. 170 S. 409 At the request of Mrs. HUTCHISON, the At the request of Mr. REID, the name At the request of Mr. DURBIN, the name of the Senator from Arizona (Mr. of the Senator from Minnesota (Mr. name of the Senator from Georgia (Mr. MCCAIN) was added as a cosponsor of S. WELLSTONE) was added as a cosponsor CLELAND) was added as a cosponsor of 633, a bill to provide for the review and of S. 170, a bill to amend title 10, S. 409, a bill to amend title 38, United management of airport congestion, and United States Code, to permit retired States Code, to clarify the standards for other purposes. members of the Armed Forces who for compensation for Persian Gulf vet- S. 654 have a service-connected disability to erans suffering from certain At the request of Mr. TORRICELLI, the receive both military retired pay by undiagnosed illnesses, and for other name of the Senator from Michigan reason of their years of military serv- purposes. (Ms. STABENOW) was added as a cospon- ice and disability compensation from S. 449 sor of S. 654, a bill to amend the Inter- the Department of Veterans Affairs for At the request of Mr. DOMENICI, the nal Revenue Code of 1986 to restore, in- their disability. name of the Senator from Utah (Mr. crease, and make permanent the exclu- S. 174 BENNETT) was added as a cosponsor of sion from gross income for amounts re- At the request of Mr. KERRY, the S. 449, a bill to ensure the timely pay- ceived under qualified group legal serv- name of the Senator from Montana ment of benefits to eligible persons ices plans. (Mr. BAUCUS) was added as a cosponsor under the Radiation Exposure Com- S. 662 of S. 174, a bill to amend the Small pensation Act (42 U.S.C. 2210). At the request of Mr. DODD, the name Business Act with respect to the S. 500 of the Senator from Connecticut (Mr. microloan program, and for other pur- At the request of Mr. BURNS, the LIEBERMAN) was added as a cosponsor poses. name of the Senator from Wyoming of S. 662, a bill to amend title 38, S. 190 (Mr. ENZI) was added as a cosponsor of United States Code, to authorize the At the request of Mr. FRIST, the S. 500, a bill to amend the Communica- Secretary of Veterans Affairs to fur- name of the Senator from Georgia (Mr. tions Act of 1934 in order to require the nish headstones or markers for marked MILLER) was added as a cosponsor of S. Federal Communications Commission graves of, or to otherwise commemo- 190, a bill to amend the Federal Food, to fulfill the sufficient universal serv- rate, certain individuals. Drug, and Cosmetic Act to grant the ice support requirements for high cost S. 669 Secretary of Health and Human Serv- areas, and for other purposes. At the request of Mr. CARPER, the ices the authority to regulate tobacco S. 501 name of the Senator from Idaho (Mr. products, and for other purposes. At the request of Mr. LEAHY, his CRAPO) was added as a cosponsor of S. S. 252 name was added as a cosponsor of S. 669, a bill to amend the Elementary At the request of Mr. VOINOVICH, the 501, a bill to amend titles IV and XX of and Secondary Education Act of 1965 to name of the Senator from Ohio (Mr. the Social Security Act to restore promote parental involvement and pa- DEWINE) was added as a cosponsor of S. funding for the Social Services Block rental empowerment in public edu- 252, a bill to amend the Federal Water Grant, to restore the ability of States cation through greater competition Pollution Control Act to authorize ap- to transfer up to 10 percent of TANF and choice, and for other purposes. propriations for State water pollution funds to carry out activities under S. 697 control revolving funds, and for other such block grant, and to require an an- At the request of Mr. BAUCUS, the purposes. nual report on such activities by the names of the Senator from Vermont Secretary of Health and Human Serv- S. 321 (Mr. LEAHY), the Senator from New ices. At the request of Mr. COCHRAN, his Jersey (Mr. CORZINE), the Senator from name was added as a cosponsor of S. S. 503 Hawaii (Mr. AKAKA), and the Senator 321, a bill to amend title XIX of the So- At the request of Mr. REID, the name from California (Mrs. FEINSTEIN) were cial Security Act to provide families of of the Senator from South Dakota (Mr. added as cosponsors of S. 697, a bill to disabled children with the opportunity DASCHLE) was added as a cosponsor of modernize the financing of the railroad to purchase coverage under the med- S. 503, a bill to amend the Safe Water retirement system and to provide en- icaid program for such children, and Act to provide grants to small public hanced benefits to employees and bene- for other purposes. drinking water system. ficiaries. S. 327 S. 540 At the request of Mr. HATCH, the At the request of Mr. REED, the name At the request of Mr. DEWINE, the name of the Senator from Mississippi of the Senator from Minnesota (Mr. name of the Senator from New Jersey (Mr. COCHRAN) was added as a cospon- DAYTON) was added as a cosponsor of S. (Mr. CORZINE) was added as a cosponsor sor of S. 697, supra.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4177 S. 741 Dakota (Mr. JOHNSON) and the Senator like health coverage or paid leave. At the request of Mr. SESSIONS, the from Georgia (Mr. CLELAND) were Only a small fraction of child care name of the Senator from Arkansas added as cosponsors of S. Res. 75, a res- workers have graduated from college. (Mr. HUTCHINSON) was added as a co- olution designating the week beginning We pay people millions of dollars a sponsor of S. 741, a bill to amend the May 13, 2001, as ‘‘National Bio- year to throw baseballs, to shoot bas- Internal Revenue Code of 1986 to pro- technology Week’’. ketballs, and to swing golf clubs. What vide tax credits with respect to nuclear S. CON. RES. 14 does that say about our priorities when facilities, and for other purposes. At the request of Mr. CAMPBELL, the at the same time we pay those who S. 742 name of the Senator from Georgia (Mr. care for our most precious resource, At the request of Mr. GRASSLEY, the MILLER) was added as a cosponsor of S. our children, poverty-level wages? names of the Senator from Maine (Ms. Con. Res. 14, a concurrent resolution A report released yesterday by the COLLINS), the Senator from Utah (Mr. recognizing the social problem of child University of California, Berkeley and BENNETT), the Senator from Kentucky abuse and neglect, and supporting ef- the Center for Child Care Workforce on (Mr. BUNNING), and the Senator from forts to enhance public awareness of it. child care providers’ pay, training and education highlights the current crisis Wyoming (Mr. THOMAS) were added as S. CON. RES. 28 in the child care field. In a survey of cosponsors of S. 742, a bill to provide At the request of Ms. SNOWE, the child care centers in three California for pension reform, and for other pur- name of the Senator from Iowa (Mr. communities, the study found that poses. HARKIN) was added as a cosponsor of S. three-quarters of all child care staff S. 778 Con. Res. 28, a concurrent resolution employed in 1996 were no longer on the At the request of Mr. HAGEL, the calling for a United States effort to end job in 2000. Some centers reported 100 names of the Senator from New Mexico restrictions on the freedoms and percent turnover. Additionally, nearly (Mr. DOMENICI) and the Senator from human rights of the enclaved people in half of the child care providers who had Nevada (Mr. ENSIGN) were added as co- the occupied area of Cyprus. left had a bachelor’s degree, compared sponsors of S. 778, a bill to expand the f to only one-third of the new teachers. class of beneficiaries who may apply Some 49 percent, nearly half, of those for adjustment of status under section STATEMENTS ON INTRODUCED who had left their job, left the child 245(i) of the Immigration and Nation- BILLS AND JOINT RESOLUTIONS care field entirely. ality Act by extending the deadline for By Mr. DODD (for himself and It’s clear that if we want to attract classification petition and labor cer- Mr. CORZINE): quality teachers to the child care field, tification filings. S. 814. A bill to establish the Child the pay has to better reflect the value S. 803 Care Provider Retention and Develop- we place on their work. We can’t at- At the request of Mr. LIEBERMAN, the ment Grant Program and the Child tract them and we can’t keep them if name of the Senator from Michigan Care Provider Scholarship Program; to we don’t pay them a living wage. (Ms. STABENOW) was added as a cospon- the Committee on Health, Education, The legislation I am introducing sor of S. 803, a bill to enhance the man- Labor, and Pensions. today will provide states with funds to agement and promotion of electronic Mr. DODD. Mr. President, I rise increase child care worker pay based Government services and processes by today to introduce the Focus on Com- on the level of education, the greater establishing a Federal Chief Informa- mitted and Underpaid Staff for Chil- the level of education, the greater the tion Officer within the Office of Man- dren’s Sake Act. I am pleased that Sen- increase in pay. In addition, the legis- agement and Budget, and by estab- ator CORZINE is joining me as a original lation will provide scholarships of up lishing a broad framework of measures cosponsor and that companion legisla- to $1,500 for child care workers who that require using Internet-based infor- tion is being introduced in the House want to further their early childhood mation technology to enhance citizen today by Representatives MILLER and education training by getting a college access to Government information and GILMAN. degree, an Associate’s degree, or a services, and for other purposes. The need for child care has become a child development associate credential. S.J. RES. 13 daily fact of life for millions of parents We will never make significant At the request of Mr. WARNER, the nationwide. 65 percent of mothers with strides in improving the quality of name of the Senator from North Caro- children under age six and 78 percent of child care in this nation if we fail to lina (Mr. HELMS) was added as a co- mothers with children ages 6 to 13 are address one of the leading problems, at- sponsor of S.J. Res. 13 , a joint resolu- in the labor force. Each day, 13 million tracting and retaining a quality child tion conferring honorary citizenship of preschool children, including 6 million care workforce. It is time to invest in the United States on Paul Yves Roch infants and toddlers, spend some part our children by investing in those who Gilbert du Motier, also known as the of their day in child care. dedicate their lives to caring for our Marquis de Lafayette. The quality of that care has a tre- children. mendous impact on the critical early S. RES. 63 I ask unanimous consent that the years of children’s development. And, At the request of Mr. CAMPBELL, the text of the bill be printed in the the most powerful determinant of the RECORD. name of the Senator from Wisconsin quality of child care is the training, (Mr. FEINGOLD) was added as a cospon- There being no objection, the bill was education, and pay of those who spend ordered to be printed in the RECORD, as sor of S. Res. 63, a resolution com- 8–10 hours a day caring for our chil- memorating and acknowledging the follows: dren. S. 814 dedication and sacrifice made by the Yet, what we know about the child men and women who have lost their Be it enacted by the Senate and House of Rep- care field is alarming. Despite the fact resentatives of the United States of America in lives while serving as law enforcement that continuity of care is critical for officers. Congress assembled, the emotional development of children, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. S. RES. 74 staff turnover at child care centers (a) SHORT TITLE.—This Act may be cited as At the request of Mr. DAYTON, the averages 30 percent per year—four the ‘‘Focus On Committed and Underpaid name of the Senator from North Caro- times greater than the turnover rate Staff for Children’s Sake Act’’ or as the lina (Mr. EDWARDS) was added as a co- for elementary school teachers. ‘‘FOCUS Act’’. sponsor of S. Res. 74, a resolution ex- Despite the fact that we as a society (b) TABLE OF CONTENTS.— pressing the sense of the Senate re- say there is no more important task Sec. 1. Short title; table of contents. garding consideration of legislation than helping to raise a child, according Sec. 2. Findings and purpose. providing medicare beneficiaries with to the Bureau of Labor Statistics, we Sec. 3. Definitions. outpatient prescription drug coverage. Sec. 4. Funds for child care provider reten- pay the average child care worker tion and development grants S. RES. 75 about $15,400 a year, barely above the and for child care provider At the request of Mr. HUTCHINSON, poverty level for a family of three. Few scholarships. the names of the Senator from South child care providers have basic benefits Sec. 5. Application and plan.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 0624 Sfmt 0655 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4178 CONGRESSIONAL RECORD — SENATE May 2, 2001 Sec. 6. Allotments to States. care providers. Such programs encourage the 6, a State shall submit to the Secretary an Sec. 7. Child Care Provider Retention and training, education and increased retention application at such time, in such manner, Development Grant Program. of qualified child care providers by offering and containing such information as the Sec- Sec. 8. Child Care Provider Scholarship Pro- financial incentives, including scholarships retary may require by rule and shall include gram. and compensation increases, that range from in such application a State plan that satis- Sec. 9. Annual report. $350 to $6,500 annually. fies the requirements of subsection (b). Sec. 10. Authorization of appropriations. (b) PURPOSE.—It is the purpose of this Act (b) REQUIREMENTS OF PLAN.— (1) LEAD AGENCY.—The State plan shall SEC. 2. FINDINGS AND PURPOSE. to establish the Child Care Provider Reten- tion and Development Grant Program and identify the lead agency to make grants (a) FINDINGS.—Congress makes the fol- under this Act. lowing findings: the Child Care Provider Scholarship Pro- gram, to help children receive the high qual- (2) RECRUITMENT AND RETENTION OF CHILD (1) Research on early brain development ity child care and early education they need CARE PROVIDERS.—The State plan shall de- and early childhood demonstrates that the for positive cognitive and social develop- scribe how the lead agency will encourage experiences children have and the attach- ment, by rewarding and promoting retention both the recruitment of child care providers ments they form early in life have a decisive, of committed, qualified child care providers who are new to the child care field and the long-lasting impact on their later develop- and by providing financial assistance to im- retention of child care providers who have a ment and learning. prove the educational qualifications of child demonstrated commitment to the child care (2) High-quality, developmentally appro- care providers. field. priate child care beginning in early child- SEC. 3. DEFINITIONS. (3) NOTIFICATION OF GRANT AVAILABILITY.— hood and continuing through the years that In this Act: The State plan shall describe how the lead children are in school improves the scho- (1) CHILD CARE PROVIDER.—The term ‘‘child agency will identify and notify all eligible lastic success and educational attainments care provider’’ means an individual who pro- child care providers in the State of the avail- of children that persist into adulthood. vides a service directly to a child on a person ability of grants under this Act. (3) According to a growing body of re- to person basis for compensation at— (4) DISTRIBUTION OF GRANTS.—The State search, the single most important deter- (A) a center-based child care provider that plan shall describe how the lead agency will minant of child care quality is the presence is licensed or regulated under State law and make grants under sections 7 and 8 to child of consistent, sensitive, well-trained, and that satisfies the State and local require- care providers in selected geographical areas well-compensated child care providers; how- ments applicable to the child care services in the State in compliance with the fol- ever, child care programs nationwide experi- provided, lowing requirements: ence high turnover in teaching staff, fueled (B) a licensed or regulated family child (A) SELECTION OF GEOGRAPHICAL AREAS.— by poor compensation and few opportunities care provider that satisfies the State and For the purpose of making such grants for a for advancement. local requirements applicable to the child fiscal year, the State shall select a variety of (4) The Department of Labor reports that care services provided, or geographical areas, determined by the State, in 1999 the average wage for a child care pro- (C) an out-of-school time program that is that— vider was $7.42 per hour, or $15,430 annually. licensed or regulated under State law and (i) includes urban areas, suburban areas, For a full-time, full-year work, the wages of that satisfies the State and local require- and rural areas, and a child care provider were not much above ments applicable to the child care services (ii) contains diversity of income levels, the 1999 poverty threshold of $13,423 for a sin- provided, but shall give special consideration to geo- gle parent with two children. Family child (2) FAMILY CHILD CARE PROVIDER.—The graphical areas selected under this subpara- care providers earned even less. The median term ‘‘family child care provider’’ has the graph for the preceding fiscal year. wage of a family child care provider in 1999 meaning given such term in section 658P of (B) SELECTION OF CHILD CARE PROVIDERS TO was $264 weekly, or $13,728 annually. the Child Care and Development Block Grant RECEIVE GRANTS.—The State may make (5) Despite the important role child care Act of 1990 (42 U.S.C. 9858n). grants under section 7 only to eligible child providers may play in early child develop- (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ care providers in geographical areas selected ment and learning, child care providers earn has the meaning given such term in section under subparagraph (A), but— less than bus drivers ($26,460), barbers 4(e) of the Indian Self-Determination and (i) may give special consideration in such ($20,970), and janitors ($18,220). Education Assistance Act (25 U.S.C. 450b(e). areas to eligible grant applicants who have (6) Employer-sponsored benefits are mini- attained a higher relevant educational cre- (4) IN-KIND CONTRIBUTION.—The term ‘‘in- mal for most child care staff. Even among kind contribution’’ means payment of the dential, who provide a specific kind of child child care centers, the availability of health cost of participation of child care providers care services, who provide child care services to populations who meet specific economic care coverage for staff remains woefully in- in health insurance programs or retirement characteristics, or who meet such other cri- adequate. programs. (7) To offer compensation that would be teria as the State may establish, and (5) LEAD AGENCY.—The term ‘‘lead agency’’ (ii) shall give special consideration to eli- sufficient to attract and retain qualified means the agency designated under section gible grant applicants who received a grant child care staff, child care programs would 658D of the Child Care and Development under such section in the preceding fiscal be required to charge fees that many parents Block Grant Act of 1990 (42 U.S.C. 9858b). could not afford. In programs that serve low- year. (6) SECRETARY.—The term ‘‘Secretary’’ (C) LIMITATION.—The State shall describe income children who qualify for Federal and means the Secretary of Health and Human how the State will ensure that grants made State child care subsidies, the reimburse- Services. ment rates set by the State strongly influ- under section 7 to child care providers will (7) STATE.—The term ‘‘State’’ means any of ence the level of compensation that staff re- not be used to offset reductions in the com- the several States, the District of Columbia, pensation of such providers. ceive. Current reimbursement rates for cen- the Commonwealth of Puerto Rico, Guam, ter-based child care services and family child (D) REPORTING REQUIREMENT.—With respect American Samoa, or the Commonwealth of to each particular geographical area se- care services are insufficient to recruit and the Northern Mariana Islands. retain qualified child care providers and to lected, the State shall agree for each fiscal ensure high-quality services for children. (8) TRIBAL ORGANIZATION.—The term ‘‘trib- year for which such State receives a grant (8) Teachers leaving the profession are re- al organization’’ has the meaning given such under this section— placed by staff with less education and for- term in section 4 of the Indian Self-Deter- (i) to include in the report required by sec- mal training in early child development. mination and Education Assistance Act. tion 9, detailed information regarding— (9) As a result of low wages and limited SEC. 4. FUNDS FOR CHILD CARE PROVIDER RE- (I) the continuity of employment of grant benefits, many child care providers do not TENTION AND DEVELOPMENT recipients as child care providers with the GRANTS AND FOR CHILD CARE PRO- stay long in the child care field. Approxi- same employer, VIDER SCHOLARSHIPS. (II) with respect to each employer that em- mately thirty percent of all teaching staff (a) IN GENERAL.—The Secretary may allot leave their child care centers each year. ployed a grant recipient, whether such em- funds appropriated to carry out this Act to ployer was accredited by a recognized State (10) Child care providers, as well as the eligible States for distribution to pay the or national accrediting body during the pe- children, families, and businesses that de- Federal share of the cost of making grants riod of employment, and pend upon them, suffer the consequences of under this Act to eligible child care pro- (III) to the extent practicable and avail- inadequate compensation. This is true, with viders. able to the State, detailed information re- few exceptions, for providers in all types of (b) ALLOTMENTS.—Funds allotted under programs: subsidized, nonsubsidized, for- section 6 shall be distributed by the Sec- garding the rate and frequency of employ- profit, nonprofit, large, and small child care retary, and expended by the States (directly, ment turnover of qualified child care pro- settings. or at the option of the States, through units viders throughout such area, (11) Because of the severe shortage of of general purpose local government), and by during the 2-year period ending of the date of qualified staff available for employment by Indian tribes and tribal organizations, in ac- applications for grants under section 7, and child care programs nationwide, several cordance with this Act. (ii) to provide a follow-up report, not later States have recently initiated programs to SEC. 5. APPLICATION AND PLAN. than 90 days after the end of the succeeding improve the quality of child care by increas- (a) APPLICATION.—To be eligible to receive fiscal year that includes information regard- ing the training and compensation of child a distribution of funds allotted under section ing—

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4179 (I) the continuity of employment of grant under such section may be used, including capita income of all individuals in the recipients as child care providers with the only programs that— United States, by the per capita income of same employer, (A) are administered by institutions of all individuals in the State. (II) with respect to each employer that em- higher education that are eligible to partici- (B) LIMITATIONS.—If an allotment percent- ployed a grant recipient, whether such em- pate in student financial assistance pro- age determined under subparagraph (A)— ployer was accredited by a recognized State grams under title IV of the Higher Education (i) is more than 1.2 percent, then the allot- or national accrediting body during the pe- Act of 1965 (20 U.S.C. 1070 et seq.), and ment percentage of that State shall be con- riod of employment, and (B) lead to a State or nationally recognized sidered to be 1.2 percent, and (III) to the extent practicable and avail- credential in the area of child development (ii) is less than 0.8 percent, then the allot- able to the State, detailed information re- or early child education, an associate of the ment percentage of the State shall be consid- garding the rate and frequency of employ- arts degree in the area of child development ered to be 0.8 percent. –– ment turnover of qualified child care pro- or early child education, or a baccalaureate (C) PER CAPITA INCOME.—For purposes of viders throughout such area, degree in the area of child development or subparagraph (A), per capita income shall during the 1-year period beginning on the early child education. be— date grants are made by under section 7 to (7) EMPLOYER CONTRIBUTION.—The State (i) determined at 2-year intervals, applicants. plan shall describe how the lead agency will (ii) applied for the 2-year period beginning (5) CHILD CARE PROVIDER RETENTION AND DE- encourage employers of child care providers on October 1 of the first fiscal year beginning VELOPMENT GRANT PROGRAM.—The State plan to contribute to the attainment of education on the date such determination is made, and shall describe how the lead agency will de- goals by child care providers who receive (iii) equal to the average of the annual per termine the dollar amounts of grants made grants under section 8. capita incomes for the most recent period of with funds available to carry out section 7 in (8) SUPPLEMENTATION.—The State plan 3 consecutive years for which satisfactory accordance with the following requirements: shall provide assurances that funds received data are available from the Department of (A) The State shall demonstrate that the by the State to carry out sections 7 and 8 Commerce at the time such determination is amounts of individual grants to be made will be used only to supplement, not to sup- made. under section 7 will be sufficient— plant, Federal, State, and local funds other- (c) ALLOTMENTS TO INDIAN TRIBES AND (i) to encourage child care providers to im- wise available to support existing services TRIBAL ORGANIZATIONS.— prove their qualifications, and and activities that encourage child care pro- (1) RESERVATION OF FUNDS.—From amounts (ii) to retain qualified child care providers viders to improve their qualifications and reserved under subsection (a)(2), the Sec- in the child care field. that promote the retention of qualified child retary may make allotments to Indian tribes (B) Such grants made to child care pro- care providers in the child care field. and tribal organizations that submit applica- viders who have a child development asso- SEC. 6. ALLOTMENTS TO STATES. tions under this subsection, to plan and ciate credential and who are employed full- (a) AMOUNTS RESERVED.— carry out programs and activities to encour- time to provide child care services shall be (1) TERRITORIES AND POSSESSIONS.—The age child care providers to improve their in an amount that is not less than $1,000 per Secretary shall reserve not more than 1⁄2 of 1 qualifications and to retain qualified child year. percent of the funds appropriated to carry care providers in the child care field. (C) The State shall make such grants in out this Act for any fiscal year for distribu- (2) APPLICATIONS AND REQUIREMENTS.—An larger dollar amounts to child care providers tion to Guam, American Samoa, and the application for an allotment to an Indian who have higher levels of education than a Commonwealth of the Northern Mariana Is- tribe or tribal organization under this sec- credential such as a child development asso- lands, to be allotted in accordance with their tion shall provide that— ciate credential, according to the following respective needs. (A) the applicant will coordinate, to the requirements: (2) INDIAN TRIBES AND TRIBAL ORGANIZA- maximum extent practicable, with the lead (i) A child care provider who has a bacca- TIONS.—The Secretary shall reserve not more agency in each State in which the applicant laureate degree in the area of child develop- than 3 percent of the funds appropriated to will carry out such programs and activities, ment or early child education shall receive a carry out this Act for any fiscal year for dis- and grant that is not less than twice the amount tribution to Indian tribes and tribal organi- (B) will make such reports on, and conduct of the grant that is made to a child care pro- zations with applications approved under such audits of, programs and activities under vider who has an associate of the arts degree subsection (c). this Act as the Secretary may require. in the area of child development or early (b) ALLOTMENTS TO REMAINING STATES.— (d) DATA AND INFORMATION.—The Secretary child education. (1) GENERAL AUTHORITY.—From the funds shall obtain from each appropriate Federal (ii) A child care provider who has an asso- appropriated to carry out this Act for any agency, the most recent data and informa- ciate of the arts degree in the area of child fiscal year remaining after reserving funds tion necessary to determine the allotments development or early child education shall under subsection (a), the Secretary shall provided for in subsection (b). receive a grant that is not less than 150 per- allot to each State (excluding Guam, Amer- (e) REALLOTMENTS.— cent of the amount of the grant that is made ican Samoa, and the Commonwealth of the (1) IN GENERAL.—Any portion of the allot- to a child care provider who has a child de- Northern Mariana Islands) an amount equal ment under subsection (b) to a State for a velopment associate credential. to the sum of— fiscal year that the Secretary determines (iii)(I) Except as provided in subclause (II), (A) an amount that bears the same ratio to will not be distributed to the State for such a child care provider who has a bacca- 50 percent of such remainder as the product fiscal year shall be reallotted by the Sec- laureate degree in a field other than child of the young child factor of the State and retary to other States proportionately based development or early child education shall the allotment percentage of the State bears on allotments made under such subsection to receive a grant equal to the grant made to a to the sum of the corresponding products for such States for such fiscal year. child care provider who has an associate of all States, and –– (2) LIMITATIONS.— the arts degree in the area of child develop- (B) an amount that bears the same ratio to (A) REDUCTION.—The amount of any real- ment or early child education. 50 percent of such remainder as the product lotment to which a State is entitled to under (II) If a child care provider who has such of the school lunch factor of the State and paragraph (1) shall be reduced to the extent baccalaureate degree obtains additional edu- the allotment percentage of the State bears that such amount exceeds the amount that cational training in the area of child devel- to the sum of the corresponding products for the Secretary estimates will be distributed opment or early child education, as specified all States. –– to the State to make grants under this Act. by the State, such provider shall receive a (2) YOUNG CHILD FACTOR.—The term ‘‘young (B) REALLOTMENTS.—The amount of such grant equal to the grant required under child factor’’ means the ratio of the number reduction shall be reallotted proportionately clause (i). of children in the State under 5 years of age based on allotments made under subsection (D) The State shall make such grants in to the number of such children in all States (b) to States with respect to which no reduc- larger dollar amounts to child care providers as provided by the most recent annual esti- tion in an allotment, or in a reallotment, is who work full-time relative to the grant mates of population in the States by the Bu- required by this subsection. amount made to child care providers who reau of the Census. (3) AMOUNTS REALLOTTED.—For purposes of work part-time, based on the State defini- (3) SCHOOL LUNCH FACTOR.—The term this Act (other than this subsection and sub- tions of full-time and part-time work. ‘‘school lunch factor’’ means the ratio of the section (b)), any amount reallotted to a (E) The State shall provide grants in pro- number of children in the State who are re- State under this subsection shall be consid- gressively larger dollar amounts to child ceiving free or reduced price lunches under ered to be part of the allotment made under care providers to reflect the number of years the school lunch program established under subsection (b) to the State. worked as a child care provider. the National School Lunch Act (42 U.S.C. (f) COST SHARING.— (6) DISTRIBUTION OF CHILD CARE PROVIDER 1751 et seq.) to the number of such children (1) FEDERAL SHARE.—Allotted funds distrib- SCHOLARSHIPS.—The State plan shall describe in all the States as determined annually by uted by the Secretary to a State for a fiscal how the lead agency will make scholarship the Department of Agriculture. year to carry out sections 7 and 8 may be grants in compliance with section 8 and shall (4) ALLOTMENT PERCENTAGE.— used by the State to pay— specify the types of educational and training (A) IN GENERAL.—The allotment percentage (A) not more than 90 percent of the cost of programs for which scholarship grants made for a State is determined by dividing the per each grant made under such sections, in the

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4180 CONGRESSIONAL RECORD — SENATE May 2, 2001 1st fiscal year for which the State receives full calendar year ending on the date of the (vi) the number of course credits or creden- such funds, application for such grant. tials obtained by grant recipients, and (B) not more than 85 percent of the cost of (c) SELECTION OF GRANTEES.—For purposes (vii) the amount of time taken for comple- each grant made under such sections, in the of selecting child care providers to receive tion of the education for which such grants 2d fiscal year for which the State receives scholarship grants under this section and de- were made, and such funds, termining the dollar amounts of such grants, (G) such other information as the Sec- (C) not more than 80 percent of the cost of a State may not— retary may require by rule. each grant made under such sections, in the (1) take into consideration whether a grant SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 3d fiscal year for which the State receives applicant is receiving, will receive, or has There is authorized to be appropriated such funds, and applied to receive any funds under any other $5,000,000,000 in the aggregate for fiscal years (D) not more than 75 percent of the cost of provision of this Act, or under any other 2002 through 2006 to carry out this Act. each grant made under such sections, in any Federal or State law that provides funds for subsequent fiscal year for which the State educational purposes, or By Mr. MURKOWSKI: receives such funds. (2) consider as resources of such applicant S. 815. A bill to make improvements (2) STATE SHARE.—The non-Federal share of any funds such applicant is receiving, may to the Arctic Research and Policy Act the cost of making such grants shall be paid receive, or may be eligible to receive under of 1984; to the Committee on Govern- by the State in cash or in the form of an in- any other provision of this Act, under any mental Affairs. kind contribution, fairly evaluated by the other Federal or State law that provides Mr. MURKOWSKI. Mr. President, Secretary. funds for educational purposes, or from a pri- today I rise to introduce legislation to (g) AVAILABILITY OF ALLOTTED FUNDS DIS- vate entity. improve the operation of the Arctic Re- TRIBUTED TO STATES.—Of the allotted funds (d) COST SHARING REQUIRED.—The dollar distributed under this Act to a State for a amount of a scholarship grant made under search and Policy Act. We have about fiscal year— this section to a child care provider shall be 17 years of experience with this act, (1) not less than 67.5 percent shall be avail- less than the cost of the education for which and the time has come to make some able to the State for grants under section 7, such grant is made. modifications to reflect the experience (2) not less than 22.5 percent shall be avail- (e) ANNUAL MAXIMUM SCHOLARSHIP GRANT we have gained over that time. able to the State for grants under section 8, AMOUNT.—The maximum aggregate dollar The most important feature of this and amount of a scholarship grant made to an el- bill is contained in section 4. This sec- (3) not more than 10 percent shall be avail- igible child care provider under this section tion authorizes the Arctic Research able to pay administrative costs incurred by in a fiscal year may not exceed $1,500. Committee, a Presidential Commis- the State to carry out this Act. SEC. 9. ANNUAL REPORT. sion, to make grants for scientific re- SEC. 7. CHILD CARE PROVIDER RETENTION AND A State that receives funds appropriated to search. Currently, the Commission can DEVELOPMENT GRANT PROGRAM. carry out this Act for a fiscal year shall sub- make recommendations and set prior- (a) IN GENERAL.—A State that receives mit to the Secretary, not later than 90 days funds allotted under section 6 and made ities, but it cannot make grants. Our after the end of such fiscal year, a report— experience with the act and the Com- available to carry out this section shall ex- (1) specifying the uses for which the State pend such funds to make grants to eligible expended such funds, and the aggregate mission has shown us that research child care providers in accordance with this amount of funds (including State funds) ex- needs that do not fit neatly in a single section, to improve the qualifications and pended for each of such uses, agency do not get funded, even if they promote the retention of qualified child care (2) containing available data relating to are compelling priorities. providers. grants made with such funds, including— One example is a proposed Arctic (b) ELIGIBILITY TO RECEIVE GRANTS.—To be (A) the number of child care providers who contamination initiative that was de- eligible to receive a grant under this section, received such grants, veloped a few years ago after we dis- a child care provider shall— (B) the dollar amounts of such grants, covered that pollutants from the (1) have a child development associate cre- (C) any other information that describes or Former Soviet Union, including radio- dential or equivalent, an associate of the evaluates the effectiveness of this Act, nuclides, heavy metals and persistent arts degree in the area of child development (D) the particular geographical areas se- or early child education, a baccalaureate de- lected under section 5 for the purpose of organic pollutants, were working their gree in the area of child development or making such grants, way into the Arctic environment. It be- early child education, or a baccalaureate de- (E) with respect to grants made under sec- came clear that the job of monitoring gree in an unrelated field, and tion 7— and evaluating the threat was too big (2) be employed as a child care provider for (i) the number of years grant recipients for any single agency. The Interior De- not less than 1 calendar year, or the program have been employed as a child care provider, partment, given its vast land manage- equivalent of 1 calendar year if then em- (ii) the level of training and education of ment responsibilities in Alaska, was in- ployed in a child care program that operates grant recipients, terested. The Commerce Department, for less than a full calendar year, ending on (iii) the salaries and other compensation given its jurisdiction over fisheries the date of the application for such grant, received by grant recipients to provide child issues, was interested. The Department except that not more than 3 months of edu- care services, cation related to child development or to (iv) the number of children who received of Health and Human Services, given early child education obtained during a cal- child care services provided by grant recipi- its concern about the health of Alas- endar year may be treated as employment ents, ka’s indigenous peoples, was inter- that satisfies the requirements of this para- (v) information on family demographics of ested. The only agency that didn’t graph. such children, seem interested in the problem, (c) PRESERVATION OF ELIGIBILITY.—The re- (vi) the types of settings described in sub- strangely enough, was the EPA, which ceipt of a grant under section 8 by a child paragraphs (A), (B), and (C) of section 3(a)(1) at the time was in the process of dis- care provider shall not be taken into consid- in which grant recipients are employed, and mantling its Arctic Contaminants pro- eration for purposes of selecting eligible ap- (vii) the ages of the children who received gram. plicants to receive a grant under this sec- child care services provided by grant recipi- Unfortunately, because the job was tion. ents, too big for any single agency, it was SEC. 8. CHILD CARE PROVIDER SCHOLARSHIP (F) with respect to grants made under sec- PROGRAM. tion 8— difficult to get the level of interagency (a) IN GENERAL.—A State that receives (i) the number of years grant recipients cooperation necessary for a coordi- funds allotted under section 6 and made have been employed as child care provider, nated program. Moreover, agencies available to carry out this section shall ex- (ii) the types of settings described in sub- were unwilling to make a significant pend such funds to make scholarship grants paragraphs (A), (B), and (C) of section 3(a)(1) budgetary commitment to a program to eligible child care providers in accordance in which grant recipients are employed, and that wasn’t under their exclusive con- with this section to improve their edu- (iii) the level of training and education of trol. If the Arctic Research Commis- cational qualifications to provide child care grant recipients, sion, which recognized the need, had services. (iv) to the extent practicable and available some funding of its own to leverage (b) ELIGIBILITY REQUIREMENT FOR SCHOLAR- to the State, detailed information regarding agency participation and help to co- SHIP GRANTS.—As a condition of eligibility the salaries and other compensation received to receive a scholarship grant under this sec- by grant recipients to provide child care ordinate the effort, we would know far tion, a child care provider shall be employed services before, during, and after receiving more about the Arctic contaminants as a child care provider for not less than 1 such grant, problem than we do today. calendar year, or the program equivalent of (vi) the ages of the children who received Another example is the compelling 1 calendar year if then employed in a child child care services provided by grant recipi- need to understand the Bering Sea eco- care program that operates for less than a ents, system. Over the past 20 years we have

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4181 seen significant shifts in some of the coins to be acquired by individual re- small and large investor and should populations comprising this ecosystem. tirement accounts and other individ- given the same treatment under the King crab populations have declined ually directed pension plan accounts; law as other financial investments. I sharply. Pollock populations have in- to the Committee on Finance. urge the Senate to enact this impor- creased sharply. Steller sea lion popu- Mr. BREAUX. Mr. President, I rise tant legislation as soon as possible. lations have declined as have many today to introduce legislation allowing I ask unanimous consent that the types of sea birds. Scientists cannot certain U.S. legal tender coins to be text of the bill be printed in the tell us whether these population shifts qualified investments for an individual RECORD. are due to abiotic factors such as cli- retirement account, IRA. There being no objection, the bill was mate change, biotic factors such as Congress excluded ‘‘collectibles,’’ ordered to be printed in the RECORD, as predator-prey relationships, or some such as antiques, gold and silver bul- follows: combination of both. Because the na- lion, and legal tender coinage, as ap- S. 816 tion depends on this area for a signifi- propriate for contributions to IRAs in cant portion of all its seafood, this is 1981. The primary reason was the con- Be it enacted by the Senate and House of Representatives of the United States of America not an issue without stakeholders. De- cern that individuals would get a tax in Congress assembled, spite the chorus of interests and fed- break when they bought collectibles SECTION 1. CERTAIN COINS NOT TREATED AS eral agencies that have said research is for their personal use. For example, a COLLECTIBLES. needed, a coordinated effort has not taxpayer might deduct the purchase of (a) IN GENERAL.—Subparagraph (A) of sec- yet occurred. If the Arctic Research an antique rug for his/her living room tion 408(m)(3) of the Internal Revenue Code Commission, which recognized this as an IRA investment. Congress was of 1986 (relating to exception for certain need early on, had some funding of its also concerned about how the many coins and bullion) is amended to read as fol- own to leverage agency participation different types of collectibles are val- lows: and help to coordinate the effort, we ued. ‘‘(A) any coin certified by a recognized would know far more about the Bering Over the years, however, certain grading service and traded on a nationally recognized electronic network, or listed by a Sea ecosystem than we do today. coins and precious metals have been This bill also makes a number of recognized wholesale reporting service, and— excluded from the definition of a col- ‘‘(i) which is or was at any time legal ten- other minor changes in the act: lectible because they are independently der in the United States, or Section 2 allows the chairperson of valued investments that offer investors ‘‘(ii) issued under the laws of any State, the Commission to receive compensa- portfolio diversity and liquidity. For or’’. tion for up to 120 days per year rather example, Congress excluded gold and (b) EFFECTIVE DATE.—The amendment than the 90 days per year currently al- silver U.S. American Eagles from the made by this section shall apply to taxable lowed by the Act. The chairperson has definition of collectibles in 1986, and years beginning after December 31, 2001. a major role to play in interacting with the Taxpayer Relief Act of 1997 took the legislative and executive branches the further step of excluding certain By Mr. DOMENICI (for himself of the government, representing the precious metals bullion. and Mr. BINGAMAN): Commission to non-governmental orga- My legislation would exclude from S. 817. A bill to amend the National nizations, in interacting with the State the definition of collectibles only those Trails System Act to designate the Old of Alaska, and serving in international U.S. legal tender coins which meet the Spanish Trail as a National Historic fora. In the past, chairpersons have following three standards: certification Trail; to the Committee on Energy and been unable to fully discharge their re- by a nationally recognized grading Natural Resources. sponsibilities in the 90 day limit speci- service, traded on a nationally recog- Mr. DOMENICI. Mr. President, I fied in the act. nized network, and held by a qualified stand here before you today to intro- Section 3 authorizes the Commission trustee as described in the Internal duce the designation of the Old Spanish to award an annual award not to ex- Revenue Code. In other words, only in- Trail as a National Historic Trail. This ceed $1,000 to recognize either out- vestment quality coins that are inde- legislation will amend the National standing research or outstanding ef- pendently valued and not held for per- Trails System Act and designate the forts in support of research in the Arc- sonal use may be included in IRAs. Old Spanish Trail; which originates in tic. The ability to give modest awards There are several nationally recog- Santa Fe, NM and continues to Los An- will bring recognition to outstanding nized, independent certification or geles, CA as a National Historic Trail. efforts in Arctic Research which, in grading services. Full-time profes- The United Stats of America has a turn, will help to stimulate research in sional graders, numismatists, examine rich history of which, as citizens, we the Arctic region. This section also each coin for authenticity and grade are very proud. Particularly in the specifies that a current or former Com- them according to established stand- west, citizens from all walks of life mission member is not eligible to re- ards. Upon certification, the coin is have deep rooted cultural and historic ceive the award. sonically-sealed, preserved, to ensure ties to land throughout the west. The Section 5 authorizes official rep- Old Spanish Trail dates back to 1829. resentation and reception activities. that it remains in the same condition The Old Spanish Trail had a variety of Because the Commission is not author- as when it was graded. uses, from trade caravans to military ized to use funds for these kinds of ac- Legal tender coins are then traded expeditions. For twenty plus years the tivities, the Commission has experi- via two independent electronic net- Old Spanish Trail was used as a main enced embarrassment when they were works—the Certified Coin Exchange route of travel between New Mexico unable to reciprocate after their for- and Certified Coin Net. These networks and California. eign counterparts hosted a reception or are independent of each other and have Today, more than one hundred and lunch on their behalf. Under this provi- no financial interest in the legal tender fifty years after the first caravan on sion, the Commission may spend not coinage and precious metals markets. the Old Spanish Trail, the historic more than two tenths of one percent of The networks function in precisely the character of the trail is tied to its its budget for representation and recep- same manner as the NASDAQ with a routes in the natural environment and tion activities in each fiscal year. series of published ‘‘bid’’ and ‘‘ask’’ The Arctic Research and Policy Act prices and last trades. The buys and the existence of landscapes along the and the Arctic Research Commission sells are enforceable prices that must trail. The Old Spanish Trail remains has worked well over the past 17 years. be honored as posted until updated. relatively unchanged from the trail pe- It can work even better with these The liquidity provided through a riod. It has also been proven that nu- modest changes. I look forward to bona fide national trading network, merous Indian pueblos were situated working with my colleagues to enact combined with published prices, make along the Old Spanish Trail serving as this bill as soon as possible. legal tender coinage a practical invest- trading centers. The majority of these ment that offers investors diversifica- pueblos are occupied by descendants By Mr. BREAUX: tion and liquidity. Investment in these who contributed to the labor and goods S. 816. A bill to amend the Internal tangible assets has become a safe and that constituted commerce on the Old Revenue Code of 1986 to allow certain prudent course of action for both the Spanish Trail.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4182 CONGRESSIONAL RECORD — SENATE May 2, 2001 The National Trails System was es- In looking at the issue of capital prise to some that they must pay tax tablished by the National Trails Sys- gains in 2001, Mr. President, three on the gains at all. Many mutual fund tem Act of 1968 ‘‘to promote the preser- things are clear. First capital gains investors were particularly dismayed vation of, public access to, travel with- and losses are experienced by ordinary this past tax filing season, because in, and enjoyment and appreciation of Americans and are not just the prov- they had to report capital gains from the open air, outdoor areas and historic ince of the wealthy. Second, the report- funds that had decreased in value. resources of the Nation.’’ Designating ing of capital gains transactions on the Second, when mutual fund owners the Old Spanish Trail as a National tax return has grown very complex and sell their interest in a fund, computing Historic Trail would allow for just burdensome, and third, capital gains the capital gain or loss on the sale can what the act has intended, preserva- tax rates are too high. These all add up be daunting, particularly if the indi- tion, access, enjoyment and apprecia- to the need for capital gains relief, and vidual had been reinvesting the divi- tion of the historic resources of our Na- this is what our bill is designed to ad- dends and capital gains back to the tion. dress. fund. By definition under the National Long gone are the days when anyone Finally, after figuring out what cap- Trails System Act of 1968, National can credibly say that capital assets are ital gains have been received and how Historic Trails are ‘‘extended trails only, or even mostly, owned by the much should be reported, and any gain which follow as closely as possible and rich. A 1992 Treasury study showed or loss from a sale of the fund, mutual practicable the original route or routes that about three-quarters of all fami- fund owners, like other investors in of travel of national historic signifi- lies in the U.S. owned capital assets, capital assets, must then deal with the cance.’’ The main route of Old Spanish and this percentage has grown higher challenge of reporting capital gains on Trail travels more than 1,160 miles since then. That same study showed the complicated Schedule D of Form through the states of New Mexico, Col- that 30 percent of the dollar value of 1040. This form is confusing at best and orado, Utah, Arizona, Nevada and Cali- all capital assets, excluding personal exasperating at worst. It consists of 54 fornia as well as 33 different counties residences, was held by families with lines on two pages, and is accompanied throughout these states. More than incomes of $50,000 or less in 1992. by an 8-page set of instructions with 1,190 miles of Old Spanish Trail are cur- More recent data confirm that more two worksheets. The estimated time to rently managed by the Bureau of Land and more U.S. families own capital in- complete this form, according to IRS Management, more than 310 miles are vestments. A survey last year by the estimates, is an astounding 6 hours and managed by the USDA Forest Service Federal Reserve showed that stock 48 minutes. with an additional approximate 120 made up nearly 32 percent of U.S. Finally, it is clear that capital gains miles controlled by the U.S. Fish and household wealth in 1999, up from 28 tax rates are too high. In fact, a new Wildlife Service. The relative lack of percent the year before. Moreover, an- report by Arthur Andersen LLP shows development facilitates public access other Federal Reserve study showed that the average middle-income indi- as well as minimizing potential con- that in 1998, almost 49 percent of all vidual investor faces a combined state flicts with private land uses. families directly or indirectly held and federal capital gains tax burden of The Old Spanish Trail has been sig- stock. Among families with annual in- 25 percent on long-term capital gains. I nificant in many respects to many dif- come of between $25,000 and $50,000, the want to emphasize that this is the av- ferent people. The rich history of this level was almost 53 percent. erage rate across the U.S. In some trail is something that should not be When looking at data on who pays states, including my home state of left out of our National Trails System. capital gains taxes, we find that many Utah where the rate is 27 percent, the Designating Old Spanish Trail as a na- lower- and middle-income Americans burden is even higher. tional Historic Trail will protect this are reporting capital gains. In fact, IRS These figures may surprise some of historic route and its historic rem- data from the year 1998, the latest our colleagues. After all, many mem- nants and artifacts for public use and available, show that over 25 million re- bers of this body were present in 1997 enjoyment. turns filed that year reported capital when we reduced the maximum capital gains. This is about one in five tax re- gains tax rate from 28 percent to 20 By Mr. HATCH (for himself, Mr. turns filed in 1998. Over 40 percent of percent. The fact is, however, that TORRICELLI, Mr. KYL, and Mr. those reporting capital gains had in- most states tack a relatively high addi- MURKOWSKI): come of less than $50,000, and 59 per- tional tax on the federal capital gains S. 818. A bill to amend the Internal cent had income of less than $75,000. rate to produce this 25 percent average Revenue Code of 1986 to provide a long- Moreover, when looking at the dollar capital gains tax rate. term capital gains exclusion for indi- amount of gains reported, we find that This is particularly important in viduals, and to reduce the holding pe- 56 percent of all capital gains in 1998 light of the fact that the United States riod for long-term capital gain treat- were claimed by taxpayers with in- still taxes capital gains more heavily ment to 6 months, and for other pur- comes of under $75,000. than do most other countries. In fact, a poses; to the Committee on Finance. I believe it is very clear, that capital recent survey of 24 industrial and de- Mr. HATCH. Mr. President, on behalf gains relief is not just for wealthy veloping countries taken by the Amer- of myself and Senator TORRICELLI, I Americans. It is very much needed by ican Council for Capital Formation’s rise today to introduce the Capital the average American family. It is also Center for Policy Research showed an Gains Relief and Simplification Act of clear that reporting capital gains is average capital gains rate of 14.5 per- 2001. We are joined by Senators KYLE very complex for most taxpayers. cent. This is more than 10 percent and MURKOWSKI, each of whom contrib- Millions of Americans hold invest- above the combined average federal- uted to the development of this bill. ments in mutual funds. In fact, accord- state U.S. rate. This is a strong, bipartisan capital ing to the Joint Economic Committee, The Capital Gains Relief and Sim- gains tax cut package designed to help 44 percent of all U.S. households owned plification Act we are introducing all investors, but is aimed directly at mutual funds in 1998, up from just 6 today is designed to address the prob- small investors first. percent in 1980. Most of these mutual lem of too high a tax rate as well as This bill takes a bottom-up approach funds annually distribute dividends and the complexity problem, in a way that to capital gains relief, but offers re- capital gains to their owners, which is directed to all taxpayers, but espe- duced capital gains rates to all tax- must be reported as income on Form cially those in the middle- and lower- payers. But this is not all. The bill also 1040 each year. This can be a rather income groups. offers a great deal of simplification for confusing process for many investors, Let me briefly describe this bill. all taxpayers with capital gains to re- for several reasons. First, it provides a 100 percent exclu- port on their tax returns. Both of these First, many mutual fund owners rou- sion for the first $1,000 in capital gains features are important because invest- tinely reinvest the dividend and capital for every individual taxpayer. This ment in capital assets has become such gains income back into the fund, rath- would be $2,000 for a married couple fil- an important part of the lives of most er than taking them in cash. Because ing a joint return. Individuals with Americans. they receive no cash, it comes as a sur- capital gains below these thresholds

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4183 would generally not even have to file Second, the bill increases the amount HUTCHISON, Mr. THURMOND, Mr. AKAKA, the confusing Schedule D. Totally of capital loss an individual may de- Ms. COLLINS, Mr. NELSON of Nebraska, avoiding a complex tax form is the ul- duct against ordinary income. Under Mr. DURBIN, and Mr. DAYTON) sub- timate in simplification. current law, an individual’s capital mitted the following resolution; which Second, for individual capital gains gains are taxed from the first dollar to was referred to the Committee on above the $1,000 (or $2,000) exclusion the last dollar. However, if an indi- Armed Services: threshold, the bill provides a 50 percent vidual suffers a capital loss, and has no S. RES. 80 deduction. The effect of this would be capital gains to use to offset the loss, Whereas the Electronic Countermeasures to lower an individual’s top capital he or she is allowed to deduct only Squadron One (VQ–1) at Whidbey Island gains tax rate to exactly half the ordi- $3,000 of the loss against ordinary in- Naval Air Station performs an electronic re- nary income rate. If for example, under come. This is unfair and the amount is connaissance mission for the defense of our current law an investor’s marginal tax too low. Our legislation helps alleviate Nation; bracket is 31 percent, the top capital this problem by increasing the $3,000 Whereas on April 1, 2001, a VQ–1 EP–3E gains rate for that investor would be Aries II electronic surveillance plane col- figure to $10,000 and indexing it for fu- lided with a Chinese fighter jet and made an 15.5 percent. ture inflation. This deduction approach offers both emergency landing at the Chinese military Finally, the Capital Gains Relief and simplicity, and a greater reduction in airfield on Hainan Island; Simplification Act includes two provi- Whereas the 24 crew members on board the rates for those in the lower tax brack- sions to help taxpayers who sell their plane (referred to in this resolution as the ets than for those in the highest brack- homes and want to take advantage of ‘‘Whidbey 24’’) displayed exemplary bravery ets. For example, compared with cur- and courage and the highest standards of rent law, a taxpayer in the highest tax the principal residence exclusion en- acted in 1997. The first one addresses a professionalism in responding to the colli- bracket of 39.6 percent would find his sion and during the ensuing 11 days in deten- or her top capital gains tax rate cut problem that members of the U.S. uni- tion in the People’s Republic of China; from the current 20 percent to 19.8 per- formed services and Foreign Service Whereas Navy Lieutenant, Shane J. cent under this bill. An investor in the sometimes suffer when called away Osborn, displayed courage and extraordinary 28 percent bracket, however, would see from their homes for work-related pur- skill by safely landing the badly damaged poses. In many cases, they return from EP–3E; and his or her top capital gains rate drop Whereas each member of the ‘‘Whidbey 24’’ from the current 20 percent to 14 per- these assignments and want or need to sell their principal residence. Because embodies the selfless dedication it takes to cent. defend our Nation: Now, therefore, be it Moreover, under this bill investors they do not meet the five-year owner- Resolved, That the Senate— would see further capital gains tax rate ship and use test, however, they are de- (1) expresses relief at the release and safe cuts as the ordinary income tax rates nied the full use of the present law ex- return of the ‘‘Whidbey 24’’ and shares in are reduced, as under President Bush’s clusion. This bill corrects this inequity their families’ joy; tax plan. For example, those in the by suspending this test during such ab- (2) applauds the selfless devotion to duty of proposed 25 percent rate bracket would sences. The provision would also apply the ‘‘Whidbey 24’’ who risked their lives to defend our Nation; enjoy a top capital gains rate of just to individuals relocated outside the United States by their employers. (3) praises the ‘‘Whidbey 24’’ for their pro- 12.5 percent, while those in lower fessionalism and bravery and expresses the brackets would see even lower capital The second provision merely indexes admiration and gratitude of our Nation; and gains rates, to the extent their capital for inflation the $250,000 and $500,000 (4) acknowledges the sacrifices made every gains exceeded the 100 percent exclu- thresholds for purposes of the principal day by the members of our Nation’s Armed sion thresholds. residence exclusion. While these levels Forces as they defend and preserve our Na- Furthermore, this 50 percent deduc- might have seemed adequate in 1997, tion. tion approach also helps with the prob- and perhaps even in 2001, inflation will Mrs. MURRAY. Mr. President, today lem I mentioned before of high com- soon cause these thresholds to be I introduce a resolution honoring the bined federal and state capital gains worth far less than Congress intended Whidbey 24, the brave crewmembers of tax rates. Most states use the federal when crafting this provision. We should an EP–3 aircraft stationed at Whidbey adjusted gross income, AGI, as a start- adjust them now. Island Naval Air Station in my home ing point for determining state income This bill represents a win for every- State of Washington. tax liability. Thus, under current law, body. All investors win because it On April 1, 2001, a United States EP– all of an investor’s capital gains are would significantly lower the capital 3 surveillance aircraft on routine pa- generally included in the state tax gains tax rate and simplify their lives trol in international airspace over the base. Under this bill’s exclusion ap- at tax time. Small investors especially South China Sea collided with a Chi- proach, only 50 percent of capital gains win because all or much of their cap- nese fighter jet. The plane carried a over the exclusion would be included in ital gains would escape taxation alto- crew of 22 Navy personnel, one Air the federal AGI. This means most gether and they would avoid much of Force officer, and one Marine. Fol- states would generally only tax a frac- the complexity they currently face lowing the accident, the U.S. aircraft tion of the investor’s capital gains. with Schedule D. All Americans win and crew plunged as much as 8,000 feet Therefore, this bill would result in because reducing capital gains would before the crew regained control of the lower federal and state taxes on capital increase economic growth and job cre- severely damaged aircraft. Navy Lieu- gains. ation. tenant Shane Osborne, the pilot, and I would like to mention several other I urge my colleagues on both sides of his entire crew displayed extraordinary features of the bill. First, it would re- the aisle to take a close look at this skill and courage as the aircraft made duce the holding period of long-term legislation and join us in lowering an emergency landing at the Chinese capital gains from one year to six taxes on millions of Americans and military airfield on Hainan Island. The months. According to Bruce Bartlett, a striking an important blow for tax sim- 24 crew members were detained on Hai- well-known economist with the Na- plicity at the same time. nan Island in the People’s Republic of tional Center for Policy Analysis, a China for 11 days as the United States f holding period requirement for favor- and China negotiated a diplomatic res- able capital gains treatment has sev- STATEMENTS ON SUBMITTED olution to the aircraft collision and the eral economic costs to investors, the RESOLUTIONS emergency landing. consequences of which may reduce the When I first heard that an American level of investment. Among these eco- plane was forced to make an emer- nomic costs are a reduction in liquidity SENATE RESOLUTION 80—HON- gency landing in China, like all Ameri- and the creation of a lock-in effect that ORING THE ‘‘WHIDBEY 24’’ FOR cans, I was very concerned. Then I can cause the prices of stock to vary THEIR PROFESSIONALISM, BRAV- learned that the crew was based on from its real value. Reducing the hold- ERY, AND COURAGE Whidbey Island, and I realized that ing period will reduce these costs and Mrs. MURRAY (for herself, Mr. BOND, these men and women were my neigh- may also increase revenue to the Mr. MCCAIN, Ms. CANTWELL, Mr. WAR- bors—the people I see at the grocery Treasury from capital gains. NER, Mr. LEVIN, Mr. KENNEDY, Mrs. store. The city of Oak Harbor, which is

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY S4184 CONGRESSIONAL RECORD — SENATE May 2, 2001 home to the Whidbey Island Naval Air Whereas these captives are being held by The hearing will take place on Thurs- Station, was immensely supportive of Hezbollah in Lebanon; day, May 10, 2001, at 2:30 p.m., in room the airmen and their families during Whereas the 2000 Department of State re- SD–366 of the Dirksen Senate Office this incident. The community com- port on foreign terrorist organizations stated Building in Washington, DC. menced a ‘‘Bring Back VQ–1’’ campaign that Hezbollah receives substantial amounts of financial assistance, training, weapons, Because of the limited time available to show their support and deep appre- explosives, and political, diplomatic, and or- for the hearing, witnesses may testify ciation for the crewmembers and their ganizational assistance from Iran and Syria; by invitation only. However, those families. Residents of the city wrapped Whereas Syria, Lebanon, and Iran voted in wishing to submit written testimony trees and light poles with yellow rib- favor of the Universal Declaration of Human for the hearing record should send two bons. My Washington D.C. office dis- Rights in the United Nations General Assem- copies of their testimony to the Com- tributed yellow ribbons to visitors and bly; mittee on Energy and Natural Re- other Senate offices in an effort to Whereas the International Committee of sources, U.S. Senate, SD–354, Dirksen demonstrate our support in the halls of the Red Cross has made numerous attempts to gain access to assess the condition of Senate Office Building, Washington, Congress. DC 20510–6150. On April 14, 2001, the crew returned these prisoners; and Whereas the International Committee of For further information, please con- safely to Washington State to an emo- the Red Cross has been denied access to tact Jim O’Toole or Shane Perkins of tional ‘‘Welcome Home VQ–1’’ celebra- these prisoners: Now, therefore, be it the Committee staff at (202) 224–1219. tion at the Ault Field Hangar at Naval Resolved by the Senate (the House of Rep- Air Station Whidbey Island. These resentatives concurring), That it is the sense f brave men and women displayed un- of Congress that Lebanon, Syria, and Iran common courage, professionalism, and should allow representatives of the Inter- AUTHORITY FOR COMMITTEES TO selfless dedication to duty in the serv- national Committee of the Red Cross to visit MEET ice of our country, from the time of the the four Israelis, Adi Avitan, Binyamin COMMITTEE ON ENVIRONMENT AND PUBLIC collision and throughout their 11-day Avraham, Omar Souad, and Elchanan Tan- WORKS detention. While my resolution seeks nenbaum, presently held by Hezbollah forces in Lebanon. Mr. GREGG. Mr. President, I ask to recognize the Whidbey 24, it is unanimous consent that the Com- equally important to note that thou- f mittee on Environment and Public sands of Americans serve just as honor- AMENDMENTS SUBMITTED AND Works be authorized to meet on ably in service to our country each and PROPOSED every day. Wednesday, May 2, at 9:30 a.m., in SA 357. Mr. DAYTON submitted an amend- order to receive testimony regarding I am so proud of the Whidbey Island ment intended to be proposed by him to the community for it handled this incident the science of global climate change bill S. 1, to extend programs and activities and issues related to reducing net with great compassion for the families under the Elementary and Secondary Edu- and NAS Whidbey personnel. But we cation Act of 1965; which was ordered to lie greenhouse gas emissions. also know that all across America, on the table. The PRESIDING OFFICER. Without military families and the American f objection, it is so ordered. people were standing behind our mili- COMMITTEE ON THE JUDICIARY TEXT OF AMENDMENTS tary personnel. The Whidbey Island Mr. GREGG. Mr. President, I ask community stood tall, proud and patri- SA 357. Mr. DAYTON submitted an unanimous consent that the Com- otic on behalf of the families and the amendment intended to be proposed by mittee on the Judiciary be authorized country. him to the bill S. 1, to extend programs to meet to conduct a hearing on I ask the Senate to join me in recog- and activities under the Elementary Wednesday, May 2, 2001, at 10 a.m., in nizing the bravery and determination and Secondary Education Act of 1965; Dirksen 226. of the Whidbey 24 throughout a deli- which was ordered to lie on the table; The PRESIDING OFFICER. Without cate and dangerous ordeal. On behalf of as follows: objection, it is so ordered. all Americans, I proudly honor them On page 521, between lines 18 and 19, insert SUBCOMMITTEE ON ANTITRUST, BUSINESS and once again welcome them home. the following: RIGHTS, AND COMPETITION f SEC. 405. AMENDMENT TO THE INDIVIDUALS Mr. GREGG. Mr. President, I ask WITH DISABILITIES EDUCATION SENATE CONCURRENT RESOLU- ACT. unanimous consent that the Com- TION 35—EXPRESSING THE Section 611(j) of the Individuals with Dis- mittee on the Judiciary Subcommittee SENSE OF CONGRESS THAT LEB- abilities Education Act (20 U.S.C. 1411(j)) is on Antitrust, Business Rights and ANON, SYRIA, AND IRAN SHOULD amended to read as follows: Competition be authorized to meet to ALLOW REPRESENTATIVES OF ‘‘(j) MANDATORY FUNDING.—For the purpose conduct a hearing on Wednesday, May THE INTERNATIONAL COM- of carrying out this part, other than section 2, 2001, at 2 p.m., in SD–226. 619, there are authorized to be appropriated, MITTEE OF THE RED CROSS TO and there are appropriated in addition to The PRESIDING OFFICER. Without VISIT THE FOUR ISRAELIS, ADI amounts made available in the Consolidated objection, it is so ordered. AVITAN, BINYAMIN AVRAHAM, Appropriations Act, 2001— SUBCOMMITTEE ON OCEANS AND FISHERIES OMAR SOUAD, AND ELCHANAN ‘‘(1) $12,103,000,000 for fiscal year 2002; and Mr. GREGG. Mr. President, I ask TANNENBAUM, PRESENTLY ‘‘(2) not more than $18,165,000,000 or the unanimous consent that the Sub- HELD BY HEZBOLLAH FORCES IN sum of the maximum amount that all States committee on Oceans and Fisheries of LEBANON may receive under subsection (a)(2), which- ever is lower, for fiscal year 2003 .’’. the Committee on Commerce, Science, Mr. SCHUMER (for himself, Mr. and Transportation be authorized to f BROWNBACK, Mr. BAYH, Mr. LIEBERMAN, meet to conduct a hearing on Wednes- Mr. SANTORUM, Mr. SMITH of New NOTICE OF HEARING day, May 2, 2001, at 9:30 a.m., on Indi- Hampshire, Mr. SMITH of Oregon, Mr. SUBCOMMITTEE ON NATIONAL PARKS, HISTORIC vidual fishing quotas. DURBIN, Mr. LEAHY, Mr. FITZGERALD, PRESERVATION, AND RECREATION The PRESIDING OFFICER. Without Mr. SPECTER, and Mrs. CLINTON) sub- Mr. THOMAS. Mr. President, I would objection, it is so ordered. mitted the following concurrent resolu- like to announce for the information of SUBCOMMITTEE ON SCIENCE, TECHNOLOGY, AND tion; which was referred to the Com- the Senate and the public that an over- SPACE mittee on Foreign Relations: sight hearing has been scheduled before Mr. GREGG. Mr. President, I ask S. CON. RES. 35 the Subcommittee on National Parks, unanimous consent that the Sub- Whereas on October 7, 2000, Hezbollah Historic Preservation, and Recreation committee on Science, Technology, units, in clear violation of international law, of the Committee on Energy and Nat- and Space of the Committee on Com- crossed Lebanon’s international border and ural Resources. The purpose of this merce, Science, and Transportation be kidnapped three Israeli soldiers, Adi Avitan, Binyamin Avraham, and Omar Souad; oversight hearing is to receive testi- authorized to meet on Wednesday, May Whereas on October 15, 2000, Hezbollah an- mony on the U.S. Department of Inte- 2, 2001, at 2:30 p.m., on cloning. nounced that it had abducted a fourth rior Fiscal Year 2002 Budget Justifica- The PRESIDING OFFICER. Without Israeli, Elchanan Tannenbaum; tion for the National Park Service. objection, it is so ordered.

VerDate Mar 15 2010 03:02 Dec 20, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 J:\ODA425\1997-2008-FILES-4-SS-PROJECT\2001-SENATE-REC-FILES\RECFILES-NEW\S mmaher on DSKCGSP4G1 with SOCIALSECURITY May 2, 2001 CONGRESSIONAL RECORD — SENATE S4185 PRIVILEGE OF THE FLOOR that on Thursday, immediately fol- that the Senate can complete action on Mr. REID. Mr. President, I ask unan- lowing the prayer, the Journal of pro- the conference report prior to adjourn- imous consent that Diane Baker, a fel- ceedings be approved to date, the ing this week. morning hour be deemed expired, the low in my office, be granted floor privi- f leges during the consideration of S. 1, time for the two leaders be reserved for the Elementary and Secondary Edu- their use later in the day, and the Sen- ADJOURNMENT cation Act. ate then resume consideration of S. 1, Mr. NICKLES. Mr. President, if there The ACTING PRESIDENT pro tem- the education reform bill. is no further business to come before pore. Without objection, it is so or- The PRESIDING OFFICER. Without the Senate, I ask unanimous consent dered. objection, it is so ordered. the Senate stand in adjournment under f f the previous order. There being no objection, the Senate, ORDER FOR STAR PRINT—S.J. PROGRAM at 6:31 p.m., adjourned until Thursday, RES. 13 Mr. NICKLES. For the information of May 3, 2001, at 9:30 a.m. Mr. NICKLES. Mr. President, I ask all of our colleagues, the Senate will unanimous consent S.J. Res. 13 be star- begin full floor consideration of the f printed with the changes that are at education reform bill at 9:30 a.m. to- NOMINATIONS the desk. morrow. Amendments will be offered The PRESIDING OFFICER. Without during tomorrow’s session and there- Executive nominations received by objection, it is so ordered. fore votes will occur. If the conference the Senate May 2, 2001: DEPARTMENT OF ENERGY f report to accompany the budget resolu- tion is received from the House, the ROBERT GORDON CARD, OF COLORADO, TO BE UNDER ORDERS FOR THURSDAY, MAY 3, Senate will suspend consideration of SECRETARY OF ENERGY, VICE ERNEST J. MONIZ, RE- 2001 SIGNED. the education bill to begin consider- IN THE AIR FORCE Mr. NICKLES. Mr. President, I ask ation of the conference report. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT unanimous consent that when the Sen- Under the rule, there will be up to 10 TO THE GRADE INDICATED IN THE RESERVE OF THE AIR ate completes its business today, it ad- hours of debate with a vote on adoption FORCE UNDER TITLE 10, U.S.C., SECTION 12203: journ until the hour of 9:30 a.m. on of the budget following the use or To be colonel Thursday, May 3. I further ask consent yielding back of that time. It is hoped ROY V. BOUSQUET, 0000.

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TRIBUTE TO JOHN POWERS ON the assistance or denial of land use, zoning at its own expense to provide a valuable serv- THE OCCASION OF HIS RETIRE- and other planning approvals and entitle- ice to the community. The organization, which MENT ments. He has also drafted or reviewed and is part of the Lake County Disaster Prepared- approved many ordinances, resolutions, legal ness Committee, also teaches numerous pub- HON. GEORGE MILLER opinions, contracts and other documents es- lic education classes on boating including Ad- OF CALIFORNIA sential to the operation of the City of Vallejo vanced Coastal Navigation. In 1995, during IN THE HOUSE OF REPRESENTATIVES municipal government. the high water situation in Lake County, the Over the years, several of John’s deputies Flotilla cleared 150 tons of floating debris. Wednesday, May 2, 2001 have gone on to become well-established at- Since 1974, they have provided invaluable Mr. GEORGE MILLER of California. Mr. torneys for other cities, including William service by patrolling the annual Fourth of July Speaker, I rise today to invite my colleagues Galstan to Antioch, Chuck Lamoree to boat parade and fireworks. to join me in congratulating John M. Powers Vacaville (via a stint as Solano County Coun- The Flotilla has won the prestigious Flotilla on the occasion of his retirement as the City sel), and Michael Rousch to Pleasanton. Meritorious Achievement Award three times. Attorney for thirty years for the city of Vallejo, John has performed many forms of volun- This award recognizes that the Flotilla is the California. teer work during his tenure as City Attorney. most outstanding Flotilla in a two and a half John was born July 7, 1938, in Oakland, One of the most notable was the many hours state region. In addition, the Flotilla has re- California. He attended grammar school in he worked with the committee that renovated ceived numerous other distinctions over its Oakland, and graduated from St. Mary’s High Corbus Field at Vallejo Senior High School. thirty plus years of service. School in Berkeley in 1956. Four years later His efforts with the fundraising project to re- Mr. Speaker, it is appropriate at this time he graduated from St. Mary’s College in place the field lighting led to a fund with his that we recognize the Lake County Flotilla for Moraga, California, majoring in economics, name, ‘‘The Powers Lighting Fund’’. its unwavering commitment to making our wa- with a minor in political science. He obtained John spent many active years as a volun- terways safe for boating, and further encour- his Bachelor of Law degree from the Univer- teer with the Silverado Area Council of the aging all boat owners and operators to follow sity of California School of Law, Boalt Hall, in Boy Scouts of America, serving as Council safe boating practices at all times. Berkeley, California, in June 1963. He passed President for two terms as a member of the f the State Bar Examination in San Francisco in Executive Board. John currently is a member August 1963. Prior to engaging in the practice of the California State Bar and the Solano IN MEMORY OF AL HIBBLER of law full-time, John served with the Army on County Bar Association. He is also a member active duty from December 1963 to June of the Native Sons of the Golden West, the HON. CHARLES B. RANGEL 1964. He then became a reservist with the Executive Lions of Vallejo (where he was a OF NEW YORK California Army National Guard. charter member and past president), and the IN THE HOUSE OF REPRESENTATIVES In July 1964, John came to Solano County Order of the Sons of Italy in America. Wednesday, May 2, 2001 as a Deputy County Counsel under County John has been, and continues to be, very Counsel Jim Shumway and remained in that well respected in the City of Vallejo and So- Mr. RANGEL. Mr. Speaker, today is a bitter- position until April 1967, when he was named lano County, both in his role as a government sweet day. It is with both great sadness and assistant to County Counsel Milton G. official and as a member of the community. immense pride that I rise today in honor and Goldinger. Among other duties, John attended John’s expertise, knowledge and sense of celebration of the life of a music legend, Mr. meetings of the Board of Supervisors, rep- dedication will be deeply missed. Al Hibbler. resented the Vallejo Sanitation and Flood John lives in Vallejo with his wife of 37 Albert George Hibbler was born on August Control District and various school districts, years, Sharon. They have three adult children: 16, 1915 in Tyro, Mississippi. At the age of along with the Sheriff, Assessor, Tax Col- Rhonda, Lisa, and Michael; and two grand- twelve he moved to Arkansas and entered lector, and Judges. He also once represented children, Jack and Joe. school for the first time when he was fourteen the Solano County Community College Dis- I know I speak for all the members when I years old. Blind since birth, Al Hibbler studied trict. wish John M. Powers a very happy and health voice at the Conservatory for the Blind in Little John Powers was appointed Vallejo’s first retirement, and when I thank him for the many Rock and sang in the choir as a soprano. Four full-time, in-house City Attorney in March, contributions he has made to our community. years later his voice deepened to his signature 1971. Some of his accomplishments include f eloquent baritone. Hibbler became the first actively participating in the numerous trans- blind artist to achieve significant popularity as actions relative to the conversion and reuse of IN RECOGNITION OF NORTH an entertainer. the former Mare Island Naval Shipyard; rep- AMERICAN SAFE BOATING WEEK After leaving the Conservatory, Mr. Hibbler resenting the City of Vallejo in litigation chal- started singing the blues in roadhouses, but lenging the relocation of Marine World/Africa HON. MIKE THOMPSON shortly thereafter realized his first love was USA (now Six Flags Marine World) from Red- OF CALIFORNIA soft smooth ballads. He sang with local bands wood City to Vallejo that resulted in a stipu- IN THE HOUSE OF REPRESENTATIVES throughout Arkansas and Texas until 1942 lated settlement after the Court denied peti- when he landed a major break with Jay tioners’ application for injunctive relief, and Wednesday, May 2, 2001 McShann’s band in the 1940’s. Eighteen preparing the contract between the City of Mr. THOMPSON of California. Mr. Speaker, months later Hibbler’s dream of becoming a Vallejo and the Vallejo City Unified School I rise today to recognize North American Safe big band singer came to fruition when he District providing for the financing arrange- Boating Week which will be celebrated auditioned and was hired as lead singer for ments for the renovation of Corbus Field at throughout the United States on May 19th the Duke Ellington Orchestra. He remained Vallejo Senior High School. He also provided through May 25th, 2001. with the Duke Ellington Orchestra for eight legal services including review of articles of in- In particular, I would like to recognize one years until he went out on his own achieving corporation and by-laws, and assistance with organization that has continually promoted enormous success. organization of the board of directors for the safe boating in California. This organization is During his musical career, Hibbler had a formation of VALCORE (Vallejo Community the Lake County Coast Guard Auxiliary Flotilla number of hit songs including, ‘‘Do Nothing Organizations Recycling) in 1981, and the 38 which is in the First Congressional District. Until You Hear From Me’’, ‘‘Unchained Mel- Mare Island Historic Park Foundation. John The all-volunteer Flotilla was charted on May ody,’’ ‘‘He’’, ‘‘11th Hour Melody’’, ‘‘After the has represented the City of Vallejo and its var- 3, 1969. Lights Go Down Low’’, ‘‘Honeysuckle Rose’’, ious officers and employees in personal injury By patrolling Lake County with up to six ‘‘All or Nothing at All’’, ‘‘Don’t Get Around Any- and civil rights litigation and lawsuits involving vessels at once, this volunteer group operates more’’, and ‘‘The Very Thought of You’’.

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

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00001 Fmt 0626 Sfmt 9920 E:\CR\FM\A02MY8.000 pfrm04 PsN: E02PT1 E696 CONGRESSIONAL RECORD — Extensions of Remarks May 2, 2001 As a man of great consciousness, in the ALTRUSA INTERNATIONAL search in international law. He also served as late fifties he turned his attention to the civil Division Legal Officer for the Third Marine Di- rights movement and was arrested twice dur- HON. THOMAS H. ALLEN vision on Okinawa and in Japan; Acting Direc- ing protest marches. These acts of courage OF MAINE tor of the Appellate Defense Division in Wash- scared away major record labels, but with the IN THE HOUSE OF REPRESENTATIVES ington; Command Legal Officer, Staff Legal assistance of Frank Sinatra he was able to Officer in Senior Commands; and Acting Legal Wednesday, May 2, 2001 sign a contract with the Reprise Record label Officer of the Sixth Naval District. in the early sixties. Mr. ALLEN. Mr. Speaker, on April 23, 2001, In addition to his distinguished legal career, Altrusa International, Inc. of Greater Biddeford- Commander Bolton was a great humanitarian. Although, with the introduction of rock and Saco, Maine, USA, celebrated its 25th anni- During his stay in Japan, he became very ac- roll his career as a jazz recording artist versary of service to its communities. This tive in the plight of the children at the Cushin slowed, he performed through the Nineties. service group consists of professional women Gakuen Orphanage. After visiting the orphan- Mr. Speaker, I ask that all my colleagues and men from the congressional district who age, he found the children and the facility in join me in celebrating the life and the music of have generously volunteered their energies great need. He worked hard to raise the funds Al Hibbler, a jazz legend that gained success and expertise in a wide variety of worthy ac- needed for clothing and medical supplies for against all odds. tivities. the orphans and to repair the facility housing Many of their projects have emphasized lit- the children. Through this experience, Com- f eracy, including ‘‘A Mile of Books,’’ which lit- mander Bolton became an advocate for the erally offered a mile of books for children in children of the Cushin Gakuen Orphanage and TRIBUTE TO VALERIE KNAPP, RA- Head Start to take home and keep. They also helped to improve their social development CHEL KENNEDY AND AMANDA provide financial assistance to ‘‘Literacy Volun- through commitment of his time during non- HANDRICH teers’’ and work with families through ‘‘First duty hours. Commander Bolton was cited by Teachers,’’ a program designed to improve the the Japanese government for efforts on behalf literacy skills of entire families. In addition, the of Japanese children. HON. RAY LaHOOD group has helped innumerable people in the Mr. Speaker, Commander Bolton is now 90 community through its hospice volunteers, years old and his distinguished career has OF ILLINOIS knitters group, meal program for the home- been an inspiration to countless individuals IN THE HOUSE OF REPRESENTATIVES less, and financial support for the area’s bat- and his humanitarian efforts touched the lives tered women’s shelter and YMCA. of so many. Our nation thanks him for his Wednesday, May 2, 2001 This incomplete list of the many projects of service. f Mr. LAHOOD. Mr. Speaker, today I would Altrusa International, Inc. of Greater Biddeford- like to salute three outstanding young women Saco illustrates the depth and breadth of its A TRIBUTE TO RICHARD M. who have been honored with the Girl Scout members’ involvement in the community. At a TYNDALL Gold Award by Girl Scouts-Kickapoo Council time when few Americans seem to find the in Peoria, Illinois. They are Valerie Knapp, Ra- time or interest to share the joys and burdens of their fellow citizens, this selfless engage- HON. MIKE McINTYRE chel Kennedy, and Amanda Handrich. They OF NORTH CAROLINA ment is most heartening. These volunteers are being honored on May 6, 2001 for earning IN THE HOUSE OF REPRESENTATIVES have learned firsthand that giving of them- the highest achievement in U.S. Girl Scouting. selves is the greatest gift of all. Wednesday, May 2, 2001 The Girl Scout Gold Award symbolizes out- Mr. MCINTYRE. Mr. Speaker, I rise today to standing accomplishments in the areas of f pay tribute to Richard Melvin Tyndall of leadership, community service, career plan- TRIBUTE TO COMMANDER DAVID Roseboro, North Carolina for his distinguished ning, and personal development. The award BOLTON, SR. service and courageous leadership on behalf can be earned by girls aged 14–17, or in of the citizens of this great nation. grades 9–12. HON. CARRIE P. MEEK As a World War II veteran, Richard Tyndall Girl Scouts of the U.S.A., an organization OF FLORIDA is an excellent example of all the men and serving over 2.5 million girls, has awarded IN THE HOUSE OF REPRESENTATIVES women in uniform that have sacrificed to de- more than 20,000 Girl Scout Gold Awards to Wednesday, May 2, 2001 fend the values this nation holds dear. With Senior Girl Scouts since the inception of the over two years on the front line in England, program in 1980. To receive the award, a Girl Mrs. MEEK of Florida. Mr. Speaker, I rise Tunisia, and Germany, he received seven Bat- Scout must earn four interest project patches, today to pay a special tribute to the out- tle Stars from the United States Army and the the Career Exploration Pin, the Senior Girl standing military career of Commander David Le Croux De Gout Honor by the French Army Scout Leadership Award, and the Senior Girl Bolton, Sr. I am proud to recognize Com- for his integrity and courage. Scout Challenge, as well as design and imple- mander Bolton for his exceptional military Richard Tyndall’s valiant actions and his ment a Girl Scout Gold Award project. A plan service to our country and for his humanitarian outstanding service to this nation serve to re- for fulfilling these requirements is created by achievements. mind us of the gratitude we all feel toward this the Senior Girl Scout and is carried out During his career Commander Bolton was brave individual, along with all other service- through close cooperation between the girls known as hard working, conscientious in his men and women who have served as guard- and an adult Girl Scout volunteer. profession, highly intelligent, keenly alert, pro- ians of this great country. gressive, firm in his convictions, and conge- President John F. Kennedy once said, ‘‘For Valerie Knapp began working toward the nial. He was truly a credit to the military and those to whom much is given, much is re- Girl Scout Gold Award in 1999. She com- to our country. quired. And when at some future date when pleted her project by planning and imple- Commander Bolton retired from the Depart- history judges us, recording whether in our menting a campout for 5th and 6th grade girls. ment of Navy with an honorable discharge on brief span of service we fulfilled our respon- Rachel Kennedy began working toward the September 1, 1964 after serving 22 years. sibilities to the state, our success or failure, in Girl Scout Gold Award in 2000. She com- During his career he received numerous deco- whatever office we hold, will be measured by pleted her project by helping her youth group rations including the World War II Victory the answers to four questions: First, were we plan and implement a Vacation Bible School Medal, and American Theater Ribbon, and truly men of courage . . . Second, were we for children in Houston, Texas. National Defense Service Medal. Upon his re- truly men of judgment . . . Third, were we tirement from military service Commander truly men of integrity . . . Finally, were we Amanda Handrich began working toward the Bolton received an Individual Citation for out- truly men of dedication?’’ Girl Scout Gold Award in 1997. She com- standing performance of legal duties while in Richard Tyndall can truthfully answer each pleted her project by providing clothing and the Navy from the Secretary. of these questions in the affirmative. He is in- toys for Christmas for less fortunate children. Commander Bolton was an attorney deed a man of courage, judgment, integrity, Mr. Speaker, I believe these three young throughout his career and served as Judge and dedication. May the actions of this brave women should be given the public recognition Advocate for war crime trials. He prosecuted individual live on in our hearts, and may God’s due them for their significant service to their Japanese war criminals, investigated war strength and peace always be those who have communities and their country. crimes cases and conducted extensive re- fought for this great nation.

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00002 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.004 pfrm04 PsN: E02PT1 May 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E697 HONORING NATIONAL NURSES world has pledged to uphold them. Yet many at Loyola University of New Orleans, where WEEK governments, including our own, too often turn his tenure included service as acting presi- a blind eye when these fundamental rights are dent. HON. MIKE THOMPSON violated. He brings to the Wheeling campus the ben- OF CALIFORNIA Too many workers around the world face il- efits of his experience at these institutions, as IN THE HOUSE OF REPRESENTATIVES legal firings, death threats and even assas- well as personal qualities which include a high sination when they try to utilize their freedom level of enthusiasm, a commitment to the en- Wednesday, May 2, 2001 of association by joining a union. Last year richment of young minds, and a passion for Mr. THOMPSON of California. Mr. Speaker, alone, more than 100 union leaders in Colom- service to the greater community. I rise today to recognize the 2.7 million reg- bia were murdered, and the Colombian gov- These qualities were evidenced in the re- istered nurses in the United States. I encour- ernment has granted the perpetrators of these marks that Father Lundy delivered March 16 age our nation to join me in celebrating their assassinations virtual impunity. Closer to at his inauguration ceremony. His words were dedication and commitment to the health care home, every year an estimated 10,000 Amer- a source of insight into the challenges that needs of America during National Nurses ican workers are fired just for exercising their face modern educational institutions, and the Week. This year it begins on May 6 and ends right to join a union. commitments that they must meet if they are on May 12, which is Florence Nightingale’s Long after the abolition of slavery, forced to succeed in today’s world. birthday. labor has now resurfaced in the global econ- Therefore, I submit Father Lundy’s inaugural Professional nurses are an indispensable omy. Too many women and men are tricked speech to be included in the CONGRESSIONAL component in the safety and quality of care of into debt schemes and then forced into inden- RECORD. hospitalized patients. The depth and breadth tured servitude, as we continue to see hap- The remarks follow: of the nursing profession consistently meet the pening under the American Flag in places like First, I’d like to thank all of you for tak- different and emerging health care needs of the Northern Marina Islands and most recently ing so much time out of your busy schedules the American population in a wide range of in American Samoa. And let us be clear: these to join this great celebration today. Cer- settings. These settings include hospitals, kinds of abuses, deceptive labor practices, tainly, it’s a personal celebration for me, but even more so, I think it’s a celebration for home care, clinics, offices, extended care cen- often involving foreign nationals seeking to im- the entire Wheeling Jesuit University com- ters, schools, military service, corporations, prove their lives by migrating to the United munity, the city of Wheeling, and the Dio- and hospice among others. Indeed, our nurses States, are not uncommon on the U.S. main- cese of Wheeling-Charleston. touch all of our lives in a positive way. land, either. It’s very humbling, too, to think of all of National Nurses Week was first celebrated Too many children still spend their days in the hoopla that is paid when we inaugurate in 1954 on the 100th anniversary of Florence front of a sewing machine instead of in front new presidents. I was reminded of Jimmy Nightingale’s mission to Crimea. Nurses have of a desk in a school. And too many com- Carter’s idea when he was running for Presi- continually been recognized for their out- pletely qualified individuals are still fired simply dent, that the teachers ought to get more pay than the principals because they do the standing contributions to the American health because of their race, sex, age, religion or work that is so much more important, and I care system ever since. Nurses today rep- sexual orientation. certainly feel that way about our fine fac- resent women and men from all walks of life, Our challenge is to actually enforce the fun- ulty here at WJU. So, this is for all of us. and reflect the people who live in the commu- damental, rights that have been agreed to by It is a time when we collectively renew a nities that they serve. Employment among all of the member nations of the ILO. And the number of commitments that are very much nurses will grow faster than the average for all first step in enforcement is ensuring that work- a part of the fabric and the genius of our his- occupations through 2006, and nurses will be- ers, employers and communities across the tory. First, we renew our commitment to all globe are aware of the fundamental labor of our students, to provide you with a great come increasingly important as the demo- education in the Catholic and Jesuit tradi- graphics of our country change dramatically in rights. That is why I rise today in favor of the tions. We challenge you to read real books, coming years. ILO’s global campaign to hang this poster, to your own deep understanding of our world, The theme of this year’s week is ‘‘Nurses which simply lists the four core labor stand- its past and its present, so that you can help are the True Spirit of Caring.’’ The theme ards, in every workplace in every country of shape it in the future. We challenge you to could not be more appropriate. These individ- the world. deepen your values of justice and compas- uals blend a scientific mind, technological This poster alone is not a substitute for sion, your abilities to choose wisely, and know-how, compassionate heart, and helping trade agreements that enforce the core labor your skills to communicate with clarity and passion. hands in their day-to-day caring of patients. standards, but it is an important start. Those We will continue to care deeply for each of Mr. Speaker, it is appropriate at this time multinational corporations that subject their you as a unique human being and encourage that we recognize and celebrate National employees to poverty wages and dangerous you to see in every person a child of God Nurses Week with America’s 2.7 million working conditions are only going to change with dignity, hopes and dreams. We pray nurses. These special individuals truly do em- those practices when all of their employees that you will develop a passion for what we body the spirit of caring. know about these rights and have the ability to Jesuits call a preferential option for the poor, so that you will graduate with a com- f demand them within the legal process. mitment and the skills to help the least ad- f RESPECT FOR ILO CORE LABOR vantaged among us realize their hopes and STANDARDS IN THE GLOBAL REMARKS DELIVERED BY THE dreams. ECONOMY REV. GEORGE F. LUNDY, S.J., ON And, of course, it is not enough to renew that commitment without sharing a few HIS INAUGURATION AS PRESI- things with our visitors that you are already HON. GEORGE MILLER DENT OF WHEELING JESUIT UNI- doing. We recognize the students who went OF CALIFORNIA VERSITY down to Moorhead, Kentucky, over break to IN THE HOUSE OF REPRESENTATIVES build houses, and the students who live in HON. ALAN B. MOLLOHAN the Mother Jones house downtown and work Wednesday, May 2, 2001 extensively in the community, student OF WEST VIRGINIA teaching in the social services centers, the Mr. GEORGE MILLER of California. Mr. IN THE HOUSE OF REPRESENTATIVES Speaker, I rise today in support of efforts of soup kitchen and much more. Just a few ex- Wednesday, May 2, 2001 amples of the ways that our students are en- the International Labor Organization (ILO) to gaged, and we believe that this kind of inte- ensure that the core labor standards are ap- Mr. MOLLOHAN. Mr. Speaker, I recently gral education is the kind that represents plied and enforced in every workplace around joined the Wheeling Jesuit University commu- our best hope for future leadership. the world. The international community has nity in celebrating the inauguration of the Rev. Every time I talk about the high idealism defined these four core labor standards: (1) George F. Lundy, S.J., as the university’s sixth of Jesuit education, I am reminded of what freedom of association and collective bar- president. It was a pleasure to help welcome one former Provincial said at the big Jesuit gaining; (2) prohibition of forced labor; (3) pro- this thoughtful, highly regarded educator to the higher ed gathering at Georgetown a number of years ago. He said, ‘‘you know, all this hibition of child labor; and (4) prohibition of Wheeling Jesuit campus. lofty stuff about high idealism is great, but workplace discrimination. Father Lundy’s leadership of Wheeling Jes- what you have to remember is that the rea- These labor standards are the most basic uit University follows successful assignments son Jesuit schools got started was because and fundamental rights of workers every- at the University of Detroit Mercy, where he there was this tremendous need for some- where, and almost every government in the was academic vice president and provost, and body to take care of unruly boys.’’

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00003 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.008 pfrm04 PsN: E02PT1 E698 CONGRESSIONAL RECORD — Extensions of Remarks May 2, 2001 Of course, now it’s boys and girls and for able intellectual property. So this research ment security for working Americans, but also the most part, not unruly at all, but very im- can be copyrighted, it can be patented, it can provided us with future funding for the Social pressive young men and women. be, therefore, used in business development. Security trust fund. Today, we are proud also to renew our And that is the main thing that happens in commitment to the Diocese of Wheeling- that big building you see that says ‘‘Robert f Charleston and the Diocese of Steubenville, C. Byrd National Technology Transfer Cen- HONORING CORINE YBARRA Ohio, which includes all of the area just to ter.’’ That is their big job—getting that re- our west. We are committed to partner with search back out to people that can use it for Catholic communities all across the region business development. HON. SOLOMON P. ORTIZ to help as creatively and effectively as we The other center that we have, the Erma OF TEXAS can, in the ministries of Catholic education Ora Byrd Center for Educational Tech- IN THE HOUSE OF REPRESENTATIVES and leadership development. I am so proud of nologies, produces educational software for Wednesday, May 2, 2001 the many, many ways that so many of our use in teaching mostly math and science to faculty and staff are already involved by students in the K–12 schools. They have sev- Mr. ORTIZ. Mr. Speaker, I rise today to pay serving on the boards of many service activi- eral award-winning products and they also tribute to a pioneer and a patriot, Corine ties, and as leaders in their parishes, Catho- do on-campus training of teachers in the Ybarra, whose work was part of the massive lic and non-Catholic. But the focus of this whole area of what they call problem-based effort on the part of the United States Govern- commitment needs to be renewed. learning. ment to thwart the problems we anticipated Bishop Schmitt, just last year, completed Problem-based learning places learners in with conversions in our national computer sys- a very successful synod planning process a specific situation and requires them to that focused the goals of the Diocese very tems at the dawn of the year 2000. draw on everything they know from many I ask my colleagues to join me in com- clearly, and we’re very proud to be involved disciplines to solve a problem. The CET also with the follow-up to that process to help works closely with our Challenger Learning mending the work of Corine Ybarra, who was make sure that this renewed vision actually Center. You may have noticed that we al- the recipient of a Small Business Administra- happens. ways have a few buses on this campus. We tion (SBA) medal crafted to honor efforts asso- Today, we also renew our commitment to have school groups coming in to fly the Chal- ciated with Y2K, the President’s Council on our local and regional communities, to be a lenger missions. Those are space mission Year 2000 Conversion. good institutional citizen and to participate simulations. Some of the kids are in the con- Mrs. Ybarra has consistently exhibited the in the activities of our area. I am contin- trol room and some of the kids are up in the ually amazed and edified when I hear from so qualities of a professional throughout the cockpit of the rocket and they encounter course of her career in computer technology. many of you how appreciative you are of the certain kinds of problems with the flights many ways that the members of this Wheel- She began as an intern 30 years ago in Hous- and they analyze certain kinds of satellite ton with the United States Small Business Ad- ing Jesuit community participate in service data about what they see on the Earth. to your organizations in so many different There again, in that sort of simulated envi- ministration. She was then transferred to Dal- ways. We are proud to join with Mayor ronment, they have to solve a whole bunch las and eventually relocated for the final time Sparachane in contributing to the city’s eco- of problems that draw upon their knowledge back to Harlingen. nomic development efforts. We are proud to of math and science and other disciplines. As a result of consistently pursuing her edu- join hands with our fellow religious con- It’s a great way of learning and our studies cation, Mrs. Ybarra’s responsibilities, as well gregations of every denomination and tradi- have shown that the learning outcomes are as her position gradually expanded. She met tion in the Hopeful City coalition. We are just fabulous if you can teach in these kinds equally proud to be involved in the commu- the challenges associated with her responsibil- of simulated environments. So, we are mov- ities with the tenacity and professionalism we nity renewal efforts of the Chamber of Com- ing that whole product into distance deliv- merce, the Ohio Valley Industrial and Busi- are celebrating today. ery. They are going to do 180 of those this Eventually, Mrs. Ybarra realized the goal of ness Development Corporation, and through year over the Internet and we believe that our membership in Project Best, which we are refining something that could be a her professional pursuit—she became a com- assures that collective bargaining is in- very forceful new national model in improv- puter specialist. She sought such a position volved in all of our construction projects. ing education for our younger students. because she knew it was central to our econ- Today we renew our commitment to our So as I have told Senator BYRD and Con- omy and our government . . . it was eventu- public partners at the federal, state and local gressman MOLLOHAN on previous occasions, ally central to the efforts of SBA’s preparation levels. New technologies reflect much human the opportunities represented by these tech- creativity, and we have the opportunity to for Y2K. She overcame the challenge of Y2K nology centers for economic development help translate that creativity into new vi- with grace, poise and success. and the improvement of American edu- sions for a better life and a stronger econ- Mrs. Corine C. Ybarra is not only a pioneer cation, were part of the reason that I was omy in our post-industrial, increasingly for the field of computer technology but a grateful to accept the Board’s invitation to knowledge-based economy. In the coming model citizen for us all. Through her efforts come here as your new president. I have months and years we will translate these op- thoroughly enjoyed the faculty, the staff, she creates a pleasant and productive working portunities into new economic vitality here and the students. This is a very friendly, a environment. in our own region. very caring, community and I am proud to I ask the House of Representatives to join We shall also do our part to continue im- be among your number. me today in commending Corine Ybarra for proving education by developing new cur- her outstanding contribution to the stability of ricula for students in our K–12 schools, and f by helping teachers use technology more ef- our business community. fectively to help students learn. Congress- TRIBUTE TO BRIGEN WINTERS f man Mollohan made the remark that there are probably no other universities this size REINTRODUCTION OF THE in America that have been entrusted with so HON. WILLIAM M. THOMAS OSTEOPOROSIS EARLY DETEC- much responsibility in terms of fulfilling the OF CALIFORNIA TION AND PREVENTION ACT public purpose. IN THE HOUSE OF REPRESENTATIVES I get questions about what goes on in those Wednesday, May 2, 2001 HON. CAROLYN B. MALONEY shiny glass and brick buildings on campus. I OF NEW YORK think it is worth it for all of us to reflect on Mr. THOMAS. Mr. Speaker, I would like to IN THE HOUSE OF REPRESENTATIVES a couple of the big points regarding those recognize the outstanding work of a member federal projects. The story goes that when of my staff. Brigen Winters, tax counsel to the Wednesday, May 2, 2001 Lyndon Johnson was president, he turned Committee on Ways and Means, has worked Mrs. MALONEY. Mr. Speaker, I would like one day to an aide and said, ‘‘Son, all of this money that we are spending on research, long and hard on this pension reform legisla- to address an important health care concern how much of it ever benefits the taxpayers in tion. His knowledge, his diligence, and his that effects nearly 30 million Americans. It is economic development?’’ And the answer judgment have been of tremendous assistance especially appropriate that I rise today be- was, ‘‘Well, none of it Mr. President because to me and the other Members of the Com- cause May is Osteoporosis Prevention Month. all federally funded research is in the public mittee. Osteoporosis is a disease characterized by domain. It can’t be privately owned and Brigen could not be with us today. He is low bone mass or brittle bones. The statistics therefore it doesn’t have any commercial presently at the hospital with his wife, Jennifer, are startling. For instance, 71 percent of value.’’ And so, several successive presidents and his newborn son, John Brigen ‘‘Jake’’ women with osteoporosis are not diagnosed, worked on that problem and in 1980, laws Wiinters. Jake was born early yesterday morn- leaving them at increased risk for fractures. were passed that enable the benefits of feder- ing. Both Jennifer and Jake are doing well. I Osteoporosis causes 300,000 new hip frac- ally funded research to go back to the tax- congratulate Brigen and his growing family. tures each year. Less than one-third of pa- payers in the form of commercially develop- Brigen has not only helped us improve retire- tients fully recover from a hip fracture and only

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00004 Fmt 0626 Sfmt 9920 E:\CR\FM\A02MY8.012 pfrm04 PsN: E02PT1 May 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E699 one in five persons who suffer a hip fracture Members to join me in my support of this bill. Illinois: U.S. ex rel. Ford v. Ahitow, 888 will survive more than a year. The costs asso- Let’s do what we can to put an end to this dis- F.Supp. 909 (C.D.Ill. 1995), and lower court ciated with this disease are in excess of $13.8 ease. decision, People v. Ford, 581 N.E.2d 1189 (Ill.App. 4 Dist. 1991). People v. Campos, 592 billion annually. With an aging population, f N.E.2d 85 (Ill.App. 1 Dist. 1992). Subsequent costs and disability are only expected to esca- history: appealed denied, 602 N.E.2d 460 (Ill. late. It is time that we did something about it. UNBORN VICTIMS OF VIOLENCE ACT OF 2001 1992), habeas corpus denied, 827 F.Supp. 1359 Today, joined by Congresswoman MORELLA, (N.D.Ill. 1993), affirmed, 37 F.3d 1501 (7th Cir. I have re-introduced, with strong Congres- 1994), certiorari denied, 514 U.S. 1024 (1995). SPEECH OF sional support, the ‘‘Osteoporosis Early Detec- Louisiana: Re double jeopardy—State v. tion and Prevention Act of 2001.’’ Senators HON. JOHN N. HOSTETTLER Smith, 676 So.2d 1068 (La. 1996), rehearing de- nied, 679 So.2d 380 (La. 1996). TORRICELLI and SNOWE re-introduced the com- OF INDIANA Minnesota: State v. Merrill, 450 N.W.2d 318 panion bill in the Senate. This bill would IN THE HOUSE OF REPRESENTATIVES (Minn. 1990), cert. denied, 496 U.S. 931 (1990). amend the Public Health Service Act and Em- Thursday, April 26, 2001 Re establishment clause—State v. Bauer, 471 ployee Retirement Income Security Act of N.W.2d 363 (Minn. App. 1991). 1974, requiring private insurers to reimburse Mr. HOSTETTLER. Mr. Speaker, I rise in Missouri: State v. Holcomb, 956 S.W.2d 286 for bone mass measurement. strong support of H.R. 503, the Unborn Vic- (Mo. App. W.D. 1997). My bill requires private health insurance tims of Violence Act and oppose the Lofgren Ohio: State v. Coleman, 705 N.E.2d 419 plans to cover a bone mass measurement test one-victim substitute. (Ohio Ct. App. 1997). for qualified men and women who are at risk This bill is really a simple one. It states that Wisconsin: Re due process—State v. Black, if a criminal, in his attack on a pregnant 526 N.W.2d 132 (Wis. 1994) (upholding earlier for developing osteoporosis. Bone mass statute). measurement is a non-invasive, painless and women, injures the child also, than that crimi- reliable way to diagnose osteoporosis before nal should be held responsible for his attack costly fractures occur. The average cost to on both individuals. STATEMENT OF MICHAEL LENZ BEFORE THE SUBCOMMITTEE ON THE CONSTITUTION HEAR- treat one hip fracture is $32,000, while a sim- As a father myself, I have witnessed peo- ple’s reaction to my wife’s pregnancy. They do ING ON H.R. 2436; THE UNBORN VICTIMS OF ple bone density test costs an average of VIOLENCE ACT OF 1999, JULY 21, 1999 $250. Bone density is the most efficient and not ask if we hope that our product of concep- tion will continue in pregnancy without inter- Committee members, I would like to give predictive method for determining whether an you some background on myself and my late individual is at risk for future fracture. ruption. No, they ask questions like ‘‘Is it a boy wife Carrie Lenz. Building strong bones can be the best de- or a girl?’’; ‘‘Have you picked out a name for We met in the spring of 1986. I had recently fense against developing osteoporosis later in your baby yet?’’ ‘‘Are your other children look- moved from the City of Tulsa to Oklahoma life. Women and men are encouraged to eat ing forward to their new brother or sister?’’ City. Carrie was a high school senior at a balanced diet rich in calcium and vitamin D, You see, Mr. Speaker, they recognize what Moore, OK. We began dating, she graduated to exercise and lead a healthy lifestyle. How- should be obvious to all. They recognize what high school and went on to College, and I took a job back in Tulsa and then in Ponca ever, because many Americans are unaware our Founding Fathers thought obvious. In fact, they called it ‘‘self evident’’ that our Creator City. All the while, we maintained our rela- that they are at risk for contracting this debili- tionship. I eventually took a job that re- tating disease, early detection is even more has endowed everyone with this unalienable quired extensive travel around the country, critical and can be a matter of life or death. If right. and although it was difficult at times, our we can identify those at risk, we can reduce Its inconsistent and hypocritical that federal long distance relationship worked because pain, suffering, and billions of dollars in health law fails to recognize crimes against the pre- we were both committed to the same ideas care expenditures. According to the National born as just that . . . crimes. I see no valid and goals. (Our plan) First, she would grad- Osteoporosis Foundation, a recent study of legal or moral difference between committing uate from college. I would get promoted over a crime against an individual one day prior to the State of Oklahoma. Then we would get 1,162 women age 55 years and older who had married, and when we thought we were men- broken their wrists found that fewer than one- birth and one day after. We hear stories like that of Ms. Pace, who was assaulted one day tally and financially prepared, we would fourth of them had received a bone density di- have children. agnostic test or a medication approved for before her due date. Her boyfriend had paid While Carrie was attending college, she osteoporosis treatment after the fracture. More hit-men $400 for the express purpose of killing took a part time position with the Alcohol, women and men must be tested. the child, not her. Did he hire them to kill a Tobacco and Firearms under the Stay in The Osteoporosis Early Detection and Pre- ‘‘product of conception’’? No, he hired them to School program. As the Oklahoma City ATF vention Act of 2001 is needed because by the kill a baby for whom he did not want to be re- office grew, their need for a full time posi- sponsible. tion grew as well. Carrie then transferred to time men and women, but especially women, a position with the U.S. Secret Service Ad- come of age to enter the Medicare program, Rightfully, we find ourselves outraged at sto- ries of child abuse and neglect . . . Stories of ministration under the same program until it is often too late. Medicare covers bone den- she graduated from college. After gradua- sity testings, but many private health insur- babies being beaten and abandoned by their tion, she accepted a position with the Drug ance plans do not. It is extremely important parents. Yet those on the other side would Enforcement Administration through EBON, that we target individuals at the age of meno- have us believe that an assailant should face a company contracted with the Department pause, before they begin excessive bone loss. no penalty for the willful killing of the same of Justice to assist in the Asset Forfeiture We do not want to continue to lose hundreds child before birth. program. Since her first job with Federal If an assailant, while in the commission of a Law Enforcement, Carrier and I were always of thousands of individuals to this disease. extremely proud to be a part, albeit a small Currently, many private insurance compa- federal crime, harms a baby then he should be responsible for the harm caused to that part, of our government. nies do not reimburse for bone mineral density Our plans all came together in the fall of exams. Others severely limit access to the baby. Its really that simple. For most Ameri- 1991 (September 14) when we were finally technology by requiring physicians to refer cans it’s common sense. Unfortunately, what married. Married * * * Yes. Financially their patients out to large imaging centers. would otherwise make perfect sense gets lost ready to raise a family? Not yet. That didn’t These insurance companies are preventing here in Washington. come until 1993. Seven years after we first those at risk from being screened. We need to Mr. Speaker I urge my colleagues to sup- met, we believed we were finally ready to start our family. require insurers to provide access to the tech- port the underlying bill and reject the Lofgren amendment. I’m telling you all of this to give you some nology so we can identify those at risk. The background on our relationship and our number of individuals who will benefit from this CONSTITUTIONAL CHALLENGES TO STATE goals, and maybe to give you some insight technology is significant. In the U.S. today, UNBORN VICTIMS LAWS on what it might be like to have a seven- eight million women and two million men have (All challenges were unsuccessful. All chal- year plan blown up in your face. osteoporosis and 18 million more have low lenges were based on Roe v. Wade and/or de- We began trying to have children 1993. bone mass, placing them at risk for this dis- nial of equal protection, unless otherwise After several months with no success, we ease. The primary care physician should have noted.) sought assistance from a fertility doctor who California: People v. Davis, 872 P.2d 591 put Carrie on some medication, and we con- the means to adequately screen for this dis- (Cal. 1994). tinued our efforts at beginning a family. We ease. The technology is there. Georgia: Smith v. Newsome, 815 F.2d 1386 no success, in early 1994 the doctor rec- So to mark Osteoporosis Prevention Month (11th Cir. 1987). Related state supreme court ommended exploratory surgery, which she and to save thousands upon thousands of decision: Brinkley v. State, 322 S.E.2d 49 (Ga. under went. A few months later, she in- Americans from suffering, I urge my fellow 1984) (vagueness/due process challenge). formed me that she was pregnant. We were

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00005 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.017 pfrm04 PsN: E02PT1 E700 CONGRESSIONAL RECORD — Extensions of Remarks May 2, 2001 so thrilled, but our excitement would not people lost their lives that day, and three Frank Conte, served with the Port Authority last long. With weekly monitoring, the doc- ‘‘Daddies to be’’ became widowers. Police. Three cousins are also police officers: tor discovered Carrie had an ectopic preg- Thank You for your time. Michael James Bill Lennon, Ed Smith and Bill Opel. nancy and that the fetus had died. In Novem- Lenz, Jr. ber of that same year, Carrie again informed As president of the State Police Fraternal me that she was pregnant, and we both f Association, Ed has most ably represented the interests and concerns of his membership as prayed that this would prove a better preg- TRIBUTE TO REV. LEON SULLIVAN nancy that the first. The doctor confirmed they seek to deal with the every-more com- our hope by telling us everything appeared plicated issues facing law enforcement in this to be healthy and normal at our first HON. EDDIE BERNICE JOHNSON day and age. ultrasound. OF TEXAS Ed enlisted in the New Jersey State Police In the months that followed, we prepared our home for the new baby. We purchased a IN THE HOUSE OF REPRESENTATIVES in 1977 and has served with great distinction changing table and baby bed, and Carrie was Wednesday, May 2, 2001 since then throughout New Jersey in many ca- trying to get the nursery ready when we de- pacities. cided it would be easier if we knew the sex of Ms. EDDIE BERNICE JOHNSON of Texas. Because of his prominence and expertise, our child. We didn’t have a set name if the Mr. Speaker, we are here today to pay tribute he has been appointed to many commissions child was a girl, but if we were having a boy, to a great American, Rev. Leon Sullivan who and advisory boards including commissioner we had both agreed his name would be Mi- passed away on April 24th. Reverend Sullivan on the Governor’s Commission to Deter Crimi- chael James Lenz, III. So on the afternoon of was a businessman, an activist, and an edu- nal Activity, trustee in NJ SEED (Society for April 18, 1995, we met at the hospital for an cator who was responsible for leading inter- additional ultrasound to determine the sex Environmental and Economic Development); national efforts to promote nonviolent social board of directors of the National Troopers of our baby. Carrie was so nervous. As I held and economic change. her hand, the pictures on the monitor came Coalition, and Occupational Safety and Health into view. The heart beat, a little hand and Dr. Sullivan is best known as the author of Advisory Board of the Department of Labor. arm, and then you could see the face of our the Sullivan Principles, a set of guidelines for In honoring Edward Lennon, the Friendly child. Finally the baby moved a little, and American businesses operating in South Africa Sons are honoring all law enforcement officers the nurse said ‘‘Congratulations! You’re hav- under the apartheid regime. Although later in New Jersey—individuals who on a daily ing a boy!’’ We looked at each other and said largely superseded by the divestment move- basis put their lives on the line to protect the simultaneously, ‘‘Michael James Lenz, III.’’ ment, these principals laid an ethical founda- He had his name. Then, with a kiss and ‘‘I rest of us. Congratulations Ed, we appreciate tion for businesses practices in the inter- you greatly and thank you heartily. Love You,’’ I left the room. We were so national arena. happy we even paid for extra ultrasound pic- f tures to show off. When we arrived home The success of the Sullivan Principles that evening, we called all of our friends and abroad were matched by the success of Rev- ALBANIANS IN MACEDONIA relatives to tell them the news. We didn’t erend Sullivan’s activities at home. In 1964, know it at the time, but that would be the Sullivan founded a job training program called HON. JAMES A. TRAFICANT, JR. last time Carrie spoke to the people she Opportunities Industrialization Center (OIC). loved most. Today, more than 80 OIC’s exist across the OF OHIO The next the morning Carrie, who was usu- country. The programs have trained more than IN THE HOUSE OF REPRESENTATIVES ally 15 to 20 minutes late to work, left the house early to show everyone at work the 2 million people. Wednesday, May 2, 2001 pictures of our son, Michael. I left for work Reverend Sullivan was a pragmatic activist Mr. TRAFICANT. Mr. Speaker, having mon- at about 8:30 that morning, a happy, expect- who never forget the individual hopes and itored the egregious human rights violations ant father of my first child . . . my son . . . dreams of real people. The nation has suf- against Albanians in Macedonia under the Michael. At 9:02 A.M. on April 19, 1995, it all fered a great loss. shattered, when the Alfred P. Murrah Fed- former communist regime of Kiro Gligorov, I f eral Building was blown up. A seven-year am pleased to support the current coalition plan, gone. Just Blown up. At 9:03 A.M. that EDWARD LENNON, IRISHMAN OF government of Arben Xhaferi, Chairman of the morning I was no longer an expecting father THE YEAR FRIENDLY SONS OF Democratic Party of Albanians in Macedonia, or husband. At 28 years old, I was a widower. SHILLELAGH and Boris Trajkovski, Chairman of the ethic I don’t care to go into the details of what Macedonian party VMRO. In this regard, I happened to me in the months following the submit for the CONGRESSIONAL RECORD a re- bombing, but please ask yourself, ‘‘Would HON. FRANK PALLONE, JR. having a part of your loved one in the form port entitled ‘‘Resolving the Crisis in Mac- OF NEW JERSEY of a child would make your grieving easier?’’ edonia’’, by Shirley Cloyes DioGuardi, Balkan I think it would. Therefore, the loss of that IN THE HOUSE OF REPRESENTATIVES Affairs Advisor to the Albanian-American Civic potential life is worth an immeasurable Wednesday, May 2, 2001 League. This analysis is the finest analysis amount to me. Let’s say for the sake of argu- dealing with the subject matter at hand. Shir- Mr. PALLONE. Mr. Speaker, this Saturday ment that Carrie was not killed by that act ley Cloyes DioGuardi is truly an expert on the Order of the Friendly Sons of the Shille- of violence, but that shrapnel entered the these matters. In addition, the Albanian-Amer- womb and killed Michael. Is it safe to as- lagh of the Jersey Shore will be honoring Ed- ican Civic League represents the policies and sume that would have an ill effect on her ward H. Lennon as ‘‘Irishman of the Year, positions that are in the best interests of both child bearing capacity, not only physically, 2001.’’ America and Macedonia, and also for hope for but emotionally, for the rest of her life? I am The Friendly Sons of the Shillelagh is an no doctor, but I would have to think it a lasting peace in the Balkans. would. In this scenario, a seven-year plan is Irish-American social and charitable organiza- RESOLVING THE CRISIS IN MACEDONIA still gone and possibly any future plans. tion dedicated to promoting and enhancing the Should we as people allow that act of vio- fraternity and good fellowship of its member- (By Shirley Cloyes DioGuardi) lence to remain a victimless crime? No Mi- ship of Irish-Americans. The Albanian American Civic League has chael the 3rd ever mentioned? I don’t think It is most appropriate that Ed Lennon should been working extensively with the Bush ad- that would be right. In any case, I lost the receive this honor from the Friendly Sons, as ministration, the U.S. Congress, and the Al- two people I loved most that day, and the of- his accomplishments embody the spirit and banian American community since our dele- gation returned from Macedonia, Kosova, ficial death toll for the Murrah Bombing re- the wonderful traditions and accomplishments mains at 168. In addition to Carrie, there and Presheva at the beginning of March. Our were two other expecting mothers in the of the Irish in America. goal is to ensure that the crisis in Macedonia building that day that died. Three babies. As President of the New Jersey State Police is resolved through diplomacy, not weapons, Passing this bill won’t bring my wife and Fraternal Association, Ed has reached a pin- and that a commitment is made to eradi- son back to me, but it would go a long way nacle of success in a profession served so cating the roots of the conflict—namely, the toward at least recognizing Michael’s life well by Irish Americans, both today and racism, repression, and institutionalized dis- and the loss of seven years of responsible ac- throughout the course of this century. crimination that Albanians have been sub- tions to gain that life. Violent criminal acts In fact, Ed comes from a long line of law en- jected to for close to a century. that result in the death of a potential life is The international community has long de- worth prosecution on its own merits, regard- forcement officers starting with his grand- scribed Macedonia as a multiethnic democ- less of the other counts against the defend- father, William Carroll, who was a detective racy. But, as Democratic Party chairman ant. As the only survivor of a family of with the Bayonne Police Department. His Arben Zhaferi observed in an interview with three, in my case, it would only be right. Re- uncle, Jim Carroll, served with the Hudson the New York Times on March 27, while the gardless of your vote on this, in my mind 171 County Police Department and another uncle, reality of Macedonia is multiethnic, ‘‘the

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00006 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.020 pfrm04 PsN: E02PT1 May 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E701 concept of the state is ethnocentric.’’ Decentralize the government and give mu- tion. In fact, the opposite is true. As long as ‘‘Which do we change?’’ he asked. ‘‘We can nicipalities a greater share of the power and human rights are denied in Macedonia, the only change the reality by ethnic cleansing, tax revenues in order to implement decisions state is under threat of violence. In its cur- and so we must change the concept of the at the local level. (The Macedonian par- rent ethnocentric form. Macedonia also will state.’’ liament has been in the process of consid- fail to gain admittance to the Council of Eu- RECOMMENDATIONS ering a revision of legislation that would rope, the European Union, and NATO, which strengthen local government.) is critical to its economic and political In order to bring genuine democracy and End police brutality by reforming the old growth. Exclusion from European institu- peace to Macedonia, it is necessary to: Communist structure of the police and mili- Change the concept of the state by chang- tions would be especially unfortunate be- tary through professional training by West- ing the Constitution to give equal status to cause the VMRO–DPME coalition brought to ern experts that includes human rights edu- Albanians and ethnic Macedonians. power Prime Minister Lujco Georgievski and cation. Change the citizenship law, or rather its President Boris Trajkovski, who are unques- Investigate abuses by the Macedonian po- application, so that all people born in Mac- tionably more progressive in their outlook lice against Albanians and Roma, as reported edonia or who have longstanding residency and actions than the previous Slavophile by the Council of Europe on April 2, includ- are counted as citizens. government of Kiro Gligorov. ing ‘‘unlawful arrest and detention, excessive Since the 1994 census, more than 120,000 Contrary to initial statements by the eth- use of force and physical ill-treatment of de- ethnic Albanians, whose families in many nic Macedonian leadership, Kosovar Alba- tainees.’’ Investigate burning of villages, cases have been living in Macedonia for cen- nians did not export violence to Macedonia. damage to civilian property, and preventa- turies have been classified as ‘‘illegal immi- The National Liberation Army is homegrown tive detention and abuse of innocent civil- grants,’’ because the head of the household is and its emergency is a wake-up call. Ethnic ians by the Macedonian military in response working abroad to ensure the family’s sur- Macedonian leaders need to make a sincere to the National Liberation Army’s offensive. commitment to dialogue with the Albanian vival. Those whose work abroad has pre- Resolve once and for all Albanians’ lack of vented them from living in Macedonia for fif- parties and to make the necessary constitu- access to higher education in Macedonia by tional and legal changes to end discrimina- teen years without interruption, as the cur- constructing the new Albanian language uni- rent law requires, have lost the citizenship tion. But also, as the International Crisis versity. Group stated in its April 2001 report, ‘‘The rights they had before Macedonia declared Other problems related to this university, its independence from the former Yugoslavia Macedonian Question: Reform or Rebellion,’’ including expanding the number of faculties, ‘‘the Slavic majority must be ready to chal- in 1991. integrating the previous University of A huge part of the problem here is that the lenge the notion that Macedonian state iden- Tetova, ensuring enough placements for tity is synonymous with the Slavic popu- OSCE, of which Macedonia is a member, has qualified applicants, etc., must be resolved established international norms for deter- lation.’’ If it does this, Macedonia has a by the Albanian community in dialogue with chance to become a truly multiethnic, con- mining citizenship that do not account for a the funders from the European Union and situation in which high unemployment has sensual democracy that serves as a model for the United States. the rest of the world in the 21st century. forced large numbers of adults to work Begin an anti-racism campaign by ending What ethnic Albanians should consider and do abroad in order to support their families. ethnic stereotyping in the media. Therefore, OSCE standards must be modified to end the crisis STRATEGY to accommodate the Macedonian reality. The National Liberation Army has suc- In the villages bordering Kosova, such as Achieving the important objectives out- ceeded in focusing international attention on Tanusha, disenfranchisement has taken an- lined above will ensure that Albanians have the legitimate grievances that Albanians other form. After NATO entered Kosova in equal rights with ethnic Macedonians and have in Macedonia about anti-Albanian rac- June 1999, Macedonian border guards began that they have effective participation in the ism and institutionalized discrimination. to try to push the Macedonian border back political process. These objectives cannot be However, the timing and nature of the NLA’s into Kosova. When ethnic Albanian farmers accomplished by force of arms. They can response has endangered human life and in Tanusha and other border towns would only be accomplished by bringing all polit- compromised the Albanians national cause. cross the border into Vitina, Kosova (only ical parties from all ethnic groups to the ne- There is no support for armed rebellion in eight kilometers away) to buy supplies, rath- gotiating table with international mediators Macedonia by the international community, er than make the journey to Skhup (25 kilo- as soon as possible. In addition, the inter- because the situation is not the same as it meters away), they were blocked from re- national community, and especially the was in Kosova, where Albanians were rou- turning to Macedonia, where their families United States, the most important friend tinely imprisoned, tortured, and killed have been farming for hundreds of years on that Albanians have, will not support the use throughout ten years of occupation, culmi- the same land. It is no accident that the of gun—either by the State or the NLA fight- nating in Slobodan Milosevic’s campaign of NLA established a stronghold here. er—as a tool of change in Macedonia. Be- mass extermination and forced deportation Ensure that the new census is conducted cause the crisis in Macedonia can only be re- in 1998–1999. The NLA picked up the gun— according to international standards and solved through negotiation and not military which should be the last resort after all non- monitored by recognized nongovernmental might, this has implications for both ethnic violent means have been exhausted—without institutions and officials from several coun- Macedonians and Albanians: first engaging in the political process under- tries. What ethnic Macedonians should consider and way in Macedonia by Arben Xhaferi and Macedonia and the international commu- do to end the crisis other Albanian leaders, who were close to nity must finally have an accurate count of Peace cannot come to Macedonia as long making significant changes in the legal, eco- ethnic Macedonians, Albanians, and other as the Macedonian military offensive con- nomic, education, and political status of Al- nationalities in Macedonia. Xhevdet Nasufi, tinues. It must cease, and the Serb, Bul- banians. an ethnic Albanian who is Minister of Jus- garian, Russian, and Greek military and The NLA picked up the gun without first tice in Macedonia, has been put in charge of paramilitary forces that are aiding the articulating to the world the plight of Alba- the census. It is essential that a large num- Macdeonian army in fighting the National nians who live in Tanusha and other Macedo- ber of the census takers are ethnic Alba- Liberation Army must leave the country. nian villages on the border of Kosova, with nians, while other ethnic groups in Mac- Reparations for property damage and per- the result that a new round of anti-Albanian edonia, such as Roma, Vlachs, Bulgarians, sonal injury should be made as soon as pos- press has ensued to the detriment of Alba- and Serbs, should also be included in the cen- sible to civilians living in the villages where nians throughout the world. Instead of secur- sus personnel. If the government is anxious the NLA has been based. The resort to arms, ing rights and freedom for the Albanians who about increasing the number of minority initially against a few hundred armed guer- are disenfranchised in Macedonia, it has representatives conducting the census, then rilla forces, was a mistake. Military action helphed NATO justify its premature and ill- they can ask that international monitors ac- has only served to swell the ranks of the considered released of the Serbian military company all census takers, regardless of NLA and their support from the Albanian di- into the buffer zone. Picking up the gun at their ethnicity. The spring 2001 census aspora and to radicalize the population on the wrong time has also undermined the res- should be postponed until the immediate cri- both ethnic Albanian and Macedonian sides. olution of Kosova’s status and put the lives sis subsides and international assistance is The failure to stop the military offensive, of Albanians in Mitrovice and Presheva at provided. the destruction of civilian property, and the considerably greater risk. Make Albanian a second official language. arrest of innocent civilians has exacerbated At this critical juncture, when the pursuit Transform the voting system in the par- the conflict. of war will lead only to a bloodier and more liament so that ethnic Macedonian members, Up till now, the ethnic Macedonian leader- devastating conflict on all sides, the Alba- who are in the majority, do not overrule ship has been adept at saying all of the right nian community must come to grips with every initiative made by Albanian MPs and things to the international community, but the fact that the National Liberation Army those of other ethnic groups. not at moving on the changes that are need- was created not by the majority of Albanians Increase the number of Albanians in the ed to bring peace and stability to the coun- in Macedonia and in the rest of the Balkans, police force and other state institutions, try. The fear is that granting equal rights to but by members of LPK, a small revolu- consistent with their numbers in the popu- all citizens and the integration of all nation- tionary Marxist party. Although some of lation. alities will lead to the nation’s disintegra- LPK’s leaders, including Ali Ahmeti (head of

VerDate 112000 03:53 May 03, 2001 Jkt 089060 PO 00000 Frm 00007 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.025 pfrm04 PsN: E02PT1 E702 CONGRESSIONAL RECORD — Extensions of Remarks May 2, 2001 the NLA), can be credited with helping to role that Macedonia played during the war in tion the un-American practice of racial form the Kosova Liberation Army in Swit- Kosova, when it gave refuge to hundreds of profiling. zerland in the early 1990s, the KLA ulti- thousands of Kosovar Albanians. This breach The 4th and 14th Amendments are intended mately emerged as a democratic force. It is of trust, which fuels the prevailing anti- to protect our citizens from our government by time to demand that LPK cease all military Western mood among ethnic Macedonians, requiring searches and seizures to be reason- activities and become accountable to the po- must be addressed. litical process. In this connection, it is time Finally, there is no question that uncer- able. In the United States, a search or seizure for the Albanian community also to ac- tainty about the future status of Kosova has is unreasonable and, therefore, unconstitu- knowledge that the current crisis in Mac- fueled the current crisis in Macedonia. Na- tional if it is motivated by race, religion, or eth- edonia is as much the result of a power tional elections should be held in Kosova as nicity. Congress must concern itself with those struggle inside the Albanian community as soon as possible and a process mapped out who choose to ignore the basic rights of all it is the result of years of discrimination and for final status negotiations. Contrary to the Americans—rights that exist regardless of the repression by ethnic Macedonians. This in- opinion of some European countries, color of your skin. ternal struggle has been compounded by ef- Kosova’s independence will contribute the While serving my last term in the Illinois leg- forts to exploit the current situation for po- strengthening, not to the demise, of the Mac- islature, I voted for a statewide study to deter- litical advantage, such as the recent vitriolic edonian state. attack against Arben Xhaferi, replete with mine the extent and the effects of racial f falsehoods, by Bardyl Mahmuti. profiling. Recently in my home state, the City While the DPA is not without its faults, CONGRATULATIONS TO HERITAGE of Highland Park established landmark initia- and should undergo careful self-examination CHRISTIAN HIGH SCHOOL’S ‘‘WE tives to curb this intolerable practice. These and change in this period, it is also the case THE PEOPLE’’ TEAM initiatives are the first of their kind in this coun- that DPA leader Arben Xhaferi and his col- try. leagues should receive credit and support for Now in Congress, I intend to review High- their numerous accomplishments in improv- HON. GERALD D. KLECZKA land Park’s broad plan and work towards end- ing the present and future prospects for Al- OF WISCONSIN ing racial profiling so that justice for all exists banians in Macedonia. Arben Xhaferi should IN THE HOUSE OF REPRESENTATIVES also receive praise for his superb perform- throughout the United States, not only in one ance as a statesman on behalf of the Alba- Wednesday, May 2, 2001 city in Illinois. I hope that my colleagues on nian people throughout this crisis. Mean- both sides of the aisle work with me on this Mr. KLECZKA. Mr. Speaker, today, I would issue. while, politicians and parties who feel that like to take the opportunity to recognize an ex- they have a better program to offer Alba- f nians in Macedonia should not spend their ceptional group of students from Heritage time attacking other Albanians, but in vig- Christian High School, of West Allis, Wis- THE NEED TO ACT AGAINST orously offering their programs to the elec- consin: Jon Carpenter, Steve Cerny, Cassie BULLYING torate in preparation for the October 2002 na- Daubner, Caitlin Flood, Brad Jacobi, Brian tional elections, while presenting a unified Krueger, Beth MacKay, Anneka McCallum, HON. BARNEY FRANK voice with all Albanian factors when it Lindsey Mueller, Steve Poelzer, Megan OF MASSACHUSETTS comes to the legal and institutional changes Rudebeck, Jessie Sajdowitz, Libby Smith, and IN THE HOUSE OF REPRESENTATIVES that must be made in Macedonia. Every Al- Anni Vosswinkel. banian, but especially Albanian politicians, Wednesday, May 2, 2001 intellectuals, and activists, should be work- After months of study and rigorous competi- tion against other high school teams in Wis- Mr. FRANK. Mr. Speaker, in our national ef- ing to make full equality for Albanians in fort to find policies which to put an end to the Macedonia a reality. consin, the Heritage Christian group was terrible tragedies of school children shooting What the international community should con- awarded the honor of representing the state at sider and do to end the crisis the national competition of the ‘‘We the Peo- each other to death, one very promising devel- opment has been the increasing attention to While the steps taken by Macedonia’s coa- ple...the Citizen and the Constitution’’ lition government in the next few weeks will competition in Washington, D.C. the problem of bullying. We have for far too be critical to the outcome of the crisis in The ‘‘We the people...the Citizen and long made the mistake of indulging bullying, Macedonia, the steps taken by the inter- the Constitution’’ program was developed spe- and in ignoring the anguish of those who are national community will be equally decisive. cifically to educate young people about the victimized by it. A 30-year-old adult who is The international community should cease Constitution and the Bill of Rights, Winners being severely taunted and physically har- sending ambiguous signals about its commit- from the respective states travel to Wash- assed by others can receive legal help. But a ment to a diplomatic solution to the crisis. 15-year-old is often told that it is his or her re- To date, much lip service has been given to ington to take part in a competition modeled on United States Congress hearings. The sponsibility to deal with this without any out- a peaceful, diplomatic solution, while the side intervention, and that is both cruel and major thrust has been swift condemnation of hearings consist of oral presentations before a the NLA’s actions and support for the Mac- panel of judges, followed by a period of ques- can lead to a dangerous results. This has edonian military offensive. The West has tioning by the simulated congressional com- been a particular problem with students who promised to uphold Macedonia as a demo- mittee, in which the students demonstrate their are—or are thought to be by their school cratic, multiethnic state, but it has endorsed understanding and constitutional knowledge. mates—gay, lesbian, bisexual or the actions of ethnic Macedonian leaders These students are a credit to their high transgendered. And especially in this latter without showing enough regard for the posi- class of cases, students who learn that bul- tion of the Democratic Party of Albanians in school and to the state of Wisconsin. I would also like to recognize the group’s teacher, Tim lying and physical violence abuse are OK in Macedonia, which made the VMRO–DPME high school sometimes extrapolate from that coalition government possible in the first Moore, who no doubt played a significant role place. in the success of this class. the message that violent assault and even Identifying and implementing genuine po- Mr. Speaker, I am proud to have the oppor- murder are OK a few years after the high litical solutions to the problems in Mac- tunity to commend these students and their school. In the April 26 edition of the newspaper Bay edonia and other parts of Southeast Europe teacher on their hard work, enthusiasm, and is the only way to avoid more bloodshed and Windows, an extremely responsible journal accomplishment in making it to the nationals I to avert a fifth Balkan war. And as much as published weekly in Boston, with a particular wish them much success in their future stud- the Bush administration would prefer to give focus on matters relevant to the gay, lesbian, ies, and congratulations on their achievement. Europe the lion’s share of responsibility, it bisexual and transgendered community, editor has to come to grips with the fact that a ne- f Jeff Epperly wrote a first rate editorial on this gotiated settlement will not happen without active involvement by the United States. Al- CONDEMNING THE PRACTICE OF subject. Mr. Epperly’s points are very impor- banians, in particular, view the United RACIAL PROFILING tant ones for those formulating public policy to States as their only protector and as the understand, and I submit this extremely well only country that can shift the countries of HON. TIMOTHY V. JOHNSON reasoned and eloquent piece to be printed the Former Yugoslavia from the previous here. Communist model to Western, participatory OF ILLINOIS [From Bay Windows, Apr. 26, 2001] democracy. IN THE HOUSE OF REPRESENTATIVES BULLYING IS NOT A ‘‘NORMAL’’ PART OF The international community laments cor- Wednesday, May 2, 2001 ruption in Macedonia and other countries in CHILDHOOD Southeast Europe, and yet it has failed to Mr. JOHNSON. Mr. Speaker, I rise to com- (By Jeff Epperly) make good on its promises to help Mac- mend the thousands of police officers keeping ‘‘Stick and stones may break my bones, edonia economically in return for the pivotal the streets of America safe, but to bring atten- but names will never hurt me,’’ was the

VerDate 112000 03:53 May 03, 2001 Jkt 089060 PO 00000 Frm 00008 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.029 pfrm04 PsN: E02PT1 May 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E703 dismissive reply that came from a school ad- tive branches are unable or unwilling to offer A version of this bill was included by the ministrator with whom I was discussing the equal protection to its citizens. Ways and Means Committee in legislation last often brutal treatment heaped upon openly But court action alone will hardly solve Congress that was vetoed and a version of it gay—or perceived-to-be-gay—students in the problem. And it’s not just gay kids who schools. That was shortly after I started at are being tormented. Nor is it only gay kids passed the Senate as well. This current this paper nearly 15 years ago. In the inter- who are bringing guns and knives to school version of the bill we are introducing today has vening years that children’s schoolyard to gain revenge on their tormenters. So it’s been vetoed over the past several years with chant has been, in the context of how gays heartening to hear that the Gay, Lesbian and the tax writing committees of Congress in the should deal with verbal abuse, thrown in my Straight Education Network is working with House and Senate, the Joint Committee on face by everyone from police officers to other education organizations to make sure Taxation and the Department of Treasury. It mainstream newspaper columnists. that school administrators and other govern- addresses the key deficiencies in the current For too many years, the attitude of many ment officials continue to work toward pro- law. I urge that it be included in tax-related school administrators and teachers toward grams and solutions for a problem that student-on-student harassment has been ought not ever again be covered up or dis- legislation considered by the House in this that it’s a ‘‘normal’’ part of growing up. Gay missed. session of the 107th Congress and that our students, like kids who are overweight or colleagues join the co-sponsors of this bill in have speech problems, should learn to light- f supporting this meritorious legislatiion. en up, ignore the taunts or fight back in the f face of abuse. But as anyone who’s followed INTRODUCTION OF A BILL TO SIM- this issue knows, anti-gay harassment rarely PLIFY AND MAKE MORE EQUI- PERSONAL EXPLANATION stops at name-calling. Openly gay or lesbian TABLE THE TAX TREATMENT OF students can attest, along with girls who are SETTLEMENT TRUSTS ESTAB- HON. ANTHONY D. WEINER a little too masculine, or boys who are a lit- LISHED PURSUANT TO THE OF NEW YORK tle too feminine, that sticks and stones are ALASKA NATIVE CLAIMS SET- IN THE HOUSE OF REPRESENTATIVES just some of the items used to pummel and TLEMENT ACT ostracize those who dare to be different. Wednesday, May 2, 2001 But even if we were to assume for the sake of argument that anti-gay harassment in HON. DON YOUNG Mr. WEINER. Mr. Speaker, I was unavoid- schools rarely escalates beyond verbal OF ALASKA ably detained in my district on Tuesday, May taunts, the unrelenting nature of anti-gay 1, 2001, and I would like the record to indicate IN THE HOUSE OF REPRESENTATIVES verbal harassment, along with the sense of how I would have voted had I been present. isolation that accompanies it, makes for an Wednesday, May 2, 2001 For rollcall vote No. 90, the resolution rec- uneven playing field for gay and lesbian stu- ognizing the important of increasing aware- dents who are supposed to be guaranteed the Mr. YOUNG of Alaska. Mr. Speaker, I am equal opportunity to learn. Speak at length pleased to introduce a bill to simplify and ness of the autism spectrum disorder, I would with adult victims of systematic anti-gay make more equitable the tax treatment of set- have voted ‘‘yea.’’ verbal attacks committed by hateful neigh- tlement trusts established pursuant to the For rollcall vote No. 91, the resolution sup- bors, and you understand how ongoing har- Alaska Native Claims Settlement Act porting a National Charter Schools Week, I assment can make simply living in one’s (ANCSA). would have voted ‘‘yea.’’ home unbearable. Imagine what it must be This bill is the product of a unique bipartisan f like for targeted students in the captive en- effort over the past two Congresses. Joining vironment of a school. The effort and desire HONORING MIKE THIESSEN to learn lag far behind the simple act of try- me as a cosponsors of the bill are—the Chair- ing to preserve one’s dignity while keeping man of the Committee on Resources, Con- HON. GARY A. CONDIT one eye out for the bullies behind you. That gressman JAMES HANSEN, the Ranking Minor- so many of these students suffer academi- ity Member of the Committee, Congressman OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES cally is not surprising. NICK RAHALL, and the former Ranking Minority (There is also increasing evidence that Member of that Committee who cosponsored Wednesday, May 2, 2001 schoolyard bullying, now the subject of in- this legislation in the last Congress, Congress- tense study by American, Japanese and Eu- Mr. CONDIT. Mr. Speaker, I rise to honor ropean academics, has long-term adverse man GEORGE MILLER. an outstanding young man from my district in consequences for all of those involved—the Additionally, I am honored to join with a California’s great Central Valley—Mike bullies, the bullied and bystanders who live number of other members of Congress in urg- Thiessen. I am proud to report he lead the Air in fear that it may be they who are next in ing the enactment of this bill. The cosponsors Force Academy football team to a 9–3 season line for abuse if they do not conform to the include Ways and Means Committee Mem- including a 41–27 win over Army and 27–13 whims of the mob.) bers, Subcommittee Chairman AMO HOUGH- Students and parents in many districts over Navy to capture the prestigious Com- TON, Ways and Means Committee, Ranking have begged administrators to stop such har- mander In Chief’s trophy. assment—even after it has escalated to phys- Minority Member CHARLES RANGEL, Rep- The list of accomplishments by this fine ical violence, and even though some teachers resentative DAVE CAMP, Representative J.D. young man is impressive. and administrators themselves have taken HAYWORTH, Representative SCOTT MCINNIS, He was named the Air Force Academy’s part in the harassment. Many times, as Wis- and Representative MARK FOLEY. Player of the Year, the Mountain West Con- consin student Jamie Nabozny could attest, Colleagues from the Native American Cau- ferences’ Offensive Player of the Year, and the student being harassed is made to feel as cus who are cosponsoring this bill are: the Co- takes his place among the great option quar- if he or she is the culprit for having the te- chair of the Caucus along with Mr. HAYWORTH, terbacks in Air Force Acadmey history. He merity to simply be who they are. It was in 1997 that Nabozny caused a stir in Representative DALE KILDEE, Representative was named Colorado’s Male Athlete of the school board meetings across the country NEIL ABERCROMBIE, Representative ENI Year and was selected for the 2000 Gridiron after he got fed up and sued the school dis- FALEOMAVAEGA, Representative MARK UDALL, Classic. trict that failed to see how its inaction was Representative FRANK PALLONE, and Rep- Mike ranked second in the MWC in total of- affecting his rights to equal educational op- resentative PATRICK KENNEDY. fense (218.2 average) and led the MWC in portunities. He won in a landmark ruling in This bill would remedy several key defi- quarterback efficiency (147.0 rating) He led federal court. In a heartening after-effect, ciencies in the current settlement trust provi- the team in rushing with 713 yards and 10 more students and their parents, emboldened sion enacted in a 1987 amendment to touchdowns and hit 112–195 passes for 1,687 by the Nabozny decision have stepped for- ward and are filing similar suits against ANSCA. That provision authorized Alaska Na- yards and 13 touchdowns. He ranked 10th na- their school districts for similar reasons. tive Corporations organized pursuant to tionally in quarterback efficiency. Some pundits are already saying that ANCSA to establish, from their own resources, Prior to the Air Force Academy, Mike led his these cases are just one more example of how settlement trust funds to ‘‘promote the health, Johansen High School football team to the destructively litigious American society has education, and welfare . . . and preserve the Sac-Joaquin Section semi-finals capping a become. But these cases cannot be compared heritage and culture of Natives.’’ Unfortu- stellar high school career that culminated to lawsuit-obsessed citizens trying to wring nately, the Settlement Trust tax provision in when he was selected as one of 30 players to money from slip-and-fall accidents or res- taurants who dare to serve hot coffee which existing law poses several significant impedi- represent California in its annual all-star game is then spilled on some klutz’s lap. These ments to the establishment and long-term against Texas’ all-stars. Unfortunately, Mike cases are legitimate examples of citizens maintenance of Settlement Trusts, and there- did not get to play in that game because he seeking redress from the judicial branch of fore, to the fulfillment of their purposes under was already committed to the Air Force government when the executive and legisla- ANCSA. Acadmey and had begun training.

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00009 Fmt 0626 Sfmt 9920 E:\CR\FM\A02MY8.033 pfrm04 PsN: E02PT1 E704 CONGRESSIONAL RECORD — Extensions of Remarks May 2, 2001 In addition to being the senior class vice begin the necessary steps. The United States The Goliad Zaragoza Society was founded president, he was selected to the All-State can no longer afford to be burdened with re- in 1944 by a group of Mexican Americans to football team, named the Outstanding Player search and development costs of drugs that pay tribute to the legacy of General Zaragoza of the Central California Conference and was are going into other countries. by showing respect and pride for their culture. named Most Valuable Player of the Stainslaus I urge my colleagues to support this bill and Today the Society’s primary mission is pro- County All District football team. The Sports- improve heathcare for all American con- viding scholarships to help students pursue men of Stainslaus named him their Out- sumers. their education. standing Athlete. f f It is pleasure to represent this fine young IN HONOR OF GENERAL IGNACIO man and his parents Steven and Barbara THE INTRODUCTION OF THE AC- ZARAGOZA SEGUIN, THE HERO Thiessen. I ask my colleagues to rise and join CESS TO EMERGENCY MEDICAL OF PUEBLA, AND THE GOLIAD me in honoring Mike Thiessen. SERVICES ACT OF 2001 ZARAGOZA SOCIETY f HON. BENJAMIN L. CARDIN PRICE CONTROL PROGRAMS GOV- ´ HON. RUBEN HINOJOSA OF MARYLAND ERNING MEDICINE IN MEXICO OF TEXAS IN THE HOUSE OF REPRESENTATIVES AND CANADA IN THE HOUSE OF REPRESENTATIVES Wednesday, May 2, 2001 Wednesday, May 2, 2001 HON. JOHN J. DUNCAN, JR. Mr. HINOJOSA. Mr. Speaker, I rise today to Mr. CARDIN. Mr. Speaker, I rise today to in- OF TENNESSEE honor a true hero who gave his life to free his troduce legislation guaranteeing one of the IN THE HOUSE OF REPRESENTATIVES country from foreign oppression. Ignacio most fundamental of patients’ rights—the right of access to needed emergency medical care. Wednesday, May 2, 2001 Zaragoza Seguin was born in 1829 at Bahia Del Espiritu Santo, Mexico near what is now In the 104th, 105th, and 106th Congresses, Mr. DUNCAN. Mr. Speaker, today I have in- Goliad, Texas in my Congressional District. He I introduced the Access to Emergency Medical troduced a bill that calls for the United States was the son of a soldier, but was educated as Services Act. This bill would establish the Trade Representative to investigate whether a priest. When the United States invaded ‘‘prudent layperson’’ definition of emergency any price control program governing medica- Mexico, he tried to enlist but was rejected be- as the standard for insurance coverage for tion in Mexico or Canada violates, or is incon- cause of his youth. He was a businessman for emergency services under group health plans, sistent with, any trade agreement, denies ben- a short time, but his passionate support of health insurers, and the Medicare and Med- efits to the United States, or discriminates Mexico’s struggle to create a fledgling democ- icaid programs. Health plans would be re- against or restricts United States commerce. racy, made him a soldier. During the years of quired to cover and pay for emergency care As I travel around the Second Congres- the War of the Reform in 1857 to 1860, he based upon the patient’s symptoms rather sional District of Tennessee, one concern I joined with Benito Jua´rez and fought in numer- than the final diagnosis. This coverage is tied hear about over and over again is the high ous battles including the battle of Calpulalpan, to the federal law called EMTALA, which re- cost of medications. Many seniors, in par- which ended the war. quires hospitals to provide screening and any ticular, often face a choice between things like In April 1861, General Zaragoza was ap- stabilization services that are necessary. In medicine, food and heat. However, this prob- pointed Minister of War and the Navy. When addition, the legislation would prohibit health lem is not isolated only to the elderly. All Mexican President Jua´rez was forced to de- plans from requiring that patients obtain prior Americans face these steep prices. For exam- clare a moratorium on Mexico’s European authorization before seeking emergency care. ple, single mothers and poor working families debt in order to salvage the bankrupt econ- The bill would also help promote quality, cost- also have to buy medications. As a father, I omy, Spain sent a fleet and forced the sur- effective care by requiring that health plans cannot imagine anything worse than not being render of Veracruz. France and England and emergency physicians work together to able to afford medicine for a sick child. joined Spain in the invasion of Mexico. Gen- coordinate any necessary follow-up care. As has been discussed many times, there eral Zaragoza resigned from the ministry to The prudent layperson definition requires a are a lot of complex reasons that prices are so lead the Army of the East. Although the health plan to pay for treatment rendered high, and it goes far beyond greedy manufac- English and Spanish reached an agreement when a patient experiences: turers as some have suggested. Some new with President Jua´rez and withdrew, the A medical condition manifesting itself by drugs can cost more than a billion dollars to French landed troops and marched toward acute symptoms of sufficient severity (in- bring to market. In exchange, these drugs Mexico City. They met the Mexican forces at cluding severe pain) such that a prudent have a profound impact on the health of the City of Puebla in a battle that lasted the layperson, who possesses an average knowl- Americans and hundreds of millions of people entire day of May 5, 1862. Under General edge of health and medicine could reason- worldwide. Fundamentally, we need to find Zaragoza’s leadership that vastly outnumbered ably expect the absence of immediate med- ways to reduce these development costs, as it Mexican army and Puebla townspeople forced ical attention to result in placing the health is these costs that are passed on to con- the withdrawal of Napoleon III’s Army, the pre- of the individual in serious jeopardy, serious sumers. impairment to bodily functions, or serious mier army in the world. Napoleon’s army suf- dysfunction of any bodily organ or part. Another great inequity in the pricing of these fered heavy losses, but Mexican casualties medications is that many countries, such as were few. Although the French ultimately cap- In the Balanced Budget Act of 1997, Con- Canada and Mexico, have outrageous cost tured Mexico City the next year and put Napo- gress did indeed guarantee this right to Medi- control laws. While these reduced costs may leon’s nephew on the throne, the costly delay care and Medicaid patients enrolled in man- be sufficient to pay the price to physically in Puebla and the subsequent guerrilla war aged care plans. Then in February 1998, the produce a pill or medicine, they rarely take waged by Benito Jua´rez shortened the French President’s Executive Order extended this into account the phenomenal expenses that intervention. It also helped preserve the Amer- right to all persons in federal health programs, went into the development of the drug. These ican Union, as it kept the French too occupied including FEHBP, veterans and military enroll- development costs are then shifted elsewhere to directly aid the Confederacy with troops in ees. So as subscribers in FEHBP plans, all to other consumers who end up paying out- the U.S. Civil War, which was being waged at Members of Congress have been guaranteed rageously high prices for the same medica- the time. this important patient protection. Thirty-two tions. If manufacturers and researchers were General Zaragoza received a hero’s wel- states and the District of Columbia have also ever completely stripped of the ability to re- come in Mexico City. While visiting his sick passed laws establishing this standard. But to cover these costs, the flow of new drugs troops, he contracted typhoid and died on protect residents of the eighteen states that would slow dramatically, if not end completely. September 8, 1862 at the age of 33. He re- have not passed a prudent layperson stand- Nevertheless, it is wrong that Americans are ceived a state funeral and on September 11, ard, and for the approximately 50 million per- so often asked to pay the price for drugs that 1862, President Jua´rez declared May 5, Cinco sons who are enrolled in ERISA self-insured benefit all mankind. It is particularly frustrating de Mayo, a national holiday. plans, Congress must act. to consumers when they see our neighbors to Today Cinco de Mayo is celebrated through- But I want to caution my colleagues—simply the North and South paying much lower prices out Mexico and around the world. This week- inserting the words ‘‘prudent layperson’’ into a for exactly the same drug. end I will be joining in the festivities being bill does not ensure access to appropriate I believe that this situation needs to be ex- sponsored by the Goliad Zaragoza Society at emergency care. During the House debate on amined and addressed and this bill helps the birthplace of this great man. The Patient Protection Act (H.R. 4250) in the

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00010 Fmt 0626 Sfmt 9920 E:\CR\FM\A02MY8.037 pfrm04 PsN: E02PT1 May 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E705 105th Congress, some Members insisted that So far, high-speed rail exists only in the emergency treatment. It is inappropriate and it contained the same emergency care stand- Northeast. But Amtrak’s vision is to build a na- dangerous for insurance companies to require ard that was provided for in the Balanced tional passenger railroad system consisting of pre-authorization for emergency services. In- Budget Act. In October 1998, thirty Members many regional high-speed corridors linked by deed, emergency conditions are by definition who had voted for H.R. 4250 recognized that long-distance service. problems that require immediate medical at- the language was not the same and wrote the That’s why I strongly support the High tention without delay. Speaker asking that the true prudent Speed Rail Investment Act of 2001. It will pro- Patients are also being financially punished layperson standard—reflecting the BBA provi- vide Amtrak with what our highways and air- for taking precautionary action and admitting sions and consistent with EMTALA—be in- ports already have: A source of long-term cap- themselves to the emergency room for a crit- cluded in any patients’ rights legislation that ital with which to build the high-speed rail cor- ical situation. We should not attach a high per- moved forward. ridors of the future. sonal risk to seeking out emergency care. I Regrettably, the 105th Congress adjourned With high-speed rail, we can unclog Amer- have heard many stories of individuals who go without additional action on HMO reform. Mil- ica’s transportation arteries, give travelers the to the emergency room with symptoms that in- lions of Americans enrolled in managed care choices they deserve, and fix our broken dicate a serious illness, perhaps a heart at- plans were frustrated by our inability to send transportation system. Passage of the High tack. They undergo a battery of tests and find a bill to the President’s desk, but remained Speed Rail Act of 2001 isn’t just in Amtrak’s out that the heart attack was something else, hopeful that Congress would produce effective interest; it’s in America’s interest. perhaps a bad case of heartburn. That should patients rights legislation when it convened So as we congratulate Amtrak on thirty be good news. However, weeks later they find this year. years of service to America, let us resolve to out that those tests cost hundreds, maybe thousands of dollars, and their insurance com- In the 106th Congress, this body passed by pass the High Speed Rail Investment Act of panies refuse to pay. an overwhelming margin comprehensive man- 2001—and finally get America moving again! aged care reform legislation that got the emer- This legislation will put an end to bottom-line f gency services language right. But the other medicine and keep insurance companies out body’s bill did not. And in the conference that TRIBUTE TO THE FRIENDS OF of the emergency room. Decisions on the failed to produce a compromise bill, some LAKEWOOD PROGRAM medical treatment of the ill and injured should conferees fought against the language ap- be placed back in the hands trained to save proved by the House, language that is con- HON. PETE SESSIONS lives, not dollars. The Access to Emergency sistent with Medicare and Medicaid law, lan- Medical Services Act of 2001 would require in- OF TEXAS guage that is strongly supported by doctors, surers to pay for emergency room visits based IN THE HOUSE OF REPRESENTATIVES hospitals, consumer groups, and one of the on a ‘‘prudent layperson’’ definition of an oldest and largest health maintenance organi- Wednesday, May 2, 2001 emergency and a patient’s symptoms, rather zations in the United States, Kaiser Health than the final diagnosis. An individual seeking Mr. SESSIONS. Mr. Speaker, I would like to medical attention for what they ‘‘prudently’’ de- Plans. recognize an outstanding example of parental And so, joined by my colleague from New termine to be a medical emergency should not and community involvement in education in be penalized for that decision. This bill would Jersey, Mrs. ROUKEMA, today I am reintro- my district. The Friends of Lakewood program ducing the Access to Emergency Medical also prohibit insurance companies’ pre-author- is a community effort dedicated to enhancing ization requirements for emergency care. Fi- Services Act in the 107th Congress. I encour- the learning experience of students at Lake- age all members of Congress to study this nally, the bill requires that health care plans wood Elementary School in Dallas. One of and emergency physicians work jointly to co- issue carefully, listen to their constituents, and their most successful initiatives has been the ordinate follow-up care. support passage of this fundamental legisla- ‘‘Math Maniacs’’ program. With more than This bill does not replace the need for com- tion. The American consumers deserve to be one-third of students participating, the fruits of prehensive health insurance reform. The initia- protected by an authentic prudent layperson this program are evident in the school’s con- tives proposed by Congressmen GANSKE and standard that ensures them access to the full tinued success at the Dallas ISD Math Olym- DINGELL are essential for a broad reform of range of services their acute emergency con- piad. our health insurance system. That being said, ditions require, and Congress should give As we all know, the participation of parents this is a necessary bill to pass to protect citi- them this right without further delay. and the community is crucial to educational zens from physical injury caused by paper- f success. When children see that parents care work delays from their insurance carriers. AMTRAK’S THIRTIETH BIRTHDAY about education, it motivates them to aim I strongly urge my colleagues to support this higher and become better students. important legislation which ensures that an in- The Friends of Lakewood program is a surance company’s response will not make HON. BOB CLEMENT model for community leadership and involve- the difference between life and death in emer- OF TENNESSEE ment in education—I comment the parents, gency room. IN THE HOUSE OF REPRESENTATIVES students, and community of Lakewood for f Wednesday, May 2, 2001 their success. IN RECOGNITION OF MR. ED WIL- Mr. CLEMENT. Mr. Speaker, Congress cre- f LIS AND HIS SERVICE TO R.B. ated Amtrak thirty years ago because we real- WRIGHT ELEMENTARY SCHOOL ized that along with cars and planes, pas- ACCESS TO EMERGENCY MEDICAL senger rail was a vital part of America’s trans- SERVICES ACT portation future. Today, as we celebrate Am- HON. SAXBY CHAMBLISS trak’s 30th birthday, the need for passenger HON. MARGE ROUKEMA OF GEORGIA IN THE HOUSE OF REPRESENTATIVES rail is greater than ever. All across this great OF NEW JERSEY land, travelers are growing sick and tired of IN THE HOUSE OF REPRESENTATIVES Wednesday, May 2, 2001 spending so many hours stuck in traffic, or Wednesday, May 2, 2001 Mr. CHAMBLISS. Mr. Speaker, I want to hanging around airport terminals. They want pay tribute to Mr. Ed Willis who is retiring as an alternative. Mrs. ROUKEMA. Mr. Speaker, today I am principal of R.B. Wright Elementary School. In my home state of Tennessee, there is introducing the Access to Emergency Medical The warm and caring manner in which Ed strong support for passenger rail service. And Services Act with my colleague, Mr. CARDIN of led the school let every student know that they in my role as Ranking Member of the Rail- Maryland. I would first like to thank Mr. CARDIN were special and loved. Ed is the consummate roads Subcommittee, I am working to restore for taking the initiative on this issue and con- educator because he lets his teachers teach Amtrak service to Tennessee, because pas- tinually bringing this bill to Congress’s atten- and supports them in their efforts. His stu- senger rail service will continue to grow in tion. dents always achieve the maximum of their popularity and importance. This important legislation is an effort to ability. Fortunately, there is an alternative to con- allow medical professionals to make decisions Ed is the epitome of the caring, professional gestion on our highways and in our airways. in the emergency room, not the insurance administrator. His goal has always been to de- It’s called High-Speed Passenger Rail, and it’s company bureaucrats. velop the total child: academically, socially, a way of traveling that’s pleasant and easy, Insurance companies reportedly have re- physically, and culturally. He commands excel- and allows travelers to make the most of their fused to pay emergency room bills when pa- lence from himself and his staff, and his re- valuable time. tients did not obtain prior authorization for wards come in seeing his students succeed.

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00011 Fmt 0626 Sfmt 9920 E:\CR\FM\A02MY8.040 pfrm04 PsN: E02PT1 E706 CONGRESSIONAL RECORD — Extensions of Remarks May 2, 2001 Ed’s life is an example of Christian living. teeism in schools, and it accounts for 10 mil- Earlier this year, in partnership with the He has been a teacher, coach, father, prin- lion missed school days annually across the South Carolina Department of Education, I cipal, husband, son, and devoted friend. He nation. Each year, asthma results in more hosted a Public Charter School Summit in has given of himself to this community, mak- than 450,000 hospitalizations, in fact while Greenville, South Caroline. The summit’s pur- ing it a better place to live, by loving young hospitalization rates for other diseases are di- pose was simple: educate and excite local children who have attended his school. His minishing, they are climbing for asthma. Asth- leaders about the potential of charter schools calm pleasant demeanor and enthusiasm for ma also kills with unexpected swiftness. Often, in South Carolina. his job were often conveyed to his faculty and the time from first symptom to final breath can We told them that charter schools are public students. He recognized them for their large be as little as 30 minutes. And this is hap- schools that are free from many state and as well as their small accomplishments in a pening to children in increasing numbers— local requirements. In exchange for this free- genuine effort to encourage them to grow as since 1980, death rates for children due to dom and flexibility to try new approaches in citizens, not only while at R.B. Wright, but in asthma have climbed 133 percent. education, the school must deliver results in the community-at-large. There is no cure for asthma, and for rea- student achievement. It is a contract with the Ed has lived according to John Wesley’s sons that we don’t fully understand, asthma governing board—flexibility in exchange for rule: rates have risen dramatically over the last 20 proven academic results. Do all the good you can years. That’s why we must give researchers By drawing upon the ideas and energy of To all the people you can the tools they need to study this debilitating local and state leaders, South Carolina and In all the ways you can condition. We must give public health officials other states can turn the education corner. At all the times you can and community organizations the resources That is how strongly I believe in the trans- To all the people you can they need to spread the word about how it can forming ability of charter schools. As long as you ever can be prevented and controlled. And with an epi- We owe our best effort to improve the Ed exemplifies strong character, leadership demic like this, we must also engage schools schools of our state. I am proud of the charter and compassion. Through his leadership he is in helping children with asthma more effec- schools which have opened in South Carolina. shaping children’s ideas about themselves, the tively manage their condition. Our schools not They have banded together to form the South country, and the world. He has nourished their only need support to train teachers and stu- Carolina Charter School Association, an orga- appetite for learning. They are developing dents in how to effectively respond to asthma, nization that has helped charter schools not habits and values that will last them a lifetime. but they also desperately need funding to pur- only survive, but flourish in South Carolina. I Ed always shows that he believes intellect chase medical equipment and improve indoor commend our state’s efforts to lift hurdles in and character go hand-in-hand. His optimism air quality. the current charter school law and move to and excitement is shared with all those associ- That’s why I reintroduced a bipartisan, com- make South Carolina a charter-friendly state. ated with R.B. Wright Elementary School. Ed prehensive bill to address the asthma epi- The education of our children is a public is a fine diplomat. He is understanding and demic in our country. My bill will encourage trust which we must not take highly. Like patient. He sets high standards for the young states to establish pediatric asthma action many other aspects of our culture and society, people who have attended R.B. Wright Ele- plans, create a National Asthma Coordinating there are principles that stand the test of time. mentary School. He is an excellent teacher Committee to improve our nationwide re- But we need to boldly explore creative solu- and administrator, as well as a fine Christian sponse, and bolster public awareness and tions that allow our nation’s institutions to fit family man. education efforts through the CDC. It will also the needs and demands of modern times. Our He is a spectacular example for children, provide $4 million per year directly to low-in- students deserve a top-notch, cutting-edge calling every child by name and always greet- come schools hardest hit by asthma to imple- education system. ing them with a smile. Ed is a thoughtful, en- ment asthma programs. Charter schools are supported by leaders of couraging, and compassionate principal who is Asthma is an indiscriminate disease that both parties and of all political learnings. It is very successful and loved. He is an effective strikes Americans of all ages, races, and hard to dispute the results when competition, leader, friend, and excellent role model. He places. And Congress can and should do education flexibility, and community partner- ran a tight ship at R.B. Wright Elementary more to alleviate the burden of asthma. So ships are offered to America’s schools. School and will be greatly missed. today, as we begin Asthma Awareness Month, Mr. Speaker, in the midst of all our debates over ways to improve America’s schools, I ask f I urge my colleagues in Congress to join me in helping our country cope with this serious that we pause and give special attention and INTRODUCTION OF THE ASTHMA condition. When children are well enough to recognition to the work of charter schools all ACT IN CONJUNCTION WITH go to school, when parents learn how to ward across the nation. Thousands of parents, ASTHMA AWARENESS DAY off attacks, when scientists better understand teachers, community leaders, and students asthma’s causes, we can all breathe easier. are providing each day that schools will suc- HON. NITA M. LOWEY f ceed when education dollars and decisions are kept close to the community. OF NEW YORK SUPPORTING A NATIONAL f IN THE HOUSE OF REPRESENTATIVES CHARTER SCHOOLS WEEK Wednesday, May 2, 2001 TRIBUTE TO THE KANSAS CITY SPEECH OF RAILWAY AND THE GATEWAY & Mrs. LOWEY. Mr. Speaker, I am delighted WESTERN RAILWAY COMPANY to introduce this legislation on the day of the HON. JIM DeMINT fourth annual Capitol Hill Asthma Awareness OF SOUTH CAROLINA Day, and I particularly want to recognize IN THE HOUSE OF REPRESENTATIVES HON. KAREN McCARTHY Nancy Sander and the other hard-working Tuesday, May 1, 2001 OF MISSOURI IN THE HOUSE OF REPRESENTATIVES members of the Allergy and Asthma Network/ Mr. DEMINT. Mr. Speaker, Americans are Mothers of Asthmatics, whose dedication to united around a common goal to help every Wednesday, May 2, 2001 fighting asthma is limitless. child in America to receive a world class edu- Ms. MCCARTHY of Missouri. Mr. Speaker, I Last year, I visited a school in my district in cation. It is a goal that should unite this legis- rise to pay tribute to both the Kansas City Queens and met an extraordinary young per- lative body around successful education poli- Southern Railway and the Gateway & Western son named Paige Eastwood. At 11 years old, cies—ideas that respond to parents, empower Railway Company. These two rail companies Paige struggles daily to manage her asthma. teachers, and educate children. are the recipients of the 2001 E.H. Harriman Yet, as we all know, Paige is not alone. Ap- As we work to improve America’s education, Gold Award, the highest award for railroad proximately 15 to 17 million Americans have let’s not lose focus on what is working—such employee safety in the rail industry. asthma, over 5 million of whom, like Paige, as the tremendous growth and proven suc- At the core of both of these companies is an are children. The burden of asthma on our na- cess of America’s charter schools. unwavering commitment to safety, so it is fit- tion is nothing short of a crisis. Charter schools prosper because they bind ting that they were chosen as recipients of the Though many Americans may think of asth- parents, teachers, community and state lead- E.H. Harriman Gold Award. The late Mrs. ma as merely an inconvenience or impedi- ers together to tailor an education program Mary W. Harriman in memory of her husband, ment, it is a serious condition that should not that fits the needs of local students. They Edward H. Harriman, a pioneer in American be underestimated. In New York, for example, prosper because they unleash the intelligence railroading, founded these annual rail em- asthma is the single largest cause of absen- and innovation of our students. ployee safety awards in 1913. Chosen by a

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00012 Fmt 0626 Sfmt 9920 E:\CR\FM\A02MY8.045 pfrm04 PsN: E02PT1 May 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E707 committee of transportation professionals, the 1945. During his wartime service Ed earned has paid great dividends for the Port of Long awards are granted to railroads on the basis the Combat Infantryman, Badge, Bronze Star Beach and our entire community. She will be of the lowest casualty rate per 200,000 em- Medal, Good Conduct Medal, European Afri- missed but she will not be forgotten by all of ployee hours worked. This formula takes into can Middle Eastern Theater Campaign Medal, those friends and colleagues who will gather account the volume of work performed, as well Defense Meritorious Service Medal and the on May 9 to wish her and her husband Bill the as the number of fatalities, injuries and occu- Army Occupational of Germany Medal. very best for a long, active and healthy retire- pational illnesses confirmed by the Federal Ed was a very active member of his com- ment. Railroad Administration. munity, playing a major roll in Lowell politics f The Kansas City Southern Railway Com- for more than 40 years. He was a Past Com- pany is a Class I rail system, which operates mander of VFW Post 662, a member of the DOUBLING FUNDING FOR THE NIH over 2,728 track miles in 11 central and south- Portuguese American Veterans, Lowell Lodge eastern states. It was founded in 1887 with of Elks, Lowell Veterans Council, Portuguese HON. GEORGE W. GEKAS the vision of providing the most direct salt American Civic League, Portuguese American OF PENNSYLVANIA water access from the Midwest. Today Kansas Center, Holy Ghost Society, National Associa- IN THE HOUSE OF REPRESENTATIVES City Southern has the shortest route between tion of Letter Carriers, Lowell License Com- Wednesday, May 2, 2001 Kansas City and the Gulf of Mexico, serving mission and a Trustee of the Lowell Memorial the ports of Port Arthur, Texas, New Orleans Auditorium. He was beloved by the member- Mr. GEKAS. Mr. Speaker, I am pleased to and West Lake Charles, Louisiana, and Gulf- ship of St. Anthony’s parish where he was a report that the Congressional Biomedical Re- port, Mississippi. Their commitment to safety, member of the Holy Name Society. search Caucus, which we initiated in 1990 to along with innovative business practices, Since his passing, Ed has been deeply increase awareness and support for basic bio- makes Kansas City Southern a leader in the missed by his friends and family including medical research, has commenced its twelfth rail industry. Their vision of safety encom- sons Ron, Edward Jr., James and Thomas. year of briefings. With my co-chairs, Rep- passes the wellbeing of every employee. Ed and his lovely wife Pauline were the proud resentatives SONNY CALLAHAN, NANCY PELOSI, Thriving on the vision and principles of its grandparents of thirteen wonderful grand- and KEN BENTSEN, and over 100 other Mem- parent company, Kansas City Southern, Gate- children. bers, this bipartisan Caucus has provided way Western Rail is also a formidable force in I am proud to call Edward J. Santos my nearly 100 briefings where Members and staff the rail industry. As one of only four rail gate- friend as are the hundreds of lives he touched have interacted directly with the researchers ways along the Mississippi River system in St. throughout his exceptional life. who lead the world in important scientific dis- Louis, Gateway serves as a major interchange f coveries. point between eastern and western railroads. This year, we are strongly supporting the It interchanges traffic with every major rail car- ON THE RETIREMENT OF LINDA M. fourth step in doubling the budget of the Na- rier in the United States and has access to the JOHNSON tional Institutes of Health over five years. We Mississippi River via two barge terminals. commend President George W. Bush for in- Since its inception in 1990, Gateway Western HON. STEPHEN HORN cluding a $2.8 billion increase for the NIH in has enjoyed a steady increase in business OF CALIFORNIA his FY2002 budget proposal. However, it is volume and an outstanding record of safety. IN THE HOUSE OF REPRESENTATIVES our hope that Congress can provide an in- crease of $3.4 billion in order that the doubling Kansas City Southern Railway and Gateway Wednesday, May 2, 2001 & Western believe in the necessity of safe commitment can be achieved within five years. worker conditions in saving lives. They cul- Mr. HORN. Mr. Speaker, all of us here know Why is this so important? What scientific tivate an environment where employees look and appreciate the important role that a strong evidence exists that such funding for the NIH out for one another and actively participate in and capable staff plays in accomplishing the will indeed result in better health, improved improving the safety of all workers, and an en- work of the House. Obviously, the same is quality of life and reduction in national health vironment where employees are jointly respon- true throughout government and the private care expenditures? sible for the safety process. Kansas City sector and that point will be well illustrated To answer these questions, in February we Southern Railway and Gateway & Western next week with a ceremony in Long Beach, invited two distinguished biomedical research Railway Companies are dedicated to uncom- California, to honor a person who has long scientists to our Caucus to discuss ‘‘The promising safety in meeting the needs of their been a quiet but crucial part of our community. Promise of Biomedical Research.’’ First, Dr. customers, their employees, and the commu- Linda M. Johnson will retire on May 11, Maxine Singer, President of the Carnegie In- nities they serve. after more than 35 years as assistant to the stitution, clearly explained the need to support Mr. Speaker, I ask you to join me in con- Executive Director of the Port of Long Beach. biomedical research infrastructure—instrumen- gratulating Kansas City Southern and Gate- Across more than three decades of service, tation, facilities, information technology and way & Western Railway Companies on receiv- Linda has seen the Port grow from a modest strengthening science and mathematics edu- ing the Harriman Gold Award. Their commit- operation next to the U.S. Navy base into one cation in primary schools. ment to putting safety first in the railroad in- of the largest port complexes in the world. Dr. Marc Kirschner, Chairman of the Depart- dustry serves as a national model. Today, the Port of Long Beach is the busiest ment of Cell Biology at Harvard Medical port in North America with thousands of ships School, was the second speaker and his com- f dropping off or picking up merchandise worth ments follow this statement. We recall that in EDWARD J. SANTOS MEMORIAL hundreds of billions of dollars. To meet the the magazine ‘‘Science’’ (1993), he, along with DEDICATION surge in global trade, the Port of Long Beach Drs. J. Michael Bishop and Harold Varmus, has been forced to adapt and expand, taking recommended that the NIH budget should be HON. MARTIN T. MEEHAN over the Navy shipyard and station and invest- increased by 15% per year which would dou- OF MASSACHUSETTS ing heavily in new docks, cranes, railyards and ble the budget in five years. These scientists IN THE HOUSE OF REPRESENTATIVES other infrastructure. placed their reputations on the line, and I be- Throughout this period of enormous growth, lieve we can rely on them. These scientists Wednesday, May 2, 2001 Linda Johnson served as the strong right arm were also part of a small group who helped us Mr. MEEHAN. Mr. Speaker, I am humbled of the port director, managing the endless flow organize and conduct the Biomedical Re- today to honor an inspiring American. Edward of correspondence, reports, meetings, tele- search Caucus. J. Santos, a native of Lowell, Massachusetts phone calls and everything else that goes with The attempt to double NIH funding actually will be honored Sunday, May 6, 2001, at a a thriving business that must operate under began in 1997, with the initiative of Senators Memorial Dedication, in his hometown at great pressure to meet the demands of global ARLEN SPECTER and TOM HARKIN along with Hosford Square. trade. Her quiet efficiency made her a vital Representative JOHN PORTER. We in the Cau- Edward Santos was a true American hero. partner in the port’s management and her un- cus have continued to support these efforts He served his nation and cared for his loved failing courtesy to coworkers and visitors since that time. ones as a war veteran, dedicated public serv- made her a friend to one and all. I believe that the clear and compelling re- ant, an active member of his community and When Linda started at the port in 1965, she marks presented to the Congressional Bio- family patriarch. planned to work for a year and then go on to medical Research Caucus by Dr. Singer and As a Sergeant in the United States Army, college. Instead, she ended up staying for a Dr. Kirschner will be helpful in our delibera- Ed served from July 7, 1942, to December 2, long, distinguished and rewarding career that tions concerning this year’s budget priorities.

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TRANSCRIPT OF REMARKS BY MARC KIRSCH- diagnosed much earlier by MRI. Also, if it The hot button issue is around stem cells NER, PH.D., BEFORE THE CONGRESSIONAL takes seventy years to appear—all we have derived from discarded human eggs or from BIOMEDICAL RESEARCH CAUCUS, FEBRUARY to do is slow it down to 50% so the age of human fetuses. For some people this is an 28, 2001 onset is 140. There are not many things ethical issue and if they truly understand Thank you for coming today. It is my hope where a two-fold change is a complete cure. the issues and still feel opposed we have to and Dr. Singer’s hope that all of you can be- Well, I know that this is a Congress where respect that, but not necessarily accept their come as knowledgeable as possible about the usual situation is to bring you problems judgment. The desire to work with embry- medicine and science at the beginning of the that no one can solve. You have to work on onic stem cells is that they, in principle, can 21st century. Science affects us in the those, too. But medical science is something regenerate all tissues and we can learn from present and in the future—our personal lives, that you can work on and have a big effect. them how to develop applications that may our economic well-being and even our na- You have an opportunity today that is more in the future allow us to use other sources of tional defense against some fiendish new en- significant in many ways, but akin to the Ei- material. From the study of human stem cell emies. Medical issues often lurk beneath the senhower Interstate Highway Program of the biology could come treatments for Parkin- surface and then explode like the AIDS epi- 1950s. Like that program, the country can son’s disease and for type I diabetes. The demic, mad cow disease or hoof-and-mouth survive without it. But like that program, hope for lifting these terrible burdens on our disease in Europe; new issues reach promi- the effects are likely to be profound, with loved ones has to be weighed against the eth- nence in the news and confuse many of the many long-term and unintended benefits. ical objections of some. The decision is not public like genetic engineering of crops and Whatever the state of the finances, today, simple but at least we can try to understand stem cell biology. The chronic issues of can- the circumstances of science tells us that the issues in concrete terms. cer and heart disease and depression also re- this is the time to invest. The progress in ANIMAL EXPERIMENTATION mind us of our need for a better defense biomedical science will affect every person Today we are learning more and more from against disease. Planning in science often equally in this country and on our planet (if fruit flies, worms and cultures cells—even seems intuitively clear to scientists, and yet we take care to distribute its largesse fair- from computers without doing a wet experi- even for us the path is very convoluted. In ly). But it will take a long-term infusion of ment but none of this will benefit human my own experience, many years ago we dis- funds. The plans to double the NIH budget beings without animal experiments, mostly covered one of the major proteins that goes will have to be followed by a long-term plan in rodents, less often in primates. The vast awry in Alzheimer’s disease—but we weren’t of increased funding that will allow us to re- majority of these experiments cause no dis- working on Alzheimer’s disease at the time; alize the value of investment that you have comfort, but some do. It is hard to study re- we were working on cell division and cancer. already paid for and which will allow divi- generation from stroke without inflicting So I can understand that it is often difficult dends to be paid to all of our children, and damage and yet most of us who have seen to understand what to do and what priorities their children. I know a long-term view is the devastating effect of stroke on our loved to set. Science is complex. Every time I try difficult for a Congress that is elected every ones are willing to sacrifice animals. Sci- to explain what I do to my wife and my two years and has annual budgets. We all re- entists will do everything to avoid the cost, mother, I have to start all over each time. alize that things may intervene. But difficulty and discomfort of animal experi- But there is hope. My kids seem to under- progress is best achieved with a long-term mentation. But we all have to accept the stand much better. Yet despite these difficul- budgetary plan. Now, let me return to edu- fact that our ability to contribute to bio- ties, progress in medicine is astonishing and cation, starting with some of today’s impor- medical science will be in proportion to the it is very clear to all of us that our expecta- tant buzzwords. amount of animal use. Anyone who thinks tions for tomorrow should be considerable. otherwise is not realistic. They may wish it THE GENOME I will try to briefly review where we are were not otherwise—I may wish it were oth- and what we need and what you can do to What did we learn from the genome—not erwise—but the simple fact is that we will help. Scientists in general have faith in ra- much—yet. What we will learn is unimagi- not benefit from our discoveries, we will not tionality. We feel that if you understand the nable. Genomics is the most revolutionary cure cancer or heart disease, or manic de- issues—the problems, the accomplishments, technology in biology today. It will produce pression, by making animal experimentation the needs and the true state-of-affairs in hundreds of new targets for intervention in too difficult or too expensive. science that you and the American people disease, new understanding of disease itself, What are the big targets for the NIH? Here will make the right decisions. It is for that new methods for diagnosis, and also in a very are seven examples of them: reason that the goal of the Caucus has al- profound way a new appreciation of life. It is 1. Using the genome to find targets to at- ways been education. From that policies not and should not be the beginning of tack diseases like cancer. should naturally flow. human engineering. We study biology to ap- 2. Immunology everything from type I dia- betes to autoimmune diseases to cancer ther- WHERE ARE WE? preciate life, to preserve it and to value it. Despite all the hype about gene technology, apy to allergy. February 12 was the announcement of the 3. Regeneration—finding the signals to human genome sequence by an international scientists are happy working around the margin to protect what we have, not to re- stimulate our bodies to repair itself—I in- consortium led by the United States and by clude stem cell biology here. private efforts built heavily on exploiting structure it. Also, about the 30,000 genes, most of which are the same in frogs—that is 4. Mental illness, mental retardation as or- the openness and accessibility of that public ganic diseases, and how to treat them much investment. We now have a list of parts. not the main point of the genome. The ge- nome contains the instructions on how to more specifically. Some people think that 30,000 is a small 5. Obesity and type II diabetes—going be- put these genes together, how much to number, but this is completely misleading. yond failed attempts at self-discipline. We are really a gigantic Lego set with 30,000 make, when to make things, and where to 6. Alzheimer’s disease and aging—finding different pieces, but the number of pieces is make things. With enough diligence we even- not a cure but a way to slow things down. a million, billion, billion—so we are pretty tually might have found most of the 30,000 7. Infectious diseases—here the genomes of complicated—and the design of even the sim- genes by other means; only the genome se- all the pathogens have increased our targets plest organism is beyond our present under- quence tells us about the instructions. by 100-fold but we must always be diligent. standing. We know some of our problems lie CLONING This is just a sampling. in faulty pieces—cystic fibrosis, sickle cell Cloning is the most common word in a bio- HOW MUCH SHOULD MEDICAL RESEARCH COST? anemia, muscular dystrophy. Perhaps there medical scientist’s vocabulary and the most We should pay no more money than can be are simple signals for adult onset diabetes misunderstood by the average citizen. In sci- used wisely. The NIH is not perfect; you need and schizophrenia, but they are not likely to entific discourse it never means cloning peo- to keep our oversight of NIH intramural and be single faulty pieces, maybe instead two or ple. Usually it means isolating pieces of DNA extramural spending. But this does not mean more pieces when they come together rein- for study. Sometimes it means isolating a a failed experiment is wasted money. The force their weaknesses—we hope to learn line of cells that are genetically identical biggest failure is not doing an experiment that soon. Some are diseases of systems, from animals, human beings, or often tu- that could make a difference. The biggest such as rheumatoid arthritis and cancer. mors. Sometimes it means making geneti- enemy in science is timidity, not over- Some are foreign enemies—viruses and bac- cally identical animals which will serve as a spending. teria—AIDS and tuberculosis. Some things model for disease. None of these uses raises We should spend as much as we can to may be easy to figure out, some will turn out ethical problems. speed up the application of science to health. much harder than we think. Yet to work on application before we under- STEM CELLS A few years ago, Alzheimer’s disease stand the processes can be very inefficient. seemed hopeless. There were no animal mod- Stem cells are the great promise of regen- Would we be better off today if we had els. There was no convincing epidemiology— eration. Most stem cell biology carries with spent our money on better iron lungs, rather no smoking gun as we had in polio. It was a it no ethical problems. There are skin stem than on a vaccine against the polio virus? spordiac disease of late and variable onset. cells, bone marrow stem cells, stem cells for Is this science cost-effective? Maybe this is Today we have an exquisite idea of the cause muscle. But we don’t really have what we not the right question, but we can try to an- and we have many promising targeted phar- need—we need brain stem cells for spinal swer it anyways. maceutical interventions. cord and brain injury; we can’t get heart If we are truly successful, things should be In some ways it now seems like it could be muscle to regenerate—we cannot get kidneys cost-effective. It took years to make a a relatively easy disease to treat. It can be to regenerate as we can liver. Hemophilus influenza type-B vaccine—but

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00014 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.052 pfrm04 PsN: E02PT1 May 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E709 this major cause of meningitis, with its con- Pardon me for my pitch for joining the One last thing, together we have built the comitant death and hearing loss in young Caucus. I do appreciate the support of Rep- greatest scientific establishment in the people is now completely preventable. resentative Gekas and all the members of world. Today, as I travel the country, I find Surgery for gastric ulcers was an expensive the Caucus for being passionate advocates first-class research done all over. Important and risky business. Today we control the dis- over the past years and for serving to edu- discoveries are coming from laboratories in ease with a cheap antibiotic. Yes, there were cate the Members and their staff. I am not major costs in the discoveries, but the sav- all of our states. Mao Tse-Tung said ‘‘let a sure it gained them votes—but it was the ings accrue forever. If one takes a long-term thousand flowers bloom’’—ignoring his poli- right thing to do. It has meant a lot to sci- view, all of this should make sense finan- tics for a moment we would have to say that cially. entists, particularly the young scientists it was a good slogan for science. There is no who have come here from all over the U.S. Four years ago before budget surpluses— guaranteed path to discovery—but the oppor- They recognize the deep and thoughtful sup- the long view was developed with strong bi- tunity to take chances—the path to dis- port that you have given. That means a lot. partisan support—in Congress, to double the covery that you have supported—is the best NIH budget. The expectations of science are We all realize that you deliberate over many strategy to guarantee that we employ every even higher today than there were four years problems—it is just that much more reas- tool and use all our ingenuity to improve the ago. I hope you can complete that effort and suring that you have taken the time to un- after that, renew the investment. derstand these complex issues. health of the world.

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00015 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.055 pfrm04 PsN: E02PT1 E710 CONGRESSIONAL RECORD — Extensions of Remarks May 2, 2001 SENATE COMMITTEE MEETINGS of the International Monetary Fund Health, Education, Labor, and Pensions Title IV of Senate Resolution 4, and World Bank. To hold hearings to examine certain SD–419 issues involving medical innovation. agreed to by the Senate on February 4, 1:30 p.m. SD–430 1977, calls for establishment of a sys- Appropriations 10 a.m. tem for a computerized schedule of all Commerce, Justice, State, and the Judici- Appropriations meetings and hearings of Senate com- ary Subcommittee Agriculture, Rural Development, and Re- mittees, subcommittees, joint commit- To continue hearings to examine United lated Agencies Subcommittee tees, and committees of conference. States Federal Government capabili- To hold hearings on proposed budget es- This title requires all such committees ties with respect to terrorism. timates for fiscal year 2002 for the Food to notify the Office of the Senate Daily SH–216 and Drug Administration, Department Digest—designated by the Rules com- 2:30 p.m. of Health and Human Services. mittee—of the time, place, and purpose Energy and Natural Resources SD–138 of the meetings, when scheduled, and To hold hearings on the President’s pro- Appropriations any cancellations or changes in the posed budget request for fiscal year Energy and Water Development Sub- meetings as they occur. 2002 for the Forest Service, Department committee As an additional procedure along of Agriculture. To hold hearings on proposed budget es- with the computerization of this infor- SD–366 timates for fiscal year 2002 for Depart- ment of Energy environmental man- mation, the Office of the Senate Daily MAY 9 agement and the Office of Civilian Digest will prepare this information for Radio Active Waste Management. printing in the Extensions of Remarks 9:30 a.m. Appropriations SD–608 section of the CONGRESSIONAL RECORD Commerce, Justice, State, and the Judici- Commerce, Science, and Transportation on Monday and Wednesday of each ary Subcommittee Aviation Subcommittee week. To continue hearings to examine United To hold hearings to examine government Meetings scheduled for Thursday, States Federal Government capabili- and industry wide efforts to address air May 3, 2001 may be found in the Daily ties with respect to terrorism. traffic control delays. Digest of today’s RECORD. SH–216 SR–253 1:30 p.m. MEETINGS SCHEDULED Environment and Public Works Fisheries, Wildlife, and Water Sub- Appropriations committee Commerce, Justice, State, and the Judici- MAY 8 To hold hearings to examine the listing ary Subcommittee 9:30 a.m. and de-listing processes of the Endan- To continue hearings, in closed session, Health, Education, Labor, and Pensions gered Species Act. to examine United States Federal Gov- To hold hearings to examine opportuni- SD–628 ernment capabilities with respect to ties and assessments for better phar- Commerce, Science, and Transportation terrorism. maceuticals for children. Surface Transportation and Merchant Ma- SH–219 SD–430 rine Subcommittee 2:30 p.m. Banking, Housing, and Urban Affairs To hold hearings to examine the state of Energy and Natural Resources Housing and Transportation Subcommittee the Rail Industry, including it’s cur- National Parks, Historic Preservation, and To hold oversight hearings to examine rent financial condition, infrastructure Recreation Subcommittee the mission of the Office of Federal capacity, and long term capital funding To hold oversight hearings on the De- Housing Enterprise Oversight, and the partment of the Interior’s proposed financial safety and soundness of needs. SR–253 budget request for the National Park Fannie Mae and Freddie Mac. Service. SD–538 10 a.m. Appropriations SD–366 Environment and Public Works 4:45 p.m. Clean Air, Wetlands, Private Property, and VA, HUD, and Independent Agencies Sub- Appropriations Nuclear Safety Subcommittee committee Commerce, Justice, State, and the Judici- To hold an oversight hearing on the ac- To hold hearings on proposed budget es- ary Subcommittee tivities of the Nuclear Regulatory timates for fiscal year 2002 for the Na- To continue hearings to examine United Commission. tional Aeronautics and Space Adminis- SD–628 tration. States Federal Government capabili- Energy and Natural Resources SD–138 ties with respect to terrorism. To hold hearings on the President’s pro- Governmental Affairs SH–216 posed budget request for fiscal year To hold oversight hearings to examine MAY 15 2002 for the Department of the Interior. federal election practices and proce- SD–366 dures. 10 a.m. Appropriations SD–342 Judiciary Commerce, Justice, State, and the Judici- Judiciary To hold hearings to examine high tech- ary Subcommittee To hold hearings on pending Department nology patents, relating to business To hold hearings to examine United of Justice nominations. methods and the internet. States Federal Government capabili- SD–226 SD–226 ties with respect to terrorism. 1:30 p.m. Governmental Affairs SH–216 Appropriations To hold hearings to examine the finan- Commerce, Science, and Transportation Commerce, Justice, State, and the Judici- cial outlook of the United States post- To hold hearings to examine election re- ary Subcommittee al service. form issues, focusing on the reliability To continue hearings to examine United SD–342 of current and future voting tech- States Federal Government capabili- nologies. ties with respect to terrorism. MAY 16 SR–253 SH–216 10 a.m. 10 a.m. Appropriations Judiciary MAY 10 VA, HUD, and Independent Agencies Sub- To hold hearings to examine high tech- nology patents, relating to genetics 9:30 a.m. committee and biotechnology. Energy and Natural Resources To hold hearings on proposed budget es- SD–226 To hold hearings on the President’s pro- timates for fiscal year 2002 for the Fed- Appropriations posed budget request for fiscal year eral Emergency Management Agency. Interior Subcommittee 2002 for the Department of Energy. SD–138 To hold hearings on proposed budget es- SD–366 timates for fiscal year 2002 for the De- Appropriations MAY 17 partment of Energy. Commerce, Justice, State, and the Judici- 9:30 a.m. SD–124 ary Subcommittee Health, Education, Labor, and Pensions 10:30 a.m. To continue hearings to examine United To hold hearings to examine certain Foreign Relations States Federal Government capabili- issues surrounding the nursing staffing To hold hearings to examine the admin- ties with respect to terrorism. shortage. istration policy and reform priorities SH–216 SD–430

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00016 Fmt 0626 Sfmt 0634 E:\CR\FM\A02MY8.056 pfrm04 PsN: E02PT1 May 2, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E711 MAY 22 tional Science Foundation and the Of- which poses a threat to all American 9:30 a.m. fice of Science Technology Policy. consumers but disproportionately af- Health, Education, Labor, and Pensions SD–138 fects the elderly. The focus will be on To hold hearings to examine certain the state of binational U.S.-Canadian JUNE 13 issues surrounding retiree health insur- law enforcement coordination and co- ance. 10 a.m. operation and will explore what steps SD–430 Appropriations can be taken to fight such crime in the VA, HUD, and Independent Agencies Sub- future. MAY 23 committee SD–342 To hold hearings on proposed budget es- Governmental Affairs 9:30 a.m. timates for fiscal year 2002 for the En- Investigations Subcommittee Health, Education, Labor, and Pensions vironmental Protection Agency and To continue hearings to examine the na- Public Health Subcommittee the Council of Environmental Quality. ture and scope of cross border fraud, fo- To hold hearings to examine issues sur- SD–138 cusing on the state of binational U.S.- rounding human subject protection. Canadian law enforcement coordina- SD–430 JUNE 14 tion and cooperation and what steps 9:30 a.m. can be taken to fight such crime in the MAY 24 Governmental Affairs future. Investigations Subcommittee 9:30 a.m. SD–342 Health, Education, Labor, and Pensions To hold hearings to examine the nature and scope of cross border fraud, focus- To hold hearings to examine issues sur- JUNE 20 rounding patient safety. ing on the state of binational U.S.-Ca- nadian law enforcement coordination 10 a.m. SD–430 and cooperation and what steps can be Appropriations taken to fight such crime in the future. JUNE 6 VA, HUD, and Independent Agencies Sub- SD–342 committee 10 a.m. To hold hearings on proposed budget es- Appropriations JUNE 15 timates for fiscal year 2002 for the De- VA, HUD, and Independent Agencies Sub- 9:30 a.m. partment of Housing and Urban Devel- committee Governmental Affairs opment. To hold hearings on proposed budget es- Investigations Subcommittee SD–138 timates for fiscal year 2002 for the Na- To continue hearings to examine the growing problem of cross border fraud,

VerDate 112000 03:36 May 03, 2001 Jkt 089060 PO 00000 Frm 00017 Fmt 0626 Sfmt 0634 E:\CR\FM\M02MY8.000 pfrm04 PsN: E02PT1 Wednesday, May 2, 2001 Daily Digest

HIGHLIGHTS House Committee ordered reported the Foreign Relations Authorization Act, Fiscal Years 2002 and 2003. Senate Chamber Action Statements on Introduced Bills: Pages S4177–83 Additional Cosponsors: Pages S4175–77 Routine Proceedings, pages S4125–S4185 Amendments Submitted: Page S4184 Measures Introduced: Five bills and two resolu- tions were introduced, as follows: S. 814–818, S. Additional Statements: Pages S4168–71 Res. 80, and S. Con. Res. 35. Page S4175 Notices of Hearings: Page S4184 Elementary and Secondary Education Act Au- Authority for Committees: Page S4184 thorization: Senate agreed to the motion to proceed to consideration of S. 1, to extend programs and ac- Privileges of the Floor: Page S4185 tivities under the Elementary and Secondary Edu- Adjournment: Senate met at 9:30 a.m., and ad- cation Act of 1965, and then began consideration of journed at 6:31 p.m., until 9:30 a.m., on Thursday, the bill. Pages S4125–35, S4138–58, S4161–67 May 3, 2001. (For Senate’s program, see the remarks A unanimous-consent agreement was reached pro- of the Acting Majority Leader in today’s Record on viding for further consideration of the bill and a cer- page S4185.) tain amendment to be proposed thereto, on Thurs- day, May 3, 2001. Page S4166 Messages From the President: Senate received the Committee Meetings following messages from the President of the United States: (Committees not listed did not meet) Transmitting, pursuant to law, a report con- cerning the District of Columbia Courts Fiscal Year APPROPRIATIONS—LABOR 2002 Budget Submission; to the Committee on Gov- Committee on Appropriations: Subcommittee on Labor, ernmental Affairs. (PM–16) Page S4171 Health and Human Services, and Education con- Transmitting, pursuant to law, the report on the cluded hearings on proposed budget estimates for National Emergency with Respect to Sudan; referred fiscal year 2002 for the Department of Labor, after jointly, pursuant to the order of January 30, 1975 receiving testimony from Elaine L. Chao, Secretary of as modified by the order of April 11, 1986; to the Labor. Committees on Appropriations; and Banking, Hous- ing, and Urban Affairs. (PM–17) Page S4171 APPROPRIATIONS—LEGISLATIVE BRANCH Nominations Received: Senate received the fol- Committee on Appropriations: Subcommittee on Legisla- lowing nominations: tive Branch concluded hearings on proposed budget Robert Gordon Card, of Colorado, to be Under estimates for fiscal year 2002, after receiving testi- Secretary of Energy. A routine list in the Air Force. mony in behalf of funds for their respective activities Page S4185 from Representative Saxton, Vice-Chairman, Joint Executive Communications: Page S4172 Economic Committee; Representative Thomas, Chairman, Joint Committee on Taxation; and James Petitions and Memorials: Pages S4172–75 H. Billington, Librarian of Congress, and Daniel P. Messages From the House: Page S4171 Mulhollan, Director, Congressional Research Service, Measures Referred: Pages S4171–72 both of the Library of Congress. D382

VerDate Aug 31 2005 09:21 May 11, 2006 Jkt 089102 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\PICKUP\D02MY1.REC D02MY1 erjones on PROD1PC71 with SENATE May 2, 2001 CONGRESSIONAL RECORD — DAILY DIGEST D383 APPROPRIATIONS—VETERANS AFFAIRS GLOBAL CLIMATE CHANGE Committee on Appropriations: Subcommittee on VA, Committee on Environment and Public Works: Com- HUD, and Independent Agencies concluded hearings mittee concluded hearings to examine the science of on proposed budget estimates for fiscal year 2002 for global climate change and issues related to the tim- the Department of Veterans Affairs, after receiving ing, options and obstacles of reducing net green- testimony from Anthony J. Principi, Secretary of house gas emissions, after receiving testimony from Veterans Affairs, who was accompanied by several of Kevin E. Trenberth, Head, Climate Analysis Section, his associates. National Center for Atmospheric Research, National INDIVIDUAL FISHING QUOTA Science Foundation; Marilyn A. Brown, Director, Energy Efficiency and Renewable Energy Program, Committee on Commerce, Science, and Transportation: Sub- Oak Ridge National Laboratory, and Jamee Ed- committee on Oceans and Fisheries concluded hear- monds, Senior Staff Scientist, Pacific Northwest Na- ings on S. 637, to amend the Magnuson-Stevens tional Laboratory, both of the Department of Energy; Fishery Conservation and Management Act to au- Richard S. Lindzen, Massachusetts Institute of Tech- thorize the establishment of individual fishery quota nology, Cambridge; John R. Christy, University of systems, after receiving testimony from Patten D. Alabama Earth System Science Center, Huntsville; White, Maine Lobstermen’s Association, Inc., York; Rattan Lal, Ohio State University Carbon Manage- Joseph T. Plesha, Trident Seafoods Corporation, and ment and Sequestration Program, Columbus; and Don Giles, Icicle Seafoods, Inc., both of Seattle, James E. Rogers, Cinergy Corporation, Cincinnati, Washington; Harlan Kay Williams, Gulf of Mexico Ohio. Fishery Management Council, Tampa, Florida; Linda Behnken, Alaska Longline Fishermen’s Association, NOMINATIONS Sitka; Lee R. Crockett, Marine Fish Conservation Committee on the Judiciary: Committee concluded Network, Washington, D.C.; Jon Sutinen, Univer- hearings on the nominations of Charles A. James, Jr. sity of Rhode Island Department of Environmental and Daniel J. Bryant, both of Virginia, each to be and Natural Resource Economics, Kingston; and Mi- an Assistant Attorney General, Department of Jus- chael K. Orbach, Duke University Nicholas School tice, after the nominees, who were introduced by of the Environment and Earth Sciences, Beaufort, Senators Warner, Allen, and Biden, and Representa- North Carolina. tives Hyde and Conyers, testified and answered ques- HUMAN CLONING tions in their own behalf. Committee on Commerce, Science, and Transportation: Sub- committee on Science, Technology, and Space held TELECOMMUNICATIONS ACT hearings to examine the scientific, ethical, moral, IMPLEMENTATION and social concerns of human cloning, including a Committee on the Judiciary: Subcommittee on Anti- proposal to prohibit the cloning of human embryos, trust, Business Rights, and Competition concluded receiving testimony from Representative Weldon; hearings on the state of local telephone competition Clarke D. Forsythe, Americans United for Life, and five years after the implementation of the 1996 Tele- Leon R. Kass, University of Chicago Committee on communications Act, and the potential need for ad- Social Thought, both of Chicago, Illinois; Rudolf ditional legislation to provide a different balance be- Jaenisch, Massachusetts Institute of Technology tween the incumbent and competitive providers of Whitehead Institute, Cambridge, on behalf of the local telephone service, after receiving testimony American Society For Cell Biology; and Margaret from Patrick Henry Wood III, Public Utility Com- Colin, Feminists for Life, William Kristol, The Bio- mission of Texas, Austin; Reed E. Hundt, McKinsey ethics Project, Robert A. Best, Culture of Life Foun- and Company, Inc., Washington, D.C.; David dation, Richard M. Doerflinger, National Conference Dorman, AT&T Corporation, Basking Ridge, New of Catholic Bishops Committee for Pro-Life Activi- Jersey; James O. Robbins, Cox Communications, ties, Carl B. Feldbaum, Biotechnology Industry Or- Inc., Atlanta, Georgia; Larissa Herda, Time Warner ganization, and Jaydee Hanson, United Methodist Telecom, Inc., Littleton, Colorado; and James D. Church, all of Washington, D.C. Ellis, SBC Telecommunications, Inc., San Antonio, Hearings recessed subject to call. Texas.

VerDate Aug 31 2005 09:21 May 11, 2006 Jkt 089102 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\PICKUP\D02MY1.REC D02MY1 erjones on PROD1PC71 with SENATE D384 CONGRESSIONAL RECORD — DAILY DIGEST May 2, 2001 House of Representatives Presidential Message: Read a message from the Chamber Action President wherein he transmitted the District of Co- Guest Chaplain: The prayer was offered by the lumbia Courts Budget Submission for fiscal year Guest Chaplain, Archbishop Michael J. Champion, 2002—referred to the Committee on Appropriations Coadjutor to the Primate and Archbishop of Cleve- and ordered printed (H. Doc. 107–63). Page H1827 land Ukrainian Autocephalous Orthodox Church in Quorum Calls—Votes: Four yea-and-nay votes and the United States. Page H1735 one recorded vote developed during the proceedings Journal: Agreed to the Speaker’s approval of the of the House today and appear on pages H1747, Journal of Tuesday, May 1 by a recorded vote of 377 H1747–48, H1822, H1826, and H1827. There were ayes to 47 noes with 1 voting ‘‘present’’, Roll No. no quorum calls. 93. Pages H1735, H1747–48 Recess: House recessed at 8:25 p.m. subject to the Recess: The House recessed at 9:07 a.m. and recon- call of the Chair. Page H1855 vened at 10:46 p.m. Pages H1735, H1744 Adjournment: The House met at 12:30 p.m. and The United States Association of Former Mem- recessed at 11:39 p.m.. bers of Congress: Agreed that the proceedings of the United States Association of Former Members of Committee Meetings Congress had during the recess be printed in the Congressional Record and that all Members and FEDERAL FARM COMMODITY PROGRAMS former Members who spoke during the recess have Committee on Agriculture: Continued hearings on Fed- the privilege of revising and extending their re- eral Farm Commodity Programs, with the fruit, veg- marks. Page H1744 etable, and honey industries. Testimony was heard Comprehensive Retirement Security and Pension from L. John Milam, Chairman, Sioux Honey Asso- ciation; and Tom Stenzel, President and CEO, Reform: The House passed H.R. 10, to provide for United Fresh Fruit and Vegetable Association. pension reform by a yea-and-nay vote of 407 yeas to Hearings continue tomorrow. 24 nays, Roll No. 96. Pages H1748–H1827 Rejected the Sanders motion to recommit the bill ENERGY SUPPLY AFFECTING to the Committees on Education and the Workforce AGRICULTURAL SECTOR and Ways and Means with instructions to report it Committee on Agriculture: Subcommittee on Conserva- back with an amendment that sought to allow em- tion, Credit, Rural Development and Research held ployees to choose between defined benefit and cash a hearing to review energy supply and demand issues balance pension plans by a yea-and-nay vote of 153 affecting the agricultural sector of the U.S. economy. yeas to 276 nays, Roll No. 95. Pages H1822–26 Testimony was heard from Keith Collins, Chief Pursuant to the rule the Thomas amendment in Economist, USDA; Mark Rodekohr, Director, En- the nature of a substitute numbered 1 and printed ergy Markets and Contingency Information Division, in the Congressional Record of May 1 was consid- Office of Energy Markets and End Use, Energy In- ered as adopted. Page H1764 formation Administration, Department of Energy; Rejected the Neal amendment in the nature of a and public witnesses. substitute that sought to provide refundable tax AGRICULTURE, RURAL DEVELOPMENT credits to low and middle-income workers and make AND FDA APPROPRIATIONS small employers eligible for certain tax credits by a yea-and-nay vote of 207 yeas to 223 nays, Roll No. Committee on Appropriations: Subcommittee on Agri- 94. Pages H1795–H1822 culture, Rural Development, Food and Drug Admin- H. Res. 127, the rule that provided for consider- istration and Related Agencies held a hearing on the ation of the bill was agreed to by a yea-and-nay vote Food and Nutrition Service. Testimony was heard from George Braley, Acting Administrator, Food and of 404 yeas to 24 nays, Roll No. 92. Pages H1745–47 Nutrition Service, USDA. Committee Election: The House agreed to H. Res. 129 electing Representative George Miller of Cali- COMMERCE, JUSTICE, STATE AND fornia to the Committee on Resources and Rep- JUDICIARY APPROPRIATIONS resentative Honda of California to the Committee on Committee on Appropriations: Subcommittee on Com- Science. Page H1827 merce, Justice, State and Judiciary held a hearing on

VerDate Aug 31 2005 09:21 May 11, 2006 Jkt 089102 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\PICKUP\D02MY1.REC D02MY1 erjones on PROD1PC71 with SENATE May 2, 2001 CONGRESSIONAL RECORD — DAILY DIGEST D385 the Attorney General. Testimony was heard from hearing on a proposal to permit certain entities to John D. Ashcroft, Attorney General. offer real estate brokerage and real estate manage- ENERGY AND WATER DEVELOPMENT ment services. Testimony was heard from Laurence J. APPROPRIATIONS Meyer, member, Board of Governors, Federal Reserve System; Donald J. Hammond, Acting Under Sec- Committee on Appropriations: Subcommittee on Energy retary, Domestic Finance, Department of the Treas- and Water Development held a hearing on the Sec- ury; and public witnesses. retary of Energy. Testimony was heard from Spencer Abrahams, Secretary of Energy. EXPORT-IMPORT BANK REAUTHORIZATION INTERIOR APPROPRIATIONS Committee on Financial Services: Subcommittee on Committee on Appropriations: Subcommittee on Interior International Monetary Policy and Trade held a hear- continued appropriations hearings. Testimony was ing on reauthorization of the Export-Import Bank. heard from Members of Congress. Testimony was heard from the following officials of LABOR—HHS—EDUCATION the Export-Import Bank: James Hess, Chief Finan- APPROPRIATIONS cial Officer; William Redway, Group Vice President, Committee on Appropriations: Subcommittee on Labor, Small and New Business; and Bert Ubamadu, Office Health and Human Services and Education held a of the General Counsel; and public witnesses. hearing on the Secretary of Health and Human Serv- FOREIGN RELATIONS AUTHORIZATION ices. Testimony was heard from Tommy G. Thomp- ACT son, Secretary of Health and Human Services. Committee on International Relations: Ordered reported, TRANSPORTATION APPROPRIATIONS as amended, H.R. 1646, Foreign Relations Author- Committee on Appropriations: Subcommittee on Trans- ization Act, Fiscal Years 2002 and 2003. portation held a hearing on the U.S. Coast Guard. OVERSIGHT—COPYRIGHT OFFICE Testimony was heard from Adm. James M. Loy, Committee on the Judiciary: Subcommittee on Courts, USCG, Commandant, U.S. Coast Guard, Depart- the Internet, and Intellectual Property held an over- ment of Transportation. sight hearing on the U.S. Copyright Office. Testi- TREASURY, POSTAL SERVICES AND mony was heard from Marybeth Peters, Register of GENERAL GOVERNMENT APPROPRIATIONS Copyrights, Office of the United States, Library of Committee on Appropriations: Subcommittee on Treas- Congress. ury, Postal Service and General Government held a IMPROVING MATH AND SCIENCE hearing on the Secret Service. Testimony was heard EDUCATION from Brian Stafford, Director, U.S. Secret Service, Department of the Treasury. Committee on Science: Subcommittee on Research held a hearing on Improving Math and Science Education VA, HUD APPROPRIATIONS so that No Child is Left Behind. Testimony was Committee on Appropriations: Subcommittee on VA, heard from public witnesses. HUD and Independent Agencies held a hearing on NASA POSTURE the Council on Environmental Quality, and the Court of Appeals for Veterans Claims. Testimony Committee on Science: Subcommittee on Space and Aer- was heard from Dinah Bear, General Counsel, Coun- onautics held a hearing on NASA Posture. Testi- cil on Environmental Quality, Office of Environ- mony was heard from Daniel S. Goldin, Adminis- mental Quality; the following officials of the Court trator, NASA. of Appeals for Veterans Claims: Judge Kenneth Kra- PENTAGON PROCUREMENT POLICIES— mer, Chief Justice; and David Isbell, Pro Bono Pro- ARMY BERETS gram. Committee on Small Business: Held a hearing on the NO CHILD LEFT BEHIND ACT short-term and long-term implications of the pro- Committee on Education and the Workforce: Began mark- curement policies of the Pentagon that favored up of H.R. 1, No Child Left Behind Act of 2001. China, and other foreign countries, as the suppliers Will continue tomorrow. of berets for the Army rather than this Nation’s small business. Testimony was heard from Rep- BANKS—REAL ESTATE SERVICES resentatives Capps and Jones of North Carolina; the Committee on Financial Services: Subcommittee on Fi- following officials of the Department of Defense: nancial Institutions and Consumer Credit held a Gen. Eric K. Shinseki, USA, Chief of Staff, U.S.

VerDate Aug 31 2005 09:21 May 11, 2006 Jkt 089102 PO 00000 Frm 00004 Fmt 0627 Sfmt 0627 E:\PICKUP\D02MY1.REC D02MY1 erjones on PROD1PC71 with SENATE D386 CONGRESSIONAL RECORD — DAILY DIGEST May 2, 2001 Army; Lt. Gen. Henry T. Gisson, USA, Director, Committee on Appropriations: Subcommittee on Labor, Defense Logistics Agency, and David R. Oliver, Act- Health and Human Services, and Education, to hold hear- ing Under Secretary, Acquisition, Technology, and ings to examine the employment needs of Amish youth, Logistics; David Cooper, Director, Acquisition and 9:30 a.m., SH–216. Sourcing Management, GAO; John D. Whitmore, Subcommittee on Treasury and General Government, to hold hearings on proposed budget estimate for fiscal Jr., Acting Administrator, SBA; and public wit- year 2002 for the Office of National Drug Control Policy, nesses. 9:30 a.m., SR–485. CORPS OF ENGINEERS’ BUDGET; EPA’S Subcommittee on Agriculture, Rural Development, and BUDGET Related Agencies, to hold hearings on proposed budget estimates for fiscal year 2002 for the Department of Agri- Committee on Transportation and Infrastructure, Sub- culture, focusing on assistance to producers and the farm committee on Water Resources and Environment economy, 10 a.m., SD–138. held a hearing on the following: Army Corps of En- Subcommittee on Commerce, Justice, State, and the gineers’ budget and priorities for fiscal year 2001; Judiciary, to hold hearings on proposed budget estimates and on EPA’s Budget and Priorities for fiscal year for fiscal year 2002 for the Department of State, 10 a.m., 2002. Testimony was heard from the following offi- SD–192. cials of the Department of the Army: Claudia Subcommittee on Energy and Water Development, Tornblom, Deputy Assistant Secretary (Management with the Committee on Energy and Natural Resources, to and Budget), Office of the Assistant Secretary (Civil hold joint oversight hearings on the state of the nuclear Works); and Lt. Gen. Robert B. Flowers, Chief of power industry and the future of the industry in a com- prehensive energy strategy, 10 a.m., SD–366. Engineers, Corps of Engineers; and Christine Todd Committee on Armed Services: to hold hearings to examine Whitman, Administrator, EPA. the lessons learned from the attack on U.S.S. Cole, on the BRIEFING—NATO INTELLIGENCE SHARING report of the Crouch/Gehman Commission and on the Navy’s Judge Advocate General Manual Investigation into Permanent Select Committee on Intelligence: Sub- the attack, including a review of appropriate standards of committee on International Policy and National Se- accountability for United States military services, to be curity met in executive session to receive a briefing followed by closed hearings (in Room SR–222), 9:30 on NATO Intelligence Sharing. The Committee was a.m., SD–106. briefed by departmental witnesses. Committee on Commerce, Science, and Transportation: busi- ness meeting to mark up S. 127, to give American com- Joint Meetings panies, American workers, and American ports the oppor- tunity to compete in the United States cruise market; S. UKRAINE DEMOCRACY 718, to direct the National Institute of Standards and Commission on Security and Cooperation in Europe (Hel- Technology to establish a program to support research sinki Commission): Commission concluded hearings to and training in methods of detecting the use of perform- examine the current status of human rights and de- ance-enhancing drugs by athletes; H.R. 1098, to improve the recording and discharging of maritime liens and ex- mocracy in Ukraine and the role of the United States pand the American Merchant Marine Memorial Wall of in assisting Ukraine’s development as an inde- Honor; the nomination of Michael P. Jackson, of Vir- pendent, market-oriented democracy in the face of ginia, to be Deputy Secretary of Transportation; the nom- the current political crisis, after receiving testimony ination of Brenda L. Becker, of Virginia, to be an Assist- from Jon Purnell, Deputy to the Acting Special Ad- ant Secretary of Commerce; the nomination of Theodore visor to the Secretary of State for the New Inde- William Kassinger, of Maryland, to be General Counsel pendent States; Yevhen Marchuk, Ukraine National of the Department of Commerce; and nominations for Security and Defense Council, Kiev, former Prime promotion in the United States Coast Guard, 9:30 a.m., Minister of Ukraine; Adrian Karatnyky, Freedom SR–253. House, New York, New York; and Ariel Cohen, Committee on Energy and Natural Resources: with the Heritage Foundation, Washington, D.C. Committee on Appropriations, Subcommittee on Energy and Water Development, to hold joint oversight hearings f on the state of the nuclear power industry and the future COMMITTEE MEETINGS FOR THURSDAY, of the industry in a comprehensive energy strategy, 10 a.m., SD–366. MAY 3, 2001 Full Committee, to hold oversight hearings to review (Committee meetings are open unless otherwise indicated) the Federal Energy Regulatory Commission’s order ad- dressing wholesale electricity prices in California and the Senate Western United States, 2:30 p.m., SD–366. Special Committee on Aging: to hold hearings to examine Committee on Governmental Affairs: to hold oversight new prescribing technologies for prescription drugs, 2:30 hearings to examine federal election practices and proce- p.m., SD–608. dures, 10 a.m., SD–342.

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Committee on the Judiciary: business meeting to consider Committee on Armed Services, Subcommittee on Military the nomination of Larry D. Thompson, of Georgia, to be Installations and Facilities, hearing on the implementa- Deputy Attorney General, the nomination of Theodore tion of the Military Housing Privatization Initiative, 10 Bevry Olson, of the District of Columbia, to be Solicitor a.m., 2212 Rayburn. General of the United States, the nomination of Charles Committee on Education and the Workforce, to continue A. James, Jr., of Virginia, to be an Assistant Attorney markup of H.R. 1, No Child Left Behind Act of 2001, General, and the nomination of Daniel J. Bryant, of Vir- 9:30 a.m., 2175 Rayburn. ginia, to be an Assistant Attorney General, all of the De- Committee on Energy and Commerce, Subcommittee on En- partment of Justice; S. 487, to amend chapter 1 of title ergy and Air Quality, to continue hearings on H.R. 17, United States Code, relating to the exemption of cer- 1647, Electricity Emergency Relief Act, 10 a.m., 2123 tain performances or displays for educational uses from Rayburn. copyright infringement provisions, to provide that the Subcommittee on Health, hearing entitled ‘‘Evaluating making of a single copy of such performances or displays the Effectiveness of the Food and Drug Administration is not an infringement; S. 166, to limit access to body Modernization Act,’’ 10 a.m., 2322 Rayburn. armor by violent felons and to facilitate the donation of Committee on Financial Services, Subcommittee on Hous- Federal surplus body armor to State and local law enforce- ing and Community Opportunity, hearing on housing af- ment agencies; and S. Res. 63, commemorating and ac- fordability issues, 9:30 a.m., 2128 Rayburn. knowledging the dedication and sacrifice made by the Committee on Government Reform, hearing on ‘‘The FBI’s men and women who have lost their lives while serving Controversial Handling of Organized Crime Investiga- as law enforcement officers, 10 a.m., SD–226. tions in Boston: The Case of Joseph Salvati,’’ 10 a.m., Subcommittee on Immigration, to hold hearings to ex- 2154 Rayburn. amine certain aspects of United States immigration pol- Committee on the Judiciary, Subcommittee on Crime, icy, focusing on asylum issues, 2 p.m., SD–226. oversight hearing on the ‘‘Reauthorization of the United States Department of Justice Part 1–Criminal Law En- House forcement Agencies,’’ 10 a.m., 2141 Rayburn. Committee on Resources, Subcommittee on Energy and Committee on Agriculture, to continue hearings on Fed- Mineral Resources, oversight hearing on Geothermal Re- eral Farm Commodity Programs, 9:30 a.m., 1300 Long- sources on Public Lands: The Resource Base and Con- worth. straints on Development, 10 a.m., 1334 Longworth. Committee on Appropriations, Subcommittee on Com- Subcommittee on Fisheries Conservation, Wildlife and merce, Justice, State and Judiciary, on the Secretary of Oceans, oversight hearing on the following: U.S. Fish and Commerce, 10 a.m., 210 Cannon. Wildlife Service; National Oceanic and Atmospheric Ad- Subcommittee on Energy and Water Development, ex- ministration; and on the National Marine Fisheries Serv- ecutive, on Atomic Energy Defense Activities, 10 a.m., ice budgets for fiscal year 2002, 9:30 a.m., 1324 Long- 2362–B Rayburn. worth. Subcommittee on Interior, on the Secretary of Energy, Committee on Science, Subcommittee on Energy, hearing 10 a.m., B–308 Rayburn. on Energy Realities: Rates of Consumption, Energy Re- Subcommittee on Labor, Health and Human Services serves, and Future Options, 10 a.m., 2318 Rayburn. and Education, on the Centers for Disease Control and Committee on Transportation and Infrastructure, Sub- Prevention, 10 a.m., 2358 Rayburn. committee on Coast Guard and Maritime Transportation, Subcommittee on Transportation, on Research and Spe- hearing on Coast Guard fiscal year 2002 budget request, cial Programs Administration, 10 a.m., and on Airline 10 a.m., 2167 Rayburn. Delays, 2 p.m., 2358 Rayburn. Committee on Ways and Means, Subcommittee on Select Subcommittee on Treasury, Postal Service and General Revenue Measures, hearing on Energy Tax, 10 a.m., 1100 Government, on the Secretary of Treasury, 10 a.m., and Longworth. on the Executive Office of the President, 2 p.m., 2220 Permanent Select Committee on Intelligence, Domestic Ter- Rayburn. rorism Working Group, executive, briefing on Subcommittee on VA, HUD, and Independent Agen- Counterterrorism: View From the Top, 2 p.m., H–405 cies, on NASA, 9:30 a.m., and 1:30 p.m., 2359 Rayburn. Capitol.

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Thursday, May 3 10 a.m., Thursday, May 3

Senate Chamber House Chamber Program for Thursday: Senate will continue consider- Program for Thursday: Consideration of H. Con. Res. ation of S. 1, Elementary and Secondary Education Act 83, Budget Resolution for fiscal year 2002 Conference Authorization. Also, Senate may begin consideration of Report (Subject to a Rule). the conference report to H. Con. Res. 83, Congressional Budget.

Extensions of Remarks, as inserted in this issue

HOUSE Horn, Stephen, Calif., E707 Miller, George, Calif., E695, E697 Hostettler, John N., Ind., E699 Mollohan, Alan B., W.Va., E697 Allen, Thomas H., Maine, E696 Johnson, Eddie Bernice, Tex., E700 Ortiz, Solomon P., Tex., E698 Cardin, Benjamin L., Md., E704 Johnson, Timothy V., Ill., E702 Pallone, Frank, Jr., N.J., E700 Chambliss, Saxby, Ga., E705 Kleczka, Gerald D., Wisc., E702 Rangel, Charles B., N.Y., E695 Clement, Bob, Tenn., E705 LaHood, Ray, Ill., E696 Roukema, Marge, N.J., E705 Condit, Gary A., Calif., E703 Lowey, Nita M., N.Y., E706 Sessions, Pete, Tex., E705 DeMint, Jim, S.C., E706 McCarthy, Karen, Mo., E706 Thomas, William M., Calif., E698 Duncan, John J., Jr., Tenn., E704 McIntyre, Mike, N.C., E696 Thompson, Mike, Calif., E695, E697 Frank, Barney, Mass., E702 Maloney, Carolyn B., N.Y., E698 Traficant, James A., Jr., Ohio, E700 Gekas, George W., Pa., E707 Meehan, Martin T., Mass., E707 Weiner, Anthony D., N.Y., E703 Hinojosa, Rube´n, Tex., E704 Meek, Carrie P., Fla., E696 Young, Don, Alaska, E703

(House proceedings for today will be continued in the next issue of the Record.)

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